Qualys, Inc.

What they do

Qualys sells subscriptions to an integrated suite of cloud solutions that let organizations inventory and manage IT and operational technology assets across on-premises, endpoint, cloud, container and mobile environments. The platform collects and analyzes security data, discovers and prioritizes vulnerabilities, quantifies cyber risk exposure, and recommends and verifies remediation actions. All solutions are delivered from Qualys' own cloud infrastructure, with no hardware or software for customers to buy or maintain.

Revenue drivers

• Cloud platform subscriptions — Revenue comes from subscriptions to the Enterprise TruRisk Platform and its integrated IT, security and compliance modules; total 2025 revenue was $669.1 million.
• Enterprise TruRisk Management — The company cited growing AI-native Risk Operations Center adoption powered by this solution as a demand driver in Q2 2026.
• TotalCloud / CNAPP — TotalCloud received FedRAMP High Authorization sponsored by the U.S. DEA, extending Qualys' government platform to cloud-native application protection capabilities.
• Channel partners — Qualys states it relies on third-party channel partners to generate a substantial amount of revenues and cited strong partner-led execution in Q2 2026.

Recent performance

Q2 2026 revenue was $182.2 million, up 11% from $164.1 million in Q2 2025. GAAP net income was $52.4 million, or $1.50 per diluted share, versus $47.3 million, or $1.29 per diluted share, a year earlier. GAAP gross margin was 83%, GAAP operating margin was 34%, and Adjusted EBITDA was $83.8 million, or 46% of revenue. Operating cash flow rose 77% to $59.6 million from $33.8 million. Full-year revenue has grown every year from $411.2 million in 2021 to $669.1 million in 2025.

Strategy

Management highlighted continuous innovation spanning AI for security and security for AI, and a growing federal pipeline of new business opportunity. The company is investing in AI-native Risk Operations Center adoption through its Enterprise TruRisk Management solution and in early QFlex engagement. It also extended its government platform to CNAPP capabilities via TotalCloud's FedRAMP High Authorization. On capital allocation, the board authorized an additional $200.0 million for share repurchases on February 5, 2026, bringing total authorization to $1.6 billion, with approximately $229.8 million remaining as of June 30, 2026.

Risks

• Competitive pricing pressure — Qualys states the sales prices of its solutions are subject to competitive pressures and may decrease, which could reduce gross profits.
• Cloud platform concentration — Its solutions are delivered from 15 shared cloud platforms, and any disruption at these facilities would interrupt or delay delivery to customers.
• Channel partner dependence — Qualys relies on third-party channel partners for a substantial amount of revenues, and failure to manage distribution channels could reduce revenues.
• Detection failure risk — If its solutions fail to detect vulnerabilities or incorrectly detect them, brand and reputation could be harmed and adversely affect results.

Outlook

Qualys raised its 2026 revenue guidance to $732.0-$738.0 million, which compares to $669.1 million of revenue reported for 2025. Management said the quarter's execution and pipeline reinforce demand for a unified risk management platform, and expressed confidence in reaccelerating long-term growth. No specific earnings guidance figures were provided in the excerpt beyond the revenue range.