Q2 Holdings (FRA:0Q2) Moat Score: 5/10 (As of Jul. 06, 2026)


FRA:0Q2 Q2 Holdings Inc FRA:0Q2
62 GF Score
Price €44.89
GF Value €60.78
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Q2 Holdings Moat Score?

Q2 Holdings FRA:0Q2 +4.25% 62 Moat Score is 5 as of Jul. 06, 2026. GuruFocus rates FRA:0Q2 with a GF Score™ of 62/100 and a GF Value™ of €60.78 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,837 Software companies, Q2 Holdings ranks better than 94.78% on this metric.

Q2 Holdings has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Q2 Holdings has Narrow Moat: Q2 Holdings Inc benefits from network effects and customer switching costs in the financial software sector. It has a solid brand and customer loyalty among regional banks and credit unions. However, the competitive landscape and moderate pricing power limit its moat to a solid narrow category.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Q2 Holdings might have Narrow Moat - Solid narrow moat.

Q2 Holdings  (FRA:0Q2) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Q2 Holdings Moat Score Related Terms

FRA:0Q2 vs DBD, CCC, AGYS: Moat Score Comparison

For the Software - Application subindustry, Q2 Holdings's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Software Industry

For the Software industry and Technology sector, Q2 Holdings's Moat Score distribution charts can be found below:

* The bar in red indicates where Q2 Holdings's Moat Score falls into.


FRA:0Q2
62GF Score
Q2 Holdings Inc FRA:0Q2
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Q2 Holdings (FRA:0Q2) has a Moat Score of 5 as of Jul. 06, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Q2 Holdings ranks #148 out of 2837 companies in the Software industry, placing it in the top 5.2%.
Is Q2 Holdings' Moat Score too high?
Q2 Holdings' current Moat Score is 5. Based on the distribution chart, Q2 Holdings ranks #148 out of 2837 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Q2 Holdings has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Q2 Holdings' Moat Score compare to DBD and CCC?
According to the Software industry distribution chart, Q2 Holdings ranks #148 out of 2837 companies for Moat Score. This places Q2 Holdings in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Q2 Holdings's current Moat Score is 5. 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 €60.78, compared to a current price of €44.89 — trading 26.1% below its estimated fair value. The current Moat Score is 5. Q2 Holdings' overall GF Score™ is 62/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Q2 Holdings (FRA:0Q2), the current Moat Score is 5 as of Jul. 06, 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 €44.89 is trading 26.1% below its estimated GF Value™ of €60.78. GuruFocus considers Q2 Holdings to be Modestly Undervalued.

Key valuation signals for FRA:0Q2:

  • Moat Score: 5
  • GF Value™: €60.78 vs. price of €44.89 (26.1% below fair value)
  • GF Score™: 62/100 with 4 warning signs

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 Business Description

Other Exchanges QTWO:USAQTWO:Mexico
Address 10355 Pecan Park Boulevard, Austin, TX, USA, 78729
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.
62GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€44.89
Price
€60.78
GF Value