Q2 Holdings, Inc. (QTWO) Stock Analysis
Last updated Oct 27, 2026
Health Check
Last analyzed Oct 23, 2026
- Financial Health 75
- Profitability 65
- Business Quality 75
- Balance Sheet 65
- Cash Flow 70
Why this rating?
Health 70/100 — High Quality
Entry timing is weak right now. Quality may be fine; the setup is not.
Company overview
Q2 Holdings, Inc. (QTWO) is a Software - Application company in the Technology sector. Compound Radar rates Q2 Holdings, Inc. 70/100 (High Quality) due to high business quality, steady revenue growth, and manageable leverage.
Investment profile
- Quality High
- Growth Moderate
- Balance Sheet Adequate
- Valuation Fair
Financial highlights
Valuation
- P/E 48.32
- Forward P/E 20.01
- EV/Revenue 4.94
Profitability
- Revenue Growth 12.6%
- Gross Margin 57.0%
- Operating Margin 13.4%
- Net Margin 10.9%
- ROE 15.0%
Financial strength
- Cash $106.42M
- Debt $40.93M
- Net Cash $65.49M
- Free Cash Flow $173.37M
- Current Ratio 0.95
Similar companies
Peers in Software - Application, ranked by Financial Health.
Latest quoted price for the name. Helps anchor the setup in today’s market level.
Health Entry- Autodesk, Inc. Software - Application ADSK$242.10 86 Health 86 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Adobe Inc. Software - Application ADBE$248.36 85 Health 85 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Cadence Design Systems, Inc. Software - Application CDNS$343.08 82 Health 82 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Shopify Inc. Software - Application SHOP$165.81 81 Health 81 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Clear Secure, Inc. Software - Application YOU$45.53 81 Health 81 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Good Entry Good EntryA usable setup — not as clean as Strong Entry, but timing is not mixed or weak.
- Grindr Inc. Software - Application GRND$12.94 81 Health 81 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Guidewire Software, Inc. Software - Application GWRE$169.15 80 Health 80 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Chime Financial, Inc. Software - Application CHYM$28.55 80 Health 80 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Good Entry Good EntryA usable setup — not as clean as Strong Entry, but timing is not mixed or weak.
FAQ
How Compound Radar scores and tracks Q2 Holdings, Inc. (QTWO).