Q2 Holdings, Inc. (QTWO) FY2026 Q2 Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2026-04-01 to 2026-06-30

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Q2 Holdings, Inc. cash flow reconciliation, Apr 1, 2026 through Jun 30, 2026One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Orange marks positive customer-advance and deferred-revenue changes that add to operating cash in the reconciliation. These are net changes, not gross customer receipts. Negative changes are neutral reconciliation adjustments; they do not by themselves identify cash payments. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Net income → Net cash from operating activities: $29,858,000.00Stock-based compensation expense → Operating adjustments reconciliation: $20,558,000.00Depreciation and amortization → Operating adjustments reconciliation: $12,059,000.00Amortization of deferred implementation, solution and other costs → Operating adjustments reconciliation: $7,343,000.00Accounts payable → Operating adjustments reconciliation: $6,548,000.00Accrued liabilities → Operating adjustments reconciliation: $4,047,000.00Accounts receivable, net → Operating adjustments reconciliation: $3,740,000.00Prepaid expenses and other current assets → Operating adjustments reconciliation: $2,096,000.00Other long-term assets → Operating adjustments reconciliation: $1,291,000.00Deferred solution and other costs → Operating adjustments reconciliation: $1,241,000.00Amortization of debt issuance costs → Operating adjustments reconciliation: $361,000.00Lease restructuring and impairments → Operating adjustments reconciliation: $117,000.00Amortization of premiums and discounts on investments → Operating adjustments reconciliation: $22,000.00Operating adjustments reconciliation → Net cash from operating activities: $30,796,000.00Operating adjustments reconciliation → Deferred revenues: $16,342,000.00Operating adjustments reconciliation → Deferred implementation costs: $6,392,000.00Operating adjustments reconciliation → Contract assets, net: $2,351,000.00Operating adjustments reconciliation → Deferred rent and other long-term liabilities: $2,205,000.00Operating adjustments reconciliation → Other non-cash items: $964,000.00Operating adjustments reconciliation → Deferred income taxes: $373,000.00Maturities of investments → investing reconciliation: $30,256,000.00investing reconciliation → Net cash from investing activities: $20,474,000.00investing reconciliation → Capitalized software development costs: $7,965,000.00investing reconciliation → Purchases of property and equipment: $1,704,000.00investing reconciliation → Purchases of investments: $113,000.00Net cash used in financing activities → financing reconciliation: $323,306,000.00Proceeds from exercise of stock options and ESPP → financing reconciliation: $3,617,000.00financing reconciliation → Payment for maturity of convertible notes: $303,995,000.00financing reconciliation → Repurchases of common shares: $22,928,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $344,389,000.00Net cash from operating activities → Cash sources and uses: $60,654,000.00Net cash from investing activities → Cash sources and uses: $20,474,000.00Cash sources and uses → Exchange-rate effect: $76,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $102,135,000.00Cash sources and uses → Net cash used in financing activities: $323,306,000.00Accounts receivable, net: $3,740,000.00Accounts receivable+$3.74 MDeferred rent and other long-term liabilities: -$2,205,000.00Other operating liabilities−$2.21 MContract assets, net: -$2,351,000.00Contract assets−$2.35 MDeferred solution and other costs: $1,241,000.00Deferred solution & other costs+$1.24 MAccounts payable: $6,548,000.00Accounts payable+$6.55 MDeferred income taxes: -$373,000.00Deferred taxes & credits−$373.00 KNet income: $29,858,000.00Net income+$29.86 MAccrued liabilities: $4,047,000.00Accrued liabilities+$4.05 MDeferred implementation costs: -$6,392,000.00Deferred implementation costs−$6.39 MAmortization of debt issuance costs: $361,000.00Debt issuance cost amortization+$361.00 KPrepaid expenses and other current assets: $2,096,000.00Prepaid & other assets+$2.10 MAmortization of premiums and discounts on investments: $22,000.00Securities accretion, net+$22.00 KDepreciation and amortization: $12,059,000.00Depreciation & amortization+$12.06 MLease restructuring and impairments: $117,000.00Lease restructuring, impairments+$117.00 KDeferred revenues: -$16,342,000.00Deferred revenue−$16.34 MStock-based compensation expense: $20,558,000.00Stock-based compensation+$20.56 MAmortization of deferred implementation, solution and other costs: $7,343,000.00Deferred charges amortization+$7.34 MOther long-term assets: $1,291,000.00Other noncurrent assets+$1.29 MOther non-cash items: -$964,000.00Other non-cash items−$964.00 KNet cash from operating activities: $60,654,000.00Operating cash+$60.65 MOperating adjustments reconciliation: $59,423,000.00Proceeds from exercise of stock options and ESPP: $3,617,000.00Stock option exercises+$3.62 MRepurchases of common shares: -$22,928,000.00Common stock repurchases−$22.93 MPayment for maturity of convertible notes: -$303,995,000.00Matured convertible notes repaid−$304.00 MNet cash used in financing activities: -$323,306,000.00. Cash required to fund net payments.Financing cash−$323.31 Mfinancing reconciliation: $326,923,000.00Purchases of property and equipment: -$1,704,000.00PP&E purchases−$1.70 MPurchases of investments: -$113,000.00AFS securities purchases−$113.00 KCapitalized software development costs: -$7,965,000.00Software spending−$7.97 MMaturities of investments: $30,256,000.00AFS securities maturities+$30.26 MNet cash from investing activities: $20,474,000.00Investing cash+$20.47 Minvesting reconciliation: $30,256,000.00Cash sources and uses: $425,517,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $344,389,000.00Beginning cash$344.39 MEnding cash: Cash, cash equivalents, and restricted cash: $102,135,000.00Ending cash$102.14 MExchange-rate effect: -$76,000.00FX effect−$76.00 KCASH RECONCILIATIONOperatingflowsInvestingflowsFinancingflowsFree cash flow$58.95 MOperating cash − cash spent on PP&ECash flow / Net income2.03×Operating cash flow ÷ net incomeNet cash change−$242.25 MEnding cash − beginning cash
Chart details

Q2 Holdings, Inc. cash flow reconciliation, Apr 1, 2026 through Jun 30, 2026

Cash flows for Apr 1, 2026 through Jun 30, 2026. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Mar 31, 2026. Ending cash: Jun 30, 2026. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Mar 31, 2026
344,389,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
60,654,000 US dollars. Net cash provided.
Net income
29,858,000 US dollars
Accounts receivable, net
3,740,000 US dollars
Deferred rent and other long-term liabilities
negative 2,205,000 US dollars
Contract assets, net
negative 2,351,000 US dollars
Deferred solution and other costs
1,241,000 US dollars
Accounts payable
6,548,000 US dollars
Deferred income taxes
negative 373,000 US dollars
Accrued liabilities
4,047,000 US dollars
Deferred implementation costs
negative 6,392,000 US dollars
Amortization of debt issuance costs
361,000 US dollars
Prepaid expenses and other current assets
2,096,000 US dollars
Amortization of premiums and discounts on investments
22,000 US dollars
Depreciation and amortization
12,059,000 US dollars
Lease restructuring and impairments
117,000 US dollars
Deferred revenues
negative 16,342,000 US dollars
Stock-based compensation expense
20,558,000 US dollars
Amortization of deferred implementation, solution and other costs
7,343,000 US dollars
Other long-term assets
1,291,000 US dollars
Other non-cash items
negative 964,000 US dollars
Investing activities
20,474,000 US dollars. Net cash provided.
Purchases of property and equipment
negative 1,704,000 US dollars
Purchases of investments
negative 113,000 US dollars
Capitalized software development costs
negative 7,965,000 US dollars
Maturities of investments
30,256,000 US dollars
Financing activities
negative 323,306,000 US dollars. Net cash used.
Proceeds from exercise of stock options and ESPP
3,617,000 US dollars
Repurchases of common shares
negative 22,928,000 US dollars
Payment for maturity of convertible notes
negative 303,995,000 US dollars
Operating adjustment reconciliation
59,423,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
326,923,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
30,256,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
negative 76,000 US dollars
Ending cash on Jun 30, 2026
102,135,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
425,517,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
negative 242,254,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
2.03×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
Operating cash flow
60,654,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
1,704,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
58,950,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income enters operating cash directly in the reconciliation. The adjustment junction contributes the remaining $30.80M after reconciling the other positive and negative adjustments. These connections depict an accounting reconciliation, not traced cash receipts.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 60,654,000 US dollars minus 1,704,000 US dollars equals 58,950,000 US dollars.
Q2 Holdings, Inc. (QTWO) FY2026 Q2 Statement of Cash Flows Sankey chart
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