Qualys Announces Third Quarter 2026 Financial Results

Nine-month common-stock repurchases totaled $185.628 million, compared with $138.754 million in the same period of 2025.

Rhea-AI Summary

Qualys (NASDAQ: QLYS) reported third-quarter 2026 revenue of $188.0 million, up year over year, and raised its full-year outlook. Revenue increased 11% from $169.9 million for the quarter ended September 30. GAAP net income rose 14% to $57.2 million, with diluted earnings of $1.62 versus $1.39 a year earlier. Operating cash flow increased 13% to $101.8 million.

Qualys now expects 2026 revenue of $736.9 million to $738.9 million, versus $732.0 million to $738.0 million previously, and GAAP diluted earnings of $6.08 to $6.15, up from $5.76 to $5.90. Fourth-quarter revenue guidance is $191.0 million to $193.0 million, representing 9% to 10% year-over-year growth. Third-quarter GAAP gross margin fell to 83% from 84%, while operating margin remained 35%. Cash and cash equivalents reached $357.191 million at September 30, compared with $250.258 million at December 31, 2025.

19 points · 1 major

PositiveiHow this balance works

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0 major · 6 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance raised to $736.9 million–$738.9 million from $732.0 million–$738.0 million, representing 10% growth over 2025.
• Moderate pointThird-quarter revenue rose 11% to $188.0 million from $169.9 million a year earlier.
• Moderate pointThird-quarter GAAP net income increased 14% to $57.2 million; diluted earnings rose to $1.62 from $1.39.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter revenue expected at $191.0 million–$193.0 million, representing 9%–10% year-over-year growth.
• Moderate pointThird-quarter operating cash flow increased 13% to $101.8 million; revenue share rose to 54% from 53%.
• Moderate pointThird-quarter GAAP operating income rose 11% to $66.3 million, with operating margin unchanged at 35%.
• Moderate pointNine-month common-stock repurchases totaled $185.628 million, compared with $138.754 million in the same period of 2025.

12 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.2026 GAAP diluted earnings guidance raised to $6.08–$6.15 from $5.76–$5.90.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 non-GAAP diluted earnings guidance raised to $8.07–$8.14 from $7.74–$7.88.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter diluted earnings expected at $1.57–$1.64 GAAP and $2.05–$2.12 non-GAAP.
• Minor pointThird-quarter GAAP gross profit increased 10% to $156.7 million from $142.1 million a year earlier.
• Minor pointThird-quarter non-GAAP net income rose 11% to $74.8 million; diluted earnings increased to $2.12 from $1.86.
• Minor pointThird-quarter non-GAAP gross profit rose 10% to $159.3 million, with gross margin unchanged at 85%.
• Minor pointThird-quarter non-GAAP operating income increased 9% to $87.1 million from $80.0 million.
• Minor pointThird-quarter adjusted EBITDA, an adjusted earnings measure, increased 9% to $89.9 million from $82.6 million.
• Minor pointNine-month revenue increased to $545.862 million from $493.843 million in the same period of 2025.
• Minor pointNine-month GAAP net income rose to $160.222 million; diluted earnings increased to $4.53 from $3.97.
• Minor pointNine-month operating cash flow increased to $256.684 million from $233.741 million a year earlier.
• Minor pointCash and cash equivalents increased to $357.191 million at September 30 from $250.258 million at year-end 2025.

Negative

• Minor pointThird-quarter GAAP gross margin declined to 83% from 84% a year earlier.
• Minor pointThird-quarter non-GAAP operating margin fell to 46% from 47% a year earlier.
• Minor pointThird-quarter adjusted EBITDA margin declined to 48% from 49% a year earlier.
• Minor pointThird-quarter operating expenses increased to $90.397 million from $82.129 million a year earlier.
• Minor pointThird-quarter stock-based compensation, net of capitalized amounts, rose to $20.220 million from $19.447 million.
• Minor pointNine-month impairment charges included $1.967 million for non-marketable securities and $624,000 for property and equipment.

News Explained

For the first nine months, Qualys reported $185,628 thousand of cash used to repurchase common stock, with $65,615 thousand of option-exercise proceeds and $6,651 thousand of employee stock-plan issuance proceeds also recorded.

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Q3 Revenue Growth of 11% Year-Over-Year

Raises 2026 Revenue Guidance to $736.9-$738.9 million

FOSTER CITY, Calif., Nov. 9, 2026 /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leader in cloud-native cyber risk management, today announced financial results for the third quarter ended September 30, 2026. For the quarter, the Company reported revenues of $188.0 million, net income under United States Generally Accepted Accounting Principles ("GAAP") of $57.2 million, non-GAAP net income of $74.8 million, Adjusted EBITDA of $89.9 million, GAAP net income per diluted share of $1.62, and non-GAAP net income per diluted share of $2.12.

"In Q3, we delivered another quarter of strong revenue growth and profitability," said Sumedh Thakar, Qualys president and CEO. "Increasing adoption of our AI-native Risk Operations Center, driven by our partner-first strategy, reflects accelerating demand for a vendor-neutral platform that actually fixes security issues rather than just reporting them. These results distinguish our competitive position in pre-breach risk management and reinforce our confidence in long-term growth."

Third Quarter 2026 Financial Highlights

Revenues: Revenues for the third quarter of 2026 increased by 11% to $188.0 million compared to $169.9 million for the same quarter in 2025.

Gross Profit: GAAP gross profit for the third quarter of 2026 increased by 10% to $156.7 million compared to $142.1 million for the same quarter in 2025. GAAP gross margin was 83% for the third quarter of 2026 compared to 84% for the same quarter in 2025. Non-GAAP gross profit for the third quarter of 2026 increased by 10% to $159.3 million compared to $144.9 million for the same quarter in 2025. Non-GAAP gross margin was 85% for both the third quarter of 2026 and for the same quarter in 2025.

Operating Income: GAAP operating income for the third quarter of 2026 increased by 11% to $66.3 million compared to $60.0 million for the same quarter in 2025. As a percentage of revenues, GAAP operating income was 35% for both the third quarter of 2026 and for the same quarter in 2025. Non-GAAP operating income for the third quarter of 2026 increased by 9% to $87.1 million compared to $80.0 million for the same quarter in 2025. As a percentage of revenues, non-GAAP operating income was 46% for the third quarter of 2026 compared to 47% for the same quarter in 2025.

Net Income: GAAP net income for the third quarter of 2026 increased by 14% to $57.2 million, or $1.62 per diluted share, compared to $50.3 million, or $1.39 per diluted share, for the same quarter in 2025. As a percentage of revenues, GAAP net income was 30% for both the third quarter of 2026 and for the same quarter in 2025. Non-GAAP net income for the third quarter of 2026 increased by 11% to $74.8 million, or $2.12 per diluted share, compared to $67.4 million, or $1.86 per diluted share, for the same quarter in 2025. As a percentage of revenues, non-GAAP net income was 40% for both the third quarter of 2026 and for the same quarter in 2025.

Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the third quarter of 2026 increased by 9% to $89.9 million compared to $82.6 million for the same quarter in 2025. As a percentage of revenues, Adjusted EBITDA was 48% for the third quarter of 2026 compared to 49% for the same quarter in 2025.

Operating Cash Flow: Operating cash flow for the third quarter of 2026 increased by 13% to $101.8 million compared to $90.4 million for the same quarter in 2025. As a percentage of revenues, operating cash flow was 54% for the third quarter of 2026 compared to 53% for the same quarter in 2025.

Third Quarter 2026 Business Highlights

• Qualys introduced InstaScan, powered by Agent Insta in Enterprise TruRisk Management, delivering scanless vulnerability detection within minutes of advisory disclosure. By continuously correlating new advisories with existing asset, exposure, and threat telemetry, InstaScan eliminates the multi-day detection gap created by traditional scan cycles, enabling customers to begin validation and remediation before adversaries can act.
• Qualys advanced its TruRisk Eliminate capabilities with AI-powered Patch Reliability Scoring, wave-based autonomous remediation, and peer-to-peer patching, enabling organizations to rapidly remediate zero-day vulnerabilities and misconfigurations while maintaining operational stability with reduced dependency on centralized infrastructure.
• Qualys expanded TotalAI with governance capabilities that help CISOs reduce shadow AI, flag abnormal model behavior, and demonstrate that controls are working across development and runtime environments. Enhancements include discovery of AI agents and MCP servers, red-team testing against OWASP Top 10 and EU AI Act standards, and audit-ready evidence generation.
• Leading independent analysts recognized Qualys across multiple categories. Qualys received the highest score for best current offering in the 2026 Forrester Wave for Proactive Security Platforms, was named a Leader in the IDC MarketScape for Worldwide DAST, earned the highest-rated Champion designation in the Info-Tech Research Group Emotional Footprint for Vulnerability Management, and was named a Leader in the Frost and Sullivan Radar for Cloud Workload Protection Platforms.

Financial Performance Outlook

Based on information as of today, November 9, 2026, Qualys is issuing the following financial guidance for the fourth quarter and full year fiscal 2026. The Company emphasizes that the guidance is subject to various important cautionary factors referenced in the sections entitled "Legal Notice Regarding Forward-Looking Statements" and "Non-GAAP Financial Measures" below.

Fourth Quarter 2026 Guidance: Management expects revenues for the fourth quarter of 2026 to be in the range of $191.0 million to $193.0 million, representing 9% to 10% growth over the same quarter in 2025. GAAP net income per diluted share is expected to be in the range of $1.57 to $1.64, which assumes an effective income tax rate of 21%. Non-GAAP net income per diluted share is expected to be in the range of $2.05 to $2.12, which assumes a non-GAAP effective income tax rate of 20%. Fourth quarter 2026 net income per diluted share estimates are based on approximately 35.5 million weighted average diluted shares outstanding for the quarter.

Full Year 2026 Guidance: Management now expects revenues for the full year of 2026 to be in the range of $736.9 million to $738.9 million, representing 10% growth over 2025. This compares to the previous guidance range of $732.0 million to $738.0 million. GAAP net income per diluted share is now expected to be in the range of $6.08 to $6.15, up from the previous guidance range of $5.76 to $5.90. This assumes an effective income tax rate of 22%. Non-GAAP net income per diluted share is now expected to be in the range of $8.07 to $8.14, up from the previous guidance range of $7.74 to $7.88. This assumes a non-GAAP effective income tax rate of 20%. Full year 2026 net income per diluted share estimates are based on approximately 35.5 million weighted average diluted shares outstanding.

Qualys has not reconciled non-GAAP net income per diluted share guidance to GAAP net income per diluted share guidance because Qualys does not provide guidance on the various reconciling cash and non-cash items between GAAP net income and non-GAAP net income (i.e., stock-based compensation, amortization of intangible assets from acquisitions and non-recurring items). The actual dollar amount of reconciling items in the fourth quarter and full year 2026 is likely to have a significant impact on the Company's GAAP net income per diluted share in the fourth quarter and full year 2026. A reconciliation of the non-GAAP net income per diluted share guidance to the GAAP net income per diluted share guidance is not available without unreasonable effort.

Investor Conference Call

Qualys will host a conference call and live webcast to discuss its third quarter financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Monday, November 9, 2026. To access the conference call by phone, please register here. A live webcast of the earnings conference call, investor presentation and prepared remarks can be accessed at https://investor.qualys.com/events-presentations. A replay of the conference call will be available through the same webcast link following the end of the call.

Investor Contact

Blair King
Senior Vice President, Investor Relations and Financial Planning & Analysis
(650) 538-2088
ir@qualys.com

About Qualys

Qualys, Inc. (NASDAQ: QLYS) is a leader in cloud-native cyber risk management, helping organizations measure, communicate, and eliminate cyber risk. The Qualys platform and its solutions power the Risk Operations Center (ROC), unifying asset visibility, exposure management, risk prioritization, and remediation to help organizations continuously reduce risk across hybrid, multi-cloud, endpoint, and AI environments. Qualys equips security and IT teams for the Frontier AI Era with AI-speed detection, hyper-prioritization, and autonomous remediation. Trusted by more than 10,000 organizations globally, including most of the Fortune 100, Qualys helps customers transform cybersecurity into a measurable business function that strengthens resilience and drives business outcomes. For more information, please visit www.qualys.com.

Qualys, Qualys VMDR^® and the Qualys logo are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, quotations of management and statements related to: the benefits of our existing, new and upcoming products, features, integrations, collaborations and joint solutions, and their impact upon our long-term growth; our expectations regarding AI for security and security for AI; our expectations regarding business opportunities with the federal government; our expectations regarding our business partners; our ability to advance our value proposition and competitive differentiation in the market; our ability to address demand trends; our ability to maintain and strengthen our category leadership; our ability to solve modern security challenges at scale; our strategies and ability to achieve and maintain durable profitable growth; our guidance for revenues, GAAP EPS and non-GAAP EPS for the fourth quarter and full year 2026; and our expectations for the number of weighted average diluted shares outstanding and the GAAP and non-GAAP effective income tax rate for the fourth quarter and full year 2026. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; the ability of our platform and solutions to perform as intended; customer acceptance and purchase of our existing solutions and new solutions; real or perceived defects, errors or vulnerabilities in our products or services; our ability to retain existing customers and generate new customers; the budgeting cycles and seasonal buying patterns of our customers; our ability to maintain government authorizations applicable to our platform; general market, political, economic and business conditions in the United States as well as globally; our ability to manage costs as we increase our customer base and the number of our platform solutions; the market for cloud solutions for IT security and compliance not increasing at the rate we expect; competition from other products and services; fluctuations in currency exchange rates; unexpected fluctuations in our effective income tax rate on a GAAP and non-GAAP basis; our ability to effectively manage our rapid growth and our ability to anticipate future market needs and opportunities; and any unanticipated accounting charges. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

The forward-looking statements in this press release are based on information available to Qualys as of the date hereof, and Qualys disclaims any obligation to update any forward-looking statements, except as required by law.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with GAAP, Qualys provides investors with certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA (defined as earnings before interest expense, interest income and other income (expense), net, income taxes, depreciation, amortization, and stock-based compensation) and non-GAAP free cash flows (defined as cash provided by operating activities less purchases of property and equipment, net of proceeds from disposal).

In computing non-GAAP financial measures, Qualys excludes the effects of stock-based compensation expense, amortization of intangible assets from acquisitions, non-recurring items and for non-GAAP net income, impairment of non-marketable securities and certain tax effects. Qualys believes that these non-GAAP financial measures help illustrate underlying trends in its business that could otherwise be masked by the effect of the income or expenses that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows.

Furthermore, Qualys uses some of these non-GAAP financial measures to establish budgets and operational goals for managing its business and evaluating its performance. Qualys believes that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods with other companies in its industry.

Although Qualys does not focus on or use quarterly billings in managing or monitoring the performance of its business, Qualys provides calculated current billings (defined as total revenues recognized in a period plus the sequential change in current deferred revenue in the corresponding period) for the convenience of investors and analysts in building their own financial models.

In order to provide a more complete picture of recurring core operating business results, the Company's non-GAAP net income and non-GAAP net income per diluted share include adjustments for non-recurring income tax items and certain tax effects of non-GAAP adjustments to achieve the effective income tax rate on a non-GAAP basis. The Company's non-GAAP effective tax rate may differ from the GAAP effective income tax rate as a result of these income tax adjustments. The Company believes its estimated non-GAAP effective income tax rate of 20% in 2026 is a reasonable estimate under its current global operating structure and core business operations. The Company may adjust this rate during the year to take into account events or trends that it believes materially impact the estimated annual rate. The non-GAAP effective income tax rate could be subject to change for a number of reasons, including but not limited to, significant changes resulting from tax legislation, material changes in geographic mix of revenues and expenses and other significant events.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.

Qualys, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenues	$      188,049		$      169,882		$      545,862		$      493,843
Cost of revenues (1)	31,362		27,798		91,596		85,601
Gross profit	156,687		142,084		454,266		408,242
Operating expenses:
Research and development (1)	30,222		28,927		89,927		88,330
Sales and marketing (1)	40,948		35,280		120,732		103,750
General and administrative (1)	19,227		17,922		54,530		53,045
Total operating expenses	90,397		82,129		265,189		245,125
Income from operations	66,290		59,955		189,077		163,117
Other income (expense), net:
Interest income	6,769		6,264		19,186		18,906
Other income (expense), net	(409)		(937)		(3,560)		379
Total other income, net	6,360		5,327		15,626		19,285
Income before income taxes	72,650		65,282		204,703		182,402
Income tax provision	15,476		14,936		44,481		37,232
Net income	$      57,174		$      50,346		$    160,222		$    145,170
Net income per share:
Basic	$          1.64		$          1.40		$          4.56		$          4.00
Diluted	$          1.62		$          1.39		$          4.53		$          3.97
Weighted average shares used in computing net income per share:
Basic	34,817		36,037		35,135		36,250
Diluted	35,321		36,293		35,347		36,530
(1) Includes stock-based compensation as follows:
Cost of revenues	$        2,038		$        2,172		$        6,040		$        6,242
Research and development	4,879		5,207		13,998		15,274
Sales and marketing	3,887		3,490		11,788		9,773
General and administrative	9,416		8,578		26,547		25,024
Total stock-based compensation, net of amounts capitalized	$      20,220		$      19,447		$      58,373		$      56,313

 

Qualys, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands)
	September 30, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$      357,191		$      250,258
Short-term marketable securities	163,552		195,681
Accounts receivable, net	148,863		170,991
Prepaid expenses and other current assets	53,413		40,686
Total current assets	723,019		657,616
Long-term marketable securities	287,296		250,868
Property and equipment, net	21,873		23,166
Operating leases - right of use asset	45,762		46,001
Deferred tax assets, net	66,404		74,518
Intangible assets, net	2,357		4,255
Goodwill	7,447		7,447
Noncurrent restricted cash	1,200		1,200
Other noncurrent assets	27,748		30,010
Total assets	$   1,183,106		$   1,095,081
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$        3,568		$        1,202
Accrued liabilities	49,013		57,694
Deferred revenues, current	411,958		401,127
Operating lease liabilities, current	9,213		7,315
Total current liabilities	473,752		467,338
Deferred revenues, noncurrent	14,432		16,285
Operating lease liabilities, noncurrent	42,028		44,959
Other noncurrent liabilities	6,115		5,346
Total liabilities	536,327		533,928
Stockholders' equity:
Common stock	35		36
Additional paid-in capital	833,149		731,788
Accumulated other comprehensive loss	(4,873)		(4,012)
Accumulated deficit	(181,532)		(166,659)
Total stockholders' equity	646,779		561,153
Total liabilities and stockholders' equity	$   1,183,106		$   1,095,081

 

Qualys, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands)
	Nine Months Ended September 30,
	2026		2025
Cash flow from operating activities:
Net income	$      160,222		$      145,170
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	9,522		11,353
Provision for credit losses	536		1,110
Impairment of property and equipment	624		—
Impairment of non-marketable securities	1,967		—
Stock-based compensation, net of amounts capitalized	58,373		56,313
Accretion of discount on marketable securities, net	(1,117)		(2,799)
Deferred income taxes	6,989		6,724
Changes in operating assets and liabilities:
Accounts receivable	21,592		35,023
Prepaid expenses and other assets	(8,563)		(13,402)
Accounts payable	2,102		591
Accrued liabilities and other noncurrent liabilities	(4,541)		1,568
Deferred revenues	8,978		(7,910)
Net cash provided by operating activities	256,684		233,741
Cash flow from investing activities:
Purchases of marketable securities	(203,815)		(275,379)
Sales and maturities of marketable securities	194,114		182,322
Purchases of property and equipment	(7,182)		(4,266)
Net cash used in investing activities	(16,883)		(97,323)
Cash flow from financing activities:
Repurchase of common stock	(185,628)		(138,754)
Proceeds from exercise of stock options	65,615		8,856
Payments for taxes related to net share settlement of equity awards	(19,506)		(20,200)
Proceeds from issuance of common stock through employee stock purchase plan	6,651		6,751
Net cash used in financing activities	(132,868)		(143,347)
Net increase (decrease) in cash, cash equivalents and restricted cash	106,933		(6,929)
Cash, cash equivalents and restricted cash at beginning of period	251,458		233,382
Cash, cash equivalents and restricted cash at end of period	$      358,391		$      226,453

 

Qualys, Inc. RECONCILIATION OF NON-GAAP DISCLOSURES ADJUSTED EBITDA (unaudited) (in thousands, except percentages)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net income	$     57,174		$     50,346		$   160,222		$   145,170
Net income as a percentage of revenues	30 %		30 %		29 %		29 %
Depreciation and amortization of property and equipment	2,798		2,559		7,624		9,435
Amortization of intangible assets	619		639		1,898		1,918
Income tax provision	15,476		14,936		44,481		37,232
Stock-based compensation	20,220		19,447		58,373		56,313
Total other income, net	(6,360)		(5,327)		(15,626)		(19,285)
Adjusted EBITDA	$     89,927		$     82,600		$   256,972		$   230,783
Adjusted EBITDA as a percentage of revenues	48 %		49 %		47 %		47 %

 

Qualys, Inc. RECONCILIATION OF NON-GAAP DISCLOSURES (unaudited) (in thousands, except per share data)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
GAAP Cost of revenues	$       31,362		$       27,798		$       91,596		$       85,601
Less: Stock-based compensation	(2,038)		(2,172)		(6,040)		(6,242)
Less: Amortization of intangible assets	(619)		(639)		(1,898)		(1,918)
Non-GAAP Cost of revenues	$       28,705		$       24,987		$       83,658		$       77,441
GAAP Gross profit	$     156,687		$     142,084		$     454,266		$     408,242
Plus: Stock-based compensation	2,038		2,172		6,040		6,242
Plus: Amortization of intangible assets	619		639		1,898		1,918
Non-GAAP Gross Profit	$     159,344		$     144,895		$     462,204		$     416,402
GAAP Research and development	$       30,222		$       28,927		$       89,927		$       88,330
Less: Stock-based compensation	(4,879)		(5,207)		(13,998)		(15,274)
Non-GAAP Research and development	$       25,343		$       23,720		$       75,929		$       73,056
GAAP Sales and marketing	$       40,948		$       35,280		$     120,732		$     103,750
Less: Stock-based compensation	(3,887)		(3,490)		(11,788)		(9,773)
Non-GAAP Sales and marketing	$       37,061		$       31,790		$     108,944		$       93,977
GAAP General and administrative	$       19,227		$       17,922		$       54,530		$       53,045
Less: Stock-based compensation	(9,416)		(8,578)		(26,547)		(25,024)
Non-GAAP General and administrative	$         9,811		$         9,344		$       27,983		$       28,021
GAAP Operating expenses	$       90,397		$       82,129		$     265,189		$     245,125
Less: Stock-based compensation	(18,182)		(17,275)		(52,333)		(50,071)
Non-GAAP Operating expenses	$       72,215		$       64,854		$     212,856		$     195,054
GAAP Income from operations	$       66,290		$       59,955		$     189,077		$     163,117
Plus: Stock-based compensation	20,220		19,447		58,373		56,313
Plus: Amortization of intangible assets	619		639		1,898		1,918
Non-GAAP Income from operations	$       87,129		$       80,041		$     249,348		$     221,348
GAAP Net income	$       57,174		$       50,346		$     160,222		$     145,170
Plus: Stock-based compensation	20,220		19,447		58,373		56,313
Plus: Amortization of intangible assets	619		639		1,898		1,918
Plus: Impairment of non-marketable securities	—		—		1,967		—
Less: Tax adjustment	(3,221)		(2,991)		(8,908)		(13,301)
Non-GAAP Net income	$       74,792		$       67,441		$      213,552		$     190,100
GAAP Net income per share:
Basic	$           1.64		$           1.40		$            4.56		$           4.00
Diluted	$           1.62		$           1.39		$            4.53		$           3.97
Non-GAAP Net income per share:
Basic	$           2.15		$           1.87		$            6.08		$           5.24
Diluted	$           2.12		$           1.86		$            6.04		$           5.20
Weighted average shares used in GAAP and non-GAAP net income per share:
Basic	34,817		36,037		35,135		36,250
Diluted	35,321		36,293		35,347		36,530

 

Qualys, Inc. RECONCILIATION OF NON-GAAP DISCLOSURES FREE CASH FLOWS (unaudited) (in thousands)
	Nine Months Ended September 30,
	2026		2025
GAAP Cash flows provided by operating activities	$      256,684		$      233,741
Less:
Purchases of property and equipment, net of proceeds from disposal	(7,182)		(4,266)
Non-GAAP Free cash flows	$      249,502		$      229,475

 

Qualys, Inc. RECONCILIATION OF NON-GAAP DISCLOSURES CALCULATED CURRENT BILLINGS (unaudited) (in thousands, except percentages)
	Three Months Ended September 30,
	2026		2025
GAAP Revenue	$   188,049		$   169,882
GAAP Revenue growth compared to same quarter of prior year	11 %		10 %
Plus: Current deferred revenue at September 30	411,958		371,476
Less: Current deferred revenue at June 30	(388,075)		(354,971)
Non-GAAP Calculated current billings	$   211,932		$   186,387
Calculated current billings growth compared to same quarter of prior year	14 %		11 %

View original content:https://www.prnewswire.com/news-releases/qualys-announces-third-quarter-2026-financial-results-302933782.html

SOURCE Qualys, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Qualys QLYS third-quarter 2026 earnings and revenue?

Qualys reported $188.0 million in revenue and GAAP diluted earnings of $1.62 for the quarter ended September 30, 2026. Revenue increased 11% year over year, while GAAP net income increased 14% to $57.2 million. Non-GAAP diluted earnings were $2.12, compared with $1.86 a year earlier.

What is Qualys QLYS updated full-year 2026 guidance?

Qualys expects 2026 revenue of $736.9 million to $738.9 million and GAAP diluted earnings of $6.08 to $6.15. The previous ranges were $732.0 million to $738.0 million and $5.76 to $5.90, respectively. Non-GAAP diluted earnings guidance increased to $8.07 to $8.14 from $7.74 to $7.88.

What tax rates and share counts underpin Qualys 2026 earnings guidance?

Qualys bases both fourth-quarter and full-year 2026 earnings estimates on approximately 35.5 million weighted average diluted shares. GAAP guidance assumes effective income tax rates of 21% for the fourth quarter and 22% for the full year. Non-GAAP guidance assumes a 20% effective income tax rate for both periods.