Is Q2 Holdings, Inc. (QTWO) Halal?

NYSE Technology United States $2.8B
✓ HALAL
Confidence: 95/100
Q2 Holdings, Inc. (QTWO) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 10.5% against the AAOIFI threshold of 30%, Q2 Holdings, Inc. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Application), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 10.5%
/ 30%
13.1%
/ 30%
1.8%
/ 30%
2.55%
/ 5%
✓ HALAL
DJIM 10.5%
/ 33%
13.1%
/ 33%
1.8%
/ 33%
2.55%
/ 5%
✓ HALAL
MSCI 27.2%
/ 33%
33.9%
/ 33%
4.7%
/ 33%
2.55%
/ 5%
✗ NOT HALAL
S&P 10.5%
/ 33%
13.1%
/ 33%
1.8%
/ 33%
2.55%
/ 5%
✓ HALAL
FTSE 27.2%
/ 33%
33.9%
/ 33%
4.7%
/ 50%
2.55%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
56.8
Forward: 13.6
EPS
$0.80
P/B Ratio
4.3
EV/EBITDA
37.0
EV: $2.7B
Revenue
$795M
Growth: 13.8%
Beta
1.5
High volatility
Current Ratio
1.0

Profitability

Gross Margin 54.1%
Operating Margin 8.2%
Net Margin 6.5%
Return on Equity (ROE) 8.8%
Return on Assets (ROA) 2.0%

Cash Flow & Balance Sheet

Operating Cash Flow$201M
Free Cash Flow$173M
Total Debt$347M
Debt-to-Equity52.3
Current Ratio1.0
Total Assets$1.3B

Price & Trading

Last Close$46.51
50-Day MA$54.29
200-Day MA$70.87
Avg Volume996K
Beta1.5
52-Week Range
$44.65
$96.68

About Q2 Holdings, Inc. (QTWO)

CEO
Mr. Matthew P. Flake
Employees
2,548
Website
Sector
Technology
Industry
Software - Application
Country
United States
Exchange
NYSE
Market Cap
$2.8B
Currency
USD

Q2 Holdings, Inc. provides digital solutions to financial institutions, financial technology companies, FinTechs, and alternative finance companies (Alt-FIs) in the United States. The company offers Digital Banking Platform, an end-to-end digital banking platform that supports its financial institution customers in their delivery of retail, SMB, and commercial functionalities across digital channels; and risk and fraud solutions that are designed to support financial institutions' efforts to protect end users, comply with regulatory requirements and manage fraud risk efficiently. It also provides Q2 Innovation Studio, an application program interface and software development kit based open technology platform that allows financial institution customers, FinTechs, and other partners to deploy customized experiences and financial services to end users; and Helix, a cloud-native, real-time core processing platform that combines the services and functionality for companies and financial institutions. In addition, the company offers digital lending and relationship pricing solutions that support financial institutions, FinTechs and Alt-FIs in managing lending workflows, pricing strategies and customer relationships across commercial and consumer use cases, as well as offers loans, deposits and fee-based products. The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.

Purification Calculator

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Frequently Asked Questions

Is Q2 Holdings, Inc. (QTWO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Q2 Holdings, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Q2 Holdings, Inc.'s debt ratio?

Q2 Holdings, Inc.'s debt ratio is 10.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 27.2%.

Does Q2 Holdings, Inc. require dividend purification?

Yes, Q2 Holdings, Inc. has an impermissible income ratio of 2.55%, which means 2.55% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Q2 Holdings, Inc.'s key financial metrics?

Q2 Holdings, Inc. has a market capitalization of $2.8B, trailing P/E ratio of 56.8, and revenue of $795M. The company maintains a gross margin of 54.1% and a net margin of 6.5%. Return on equity stands at 8.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.