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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' recent performance was driven by strong Q3 earnings, with revenue growth of 10% year-over-year, and a beat on earnings and revenue estimates. The company's robust platform approach, increased channel partner contributions, and international revenue growth, now making up 44% of total sales, are key growth drivers. Additionally, Qualys benefits from cost efficiencies, rising demand from U.S. Federal and international markets, and effective capital allocation through share buybacks. Its valuation advantage and strong fundamentals, including consistent revenue and earnings growth, also contribute to its positive outlook.

1.c. Company Highlights

2. Qualys Delivers Strong Q3 Performance with Revenue Growth and Expanding Profitability

Qualys reported revenues of $169.9 million, representing a 10% year-over-year growth, with channel contributions making up 50% of total revenues. The company's adjusted EBITDA for the third quarter of 2025 was $82.6 million, representing a 49% margin compared to a 45% margin a year ago. Earnings per share (EPS) came in at $1.86, beating analyst estimates of $1.56. The company's gross retention continued to improve, and operating expenses in Q3 increased by 5% to $64.9 million, driven by investments in sales and marketing, which grew 9%.

Publication Date: Nov -13

📋 Highlights
  • Revenue Growth and Channel Momentum:: Q3 revenue reached $169.9M (+10%), with channel sales contributing 50% (up 17% YoY vs. direct at 5% growth).
  • ETM-Driven Upsells:: ETM achieved a 100% upsell metric, including a 50% annual bookings increase for a Global 10 customer and a 7-figure state government win.
  • Margin Expansion:: Adjusted EBITDA hit $82.6M (49% margin, up from 45% YoY) despite 5% operating expense growth, driven by sales and marketing investments.
  • TruConfirm and Q-Flex Adoption:: TruConfirm enhances exploit validation, while Q-Flex pricing secured a multiyear deal with a Global 10 customer boosting revenue by 50%.
  • Federal and Partner Growth:: Large government agency upsell (6+ figure) and state wins, alongside 17% partner-led deal registration growth, highlight federal and ecosystem expansion.

Revenue Growth and Mix

Revenues from channel partners grew 17%, outpacing direct revenues, which grew 5%. This strong performance was driven by the company's Risk Operations Center (ROC) powered by Qualys ETM, which delivers on the ask from CISOs to operationalize cyber risk management in business terms. As Sumedh Thakar noted, "We're seeing a significant increase in ETM customer penetration," highlighting the success of the company's differentiated ETM solution.

ETM Solution and Customer Adoption

The ETM solution combines CRQ, CTEM, and native remediation operations to fix the risk that matters most quickly and at scale. Qualys is seeing early adoption validating the model, with POCs continuing to convert to commercial success. The company has also introduced TruConfirm, a pioneering capability that flexes the power of its platform to confirm exploitability before customers become compromised.

Valuation and Growth Prospects

Qualys trades at a P/E Ratio of 28.59, P/B Ratio of 10.21, and P/S Ratio of 8.35. With the company's expected revenue growth rate of 10% for the full year 2025 and a projected growth rate of 7.5% for next year, the current valuation appears reasonable. The company's return on equity (ROE) stands at 37.59%, indicating strong profitability. As Qualys continues to execute its strategy and expand its ETM solution, investors will be watching for further progress in the coming quarters.

Guidance and Outlook

Qualys guided revenues for the fourth quarter of 2025 to be in the range of $172 million to $174 million, representing a growth rate of 8% to 9%. The company expects current billings to be a few percentage points below revenue growth rate for the year, with a full-year current billings growth rate of around 8%. Qualys is confident in its growth vectors, including converting VM customers to VMDR, upselling with Eliminate, and interest in its cloud security solution.

3. NewsRoom

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Fisher Asset Management LLC Trims Stock Position in Qualys, Inc. $QLYS

Dec -03

Source: defenseworld.net

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4 Security Stocks in Focus Amid the Prospering Industry Trend

Nov -28

Source: zacks.com

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Buy 3 Cybersecurity Stocks Ahead of Cyber Monday for Long-Term Gains

Nov -27

Source: zacks.com

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Rep. Lisa C. McClain Sells Off Shares of Qualys, Inc. (NASDAQ:QLYS)

Nov -27

Source: defenseworld.net

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Qualys (QLYS)'s Technical Outlook is Bright After Key Golden Cross

Nov -21

Source: zacks.com

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Here Are Tuesday's Top Wall Street Analyst Research Calls: Alphabet, Amazon.com, Deckers Outdoors, DraftKings, Microsoft, Qualys, Zscaler and More

Nov -18

Source: 247wallst.com

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Qualys Is Producing Quality Growth From Its ETM Platform Approach (Upgrade)

Nov -07

Source: seekingalpha.com

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Why Shares of Qualys Are Soaring Today

Nov -05

Source: fool.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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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

149.63$

Current Price

149.63$

Potential

-0.00%

Expected Cash-Flows