"We delivered a strong finish to the year with performance that reflects solid execution across bookings, revenue and profitability." (CEO)
"2025 was our strongest year as a company across bookings, revenue and profitability." (CEO)
"We feel great about our momentum and pipeline, and we're confident in our ability to continue executing in 2026 and beyond." (CEO)
"We believe Q2 is uniquely well positioned to meet this moment [in fraud mitigation]." (CEO)
"We believe AI innovation within financial services will flow through Q2, not around us." (CEO)
Q&A Batch (6-10 of 11)
Q6 — Matthew VanVliet
Topic: AI monetization via Innovation Studio vs. platform value
Key points:
Innovation Studio uses a revenue-sharing model already in place.
Banks are steering AI companies to QTWO, reinforcing QTWO as the gateway.
QTWO is building AI products for internal efficiency and customer efficiency.
Mgmt stance: Bullish — trust built over 20+ years in a highly regulated environment positions QTWO to capitalize on AI opportunities.
Q7 — Matthew Kikkert
Topic: Banking M&A landscape impact on 2026 guidance
Key points:
M&A is picking up; historically, QTWO is the surviving entity 93% of the time.
Customers over $5B now number up to 200; 50% of top 100 banks are QTWO customers.
2026 guidance includes known M&A deals (booked or closed); hypothetical M&A is not modeled and would be upside.
Mgmt stance: Bullish — conviction in 2026 guide; most M&A outcomes expected to be upside, and any negative outcome can be absorbed within the framework.
Q8 — Michael Infante
Topic: Customer tech spend trends and agentic AI strategy
Key points:
Vendor consolidation occurred in 2022-2023 due to rapid rate hikes; QTWO was a net beneficiary in bookings from H2 2023 through 2025.
Customers are conservative and start with compliance; they come to QTWO for guidance on agentic AI.
QTWO’s “system of context” (data on transaction flows, user behavior, integrations) enables real-time decision-making and agentic AI opportunities.
Mgmt stance: Bullish — AI is a tailwind; QTWO is well-positioned to capitalize as customers seek secure, compliant solutions.
Q9 — Charles Nabhan
Topic: Non-subscription revenue outlook and Innovation Studio monetization
Key points:
Combined services and transactional revenue expected to decline in mid-single-digit range for 2026 and 2027, and for the foreseeable future.
2025 upswing was driven by M&A core conversions from a low base; no growth expected off elevated 2025 levels.
Innovation Studio has high margin profile; adoption of FIs and products increased significantly in 2025.
Mgmt stance: Bullish on Innovation Studio — it is a core platform element, revenue/margin contributor, and key to capturing AI opportunities; cautious on non-subscription — expects continued mid-single-digit decline.
Q10 — Matthew Inglis
Topic: Cloud migration cost savings cadence and magnitude in 2026
Key points:
2026 gross margin expectation is north of 60%, a significant step-up from Q4 2025 and full-year 2025.
Cloud migration is complete for customer migrations; fully complete in all facets by Q1 2026 or sooner.
Data center-related costs rolling off P&L are the biggest driver of the 2026 gross margin step-up.
Beyond 2027, further gross margin opportunity from optimizing cloud elasticity and cost in AWS.
Mgmt stance: Bullish — confident in achieving 2026 gross margin target; sees additional step-function opportunity in 2027+ from cloud optimization.