Q2 (QTWO) Investor presentation summary

Business model and market opportunity

• Over 1,200 customers with average contract length exceeding 10 years and $875M in revenue for 2026, reflecting a 14% year-over-year growth in subscription ARR and 61% average customer contracted revenue growth at 48 months.

• Total addressable market estimated at $23B+, spanning digital banking, risk and fraud, digital lending, relationship pricing, and embedded finance platforms.

• Balanced go-to-market approach with significant new customer acquisition and a $3B cross-sell opportunity among existing customers.

• Commercial solutions are in high demand, with average ARR at signing exceeding $1M and 90+ enterprise and Tier 1 customers utilizing commercial digital banking.

• Differentiated by a single digital banking platform, embedded fintech ecosystem, and over 1,000 unique integrations.

Financial performance and framework

• Revenue has grown consistently, reaching $875M in 2026, with over 27M registered end users and a 22% year-over-year increase in new customer ASP.

• Strong subscription revenue growth is supported by long-duration contracts and high retention, with OPEX growth expected to scale below subscription revenue growth.

• FY26 guidance targets at least 14% subscription revenue growth, over 60% gross margin, and approximately 26% adjusted EBITDA margin.

• Long-term objectives include 12.5–13% subscription revenue growth and ~65% non-GAAP gross margin by FY30.

• Free cash flow conversion is projected to exceed 90% by FY30.

Customer growth and engagement

• Average customer contracted recurring revenue increases by 61% at 48 months post-implementation, driven by organic growth and cross-selling.

• Number of customers generating over $1M in ARR has grown 2.5x since 2020, while those generating over $5M in ARR have increased 5x.

• Focus on deepening customer relationships and winning larger deals with a growth-oriented customer base.