Q2 Holdings Q3 2026 slides: 30% EBITDA margin, AI momentum
Q2 Holdings Inc. reported its third quarter 2026 results on October 28, achieving a milestone with a 30% adjusted EBITDA margin for the first time. Despite beating revenue and earnings estimates, shares fell 2.08% in after-hours trading. The company's revenue grew 12% year-over-year to $225.8 million, while its adjusted EBITDA increased 39% to $67.8 million.
Subscription revenue, which makes up 83% of total revenue, grew 14% year-over-year. CEO Matt Flake highlighted strong performance in digital banking bookings and credit unions, while also noting progress in AI-driven fraud solutions. Despite the success, investors expressed caution about the sustainability of margin gains and the timeline for AI revenue growth.
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