We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Qualys reported Q4 2025 EPS of $1.87, beating estimates, while revenues rose 10% year over year.
Channel partners drove growth at Qualys, with sales up 17% and accounting for 51% of Q4 revenues.
QLYS' margins expanded and generated strong cash flow, and authorized more buybacks.
Qualys, Inc. (QLYS - Free Report) ended 2025 on a strong note, reporting better-than-expected results for the fourth quarter of 2025. Both top and bottom lines also marked a significant year-over-year improvement.
Qualys came out with fourth-quarter 2025 earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.78 by 5.35%. Quarterly earnings also came above management’s guidance range of $1.73-$1.80 and increased 16.9% from the year-ago quarter’s earnings of $1.60.
Qualys’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.31%.
Qualys posted revenues of $175.3 million for the fourth quarter of 2025, surpassing the Zacks Consensus Estimate by 1.30%. The top line grew 10% from the year-ago quarter’s revenues of $159.2 million.
During the fourth quarter, sales from channel partners surged 17%, outpacing the 4% sales growth recorded in direct selling. Channel partners contributed 51% to total revenues in the quarter, up from 48% a year ago, while direct selling accounted for the remaining 49%.
Geographically, U.S. sales grew 6% year over year, contributing approximately 56% to total revenues, while international sales rose 15% and accounted for 44%. Qualys’ net dollar expansion rate remained steady at 103%.
QLYS’ non-GAAP gross profit increased 12% year over year to $149 million, with the non-GAAP gross margin expanding to 85% compared with 84% in the year-ago quarter. Non-GAAP operating income rose 13% to $80.1 million, representing a margin of 46%, up from 44% a year earlier. The margin improvement highlights Qualys’ strong operating leverage despite higher investments in sales and marketing, which grew 16.7%.
Adjusted EBITDA rose 11% year over year to $82.6 million. Adjusted EBITDA margin of 47% remained flat on a year-over-year basis.
Qualys’ Balance Sheet & Cash Flow
Qualys ended the quarter with $696.8 million in cash, cash equivalents and marketable securities, up from $663.6 million in the previous quarter. The company generated operating cash flow of $75.7 million and free cash flow of $74.9 million in the fourth quarter. In full-year 2025, it generated operating cash flow and free cash flow of $309.4 million and $304.4 million, respectively.
Qualys repurchased 328,000 shares worth $44.7 million during the fourth quarter and has repurchased a cumulative 10.7 million shares valued at $1.2 billion since the program’s inception in February 2018. The company revealed that its board of directors has authorized another $200 million for the share repurchase program. This brought the total available authorization amount to $360.5 million.
Qualys Initiates Q1 & FY26 Guidance
Qualys initiated guidance for the first quarter and full-year 2026. The company expects revenues between $172.5 million and $174.5 million for the first quarter, indicating year-over-year growth of 8-9%. It projects non-GAAP earnings in the range of $1.76-$1.83. The Zacks Consensus Estimate for revenues and EPS is currently pegged at $173.6 million and $1.77, respectively.
For 2026, Qualys expects revenues between $717 million and $725 million, implying year-over-year growth in the range of 7-8%. The company forecasts non-GAAP earnings for 2026 to be in the band of $7.17-$7.45 per share. The Zacks Consensus Estimate for 2026 revenues and EPS is currently pegged at $717.9 million and $7.43, respectively.
The Zacks Consensus Estimate for Amphenol’s 2026 earnings has been revised downward by 7 cents over the past seven days to $4.32 per share, calling for an increase of 29.3% year over year. Amphenol shares have surged 81.2% over the past year.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has moved northward by 14 cents in the past 30 days to $32.90 per share, implying 296.9% year-over-year growth. Micron Technology shares have soared 292% over the past year.
The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings has moved upward by 21 cents over the past 30 days to $9.97 per share, indicating a year-over-year increase of 28%. Analog Devices shares have rallied 54.2% over the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Qualys Q4 Earnings Surpass Expectations, Revenues Increase Y/Y
Key Takeaways
Qualys, Inc. (QLYS - Free Report) ended 2025 on a strong note, reporting better-than-expected results for the fourth quarter of 2025. Both top and bottom lines also marked a significant year-over-year improvement.
Qualys came out with fourth-quarter 2025 earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.78 by 5.35%. Quarterly earnings also came above management’s guidance range of $1.73-$1.80 and increased 16.9% from the year-ago quarter’s earnings of $1.60.
Qualys’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.31%.
Qualys posted revenues of $175.3 million for the fourth quarter of 2025, surpassing the Zacks Consensus Estimate by 1.30%. The top line grew 10% from the year-ago quarter’s revenues of $159.2 million.
Qualys, Inc. Price, Consensus and EPS Surprise
Qualys, Inc. price-consensus-eps-surprise-chart | Qualys, Inc. Quote
Qualys’ Q4 in Detail
During the fourth quarter, sales from channel partners surged 17%, outpacing the 4% sales growth recorded in direct selling. Channel partners contributed 51% to total revenues in the quarter, up from 48% a year ago, while direct selling accounted for the remaining 49%.
Geographically, U.S. sales grew 6% year over year, contributing approximately 56% to total revenues, while international sales rose 15% and accounted for 44%. Qualys’ net dollar expansion rate remained steady at 103%.
QLYS’ non-GAAP gross profit increased 12% year over year to $149 million, with the non-GAAP gross margin expanding to 85% compared with 84% in the year-ago quarter. Non-GAAP operating income rose 13% to $80.1 million, representing a margin of 46%, up from 44% a year earlier. The margin improvement highlights Qualys’ strong operating leverage despite higher investments in sales and marketing, which grew 16.7%.
Adjusted EBITDA rose 11% year over year to $82.6 million. Adjusted EBITDA margin of 47% remained flat on a year-over-year basis.
Qualys’ Balance Sheet & Cash Flow
Qualys ended the quarter with $696.8 million in cash, cash equivalents and marketable securities, up from $663.6 million in the previous quarter. The company generated operating cash flow of $75.7 million and free cash flow of $74.9 million in the fourth quarter. In full-year 2025, it generated operating cash flow and free cash flow of $309.4 million and $304.4 million, respectively.
Qualys repurchased 328,000 shares worth $44.7 million during the fourth quarter and has repurchased a cumulative 10.7 million shares valued at $1.2 billion since the program’s inception in February 2018. The company revealed that its board of directors has authorized another $200 million for the share repurchase program. This brought the total available authorization amount to $360.5 million.
Qualys Initiates Q1 & FY26 Guidance
Qualys initiated guidance for the first quarter and full-year 2026. The company expects revenues between $172.5 million and $174.5 million for the first quarter, indicating year-over-year growth of 8-9%. It projects non-GAAP earnings in the range of $1.76-$1.83. The Zacks Consensus Estimate for revenues and EPS is currently pegged at $173.6 million and $1.77, respectively.
For 2026, Qualys expects revenues between $717 million and $725 million, implying year-over-year growth in the range of 7-8%. The company forecasts non-GAAP earnings for 2026 to be in the band of $7.17-$7.45 per share. The Zacks Consensus Estimate for 2026 revenues and EPS is currently pegged at $717.9 million and $7.43, respectively.
Qualys’ Zacks Rank and Stocks to Consider
Currently, Qualys carries a Zacks Rank #3 (Hold).
Amphenol (APH - Free Report) , Micron Technology (MU - Free Report) and Analog Devices (ADI - Free Report) are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Amphenol and Micron Technology sport a Zacks Rank #1 (Strong Buy) each at present, while Analog Devices carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Amphenol’s 2026 earnings has been revised downward by 7 cents over the past seven days to $4.32 per share, calling for an increase of 29.3% year over year. Amphenol shares have surged 81.2% over the past year.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has moved northward by 14 cents in the past 30 days to $32.90 per share, implying 296.9% year-over-year growth. Micron Technology shares have soared 292% over the past year.
The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings has moved upward by 21 cents over the past 30 days to $9.97 per share, indicating a year-over-year increase of 28%. Analog Devices shares have rallied 54.2% over the past year.