Q2 Holdings Names CFO Jonathan Price Co-CEO, Raises 2026 Guidance

Q2 Holdings named CFO Jonathan Price co-CEO on Wednesday as it reported third-quarter results that beat the high end of its guidance and raised its full-year revenue and profit outlook.

Price will become co-CEO on Oct. 29, serving alongside Matt Flake, who remains president and chairman, according to a separate 8-K the digital banking software provider filed the same day. Price will also join the board and will remain CFO while Q2 searches for his successor.

Leadership change

"Moving to a co-CEO structure ensures the long-term continuity of that discipline and focus," Flake said in the announcement. He called Price "a driving force behind Q2's strategy, financial discipline, and growth for nearly a decade."

Price has been CFO since November 2024 and joined Q2 in 2018. Under his amended employment agreement, filed as an exhibit to the 8-K, he will receive an annual base salary of $520,000, be eligible for a cash bonus of up to 100% of salary, and, subject to board approval, receive restricted stock units valued at $3 million.

Record margins

Revenue rose 12% to $225.8 million, according to the earnings release Q2 filed with an 8-K on Wednesday. GAAP net income more than doubled to $33.2 million, or $0.52 a diluted share, from $15.0 million, or $0.23, a year earlier.

Adjusted EBITDA climbed to $67.8 million from $48.8 million. Price said the company posted a record gross margin and a record adjusted EBITDA margin of 30%. GAAP gross margin widened to 59.7% from 54.0%.

"We delivered another strong quarter, with solid bookings led by digital banking and continued momentum across the business," Flake said, adding that credit unions were a key contributor, including multiple Tier 1 wins.

Subscription annualized recurring revenue rose 13.5% to $846.0 million, and total backlog reached about $2.8 billion, up 10%. Q2 signed seven Enterprise and Tier 1 contracts in the quarter.

Flake said early-adopter sign-ups for its new AI-driven fraud solution were roughly twice what the company initially expected. Its User Activity Monitoring early adopter program signed nearly 20 financial institutions, and Q2 said it remains on track to make the offerings generally available in the coming months.

Buybacks and cash

Q2 generated $55.0 million of free cash flow and remained debt-free. It repurchased about 0.6 million shares for $38.8 million in the quarter at an average price of about $61.27, bringing year-to-date buybacks to about 2.9 million shares for $158.9 million. About $336.1 million remained under its authorization as of Sept. 30.

Raised guidance

Q2 now expects 2026 revenue of $888.0 million to $892.0 million, up 12%, and adjusted EBITDA of $253.0 million to $256.0 million.

For the fourth quarter, it forecast revenue of $226.0 million to $230.0 million and adjusted EBITDA of $62.4 million to $65.4 million.

Sources

1. Q2 Holdings Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001410384-26-000062)
2. Q2 Holdings Form 8-K on the appointment of Jonathan Price as Co-Chief Executive Officer, filed Oct. 28, 2026 (accession 0001410384-26-000063)

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