Q2 Holdings, Inc.

After the speaker's remarks, there will be a question and answer session. I would now like to turn the conference over to Josh Yankovitch in investor relations. Sir, please go ahead.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for our second quarter 2025 conference call. With me on the call today are Matt Flake, our CEO, Jonathan Price, our CFO, and Kurt Coleman, our president, who will join us for the Q&A portion of the call. This call contains forward-looking statements that are subject to significant risks and uncertainties, including, among other things, with respect to our expectations for the future operating and financial performance of Q2 holdings and for the financial services industry. Actual results may differ materially from those contemplated by these forward-looking statements, and we can give no assurance that such expectations or any of our forward-looking statements will prove to be correct. Important factors that could cause actual results to differ materially from those reflected in the forward-looking statements are included in our periodic reports filed with the SEC, copies of which may be found on the investor relations section of our website, including our quarterly report on Form 10Q for the second quarter of 2025 and the press release distributed this afternoon and filed in our Form 8K with the SEC regarding the financial results we will discuss today. Forward-looking statements that we make on this call are based on assumptions only as -the-date discussed. Investors should not assume that these statements will remain operative at a later time, and we undertake no obligation to update any such forward-looking statements discussed in this call. Also, unless otherwise stated, all financial measures discussed on this call other than revenue will be on a non-GAAP basis. A discussion of why we use non-GAAP financial measures and a reconciliation of the non-GAAP measures to the most comparable GAAP measures is included in our press release, which is available on the investor relations section of our website and in our Form 8K filed today with the SEC. We have also published additional materials related to today's results on our investor relations website. Let me now turn the call over to Matt.

Thanks, Josh. Good afternoon, everyone, and thanks for joining us. I'll start today's call by sharing our second quarter results and highlights from across the business. Then I'll hand it off to Jonathan to share more detail on our financial performance and updated outlook before providing final thoughts. We delivered strong financial results in the second quarter, building on the momentum we established in Q1 and continuing our execution against the priorities we outlined at the start of the year. We generated revenue of $195 million and adjusted EBITDA of $46 million, both coming in above the high end of our guidance. Revenue grew 13% year over year. Our adjusted EBITDA margin reached .5% and we generated pre-cash flow of $42 million. These results are a reflection of our execution across the business and the demand for the most efficient critical solutions we delivered to financial institutions of all sizes. Our bookings in the quarter were highlighted by six tier one wins through a mix of net new and expansion deals, further expanding our footprint among some of the largest institutions in the market. We complemented that with success in the tier two and three segments as well, which represented a meaningful portion of our bookings performance. We also had notable M&A activity amongst our customers in the quarter. We had two scenarios where an existing customer acquired another financial institution, each resulting in incremental bookings that carried the equivalent of a tier one size deal. In one case, the newly combined entity will be a top 100 U.S. bank and will expand the use of our digital banking platform and relationship pricing solutions across the bank. In the other, a commercial institution opted to retain our relationship pricing solutions and expanded their use across the newly combined entity. Because our platform is already fully trained on the bank's policies and commercial customer base, the bank saw it as a way to provide consistent pricing across their merged teams and to help their new commercial relationship managers rapidly become productive. As we've said in the past, we have tended to be the beneficiary of M&A among our customer base, and these deals underscore that dynamic. We believe expansion through M&A is a compelling potential differentiator for us, as customers in these scenarios have frequently continued to choose our technology to help them integrate smoothly, operate more efficiently, and scale post-acquisition. We also saw solid bookings results for our risk and fraud solutions, which continue to be our top cross-sale products and represented one of our tier one expansion wins from the quarter. A sign of the growing strategic importance and scale of these fraud-related deals, and as fraud tech has seen an explosion of point solutions in recent years, Innovation Studio is increasingly becoming a key differentiator in this space, not only by complementing our existing risk and fraud solutions, but also by allowing our customers to easily access, deploy, and manage many other -in-class solutions from the broader fraud tech vendor ecosystem. In the second quarter, we also hosted our annual customer conference, Connect, and the energy among the attendees was strong. The big takeaway this year was that financial institutions remain deeply focused on strategic digital initiatives, and there are several key areas where we're seeing investment and engagement accelerate, many of which were front and center at Connect. First, the level of focus on risk and fraud is very high. While the pace of change in the fraud landscape is increasing, and as I touched on a moment ago, new fraud technology vendors are emerging rapidly to solve many individual pain points across the bank, which is an increasingly complex challenge for our customers to manage from a technology and vendor management perspective. We believe Q2 has differentiated ability to help our customers manage the growing fraud challenge more holistically. The power of our platform is that we have visibility into account holder data across the entire customer lifecycle in both retail and commercial context. And because we manage the workflows, we also have the ability to intervene and stop fraud in real time, in many cases, something many point solution providers are not able to do holistically. We are also using the Innovation Studio ecosystem to give customers access to -in-class fraud solutions across a range of complementary use cases and integrate them seamlessly into their digital banking platform. This gives our financial institutions a single pane of glass to manage their fraud tech capabilities and address the fraud vendor management challenge in a more holistic, integrated, and cost-effective way. Finally, we're continuing to drive AI innovation across our product portfolio, and we believe fraud is one of the areas with the greatest near-term potential for further enhancement. For example, at Connect, we shared a recent innovation called Enhanced Payee Match, which uses artificial intelligence to detect and prevent check fraud more accurately and efficiently. We continue to see check and ACH fraud grow as a percentage of fraud attacks in the financial industry, making it a major focus area for our customers in protecting their commercial banking relationship. And based on feedback we received at Connect, I believe our customers are glad to see us driving innovation with AI to deliver even stronger fraud capabilities. Another theme from Connect was the continued demand for commercial innovation, and not just with established commercial banks, but across our customer base. What's resonating with customers is our ability to deliver retail, small business, and commercial functionality from a single platform, enabling them to scale their capabilities over time without complex conversions or migrations. We also continue to invest in solutions that help our customers compete up market for larger and more sophisticated corporate clients. At Connect, we announced a new direct ERP integration product that allows institutions to embed Q2 digital banking functionality directly into their customers' ERP systems, placing Q2 at the center of commercial reconciliation workloads. This product is designed to improve automation, enhance security, and reduce reconciliation errors while helping institutions compete for and retain large corporate customers. It's a natural evolution of our existing commercial offerings and has been very well received by early customers. And finally, Innovation Studio was central to the conversations at Connect, as it continues to be a cornerstone of our platform and a driver of measurable impact for our customers. During the conference, our customers shared a range of outcomes they're delivering through Innovation Studio across some of their most pressing and strategic initiatives. For example, one customer reduced account takeover fraud by 50% -over-year by implementing an authentication partner. Another customer is using a combination of several partners to grow deposits, citing a material increase in new deposits in just one month from a personalized CD campaign. The customers are using it to drive operational efficiencies, with one financial institution deflecting 65% or more of support traffic using AI-powered chat and messaging. Today, over 85% of our digital banking customers utilize Innovation Studio in some capacity, and we're continuing to see this adoption grow, both in volume and strategic importance. In an environment where efficiency, growth, and differentiation matter more than ever, Innovation Studio continues to help our customers do more with what they have and do it faster than ever before. As we look to the second half of the year, our pipeline remains solid and our outlook is positive. Even with our performance today, we expect the majority of enterprise and Tier 1 activity for the year to land in the back half of 2025. We remain confident with the financial framework we shared at the beginning of the year, and Jonathan will speak to our updated full-year guidance and increased outlook for 2025 in just a moment. With that, I'll turn it over to Jonathan to walk through our financials in more detail.