QLYS - Qualys, Inc. Analysis

One-Sentence Summary of Key Findings: Qualys, Inc. (QLYS) is a established cloud cybersecurity and compliance provider with robust margins (TTM profit margin ~29%), consistent revenue growth (~10% YoY in FY2025), over 10,000 customers including many large enterprises, and a history of innovation in vulnerability management, though it faces intense competition and holds a consensus "Hold/Neutral" analyst rating with varying price targets.

Company Overview and History

Overview (Fact): Qualys, Inc. provides a cloud-based platform for IT security, compliance, and asset management solutions, including vulnerability management, cloud security (TotalCloud), application security, endpoint detection, patch management, and Enterprise TruRisk Management (ETM). It serves enterprises, governments, and SMBs globally across industries like financial services, healthcare, manufacturing, and government. Headquartered in Foster City, California, with ~2,625-2,683 employees.

History (Fact): Founded in 1999 by Philippe Langlois and Gilles Samoun (with early investment and later CEO role by Philippe Courtot). Launched QualysGuard in 2000 as one of the first SaaS vulnerability management tools. Went public on Nasdaq (QLYS) in September 2012, raising ~$87.5M net. Key milestones include cloud platform and agent launch (2015), CEO transition to Sumedh Thakar (2021), ETM release (2023), Agent Val AI tool (2026), and multiple product expansions in cloud/container security and AI-driven risk management. Partnerships with major MSSPs like IBM, Dell SecureWorks, BT, and others.

Interpretation: Qualys positions itself as a pioneer in continuous threat exposure management and pre-breach risk quantification, evolving from basic scanning to an integrated platform that aims to consolidate multiple security tools.

Uncertainty: Exact customer segmentation (e.g., proportion of large enterprises vs. SMBs) varies slightly across sources; long-term impact of AI features and competitive differentiation remains to be fully proven.

Links for more information: Official Website | Wikipedia | Investor Relations

Stock Performance and Company Financials

Historical Stock Performance (Fact - Closing Prices and Returns)

YearAverage PriceYear Close (approx.)Annual % Change
2023$139.89$196.28+74.89%
2024$149.68$140.22-28.56%
2025$135.21$132.90-5.22%
2026 (YTD through early Aug)$111.87 (partial)Varies (recent closes ~$155-161 range in late July/early Aug data)+21.19% YTD

Additional Performance Metrics (Fact): 1-Year Return ~18.6%; 3-Year ~12.1%; 5-Year ~54.9%. 52-week range (historical): ~$74.51 - $167.86. Beta (5Y): 0.58 (lower volatility than market). Note: Historical data only; past performance does not guarantee future results.

Data Limitation: Stock prices and returns are historical snapshots from public sources (e.g., Macrotrends, Yahoo Finance) as of early August 2026 searches; intraday or exact daily closes excluded per guidelines. Market cap estimates ranged ~$5.1B-$5.67B in recent data points.

Links: Yahoo Finance Historical Data | Macrotrends History

Company Financials (Fact - Key Reported Metrics)

MetricFY 2025 (Full Year)Q4 2025TTM (approx.)
Revenue$669.1 million (+10% YoY)$175.3 million (+10% YoY)$684.86 million
GAAP Net Income$198.3 million$53.2 million$201.43 million
GAAP Diluted EPS$5.44$1.47$5.58
Non-GAAP Net Income$257.8 million$67.7 millionN/A
Gross Margin (GAAP)83%83%N/A
Operating Margin (GAAP)33%34%N/A
Profit Margin~30%30%29.41%
Adjusted EBITDA$313.4 million$82.6 millionN/A
Operating Cash Flow$309.4 million (+27% YoY)$75.7 millionN/A
Cash (mrq)N/AN/A$471.35 million
Total Debt/EquityN/AN/A9.17%

Additional Highlights (Fact): Strong balance sheet with significant cash and low debt. High ROE (~37.72% TTM) and ROA (~13.85% TTM). Q2 2026 results (reported ~Aug 4, 2026) showed beats on EPS/revenue estimates with raised FY2026 guidance (e.g., non-GAAP EPS $7.74-$7.88).

Interpretation: Consistent double-digit revenue growth and high margins reflect efficient SaaS model and platform adoption (e.g., ETM); cash generation supports share repurchases ($200M increase announced in Q4 2025).

Uncertainty: Future growth rates (guidance ~7-9%) depend on macro environment, competition, and successful monetization of new AI/features; non-GAAP adjustments can vary.

Data Limitation/Assumption: Financials primarily from company press releases (FY2025) and Yahoo aggregates (TTM); Q2 2026 details partial from news. Forward guidance subject to risks disclosed by company. No reconciliation of non-GAAP to GAAP provided here.

Links: Yahoo Finance Key Statistics | Q4/FY2025 Earnings Release

Analyst Ratings

Consensus (Fact): Overall consensus rating is Hold/Neutral (average score ~2.24 on 5-point scale where 1=Strong Buy, 5=Sell). Based on ~18-31 analysts. Average 12-month price target ~$133-$142 (range: Low $90, High $190). Recent actions include multiple PT raises (e.g., JPM to $150 Neutral, Truist to $160 Hold, Scotiabank upgrade to Buy $190) but also maintains like Morgan Stanley Underweight.

Recent Analyst Actions (Sample - Fact)

DateAnalystRatingPrice TargetAction
Jul 27, 2026JP MorganNeutral$150 (from $139)Maintain/Raise
Jul 21, 2026TruistHold$160 (from $85)Maintain/Raise
Jul 21, 2026Morgan StanleyUnderweight$115-$130Maintain
Jul 16, 2026RBCSector Perform (Hold)$145 (from $90)Maintain/Raise
Jul 13, 2026TD CowenHold$145 (from $90)Maintain
Jul 6, 2026ScotiabankBuy/Outperform$190Upgrade

Interpretation: Mixed sentiment reflects strong fundamentals and recent beats offset by valuation concerns or competitive pressures in cybersecurity.

Uncertainty: Ratings and targets change frequently; distribution (e.g., ~5 Buy, 15 Hold, 1 Sell in one poll) varies by source and timing.

Data Limitation: Aggregated from multiple sources (MarketBeat, Yahoo, Investing.com, TipRanks) as of early August 2026; individual analyst views subjective and not exhaustive.

Links: Yahoo Analyst Insights | MarketBeat Consensus | Seeking Alpha

Customers and Competitors

Customers (Fact)

Interpretation: Broad enterprise adoption supports recurring revenue stability; partnerships extend reach especially in public sector and managed services.

Uncertainty: Specific revenue concentration or churn rates not publicly detailed in aggregates; "majority of Fortune 100" claims are company-asserted.

Links: Customer Success Stories | Customer Database Examples

Competitors (Fact)

CompetitorKey Overlap AreasNotes
Tenable (TENB)Vulnerability management, exposure managementDirect rival in VM/ETM space
Rapid7 (RPD)Vulnerability mgmt, cloud/endpoint securityInsightVM and broader platform
CrowdStrike (CRWD)Endpoint detection, cloud securityFalcon platform competition
Palo Alto Networks (PANW)Cloud workload, CNAPP, broader securityCortex Xpanse etc.
Microsoft (MSFT)Defender for Cloud, hybrid securityEnterprise bundling advantage
Others: BeyondTrust, Tanium, Sophos, Check Point, VaronisPatch mgmt, EDR, data securityNiche or complementary

Interpretation: Highly competitive cybersecurity market; Qualys differentiates via unified cloud platform and risk quantification (ETM), but larger players may have scale advantages.

Uncertainty: Market share shifts dynamic; exact competitive win/loss data proprietary.

Links: Competitor Comparisons | MarketBeat Peers

Recent News (as of early August 2026 searches)

Fact: News reflects strong execution on earnings and innovation but tempered by broader analyst caution.

Data Limitation: News is time-sensitive; verify latest on financial sites as markets and events evolve rapidly.

Overall Data Limitations and Assumptions: All information compiled from public web sources (Yahoo Finance, company releases, Wikipedia, analyst sites) accessed via searches on/around August 5, 2026. Financial figures are reported or TTM aggregates; forward-looking statements/guidance carry inherent uncertainties and company-specific risks (e.g., competition, macro). Stock performance excludes live/current prices. Analyst views are snapshots and not recommendations. Cross-verify with primary sources for investment decisions. No endorsement of any security.