8-K: Qualys Q2 Revenue Up 10%, Raises 2025 Guidance

Qualys, Inc. announced strong second quarter 2025 financial results with a 10% year-over-year revenue increase and raised its full-year 2025 revenue guidance.

Summary

• Revenues for the second quarter of 2025 increased by 10% year-over-year to $164.1 million.
• GAAP net income for Q2 2025 was $47.3 million, or $1.29 per diluted share, an 8% increase year-over-year.
• Non-GAAP net income for Q2 2025 was $61.2 million, or $1.68 per diluted share, up from $56.9 million in Q2 2024.
• Adjusted EBITDA for Q2 2025 increased by 5% to $73.4 million.
• Full-year 2025 revenue guidance was raised to a range of $656.0 million to $662.0 million, representing 8% to 9% growth over 2024.
• Full-year 2025 GAAP net income per diluted share guidance was raised to $4.47 to $4.77.
• Full-year 2025 non-GAAP net income per diluted share guidance was raised to $6.20 to $6.50.
• Launched inaugural managed Risk Operations Center (mROC) Alliance Partners.
• Expanded TotalAI solution with advanced AI security capabilities and enhanced Policy Audit solution.
• Qualys was named a Leader in the 2025 KuppingerCole Analysts AG Leadership Compass for Attack Surface Management and Cloud Native Application Protection Platforms (CNAPP).

Sentiment

Score: 8

Explanation: The overall sentiment is highly positive due to strong Q2 financial performance, significant upward revision of full-year guidance for both revenue and EPS, and strategic business achievements including new partnerships and industry accolades. The only notable negative is a decrease in operating cash flow, but this is outweighed by the positive financial and strategic momentum.

Positives

• Revenue increased by 10% year-over-year to $164.1 million in Q2 2025.
• GAAP gross profit increased by 11% to $135.2 million in Q2 2025.
• Non-GAAP gross profit increased by 10% to $137.8 million in Q2 2025.
• GAAP operating income increased by 7% to $51.4 million in Q2 2025.
• Non-GAAP operating income increased by 6% to $70.1 million in Q2 2025.
• GAAP net income increased by 8% to $47.3 million, or $1.29 per diluted share, in Q2 2025.
• Non-GAAP net income increased to $61.2 million, or $1.68 per diluted share, in Q2 2025.
• Adjusted EBITDA increased by 5% to $73.4 million in Q2 2025.
• Calculated current billings grew by 8% year-over-year to $152.2 million.
• Full-year 2025 revenue guidance was raised to $656.0 million $662.0 million from $648.0 million $657.0 million.
• Full-year 2025 GAAP EPS guidance was raised to $4.47 $4.77 from $4.27 $4.57.
• Full-year 2025 non-GAAP EPS guidance was raised to $6.20 $6.50 from $6.00 $6.30.
• Launched new managed Risk Operations Center (mROC) Alliance Partners, expanding market reach.
• Expanded TotalAI solution with advanced AI security capabilities, enhancing product offerings.
• Enhanced Policy Audit solution to streamline compliance and reduce costs.
• Recognized as a Leader in the 2025 KuppingerCole Analysts AG Leadership Compass for Attack Surface Management and Cloud Native Application Protection Platforms (CNAPP).
• TotalCloud and VMDR applications named best cloud security and vulnerability management solutions by SC Awards Europe.
• Reinforced commitment to the public sector by expanding Washington D.C. office and hosting a Cyber Risk Conference.

Negatives

• Operating cash flow for the second quarter of 2025 decreased by 32% to $33.8 million compared to $49.8 million for the same quarter in 2024.
• As a percentage of revenues, GAAP operating income decreased from 32% in Q2 2024 to 31% in Q2 2025.
• As a percentage of revenues, non-GAAP operating income decreased from 44% in Q2 2024 to 43% in Q2 2025.
• As a percentage of revenues, non-GAAP net income decreased from 38% in Q2 2024 to 37% in Q2 2025.
• As a percentage of revenues, Adjusted EBITDA decreased from 47% in Q2 2024 to 45% in Q2 2025.
• As a percentage of revenues, operating cash flow decreased from 34% in Q2 2024 to 21% in Q2 2025.

Risks

• Ability to continue to develop platform capabilities and solutions.
• The ability of the platform and solutions to perform as intended.
• Customer acceptance and purchase of existing and new solutions.
• Real or perceived defects, errors, or vulnerabilities in products or services.
• Ability to retain existing customers and generate new customers.
• Budgeting cycles and seasonal buying patterns of customers.
• Ability to maintain government authorizations applicable to the platform.
• General market, political, economic, and business conditions in the United States and globally.
• Ability to manage costs as the customer base and the number of platform solutions increase.
• The market for cloud solutions for IT security and compliance not increasing at the expected rate.
• Competition from other products and services.
• Fluctuations in currency exchange rates.
• Unexpected fluctuations in the effective income tax rate on a GAAP and non-GAAP basis.
• Ability to effectively manage rapid growth.
• Ability to anticipate future market needs and opportunities.
• Any unanticipated accounting charges.

Future Outlook

Management expects third quarter 2025 revenues to be in the range of $164.5 million to $167.5 million, representing 7% to 9% growth year-over-year. GAAP net income per diluted share for Q3 2025 is projected between $1.00 and $1.10, while non-GAAP net income per diluted share is expected to be $1.50 to $1.60. For the full year 2025, Qualys raised its revenue guidance to $656.0 million to $662.0 million, up from the prior range, and also increased its GAAP and non-GAAP net income per diluted share guidance to $4.47-$4.77 and $6.20-$6.50, respectively.

Management Comments

• "In Q2, we executed well against our strategic agenda, delivering solid revenue growth and profitability."
• "Qualys is well armed with fresh new capabilities, a new agency authorized FedRAMP High solution for government wide use, strong channel momentum, and flexible platform pricing to help customers unify pre-breach cyber risk management workflows, reduce costs, and address todays toughest security challenges."
• "With trusted innovation and early Risk Operations Center (ROC) adoption, were strengthening our position as the partner of choice for customers ready to centralize their response to cyber risk; and believe we are well positioned to outpace our competitors, extend our thought leadership, and build upon an already strong foundation to drive durable long-term growth in the business."

Industry Context

The announcement highlights Qualys' continued growth in the cybersecurity and IT solutions market, driven by its cloud-based platform and strategic initiatives like the mROC Alliance and TotalAI expansion. The focus on unifying pre-breach cyber risk management and addressing complex security challenges aligns with broader industry trends towards comprehensive, integrated security solutions and the increasing demand for AI-driven capabilities in cybersecurity. The expansion into government-wide use with a FedRAMP High solution positions Qualys strongly in the public sector, a growing segment for cybersecurity providers.

Comparison to Industry Standards

• Qualys was named the Leader in the 2025 KuppingerCole Analysts AG Leadership Compass for Attack Surface Management, recognizing its unified approach to securing complex IT environments.
• KuppingerCole also named Qualys' TotalCloud a leader in its 2025 Leadership Compass for Cloud Native Application Protection Platforms (CNAPP), affirming dedication to delivering innovative, risk-driven cloud security across hybrid environments.
• Qualys' TotalCloud and Vulnerability Management, Detection, and Response (VMDR) applications were named best cloud security and vulnerability management solutions, respectively, by the prestigious SC Awards Europe, underscoring Qualys' excellence and contributions to shaping the future of technology and cybersecurity.

Stakeholder Impact

• Shareholders: Positive impact due to strong financial performance, increased profitability, and raised full-year guidance, potentially leading to increased share value.
• Customers: Positive impact through expanded and enhanced solutions (TotalAI, Policy Audit), new managed services alliances (mROC), and continued innovation in cybersecurity and compliance.
• Employees: Potential positive impact from a growing and successful company, though no specific details on employee benefits or changes were mentioned.
• Partners: Positive impact for new mROC Alliance Partners (BlueVoyant, GuidePoint Security, ImagineX, NetHive, The Tech Collective, Teksalah) through collaboration and expanded market opportunities.
• Regulatory Authorities: Continued compliance and commitment to public sector security through FedRAMP High solution and D.C. office expansion.

Next Steps

• Qualys will host a conference call and live webcast on August 5, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss its second quarter financial results.

Key Dates

Recommendation

The company delivered solid Q2 results with 10% revenue growth and improved profitability across key GAAP and non-GAAP metrics. Crucially, Qualys raised its full-year 2025 revenue and EPS guidance, signaling strong confidence in future performance and indicating that the company is outperforming prior expectations. Strategic initiatives like the mROC Alliance, TotalAI expansion, and industry recognition (KuppingerCole, SC Awards Europe) further strengthen its competitive position in the growing cybersecurity market. While operating cash flow saw a decrease, the overall financial health and positive outlook, coupled with strategic advancements, make Qualys an attractive investment.

Keywords

Cybersecurity, Cloud Security, IT Solutions, Compliance Solutions, Vulnerability Management, Risk Management, SaaS Security, Enterprise TruRisk Platform, TotalAI, Policy Audit, FedRAMP, Managed Security Services, Cloud Native Application Protection Platforms, VMDR