Recent News
On November 5, 2025 Q2 announced a $150 million share repurchase authorization alongside its third-quarter results; the company also highlighted continued margin expansion and improved cash generation. In October–November 2025 Q2 received recognition as a Leader in the IDC MarketScape for North American retail digital banking solutions and announced the 2025 Q‑munity Gives grant recipients. Q2 scheduled investor calls to review quarterly results and outlook during the fall reporting cycle.
Technical Analysis
ADX / DI+/DI-: ADX at 29.26 signals a strong underlying trend in place. DI+ sits at 24.47 and shows a decreasing trajectory, which reads as a directional weakening of upside strength; DI- at 15.50 also trends downward, which indicates falling downside pressure. The combination implies trend strength persists but directional conviction recently faded, placing the stock in a regime where momentum can pivot quickly.
MACD: MACD equals 1.22 with a signal line at 1.00, placing the oscillator above its signal; however, the MACD trend displays a peak-and-reversal, which signals bearish momentum development despite the current above-signal placement. Expect momentum to carry a bearish bias unless MACD re-accelerates higher.
MRO (Momentum/Regression Oscillator): MRO reads 21.89 and shows a dip-and-reversal. The positive MRO indicates price sits above the regression target and therefore faces mean-reversion pressure, while the dip-and-reversal pattern signals recent re-acceleration of the oscillator that could moderate near-term downside pressure.
RSI: RSI at 48.54 with an increasing trend places momentum near equilibrium and tilting upward; the trajectory supports a stabilizing, slightly bullish bias for intramonth price action provided other momentum indicators stop weakening.
Price vs Moving Averages and Bands: Last close at $71.01 sits just below the 20‑day average of $71.40 and above the 50‑day average of $67.20; the 12‑day EMA shows a peak-and-reversal, which aligns with the MACD warning. Bollinger upper/lower 1x bands sit near $72.74/$70.05, placing current price inside the 1x band range and indicating limited immediate volatility expansion. The 200‑day average at $79.25 remains a longer-term resistance reference.
Structural measures: 42‑day beta of 0.27 versus a 52‑week beta of 1.36 suggests short-term volatility compressed relative to the year-long profile; volume measures show current traded volume below short- and long-term averages, consistent with low conviction in recent directional moves.
Fundamental Analysis
Revenue and growth: Total revenue stands at $201,704,000 with reported revenue growth of 3.36% and a year‑over‑year revenue growth figure of 172.51%. Quarter-over-quarter revenue expanded by 17.77%, reflecting accelerating top-line activity ahead of the quarter close.
Profitability and margins: EBIT equals $16,491,000 producing an EBIT margin of 8.18%; EBIT margin improved QoQ by 7.49% but shows a YoY change of -274.89% in the supplied figure. Gross margin at 53.96% and operating margin at 5.85% reflect improved unit economics, while adjusted EBITDA at $30,104,000 supports stronger cash generation versus prior periods.
Cash flow and liquidity: Operating cash flow reached $45,593,000 and free cash flow measured $37,250,000, yielding a free cash flow yield of 0.84% and a free cash flow to net income ratio of 2.48x. Cash and short‑term investments total $568,734,000 with a cash ratio of 0.78, providing liquidity to fund share repurchases and strategic investments.
Leverage and capital structure: Total debt equals $539,084,000 with debt to assets of 37.79% and debt to EBITDA near 17.91x, indicating leverage elevated relative to earnings capacity; net debt sits at $21,540,000. Interest coverage near 12.85x indicates the company covers interest expense comfortably today, though debt-to-EBITDA highlights sensitivity to EBITDA shifts.
Returns: Return on equity registers 2.42% and return on assets 1.07%, while return on invested capital clocks 1.46% — all modest absolute returns that improved QoQ according to supplied QoQ lift metrics.
Valuation context: Price multiples show a PE of 110.39x, P/S of 21.89x and P/B of 7.09x; the enterprise multiple sits at 145.71x. WMDST values the stock as under‑valued, a view that reflects the company’s cash generation improvements and margin expansion despite high multiples and elevated leverage. When compared to the industry peer mean and median, EBIT margin at 8.18% sits below the industry peer mean of 25.98% and industry peer median of 27.59%, while P/B of 7.09x sits below the industry peer mean of 15.08x and the PEG ratio of 4.78x falls below the industry peer mean PEG of 6.61x, indicating relative valuation nuances within peer ranges.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 416.0 M |
| Operating Cash Flow | $ 45.6 M | |
| Capital Expenditures | $ -8.34 M | |
| Change In Working Capital | $ -15.08 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 58.5 M | |
| End Period Cash Flow | $ 474.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 201.7 M | |
| Forward Revenue | $ 106.3 M | |
| COSTS | ||
| Cost Of Revenue | $ 92.9 M | |
| Depreciation | $ 13.6 M | |
| Depreciation and Amortization | $ 13.6 M | |
| Research and Development | $ 38.9 M | |
| Total Operating Expenses | $ 189.9 M | |
| PROFITABILITY | ||
| Gross Profit | $ 108.8 M | |
| EBITDA | $ 30.1 M | |
| EBIT | $ 16.5 M | |
| Operating Income | $ 11.8 M | |
| Interest Income | $ 5.5 M | |
| Interest Expense | $ 1.3 M | |
| Net Interest Income | $ 4.2 M | |
| Income Before Tax | $ 15.2 M | |
| Tax Provision | $ 160.0 K | |
| Tax Rate | 1.052 % | |
| Net Income | $ 15.0 M | |
| Net Income From Continuing Operations | $ 15.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.56 | |
| EPS Actual | $ 0.64 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 14.286 % | |
| Forward EPS | $ 0.51 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.4 B | |
| Intangible Assets | $ 595.2 M | |
| Net Tangible Assets | $ 27.7 M | |
| Total Current Assets | $ 707.3 M | |
| Cash and Short-Term Investments | $ 568.7 M | |
| Cash | $ 472.4 M | |
| Net Receivables | $ 69.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 2.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 8.1 M | |
| Short-Term Debt | $ 493.9 M | |
| Total Current Liabilities | $ 731.6 M | |
| Net Debt | $ 21.5 M | |
| Total Debt | $ 539.1 M | |
| Total Liabilities | $ 803.8 M | |
| EQUITY | ||
| Total Equity | $ 622.9 M | |
| Retained Earnings | $ -632.66 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 9.96 | |
| Shares Outstanding | 62.510 M | |
| Revenue Per-Share | $ 3.23 | |
| VALUATION | Market Capitalization | $ 4.4 B |
| Enterprise Value | $ 4.4 B | |
| Enterprise Multiple | 145.714 | |
| Enterprise Multiple QoQ | -19.722 % | |
| Enterprise Multiple YoY | -67.837 % | |
| Enterprise Multiple IPRWA | high: 725.943 QTWO: 145.714 median: 119.829 mean: 108.166 low: -500.562 |
|
| EV/R | 21.748 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.29 | |
| Asset To Liability | 1.775 | |
| Debt To Capital | 0.464 | |
| Debt To Assets | 0.378 | |
| Debt To Assets QoQ | -2.939 % | |
| Debt To Assets YoY | 4361.039 % | |
| Debt To Assets IPRWA | high: 1.164 QTWO: 0.378 mean: 0.258 median: 0.199 low: 0.001 |
|
| Debt To Equity | 0.865 | |
| Debt To Equity QoQ | -6.231 % | |
| Debt To Equity YoY | 3873.646 % | |
| Debt To Equity IPRWA | high: 2.803 QTWO: 0.865 mean: 0.496 median: 0.188 low: -0.893 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.09 | |
| Price To Book QoQ | -19.513 % | |
| Price To Book YoY | -25.096 % | |
| Price To Book IPRWA | high: 32.156 mean: 15.076 median: 13.004 QTWO: 7.09 low: -17.466 |
|
| Price To Earnings (P/E) | 110.388 | |
| Price To Earnings QoQ | -77.694 % | |
| Price To Earnings YoY | -37.4 % | |
| Price To Earnings IPRWA | high: 535.496 mean: 156.691 median: 141.334 QTWO: 110.388 low: -396.374 |
|
| PE/G Ratio | 4.783 | |
| Price To Sales (P/S) | 21.895 | |
| Price To Sales QoQ | -16.992 % | |
| Price To Sales YoY | -18.233 % | |
| Price To Sales IPRWA | high: 95.267 median: 42.816 mean: 41.66 QTWO: 21.895 low: 1.307 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 159.654 | |
| Forward PE/G | 6.918 | |
| Forward P/S | 41.542 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.305 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.143 | |
| Asset Turnover Ratio QoQ | 0.533 % | |
| Asset Turnover Ratio YoY | 3.35 % | |
| Asset Turnover Ratio IPRWA | high: 0.414 QTWO: 0.143 median: 0.131 mean: 0.131 low: -0.008 |
|
| Receivables Turnover | 3.098 | |
| Receivables Turnover Ratio QoQ | -2.42 % | |
| Receivables Turnover Ratio YoY | 3.879 % | |
| Receivables Turnover Ratio IPRWA | high: 5.238 QTWO: 3.098 mean: 1.697 median: 1.571 low: -0.167 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 29.451 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 22.265 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 226.004 median: 44.35 mean: 24.176 QTWO: 22.265 low: -144.827 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -8.272 | |
| CapEx To Revenue | -0.041 | |
| CapEx To Depreciation | -0.613 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 622.9 M | |
| Net Invested Capital | $ 1.1 B | |
| Invested Capital | $ 1.1 B | |
| Net Tangible Assets | $ 27.7 M | |
| Net Working Capital | $ -24.38 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.777 | |
| Current Ratio | 0.967 | |
| Current Ratio QoQ | 7.295 % | |
| Current Ratio YoY | -61.284 % | |
| Current Ratio IPRWA | high: 8.127 mean: 2.045 median: 1.124 QTWO: 0.967 low: 0.159 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 17.907 | |
| Cost Of Debt | 0.235 % | |
| Interest Coverage Ratio | 12.853 | |
| Interest Coverage Ratio QoQ | 16.558 % | |
| Interest Coverage Ratio YoY | -312.68 % | |
| Interest Coverage Ratio IPRWA | high: 205.936 mean: 16.455 QTWO: 12.853 median: 9.798 low: -243.016 |
|
| Operating Cash Flow Ratio | 0.029 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 7.186 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.98 % | |
| Revenue Growth | 3.36 % | |
| Revenue Growth QoQ | 17.771 % | |
| Revenue Growth YoY | 172.506 % | |
| Revenue Growth IPRWA | high: 28.215 % mean: 4.799 % median: 4.092 % QTWO: 3.36 % low: -8.913 % |
|
| Earnings Growth | 23.077 % | |
| Earnings Growth QoQ | -85.315 % | |
| Earnings Growth YoY | 46.159 % | |
| Earnings Growth IPRWA | high: 200.0 % QTWO: 23.077 % median: 12.791 % mean: 8.531 % low: -181.25 % |
|
| MARGINS | ||
| Gross Margin | 53.963 % | |
| Gross Margin QoQ | 0.711 % | |
| Gross Margin YoY | 6.049 % | |
| Gross Margin IPRWA | high: 90.981 % median: 77.558 % mean: 76.442 % QTWO: 53.963 % low: 26.432 % |
|
| EBIT Margin | 8.176 % | |
| EBIT Margin QoQ | 7.494 % | |
| EBIT Margin YoY | -274.888 % | |
| EBIT Margin IPRWA | high: 76.323 % median: 27.593 % mean: 25.981 % QTWO: 8.176 % low: -105.646 % |
|
| Return On Sales (ROS) | 5.854 % | |
| Return On Sales QoQ | 19.25 % | |
| Return On Sales YoY | -225.219 % | |
| Return On Sales IPRWA | high: 76.795 % median: 27.538 % mean: 24.472 % QTWO: 5.854 % low: -133.444 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 37.2 M | |
| Free Cash Flow Yield | 0.843 % | |
| Free Cash Flow Yield QoQ | 4.074 % | |
| Free Cash Flow Yield YoY | 12.55 % | |
| Free Cash Flow Yield IPRWA | high: 10.114 % QTWO: 0.843 % median: 0.259 % mean: 0.258 % low: -10.76 % |
|
| Free Cash Growth | -10.663 % | |
| Free Cash Growth QoQ | -204.396 % | |
| Free Cash Growth YoY | -148.323 % | |
| Free Cash Growth IPRWA | high: 368.524 % QTWO: -10.663 % mean: -16.203 % median: -18.341 % low: -324.945 % |
|
| Free Cash To Net Income | 2.475 | |
| Cash Flow Margin | 10.462 % | |
| Cash Flow To Earnings | 1.402 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.07 % | |
| Return On Assets QoQ | 24.419 % | |
| Return On Assets YoY | -214.316 % | |
| Return On Assets IPRWA | high: 13.583 % mean: 2.951 % median: 1.859 % QTWO: 1.07 % low: -19.283 % |
|
| Return On Capital Employed (ROCE) | 2.373 % | |
| Return On Equity (ROE) | 0.024 | |
| Return On Equity QoQ | 20.02 % | |
| Return On Equity YoY | -201.385 % | |
| Return On Equity IPRWA | high: 0.151 mean: 0.051 median: 0.047 QTWO: 0.024 low: -0.395 |
|
| DuPont ROE | 2.493 % | |
| Return On Invested Capital (ROIC) | 1.461 % | |
| Return On Invested Capital QoQ | 21.75 % | |
| Return On Invested Capital YoY | -10.258 % | |
| Return On Invested Capital IPRWA | high: 14.226 % mean: 3.638 % median: 3.209 % QTWO: 1.461 % low: -12.344 % |
|