Q2 HoldingsFRA:0Q2 +9.42%58 Gross Margin % is 59.08% as of Mar. 2026, which is 22% above its 10-year median of 48.48. GuruFocus rates FRA:0Q2 with a GF Score™ of 58/100 and a GF Value™ of €62.10 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,680 Software companies, Q2 Holdings ranks better than 66.53% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Q2 Holdings's Gross Profit for the
three
months ended in Mar. 2026 was €110.6 Mil. Q2 Holdings's Revenue for the
three
months ended in Mar. 2026 was €187.3 Mil. Therefore, Q2 Holdings's Gross Margin % for the quarter that ended in Mar. 2026 was 59.08%.
The historical rank and industry rank for Q2 Holdings's Gross Margin % or its related term are showing as below:
FRA:0Q2'
s Gross Margin % Range Over the Past 10 Years
Min: 43.35 Med: 48.48 Max: 55.58
Current: 55.58
During the past 13 years, the highestGross Margin % of Q2 Holdings was 55.58%. The lowest was 43.35%. And the median was 48.48%.
FRA:0Q2's Gross Margin % is ranked better than 66.53% of 2680
companies
in the Software industry
Industry Median: 40.45
vs FRA:0Q2: 55.58
Q2 Holdings had a gross margin of 59.08% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Q2 Holdings was 4.50% per year.
Q2 Holdings (FRA:0Q2) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Q2 Holdings had a gross margin of 59.08% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Q2 Holdings Gross Margin % Related Terms
Q2 Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Q2 Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:0Q2 vs DBD, CCC, AGYS: Gross Margin % Comparison
For the Software - Application subindustry, Q2 Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Q2 Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Q2 Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Q2 Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Q2 Holdings (FRA:0Q2) has a Gross Margin % of 59.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Q2 Holdings and its competitors. This is 22% above median its historical median of 48.48. Over the past decade, Q2 Holdings' Gross Margin % has ranged from 43.35 to 55.58. According to the industry distribution chart, Q2 Holdings ranks #897 out of 2680 companies in the Software industry, placing it in the top 33.5%.
Is Q2 Holdings' Gross Margin % too high?
Q2 Holdings' current Gross Margin % of 59.08% is 22% above median its 10-year median of 48.48. Over the past 10 years, this metric has ranged from a low of 43.35 to a high of 55.58. The Software industry median Gross Margin % is 40.45. Q2 Holdings' value of 59.08% is 46.1% above this industry median. Based on the distribution chart, Q2 Holdings ranks #897 out of 2680 companies in the Software industry, which is above the industry midpoint. Overall, Q2 Holdings has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Q2 Holdings' Gross Margin % compare to DBD and CCC?
According to the Software industry distribution chart, Q2 Holdings ranks #897 out of 2680 companies for Gross Margin %. This puts Q2 Holdings in the upper half of its industry. The industry median Gross Margin % is 40.45. Q2 Holdings' value of 59.08% is 46.1% above this benchmark. Historically, Q2 Holdings' own Gross Margin % has ranged from 43.35 to 55.58 over the past decade. While the company's 10-year median is 48.48 vs. the industry median of 40.45, Q2 Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Q2 Holdings's current Gross Margin % of 59.08% is 46.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Q2 Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Q2 Holdings's current Gross Margin % is 59.08%, which is 22% above median its own 10-year median of 48.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Q2 Holdings stock overvalued right now?
Based on GuruFocus' analysis, Q2 Holdings (FRA:0Q2) is currently considered Modestly Undervalued. The stock's GF Value™ is €62.10, compared to a current price of €41.22 — trading 33.6% below its estimated fair value. The current Gross Margin % is 59.08%, which is 22% above median its 10-year median of 48.48 and 46.1% above the Software industry median of 40.45. Q2 Holdings' overall GF Score™ is 58/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Q2 Holdings (FRA:0Q2), the current Gross Margin % is 59.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Q2 Holdings (FRA:0Q2) Overvalued in 2026?
Based on GuruFocus' analysis, Q2 Holdings stock appears to be undervalued.
The current stock price of €41.22 is trading 33.6% below its estimated GF Value™ of €62.10.
GuruFocus considers Q2 Holdings to be Modestly Undervalued.
Key valuation signals for FRA:0Q2:
Gross Margin %: 59.08% (22% above median its 10-year median of 48.48)
GF Value™: €62.10 vs. price of €41.22 (33.6% below fair value)
Industry Position: 46.1% above the Software median (#897 of 2680)
No single metric tells the full story. See the FRA:0Q2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Q2 Holdings Inc provides digital solutions to financial institutions, financial technology companies, and alternative finance companies, seeking to incorporate banking into their customer engagement and servicing strategies. The company helps its clients with supervisory, consumer protection, privacy, third-party risk management requirements, and cyber threats and fraud, among other applications, by offering a portfolio of digital solutions, which comprises its digital banking offerings, digital lending and relationship pricing solutions, risk and fraud solutions, as well as Q2 Innovation Studio and Helix. Q2 derives the majority of its revenue from subscription fees for the use of its hosted solutions.
58GF Score
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