NYSE: QTWO

Founded over 21 years ago, Q2 began by providing digital banking solutions to domestic regional and community financial institutions, or RCFIs. We have rapidly grown since then through a combination of innovation, broad market adoption of our solutions, strategic investments and acquisitions. As customer needs and technology architectures have evolved, we have expanded our solution portfolio to address a broader set of mission-critical technology, data and operational requirements across the financial services value chain. Our expanded collection of solutions now spans digital banking, digital lending and relationship pricing, regulatory and compliance, risk and fraud, account switching, data-driven sales enablement, spending insights and portfolio management, and also includes our open platform solutions as well as our core and BaaS offerings. We serve account holders and borrowers across retail, small to medium business, or SMBs and commercial segments. As of December 31, 2025, we had more than 1,200 financial institution customers using one or more of our solutions, including more than 50% of the top 100 U.S. Banks and more than 50% of the top 100 U.S. Credit Unions, based on total assets. As of December 31, 2025, we had 457 installed digital banking platform customers, and those customers had approximately 27.3 million account holders registered on our digital banking platform. During 2025, End Users executed over $4.0 trillion in financial transactions on our digital banking platform. While we continue to generate a substantial majority of our revenue from our digital banking platform, we are actively leveraging our broader product portfolio and deep domain expertise to expand our market presence. This strategy includes seeking to further penetrate the digital banking market and drive significant growth across our diverse customer base in the broader financial services sector, while opening up new and meaningful expansion opportunities for our business.

The financial services industry is experiencing significant transformation driven by the growing demand within financial institutions to digitize their operations and offerings, as well as the rise of FinTechs and Alt-FIs, which are reshaping End-User expectations for more innovative and engaging digital financial experiences. At the same time, advancements in data analytics, automation, and AI are increasing the importance of modern, fast, flexible technology platforms that can support innovation while meeting stringent regulatory, security and resiliency requirements. These shifts are leading to new roles and interdependencies among financial institutions, FinTechs and Alt-FIs, necessitating new technology, partnerships, and business models. We believe that lasting value creation in financial services will be achieved by those companies that are capable of supporting and embracing these market dynamics. We have developed a comprehensive suite of offerings to accelerate and optimize this transformation for our customers, ranging from digitizing entire banks to facilitating partnerships between financial institutions, FinTechs and Alt-FIs.

We believe this creates an expanded market opportunity for our business, which we have been thoughtfully evolving for several years. We have continuously invested in expanding and improving our digital banking platform since its introduction in 2005. Over the past several years, we have broadened our offerings through strategic investments and acquisitions to serve a wider range of needs for financial institutions, FinTechs and Alt-FIs. These investments have emphasized platform extensibility, configurability and the ability to integrate data and functionality across digital channels. Our portfolio of digital solutions includes a comprehensive suite of offerings for retail, SMB and commercial banking, onboarding, regulatory and compliance, risk and fraud, digital lending and relationship pricing, open platform solutions, BaaS, account switching and data-driven sales enablement, spending insights and portfolio management solutions, among others. We believe our portfolio, which reflects years of strategic development and innovation, affords us a distinct competitive advantage across multiple market segments. As a result of our expanded offerings and market opportunity, we estimate our addressable market for our solutions to be approximately $23.0 billion.

Our solutions utilize a software-as-a-service, or SaaS, model designed to scale with our customers as they grow their business, add End Users and expand the breadth of digital services and solutions they offer. On average, our digital banking platform customers have historically grown contracted revenue by approximately 61% within 48 months of implementation. This growth has been driven by increased adoption of additional solutions, expansion in End-User engagement, and higher overall usage of our solutions over time. Our SaaS model is also designed to reduce the cost and complexity of implementing, maintaining and enhancing the digital services and solutions our customers provide to their End Users.

Delivering advanced digital solutions in the complex and heavily regulated financial services industry requires significant resources, personnel and expertise. We provide digital solutions that are designed to be highly configurable, scalable and adaptable to the specific needs of our customers. We design and develop our solutions with an open platform approach intended to provide comprehensive integration among our solution offerings and our customers' internal and third-party systems. Our platform architecture supports modular innovation and enables customers and partners to deploy new capabilities efficiently while maintaining operational resilience and compliance. This integrated approach allows our customers to deliver a unified financial experience across digital channels. Our solutions provide our customers the flexibility to configure their digital services in a manner that is consistent with each customer's specific offerings, workflows, processes and controls. Our solutions also allow our customers to personalize the digital experiences they deliver to their End Users by extending their individual services and brand requirements across digital channels. Our solutions are designed to comply with the stringent security and technical regulations applicable to financial institutions and financial services providers and to safeguard our customers' data and that of their End Users.

We believe that financial services providers are best served by a broad portfolio of digital solutions offering rapid, flexible and comprehensive integration with internal and third-party solutions enabling them to deliver modern, intuitive, advanced and regulatory-compliant digital solutions. We also believe our unique position in the market stems from the breadth and depth of our solution offerings and customer base, our open and flexible platform approach, our position as a leading provider of digital banking solutions to a large network of financial institutions, and our expertise in delivering new, advanced, innovative and regulatory-compliant digital solutions. We believe these characteristics position us to support customers as they modernize technology stacks, consolidate vendors and adapt to evolving competitive and regulatory environments. These strengths allow us to address the evolving needs and challenges within the financial services industry, as we continually innovate and adapt our offerings to meet the changing demands of our customers and their End Users. We intend to continue to make investments in technology innovation and software development to enhance our existing solutions and platforms while expanding our product portfolio. As consolidation activity within the financial services industry increases, our experience supporting complex technology conversions and platform integrations enables us to assist customers in executing mergers and acquisitions while maintaining operational continuity, security and regulatory compliance.

We primarily sell our solutions through our direct sales organization and the related revenues are recognized over the terms of our customer agreements. The initial term of our digital banking platform agreements averages over five years. Our digital banking platform revenues generally increase as our customers buy more solutions from us and increase the number of Registered Users, as defined in "Key Operating Measures" below, and companies utilizing our solutions and as those retail users and companies increase their number of transactions on our solutions. Our risk and fraud solutions can be sold as part of, or alongside, our digital banking platform, while some solutions may be sold on a standalone basis and are generally monetized through subscription-based arrangements recognized over the term of the applicable customer agreements. The structure and terms of our digital lending and relationship pricing arrangements vary but generally are also sold on a subscription basis through our direct sales organization, and the related revenues are recognized over the terms of the customer agreements. The structure and terms of our Helix arrangements with FinTechs vary but typically involve relatively lower contracted minimum revenues and instead emphasize usage-based revenue, with such revenue recognized as it is incurred. This combination of subscription-based and usage-based revenue models aligns pricing with customer adoption and platform utilization. We have invested, and intend to continue to invest, to grow our business by adding delivery and support resources aligned with our growth, developing and acquiring new solutions, enhancing our existing solutions and technical infrastructure and expanding our sales and marketing activities.

We were incorporated in March 2005 in the state of Delaware under the name CBG Holdings, Inc. We changed our name to Q2 Holdings, Inc. in March 2013. We are headquartered in Austin, Texas, and our principal executive offices are located at 10355 Pecan Park Boulevard, Austin, Texas 78729. Our telephone number is (833) 444-3469.

Market Opportunity and Industry Characteristics

The digital financial services market is defined by high regulatory and security requirements, significant operational complexity and increasing demand for integrated, scalable technology platforms. These characteristics shape both the size of the addressable market and the types of solutions required to serve financial institutions, FinTechs and Alt-FI providers.

Security is paramount for digital financial services

Security is a foundational requirement for digital financial services. The risks of theft and fraud have always existed in banking and financial services. However, as the adoption, use, and breadth of digital financial services offerings has increased, fraud and theft in digital channels has grown substantially. The methods by which fraud can be committed are constantly evolving, including the increasing use of AI to facilitate attacks, requiring financial services providers and their technology providers to continually modify their security protocols and architecture. In addition, safeguarding the funds and information of financial services providers and their End Users becomes increasingly complex as digital financial services grow and extend across new channels, devices, and services not previously contemplated. Successfully securing the digital financial services of financial institutions, FinTechs and other financial services providers requires experience, constant vigilance, and continuous investment to stay informed and guard against these ever-changing threats.

Digital financial services are highly regulated

Regulatory complexity materially shapes the digital financial services market. Financial services providers and their solutions are subject to extensive and complex regulations and oversight by federal, state and other regulatory authorities. These laws and regulations are constantly evolving and affect the conduct of financial services providers' operations and, as a result, the business of their technology providers. Compliance of digital financial solutions with these regulatory requirements depends on several factors, including functionality and design, the classification of the financial services provider and its services, and the way the financial services provider and its End Users use the solutions. To ensure compliance with these laws, technology providers and financial services providers may be required to implement operating policies and procedures to protect the privacy and security of their, the financial services providers' and their End Users' information, and to undergo periodic audits and examinations. Maintaining such regulatory compliance becomes increasingly complex as digital financial services grow and extend across new channels, devices, and services not previously contemplated.

Digital financial services are complex and benefit from integrated platforms

The ubiquity of smartphones, tablets and other connected devices and the continued proliferation of digital solutions offered through open development platforms makes it increasingly difficult to provide a consistent, intuitive and personalized End-User experience and requires digital solutions to support new and rapidly changing mobile operating systems and device types. The technical and operational complexities of delivering integrated digital solutions across multiple operating systems, devices, channels, and complex functionality increase the difficulty of providing a consistent, intuitive and personalized End-User experience. Aging or increasingly complex solutions can create a multitude of challenges for financial services providers, including the following:

•integrating applications and systems from multiple vendors may increase costs and time-to-market;

•managing relationships with multiple vendors can be time consuming and require a greater investment in business development and support resources;

•building, maintaining and upgrading regulatory-compliant solutions and infrastructure can be expensive and time-consuming and require special expertise that can be hard to find and retain;

•operating, supporting and upgrading systems from multiple vendors can be difficult, costly and less secure and limit the ability to provide a unified End-User experience or comprehensive view of End-User behavior;

•partnering between financial institutions and other financial services providers and innovating and delivering new solutions can be difficult and cost-prohibitive when integration with dated legacy infrastructure is required; and

•training End Users and customer personnel on the use of different point systems can be challenging, time-consuming and costly.

The use of multiple point solutions for digital financial services can require End Users to maintain different login credentials across digital channels and manage different systems. Additionally, the disjointed nature of the underlying workflows, data and terminology caused by the implementation of multiple solutions can lead to decreased End-User adoption, retention and satisfaction. End Users' adoption, retention and satisfaction can also be adversely impacted by the dated End-User interfaces of older legacy systems.

These regulatory, security and operational characteristics influence how financial institutions and other financial services providers evaluate technology vendors and shape the scope and scale of the market opportunity for digital financial services platforms.

Addressable Market

We have continuously invested in expanding and improving our digital banking platform since we introduced it in 2005. We intend to continue investing organically and to selectively pursue acquisitions of and strategic investments in technologies that will strengthen and expand the features and functionality of our solutions and provide access to new customers and markets. We have also acquired or developed new solutions and additional functionality that serve a broader range of needs of financial institutions as well as the needs of FinTechs and Alt-FIs.

Our financial institution customers span from RCFIs to global enterprise banks, demonstrating that our portfolio of solutions gives us access to the full spectrum of financial institutions. We market our relationship pricing, fraud detection, risk assessment and compliance solutions to all federally-insured financial institutions on a standalone basis, or in combination with our digital banking platform. We define RCFIs as federally-insured banks and credit unions with less than $100 billion in assets, which according to data compiled by BauerFinancial as of September 30, 2025, consisted of approximately 8,741 financial institutions with combined assets of $9.6 trillion, representing approximately 35% of the aggregate assets held by the 8,772 total federally-insured financial institutions. RCFIs remain critical to our mission of building strong and diverse communities by strengthening their financial institutions. RCFIs have historically sought to differentiate themselves by providing local, personalized banking services that are responsive to the changing needs and circumstances of their communities. Many RCFIs are locally owned and obtain deposits and make digital lending decisions on a local basis. RCFIs account for a large portion of small business loans, helping local businesses create jobs and drive economic growth in the communities they serve. RCFIs seek to develop strong, lasting relationships with their End Users and can serve as centers of commerce and influence in their communities.

The FinTech and Alt-FI markets consist of thousands of financial services providers seeking to provide End Users with new and innovative financial services, experiences and solutions. Our Q2 Innovation Studio offerings, which we market to financial institutions and FinTechs, allow our financial institution customers and other partners to integrate financial services into our digital banking platform, allowing financial institutions to quickly and efficiently incorporate the integrated solutions into their offerings and operations. We primarily market Helix to FinTechs and financial institutions wishing to incorporate banking products and services into their offerings. We also market our Symphonix lending platform and discrete elements of our digital banking platform to FinTechs and Alt-FIs.

Based on our estimates of the number of target financial institutions for our digital banking solutions and our internal assumptions as to the number and types of digital accounts they serve, the prices for our solutions and the number of transactions processed, we believe that the market for our digital banking platform, including retail, SMB and commercial banking, regulatory and compliance, as well as account switching, portfolio management solutions and Q2 Innovation Studio is approximately $11.0 billion. Based on our estimates of the number of target financial institutions, FinTechs and Alt-FIs for risk and fraud solutions and our internal assumptions as to the number of End Users they serve, the prices for our solutions and the number of transactions processed, we believe that the market for our risk and fraud solutions, including real-time fraud monitoring, dispute management, fraud alerts, analytics and regulatory compliance capabilities, whether embedded within digital banking platforms or deployed independently, is approximately $4.0 billion. Based on our estimate of the number of target customers of digital lending and relationship pricing solutions and our internal assumptions as to the number of End Users they serve and the prices for our solutions, we believe that the market for our digital lending and relationship pricing solutions, including the borrower portal, origination, underwriting, servicing, collections, actionable insights, coaching, negotiation, relationship pricing and data-driven sales enablement modules, is approximately $5.0 billion. Based on our estimates of the number of target financial institutions and FinTechs for our Helix solutions and our internal assumptions as to the number of End Users they serve, the prices for our solutions and the number of transactions processed, we believe the market for our Helix solutions including open platform solutions and BaaS, is approximately $3.0 billion. In the aggregate, we believe that the worldwide market opportunity for our solutions is approximately $23.0 billion.

Our Solutions

We deliver our solutions through a unified, cloud-based software platform designed to support digital engagement, operational efficiency and reliable data management across retail, SMB and commercial banking workflows. Our platform is built to operate in highly regulated environments and integrates deeply with our customers' core systems and third-party service providers, enabling financial institutions, FinTechs and Alt-FIs to modernize digital experiences while maintaining resiliency and compliance.

We offer a comprehensive suite of over 60 product offerings and maintain more than 1,000 integrations. Our solutions are designed to meet the diverse needs of financial institutions, FinTechs, and Alt-FIs, enabling them to deliver unified and robust financial experiences across digital channels. Customers may deploy individual solutions or adopt broader, integrated relationships over time.

Our key solution offerings include:

•Digital Banking Platform: Our end-to-end digital banking platform supports retail, SMB and commercial functionality across digital channels through a single technology platform. The platform is designed to unify digital banking experiences across customer segments while supporting configuration, scalability and integration with internal and third-party systems. Our open digital banking platform spans onboarding, essential banking functionality and a broad set of integrations to third-party financial services across the retail, SMB and commercial segments, providing customers with tools to monitor and optimize End-User acquisition, engagement and retention; customize and extend the platform; and improve operational efficiencies. A key differentiator of our digital banking platform is its ability to support both retail and commercial workflows within a single architecture, enabling financial institutions to consolidate vendors, standardize digital experiences and expand relationships over time. We provide a suite of risk and fraud solutions within the digital banking platform designed to safeguard digital financial services against fraudulent activity, and these capabilities are also deployable selectively based on customer needs. Selected capabilities of our digital banking platform include single-login and layered security across channels and devices; configurable retail and commercial digital banking functionality; integration with internal and third-party systems; unified End-User workflows and data; activity tracking and reporting; and flexible branding and personalization options. We also offer complementary capabilities and solutions that enhance the digital banking platform, including remote deposit capture and mobile check processing, card management and switching functionality, personal financial management tools, and spending insights solutions.

•Q2 Innovation Studio: Q2 Innovation Studio is a foundational component of our platform strategy, enabling customers and partners to extend, customize and innovate on top of the Q2 platform without rebuilding core banking infrastructure. Our application program interface, or API, and software development kit, or SDK, based open technology platform allows financial institutions, FinTechs and other partners to design, develop and distribute new functionality that integrates directly into our digital banking platform. Q2 Innovation Studio supports a growing ecosystem of third-party developers and partners, allowing financial institutions to access new capabilities, accelerate time to market and adopt emerging technologies within a trusted, regulated environment. Financial institutions can deploy their own development resources or work with certified partners to supplement or customize their digital offerings, while maintaining consistency across workflows, data and security controls.

•Risk and Fraud Solutions: Risk and fraud management is a mission-critical requirement for digital financial services, as fraud continues to increase in scale, sophistication and cost across digital channels. Our risk and fraud solutions are designed to support financial institutions' efforts to protect End Users, comply with regulatory requirements and manage fraud risk efficiently. These capabilities include dispute management solutions supporting compliance with electronic fund and remittance transfer systems regulations, optional fraud alerts, fraud monitoring and risk reporting, including real-time validation features to help mitigate fraud. These solutions leverage advanced analytics and machine learning techniques and are embedded within the Q2 digital banking platform and may also be offered on a standalone basis to financial institutions, FinTechs and Alt-FIs, allowing our customers to adopt these capabilities independently or as part of broader platform relationships. This flexibility enables financial institutions to align fraud prevention investments with their risk profiles, regulatory obligations and operational strategies.

•Digital Lending and Relationship Pricing: Our digital lending and relationship pricing solutions support financial institutions, FinTechs and Alt-FIs in managing lending workflows, pricing strategies and customer relationships across commercial and consumer use cases. These offerings help customers simplify borrower experiences, accelerate decisioning and improve pricing discipline through data-driven insights. Our relationship pricing solutions are frequently adopted by larger financial institutions as an entry point into broader platform relationships, supporting optimization across loans, deposits and fee-based products. They also provide commercial relationship managers with visibility into customer portfolios, helping them assess risk, profitability and growth opportunities.

•Helix: Helix is our cloud-native core processing and BaaS platform designed to support both financial institutions and FinTechs seeking to incorporate banking products and services into their digital offerings. Helix combines core banking functionality with operational controls, compliance frameworks and integration capabilities required to support regulated banking activities. For FinTech customers, Helix enables the delivery of banking services without requiring customers to independently build or maintain full regulatory and technical infrastructure. For financial institutions, Helix modernizes core banking and supports innovative retail banking experiences and embedded finance and BaaS use cases with institutional control over compliance, risk and operations.

Key Benefits

We believe our solutions provide the following key benefits to our customers and their End Users:

•Unified digital engagement across channels: Our platform provides customers with a comprehensive view of End-User activity and engagement across devices and digital channels. This unified view enables consistent workflows, real-time insights, and integrated risk and fraud assessment, while allowing customers to deliver cohesive digital experiences across retail, SMB and commercial relationships.

•Stronger End-User relationships and loyalty: By enabling personalized, data-driven digital experiences, our solutions help customers deepen relationships with End Users and improve retention. Financial institutions can tailor functionality, branding and targeted offerings to reflect local market needs, institutional priorities and End-User behavior, supporting differentiated and community-specific digital experiences. Our platform also addresses the unique complexity of commercial End Users, enabling financial institutions to support more sophisticated workflows, permissions and insights while maintaining consistency across retail, SMB and commercial relationships. Together, these capabilities help increase engagement frequency, relevance and long-term loyalty across customer segments.

•Extensible platform and broad integration ecosystems: Our open platform and flexible integration tools support rapid integration with a wide range of internal and third-party systems. We maintain more than 1,000 integrations with financial services technology partners, enabling customers to extend functionality, adopt new capabilities and evolve their digital offerings without requiring customers to replace their existing core banking systems.

•Security, compliance, and operational resilience: Our solutions are designed to support the stringent security and regulatory requirements of financial services providers. Customers can leverage our embedded security controls, compliance frameworks and regulatory certifications to help meet supervisory obligations, mitigate fraud risk and maintain resilient digital operations.

•Scalable SaaS delivery model: Our cloud-based SaaS model allows customers to scale digital services efficiently as they grow, add End Users and expand product offerings. By delivering development, implementation, maintenance, monitoring and support through a subscription model, our solutions reduce complexity and total cost of ownership while supporting rapid adoption of new services across various channels.

Our Business Strengths

We believe the following strengths position us to compete effectively and support durable growth in the evolving digital financial services market:

•Purpose-built, unified digital banking platform: Our single, integrated digital banking platform supports retail, SMB and commercial workflows within a unified architecture. This platform-based approach enables customers to consolidate vendors, standardize digital experiences and expand relationships over time while operating in highly regulated environments.

•Deep incumbency, trust, and regulatory expertise: We have more than two decades of experience serving financial institutions and other financial services providers. Our long-standing customer relationships, deep regulatory and compliance expertise, and history of reliable data management position us as a trusted partner for mission-critical digital services.

•Extensible platform ecosystem through Q2 Innovation Studio: Our open technology platform enables customers and partners to extend and innovate on top of the Q2 platform without necessarily rebuilding core infrastructure. Through Q2 Innovation Studio, we support a growing ecosystem of third-party developers and partners, allowing customers to adopt new capabilities, including emerging technologies, within a reliable and regulated framework.

•Recurring revenue model with expansion dynamics: A substantial majority of our revenue is generated from subscription-based arrangements with multi-year terms, and the initial term of our digital banking platform agreements averages over five years. Our platform supports expansion through additional solutions, increased End-User engagement and broader adoption across customer segments, and our long-term customer relationships and high levels of customer retention contribute to visibility and durability in our revenue model.

•Our award-winning culture drives innovation and customer success: We believe our award-winning, innovation-focused culture and the location of our operations facilitate recruiting and retaining top development, integration and design talent. We are headquartered in Austin, Texas, which is a vibrant city that continues to attract an increasing number of young professionals and has close ties to leading research institutions. In each of the past 15 years, the Austin American-Statesman recognized us as one of Austin's "Top Places to Work." We believe our mission, combined with our focus on delivering leading-edge digital solutions, enables us to attract and retain top talent.

Our Growth Strategy

We believe we are well positioned to grow by expanding relationships with existing customers, continuing to move upmarket and leveraging our platform to address adjacent opportunities in the evolving digital financial services landscape. Our growth strategy is centered on the following priorities:

•Further penetrate our large market opportunity: Financial institutions are increasingly adopting cloud-based digital banking solutions to support digital engagement across retail, SMB and commercial segments. Over the past several years, we have expanded our addressable market by acquiring and developing solutions that serve a broader set of financial services providers and End Users. We continue to invest in our unified digital banking platform, commercial banking capabilities, relationship pricing solutions and Q2 Innovation Studio to address a wider range of customer needs and use cases across customer segments.

•Grow revenues by expanding our relationships with existing customers: A significant component of our growth is driven by expanding relationships with existing customers as they increase the number of End Users on our platform and adopt additional solutions. Our single-platform architecture and broad solution portfolio support expansion across multiple lines of business, including retail and commercial digital banking, risk and fraud, and relationship pricing. In addition, our customers grow organically and through mergers and acquisitions, which can further increase adoption of our platform and solutions over time.

•Relentlessly innovate to expand our solutions offerings and enhance our platform: We believe our history of innovation distinguishes us in the market, and we continue to invest in software development informed by the evolving needs of our customers. Q2 Innovation Studio plays an important role in this strategy by enabling customers and partners to extend and customize our platform without rebuilding core infrastructure, supporting faster innovation cycles, broader adoption of new capabilities and integration of emerging technologies within a regulated environment.

•Selectively pursue acquisitions and strategic investments: In addition to organic development, we regularly evaluate strategic opportunities to strengthen and expand our platform. This includes selectively pursuing acquisitions and investments that can enhance our capabilities, expand our addressable market or support adjacent use cases.

Implementation Services, Professional Services and Customer Support

We seek to deepen and grow our customer relationships by providing consistent, high-quality implementation services, professional services, advisory services and customer support, which we believe support customer retention, platform adoption, and incremental expansion opportunities within our existing customer base. We structure our implementation teams to effectively collaborate with the management and technology teams of our customers, supporting the timely deployment and effective utilization of our solutions. Our implementation teams develop and execute coordinated implementation plans centered around five standard phases of IT transformation projects: initiation, configuration, application testing, limited production and production. We offer customized professional services to assist our customers with their efforts to extend our offerings and differentiate their digital brands. We engage with select established customers for more tailored, premium professional services, or Integrated Services, which can result in more ongoing and deeper engagement with those customers. Under certain circumstances for our Symphonix lending solutions, we also partner with third-party professional system integrators to support our customers in the installation and configuration process.

Our customer support personnel serve the comprehensive support-related needs of our customers. Given the highly regulated and operationally complex nature of the financial services industry, our implementation and customer support teams, including any third-party professional system integrators with which we partner, must be knowledgeable about our solutions and the regulatory environments in which our customers operate.

Partner Offerings

In addition to our Q2 Innovation Studio offerings, our customers rely on an ever-growing ecosystem of third-party digital solutions to complement their financial services offerings, and we provide a broad range of tools to help our customers efficiently bring those solutions to market. The flexible nature of our solutions, along with our proprietary integration tools, allow our customers, third parties, and Q2 to build rapid integrations with our customers' internal and third-party systems to support End-User activities and customer processes.

These integration tools connect with a wide variety of third-party applications, allowing us to seamlessly integrate with our customers' internal and third-party systems such as account services, payments, and imaging. Additionally, these integration tools and processes allow us to improve standardization and capabilities across applications and systems. By enabling interoperability across these systems, our platform allows customers to offer a comprehensive set of consumer and commercial functionality to their End Users, which we believe enhances the value and extensibility of the Q2 platform over time.

Sales and Marketing

Our sales and marketing organization is responsible for growing our customer base and maintaining and expanding relationships with our existing customers. We sell our solutions primarily through our direct sales organization and also through partnerships for select solutions and global regions. Our direct sales organization consists of experienced sales professionals who are organized by geography, account size, type of market and whether a prospect is a new or existing customer. Customers are typically assigned a dedicated representative to provide ongoing assistance in the execution of the customer's digital strategy to meet the needs of its End Users. Our sales representatives are supported by our lead generation, solutions consulting, digital strategy and sales operations teams.

Our marketing team complements our sales organization through integrated programs for demand creation, pipeline acceleration, customer expansion and brand advocacy. While the financial institution market is well-defined due to the regulatory classification of financial institutions, the markets for FinTechs and other financial services providers are broader and more difficult to define due to the changing number of providers in each market. We focus our marketing efforts on hosted events and experiences, including our annual in-person client conference, highly-targeted tradeshows, digital marketing, account-based marketing, content marketing and media relations. Our marketing team also conducts primary research to support our industry thought leadership and to identify emerging trends in the industry. Our marketing programs primarily target digital transformation, technology, finance, operations and marketing executives, as well as senior business leaders at financial institutions.

Research and Development

Our focus on innovation has fueled our growth and enables us to provide our customers cloud-based digital solutions that transform the ways in which financial institutions and other financial services providers engage with account holders and retail and commercial End Users and reduce fraud. We allocate significant resources to developing and improving our solutions to meet our customers' evolving needs. Our research and development efforts are informed by customer feedback, regulatory requirements and emerging industry trends, and we monitor and test our solutions regularly.

We maintain a disciplined release process to enhance our existing solutions and introduce new capabilities while maintaining service reliability and security. We follow state-of-the-art practices in software development and design, including using modern programming languages, data storage systems and other tools. We leverage AI both in our products and in our internal operations to deliver better customer experience. Our multi-tiered architecture enables us to scale, add and modify features quickly in response to changing market dynamics, customer needs and regulatory requirements.

Our platform approach supports the rapid development and deployment of new features to address evolving market needs. In addition, our extension and integration frameworks allow customers and partners to address market-specific requirements without disrupting core platform functionality, which is a key aspect of our technology strategy.

Technology and Operations

Due to the highly regulated nature of the financial services industry, our digital banking platform combines multi-tenant and single-instance deployment models. This approach is designed to meet stringent data security and regulatory requirements while minimizing compliance cost and residual risk. Our solutions leverage a modern, multi-cloud architecture that supports scalability, operational efficiency, security and disaster recovery. We have also developed an internal operations and analytics platform that aggregates system-level and End User experience telemetry across our environments to drive continuous improvement, innovation and operational scale.

We operate our digital banking platform on third-party public cloud infrastructure, with Amazon Web Services, or AWS, and Microsoft Azure serving as our primary cloud providers. Our digital lending and relationship pricing solutions, along with select digital banking platform components, are hosted natively in third-party public cloud environments. We have completed the migration of our digital banking platform, including the core computing, storage and processing capabilities, from privately operated data centers to public cloud infrastructure. All hosting environments operate under our unified security posture and compliance framework. Our architecture enables seamless integration across services so that End Users experience a consistent and reliable platform, independent of the underlying cloud service boundaries. This cloud-native design provides flexibility to optimize individual services for performance, scale, cost efficiency, resiliency and security.

Our platform is designed using industry-standard public cloud resiliency patterns to minimize service interruptions and support high availability. Services are deployed across multiple availability zones within regions, with fault isolation and automated recovery mechanisms to reduce the impact of infrastructure-level failures. Network architectures are fully redundant and leverage edge routing, load balancing and managed connectivity services to allow for requests to be moved across multiple regions for business continuity and high availability purposes. We utilize and control a reserved, privately owned IP address space to expedite our disaster recovery management operations for our digital banking platform customers.

Our digital banking platform has achieved average monthly uptime in excess of 99.9% since January 2013. We actively monitor our infrastructure and applications on a 24x7 basis for indicators of risk, performance degradation or anomalous behavior, and we take proactive action to prevent or minimize service disruption. Our hosting environments employ layered security controls, including zero-trust network principles, defense by design architectures, continuous monitoring, anomaly detection, and tightly controlled privileged access. We also enforce strong endpoint security, configuration hardening and monitoring to mitigate risks associated with a globally distributed workforce.

Access to our solutions requires End Users to be authenticated, authorized and validated prior to use, at a minimum through a valid user ID and password. Many customers additionally employ multi-factor authentication methods, such as out-of-band one-time password delivery, hardware-based cryptographic tokens or fast identity online, or FIDO, to further secure access and transaction authorization. With the adoption of agentic base AI capabilities, we continue to evolve and mature our cyber defense and identity monitoring capabilities. Our layered security model supports differentiated access levels and entitlements based on user roles and permissions. Our software development lifecycle conforms with industry practices and utilizes peer reviews prior to production deployment, along with automated and manual vulnerability testing. In addition, our internal penetration testing team, supported by independent third-party assessors, performs regular penetration and vulnerability assessments of our solutions.

Intellectual Property

We rely on a combination of patent, trademark, trade secrets and copyright laws, as well as confidentiality procedures and contractual restrictions, to establish, maintain and protect our proprietary rights. As of December 31, 2025, we had seven patent applications pending and 17 patents issued in the U.S. and other countries, with expiration dates ranging from October 2027 to October 2040. Despite substantial investment in research and development activities, we have not focused on patents and patent applications historically. We license third-party technologies, such as bill-pay technologies, that are incorporated into some of our solutions.

Our Competition

The market for digital solutions for financial services providers is highly competitive. We believe that the breadth of the comprehensive integrations among our solution offerings and our customers' internal and third-party systems, combined with our deep industry expertise, reputation for consistent, high-quality customer support and the pace at which we bring innovation to market distinguish us from the competition across our cloud-based digital banking, digital lending and relationship pricing, fraud products, Q2 Innovation Studio and Helix solutions.

Although we compete with point system vendors and core processing vendors, we also partner with some of these vendors for certain data and services utilized in our solutions and receive referrals from them. In addition, certain of our customers have or can obtain the ability to create their own in-house systems, and while many of these systems have difficulties scaling and providing an integrated platform, we still face challenges displacing in-house systems and retaining customers that choose to develop an in-house system.

We believe the principal competitive factors for our solutions in the financial services markets we serve include the following:

•alignment with the missions of our customers;

•ability to provide a single digital banking platform for consumer, SMB and commercial End Users;

•ability to provide a comprehensive portfolio of products of integrated end-to-end solutions for both account holders and borrowers;

•breadth and depth of product portfolio addressing numerous mission critical applications for our customers;

•full-feature functionality across digital channels;

•ability to integrate targeted offers for End Users across digital channels;

•ability to support financial institutions in acquiring deposits with open API technologies;

•provided as SaaS with subscription pricing model;

•ability to support both internal and external developers to quickly integrate with third-party applications and systems utilizing an SDK;

•design of the End-User experience, including modern, intuitive and touch-centric features;

•configurability and branding capabilities for customers;

•familiarity of workflows and terminology and feature-on-demand functionality;

•integrated multi-layered security and compliance of solutions with regulatory requirements;

•quality of implementation, integration and support services;

•domain expertise and innovation in financial services technology;

•ability to innovate and respond to customer needs rapidly;

•breadth of integrations to third-party financial services;

•rate of development, deployment and enhancement of solutions; and

•ability to collect and utilize data generated by our solutions to deliver insights to our customers.

We believe that we compete favorably with respect to these factors within the financial institution and other financial services providers markets we serve, but we expect competition to continue and increase as existing competitors continue to evolve their offerings and as new companies enter our market. To remain competitive, we believe we must continue to invest in research and development, sales and marketing, customer support and our business operations generally.

People

As of December 31, 2025, we had 2,549 employees, of which 2,548 were full time employees, 1,664 of which were employed in the United States, and 884 were employed outside of the United States. We consider our current relationship with our employees to be good. None of our employees are represented by a labor union nor are a party to a collective bargaining agreement.

At Q2, we are as passionate about our people as we are about our mission. For more than 21 years, Q2 has been recognized and defined by our mission-driven culture. Our mission is to build strong and diverse communities by strengthening their financial institutions. Our people are paramount to our success, and we have always operated with a set of principles to help guide us in how we treat one another, run our business and serve our customers, partners and communities. To ensure our continued success, we endeavor to nurture our mission-driven culture by how we grow our teams, define our goals and reward our employees. Our human capital strategy focuses on employee engagement, talent development, inclusion and well-being.

Employee Engagement and Culture

Since our founding, our culture has been rooted in our mission. We believe our passion, dedication and commitment towards this mission is a significant differentiator for our customers and employees. At Q2, employees experience a culture that is mission-fueled and built on hustle, adaptability and curiosity. We lead with heart, drive the business with purpose, care deeply about customers and hold ourselves accountable.

Our culture is demonstrated and shared through our employee traditions and daily engagements among our employees and with our customers. We continue to refine our employee engagement programs to meet the continued and changing needs of our business, including to accommodate numerous remote and hybrid employees and hybrid working styles. We offer a range of learning and social opportunities, both virtually and in person, with more of our employee engagements returning to Q2 campuses. The role of the campus has evolved to emphasize interaction, which can include formal meetings, informal conversations, brainstorms, social events and other activities that make the most of being together face-to-face, as well as supporting local employees onsite multiple times per week.

We fulfill our mission of building stronger, more diverse communities through volunteerism and financial support, partnering with nonprofits that align with our employees' passions. Q2 team members contribute through hands-on and virtual volunteer opportunities, supported by technology to make participation seamless. To encourage community service, we reward employees with donation dollars to support nonprofits of their choice.

In 2025, employees reported over 16,000 hours of service to 218 organizations and, combined with Q2's efforts, donated approximately $1.6 million to nonprofits globally. In 2025, we also granted $150,000 through the Q2 Philanthropy Fund to nonprofits in Texas, Iowa, Minnesota, Nebraska, North Carolina, Mexico and India. In response to devastating flooding across Central Texas in July 2025, Q2 team members raised over $52,000 in just the first few days of our Texas Flood Relief campaign. With Q2's $50,000 corporate donation and full match of employee contributions, the total impact reached over $154,000.

In 2025, we had the privilege of partnering with community organizations addressing the diverse needs of the communities we serve. This included Foundation Communities, which provides affordable housing and support services that help Central Texans build stable, successful lives, and Girlstart, which sparks girls' interest and engagement in STEM through innovative STEM education programs. Our charitable efforts also focus on causes outside of the U.S., including India-based Akshaya Patra Foundation, which strives to address childhood hunger and promote education.

We are committed to our annual company-wide engagement surveys and thoroughly analyze their results, including through the use of third-party analytics, to ensure we hear our employees and understand their input and feedback. Additionally, we conduct pulse surveys throughout the year to supplement our annual engagement surveys, which helps us more promptly enhance employee programs and benefits. Our leadership team routinely considers the feedback from our employee engagement surveys, both positive and constructive, and focuses on implementing employee-suggested changes to become an even better place to work.

Q2 has been recognized by the Austin American-Statesman as a Greater Austin Top Workplace for 15 consecutive years and in 2025, Q2 was also recognized as a Top Workplace USA based on survey responses from employees across the country.

Our culture and commitment to inclusion is visible across our organization and highlighted through a host of initiatives, programs and groups including the following:

•our portfolio of company-wide events and forums that foster connections to the organization and one another;

•our employee volunteer groups focused on culture, wellness, and charitable causes that help create opportunities for employees to support causes to make a difference in the workplace and local communities;

•partnerships with industry leaders to bring networking and learning opportunities for our Q2 team members;

•promoting a work environment that encourages employees to express their ideas and perspectives, and one which gives employees easy access to leaders, including executives;

•supporting external organizations committed to underserved communities;

•our workspaces and virtual workspace resources that reinforce our mission and guiding principles and promote a collaborative, high-energy work environment that helps facilitate team-based problem solving and cross-departmental learning; and

•our new-hire employee orientations that help new employees learn about our business, culture, mission and values and be positioned for successful performance in their new roles.

To create a culture of teamwork and rewards, we support a range of recognition programs. One of our most utilized programs is a points-based rewards system that allows our employees to highlight successes and give thanks to individuals and teams across the organization. We encourage the engagement of peer-to-peer recognition and showcase our wins, while we utilize Q2's guiding principles as a framework to recognize the behaviors we expect our employees to model. We provide other meaningful opportunities for recognition that emphasize our commitments to each other and our customers, including our

Changemakers recognition program which recognizes outstanding team members across our organization, including both sales and non-sales team members. Employees are selected based on peer and customer nominations and are awarded with gifts to celebrate their accomplishments.

Through our sponsorship of Q2 Stadium and our partnership with Austin FC, Austin's major league soccer team, we are able to extend Q2's philanthropic footprint through volunteering and fundraising events, and offer meaningful team-building experiences, including:

•$150,000 in grants to support three central Texas nonprofits dedicated to underserved communities;

•$100,000 in an annual entrepreneurial sponsorship, providing funding to a minority-owned startup;

•our 2025 Dodgeball tournament for Breakthrough T1D, held at Q2 Stadium, which raised more than $125,000;

•volunteering over 1,500 employee hours through Q2 Stadium volunteer opportunities, benefiting regional nonprofits; and

•providing approximately 1,500 Austin FC game-day experiences for our employees and a variety of customers and non-profit partners.

We proudly embrace the diversity of our employees, partners, customers, stakeholders and the communities we serve. We believe that consideration of differing points of view, including unique backgrounds, experiences and talents, is critical to our success. With a strong history of fostering internal talent and providing growth opportunities for our global workforce, we remain committed to evolving our practices to identify and mitigate bias across our organization. In 2025, we continued strengthening our employee resources groups, or ERGs, to support our internal communities. Our ERGs include Black Q2, Gente de Q2, Q2 Pride, Q2 Women and Q2 Veterans and Allies. Each ERG is championed by executive leadership, guided by a clear mission and powered by dedicated volunteers. Open to all employees, these groups provide opportunities to connect through meaningful events, educational workshops and volunteer initiatives, helping us cultivate a culture of belonging for everyone at Q2.

The following tables represent the diversity statistics of our workforce. Gender numbers reflect Q2's global workforce, and race and ethnicity data is for U.S. only. Gender and ethnicity are self-identified. Based on information provided by our employees who opted to self-identify, representing the vast majority of our employees, our employee population as of December 31, 2025 reflected the following:

FemaleUnderrepresented Racial/Ethnic Group

Overall33.3%30.0%

Director-level roles and above31.2%19.1%

Learning and Development

We recognize the importance of employees developing and progressing in their careers, starting on their first day with our robust new-hire employee orientation and thoughtful onboarding plans, which are designed to give employees a successful beginning of their Q2 career and to accelerate their time to productivity, including deep dives into our culture, products and markets, as well as our Code of Business Conduct and Ethics, our values and our 10 Guiding Principles. Once employees are onboarded, we focus on ways to further develop their skills and careers at Q2. We provide a variety of resources to help our employees grow in their current roles and build new skills, including a wide variety of development resources and courses, offered on-demand and in facilitated live learning opportunities. We emphasize individual and team development planning as part of our annual goal-setting process. In 2025, employees completed over 152,000 hours of training. We believe developing our employees is one of the greatest acts of trust we can show to our managers, and accordingly all managers go through training to enable them to effectively perform as leaders. We expanded leadership development programs supporting employees from new managers to senior executives, with leaders completing over 4,000 hours of training. These programs increasingly incorporate AI-enabled learning tools to enhance collaboration, enterprise thinking and skill development. We also support higher education through internship programs and university partnerships.

We offer development experiences in a variety of formats, facilitated in both classroom style and asynchronous on-demand opportunities available to all Q2 team members. We offer role-specific training, ongoing professional skills development, inclusion skills, and we collaborate with other learning partners to create a wide portfolio of learning resources. We also have online learning experiences to better target digital training resources for employees at any point in their Q2 career journey, from new hire through career development.

Talent Acquisition

Talent Acquisition is designed to support the Company's growth strategy through a scalable, data-driven hiring model that emphasizes efficiency, consistency, and talent quality. We attract candidates through a diversified set of sourcing channels, including long-standing relationships with universities, professional associations, industry networks and employee referrals, supported by a compelling employee value proposition that reflects our mission-driven culture, collaborative working environment, competitive pay structures and career development opportunities.

We prioritize internal talent mobility as a strategic lever to accelerate hiring, retain institutional knowledge, and optimize recruiting costs. During fiscal year 2025, approximately 22% of open positions were filled by internal candidates, reflecting the strength of our internal talent pipeline and succession planning efforts. Our recruiting processes emphasize objective, job-related evaluation criteria and consistent decision-making across roles and geographies.

Compensation and Benefits

Our compensation programs are designed to provide a compensation package that will attract, retain, motivate and reward talented mission-aligned employees who must operate in a fast paced, highly-competitive, and technologically-challenging environment, commensurate with their roles and contributions. For our director-level and above employees, as well as all of our sales personnel, we seek to do this by linking annual changes in compensation to overall company performance, and where applicable, each individual's contribution to the results achieved. The emphasis on overall company performance is intended to align such employees' financial interests with the interests of our stockholders, particularly as it relates to our long-term incentive plans. We are committed to providing comprehensive benefit options, and it is our intention to offer benefits that will allow our employees and their families to live healthier and more secure lives. Some examples of our wide-ranging benefits include: defined contribution retirement plans, including employer contributions; employee stock purchase plan; medical insurance, prescription drug benefits, dental insurance, vision insurance, accident insurance, critical illness insurance, life insurance, disability insurance, health savings accounts with employer contributions, flexible spending accounts, legal insurance and pet insurance.

Employee Well-Being

We are committed to the health, safety and well-being of our employees. In addition to traditional employee benefits, we offer a number of innovative benefits to support the physical, mental and financial health of our employees. These include, among many other things: virtual wellness clinics and classes; global fertility benefits; our Q2 Compassion Fund, which is designed to help team members facing financial hardship immediately after natural disasters or unforeseen personal hardships; online tools that assist employees with their physical and mental health; and special events with outside vendors and participants focusing on employee well-being. We also provide global access to an Employee Assistance Program (EAP) connecting our employees and anyone living in their household with access to a variety of resources, including mental health and counseling, work life balance and online legal services.

Government Regulation

As a technology service provider to financial institutions, FinTechs and Alt-FIs in the United States, we are not required to be chartered by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration or other federal or state agencies that regulate or supervise our customers and other providers of financial services in the United States.

Our customers and prospects operate in a highly regulated environment and are subject to extensive and complex federal, state and international laws, regulations, regulatory oversight and regulatory guidance governing financial services, consumer protection, data privacy and security, payments, lending and the use of technology service providers. These laws and regulations are constantly evolving and affect the conduct of our customers' operations and, as a result, our business. Our solutions are designed to enable our customers to address these regulatory requirements, including those related to financial transactions, information security, privacy, anti-money laundering, consumer fairness, accessibility, third-party risk management and supervisory expectations applicable to technology providers supporting regulated financial institutions.

We are subject to periodic examination by regulators under the authority of the Federal Financial Institutions Examination Council, or FFIEC, under its Guidance on the Supervision of Technology Services Providers and the Gramm-Leach-Bliley Act of 1999, and federal, state and other laws that apply to technology service providers as a result of the services we provide to the institutions and entities they regulate. As a technology service provider, we are examined by federal financial regulators on a rotating basis. These examinations are based on guidance from the FFIEC, which is a formal interagency body empowered to prescribe uniform principles, standards and report forms for the examination of financial institutions and to make recommendations to promote uniformity in the supervision of financial institutions. The examinations cover a wide variety of subjects, including our management, acquisition and development activities, support and delivery, information technology

audits, cybersecurity, as well as our disaster preparedness and business recovery planning. The FFIEC has broad supervisory authority to remedy any shortcomings identified in an examination. Following an examination, our financial institutions' customers may request the open section of the report of examination through their lead examination agency.

The Dodd-Frank Act granted the Consumer Financial Protection Bureau, or CFPB, authority to promulgate rules and interpret certain federal consumer financial protection laws, some of which apply to the solutions we offer. In certain circumstances, the CFPB also has examination and supervision powers with respect to service providers that provide a material service to a financial institution offering consumer financial products and services. In 2024, the CFPB issued a rule pursuant to Section 1033 of the Dodd-Frank Act that would require banks and other financial institutions to share certain customer account data securely with consumers and authorized third parties upon consumer request with compliance dates phased in beginning in 2026 based on institution size. However, in a status report filed in related federal litigation challenging the rule, the CFPB stated that it intends to issue an interim final rule revising its Section 1033 open banking framework and to proceed directly to such interim rulemaking on an expedited basis. While the CFPB has not disclosed the substance or timing of the anticipated interim final rule, these developments introduce uncertainty regarding the scope, timing, and implementation of the Section 1033 requirements and could affect financial institutions and service providers subject to the rule.

The compliance of our solutions with these requirements depends on a variety of factors, including the functionality and design of our solutions, the classification of our customers, and the way our customers and their End Users utilize our solutions. To comply with our obligations under these laws, we are required to implement operating policies, programs and procedures to protect the privacy and security of our customers' and their End Users' information and to undergo periodic audits and examinations. Any actual or perceived failure to comply with these laws and requirements may result in, among other things, revocation of required licenses or registrations, loss of approved status, private litigation, regulatory or governmental investigations, administrative enforcement actions, sanctions, civil and criminal liability, monetary penalties, and constraints on our ability to continue to operate. It is also possible that current or future laws or regulations could be interpreted or applied in a manner that would prohibit, alter, or impair our existing or planned products and services, or that could require costly, time-consuming, or otherwise burdensome compliance measures from us. Refer to "