Qualys raises 2026 GAAP EPS outlook to $6.08–$6.15
The fourth-quarter outlook calls for $191.0 million to $193.0 million in revenue, alongside diluted EPS ranges on both GAAP and non-GAAP bases.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Qualys, Inc. (QLYS) reported third-quarter 2026 revenue of $188.0 million, up 11% year over year, and GAAP net income of $57.2 million, up 14%. Non-GAAP net income was $74.8 million, up 11%, while operating cash flow was $101.8 million, up 13%. GAAP diluted EPS was $1.62 and non-GAAP diluted EPS was $2.12.
Qualys raised full-year 2026 revenue guidance to $736.9 million to $738.9 million, from $732.0 million to $738.0 million previously, and expects 10% growth over 2025. Full-year GAAP diluted EPS guidance is now $6.08 to $6.15, up from $5.76 to $5.90; non-GAAP diluted EPS guidance is $8.07 to $8.14, up from $7.74 to $7.88. For Q4, management expects revenue of $191.0 million to $193.0 million, GAAP diluted EPS of $1.57 to $1.64, and non-GAAP diluted EPS of $2.05 to $2.12.
GAAP gross margin was 83%, compared with 84% a year earlier, and Adjusted EBITDA margin was 48%, compared with 49%. Calculated current billings were $211.932 million, up 14% year over year.
4 points · 1 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.FY2026 revenue guidance increased to $736.9 million-$738.9 million.
- Moderate pointQ3 revenue rose 11% to $188.0 million year over year.
- Moderate pointGAAP net income increased 14% to $57.2 million year over year.
- Moderate pointOperating cash flow rose 13% to $101.8 million year over year.
Negative
- None.
Filing Explained
The additional holder-relevant detail is that at
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Q3 revenue: $188.0 million
GAAP net income: $57.2 million
Non-GAAP net income: $74.8 million
+4 more
7 metrics
Q3 revenue
$188.0 million
Third quarter 2026; up 11% year over year
GAAP net income
$57.2 million
Third quarter 2026; up 14% year over year
Non-GAAP net income
$74.8 million
Third quarter 2026; up 11% year over year
Operating cash flow
$101.8 million
Third quarter 2026; up 13% year over year
2026 revenue guidance
$736.9 million to $738.9 million
Full year 2026; previous range was $732.0 million to $738.0 million
2026 GAAP diluted EPS guidance
$6.08 to $6.15
Full year 2026; previous range was $5.76 to $5.90
2026 non-GAAP diluted EPS guidance
$8.07 to $8.14
Full year 2026; previous range was $7.74 to $7.88
Key Terms
Adjusted EBITDA, calculated current billings, non-GAAP free cash flows, weighted average diluted shares outstanding
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA (a non-GAAP financial measure)"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
calculated current billings financial
"Calculated current billings growth compared to same quarter of prior year"
Calculated current billings is the total amount a company invoiced or would have invoiced for goods and services delivered during a reporting period, whether cash has been received or revenue has been recognized. Think of it as the company’s “shopping basket” for the period — it shows real customer demand and future cash flow potential beyond accounting rules, so investors use it to gauge sales momentum and near-term revenue conversion.
non-GAAP free cash flows financial
"non-GAAP free cash flows (defined as cash provided by operating activities"
Earnings Snapshot
Revenue: $188.0 million · Guidance included
Third quarter 2026
Revenue
$188.0 million
+11% year over year
GAAP net income
$57.2 million
+14% year over year
Non-GAAP net income
$74.8 million
+11% year over year
Operating cash flow
$101.8 million
+13% year over year
Guidance
Q4 2026 revenue: $191.0 million to $193.0 million; GAAP diluted EPS: $1.57 to $1.64; non-GAAP diluted EPS: $2.05 to $2.12. Full-year 2026 revenue: $736.9 million to $738.9 million; GAAP diluted EPS: $6.08 to $6.15; non-GAAP diluted EPS: $8.07 to $8.14.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did QLYS perform in Q3 2026?
Qualys reported revenue of $188.0 million, up 11% from the third quarter of 2025, and GAAP net income of $57.2 million, up 14%. Non-GAAP net income was $74.8 million, up 11%, and operating cash flow was $101.8 million, up 13%.
What does QLYS expect in Q4 2026?
Qualys expects fourth-quarter revenue of $191.0 million to $193.0 million, GAAP diluted EPS of $1.57 to $1.64, and non-GAAP diluted EPS of $2.05 to $2.12. The EPS ranges assume effective tax rates of 21% GAAP and 20% non-GAAP and approximately 35.5 million weighted average diluted shares outstanding.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
_________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
_________________________
(Exact name of registrant as specified in its charter)
_________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
_________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On November 9, 2026, Qualys, Inc. (“Qualys”) issued a press release announcing its financial results for the quarter ended September 30, 2026. In the press release, Qualys also announced that it will hold a conference call on November 9, 2026, to discuss its financial results for the quarter ended September 30, 2026. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
This information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
| Exhibit No. | Description | ||||
| 99.1 | Press release issued by Qualys, Inc. dated November 9, 2026 | ||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| QUALYS, INC. | ||||||||
| By: | /s/ JOO MI KIM | |||||||
Name: Joo Mi Kim Title: Chief Financial Officer | ||||||||
Date: November 9, 2026
Exhibit 99.1
Qualys Announces Third Quarter 2026 Financial Results
Q3 Revenue Growth of 11% Year-Over-Year
Raises 2026 Revenue Guidance to $736.9-$738.9 million
FOSTER CITY, Calif., – November 9, 2026 – 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 | % | |||||||