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Qualys Inc (QLYS)
:QLYS
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Qualys (QLYS) AI Stock Analysis

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QLYS

Qualys

(NASDAQ:QLYS)

Rating:75Outperform
Price Target:
$157.00
▲(12.83%Upside)
Qualys' strong financial position and positive earnings call drive its overall score. While the valuation is moderately high, the company's consistent growth and solid financial health support its potential for future expansion. The technical analysis suggests a cautious approach, but overall, Qualys remains a strong candidate in its industry.
Positive Factors
Earnings
A significant emphasis on cost discipline is expected to result in a positive impact on earnings per share.
Federal Opportunities
Qualys continues to be bullish on the Federal opportunity with the impending influx of FedRAMP High certifications creating a positive catalyst.
Partnerships
Management's commitment to leveraging the partner ecosystem is expected to drive growth, with sales through partners significantly outpacing direct sales.
Negative Factors
Competitive Pressures
Despite solid performance, there is hesitation due to concerns about competitive pressures in QLYS' core markets.
Demand Environment
The challenging demand environment, fueled by DOGE and tariff uncertainties, is expected to continue impacting the upsell environment and capping net dollar expansion rates.
Macroeconomic Uncertainty
Incremental revenue from new customers is expected to face more pressure with an uptick in macroeconomic uncertainty.

Qualys (QLYS) vs. SPDR S&P 500 ETF (SPY)

Qualys Business Overview & Revenue Model

Company DescriptionQualys, 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, Detection and Response; Threat Protection; Continuous Monitoring; Patch Management; Multi-Vector Endpoint Detection and Response; Certificate Assessment; SaaS Detection and Response; Secure Enterprise Mobility; Policy Compliance; Security Configuration Assessment; PCI Compliance; File Integrity Monitoring; Security Assessment Questionnaire; Out of-Band Configuration Assessment; Web Application Scanning; Web Application Firewall; Global Asset Inventory; Cybersecurity Asset Management; Certificate Inventory; Cloud Inventory; Cloud Security Assessment; and Container Security. Its integrated suite of IT, security, and compliance solutions delivered on its Qualys Cloud Platform enables customers to identify and manage IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend and implement remediation actions, and verify the implementation of such actions. The company also provides asset tagging and management, reporting and dashboards, questionnaires and collaboration, remediation and workflow, big data correlation and analytics engine, and alerts and notifications, which enable integrated workflows, management and real-time analysis, and reporting across IT, security, and compliance solutions. The company offers its solutions through its sales teams, as well as through its network of channel partners, such as security consulting organizations, managed service providers, resellers, and consulting firms. It serves enterprises, government entities, and small and medium-sized businesses in various industries, including education, financial services, government, healthcare, insurance, manufacturing, media, retail, technology, and utilities. The company was incorporated in 1999 and is headquartered in Foster City, California.
How the Company Makes MoneyQualys generates revenue primarily through subscription fees for its cloud-based security services. The company's revenue model is centered on offering Software-as-a-Service (SaaS) solutions that provide continuous monitoring and protection of IT assets. Customers pay subscription fees based on the number of devices or IP addresses monitored, the type of services used, and the contract duration. Qualys benefits from a recurring revenue model, with customers typically signing multi-year contracts, which provides a stable and predictable revenue stream. Additionally, strategic partnerships with managed service providers, resellers, and technology integrators enhance its market reach and contribute to revenue growth.

Qualys Key Performance Indicators (KPIs)

Any
Any
Customers Over $500,000 in Annual Revenue
Customers Over $500,000 in Annual Revenue
Tracks the number of high-value customers contributing significant revenue, indicating the company's success in securing and maintaining large accounts.
Chart InsightsQualys has seen a consistent increase in customers generating over $500,000 annually, nearly doubling since mid-2019. This growth reflects strong demand for their cybersecurity solutions. However, the slight dip in early 2025 suggests potential challenges in maintaining this momentum, possibly due to market saturation or competitive pressures. Investors should watch for strategic initiatives to sustain growth and address these headwinds.
Data provided by:Main Street Data

Qualys Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 9.72%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced outlook with notable achievements in product innovation, channel growth, and key customer wins, offset by macroeconomic challenges and a cautious revenue growth outlook.
Q1-2025 Updates
Positive Updates
Better-than-Expected Revenue Growth
Qualys reported a 10% increase in revenue to $159.9 million, surpassing expectations for the quarter.
Increased Channel Contribution
The channel contributed 49% of total revenues, up from 45% a year ago, with channel partner revenue growing by 19%.
Strong Profitability and Cash Flow
Adjusted EBITDA for Q1 2025 was $74.8 million, representing a 47% margin, in line with last year. Free cash flow was $107.6 million, representing a 67% margin, up from 57% in the prior year.
New Product Innovations
Qualys expanded its TotalAI and TruRisk capabilities and launched new solutions like Policy Audit and Audit Fix to streamline audit operations.
High-Value Customer Wins
Qualys secured a seven-figure annual booking deal with a Global 100 media company and a Global 50 financial services company.
Negative Updates
Macro-Economic Uncertainty
Increased budget scrutiny and a challenging upsell environment were noted, with net dollar expansion rate stagnant at 103%.
Slow Growth in Direct Revenue
Direct revenue grew by only 2%, lagging behind the 19% growth in channel partner revenue.
Reduced FY Revenue Growth Guidance
Qualys expects full-year 2025 revenue growth to be in the range of 7% to 8%, a reduction from prior guidance of 6% to 8%.
Company Guidance
During Qualys' first quarter 2025 earnings call, the company provided detailed financial guidance for the year ahead. They anticipate full-year 2025 revenues between $648 million and $657 million, reflecting a growth rate of 7% to 8%. For the second quarter, projected revenues are set between $159.7 million and $162.7 million, marking an expected growth of 7% to 9%. The adjusted EBITDA margin for the year is forecasted to be in the low-to-mid 40s, with operating expenses expected to grow by 15% to 17%. Earnings per share (EPS) for the full year are projected to be in the range of $6 to $6.3, an increase from the previous guidance of $5.5 to $5.9. Capital expenditures for 2025 are planned to be between $8 million and $11 million. The company also highlighted significant growth in its channel partner contributions, which made up 49% of total revenues, and saw a 19% increase in revenues from channel partners, outpacing direct revenue growth of 2%.

Qualys Financial Statement Overview

Summary
Qualys demonstrates strong financial health with impressive revenue growth and high profit margins. The balance sheet is solid with low leverage, and cash flow performance is exceptional, indicating strong liquidity and financial flexibility. However, there is room for improvement in operational efficiency.
Income Statement
85
Very Positive
Qualys has demonstrated strong revenue growth, with a significant increase from $489.7 million in 2022 to $622.0 million in TTM (Trailing-Twelve-Months). The company maintains robust gross profit margins above 80% consistently, indicating efficient cost management. Net profit margins are healthy, and EBITDA margins exceed 30%, reflecting good profitability. The trajectory of revenue and profit growth is promising, although the EBIT margin suggests room for operational efficiency improvements.
Balance Sheet
80
Positive
The balance sheet is solid, characterized by a low debt-to-equity ratio of approximately 0.10 in TTM (Trailing-Twelve-Months), illustrating conservative leverage. The return on equity (ROE) is impressive, indicating effective use of equity capital to generate profits. The equity ratio is respectable, reflecting a strong capital base relative to assets. Overall, financial stability is robust, with potential for further leveraging equity to boost growth.
Cash Flow
88
Very Positive
Cash flow performance is exceptional, with consistent growth in free cash flow, evidencing effective cash management. The operating cash flow to net income ratio is robust, suggesting strong operational cash generation relative to profits. The free cash flow to net income ratio further underscores efficient cash conversion. These metrics indicate strong liquidity and financial flexibility, positioning Qualys well for future investments and growth opportunities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue607.57M554.46M489.72M411.17M362.96M
Gross Profit496.09M446.97M386.94M321.73M283.74M
EBITDA205.71M190.06M168.32M125.29M134.89M
Net Income173.68M151.59M107.99M70.96M91.57M
Balance Sheet
Total Assets973.54M812.62M700.94M814.56M736.82M
Cash, Cash Equivalents and Short-Term Investments381.42M425.56M321.33M405.29M356.02M
Total Debt47.22M28.74M42.18M48.52M57.37M
Total Liabilities496.42M444.44M411.81M377.85M332.34M
Stockholders Equity477.12M368.17M289.13M436.71M404.48M
Cash Flow
Free Cash Flow231.76M235.82M174.87M174.96M150.05M
Operating Cash Flow244.09M244.60M198.85M200.62M180.09M
Investing Cash Flow-71.43M-73.17M145.07M-29.53M-80.93M
Financing Cash Flow-145.65M-141.49M-306.03M-107.89M-112.58M

Qualys Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price139.15
Price Trends
50DMA
139.86
Negative
100DMA
133.08
Positive
200DMA
136.30
Positive
Market Momentum
MACD
-0.10
Positive
RSI
47.38
Neutral
STOCH
66.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QLYS, the sentiment is Neutral. The current price of 139.15 is below the 20-day moving average (MA) of 141.81, below the 50-day MA of 139.86, and above the 200-day MA of 136.30, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 66.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$5.10B28.6840.23%9.58%12.41%
74
Outperform
$1.34B28.635.32%-2.09%76.96%
67
Neutral
$4.09B-12.09%11.79%35.35%
64
Neutral
$5.80B-22.21%13.34%13.71%
64
Neutral
$6.48B-26.98%32.25%20.56%
63
Neutral
$34.70B4.89-11.39%1.66%5.53%-19.00%
58
Neutral
$1.47B57.26164.75%6.19%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QLYS
Qualys
139.15
-5.31
-3.68%
VRNT
Verint Systems
22.12
-13.34
-37.62%
VRNS
Varonis Systems
53.38
6.47
13.79%
RPD
Rapid7
22.53
-17.20
-43.29%
TENB
Tenable Holdings
33.07
-9.83
-22.91%
S
SentinelOne
19.47
-3.64
-15.75%

Qualys Corporate Events

Executive/Board ChangesShareholder Meetings
Qualys Annual Meeting Approves Key Amendments
Neutral
Jun 16, 2025

On June 11, 2025, Qualys held its Annual Meeting where approximately 91.70% of the shares were represented. During the meeting, stockholders elected Class I directors, ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm, approved executive compensation, and sanctioned an amendment to the company’s certificate of incorporation to permit the exculpation of certain officers.

The most recent analyst rating on (QLYS) stock is a Sell with a $120.00 price target. To see the full list of analyst forecasts on Qualys stock, see the QLYS Stock Forecast page.

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.Date of analysis: Jul 18, 2025