Qualys (QLYS)
NASDAQ:QLYS
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Qualys
(NASDAQ:QLYS)
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Rating:76Outperform
Price Target:
$107.00
▲(28.65% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial quality (best-in-class margins, strong ROE, low leverage) and a reasonable P/E. It is tempered by clear growth/expansion risks (TTM revenue growth deceleration and flat NRR) plus a mixed technical picture (near-term rebound but still below longer-term moving averages). Earnings-call guidance supports steady growth, but declining cash-flow margin and higher investment levels add near-term execution risk.
Positive Factors
High margins & profitability
Sustained, high gross and net margins reflect a scalable cloud‑SaaS cost structure and strong pricing power across security modules. Durable profitability supports reinvestment, share repurchases and high ROE, providing resilience through slower top‑line cycles and funding product innovation.
Negative Factors
Revenue growth deceleration
Revenue growth has materially slowed from multi‑year trends, suggesting the core vulnerability/asset discovery market is maturing and that new product monetization must accelerate to restore top‑line expansion. Slower revenue raises sensitivity to execution and competitive pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & profitability
Sustained, high gross and net margins reflect a scalable cloud‑SaaS cost structure and strong pricing power across security modules. Durable profitability supports reinvestment, share repurchases and high ROE, providing resilience through slower top‑line cycles and funding product innovation.
Read all positive factors
Qualys Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows where Qualys earns its sales across regions, revealing which markets drive growth and which expose the company to economic, regulatory, or currency risk. Heavy concentration in one region can mean dependence on that market, while rising international revenue signals expansion opportunity and broader addressable market.
Shows where Qualys earns its sales across regions, revealing which markets drive growth and which expose the company to economic, regulatory, or currency risk. Heavy concentration in one region can mean dependence on that market, while rising international revenue signals expansion opportunity and broader addressable market.
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The Fly
The FlyQualys (QLYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.17B
Dividend YieldN/A
Average Volume (3M)800.07K
Price to Earnings (P/E)15.4
Beta (1Y)0.93
Revenue Growth10.21%
EPS Growth13.31%
CountryUS
Employees2,443
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)5.60
Shares Outstanding35,217,007
10 Day Avg. Volume1,104,318
30 Day Avg. Volume800,071
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 Cap1.02
Enterprise Value/Revenue4.70
Enterprise Value/Gross Profit5.65
Enterprise Value/Ebitda12.52
Forecast
1Y Price Target
$104.54Price Target Upside25.69% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)7.59
Revenue Forecast (FY)$724.27M
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 Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial story: solid 10% revenue growth, strong adjusted EBITDA margin (47%), meaningful product innovation (Agent Vail, AI-driven reliability score), third-party recognition, expanding partnerships, and continued cash returns. Offsetting these positives are early-stage adoption of ETM/ATM (cohort small), a flat company-level NRR (~104%), a notable decline in free cash flow margin (53% vs 67% prior year), rising operating investments (S&M +17%), and macro-related sales-cycle risk. On balance the company demonstrated healthy growth and profitability while prudently investing for product and go-to-market expansion; adoption and monetization of new AI-driven offerings remain a near-term execution watch item.Positive Updates
Revenue and Top-Line Growth
Q1 revenues grew 10% year-over-year to $175.6 million; company raised FY26 revenue guide to $721M–$727M (growth ~8%–9%) and Q2 guide to $177.5M–$179.5M (growth ~8%–9%).
Negative Updates
Net Dollar Expansion Rate (NRR) Largely Flat
Overall NRR closed Q1 at 104% (slightly up from 103% last quarter) and management expects no material change to company-level NRR in the near term despite an ETM/CSAM cohort NRR of 107%.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Top-Line Growth
Q1 revenues grew 10% year-over-year to $175.6 million; company raised FY26 revenue guide to $721M–$727M (growth ~8%–9%) and Q2 guide to $177.5M–$179.5M (growth ~8%–9%).
Read all positive updates
Company Guidance
Qualys guided full‑year 2026 revenue of $721–$727 million (growth of 8–9%, vs. prior $717–$725M) and Q2 revenue of $177.5–$179.5 million (8–9% growth), with no material change assumed to the company net dollar expansion rate (historically ~103–104%; Q1 NRR 104%; ETM/CSAM cohort NRR 107%). Profitability targets include adjusted EBITDA margin in the mid‑40s, free‑cash‑flow margin in the low‑40s, full‑year EPS of $7.44–$7.65 (Q2 EPS $1.73–$1.80), implied mid‑teens OpEx growth (Q1 OpEx was $67.5M, up 8%; S&M +17%), and planned capex of $8–$12M for the year ($1.2–$3.2M in Q2); Q1 operating context: revenue $175.6M (+10%), adjusted EBITDA $83.3M (47% margin) and FCF $93.6M (53% margin).Qualys Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 685.87M | 669.13M | 607.57M | 554.46M | 489.72M | 411.17M |
| Gross Profit | 570.76M | 554.36M | 496.09M | 446.97M | 386.94M | 321.73M |
| EBITDA | 257.40M | 261.32M | 205.71M | 190.06M | 165.17M | 123.58M |
| Net Income | 201.43M | 198.32M | 173.68M | 151.59M | 107.99M | 70.96M |
Balance Sheet | ||||||
| Total Assets | 1.09B | 1.10B | 973.54M | 812.62M | 700.94M | 814.56M |
| Cash, Cash Equivalents and Short-Term Investments | 471.35M | 445.94M | 381.42M | 425.56M | 321.33M | 405.29M |
| Total Debt | 52.23M | 97.23M | 47.22M | 28.74M | 42.18M | 48.52M |
| Total Liabilities | 524.76M | 533.93M | 496.42M | 444.44M | 411.81M | 377.85M |
| Stockholders Equity | 569.87M | 561.15M | 477.12M | 368.17M | 289.13M | 436.71M |
Cash Flow | ||||||
| Free Cash Flow | 290.49M | 304.41M | 231.76M | 235.82M | 174.87M | 174.96M |
| Operating Cash Flow | 295.11M | 309.40M | 244.09M | 244.60M | 198.85M | 200.62M |
| Investing Cash Flow | -105.27M | -105.92M | -71.43M | -73.17M | 145.07M | -29.53M |
| Financing Cash Flow | -201.04M | -185.40M | -145.65M | -141.49M | -306.03M | -107.89M |
Qualys Technical Analysis
Negative
83.17
Price Trends
94.63
Negative
116.48
Negative
125.54
Negative
Market Momentum
-4.12
Negative
40.37
Neutral
55.02
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 83.17 is below the 20-day moving average (MA) of 86.94, below the 50-day MA of 94.63, and below the 200-day MA of 125.54, indicating a bearish trend. The MACD of -4.12 indicates Negative momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 55.02 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.17B | 15.44 | 37.15% | ― | 10.21% | 13.31% | |
76 Outperform | $2.75B | 23.87 | 5.96% | ― | 4.47% | ― | |
71 Outperform | $2.01B | 34.43 | 21.19% | 1.33% | 12.08% | -8.14% | |
68 Neutral | $2.37B | 346.71 | -3.71% | ― | 10.74% | 74.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $5.74B | -10.62 | -29.84% | ― | 21.89% | -48.91% | |
57 Neutral | $3.24B | -16.86 | -26.10% | ― | 15.27% | -39.93% |
* Technology Sector Average
QLYS
Qualys
97.98
-38.92
-28.43%
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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.