Q2 Holdings, Inc. (NYSE:QTWO) is one of the 11 best 52-week low-tech stocks to buy now. On February 11, RBC Capital maintained its Sector Perform rating on Q2 Holdings, Inc. (NYSE:QTWO), while lowering its price target. Analyst Daniel Perlin lowered the company’s price target for the stock from $86 to $67. The analyst said the company’s fourth-quarter results showed improved margins and strong booking performance. However, initial guidance for subscription revenue growth in fiscal 2027 of 12.5% to 13% puts pressure on the stock. According to the company, the more conservative outlook, along with broader negative sentiment in the software world, has contributed to the recent decline in share prices.
In the fourth quarter, Q2 Holdings, Inc. reported. (NYSE:QTWO) posted total revenues of $208.2 million, up 14% year-over-year and 3% quarter-over-quarter. Full year revenue was $794.8 million, up 14% from last year. Subscription revenue accounted for 82% of total revenue and grew 17% this year. Total annual recurring revenue (ARR) was $921 million, representing annual growth of 12%, while subscription ARR increased 14% to $780 million. Gross margin grew to 58.6% during the quarter, up slightly from 57.4% in the previous year. However, for the full year, gross margins increased from 56% to 58%. Thanks to a solid conversion rate of 93%, the company generated $173 million in free cash flow during the year.
Q2 Holdings, Inc. (NYSE:QTWO) operates as a digital solutions provider. The company offers its solutions to financial technology companies, alternative finance companies (Alt-FIs), financial institutions and FinTechs in the United States. It also offers a digital banking platform and risk and fraud solutions.
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Disclosure: None. This article was originally published on Insider monkey.
