Revenue Growth of 10% Year-Over-Year
Raises 2025 Revenue Guidance to
"In Q3, we continued to execute well, demonstrated by another quarter of solid revenue growth and profitability," said
Third Quarter 2025 Financial Highlights
Revenues: Revenues for the third quarter of 2025 increased by 10% to
Gross Profit: GAAP gross profit for the third quarter of 2025 increased by 14% to
Operating Income: GAAP operating income for the third quarter of 2025 increased by 33% to
Net Income: GAAP net income for the third quarter of 2025 increased by 9% to
Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the third quarter of 2025 increased by 19% to
Operating Cash Flow: Operating cash flow for the third quarter of 2025 increased by 48% to
Third Quarter 2025 Business Highlights
Qualys received FedRAMP High Authorization for its GovCloud Platform, making it one of the few cybersecurity platforms meeting the rigorous federal security and compliance standards. This milestone expandsQualys' ability to support civilian, defense, and intelligence agencies in strengthening cyber resilience and accelerating secure cloud adoption.- Unveiled a marketplace of agentic AI-powered agents to autonomously drive every step of cyber risk operations, helping organizations further improve risk posture and reduce operational costs via
Qualys' Enterprise TruRisk Management solution. - Received two prestigious Pwnie Awards for Epic Achievement and Best Remote Code Execution, recognizing the Qualys Threat Research Unit.
Qualys' Threat Research Unit underpins the Enterprise TruRisk Manangement Platform's ability to rapidly remediate exposures and block attacks before adversaries can act. Qualys earned multiple leadership recognitions across key analyst reports, including IDC MarketScape (Cloud Native Application Protection Platform (CNAPP) and Exposure Management), GigaOm Radar (Patch Management and CNAPP), Gartner Market Guide (CNAPP), and KuppingerCole Leadership Compass (API Security), highlighting its strong position in cloud security and exposure management markets.Qualys appointedMay Mitchell as Chief Marketing Officer to lead the company's global marketing strategy and revenue-generating go-to-market initiatives.
Financial Performance Outlook
Based on information as of today,
Fourth Quarter 2025 Guidance: Management expects revenues for the fourth quarter of 2025 to be in the range of
Full Year 2025 Guidance: Management now expects revenues for the full year of 2025 to be in the range of
Investor Conference Call
Investor Contact
Senior Vice President, Investor Relations and Financial Planning & Analysis
(650) 538-2088
ir@qualys.com
About
The Qualys Enterprise TruRisk Platform leverages a single agent to continuously deliver critical security intelligence while enabling enterprises to automate the full spectrum of vulnerability detection, compliance, and protection for IT systems, workloads and web applications across on premises, endpoints, servers, public and private clouds, containers, and mobile devices. Founded in 1999 as one of the first SaaS security 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, acquisitions, collaborations and joint solutions, and their impact upon our long-term growth; 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 2025; 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 2025. 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 forward-looking statements in this press release are based on information available to
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP,
In computing non-GAAP financial measures,
Furthermore,
Although
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 21% in 2025 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.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data) |
|||||||
|
|
|||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Revenues |
$ 169,882 |
|
$ 153,867 |
|
$ 493,843 |
|
$ 448,380 |
|
Cost of revenues (1) |
27,798 |
|
28,832 |
|
85,601 |
|
82,445 |
|
Gross profit |
142,084 |
|
125,035 |
|
408,242 |
|
365,935 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development (1) |
28,927 |
|
28,901 |
|
88,330 |
|
83,550 |
|
Sales and marketing (1) |
35,280 |
|
32,686 |
|
103,750 |
|
94,240 |
|
General and administrative (1) |
17,922 |
|
18,494 |
|
53,045 |
|
50,362 |
|
Total operating expenses |
82,129 |
|
80,081 |
|
245,125 |
|
228,152 |
|
Income from operations |
59,955 |
|
44,954 |
|
163,117 |
|
137,783 |
|
Other income (expense), net: |
|
|
|
|
|
|
|
|
Interest income |
6,264 |
|
6,764 |
|
18,906 |
|
19,590 |
|
Other income (expense), net |
(937) |
|
605 |
|
379 |
|
(1,381) |
|
Total other income, net |
5,327 |
|
7,369 |
|
19,285 |
|
18,209 |
|
Income before income taxes |
65,282 |
|
52,323 |
|
182,402 |
|
155,992 |
|
Income tax provision |
14,936 |
|
6,111 |
|
37,232 |
|
26,277 |
|
Net income |
$ 50,346 |
|
$ 46,212 |
|
$ 145,170 |
|
$ 129,715 |
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
$ 1.40 |
|
$ 1.26 |
|
$ 4.00 |
|
$ 3.52 |
|
Diluted |
$ 1.39 |
|
$ 1.24 |
|
$ 3.97 |
|
$ 3.46 |
|
Weighted average shares used in computing net |
|
|
|
|
|
|
|
|
Basic |
36,037 |
|
36,762 |
|
36,250 |
|
36,877 |
|
Diluted |
36,293 |
|
37,136 |
|
36,530 |
|
37,441 |
|
(1) Includes stock-based compensation as follows: |
|
|
|
|
|
|
|
|
Cost of revenues |
$ 2,172 |
|
$ 2,081 |
|
$ 6,242 |
|
$ 5,967 |
|
Research and development |
5,207 |
|
5,448 |
|
15,274 |
|
15,911 |
|
Sales and marketing |
3,490 |
|
3,649 |
|
9,773 |
|
11,020 |
|
General and administrative |
8,578 |
|
9,159 |
|
25,024 |
|
23,556 |
|
Total stock-based compensation, net of |
$ 19,447 |
|
$ 20,337 |
|
$ 56,313 |
|
$ 56,454 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands) |
|||
|
|
|||
|
|
|
|
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ 225,253 |
|
$ 232,182 |
|
Short-term marketable securities |
193,321 |
|
149,241 |
|
Accounts receivable, net |
128,418 |
|
164,551 |
|
Prepaid expenses and other current assets |
49,720 |
|
39,717 |
|
Total current assets |
596,712 |
|
585,691 |
|
Long-term marketable securities |
244,984 |
|
193,887 |
|
Property and equipment, net |
24,792 |
|
30,349 |
|
Operating leases - right of use asset |
47,959 |
|
40,968 |
|
Deferred tax assets, net |
76,258 |
|
81,307 |
|
Intangible assets, net |
4,894 |
|
6,812 |
|
|
7,447 |
|
7,447 |
|
Noncurrent restricted cash |
1,200 |
|
1,200 |
|
Other noncurrent assets |
27,743 |
|
25,876 |
|
Total assets |
$ 1,031,989 |
|
$ 973,537 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ 1,823 |
|
$ 1,270 |
|
Accrued liabilities |
51,136 |
|
45,942 |
|
Deferred revenues, current |
371,476 |
|
371,457 |
|
Operating lease liabilities, current |
7,345 |
|
9,721 |
|
Total current liabilities |
431,780 |
|
428,390 |
|
Deferred revenues, noncurrent |
16,336 |
|
24,265 |
|
Operating lease liabilities, noncurrent |
47,264 |
|
37,500 |
|
Other noncurrent liabilities |
7,206 |
|
6,266 |
|
Total liabilities |
502,586 |
|
496,421 |
|
Stockholders' equity: |
|
|
|
|
Common stock |
36 |
|
37 |
|
Additional paid-in capital |
710,450 |
|
664,879 |
|
Accumulated other comprehensive income (loss) |
(4,210) |
|
1,417 |
|
Accumulated deficit |
(176,873) |
|
(189,217) |
|
Total stockholders' equity |
529,403 |
|
477,116 |
|
Total liabilities and stockholders' equity |
$ 1,031,989 |
|
$ 973,537 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) |
|||
|
|
|||
|
|
Nine Months Ended
|
||
|
|
2025 |
|
2024 |
|
Cash flow from operating activities: |
|
|
|
|
Net income |
$ 145,170 |
|
$ 129,715 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization expense |
11,353 |
|
14,410 |
|
Provision for credit losses |
1,110 |
|
411 |
|
Stock-based compensation, net of amounts capitalized |
56,313 |
|
56,454 |
|
Accretion of discount on marketable securities, net |
(2,799) |
|
(5,231) |
|
Deferred income taxes |
6,724 |
|
(15,374) |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
35,023 |
|
30,848 |
|
Prepaid expenses and other assets |
(13,402) |
|
(9,900) |
|
Accounts payable |
591 |
|
391 |
|
Accrued liabilities and other noncurrent liabilities |
1,568 |
|
(1,351) |
|
Deferred revenues |
(7,910) |
|
(4,001) |
|
Net cash provided by operating activities |
233,741 |
|
196,372 |
|
Cash flow from investing activities: |
|
|
|
|
Purchases of marketable securities |
(275,379) |
|
(305,952) |
|
Sales and maturities of marketable securities |
182,322 |
|
252,940 |
|
Purchases of property and equipment |
(4,266) |
|
(6,497) |
|
Net cash used in investing activities |
(97,323) |
|
(59,509) |
|
Cash flow from financing activities: |
|
|
|
|
Repurchase of common stock |
(138,754) |
|
(97,188) |
|
Proceeds from exercise of stock options |
8,856 |
|
8,311 |
|
Payments for taxes related to net share settlement of equity awards |
(20,200) |
|
(23,093) |
|
Proceeds from issuance of common stock through employee stock purchase plan |
6,751 |
|
6,872 |
|
Payment of acquisition-related holdback |
— |
|
(1,500) |
|
Net cash used in financing activities |
(143,347) |
|
(106,598) |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
(6,929) |
|
30,265 |
|
Cash, cash equivalents and restricted cash at beginning of period |
233,382 |
|
206,365 |
|
Cash, cash equivalents and restricted cash at end of period |
$ 226,453 |
|
$ 236,630 |
|
RECONCILIATION OF NON-GAAP DISCLOSURES ADJUSTED EBITDA (unaudited) (in thousands, except percentages) |
|||||||
|
|
|||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Net income |
$ 50,346 |
|
$ 46,212 |
|
$ 145,170 |
|
$ 129,715 |
|
Net income as a percentage of revenues |
30 % |
|
30 % |
|
29 % |
|
29 % |
|
Depreciation and amortization of property and |
2,559 |
|
3,670 |
|
9,435 |
|
12,146 |
|
Amortization of intangible assets |
639 |
|
721 |
|
1,918 |
|
2,264 |
|
Income tax provision |
14,936 |
|
6,111 |
|
37,232 |
|
26,277 |
|
Stock-based compensation |
19,447 |
|
20,337 |
|
56,313 |
|
56,454 |
|
Total other income, net |
(5,327) |
|
(7,369) |
|
(19,285) |
|
(18,209) |
|
Adjusted EBITDA |
$ 82,600 |
|
$ 69,682 |
|
$ 230,783 |
|
$ 208,647 |
|
Adjusted EBITDA as a percentage of revenues |
49 % |
|
45 % |
|
47 % |
|
47 % |
|
RECONCILIATION OF NON-GAAP DISCLOSURES (unaudited) (in thousands, except per share data) |
|||||||
|
|
|||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
GAAP Cost of revenues |
$ 27,798 |
|
$ 28,832 |
|
$ 85,601 |
|
$ 82,445 |
|
Less: Stock-based compensation |
(2,172) |
|
(2,081) |
|
(6,242) |
|
(5,967) |
|
Less: Amortization of intangible assets |
(639) |
|
(705) |
|
(1,918) |
|
(2,198) |
|
Non-GAAP Cost of revenues |
$ 24,987 |
|
$ 26,046 |
|
$ 77,441 |
|
$ 74,280 |
|
GAAP Gross profit |
$ 142,084 |
|
$ 125,035 |
|
$ 408,242 |
|
$ 365,935 |
|
Plus: Stock-based compensation |
2,172 |
|
2,081 |
|
6,242 |
|
5,967 |
|
Plus: Amortization of intangible assets |
639 |
|
705 |
|
1,918 |
|
2,198 |
|
Non-GAAP Gross Profit |
$ 144,895 |
|
$ 127,821 |
|
$ 416,402 |
|
$ 374,100 |
|
|
$ 28,927 |
|
$ 28,901 |
|
$ 88,330 |
|
$ 83,550 |
|
Less: Stock-based compensation |
(5,207) |
|
(5,448) |
|
(15,274) |
|
(15,911) |
|
Less: Amortization of intangible assets |
— |
|
(16) |
|
— |
|
(66) |
|
|
$ 23,720 |
|
$ 23,437 |
|
$ 73,056 |
|
$ 67,573 |
|
GAAP Sales and marketing |
$ 35,280 |
|
$ 32,686 |
|
$ 103,750 |
|
$ 94,240 |
|
Less: Stock-based compensation |
(3,490) |
|
(3,649) |
|
(9,773) |
|
(11,020) |
|
Non-GAAP Sales and marketing |
$ 31,790 |
|
$ 29,037 |
|
$ 93,977 |
|
$ 83,220 |
|
GAAP General and administrative |
$ 17,922 |
|
$ 18,494 |
|
$ 53,045 |
|
$ 50,362 |
|
Less: Stock-based compensation |
(8,578) |
|
(9,159) |
|
(25,024) |
|
(23,556) |
|
Non-GAAP General and administrative |
$ 9,344 |
|
$ 9,335 |
|
$ 28,021 |
|
$ 26,806 |
|
GAAP Operating expenses |
$ 82,129 |
|
$ 80,081 |
|
$ 245,125 |
|
$ 228,152 |
|
Less: Stock-based compensation |
(17,275) |
|
(18,256) |
|
(50,071) |
|
(50,487) |
|
Less: Amortization of intangible assets |
— |
|
(16) |
|
— |
|
(66) |
|
Non-GAAP Operating expenses |
$ 64,854 |
|
$ 61,809 |
|
$ 195,054 |
|
$ 177,599 |
|
GAAP Income from operations |
$ 59,955 |
|
$ 44,954 |
|
$ 163,117 |
|
$ 137,783 |
|
Plus: Stock-based compensation |
19,447 |
|
20,337 |
|
56,313 |
|
56,454 |
|
Plus: Amortization of intangible assets |
639 |
|
721 |
|
1,918 |
|
2,264 |
|
Non-GAAP Income from operations |
$ 80,041 |
|
$ 66,012 |
|
$ 221,348 |
|
$ 196,501 |
|
GAAP Net income |
$ 50,346 |
|
$ 46,212 |
|
$ 145,170 |
|
$ 129,715 |
|
Plus: Stock-based compensation |
19,447 |
|
20,337 |
|
56,313 |
|
56,454 |
|
Plus: Amortization of intangible assets |
639 |
|
721 |
|
1,918 |
|
2,264 |
|
Less: Tax adjustment |
(2,991) |
|
(9,299) |
|
(13,301) |
|
(18,812) |
|
Non-GAAP Net income |
$ 67,441 |
|
$ 57,971 |
|
$ 190,100 |
|
$ 169,621 |
|
GAAP Net income per share: |
|
|
|
|
|
|
|
|
Basic |
$ 1.40 |
|
$ 1.26 |
|
$ 4.00 |
|
$ 3.52 |
|
Diluted |
$ 1.39 |
|
$ 1.24 |
|
$ 3.97 |
|
$ 3.46 |
|
Non-GAAP Net income per share: |
|
|
|
|
|
|
|
|
Basic |
$ 1.87 |
|
$ 1.58 |
|
$ 5.24 |
|
$ 4.60 |
|
Diluted |
$ 1.86 |
|
$ 1.56 |
|
$ 5.20 |
|
$ 4.53 |
|
Weighted average shares used in GAAP and non-GAAP net income per share: |
|||||||
|
Basic |
36,037 |
|
36,762 |
|
36,250 |
|
36,877 |
|
Diluted |
36,293 |
|
37,136 |
|
36,530 |
|
37,441 |
|
RECONCILIATION OF NON-GAAP DISCLOSURES FREE CASH FLOWS (unaudited) (in thousands) |
|||
|
|
|||
|
|
Nine Months Ended
|
||
|
|
2025 |
|
2024 |
|
GAAP Cash flows provided by operating activities |
$ 233,741 |
|
$ 196,372 |
|
Less: |
|
|
|
|
Purchases of property and equipment, net of proceeds from disposal |
(4,266) |
|
(6,497) |
|
Non-GAAP Free cash flows |
$ 229,475 |
|
$ 189,875 |
|
RECONCILIATION OF NON-GAAP DISCLOSURES CALCULATED CURRENT BILLINGS (unaudited) (in thousands, except percentages) |
|||
|
|
|||
|
|
Three Months Ended
|
||
|
|
2025 |
|
2024 |
|
GAAP Revenue |
$ 169,882 |
|
$ 153,867 |
|
GAAP Revenue growth compared to same quarter of prior year |
10 % |
|
8 % |
|
Plus: Current deferred revenue at |
371,476 |
|
337,821 |
|
Less: Current deferred revenue at |
(354,971) |
|
(324,334) |
|
Non-GAAP Calculated current billings |
$ 186,387 |
|
$ 167,354 |
|
Calculated current billings growth compared to same quarter of prior year |
11 % |
|
14 % |
View original content:https://www.prnewswire.com/news-releases/qualys-announces-third-quarter-2025-financial-results-302604291.html
SOURCE