Q2 Holdings beats Q3 2026 estimates with record 30% EBITDA margin
As seen on the 24/7 Wall St. homepage on October 28, 2026.
Adjusted EBITDA margin hit a record 30.0%, showing Q2's digital banking scale finally dropping to the bottom line. Management raised full-year revenue guidance and named CFO Jonathan Price co-CEO effective October 29.
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Q2 Holdings reported adjusted EPS of $0.74 for its third quarter of 2026, beating expectations on both revenue and earnings. That continues a pattern of consistent delivery after the company also beat on EPS in Q4 2024, Q1 2025, Q3 2025, Q4 2025, and Q2 2026.
Adjusted EBITDA margin hit a record 30.0%, up from 24.2% a year earlier. Subscription annualized recurring revenue rose 13.5%, showing the recurring base is now large enough to push operating leverage down to the margin line.
Management raised full-year 2026 revenue guidance to a range of $888.0 million to $892.0 million, implying 12% growth for the year. The company also signed seven Enterprise and Tier 1 contracts in the quarter and reported a backlog of approximately $2.8 billion, providing visibility into future quarters.
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CFO Jonathan Price was appointed co-CEO alongside President Matt Flake, effective October 29, while a search for a new CFO gets underway. The dual-CEO structure and an open CFO seat introduce execution uncertainty as the company scales its AI product lineup, including Q2 Code, Q2 Assistant, and User Activity Monitoring.
Q2 repurchased approximately 0.6 million shares in the quarter for $38.8 million, with roughly $336.1 million remaining under its authorization. Year-to-date buybacks are reducing share count and lifting per-share earnings alongside the underlying business gains.
Mentioned: QTWO