
Q2 Hld (QTWO) Stock Forecast & Price Target
Q2 Hld (QTWO) Analyst Ratings
Bulls say
Q2 Holdings Inc. has demonstrated robust growth in its higher-margin subscription revenue, which increased by 16% year-over-year and accounted for 81% of total revenue, suggesting a strong and sustainable business model. Additionally, the company's remaining performance obligations (RPO) rose significantly, up 24% year-over-year to $2.5 billion, signaling solid future revenue visibility and consistent demand within the market. Furthermore, the projected revenue for FY25 has been revised upward to a range of $789-$793 million, indicating optimism in the company's growth trajectory amidst expanding product offerings and enhanced cross-selling efforts.
Bears say
Q2 Holdings Inc. faces a negative outlook primarily due to a potential reduction in bank-tech spending, which could hinder its revenue growth as regional financial institutions may opt to retain legacy solutions rather than invest in new virtual banking technologies. The company's operational efficiency has improved, evidenced by a decline in operating expenses as a percentage of revenue, yet this may not offset broader market challenges including prolonged margin pressures that could adversely affect share valuation. Furthermore, downturns or consolidation within the financial services sector could exacerbate pricing pressures and share loss, fundamentally disrupting the company’s growth trajectory.
This aggregate rating is based on analysts' research of Q2 Hld and is not a guaranteed prediction by Public.com or investment advice.
Q2 Hld (QTWO) Analyst Forecast & Price Prediction
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