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1. Company Snapshot

1.a. Company Description

Qualys, Inc.provides cloud-based information technology (IT), security, and compliance solutions in the United States and internationally.The company offers Qualys Cloud Apps, which includes Vulnerability Management; Vulnerability Management, Detection and Response; Threat Protection; Continuous Monitoring; Patch Management; Multi-Vector Endpoint Detection and Response; Certificate Assessment; SaaS Detection and Response; Secure Enterprise Mobility; Policy Compliance; Security Configuration Assessment; PCI Compliance; File Integrity Monitoring; Security Assessment Questionnaire; Out of-Band Configuration Assessment; Web Application Scanning; Web Application Firewall; Global Asset Inventory; Cybersecurity Asset Management; Certificate Inventory; Cloud Inventory; Cloud Security Assessment; and Container Security.


Its integrated suite of IT, security, and compliance solutions delivered on its Qualys Cloud Platform enables customers to identify and manage IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend and implement remediation actions, and verify the implementation of such actions.The company also provides asset tagging and management, reporting and dashboards, questionnaires and collaboration, remediation and workflow, big data correlation and analytics engine, and alerts and notifications, which enable integrated workflows, management and real-time analysis, and reporting across IT, security, and compliance solutions.The company offers its solutions through its sales teams, as well as through its network of channel partners, such as security consulting organizations, managed service providers, resellers, and consulting firms.


It serves enterprises, government entities, and small and medium-sized businesses in various industries, including education, financial services, government, healthcare, insurance, manufacturing, media, retail, technology, and utilities.The company was incorporated in 1999 and is headquartered in Foster City, California.

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1.b. Last Insights on QLYS

Qualys, Inc.'s recent performance has been impacted by insider selling activity, with CFO Joo Mi Kim selling 4,753 shares on January 2nd and 6,799 shares on February 4th. Despite Q4 2025 earnings surpassing expectations, with revenue growth of 10% year-over-year, concerns may arise from increasing expenses. However, the company's $200 million increase to its share repurchase program is a positive move, reducing outstanding shares and benefiting shareholders. Additionally, Qualys' expanding partnership with the San Francisco Unicorns and growing VMDR traction may contribute to its growth.

1.c. Company Highlights

2. Qualys' Strong Q4 Results Driven by Cybersecurity Innovation

Qualys reported a robust fourth quarter, with revenues growing 10% to $669.1 million for the full year, and adjusted EBITDA margin reaching 47%. Net income and EPS grew 13% and 15% to $257.8 million and $7.07 per diluted share, respectively. The actual EPS for Q4 came out at $1.87, beating estimates of $1.78. The strong financial performance was driven by the company's differentiated new products, including Cybersecurity Asset Management, Patch Management, and TotalCloud, which increased their contribution to bookings in 2025.

Publication Date: Feb -08

📋 Highlights
  • Annual Revenue Growth:: Full-year 2025 revenue reached $669.1 million, up 10% YoY, with 2026 guidance of $717–725 million (7–8% growth).
  • Profitability Metrics:: Adjusted EBITDA margin hit 47% in 2025, with 2026 guidance of mid-40s (slight contraction from prior year).
  • Net Income & EPS:: Net income rose 13% to $257.8 million, and EPS grew 15% to $7.07 per diluted share in 2025.
  • Product Contributions:: Cybersecurity Asset Management, Patch Management, and TotalCloud drove 2025 bookings and are expected to accelerate in 2026.
  • Strategic Investments:: Prioritizing sales/marketing growth over engineering/G&A, with QFlex enabling phased platform adoption for customers.

Guidance and Outlook

For the full year 2026, Qualys expects revenue to be in the range of $717 million to $725 million, representing a growth rate of 7% to 8%. The company plans to prioritize investments in sales and marketing, with more modest increases in engineering and G&A. The guidance is informed by what the company is seeing in the pipeline today and what it is expecting, assuming similar gross dollar retention as in previous years.

Innovation and Growth Drivers

Qualys is driving growth through its innovative solutions, including agentic AI capabilities, which enable customers to achieve different tasks quickly and accurately. The company's ETM (Enterprise Threat Management) product is a key area of focus, with early adopters showing encouraging results. As Sumedh Thakar, President and CEO, noted, "We're excited about our QFlex offerings, which allow customers to consolidate Qualys capabilities on a single platform at their pace."

Valuation Metrics

Qualys' current valuation metrics indicate a P/E Ratio of 20.01, P/B Ratio of 7.07, and P/S Ratio of 5.98. The EV/EBITDA ratio stands at 15.93, suggesting a reasonable valuation given the company's growth prospects. With a ROIC of 28.08% and ROE of 37.83%, Qualys demonstrates strong profitability. The market appears to have priced in a moderate growth rate, with analysts estimating revenue growth at 7.0% for next year.

Future Prospects

The company's focus on disrupting the traditional CTEM model, unifying CTEM with exploit confirmation, risk quantification, and automated remediation powered by an agentic AI risk fabric, positions it well for future growth. With a balanced approach to long-term growth and profitability, Qualys is confident in its ability to drive value for its customers and shareholders.

3. NewsRoom

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CFO Sells 6,799 Shares of Qualys Worth $873,000

Mar -11

Source: fool.com

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Media Alert: Qualys Extends Major Partner Status with San Francisco Unicorns Through 2027, Championing the Growth of U.S. Cricket

Mar -09

Source: prnewswire.com

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American Century Companies Inc. Purchases 79,557 Shares of Qualys, Inc. $QLYS

Mar -09

Source: defenseworld.net

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Zscaler vs. Qualys: Which Cybersecurity Stock Has the Edge?

Feb -19

Source: zacks.com

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Is Qualys Stock a Buy or Sell After Its CFO Dumped Nearly 7,000 Shares?

Feb -09

Source: fool.com

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SaaSmageddon Is Here – and Not All Software Stocks Will Survive

Feb -09

Source: investorplace.com

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Qualys (NASDAQ:QLYS) Reaches New 1-Year Low After Insider Selling

Feb -07

Source: defenseworld.net

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Qualys Q4 Earnings Surpass Expectations, Revenues Increase Y/Y

Feb -06

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.14%)

6. Segments

Direct

Expected Growth: 9%

Qualys' 9% growth driven by increasing demand for vulnerability management and compliance solutions, expansion into cloud security, and growing adoption of its platform by large enterprises, particularly in highly regulated industries such as finance and healthcare.

Partner

Expected Growth: 7%

Qualys' partner growth is driven by increasing demand for cloud-based security solutions, expansion into new markets, and strategic partnerships. The company's vulnerability management and compliance solutions are in high demand, particularly among large enterprises. Additionally, Qualys' strong brand recognition, robust sales and marketing efforts, and expanding channel partner network contribute to its growth.

7. Detailed Products

Vulnerability Management

Identify and prioritize vulnerabilities across your global hybrid-IT environment, including on-premises, cloud, and containerized environments.

Compliance

Simplify compliance and auditing with automated configuration and vulnerability scanning, and reporting for major regulations such as PCI DSS, HIPAA, and CIS.

Web Application Scanning

Identify vulnerabilities in web applications, including those built in-house or by third-party vendors, and prioritize remediation efforts.

Indication of Compromise (IOC)

Detect and respond to advanced threats in real-time, using behavioral analysis and machine learning to identify malicious activity.

Cloud Security

Monitor and secure cloud infrastructure, including AWS, Azure, and Google Cloud, with real-time visibility and automated remediation.

Container Security

Secure containerized environments, including Docker and Kubernetes, with vulnerability scanning, configuration assessment, and runtime protection.

File Integrity Monitoring (FIM)

Monitor file systems and detect unauthorized changes, ensuring the integrity of critical files and systems.

8. Qualys, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Qualys, Inc. operates in a niche market, providing cloud-based security and compliance solutions. While there are substitutes available, they are not as comprehensive as Qualys' offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Qualys, Inc. has a diverse customer base, including large enterprises and small businesses. However, the company's solutions are critical to its customers' security and compliance needs, reducing their bargaining power.

Bargaining Power Of Suppliers

Qualys, Inc. has a diversified supply chain, and its suppliers do not have significant bargaining power. The company's strong financial position also reduces its dependence on suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the cybersecurity industry. Qualys, Inc. has a strong brand reputation and a comprehensive suite of solutions, making it difficult for new entrants to compete.

Intensity Of Rivalry

The cybersecurity industry is highly competitive, with several established players competing for market share. Qualys, Inc. faces intense competition from companies like Tenable, Rapid7, and CyberArk, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.24%
Debt Cost 3.95%
Equity Weight 92.76%
Equity Cost 6.47%
WACC 6.28%
Leverage 7.81%

11. Quality Control: Qualys, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Dropbox

A-Score: 5.9/10

Value: 6.2

Growth: 7.9

Quality: 7.3

Yield: 0.0

Momentum: 7.0

Volatility: 7.0

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F5

A-Score: 5.3/10

Value: 3.3

Growth: 6.6

Quality: 9.0

Yield: 0.0

Momentum: 5.0

Volatility: 7.7

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Qualys

A-Score: 4.8/10

Value: 1.9

Growth: 7.9

Quality: 9.2

Yield: 0.0

Momentum: 4.0

Volatility: 5.7

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A-Score: 4.7/10

Value: 5.8

Growth: 6.9

Quality: 6.8

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

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A-Score: 4.1/10

Value: 4.5

Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

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Varonis Systems

A-Score: 3.4/10

Value: 5.0

Growth: 6.9

Quality: 4.1

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

96.44$

Current Price

96.44$

Potential

-0.00%

Expected Cash-Flows