Qualys Announces Third Quarter 2025 Financial Results
Revenue Growth of 10% Year-Over-Year
Raises 2025 Revenue Guidance to $665.8-$667.8 million
FOSTER CITY, Calif., Nov. 4, 2025 /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security and compliance solutions, today announced financial results for the third quarter ended September 30, 2025. For the quarter, the Company reported revenues of $169.9 million, net income under United States Generally Accepted Accounting Principles ("U.S. GAAP") of $50.3 million, non-GAAP net income of $67.4 million, Adjusted EBITDA of $82.6 million, GAAP net income per diluted share of $1.39, and non-GAAP net income per diluted share of $1.86.
"In Q3, we continued to execute well, demonstrated by another quarter of solid revenue growth and profitability," said Sumedh Thakar, Qualys' president and CEO. "Qualys' continuous innovation, early Risk Operations Center deployments, strategic wins with major federal and state agencies, momentum in partner-led initiatives, and the initial adoption of our flexible platform pricing model collectively underscore Qualys' strength in unifying risk management workflows, reducing operational complexity for customers, and addressing today's toughest security challenges. We believe these achievements not only validate our ongoing investments but also position Qualys as a trusted leader in pre-breach cyber risk management, setting the stage for durable growth and long-term success."
Third Quarter 2025 Financial Highlights
Revenues: Revenues for the third quarter of 2025 increased by 10% to $169.9 million compared to $153.9 million for the same quarter in 2024.
Gross Profit: GAAP gross profit for the third quarter of 2025 increased by 14% to $142.1 million compared to $125.0 million for the same quarter in 2024. GAAP gross margin was 84% for the third quarter of 2025 compared to 81% for the same quarter in 2024. Non-GAAP gross profit for the third quarter of 2025 increased by 13% to $144.9 million compared to $127.8 million for the same quarter in 2024. Non-GAAP gross margin was 85% for the third quarter of 2025 compared to 83% for the same quarter in 2024.
Operating Income: GAAP operating income for the third quarter of 2025 increased by 33% to $60.0 million compared to $45.0 million for the same quarter in 2024. As a percentage of revenues, GAAP operating income was 35% for the third quarter of 2025 compared to 29% for the same quarter in 2024. Non-GAAP operating income for the third quarter of 2025 increased by 21% to $80.0 million compared to $66.0 million for the same quarter in 2024. As a percentage of revenues, non-GAAP operating income was 47% for the third quarter of 2025 compared to 43% for the same quarter in 2024.
Net Income: GAAP net income for the third quarter of 2025 increased by 9% to $50.3 million, or $1.39 per diluted share, compared to $46.2 million, or $1.24 per diluted share, for the same quarter in 2024. As a percentage of revenues, GAAP net income was 30% for both the third quarter of 2025 and the same quarter in 2024. Non-GAAP net income for the third quarter of 2025 was $67.4 million, or $1.86 per diluted share, compared to $58.0 million, or $1.56 per diluted share, for the same quarter in 2024. As a percentage of revenues, non-GAAP net income was 40% for the third quarter of 2025 compared to 38% for the same quarter in 2024.
Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the third quarter of 2025 increased by 19% to $82.6 million compared to $69.7 million for the same quarter in 2024. As a percentage of revenues, Adjusted EBITDA was 49% for the third quarter of 2025 compared to 45% for the same quarter in 2024.
Operating Cash Flow: Operating cash flow for the third quarter of 2025 increased by 48% to $90.4 million compared to $61.0 million for the same quarter in 2024. As a percentage of revenues, operating cash flow was 53% for the third quarter of 2025 compared to 40% for the same quarter in 2024.
Third Quarter 2025 Business Highlights
Financial Performance Outlook
Based on information as of today, November 4, 2025, Qualys is issuing the following financial guidance for the fourth quarter and full year fiscal 2025. The Company emphasizes that the guidance is subject to various important cautionary factors referenced in the sections entitled "Legal Notice Regarding Forward-Looking Statements" and "Non-GAAP Financial Measures" below.
Fourth Quarter 2025 Guidance: Management expects revenues for the fourth quarter of 2025 to be in the range of $172.0 million to $174.0 million, representing 8% to 9% growth over the same quarter in 2024. GAAP net income per diluted share is expected to be in the range of $1.26 to $1.33, which assumes an effective income tax rate of 22%. Non-GAAP net income per diluted share is expected to be in the range of $1.73 to $1.80, which assumes a non-GAAP effective income tax rate of 21%. Fourth quarter 2025 net income per diluted share estimates are based on approximately 36.0 million weighted average diluted shares outstanding for the quarter.
Full Year 2025 Guidance: Management now expects revenues for the full year of 2025 to be in the range of $665.8 million to $667.8 million, representing 10% growth over 2024. This compares to the previous guidance range of $656.0 million to $662.0 million. GAAP net income per diluted share is expected to be in the range of $5.23 to $5.30, up from the previous guidance range of $4.47 to $4.77. This assumes an effective income tax rate of 21%. Non-GAAP net income per diluted share is expected to be in the range of $6.93 to $7.00, up from the previous guidance range of $6.20 to $6.50. This assumes a non-GAAP effective income tax rate of 21%. Full year 2025 net income per diluted share estimates are based on approximately 36.4 million weighted average diluted shares outstanding.
Qualys has not reconciled non-GAAP net income per diluted share guidance to GAAP net income per diluted share guidance because Qualys does not provide guidance on the various reconciling cash and non-cash items between GAAP net income and non-GAAP net income (i.e., stock-based compensation, amortization of intangible assets from acquisitions and non-recurring items). The actual dollar amount of reconciling items in the fourth quarter and full year 2025 is likely to have a significant impact on the Company's GAAP net income per diluted share in the fourth quarter and full year 2025. A reconciliation of the non-GAAP net income per diluted share guidance to the GAAP net income per diluted share guidance is not available without unreasonable effort.
Investor Conference Call
Qualys will host a conference call and live webcast to discuss its third quarter financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Tuesday, November 4, 2025. To access the conference call by phone, please register here. A live webcast of the earnings conference call, investor presentation and prepared remarks can be accessed at https://investor.qualys.com/events-presentations. A replay of the conference call will be available through the same webcast link following the end of the call.
Investor Contact
Blair King
Senior Vice President, Investor Relations and Financial Planning & Analysis
(650) 538-2088
ir@qualys.com
About Qualys
Qualys, Inc. (NASDAQ: QLYS) is a leading provider of disruptive cloud-based Security, Compliance and IT solutions with more than 10,000 subscription customers worldwide, including a majority of the Forbes Global 100 and Fortune 100. Qualys helps organizations streamline and consolidate their security and compliance solutions onto a single platform for greater agility, better business outcomes, and substantial cost savings.
The Qualys Enterprise TruRisk Platform leverages a single agent to continuously deliver critical security intelligence while enabling enterprises to automate the full spectrum of vulnerability detection, compliance, and protection for IT systems, workloads and web applications across on premises, endpoints, servers, public and private clouds, containers, and mobile devices. Founded in 1999 as one of the first SaaS security companies, Qualys has strategic partnerships and seamlessly integrates its vulnerability management capabilities into security offerings from cloud service providers, including Amazon Web Services, the Google Cloud Platform and Microsoft Azure, along with a number of leading managed service providers and global consulting organizations. For more information, please visit https://www.qualys.com/.
Qualys, Qualys VMDR ® and the Qualys logo are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, quotations of management and statements related to: the benefits of our existing, new and upcoming products, features, integrations, acquisitions, collaborations and joint solutions, and their impact upon our long-term growth; our ability to advance our value proposition and competitive differentiation in the market; our ability to address demand trends; our ability to maintain and strengthen our category leadership; our ability to solve modern security challenges at scale; our strategies and ability to achieve and maintain durable profitable growth; our guidance for revenues, GAAP EPS and non-GAAP EPS for the fourth quarter and full year 2025; and our expectations for the number of weighted average diluted shares outstanding and the GAAP and non-GAAP effective income tax rate for the fourth quarter and full year 2025. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; the ability of our platform and solutions to perform as intended; customer acceptance and purchase of our existing solutions and new solutions; real or perceived defects, errors or vulnerabilities in our products or services; our ability to retain existing customers and generate new customers; the budgeting cycles and seasonal buying patterns of our customers; our ability to maintain government authorizations applicable to our platform; general market, political, economic and business conditions in the United States as well as globally; our ability to manage costs as we increase our customer base and the number of our platform solutions; the market for cloud solutions for IT security and compliance not increasing at the rate we expect; competition from other products and services; fluctuations in currency exchange rates; unexpected fluctuations in our effective income tax rate on a GAAP and non-GAAP basis; our ability to effectively manage our rapid growth and our ability to anticipate future market needs and opportunities; and any unanticipated accounting charges. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
The forward-looking statements in this press release are based on information available to Qualys as of the date hereof, and Qualys disclaims any obligation to update any forward-looking statements, except as required by law.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP, Qualys provides investors with certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA (defined as earnings before interest expense, interest income and other income (expense), net, income taxes, depreciation, amortization, and stock-based compensation) and non-GAAP free cash flows (defined as cash provided by operating activities less purchases of property and equipment, net of proceeds from disposal).
In computing non-GAAP financial measures, Qualys excludes the effects of stock-based compensation expense, amortization of intangible assets from acquisitions, non-recurring items and for non-GAAP net income, certain tax effects. Qualys believes that these non-GAAP financial measures help illustrate underlying trends in its business that could otherwise be masked by the effect of the income or expenses that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows.
Furthermore, Qualys uses some of these non-GAAP financial measures to establish budgets and operational goals for managing its business and evaluating its performance. Qualys believes that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods with other companies in its industry.
Although Qualys does not focus on or use quarterly billings in managing or monitoring the performance of its business, Qualys provides calculated current billings (defined as total revenues recognized in a period plus the sequential change in current deferred revenue in the corresponding period) for the convenience of investors and analysts in building their own financial models.
In order to provide a more complete picture of recurring core operating business results, the Company's non-GAAP net income and non-GAAP net income per diluted share include adjustments for non-recurring income tax items and certain tax effects of non-GAAP adjustments to achieve the effective income tax rate on a non-GAAP basis. The Company's non-GAAP effective tax rate may differ from the GAAP effective income tax rate as a result of these income tax adjustments. The Company believes its estimated non-GAAP effective income tax rate of 21% in 2025 is a reasonable estimate under its current global operating structure and core business operations. The Company may adjust this rate during the year to take into account events or trends that it believes materially impact the estimated annual rate. The non-GAAP effective income tax rate could be subject to change for a number of reasons, including but not limited to, significant changes resulting from tax legislation, material changes in geographic mix of revenues and expenses and other significant events.
The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.
Qualys, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Revenues
$ 169,882
$ 153,867
$ 493,843
$ 448,380
Cost of revenues (1)
27,798
28,832
85,601
82,445
Gross profit
142,084
125,035
408,242
365,935
Operating expenses:
Research and development (1)
28,927
28,901
88,330
83,550
Sales and marketing (1)
35,280
32,686
103,750
94,240
General and administrative (1)
17,922
18,494
53,045
50,362
Total operating expenses
82,129
80,081
245,125
228,152
Income from operations
59,955
44,954
163,117
137,783
Other income (expense), net:
Interest income
6,264
6,764
18,906
19,590
Other income (expense), net
(937)
605
379
(1,381)
Total other income, net
5,327
7,369
19,285
18,209
Income before income taxes
65,282
52,323
182,402
155,992
Income tax provision
14,936
6,111
37,232
26,277
Net income
$ 50,346
$ 46,212
$ 145,170
$ 129,715
Net income per share:
Basic
$ 1.40
$ 1.26
$ 4.00
$ 3.52
Diluted
$ 1.39
$ 1.24
$ 3.97
$ 3.46
Weighted average shares used in computing net
income per share:
Basic
36,037
36,762
36,250
36,877
Diluted
36,293
37,136
36,530
37,441
(1) Includes stock-based compensation as follows:
Cost of revenues
$ 2,172
$ 2,081
$ 6,242
$ 5,967
Research and development
5,207
5,448
15,274
15,911
Sales and marketing
3,490
3,649
9,773
11,020
General and administrative
8,578
9,159
25,024
23,556
Total stock-based compensation, net of
amounts capitalized
$ 19,447
$ 20,337
$ 56,313
$ 56,454
Qualys, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
September 30,
2025
December 31,
2024
Assets
Current assets:
Cash and cash equivalents
$ 225,253
$ 232,182
Short-term marketable securities
193,321
149,241
Accounts receivable, net
128,418
164,551
Prepaid expenses and other current assets
49,720
39,717
Total current assets
596,712
585,691
Long-term marketable securities
244,984
193,887
Property and equipment, net
24,792
30,349
Operating leases - right of use asset
47,959
40,968
Deferred tax assets, net
76,258
81,307
Intangible assets, net
4,894
6,812
Goodwill
7,447
7,447
Noncurrent restricted cash
1,200
1,200
Other noncurrent assets
27,743
25,876
Total assets
$ 1,031,989
$ 973,537
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$ 1,823
$ 1,270
Accrued liabilities
51,136
45,942
Deferred revenues, current
371,476
371,457
Operating lease liabilities, current
7,345
9,721
Total current liabilities
431,780
428,390
Deferred revenues, noncurrent
16,336
24,265
Operating lease liabilities, noncurrent
47,264
37,500
Other noncurrent liabilities
7,206
6,266
Total liabilities
502,586
496,421
Stockholders' equity:
Common stock
36
37
Additional paid-in capital
710,450
664,879
Accumulated other comprehensive income (loss)
(4,210)
1,417
Accumulated deficit
(176,873)
(189,217)
Total stockholders' equity
529,403
477,116
Total liabilities and stockholders' equity
$ 1,031,989
$ 973,537
Qualys, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Nine Months Ended
September 30,
2025
2024
Cash flow from operating activities:
Net income
$ 145,170
$ 129,715
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense
11,353
14,410
Provision for credit losses
1,110
411
Stock-based compensation, net of amounts capitalized
56,313
56,454
Accretion of discount on marketable securities, net
(2,799)
(5,231)
Deferred income taxes
6,724
(15,374)
Changes in operating assets and liabilities:
Accounts receivable
35,023
30,848
Prepaid expenses and other assets
(13,402)
(9,900)
Accounts payable
591
391
Accrued liabilities and other noncurrent liabilities
1,568
(1,351)
Deferred revenues
(7,910)
(4,001)
Net cash provided by operating activities
233,741
196,372
Cash flow from investing activities:
Purchases of marketable securities
(275,379)
(305,952)
Sales and maturities of marketable securities
182,322
252,940
Purchases of property and equipment
(4,266)
(6,497)
Net cash used in investing activities
(97,323)
(59,509)
Cash flow from financing activities:
Repurchase of common stock
(138,754)
(97,188)
Proceeds from exercise of stock options
8,856
8,311
Payments for taxes related to net share settlement of equity awards
(20,200)
(23,093)
Proceeds from issuance of common stock through employee stock purchase plan
6,751
6,872
Payment of acquisition-related holdback
—
(1,500)
Net cash used in financing activities
(143,347)
(106,598)
Net increase (decrease) in cash, cash equivalents and restricted cash
(6,929)
30,265
Cash, cash equivalents and restricted cash at beginning of period
233,382
206,365
Cash, cash equivalents and restricted cash at end of period
$ 226,453
$ 236,630
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
ADJUSTED EBITDA
(unaudited)
(in thousands, except percentages)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Net income
$ 50,346
$ 46,212
$ 145,170
$ 129,715
Net income as a percentage of revenues
30 %
30 %
29 %
29 %
Depreciation and amortization of property and
equipment
2,559
3,670
9,435
12,146
Amortization of intangible assets
639
721
1,918
2,264
Income tax provision
14,936
6,111
37,232
26,277
Stock-based compensation
19,447
20,337
56,313
56,454
Total other income, net
(5,327)
(7,369)
(19,285)
(18,209)
Adjusted EBITDA
$ 82,600
$ 69,682
$ 230,783
$ 208,647
Adjusted EBITDA as a percentage of revenues
49 %
45 %
47 %
47 %
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
(unaudited)
(in thousands, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
GAAP Cost of revenues
$ 27,798
$ 28,832
$ 85,601
$ 82,445
Less: Stock-based compensation
(2,172)
(2,081)
(6,242)
(5,967)
Less: Amortization of intangible assets
(639)
(705)
(1,918)
(2,198)
Non-GAAP Cost of revenues
$ 24,987
$ 26,046
$ 77,441
$ 74,280
GAAP Gross profit
$ 142,084
$ 125,035
$ 408,242
$ 365,935
Plus: Stock-based compensation
2,172
2,081
6,242
5,967
Plus: Amortization of intangible assets
639
705
1,918
2,198
Non-GAAP Gross Profit
$ 144,895
$ 127,821
$ 416,402
$ 374,100
GAAP Research and development
$ 28,927
$ 28,901
$ 88,330
$ 83,550
Less: Stock-based compensation
(5,207)
(5,448)
(15,274)
(15,911)
Less: Amortization of intangible assets
—
(16)
—
(66)
Non-GAAP Research and development
$ 23,720
$ 23,437
$ 73,056
$ 67,573
GAAP Sales and marketing
$ 35,280
$ 32,686
$ 103,750
$ 94,240
Less: Stock-based compensation
(3,490)
(3,649)
(9,773)
(11,020)
Non-GAAP Sales and marketing
$ 31,790
$ 29,037
$ 93,977
$ 83,220
GAAP General and administrative
$ 17,922
$ 18,494
$ 53,045
$ 50,362
Less: Stock-based compensation
(8,578)
(9,159)
(25,024)
(23,556)
Non-GAAP General and administrative
$ 9,344
$ 9,335
$ 28,021
$ 26,806
GAAP Operating expenses
$ 82,129
$ 80,081
$ 245,125
$ 228,152
Less: Stock-based compensation
(17,275)
(18,256)
(50,071)
(50,487)
Less: Amortization of intangible assets
—
(16)
—
(66)
Non-GAAP Operating expenses
$ 64,854
$ 61,809
$ 195,054
$ 177,599
GAAP Income from operations
$ 59,955
$ 44,954
$ 163,117
$ 137,783
Plus: Stock-based compensation
19,447
20,337
56,313
56,454
Plus: Amortization of intangible assets
639
721
1,918
2,264
Non-GAAP Income from operations
$ 80,041
$ 66,012
$ 221,348
$ 196,501
GAAP Net income
$ 50,346
$ 46,212
$ 145,170
$ 129,715
Plus: Stock-based compensation
19,447
20,337
56,313
56,454
Plus: Amortization of intangible assets
639
721
1,918
2,264
Less: Tax adjustment
(2,991)
(9,299)
(13,301)
(18,812)
Non-GAAP Net income
$ 67,441
$ 57,971
$ 190,100
$ 169,621
GAAP Net income per share:
Basic
$ 1.40
$ 1.26
$ 4.00
$ 3.52
Diluted
$ 1.39
$ 1.24
$ 3.97
$ 3.46
Non-GAAP Net income per share:
Basic
$ 1.87
$ 1.58
$ 5.24
$ 4.60
Diluted
$ 1.86
$ 1.56
$ 5.20
$ 4.53
Weighted average shares used in GAAP and non-GAAP net income per share:
Basic
36,037
36,762
36,250
36,877
Diluted
36,293
37,136
36,530
37,441
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
FREE CASH FLOWS
(unaudited)
(in thousands)
Nine Months Ended
September 30,
2025
2024
GAAP Cash flows provided by operating activities
$ 233,741
$ 196,372
Less:
Purchases of property and equipment, net of proceeds from disposal
(4,266)
(6,497)
Non-GAAP Free cash flows
$ 229,475
$ 189,875
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
CALCULATED CURRENT BILLINGS
(unaudited)
(in thousands, except percentages)
Three Months Ended
September 30,
2025
2024
GAAP Revenue
$ 169,882
$ 153,867
GAAP Revenue growth compared to same quarter of prior year
10 %
8 %
Plus: Current deferred revenue at September 30
371,476
337,821
Less: Current deferred revenue at June 30
(354,971)
(324,334)
Non-GAAP Calculated current billings
$ 186,387
$ 167,354
Calculated current billings growth compared to same quarter of prior year
11 %
14 %
SOURCE Qualys, Inc.