Nasdaq:QLYS
QUALYS, INC.
Qualys provides essential cloud-based security analytics and compliance automation for enterprises protecting critical digital assets.
Key Metrics
Investment Thesis
Bull Case
Qualys offers an attractive growth story as digital transformation accelerates the demand for automated security compliance and vulnerability scanning. Investors benefit from the company's high recurring revenue model and expanding addressable market within the critical cybersecurity sector.
Bear Case
The stock faces headwinds from potential economic slowdowns that could lead enterprises to delay IT security spending despite increasing threat landscapes. High levels of accumulated deferred revenue suggest a backlog dependent on sustained customer budgets, which may be volatile in uncertain macroeconomic conditions.
About QUALYS, INC.
Qualys Inc. is a global leader in cloud-native security software, primarily serving enterprise customers seeking to secure their digital infrastructure. The company specializes in vulnerability management, application security testing, and compliance automation solutions across the SaaS sector.
Analysis
Management Discussion
Qualys demonstrated strong financial resilience with revenue growing 10.5% year-over-year to $669.1M, while net income increased by 13.7% to $198.3M. The company generated robust operating cash flow of $309.4M and maintained a healthy liquidity position with $250.3M in cash and equivalents.
Industry Overview
The global cybersecurity market is experiencing rapid expansion as organizations prioritize data protection and regulatory compliance following frequent high-profile breaches. This sector demands continuous software updates and AI-driven threat detection, favoring established players like Qualys with extensive asset libraries.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $489.7M | $554.5M | $607.6M | $669.1M |
| Cost of Revenue | $102.8M | $107.5M | $111.5M | $114.8M |
| Gross Profit | $386.9M | $447.0M | $496.1M | $554.4M |
| Operating Expenses | $256.4M | $283.9M | $308.9M | $332.4M |
| Operating Income | $130.5M | $163.1M | $187.2M | $222.0M |
| R&D | $101.2M | $110.5M | $111.9M | $117.3M |
| G&A | $58.0M | $61.7M | $68.7M | $71.6M |
| Marketing | $97.2M | $111.7M | $128.3M | $143.5M |
| Stock-Based Comp | $53.4M | $69.1M | $77.1M | $77.0M |
| D&A | $34.6M | $27.0M | $18.5M | $14.5M |
| Amortization | $5.7M | $3.1M | $2.9M | $2.6M |
| Other OpEx | $0 | $0 | $0 | $0 |
| Non-Operating Income | $3.2M | $15.6M | $22.6M | $24.9M |
| Interest Expense | $0 | — | — | — |
| Interest Income | $5.2M | $16.9M | $25.8M | $25.3M |
| Pre-Tax Income | $133.7M | $178.7M | $209.8M | $246.8M |
| Income Tax | $25.7M | $27.1M | $36.1M | $48.5M |
| Continuing Ops | $108.0M | $151.6M | $173.7M | $198.3M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $108.0M | $151.6M | $173.7M | $198.3M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $108.0M | $151.6M | $173.7M | $198.3M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $473.3M | $600.0M | $585.7M | $657.6M |
| Cash & Equivalents | $173.7M | $203.7M | $232.2M | $250.3M |
| Accounts Receivable | $121.8M | $146.2M | $164.6M | $171.0M |
| Prepaid Expenses | $30.2M | $26.7M | $39.7M | $40.7M |
| Other Current Assets | $147.6M | $223.4M | $149.2M | $195.7M |
| Long-Term Assets | $227.6M | $212.6M | $387.8M | $437.5M |
| PP&E (Net) | $47.4M | $32.6M | $30.3M | $23.2M |
| Intangibles | $12.8M | $9.7M | $6.8M | $4.3M |
| Goodwill | $7.4M | $7.4M | $7.4M | $7.4M |
| Operating Leases | $33.8M | $22.4M | $41.0M | $46.0M |
| Other LT Assets | $126.2M | $140.5M | $302.3M | $356.6M |
| Total Assets | $700.9M | $812.6M | $973.5M | $1.10B |
| Current Liabilities | $352.2M | $389.2M | $428.4M | $467.3M |
| Accounts Payable | $2.8M | $988.0K | $1.3M | $1.2M |
| Current Leases | $13.1M | $11.9M | $9.7M | $7.3M |
| Deferred Revenue | $293.7M | $333.3M | $371.5M | $401.1M |
| Other Current Liab | $0 | $0 | $0 | $0 |
| Long-Term Liabilities | $59.6M | $55.2M | $68.0M | $66.6M |
| LT Operating Leases | $29.1M | $16.9M | $37.5M | $45.0M |
| Other LT Liab | $7.0M | $6.7M | $6.3M | $5.3M |
| Total Liabilities | $411.8M | $444.4M | $496.4M | $533.9M |
| Shareholders' Equity | $289.1M | $368.2M | $477.1M | $561.2M |
| Paid-In Capital | $512.5M | $597.9M | $664.9M | $731.8M |
| Retained Earnings | $-221.4M | $-228.1M | $-189.2M | $-166.7M |
| AOCI | $-1.9M | $-1.7M | $1.4M | $-4.0M |
| Total L&E | $700.9M | $812.6M | $973.5M | $1.10B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $108.0M | $151.6M | $173.7M | $198.3M |
| Non-Cash Adjustments | $54.1M | $18.0M | $2.7M | $66.7M |
| Working Capital Changes | $36.8M | $75.0M | $67.7M | $44.4M |
| Cash from Operations | $198.9M | $244.6M | $244.1M | $309.4M |
| Capital Expenditures | $15.4M | $8.8M | $12.3M | $5.0M |
| Cash from Investing | $145.1M | $-73.2M | $-71.4M | $-105.9M |
| Share Buybacks | $317.3M | $170.8M | $139.9M | $183.4M |
| Cash from Financing | $-306.0M | $-141.5M | $-145.7M | $-185.4M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $37.9M | $29.9M | $27.0M | $18.1M |
| Beginning Cash | $138.5M | $176.4M | $206.4M | $233.4M |
| Ending Cash | $176.4M | $206.4M | $233.4M | $251.5M |
Frequently Asked Questions
How does QUALYS, INC. make money?
The company's revenue is driven by its core Vulnerability Management platform which scans infrastructure for threats, Application Security Testing services that assess code integrity, and Compliance Automation tools ensuring adherence to global standards like GDPR and PCI-DSS.
What are the main risks for QLYS?
Customers face the risk of rapid technology obsolescence as the company transitions from legacy hardware-based scanning to cloud-native models. Dependence on large enterprise contracts exposes the business to significant concentration risk if a major client reduces spending due to economic downturns. Intense competition from hyperscalers and new entrants could erode pricing power in the security services market.
What is QLYS's competitive advantage?
Qualys maintains a dominant market share with a massive installed base of over 40 million assets scanned, creating high switching costs. The company's continuous innovation in cloud-native architecture allows it to scale security coverage faster than traditional on-premise competitors while maintaining superior gross margins.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.