Q2 Holdings (QTWO) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Q2 Holdings stock $56.06, price $73.92, that is 24.2% below the price, quality 71 out of 100. Rating: overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Q2 Holdings
QTWO · USOur calculation puts a fair price 24% below what the stock costs today.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 3, 2026.
How to read this chart
60‑month range $20.87 – $110.85 · fair‑value band $39.24 – $72.88 · the $73.92 price screens above the $56.06 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 3, 2026.
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Company profile
Q2 Holdings, Inc. provides digital solutions to financial institutions, financial technology companies, FinTechs, and alternative finance companies (Alt-FIs) in the United States.
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The company offers Digital Banking Platform, an end-to-end digital banking platform that supports its financial institution customers in their delivery of retail, SMB, and commercial functionalities across digital channels; and risk and fraud solutions that are designed to support financial institutions' efforts to protect end users, comply with regulatory requirements and manage fraud risk efficiently.
It also provides Q2 Innovation Studio, an application program interface and software development kit based open technology platform that allows financial institution customers, FinTechs, and other partners to deploy customized experiences and financial services to end users; and Helix, a cloud-native, real-time core processing platform that combines the services and functionality for companies and financial institutions.
In addition, the company offers digital lending and relationship pricing solutions that support financial institutions, FinTechs and Alt-FIs in managing lending workflows, pricing strategies and customer relationships across commercial and consumer use cases, as well as offers loans, deposits and fee-based products.
The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.
Stock analysis
Q2 Holdings (QTWO) currently trades at $73.92, while our model-based Fair Value estimate is $56.06, 24% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $52.26 per share, and 0 of the 24 models we run sit above the $73.92 price.
Bear case: the Economic Profit group reads lowest at $8.05, and 24 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $39.24 (bear) to $72.88 (bull), the price of $73.92 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 71/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Q2 Holdings reported revenue of $795M in FY2025 versus $499M in FY2021, a compound +12.4%/yr. Reported net income was $52.0M in FY2025.
Key figures
Market cap $4.9B Mid · P/E ratio 52.4 · P/S ratio 5.82 · EPS (TTM) $1.41 · Net margin 10.9% · Return on equity 15.0% · Return on assets (EBIT) −4.0% (5-year average) · Operating margin 13.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 2% below its 52-week high and 76% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at 10% fair-value upside, at −24%, QTWO screens richer than that median.
Fair Value models
All 24 models by family
Quality Score breakdown
It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.
Insider trades
In the last 6 months, 4 officers or directors sold shares worth $6.9M and none bought.
- SaleMichael S KerrGeneral Counsel5× since Mar 3, 2026: 24,186 shares, avg. $50.96$1.2MSep 11, 2026
- SaleJonathan PriceChief Financial Officer3× since Mar 3, 2026: 125,696 shares, avg. $59.66$7.5MAug 13, 2026
- SaleKimberly Anne RutledgeChief People Officer4× since Mar 3, 2026: 62,304 shares, avg. $52.67$3.3MAug 10, 2026
- SaleKirk L ColemanChief Business Officer6× since Dec 10, 2025: 95,678 shares, avg. $52.15$5.0MJun 10, 2026
- SaleJohn E BreedenChief Delivery Officer3× since Mar 3, 2026: 125,673 shares, avg. $50.95$6.4MMar 11, 2026
- SaleMatthew P FlakeChief Executive Officer, Director2× since Mar 3, 2026: 139,124 shares, avg. $49.98$7.0MMar 9, 2026
- SaleHimagiri K MukkamalaChief Operating Officer3× since Dec 10, 2025: 6,160 shares, avg. $61.85$380,973Mar 9, 2026
- SaleMichael A. VolanoskiChief Revenue Officer9,300 shares at $74.66$694,343Dec 12, 202510b5-1 plan
- SaleJames OfferdahlDirector794 shares at $70.84$56,247Nov 25, 202510b5-1 plan
Plus 8 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Source: SEC Form 4, as of Nov 6, 2026. All filings at the SEC ↗
Revenue & earnings trend
Growth Forecast
QTWO screens overvalued: fair value 24% below the price. Compare with SAP SE →
Recent news
- QTWO Q3 deep dive: AI product traction, margin expansion, and co-CEO transition
- Q2 Holdings (QTWO) Stock Retreat Follows Q3 Earnings Cash Flow Strength
- Q2 Holdings (QTWO) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
- Q2 Holdings (QTWO) Q3 Earnings and Revenues Beat Estimates
Compare Q2 Holdings with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 630 stocks
Valuation Multiplesvs Software - Application median · lower = cheaper
Strength profile in five axes (Snowflake)
Context: sector, industry, market
- Is the Information Technology sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Return on equity by industry
- Quality Score by industry
- PEG screener for stocks with fair value
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Software - Application stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value | Compare |
|---|---|---|---|---|
| Adobe Inc ADBE | $239.30 | $463.72 | +94% | vs QTWO |
| Salesforce, Inc CRM | $213.65 | $342.73 | +60% | vs QTWO |
| Uber Technologies, Inc UBER | $68.59 | $101.28 | +48% | vs QTWO |
| Intuit Inc INTU | $341.50 | $459.14 | +34% | vs QTWO |
| ServiceNow, Inc NOW | $101.97 | $112.60 | +10% | vs QTWO |
| SAP SE SAP | €210.75 | €173.59 | −18% | vs QTWO |
| Cadence Design Systems, Inc CDNS | $319.92 | $225.48 | −30% | vs QTWO |
| Automatic Data Processing, Inc ADP | $303.35 | $150.40 | −50% | vs QTWO |
| Shopify Inc SHOP | $148.91 | $64.96 | −56% | vs QTWO |
| Snowflake Inc SNOW | $275.88 | $73.81 | −73% | vs QTWO |
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Key figures of Q2 Holdings
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