Qualys Q3 Revenue Jumps 10% on Strong Cloud Security Demand

TL;DR

**QLYS is crushing it with double-digit revenue and net income growth, buy the dip if you see one.**

AI Summary

Qualys, Inc. reported robust financial performance for the nine months ended September 30, 2025, with revenues increasing to $493.843 million, up from $448.380 million in the prior year, representing a 10.14% growth. Net income also saw a significant rise, reaching $145.170 million compared to $129.715 million in the same period of 2024, an 11.91% increase. For the three months ended September 30, 2025, revenues were $169.882 million, up from $153.867 million in 2024, and net income was $50.346 million, compared to $46.212 million in 2024. The company's cash and cash equivalents decreased slightly to $225.253 million as of September 30, 2025, from $232.182 million at December 31, 2024. Strategic outlook remains focused on its cloud-based IT, security, and compliance solutions, delivered via 14 shared cloud platforms. Key risks include the ability to anticipate market needs, scale its platform, and renew existing subscriptions, alongside potential security incidents and competitive pressures. Share repurchases totaled $138.754 million for the nine months ended September 30, 2025, compared to $97.188 million in the prior year.

Why It Matters

Qualys' consistent revenue and net income growth, particularly in its cloud-based security solutions, signals strong demand in the cybersecurity market, which is crucial for investors seeking growth in a defensive sector. For employees, this indicates a stable and expanding company, potentially leading to more opportunities. Customers benefit from Qualys' continued investment in its Enterprise TruRisk Platform, enhancing their IT security posture against evolving cyber threats. In a competitive landscape with numerous cybersecurity providers, Qualys' ability to scale its 14 shared cloud platforms and maintain profitability underscores its competitive edge and market relevance.

Risk Assessment

Risk Level: medium — The risk level is medium due to several factors highlighted in the filing, including the reliance on 14 shared cloud platforms, where any disruption could harm operating results. The company also faces significant competition and the potential for sales prices to decrease due to competitive pressures, which could reduce gross profits. Furthermore, the sales cycle can be long and unpredictable, leading to fluctuating revenues, as noted in the 'Risk Factor Summary'.

Analyst Insight

Investors should consider Qualys' strong financial performance and increasing share repurchases as a positive signal for capital allocation and shareholder value. Monitor the company's ability to innovate and expand its cloud platform to maintain its competitive edge in the rapidly evolving cybersecurity market. A long-term hold might be appropriate given its consistent growth.

Financial Highlights

revenue

$493.843M

total Assets

$1,031.989M

net Income

$145.170M

eps

$1.39

cash Position

$225.253M

revenue Growth

+10.14%

Key Numbers

• $493.843M — Revenues (Increased 10.14% for the nine months ended September 30, 2025, from $448.380M in 2024.)
• $145.170M — Net Income (Increased 11.91% for the nine months ended September 30, 2025, from $129.715M in 2024.)
• $1.39 — Diluted EPS (For the three months ended September 30, 2025, up from $1.24 in 2024.)
• $225.253M — Cash and Cash Equivalents (As of September 30, 2025, a slight decrease from $232.182M at December 31, 2024.)
• $138.754M — Common Stock Repurchases (For the nine months ended September 30, 2025, compared to $97.188M in 2024.)
• 10.14% — Revenue Growth (Year-over-year growth for the nine months ended September 30, 2025.)
• 11.91% — Net Income Growth (Year-over-year growth for the nine months ended September 30, 2025.)
• 14 — Shared Cloud Platforms (Number of platforms Qualys delivers its solutions from, indicating infrastructure scale.)

Key Players & Entities

• QUALYS, INC. (company) — registrant
• U.S. Securities and Exchange Commission (regulator) — filing oversight
• NASDAQ Stock Market LLC (company) — exchange where QLYS is registered
• FASB (regulator) — issued ASU 2023-09
• Delaware (company) — state of incorporation
• Foster City, California (company) — headquarters location
• $493.843 million (dollar_amount) — total revenues for nine months ended September 30, 2025
• $145.170 million (dollar_amount) — net income for nine months ended September 30, 2025
• $138.754 million (dollar_amount) — repurchase of common stock for nine months ended September 30, 2025
• 35,858,308 (dollar_amount) — shares of common stock outstanding as of October 23, 2025

FAQ

Risk Factors

• Anticipating Market Needs [high — market]: Qualys' success depends on its ability to anticipate the rapidly evolving needs of the IT, security, and compliance market. Failure to do so could lead to a decline in demand for its cloud-based solutions.
• Scaling Cloud Platform [medium — operational]: The company must effectively scale its 14 shared cloud platforms to meet increasing customer demand and maintain performance. Any disruptions or inability to scale could impact service delivery and customer satisfaction.
• Subscription Renewals [high — financial]: A significant portion of Qualys' revenue is derived from recurring subscriptions. The inability to retain existing customers and renew their subscriptions poses a material risk to revenue stability.
• Security Incidents [high — operational]: As a provider of security solutions, Qualys itself is a target for cyberattacks. A security incident could damage its reputation, lead to customer loss, and result in significant remediation costs.
• Competitive Pressures [medium — market]: The IT security market is highly competitive, with numerous established players and emerging companies. Intense competition could lead to pricing pressures and reduced market share.

Industry Context

Qualys operates in the highly competitive cloud-based IT, security, and compliance solutions market. The industry is characterized by rapid technological advancements and an increasing demand for integrated security platforms. Key trends include the shift to cloud computing, the rise of sophisticated cyber threats, and the growing importance of regulatory compliance.

Regulatory Implications

Qualys' operations are subject to various data privacy and security regulations globally, such as GDPR and CCPA. Non-compliance could result in significant fines and reputational damage. The company's ability to maintain robust security measures is crucial for meeting these regulatory requirements.

What Investors Should Do

1. Monitor subscription renewal rates
2. Evaluate competitive positioning
3. Assess scalability of cloud platforms
4. Review share repurchase activity

Glossary

Deferred revenues, current

Represents revenue that has been earned but not yet recognized because the service has not been fully provided. This is recognized as revenue in future periods. (A significant portion of Qualys' revenue is deferred, indicating a strong recurring revenue model based on subscriptions.)

Accumulated deficit

The cumulative net losses of a company since its inception, minus any cumulative net income. (Qualys has an accumulated deficit of $176,873 thousand as of September 30, 2025, indicating that it has historically incurred more expenses than revenues, which is common for growth-stage technology companies.)

Common stock repurchases

The company's buying back its own shares from the open market. (Qualys repurchased $138.754 million in common stock for the nine months ended September 30, 2025, indicating a return of capital to shareholders and a potential belief that the stock is undervalued.)

Year-Over-Year Comparison

Qualys demonstrated strong year-over-year growth for the nine months ended September 30, 2025, with revenues increasing by 10.14% to $493.843 million and net income rising by 11.91% to $145.170 million. The company also significantly increased its common stock repurchases to $138.754 million from $97.188 million in the prior year. While cash and cash equivalents saw a slight decrease to $225.253 million from $232.182 million at year-end 2024, the overall financial performance appears robust. No new significant risks were highlighted in the provided excerpt compared to the general risk factors mentioned.

Key Financial Figures

• $0.001 — ange on which registered Common stock, $0.001 par value per share QLYS The NASDAQ Sto

Filing Documents

• qlys-20250930.htm (10-Q) — 1674KB
• qlys-20250930xex311.htm (EX-31.1) — 11KB
• qlys-20250930xex312.htm (EX-31.2) — 11KB
• qlys-20250930xex321.htm (EX-32.1) — 6KB
• qlys-20250930xex322.htm (EX-32.2) — 6KB
• 0001107843-25-000038.txt ( ) — 8546KB
• qlys-20250930.xsd (EX-101.SCH) — 42KB
• qlys-20250930_cal.xml (EX-101.CAL) — 84KB
• qlys-20250930_def.xml (EX-101.DEF) — 205KB
• qlys-20250930_lab.xml (EX-101.LAB) — 647KB
• qlys-20250930_pre.xml (EX-101.PRE) — 450KB
• qlys-20250930_htm.xml (XML) — 1484KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Comprehensive Income 6 Condensed Consolidated Statements of Cash Flows 7 Condensed Consolidated Statements of Stockholders' Equity 8 Notes to Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 4.

Controls and Procedures

Controls and Procedures 40

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 63 Item 3. Defaults upon Senior Securities 64 Item 4. Mine Safety Disclosures 64 Item 5. Other Information 64 Item 6. Exhibits 66

Signatures

Signatures 67 2 Table of Contents RISK FACTOR SUMMARY Our business is subject to significant risks and uncertainties that make an investment in us speculative and risky. Below we summarize what we believe are the principal risk factors but these risks are not the only ones we face, and you should carefully review and consider the full discussion of our risk factors in the section titled "Risk Factors," together with the other information in this Quarterly Report on Form 10-Q. If any of the following risks actually occurs (or if any of those listed elsewhere in this Quarterly Report on Form 10-Q occur), our business, reputation, financial condition, results of operations, revenue, and future prospects could be seriously harmed. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that adversely affect our business. Our quarterly and annual operating results may vary from period to period, which could result in our failure to meet expectations with respect to operating results and cause the trading price of our stock to decline. If we do not successfully anticipate market needs and opportunities or are unable to enhance our solutions and develop new solutions that meet those needs and opportunities on a timely or cost-effective basis, we may not be able to compete effectively and our business and financial condition may be harmed. If we fail to continue to effectively scale and adapt our platform to meet the performance and other requirements of our customers, our operating results and our business would be harmed. If we are unable to renew existing subscriptions for our IT, security and compliance solutions, sell additional subscriptions for our solutions and attract new customers, our operating results would be harmed. Our current research and development efforts may not produce successful products or enhancements to our platform that result in significant revenue, c

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Qualys, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except per share data) 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 of allowance of $ 1,488 and $ 1,064 as of September 30, 2025 and December 31, 2024, respectively 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 Commitments and contingencies (Note 8) Stockholders' equity: Preferred stock: $ 0.001 par value; 20,000 shares authorized, no shares issued and outstanding as of September 30, 2025 and December 31, 2024 — — Common stock: $ 0.001 par value; 1,000,000 shares authorized, 35,908 and 36,503 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 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 The accompan

View Full Filing

View this 10-Q filing on SEC EDGAR