Profitability
Weight: 25%
D-
32
- 5yr Avg ROIC -3.3%
- Operating Margin Trend +5.52 pp/yr
QTWO
Q2 Holdings, Inc.
AlphaQuality composite grade, weighted for platform & compounding fcf businesses.
⚠ 4 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a platform & compounding fcf business.
Grade overrides the 30.0 pillar composite — hard gates always win.
Capital Efficiency
Weight: 15%
F
1
- 5yr Avg ROE -12.0%
- 5yr Share-Count CAGR 4.6%
Growth Quality
Weight: 25%
A
93
- 5yr Revenue CAGR 14.6%
- Revenue-Growth Years (5) 5/5
Cash Generation
Weight: 20%
B-
68
- 5yr FCF Margin 10.3%
- 5yr FCF/NI Conversion 3.74x
Balance Sheet
Weight: 10%
A
93
- Net Debt / EBITDA -0.16x
- Interest Coverage (EBIT/Int) 11.12x
- Altman Z-Score 4.01
Stability
Weight: 5%
A
88
- Negative-Revenue Years (5) 0/5
- Piotroski F-Score 7
Guru Flow
Curated superinvestor sentiment — not part of the AlphaQuality grade.4 of 5 gurus held; 2 added; 1 trimmed; 1 full exit.
- Holders
- 4 -1
- Avg Δ position
- +33.7%
- New buys
- 0
- Full exits
- 1
- Wood sold -100%
- Dalio increased +121%
- Greenblatt increased +22%