Q2 (QTWO) Investor presentation summary

Investment highlights and financial framework

• FY26 midpoint guidance: revenue $890M and adjusted EBITDA $255M; subscription ARR growth 13%.

• FY26 current outlook: subscription revenue growth ~14.5%, non-GAAP gross margin ~62%, and adjusted EBITDA margin ~28.6%.

• FY27 preliminary objectives: subscription revenue growth of 12.5%–13% and adjusted EBITDA margin expansion of 150–200 bps.

• FY30 directional targets: non-GAAP gross margin ~65% and adjusted EBITDA margin ~35%.

• Framework emphasizes high-margin subscription growth, operating leverage, investment in AI, R&D and infrastructure, and disciplined capital allocation.

Market opportunity and go-to-market

• Estimated TAM exceeds $23B: digital banking $11B, risk and fraud $4B, digital lending and relationship pricing $5B, and Helix $3B.

• U.S. opportunity spans ~9,000 addressable financial institutions, with ~1,200 existing customers and an estimated $3B annual cross-sell opportunity.

• Digital banking incremental revenue contribution in FY24–FY25 was balanced between new customer wins and expansion, at 55% and 45%, respectively.

• Commercial digital banking opportunities averaged >$1M ARR at signing from 2023–2025; 90+ Enterprise and Tier 1 customers use the offering.

• ~50% of digital banking platform customers are not yet using both retail and commercial solutions, supporting further cross-sell potential.

Platform strategy and differentiation

• Digital banking serves retail, SMB and commercial users, complemented by lending, fraud and risk solutions, Q2 Innovation Studio and Helix.

• Q2 Innovation Studio connects fintech applications to digital banking; its ecosystem had >200 technology partners, >2,200 external developers and >4.5M active end users as of Dec. 31, 2025.

• Helix supports cloud-native core banking and embedded finance; platform activity included ~18M users, ~2B monthly API calls and ~$40B in money movement, based on 2025 data.

• The platform position is supported by 1,000+ unique digital banking integrations and embedded fintech and finance capabilities.

• The AI strategy centers on trusted, real-time banking context from regulated systems, behavioral and transaction data, and integrations across fragmented systems.