Q2 (QTWO) Investor update summary

Strategic AI opportunity and business model alignment

• AI is seen as a transformative opportunity, fully aligned with the existing business model and platform strengths in financial services.

• Deep integration and context within banking operations allow leveraging AI to accelerate and amplify value for clients.

• The platform's complexity and orchestration capabilities are key differentiators, not easily replicated by SaaS competitors.

• AI-driven products like Q2 Code enable rapid, secure customization for banks, enhancing compliance and operational agility.

• Customers can focus on unique business needs while the platform handles security, compliance, and infrastructure.

Technical and architectural advantages

• The digital banking layer orchestrates complex integrations across 25-35 sources, managing workflows, entitlements, and security.

• Context and orchestration layers provide seamless user experiences and operational efficiency.

• The architecture is deeply embedded in clients’ risk, compliance, and operational models, making it a core system.

• The platform’s vertical integration within banks is more extensive than commonly perceived.

AI adoption, internal transformation, and customer enablement

• AI is embedded across the organization, with over 80% of engineers using AI tools for coding, testing, and validation.

• AI accelerates code review cycles, improves quality, and reduces regressions, with tangible efficiency gains.

• Products like Q2 Assistant deliver over 50% efficiency improvements in back-office tasks for clients.

• Smaller, AI-powered teams are delivering products faster, with agentic solutions already in production.