Latest Ratios: P/E Ratio 67.4x · EV/EBITDA 29.2x · ROE 8.8%. (2011–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.4B | $4.7B | $6.0B | $2.5B | $1.5B | $4.5B | $6.6B | $3.7B | $2.1B | $1.5B | $1.1B |
| Enterprise Value | $3.4B | $4.7B | $6.2B | $2.9B | $2.1B | $4.8B | $6.8B | $4.1B | $2.2B | $1.5B | $1.1B |
| P/E Ratio → | 67.44 | 90.20 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 4.25 | 5.91 | 8.69 | 4.06 | 2.72 | 8.98 | 16.34 | 11.87 | 8.80 | 7.83 | 7.61 |
| P/B Ratio | 5.31 | 7.10 | 11.68 | 5.65 | 3.67 | 7.86 | 10.23 | 9.87 | 13.35 | 14.25 | 11.41 |
| P/FCF | 17.35 | 24.14 | 46.87 | 63.89 | 236.72 | 818.55 | — | — | — | — | — |
| P/OCF | 16.76 | 23.32 | 44.56 | 36.04 | 42.12 | 144.09 | — | 6606.23 | 461.50 | 160.36 | 337.03 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.88 | 8.95 | 4.57 | 3.67 | 9.58 | 16.82 | 13.05 | 9.10 | 7.53 | 7.25 |
| EV / EBITDA | 29.16 | 40.65 | 234.84 | — | — | — | — | — | — | — | — |
| EV / EBIT | 73.53 | 102.49 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 24.03 | 48.30 | 71.94 | 318.79 | 873.21 | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.0% | 54.0% | 50.9% | 48.5% | 45.3% | 45.1% | 43.4% | 48.5% | 49.5% | 48.7% | 48.5% |
| Operating Margin | 5.7% | 5.7% | -6.1% | -13.8% | -18.5% | -15.6% | -24.8% | -16.1% | -13.2% | -13.9% | -23.8% |
| Net Profit Margin | 6.5% | 6.5% | -5.5% | -10.5% | -19.3% | -22.6% | -34.2% | -22.5% | -14.7% | -13.5% | -24.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.8% | 8.8% | -8.0% | -15.1% | -22.0% | -18.6% | -26.9% | -26.3% | -26.7% | -25.3% | -33.3% |
| ROA | 4.0% | 4.0% | -3.1% | -5.1% | -8.0% | -8.0% | -11.3% | -9.6% | -10.5% | -12.6% | -17.9% |
| ROIC | 5.1% | 5.1% | -4.3% | -7.5% | -8.6% | -6.9% | -9.4% | -7.7% | -16.9% | -42.9% | -55.6% |
| ROCE | 5.6% | 5.6% | -4.4% | -7.9% | -8.8% | -6.3% | -9.3% | -8.0% | -11.9% | -18.8% | -23.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.52 | 0.52 | 1.05 | 1.22 | 1.75 | 1.09 | 0.93 | 1.24 | 1.15 | — | — |
| Debt / EBITDA | 3.01 | 3.01 | 20.45 | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.03 | 0.36 | 0.71 | 1.27 | 0.52 | 0.30 | 0.97 | 0.47 | -0.54 | -0.55 |
| Net Debt / EBITDA | -0.19 | -0.19 | 6.95 | — | — | — | — | — | — | — | — |
| Debt / FCF | — | -0.11 | 1.43 | 8.05 | 82.06 | 54.65 | — | — | — | — | — |
| Interest Coverage | 8.44 | 8.44 | -5.25 | -9.79 | -14.89 | -2.36 | -3.75 | -3.11 | -2.86 | -212.53 | -62.36 |
Net cash position: cash ($368M) exceeds total debt ($346M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.02 | 1.02 | 1.40 | 2.23 | 2.77 | 3.10 | 4.23 | 1.40 | 2.96 | 1.93 | 2.12 |
| Quick Ratio | 1.02 | 1.02 | 1.40 | 2.23 | 2.77 | 3.10 | 4.23 | 1.40 | 2.74 | 1.70 | 1.90 |
| Cash Ratio | 0.68 | 0.68 | 1.12 | 1.69 | 2.26 | 2.54 | 3.70 | 1.00 | 2.41 | 1.46 | 1.64 |
| Asset Turnover | — | 0.62 | 0.54 | 0.52 | 0.42 | 0.36 | 0.28 | 0.31 | 0.52 | 0.91 | 0.75 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 7.28 | 6.58 | 5.91 |
| Days Sales Outstanding | — | 34.17 | 26.19 | 30.44 | 35.90 | 35.73 | 34.00 | 26.97 | 30.68 | 24.84 | 29.74 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.5% | 1.1% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 5.8% | 4.1% | 2.1% | 1.6% | 0.4% | 0.1% | — | — | — | — | — |
| Buyback Yield | 0.1% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.1% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $65M | $60M | $58M | $57M | $56M | $52M | $46M | $43M | $41M | $40M |
Regional bank consolidation risk
According to current market data, QTWO trades at a forward P/E of 17.18 and a P/S of 3.77, suggesting that investors are pricing in a significant growth premium relative to legacy core processors like FIS, which trade at lower multiples due to their mature, utility-like business models.
The valuation appears to hinge on the market's belief in the company's ability to capture further market share in the RCFI segment. While the forward P/E is lower than the TTM figure of 59.89, this implies an expectation of rapid earnings expansion that warrants careful monitoring against actual margin delivery.
Based on reported figures, QTWO's ROIC has trended upward from -1.7% in 2023Q4 to 3.4% in 2026Q1, indicating that the company is beginning to generate positive returns on its invested capital as it scales its cloud-native platform and achieves greater operational leverage across its client base.
The transition from negative to positive ROIC is a critical indicator of the company's maturation. Investors should monitor whether this trend continues as the company balances its R&D-heavy cost structure with the need to deliver sustainable shareholder returns.
As reported in recent financial statements, QTWO's DSO has remained relatively consistent, hovering between 28 and 36 days over the last ten quarters, which suggests that the company maintains effective control over its receivables despite the inherent complexity of its implementation-heavy revenue model.
The stability in DSO indicates that the company's billing and collection processes are well-aligned with its client base of regional financial institutions. This efficiency is vital for maintaining cash flow, especially as the company continues to integrate professional services into its broader subscription-based offerings.
According to quarterly filings, QTWO has successfully reduced its debt-to-equity ratio from 1.22 in 2023Q4 to 0.56 in 2026Q1, reflecting a disciplined approach to capital structure that significantly improves the company's ability to service its obligations in a fluctuating interest rate environment.
The improvement in interest coverage, which reached 23.34x in 2026Q1, suggests that the company's debt service burden is becoming increasingly manageable. This deleveraging provides the firm with greater strategic flexibility to pursue organic growth or potential bolt-on acquisitions without overextending its balance sheet.
Data from recent financial reports suggests that the market's reliance on EV/EBITDA as a primary valuation metric for QTWO may be misleading, as it fails to account for the significant impact of stock-based compensation and capitalized software development costs on the company's true economic earnings.
Investors should prioritize free cash flow and adjusted operating margins over EBITDA to better understand the company's underlying profitability. Relying on EBITDA alone may obscure the cash-flow-neutral nature of stock-based compensation, which remains a substantial component of the company's talent acquisition strategy.
Includes 30+ ratios · 15 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying QTWO stock.
Q2 Holdings, Inc.'s current P/E ratio is 67.4x. The historical average is 90.2x.
Q2 Holdings, Inc.'s current EV/EBITDA is 29.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 40.7x.
Q2 Holdings, Inc.'s return on equity (ROE) is 8.8%. The historical average is -44.4%.
Based on historical data, Q2 Holdings, Inc. is trading at a P/E of 67.4x. Compare with industry peers and growth rates for a complete picture.
Q2 Holdings, Inc. has 54.0% gross margin and 5.7% operating margin.
Q2 Holdings, Inc.'s Debt/EBITDA ratio is 3.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.