Qualys (QLYS)
NASDAQ:QLYS
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Qualys
(NASDAQ:QLYS)
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Rating:73Outperform
Price Target:
$98.00
▲(11.55% Upside)
Action:ReiteratedDate:02/11/26
Score is supported primarily by strong financial performance (high margins, low leverage, and robust free cash flow) and a constructive earnings outlook despite slower growth. The main offset is weak technicals (price below major moving averages with bearish momentum), while valuation is moderate based on a ~20x P/E and no stated dividend yield.
Positive Factors
High Profitability
Qualys sustains very high gross and operating margins, reflecting a scalable cloud-subscription model and disciplined cost structure. Durable margin advantage supports reinvestment, R&D and capital returns, and provides buffer against competitive pricing pressure over the next 2–6 months.
Negative Factors
Moderating Revenue Growth Guidance
Management's guidance implies a structural slowing from the prior year. A sustained mid-single-digit growth environment could limit operating leverage and slow expansion of addressable-market share, making revenue acceleration dependent on successful product adoption and larger deal conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Qualys sustains very high gross and operating margins, reflecting a scalable cloud-subscription model and disciplined cost structure. Durable margin advantage supports reinvestment, R&D and capital returns, and provides buffer against competitive pricing pressure over the next 2–6 months.
Read all positive factors
Qualys (QLYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.08B
Dividend YieldN/A
Average Volume (3M)742.10K
Price to Earnings (P/E)22.4
Beta (1Y)0.91
Revenue Growth9.95%
EPS Growth12.72%
CountryUS
Employees2,443
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.87
Shares Outstanding35,675,926
10 Day Avg. Volume717,393
30 Day Avg. Volume742,097
Financial Highlights & Ratios
PEG Ratio1.48
Price to Book (P/B)8.56
Price to Sales (P/S)7.18
P/FCF Ratio15.78
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue4.39
Enterprise Value/Gross Profit5.30
Enterprise Value/Ebitda11.88
Forecast
1Y Price Target
$136.64Price Target Upside55.54% Upside
Rating ConsensusHold
Number of Analyst Covering16
EPS Forecast (FY)7.38
Revenue Forecast (FY)$721.21M
Qualys Business Overview & Revenue Model
Company Description
Qualys, Inc. provides cloud-based information technology (IT), security, and compliance solutions in the United States and internationally. The company offers Qualys Cloud Apps, which includes Vulnerability Management; Vulnerability Management, De...
How the Company Makes Money
Qualys primarily makes money by selling subscriptions to its cloud security platform and related applications. Revenue is generated mainly from recurring subscription fees (typically contracted on multi-month or multi-year terms) that are priced b...
Qualys Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyQualys Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call highlighted strong financial performance in 2025 — double-digit revenue growth, very high margins (47%), robust free cash flow, significant product innovation (agentic AI, ETM, Agent Val), partner momentum and disciplined capital returns (share repurchases). Management provided constructive FY2026 guidance but signaled a moderation in top-line growth to 7%–8% and outlined planned investments that modestly compress margins to the mid-40s. ETM and agentic AI are promising differentiators with early customer and partner wins, but adoption is still early and has not yet driven a material uplift in net expansion. Overall, the positives (profitability, cash generation, product differentiation and partner traction) outweigh the near-term headwinds (slower growth guidance, higher operating investments and early-stage product penetration), producing a constructive but cautious outlook.Positive Updates
Solid Revenue Growth
Full-year 2025 revenue grew 10% to $669.1 million; Q4 2025 revenue grew 10% to $175.3 million; FY2026 revenue guidance of $717M–$725M implies 7%–8% growth.
Negative Updates
Moderating Growth Outlook
Guidance for FY2026 implies revenue growth of 7%–8%, down from 10% in FY2025, signaling a deceleration versus the prior year.
Read all updates
Q4-2025 Updates
Positive
Negative
Solid Revenue Growth
Full-year 2025 revenue grew 10% to $669.1 million; Q4 2025 revenue grew 10% to $175.3 million; FY2026 revenue guidance of $717M–$725M implies 7%–8% growth.
Read all positive updates
Company Guidance
Qualys guided full-year 2026 revenue of $717 million to $725 million (growth of about 7%–8% year‑over‑year) and Q1 2026 revenue of $172.5 million to $174.5 million (growth of about 8%–9%); full‑year adjusted EBITDA margin is expected in the mid‑40s (with an implied mid‑teens increase in operating expenses) and free cash flow margin in the low‑40s, full‑year EPS $7.17–$7.45 and Q1 EPS $1.76–$1.83; planned capital expenditures are $8 million–$12 million for 2026 (Q1 capex $1.2 million–$2.6 million). Guidance assumes no material change in net dollar expansion rate (recent NDER ~103%) with moderate new‑business contribution, and the company plans to prioritize higher sales & marketing spend as a percentage of revenue with more modest increases in engineering and G&A; current billings growth is expected to be roughly in line with the revenue growth range (≈7%–8%).Qualys Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 669.13M | 607.57M | 554.46M | 489.72M | 411.17M |
| Gross Profit | 554.36M | 496.09M | 446.97M | 386.94M | 321.73M |
| EBITDA | 261.32M | 205.71M | 190.06M | 165.17M | 123.58M |
| Net Income | 198.32M | 173.68M | 151.59M | 107.99M | 70.96M |
Balance Sheet | |||||
| Total Assets | 1.10B | 973.54M | 812.62M | 700.94M | 814.56M |
| Cash, Cash Equivalents and Short-Term Investments | 445.94M | 381.42M | 425.56M | 321.33M | 405.29M |
| Total Debt | 97.23M | 47.22M | 28.74M | 42.18M | 48.52M |
| Total Liabilities | 533.93M | 496.42M | 444.44M | 411.81M | 377.85M |
| Stockholders Equity | 561.15M | 477.12M | 368.17M | 289.13M | 436.71M |
Cash Flow | |||||
| Free Cash Flow | 304.41M | 231.76M | 235.82M | 174.87M | 174.96M |
| Operating Cash Flow | 309.40M | 244.09M | 244.60M | 198.85M | 200.62M |
| Investing Cash Flow | -105.92M | -71.43M | -73.17M | 145.07M | -29.53M |
| Financing Cash Flow | -185.40M | -145.65M | -141.49M | -306.03M | -107.89M |
Qualys Technical Analysis
Negative
87.85
Price Trends
105.07
Negative
123.17
Negative
128.64
Negative
Market Momentum
-4.57
Positive
32.27
Neutral
30.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QLYS, the sentiment is Negative. The current price of 87.85 is below the 20-day moving average (MA) of 94.06, below the 50-day MA of 105.07, and below the 200-day MA of 128.64, indicating a bearish trend. The MACD of -4.57 indicates Positive momentum. The RSI at 32.27 is Neutral, neither overbought nor oversold. The STOCH value of 30.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QLYS.
Qualys Risk Analysis
Qualys disclosed 49 risk factors in its most recent earnings report. Qualys reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Qualys Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.08B | 22.39 | 37.83% | ― | 9.95% | 12.72% | |
71 Outperform | $2.33B | 8.80 | 6.07% | ― | 9.60% | ― | |
70 Outperform | $1.73B | 30.33 | 20.61% | 1.33% | 10.27% | 3.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $1.96B | -78.26 | -10.29% | ― | 11.05% | 45.23% | |
58 Neutral | $4.53B | -10.24 | -29.84% | ― | 24.09% | -34.25% | |
54 Neutral | $2.55B | -38.13 | -27.04% | ― | 11.37% | -34.44% |
* Technology Sector Average
QLYS
Qualys
86.21
-42.86
-33.21%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.