QTWO on NYSE

Q2 Holdings, Inc.

In its 2026 annual report the company says: “Q2 is a leading provider of digital solutions to financial institutions, financial technology companies, or FinTechs, and alternative finance companies, or Alt-FIs, seeking to incorporate banking into their customer engagement and servicing strategies. Our solutions transform the ways in which financial institutions and other financial services providers engage with account holders and retail and commercial End Users.”4 It is headquartered in Austin, Texas.1 Its shares trade on NYSE under the symbol QTWO.1

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Last updated Oct 21, 2026.

Overview

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  • TickerQTWO on NYSE1
  • IndustryServices-Prepackaged Software1
  • HeadquartersAustin, Texas1
  • Business address10355 Pecan Park Boulevard, Austin, Tx 787292
  • Filer categoryLarge accelerated filer2

Q2 is a leading provider of digital solutions to financial institutions, financial technology companies, or FinTechs, and alternative finance companies, or Alt-FIs, seeking to incorporate banking into their customer engagement and servicing strategies. Our solutions transform the ways in which financial institutions and other financial services providers engage with account holders and retail and commercial End Users. Digital financial services are highly regulated, subject to extensive and evolving supervisory, consumer protection, privacy and third‑party risk management requirements, and security is paramount, as providers must protect sensitive financial data and funds and defend against continually evolving cyber threats and fraud. Providers must also manage significant technical and operational complexity to deliver consistent, compliant experiences across channels, devices and thir…4 From its latest annual report

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2025

54.1%Gross margin5
5.0%Operating margin5
6.5%Net margin5
14.1%Revenue growth, 20255
7.9%Return on equity5
$194.7MFree cash flow5

What sells

Revenue by product, business segment and region, as the company reports it to the SEC.

Products and services

Subscriptions brought in 82% of the revenue Q2 Holdings, Inc. broke down this way in fiscal 2025.

  1. Subscriptions$648.6M582%up 17% from 2024
  2. Product and Service, Other$75.6M510%up 2% from 2024
  3. Transactional Services$70.6M59%up 3% from 2024
Products and services by year
Products and services202320242025
Subscriptions$475.9M$553.6M$648.6M
Product and Service, Other$83.3M$74.4M$75.6M
Transactional Services$65.4M$68.5M$70.6M

Where the money goes

Where each dollar of revenue went, fiscal 2025

  • Cost of revenue46¢$365.1M
  • Research and development19¢$154.3M
  • Other costs28¢$220.6M
  • Income tax0¢$2.7M
  • Profit7¢$52.0M

Out of $794.8M in revenue.5

Where each dollar of operating cash went, fiscal 2025

  • Capital spending3¢$6.8M
  • Share buybacks2¢$5.0M
  • Kept or used elsewhere94¢$189.7M

Out of $201.5M of cash from operations.5

Financial statements

Revenue67895$794.8M in 2025+152% since 2019
0$200.0M$400.0M$600.0M$800.0M2019: $315.5M$315.5M20192020: $402.8M$402.8M2020+28%2021: $498.7M$498.7M2021+24%2022: $565.7M$565.7M2022+13%2023: $624.6M$624.6M2023+10%2024: $696.5M$696.5M2024+12%2025: $794.8M$794.8M2025+14%
Gross profit67895$429.7M in 2025+181% since 2019
0$200.0M$400.0M$600.0M2019: $153.0M$153.0M20192020: $174.6M$174.6M2020+14%2021: $225.0M$225.0M2021+29%2022: $256.3M$256.3M2022+14%2023: $302.7M$302.7M2023+18%2024: $354.5M$354.5M2024+17%2025: $429.7M$429.7M2025+21%
Operating income67895$39.9M in 2025
-$150.0M-$100.0M-$50.0M0$50.0M2019: -$66.7M-$66.7M20192020: -$99.8M-$99.8M2020+50%2021: -$78.0M-$78.0M2021−22%2022: -$104.8M-$104.8M2022+34%2023: -$86.1M-$86.1M2023−18%2024: -$42.3M-$42.3M2024−51%2025: $39.9M$39.9M2025
Net income67895$52.0M in 2025
-$150.0M-$100.0M-$50.0M0$50.0M$100.0M2019: -$70.9M-$70.9M20192020: -$137.6M-$137.6M2020+94%2021: -$112.7M-$112.7M2021−18%2022: -$109.0M-$109.0M2022−3%2023: -$65.4M-$65.4M2023−40%2024: -$38.5M-$38.5M2024−41%2025: $52.0M$52.0M2025

Every line of the income statement as filed: the last 3 fiscal years, latest first.5

Period ending2025-12-312024-12-312023-12-31
Revenues$794.8M$696.5M$624.6M
Cost of revenues$365.1M$342.0M$322.0M
Gross profit$429.7M$354.5M$302.7M
Sales and marketing$105.9M$106.0M$109.5M
Research and development$154.3M$143.2M$137.3M
General and administrative$125.5M$122.9M$110.2M
Transaction-related costs$166.0K$0$24.0K
Amortization of acquired intangibles$93.0K$17.0M$20.7M
Lease and other restructuring charges$3.8M$7.6M$11.0M
Total operating expenses$389.8M$396.7M$388.7M
Income (loss) from operations$39.9M-$42.3M-$86.1M
Interest and other income$20.2M$16.3M$10.1M
Interest and other expense-$5.4M-$4.9M-$5.7M
Gain on extinguishment of debt$0$0$19.9M
Total other income, net$14.8M$11.4M$24.2M
Income (loss) before income taxes$54.7M-$30.9M-$61.8M
Provision for income taxes-$2.7M-$7.7M-$3.6M
Net income (loss)$52.0M-$38.5M-$65.4M
Unrealized gain (loss) on available-for-sale investments-$36.0K$392.0K$1.8M
Foreign currency translation adjustment-$44.0K-$1.2M$61.0K
Comprehensive income (loss)$51.9M-$39.3M-$63.5M
Basic (in usd per share)$0.84-$0.64-$1.12
Diluted (in usd per share)$0.80-$0.64-$1.12
Basic (in shares)62.2M shares60.1M shares58.4M shares
Diluted (in shares)65.1M shares60.1M shares58.4M shares

Compare Q2 Holdings, Inc. with another company

Corporate structure

Q2 Holdings, Inc. sits at the top of its group. 7 entities, 6 countries on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of Q2 Holdings, Inc.

  • Q2 Holdings, Inc. Austin, Texas
    • Cloud Lending Australia Pty. Ltd. Subsidiary · Australia
    • Cloud Lending U.K. Ltd. Subsidiary · United Kingdom
    • MFIFLEX Tech. Pvt. Ltd. Subsidiary · India
    • Q2 Software, Inc. Subsidiary · Delaware, United States
    • QTWO Mexico, S.C. Subsidiary · Mexico
    • Sensibill Inc. Subsidiary · Canada

Built from subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.

What it owns

What Q2 Holdings, Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Property and equipment

ItemLatestA year beforeChange
Property and equipment, before depreciation$128.9M5 Dec 31, 2025$122.1M5 Dec 31, 2024+5.5%
Accumulated depreciation$101.1M5 Dec 31, 2025$90.6M5 Dec 31, 2024+11.6%
Property and equipment, net$27.8M5 Dec 31, 2025$31.5M5 Dec 31, 2024−11.9%
Operating-lease assets (leased space)$27.2M5 Dec 31, 2025$30.4M5 Dec 31, 2024−10.6%

Investments

ItemLatestA year beforeChange
Cash and cash equivalents$367.6M5 Dec 31, 2025$358.6M5 Dec 31, 2024+2.5%
Marketable securities, current$65.1M5 Dec 31, 2025$88.1M5 Dec 31, 2024−26.1%
Debt securities available for sale$64.4M5 Dec 31, 2025$87.7M5 Dec 31, 2024−26.6%
Stakes in other companies (equity method)$700.0K5 Dec 31, 2025$300.0K5 Dec 31, 2024+133.3%

Intangibles and goodwill

ItemLatestA year beforeChange
Goodwill$512.9M5 Dec 31, 2025$512.9M5 Dec 31, 20240%
Intangible assets, net (excluding goodwill)$78.4M5 Dec 31, 2025$94.6M5 Dec 31, 2024−17.2%
Finite-lived intangibles, gross$221.6M5 Dec 31, 2025$232.7M5 Dec 31, 2024−4.7%
Accumulated amortization$143.2M5 Dec 31, 2025$138.0M5 Dec 31, 2024+3.8%
Finite-lived intangibles, net$78.4M5 Dec 31, 2025$94.6M5 Dec 31, 2024−17.2%

Properties, in its own words

Our principal executive offices are located in Austin, Texas in two adjacent buildings under separate lease agreements. Pursuant to the first agreement, we lease approximately 129,000 square feet of office space with an initial term that expires on April 30, 2028, with the option to extend the lease for an additional ten-year term. Pursuant to the second agreement, we lease approximately 129,000 square feet of office space with separate lease terms for different portions of the building of approximately seven and ten years, with the options to extend the separate leases on the second building from five to ten years. Approximately 35,000 square feet of the first building is being actively marketed for sublease. In addition, we also lease office spaces in other U.S. cities located in Nebraska, Iowa and North Carolina. Internationally, we lease offices in India and Australia. We believe our current facilities are adequate to meet our current needs. We intend to secure new facilities or expand existing facilities to support future growth and believe suitable additional or alternative space will available on commercially reasonable terms as needed to accommodate operations.

Item 2 of the 10-K filed Feb 11, 2026.4

Leadership

Who has led Q2 Holdings, Inc., and when. Pick a name to see everywhere that person has worked.

Board members and other officers (28)

Subsidiaries and ownership

Subsidiaries (Exhibit 21)

  • Cloud Lending Australia Pty. Ltd. Australia3
  • Cloud Lending U.K. Ltd. United Kingdom3
  • MFIFLEX Tech. Pvt. Ltd. India3
  • Q2 Software, Inc. Delaware3
  • QTWO Mexico, S.C. Mexico3
  • Sensibill Inc. Canada3

The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.

Former names

  • CBG Holdings, Inc.Jan 13, 2012 to Mar 19, 20132
  • CBG Holdings IncAug 20, 2007 to Nov 19, 20072

Timeline

  1. Jul 29, 20268-K Results of operations; Other events48
  2. Jun 12, 20268-K Shareholder vote49
  3. Apr 29, 20268-K Results of operations50
  4. Feb 11, 20268-K Results of operations51
  5. Nov 5, 20258-K Results of operations; Other events52
  6. Nov 5, 20258-K Executive or director change53
  7. Jul 30, 20258-K Results of operations54
  8. Jun 5, 20258-K Shareholder vote55
  9. May 7, 20258-K Results of operations56
  10. Mar 10, 20258-K Executive or director change57
  11. Feb 12, 20258-K Results of operations58
  12. Feb 12, 20258-K Executive or director change59
  13. Mar 19, 2014New chief executive Matthew P. Flake becomes CEO13

Calendar

Coming up

  1. Oct 28, 2026 · After the closeReports results for the quarter ending Sep/2026 A year earlier it reported $0.30 a share, on Nov 5, 2025.60

When it reported results

  1. Jul 29, 2026Reported quarterly or annual results48
  2. Apr 29, 2026Reported quarterly or annual results50
  3. Feb 11, 2026Reported quarterly or annual results51
  4. Nov 5, 2025Reported quarterly or annual results52
  5. Jul 30, 2025Reported quarterly or annual results54
  6. May 7, 2025Reported quarterly or annual results56
  7. Feb 12, 2025Reported quarterly or annual results58
  8. Nov 6, 2024Reported quarterly or annual results61

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar

Filings

600 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 39 major events, 247 insider forms, 25 large holders, 269 other. The latest 20:

  1. Sep 11, 20264 EDGAR
  2. Sep 11, 2026144 EDGAR
  3. Aug 14, 20264 EDGAR
  4. Aug 13, 2026144 EDGAR
  5. Aug 12, 20264 EDGAR
  6. Aug 10, 2026144 EDGAR
  7. Jul 29, 202610-Q EDGAR
  8. Jul 29, 20268-K EDGAR
  9. Jun 12, 20264 EDGAR
  10. Jun 12, 20264 EDGAR
  11. Jun 12, 20264 EDGAR
  12. Jun 12, 20264 EDGAR
  13. Jun 12, 20264 EDGAR
  14. Jun 12, 20264 EDGAR
  15. Jun 12, 20268-K EDGAR
  16. Jun 12, 20264 EDGAR
  17. Jun 10, 2026144 EDGAR
  18. Jun 3, 20264 EDGAR
  19. Jun 1, 2026144 EDGAR
  20. May 14, 20264 EDGAR

The 600 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

225 open-market trades by officers, directors and large owners since October 2021: 0 buys and 225 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Sep 11, 2026Kerr Michael SGeneral CounselSale636$60.96$38.8KForm 4
Aug 13, 2026Price JonathanChief Financial OfficerSale77,180$65.71$5.1MForm 4
Aug 10, 2026Rutledge Kimberly AnneChief People OfficerSale10,000$63.07$630.7KForm 4
Jun 10, 2026Coleman Kirk LChief Business OfficerSale3,603$43.48$156.7KForm 4
Jun 1, 2026Coleman Kirk LChief Business OfficerSale20,894$49.50$1.0MForm 4
May 14, 2026Kerr Michael SGeneral CounselSale397$44.98$17.9KForm 4
Mar 11, 2026Kerr Michael SGeneral CounselSale2,071$50.33$104.2KForm 4
Mar 11, 2026Rutledge Kimberly AnneChief People OfficerSale3,187$50.37$160.5KForm 4
Mar 11, 2026Breeden John EChief Delivery OfficerSale8,924$50.34$449.2KForm 4
Mar 9, 2026Mukkamala Himagiri KChief Operating OfficerSale1,343$51.35$69.0KForm 4
Mar 9, 2026Coleman Kirk LChief Business OfficerSale10,849$51.35$557.1KForm 4
Mar 9, 2026Kerr Michael SGeneral CounselSale2,821$51.35$144.9KForm 4
Mar 9, 2026Price JonathanChief Financial OfficerSale8,680$51.35$445.7KForm 4
Mar 9, 2026Rutledge Kimberly AnneChief People OfficerSale4,340$51.35$222.9KForm 4
Mar 9, 2026Breeden John EChief Delivery OfficerSale6,076$51.35$312.0KForm 4
Mar 9, 2026Flake Matthew PChief Executive OfficerSale20,613$51.35$1.1MForm 4
Mar 5, 2026Kerr Michael SGeneral CounselSale9,554$51.66$493.6KForm 4
Mar 5, 2026Rutledge Kimberly AnneChief People OfficerSale20,948$51.66$1.1MForm 4
Mar 5, 2026Breeden John EChief Delivery OfficerSale68,707$51.73$3.6MForm 4
Mar 4, 2026Mukkamala Himagiri KChief Operating OfficerSale1,793$49.75$89.2KForm 4

All 225 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Executive pay

What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.

YearExecutiveAgeSalaryTotal pay
2025Matthew P. Flake54$520.0K$11.5M70
2025Kirk L. Coleman54$450.0K$6.2M70
2025Jonathan A. Price42$439.8K$6.1M70
2025John E. Breeden53$400.0K$3.9M70
2025Himagiri Mukkamala52$406.2K$3.8M70
2024President & Chief Executive$520.0K$12.1M70
2024Chief Business Officer$450.0K$6.8M70
2024Chief Financial Officer$400.0K$5.4M70
2024Chief Delivery Officer$400.0K$4.0M70
2023Officer$520.0K$11.4M70
2023Chief Business Officer$431.1K$6.7M70
2023Chief Delivery Officer$400.0K$4.6M70
2023Chief Financial Officer$400.0K$4.0M70

Held by these funds

The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.

FundSharesValueShare of the fundChange
BlackRock, Inc.10,431,842$501.8M0.0%+395,680
Vanguard Portfolio Management LLC4,969,943$239.1M0.0%+111,104
Vanguard Capital Management LLC2,718,267$130.7M0.0%+18,005
State Street Corp2,630,263$126.5M0.0%+134,427
Tremblant Capital Group1,842,165$88.6M2.5%+139,189
Millennium Management LLC1,807,416$86.9M0.1%+1,000,867
Nomura Asset Management International Inc.1,633,414$78.6M0.1%+402,574
Geode Capital Management, LLC1,585,911$76.3M0.0%+97,707
Capital Research Global Investors1,480,035$71.2M0.0%−140,373
Victory Capital Management Inc1,433,131$68.9M0.0%+1,255,848
Conestoga Capital Advisors, LLC1,393,275$67.0M1.5%−389,440
Goldman Sachs Group Inc1,288,201$62.0M0.0%+594,507
Two Sigma Investments, LP1,202,730$57.9M0.0%+164,418
American Century Companies Inc1,129,697$54.3M0.0%+22,596
Algebris (uk) Ltd1,070,545$51.3M3.4%+374,952
Federated Hermes, Inc.1,047,134$50.4M0.1%+106,223
Dimensional Fund Advisors LP1,011,060$48.6M0.0%+1,287
Manufacturers Life Insurance Company, The997,526$48.0M0.0%+298,833
Arrowstreet Capital, Limited Partnership875,851$42.1M0.0%+359,605
Tensile Capital Management LP868,767$41.8M5.8%−21,000
William Blair Investment Management, LLC830,714$40.0M0.1%+528,580
Brown Advisory Inc824,009$39.6M0.1%+603,409
Nuveen, LLC810,573$39.0M0.0%+156,479
Jennison Associates LLC801,053$38.5M0.0%−93,696
Northern Trust Corp693,494$33.4M0.0%+41,768

13F reports cover disclosed long positions in U.S. stocks only.

Members of Congress who traded it

1 trades disclosed by members of Congress. “Vs S&P since” is the stock’s change since the trade minus the S&P 500’s.

DateMemberTradeAmountVs S&P sinceFiling
Apr 10, 2023Daniel S. GoldmanDemocratic, HouseSale$1,001 - $15,000−79.3%Report

Members report amounts as ranges, not exact figures. Returns are price-only (no dividends).

SEC filer profile

How Q2 Holdings, Inc. is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARQ2 Holdings, Inc.1
  • CIK0001410384
  • Employer ID (EIN)20-27066374
  • Filer statusLarge accelerated filer not an emerging growth company; not a smaller reporting company; not a shell company4
  • Incorporated inDelaware4
  • Fiscal year endsDecember 311
  • Industry code (SIC)7372 Services-Prepackaged Software1
  • SEC reviewing officeOffice of Technology, Division of Corporation Finance1
  • Business address10355 Pecan Park Boulevard, Austin, TX 787291
  • Phone1-833-444-34691
  • Shares outstanding62,354,695 as of Jul 29, 202611
  • Public float$5.8B as of Jun 30, 20254
  • AuditorErnst & Young LLP, Austin, Texas PCAOB ID 42; it also attests to the company’s internal control over financial reporting4
  • On EDGAR sinceAug 20, 20071
  • Filings1,524 in all: 4 (896), 144 (247), 8-K (115), SC 13G/A (44), 10-Q (38), 3 (37), 4/A (18), SC 13G (15)1
    All 43 form types

    10-K (12), DEF 14A (12), S-8 (11), CORRESP (9), 8-K/A (7), S-8 POS (7), UPLOAD (6), SCHEDULE 13G/A (5), 424B5 (4), EFFECT (4), 424B4 (3), S-1/A (3), SCHEDULE 13G (3), 8-A12B (2), D (2), DEFA14A (2), DRSLTR (2), FWP (2), S-1 (2), 10-K/A (1), 144/A (1), 3/A (1), 5 (1), CERT (1), CERTNYS (1), DRS (1), DRS/A (1), POSASR (1), PRE 14A (1), REGDEX (1), REGDEX/A (1), S-1MEF (1), S-3 (1), S-3/A (1), S-3ASR (1)

  • Latest filingsAnnual report (10-K) Feb 11, 2026
    Quarterly report (10-Q) Jul 29, 2026
    Proxy statement (DEF 14A) Apr 29, 2026
    Latest 8-K (8-K) Jul 29, 2026

Securities registered for trading

ClassSymbolExchange
Common Stock, $0.0001 par valueQTWONew York Stock Exchange
Common Stock, $0.0001 par valueQTWOCHX

From the cover page of the 10-K filed Feb 11, 2026 (Section 12(b) of the Exchange Act).4

Risk factors and legal proceedings

The risks Q2 Holdings, Inc. names in Item 1A of its 10-K filed Feb 11, 2026: 73 risks under these headings, as written.4

  • •security and privacy threats and breaches involving our solutions;
  • •the current economic environment and challenges in the financial services industry, including impacts on our customers' decisions to purchase our products and services and the related demand for our solutions relative to our expectations, including economic impacts resulting from changes to U.S. trade policy, tariff and import/export regulations;
  • •focusing on the financial services industry, and particular customer segments therein, and any geographies where we have general customer concentration and the potential for any economic downturn or consolidation in such industry, segments or geographies to adversely affect our business;
  • •the integration of our solutions with and reliance by our solutions on third-party systems or services;
  • •defects or errors in our solutions, including failures associated with transaction processing or interest, principal or balance calculations;
  • •the recently completed migration of the computing, storage and processing of our digital banking platform solutions from our third-party data centers to third-party public cloud service providers;
  • •defects, failures or interruptions in third-party services or solutions, including third-party public cloud service providers;
  • •our ability to plan for and manage our growth and scale with our new and existing customers effectively;
  • •the length, cost and unpredictability of our sales cycle;
  • •the development of our solutions and changes to the market for our solutions compared to our expectations;
  • •our ability to attract new customers and expand and renew existing customer relationships;
  • •managing challenges and costs associated with the implementation of a higher volume of or more complex configurations of our solutions;
The other 61 risks
  • •customer acceptance of and satisfaction with our existing and new solutions;
  • •the strength of our brand and reputation;
  • •intense competition in the markets we serve and challenges we face as we enter new markets or new areas of existing markets;
  • •customer training and customer support;
  • •development of our AI strategies and solutions, changes to the market for our solutions and regulatory specifications and functionality required by our customers and relevant governmental authorities;
  • •evolving technological requirements, enhancements and additions to our solution offerings, including AI;
  • •our sales and marketing capabilities, including partner relationships;
  • •our dependency on our management team and other key employees and the increased costs associated with recruiting and retaining talent;
  • •our international operations;
  • •mergers, acquisitions, divestitures or strategic investments;
  • •our revenue recognition method and the relative impacts of changes in subscription rates;
  • •quarterly fluctuations in our operating results relative to our expectations and guidance and the reliability and accuracy of our forecasts and the market data we use;
  • •our history of net operating losses and potential limitations on our ability to utilize our net operating loss carryforwards;
  • •our profit margins and the unpredictability of End-User adoption and usage, and customer implementation and support requirements;
  • •changes in financial accounting standards or practices;
  • •our ability to maintain proper and effective internal controls and produce accurate and timely financial statements;
  • •regulations applicable to us, our customers and our solutions, including evolving regulation of AI, machine learning and the receipt, collection, storage, processing and transfer of data, and the impacts of any violation of these regulations;
  • •global data privacy and security regulations;
  • •increased regulatory scrutiny and evolving requirements for money movement services and the resulting potential higher costs, increased complexity and limitations on offerings;
  • •litigation or threats of litigation;
  • •our ability to protect our intellectual property;
  • •the use of "open-source" software in our solutions;
  • •environmental, social and governance, or ESG, disclosures and evolving ESG disclosure requirements;
  • •the expenses and administrative burdens as a public company;
  • •the dilutive effects of future sales or anticipation of future sales, of our common stock and the resulting impact on the price of our common stock;
  • •unfavorable or misleading research by industry analysts;
  • •our stock price volatility and historical policy of no dividends;
  • •anti-takeover provisions in our charter documents and Delaware law;
  • •our convertible debt obligations and related capped call transactions and the related accounting treatment and our ability to secure sufficient additional financing when desired or needed on favorable terms; and
  • •our ability to obtain additional financing and potential dilution to our stockholders resulting from raising capital or using equity for acquisitions.
  • Risks Related to our Operations, Industry and the Markets We Serve
  • Unfavorable conditions or uncertainty in the financial services industry, geopolitical landscape or the global economy could limit our ability to grow our business and negatively affect our operating results.
  • We derive substantially all of our revenues from customers in the financial services industry, and in particular RCFIs, and any economic downturn or consolidation in the financial services industry, or unfavorable economic conditions affecting regions in which a significant portion of our customers are concentrated or segments of potential customers on which we focus, could harm our business.
  • If we are unable to effectively integrate our solutions with other systems or services used by our customers and prospective customers, including if we are forced to discontinue integration due to security or quality concerns with a third-party system or service, or if there are performance issues with such third-party systems or services, our solutions will not operate effectively, our operations will be adversely affected and our reputation may be harmed.
  • Defects or errors in our solutions, including failures associated with transaction processing or interest, principal or balance calculations, could harm our reputation, result in significant costs to us, impair our ability to sell our solutions and subject us to substantial liability.
  • Failures or reduced accessibility of third-party hardware, software or other services on which we rely could impair the delivery of our solutions and adversely affect our business.
  • We have migrated the computing, storage and processing of our digital banking platform solutions from our third-party data centers to third-party public cloud service providers and any challenges or difficulties with such migration could adversely affect our and our customers' business.
  • We depend on third-party public cloud service providers and third-party Internet service providers, and any disruption in the operation of these services or access to the Internet have in the past and could in the future adversely affect our business.
  • If we fail to manage our growth effectively or experience an unexpected decline in our growth rate, we may be unable to execute our business strategy, maintain high levels of service and customer satisfaction or adequately address competitive challenges, and our financial performance and operating results may be adversely affected.
  • Our sales cycle can be unpredictable, time-consuming and costly, which could harm our business and operating results.
  • If the market for our solutions develops more slowly than we expect or changes in a way that we fail to anticipate, our sales would suffer and our operating results would be harmed.
  • If we are unable to attract new customers, continue to broaden our existing customers' use of our solutions or renew existing relationships with customers or partners, our business, financial condition and results of operations could be materially and adversely affected.
  • We may encounter implementation challenges, particularly as the number, size, type and complexity of customers that we serve increases and changes, and we may have to delay revenue recognition for some complex engagements, which would harm our business and operating results.
  • Our business could be adversely affected if our customers are not satisfied with our solutions, particularly as we introduce new products and solutions, or our systems, infrastructure and resources fail to meet their needs.
  • Growth of our business depends on a strong brand and any failure to maintain, protect and enhance our brand could hurt our ability to retain or expand our base of customers.
  • The markets in which we participate are competitive, and pricing pressure, new technologies or other competitive dynamics could adversely affect our business and operating results.
  • We do not have any control over the availability or performance of salesforce.com's Force.com platform, and if we or our Symphonix lending platform customers encounter problems with it, we may be required to replace Force.com with another platform, which could be difficult and costly.
  • If we fail to provide effective customer training on our solutions and high-quality customer support, our business and reputation would suffer.
  • Consequences related to our development and use of AI may result in reputational harm or liability.
  • If we fail to respond to evolving technology, technological requirements or introduce adequate enhancements, new features or solutions, our solutions could become obsolete or less competitive.
  • If we fail to effectively maintain or expand our sales and marketing capabilities and teams, as necessary, including through partner relationships, we may not be able to increase our customer base and achieve broader market acceptance of our solutions.
  • We rely on our management team and other key employees to grow our business, and the loss of one or more key employees or an inability to hire, integrate, train and retain qualified personnel could harm our business.
  • Because our long-term success depends in part on our ability to operate our business internationally, our business is susceptible to risks associated with international operations.
  • We may acquire or invest in companies, pursue business partnerships or divest products or assets, which may divert our management's attention and present additional risks, and we may be unable to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions or investments, all of which could have a material adverse effect on our business and results of operations.
  • Financial and Accounting-Related Risks
  • Because we recognize revenues from a significant portion of our solutions over the terms of our customer agreements, the impact of changes in the subscriptions for such solutions will not be immediately reflected in our operating results, and rapid growth in our customer base may adversely affect our operating results in the short term since we expense a substantial portion of implementation costs as incurred.
  • We may experience quarterly fluctuations in our operating results or key operating measures due to a number of factors, which makes our future results difficult to predict and could cause our operating results or key operating measures to fall below expectations or our guidance.
  • We have a history of losses and may incur additional losses in the future.
  • The markets in which we compete and demands of our customers are constantly changing and it is difficult to accurately predict the long-term rate of customer subscription renewals or solution adoption, or the impact these renewals and adoption, or any customer terminations, will have on our revenues or operating results.
  • Shifts over time in the number of End Users of our solutions, their use of our solutions and our customers' implementation and customer support needs could negatively affect our profit margins.
  • The market data and forward-looking trends included in this report and other filings may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, we cannot give assurance that our business will grow at similar rates, or at all.
  • We may not be able to utilize a significant portion of our net operating loss carryforwards, which could adversely affect our operating results and cash flows.
  • Our business may be subject to additional obligations to collect and remit sales tax and other taxes, and we may be subject to tax liability for past sales. Any successful action by state, local or other authorities to collect additional or past taxes could adversely harm our business.
  • Changes in financial accounting standards or practices may cause adverse, unexpected financial reporting fluctuations and affect our reported results of operations.
  • We may not be able to secure sufficient additional financing on favorable terms, or at all, to meet our future capital needs.
  • Legal and Regulatory Risks
  • Our customers are highly regulated and subject to a number of challenges and risks. Our failure to comply with laws and regulations applicable to us as a technology provider to financial services providers and to enable our customers to comply with the laws and regulations applicable to them could adversely affect our business and results of operations, increase costs and impose constraints on the way we conduct our business.
  • Increased focus on money movement activities may subject us to additional operational, compliance and reputational risks.

Legal proceedings

From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. Our management believes that there are no claims or actions pending against us, the ultimate disposition of which would have a material impact on our business, financial condition, results of operations or cash flows.

The opening of Item 3, Legal Proceedings.4

Sources

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