Qualys (3L7A) Q2 2026 Earnings Report

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.

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).