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Qualys
(NASDAQ:QLYS)
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Rating:80Outperform
Price Target:
$249.00
▲(40.94% Upside)
Action:Reiterated
Date:08/05/26
QLYS scores well primarily due to strong financial quality (high margins, strong free cash flow, low leverage) and supportive technical momentum (price above key moving averages with positive MACD). The score is tempered by a valuation that is not cheap (P/E ~25.85, no dividend) and the key fundamental risk of slower recent revenue growth, despite the earnings-call-driven positive catalyst of raised guidance and solid profitability.
Positive Factors
Recurring SaaS model
Subscription-based SaaS revenue creates recurring customer relationships and allows Qualys to expand accounts through additional assets, modules, and usage. Cloud delivery also supports centralized updates and scalable service economics, giving the company a durable foundation for retention and incremental growth.
Negative Factors
Revenue growth deceleration
The sharp slowdown in recent revenue growth weakens the durability of Qualys's expansion story, even though historical scale and profitability remain strong. Slower growth can limit operating leverage, reduce room for strategic investment, and make sustained earnings expansion more dependent on efficiency.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SaaS model
Subscription-based SaaS revenue creates recurring customer relationships and allows Qualys to expand accounts through additional assets, modules, and usage. Cloud delivery also supports centralized updates and scalable service economics, giving the company a durable foundation for retention and incremental growth.
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.
Data provided by:
The Fly
The FlyQualys (QLYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.50B
Dividend YieldN/A
Average Volume (3M)746.27K
Price to Earnings (P/E)37.4
Beta (1Y)1.23
Revenue Growth10.71%
EPS Growth14.48%
CountryUS
Employees2,718
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)5.80
Shares Outstanding34,595,000
10 Day Avg. Volume719,049
30 Day Avg. Volume746,273
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 Cap0.59
Enterprise Value/Revenue6.31
Enterprise Value/Gross Profit7.56
Enterprise Value/Ebitda16.20
Forecast
1Y Price Target
$183.07Price Target Upside3.62% Upside
Rating ConsensusHold
Number of Analyst Covering17
EPS Forecast (FY)7.83
Revenue Forecast (FY)$735.34M
Qualys Business Overview & Revenue Model
Company Description
Qualys, Inc., founded in 1999 and headquartered in Foster City, California, specializes in delivering cloud-based solutions for information technology (IT) management, cybersecurity, and regulatory compliance to organizations globally. The company...
How the Company Makes Money
Qualys primarily makes money by selling subscriptions to its cloud-based security and compliance platform. Revenue is generated through recurring SaaS fees that provide customers access to specific Qualys applications/modules (e.g., vulnerability ...
Qualys Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported solid top-line growth (Q2 revenues +11%), improved profitability (46% adjusted EBITDA margin), strong free cash flow, raised full-year revenue and EPS guidance, meaningful product innovation (AI-native ROC agents) and customer upsells. Several metrics showed momentum — billings, net dollar expansion (105%), LTM current billings acceleration — and management highlighted strategic wins, partner-led growth and a large market opportunity (including federal). Offsetting factors include continued investment-driven OpEx increases, executive turnover, the early-stage nature of many ETM conversions (longer sales cycles and timing uncertainty), modest decline in VMDR mix, and a conservative billings assumption for H2 despite Q2 strength. Overall, the positives (revenue beat, guidance raise, product differentiation and healthy cash generation) outweigh the manageable execution and timing risks.Positive Updates
Revenue Growth
Q2 revenues grew 11% year-over-year to $182.2 million.
Negative Updates
Executive Turnover
Recent departure of the company's CISO and the General Manager of the ETM business; leadership changes announced (Shailesh Athalye promoted to Chief Product Solutions Officer; new CISO hired).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Q2 revenues grew 11% year-over-year to $182.2 million.
Read all positive updates
Company Guidance
Qualys raised its 2026 guidance to revenues of $732–$738 million (growth 9–10%, up from prior $721–$727M) and Q3 revenue of $185.5–$187.5M (9–10% growth), assuming net dollar expansion remains near the current ~105% with moderate new‑business contribution; it expects full‑year adjusted EBITDA margin in the mid‑40s, operating expenses to increase in the low‑teens, free cash flow margin in the low‑40s, full‑year EPS of $7.74–$7.88 (up from $7.44–$7.65) and Q3 EPS of $1.91–$1.98, with capex of $8–$12M for FY2026 and $1–$2.5M for Q3; management also assumes second‑half current‑billings baseline growth of 7–8% (implying full‑year CCB roughly in line with the 9–10% revenue guide), noting LTM current billings ran ~10% and Q2 results included revenue $182.2M (+11%), adjusted EBITDA $83.8M (46% margin) and FCF $55.9M (31% margin).Qualys Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 703.99M | 669.13M | 607.57M | 554.46M | 489.72M | 411.17M |
| Gross Profit | 587.50M | 554.36M | 496.09M | 446.97M | 386.94M | 321.73M |
| EBITDA | 274.20M | 261.32M | 228.34M | 205.64M | 168.32M | 125.29M |
| Net Income | 206.54M | 198.32M | 173.68M | 151.59M | 107.99M | 70.96M |
Balance Sheet | ||||||
| Total Assets | 1.07B | 1.10B | 973.54M | 812.62M | 700.94M | 814.56M |
| Cash, Cash Equivalents and Short-Term Investments | 426.29M | 445.94M | 381.42M | 425.56M | 321.33M | 405.29M |
| Total Debt | 53.40M | 97.23M | 47.22M | 28.74M | 42.18M | 48.52M |
| Total Liabilities | 511.95M | 533.93M | 496.42M | 444.44M | 411.81M | 377.85M |
| Stockholders Equity | 562.22M | 561.15M | 477.12M | 368.17M | 289.13M | 436.71M |
Cash Flow | ||||||
| Free Cash Flow | 313.96M | 304.41M | 231.76M | 235.82M | 174.87M | 174.96M |
| Operating Cash Flow | 320.95M | 309.40M | 244.09M | 244.60M | 198.85M | 200.62M |
| Investing Cash Flow | -34.19M | -105.92M | -71.43M | -73.17M | 145.07M | -29.53M |
| Financing Cash Flow | -230.45M | -185.40M | -145.65M | -141.49M | -306.03M | -107.89M |
Qualys Technical Analysis
Positive
176.67
Price Trends
184.32
Positive
162.85
Positive
132.21
Positive
Market Momentum
6.07
Negative
66.66
Neutral
85.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QLYS, the sentiment is Positive. The current price of 176.67 is below the 20-day moving average (MA) of 193.49, below the 50-day MA of 184.32, and above the 200-day MA of 132.21, indicating a bullish trend. The MACD of 6.07 indicates Negative momentum. The RSI at 66.66 is Neutral, neither overbought nor oversold. The STOCH value of 85.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $7.50B | 37.36 | 37.17% | ― | 10.71% | 14.48% | |
80 Outperform | $263.73B | 7,317.33 | 1.29% | ― | 24.30% | ― | |
70 Outperform | $4.91B | 712.30 | 2.41% | ― | 9.93% | ― | |
65 Neutral | $381.47B | 19.47 | 42.58% | 1.59% | 21.62% | 45.95% | |
65 Neutral | $8.35B | -23.76 | -23.16% | ― | 21.09% | 23.48% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $1.00B | 48.92 | 12.33% | ― | 0.07% | -33.38% |
* Technology Sector Average
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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.