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Qualys Announces Second Quarter 2025 Financial Results
Revenue Growth of 10% Year-Over-Year
Raises 2025 Revenue Guidance to $656-$662 million

FOSTER CITY, Calif., – August 5, 2025 – Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security and compliance solutions, today announced financial results for the second quarter ended June 30, 2025. For the quarter, the Company reported revenues of $164.1 million, net income under United States Generally Accepted Accounting Principles (“U.S. GAAP”) of $47.3 million, non-GAAP net income of $61.2 million, Adjusted EBITDA of $73.4 million, GAAP net income per diluted share of $1.29, and non-GAAP net income per diluted share of $1.68.
“In Q2, we executed well against our strategic agenda, delivering solid revenue growth and profitability,” said Sumedh Thakar, Qualys’ president and CEO. “Qualys is well armed with fresh new capabilities, a new agency authorized FedRAMP High solution for government wide use, strong channel momentum, and flexible platform pricing to help customers unify pre-breach cyber risk management workflows, reduce costs, and address today’s toughest security challenges. With trusted innovation and early Risk Operations Center (ROC) adoption, we’re strengthening our position as the partner of choice for customers ready to centralize their response to cyber risk; and believe we are well positioned to outpace our competitors, extend our thought leadership, and build upon an already strong foundation to drive durable long-term growth in the business.”
Second Quarter 2025 Financial Highlights
Revenues: Revenues for the second quarter of 2025 increased by 10% to $164.1 million compared to $148.7 million for the same quarter in 2024.
Gross Profit: GAAP gross profit for the second quarter of 2025 increased by 11% to $135.2 million compared to $122.3 million for the same quarter in 2024. GAAP gross margin was 82% for both the second quarter of 2025 and the same quarter in 2024. Non-GAAP gross profit for the second quarter of 2025 increased by 10% to $137.8 million compared to $124.9 million for the same quarter in 2024. Non-GAAP gross margin was 84% for both the second quarter of 2025 and the same quarter in 2024.
Operating Income: GAAP operating income for the second quarter of 2025 increased by 7% to $51.4 million compared to $48.1 million for the same quarter in 2024. As a percentage of revenues, GAAP operating income was 31% for the second quarter of 2025 compared to 32% for the same quarter in 2024. Non-GAAP operating income for the second quarter of 2025 increased by 6% to $70.1 million compared to $65.9 million for the same quarter in 2024. As a percentage of revenues, non-GAAP operating income was 43% for the second quarter of 2025 compared to 44% for the same quarter in 2024.
Net Income: GAAP net income for the second quarter of 2025 increased by 8% to $47.3 million, or $1.29 per diluted share, compared to $43.8 million, or $1.17 per diluted share, for the same quarter in 2024. As a percentage of revenues, GAAP net income was 29% for both the second quarter of 2025 and the same quarter in 2024. Non-GAAP net income for the second quarter of 2025 was $61.2 million, or $1.68 per diluted share, compared to $56.9 million, or $1.52 per diluted share, for the same quarter in 2024. As a percentage of revenues, non-GAAP net income was 37% for the second quarter of 2025 compared to 38% for the same quarter in 2024.
Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2025 increased by 5% to $73.4 million compared to $69.9 million for the same quarter in 2024. As a percentage of revenues, Adjusted EBITDA was 45% for the second quarter of 2025, compared to 47% for the same quarter in 2024.
Operating Cash Flow: Operating cash flow for the second quarter of 2025 decreased by 32% to $33.8 million compared to $49.8 million for the same quarter in 2024. As a percentage of revenues, operating cash flow was 21% for the second quarter of 2025 compared to 34% for the same quarter in 2024.


Second Quarter 2025 Business Highlights
•Launched inaugural managed Risk Operations Center (mROC) Alliance Partners with BlueVoyant, GuidePoint Security, ImagineX, NetHive, The Tech Collective, and Teksalah. These partners are expected to play a critical role in Qualys' mission to make risk management easier to adopt, more practical to implement, and more impactful for organizations globally.
•Expanded TotalAI solution with introduction of advanced AI security capabilities to extend threat coverage, multi-modal protections, and internal Large Language Model (LLM) scanning, enabling organizations to secure their Machine Learning Operations (MLOps) pipeline from development to deployment.
•Enhanced Policy Audit solution to streamline evidence collection, prioritize risk-based remediation, and ensure continuous audit readiness, helping organizations reduce compliance costs and regulatory exposure.
•Qualys was named the Leader in the 2025 KuppingerCole Analysts AG Leadership Compass for Attack Surface Management, recognizing its unified approach to securing complex IT environments. KuppingerCole also named TotalCloud a leader in its 2025 Leadership Compass for Cloud Native Application Protection Platforms (CNAPP), affirming Qualys' dedication to delivering innovative, risk-driven cloud security across hybrid environments from code to runtime, and from containers to compliance.
•Qualys' TotalCloud and Vulnerability Management, Detection, and Response (VMDR) applications were named best cloud security and vulnerability management solutions, respectively, by the prestigious SC Awards Europe, underscoring Qualys’ excellence and contributions to shaping the future of technology and cybersecurity.
•Reinforcing its commitment to the public sector, Qualys expanded its office presence in Washington D.C., and hosted its second annual Public Sector Cyber Risk Conference.
Financial Performance Outlook
Based on information as of today, August 5, 2025, Qualys is issuing the following financial guidance for the third 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.
Third Quarter 2025 Guidance: Management expects revenues for the third quarter of 2025 to be in the range of $164.5 million to $167.5 million, representing 7% to 9% growth over the same quarter in 2024. GAAP net income per diluted share is expected to be in the range of $1.00 to $1.10, which assumes an effective income tax rate of 26%. Non-GAAP net income per diluted share is expected to be in the range of $1.50 to $1.60, which assumes a non-GAAP effective income tax rate of 21%. Third quarter 2025 net income per diluted share estimates are based on approximately 36.3 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 $656.0 million to $662.0 million, representing 8% to 9% growth over 2024. This compares to the previous guidance range of $648.0 million to $657.0 million. GAAP net income per diluted share is expected to be in the range of $4.47 to $4.77, up from the previous guidance range of $4.27 to $4.57. This assumes an effective income tax rate of 22%. Non-GAAP net income per diluted share is expected to be in the range of $6.20 to $6.50, up from the previous guidance range of $6.00 to $6.30. 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 third quarter and full year 2025 is likely to have a significant impact on the Company’s GAAP net income per diluted share in the third 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 second quarter financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Tuesday, August 5, 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 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 third 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 third 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
June 30,		Six Months Ended
June 30,
2025202420252024
Revenues$164,062 $148,708 $323,961 $294,513 
Cost of revenues (1)
28,877 26,415 57,803 53,613 
Gross profit135,185 122,293 266,158 240,900 
Operating expenses:
Research and development (1)
30,249 27,119 59,403 54,649 
Sales and marketing (1)
35,810 32,146 68,470 61,554 
General and administrative (1)
17,719 14,960 35,123 31,868 
Total operating expenses83,778 74,225 162,996 148,071 
Income from operations51,407 48,068 103,162 92,829 
Other income (expense), net:
Interest income6,407 6,703 12,642 12,826 
Other income (expense), net999 (587)1,316 (1,986)
Total other income, net7,406 6,116 13,958 10,840 
Income before income taxes58,813 54,184 117,120 103,669 
Income tax provision11,523 10,412 22,296 20,166 
Net income$47,290 $43,772 $94,824 $83,503 
Net income per share:
Basic$1.30 $1.19 $2.61 $2.26 
Diluted$1.29 $1.17 $2.59 $2.22 
Weighted average shares used in computing net income per share:
Basic36,25336,91536,35936,935
Diluted36,51937,46436,65137,594
(1) Includes stock-based compensation as follows:
Cost of revenues$1,980 $1,866 $4,070 $3,886 
Research and development4,963 5,160 10,067 10,463 
Sales and marketing3,083 3,632 6,283 7,371 
General and administrative8,020 6,428 16,446 14,397 
Total stock-based compensation, net of amounts capitalized$18,046 $17,086 $36,866 $36,117 


Qualys, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
June 30,
2025		December 31,
2024
Assets
Current assets:
Cash and cash equivalents$193,983 $232,182 
Short-term marketable securities176,048 149,241 
Accounts receivable, net128,675 164,551 
Prepaid expenses and other current assets44,266 39,717 
Total current assets542,972 585,691 
Long-term marketable securities251,179 193,887 
Property and equipment, net26,162 30,349 
Operating leases - right of use asset48,678 40,968 
Deferred tax assets, net91,551 81,307 
Intangible assets, net5,533 6,812 
Goodwill7,447 7,447 
Noncurrent restricted cash1,200 1,200 
Other noncurrent assets24,783 25,876 
Total assets$999,505 $973,537 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$1,977 $1,270 
Accrued liabilities52,768 45,942 
Deferred revenues, current354,971 371,457 
Operating lease liabilities, current7,099 9,721 
Total current liabilities416,815 428,390 
Deferred revenues, noncurrent19,229 24,265 
Operating lease liabilities, noncurrent48,248 37,500 
Other noncurrent liabilities7,046 6,266 
Total liabilities491,338 496,421 
Stockholders’ equity:
Common stock
36 37 
Additional paid-in capital691,886 664,879 
Accumulated other comprehensive income (loss)
(4,086)1,417 
Accumulated deficit(179,669)(189,217)
Total stockholders’ equity508,167 477,116 
Total liabilities and stockholders’ equity$999,505 $973,537 


Qualys, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Six Months Ended
June 30,
20252024
Cash flow from operating activities:
Net income$94,824 $83,503 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization expense8,155 10,019 
Provision for credit losses850 277 
Stock-based compensation, net of amounts capitalized36,866 36,117 
Accretion of discount on marketable securities, net(2,008)(3,520)
Deferred income taxes(8,605)(8,165)
Changes in operating assets and liabilities:
Accounts receivable35,026 36,365 
Prepaid expenses and other assets(4,609)(4,489)
Accounts payable699 229 
Accrued liabilities and other noncurrent liabilities3,683 (3,215)
Deferred revenues(21,522)(11,792)
Net cash provided by operating activities143,359 135,329 
Cash flow from investing activities:
Purchases of marketable securities(183,545)(191,812)
Sales and maturities of marketable securities100,770 198,250 
Purchases of property and equipment(3,365)(3,077)
Net cash provided by (used in) investing activities(86,140)3,361 
Cash flow from financing activities:
Repurchase of common stock(89,545)(53,017)
Proceeds from exercise of stock options5,577 5,970 
Payments for taxes related to net share settlement of equity awards(15,267)(17,711)
Proceeds from issuance of common stock through employee stock purchase plan3,817 3,608 
Payment of acquisition-related holdback— (1,500)
Net cash used in financing activities(95,418)(62,650)
Net increase (decrease) in cash, cash equivalents and restricted cash
(38,199)76,040 
Cash, cash equivalents and restricted cash at beginning of period233,382 206,365 
Cash, cash equivalents and restricted cash at end of period$195,183 $282,405 


Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
ADJUSTED EBITDA
(unaudited)
(in thousands, except percentages)
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Net income$47,290 $43,772 $94,824 $83,503 
Net income as a percentage of revenues29%29%29%28%
Depreciation and amortization of property and equipment3,339 4,009 6,876 8,476 
Amortization of intangible assets639 771 1,279 1,543 
Income tax provision11,523 10,412 22,296 20,166 
Stock-based compensation18,046 17,086 36,866 36,117 
Total other income, net
(7,406)(6,116)(13,958)(10,840)
Adjusted EBITDA$73,431 $69,934 $148,183 $138,965 
Adjusted EBITDA as a percentage of revenues45%47%46%47%


Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
(unaudited)
(in thousands, except per share data)
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
GAAP Cost of revenues$28,877 $26,415 $57,803 $53,613 
Less: Stock-based compensation(1,980)(1,866)(4,070)(3,886)
Less: Amortization of intangible assets(639)(746)(1,279)(1,493)
Non-GAAP Cost of revenues$26,258 $23,803 $52,454 $48,234 
GAAP Gross profit$135,185 $122,293 $266,158 $240,900 
Plus: Stock-based compensation1,980 1,866 4,070 3,886 
Plus: Amortization of intangible assets639 746 1,279 1,493 
Non-GAAP Gross Profit$137,804 $124,905 $271,507 $246,279 
GAAP Research and development$30,249 $27,119 $59,403 $54,649 
Less: Stock-based compensation(4,963)(5,160)(10,067)(10,463)
Less: Amortization of intangible assets— (25)— (50)
Non-GAAP Research and development$25,286 $21,934 $49,336 $44,136 
GAAP Sales and marketing$35,810 $32,146 $68,470 $61,554 
Less: Stock-based compensation(3,083)(3,632)(6,283)(7,371)
Non-GAAP Sales and marketing$32,727 $28,514 $62,187 $54,183 
GAAP General and administrative$17,719 $14,960 $35,123 $31,868 
Less: Stock-based compensation(8,020)(6,428)(16,446)(14,397)
Non-GAAP General and administrative$9,699 $8,532 $18,677 $17,471 
GAAP Operating expenses$83,778 $74,225 $162,996 $148,071 
Less: Stock-based compensation(16,066)(15,220)(32,796)(32,231)
Less: Amortization of intangible assets— (25)— (50)
Non-GAAP Operating expenses$67,712 $58,980 $130,200 $115,790 
GAAP Income from operations$51,407 $48,068 $103,162 $92,829 
Plus: Stock-based compensation18,046 17,086 36,866 36,117 
Plus: Amortization of intangible assets639 771 1,279 1,543 
Non-GAAP Income from operations$70,092 $65,925 $141,307 $130,489 
GAAP Net income$47,290 $43,772 $94,824 $83,503 
Plus: Stock-based compensation18,046 17,086 36,866 36,117 
Plus: Amortization of intangible assets639 771 1,279 1,543 
Less: Tax adjustment(4,763)(4,717)(10,310)(9,513)
Non-GAAP Net income$61,212 $56,912 $122,659 $111,650 
GAAP Net income per share:
Basic$1.30 $1.19 $2.61 $2.26 
Diluted$1.29 $1.17 $2.59 $2.22 
Non-GAAP Net income per share:
Basic$1.69 $1.54 $3.37 $3.02 
Diluted$1.68 $1.52 $3.35 $2.97 
Weighted average shares used in GAAP and non-GAAP net income per share:
Basic36,25336,91536,35936,935
Diluted36,51937,46436,65137,594


Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
FREE CASH FLOWS
(unaudited)
(in thousands)
Six Months Ended
June 30,
20252024
GAAP Cash flows provided by operating activities$143,359 $135,329 
Less:
Purchases of property and equipment, net of proceeds from disposal(3,365)(3,077)
Non-GAAP Free cash flows$139,994 $132,252 


Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
CALCULATED CURRENT BILLINGS
(unaudited)
(in thousands, except percentages)
Three Months Ended
June 30,
20252024
GAAP Revenue$164,062 $148,708 
GAAP Revenue growth compared to same quarter of prior year10%8%
Plus: Current deferred revenue at June 30
354,971 324,334 
Less: Current deferred revenue at March 31
(366,824)(332,128)
Non-GAAP Calculated current billings$152,209 $140,914 
Calculated current billings growth compared to same quarter of prior year8%(2%)