Q2 Holdings, Inc.

For the period ended Dec 31, 2025. Filed Feb 11, 2026.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2025 · Filed Feb 11, 2026

QTWO$75.33+1.5%Stored close · as of Nov 10, 2026

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Contents

Item 8. Consolidated Statements of Cash Flows

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Year Ended December 31,
	2025	2024	2023
Cash flows from operating activities:
Net income (loss)	$52,008	$(38,536)	$(65,384)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Amortization of deferred implementation, solution and other costs	30,086	27,038	25,848
Depreciation and amortization	53,424	68,809	71,707
Amortization of debt issuance costs	2,111	2,059	2,104
Amortization of premiums and discounts on investments	(1,098)	(1,273)	(3,192)
Stock-based compensation expense	86,949	89,215	79,188
Deferred income taxes	1,236	2,106	636
Gain on extinguishment of debt	—	—	(19,312)
Lease impairments	(43)	1,669	4,075
Other non-cash items	696	(490)	311
Changes in operating assets and liabilities:
Accounts receivable, net	(9,936)	906	4,090
Prepaid expenses and other current assets	(3,344)	(12,000)	(787)
Deferred solution and other costs	(9,750)	(14,202)	(17,412)
Deferred implementation costs	(18,158)	(17,663)	(14,954)
Contract assets, net	(5,327)	4,030	3,693
Other long-term assets	5,246	7,282	5,576
Accounts payable	8,581	(9,788)	9,353
Accrued liabilities	1,851	5,968	(492)
Deferred revenues	16,840	28,918	(3,092)
Deferred rent and other long-term liabilities	(9,911)	(8,297)	(11,664)
Net cash provided by operating activities	201,461	135,751	70,292
Cash flows from investing activities:
Purchases of investments	(94,103)	(95,788)	(76,865)
Maturities of investments	118,168	103,739	220,776
Purchases of property and equipment	(6,810)	(6,692)	(5,673)
Capitalized software development costs	(21,283)	(22,339)	(24,970)
Net cash provided by (used in) investing activities	(4,028)	(21,080)	113,268
Cash flows from financing activities:
Repurchases of common shares	(5,000)	—	—
Payment for maturity of convertible notes	(191,000)	—	(10,908)
Payment for repurchases of convertible notes	—	—	(149,640)
Proceeds from capped calls related to convertible notes	—	—	139
Debt issuance costs related to revolving credit agreement	—	(942)	—
Proceeds from exercise of stock options and ESPP	7,028	14,259	8,397
Net cash provided by (used in) financing activities	(188,972)	13,317	(152,012)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	49	(827)	182
Net increase in cash, cash equivalents and restricted cash	8,510	127,161	31,730
Cash, cash equivalents and restricted cash, beginning of period	360,793	233,632	201,902
Cash, cash equivalents and restricted cash, end of period	$369,303	$360,793	$233,632
Supplemental disclosures of cash flow information:
Cash paid for interest	$2,845	$2,680	$2,651

Supplemental disclosure of non-cash investing and financing activities:
Stock-based compensation for capitalized software development	$1,911	$2,882	$3,149
Property and equipment acquired and included in accounts payable and accrued liabilities	$4,936	$341	$478
Property and equipment acquired through tenant improvement allowance	$—	$615	$—

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