Qualys 2025 Q2 Earnings Strong Performance as Net Income Surges 8%

Qualys (QLYS) reported its fiscal 2025 Q2 earnings on Aug 05th, 2025. The company beat expectations with a 10.3% revenue increase to $164.06 million and raised full-year revenue guidance to $656-$662 million, signaling confidence in its growth trajectory.

Revenue
Qualys reported total revenue of $164.06 million in Q2 2025, reflecting a 10.3% year-over-year increase from $148.71 million. The direct segment contributed $83.85 million, while the partner segment added $80.21 million, combining to deliver robust performance across both channels. This dual-driver model highlights the company’s strong demand and distribution effectiveness.

Earnings/Net Income
Earnings per share (EPS) for the quarter climbed 9.2% to $1.30, compared to $1.19 in the same period last year, reflecting continued earnings growth. Net income also rose 8.0% to $47.29 million, setting a new 15-year high for Q2. The performance underscores Qualys' improving profitability and financial strength.

Price Action
The stock price of Qualys declined 4.13% during the latest trading day, 4.96% for the week, and 12.97% month-to-date, showing negative short-term momentum.

Post Earnings Price Action Review
The strategy of purchasing Qualys shares on the date of the earnings announcement and holding for 30 days yielded moderate returns but underperformed the S&P 500. While the initial positive reaction to the earnings beat provided a foundation for gains, the stock's 30-day performance was muted, indicating the need for caution in a volatile tech market. This approach may offer limited upside for investors seeking to capture momentum, particularly when broader market indices outperform. The mixed performance suggests that a longer holding period or a diversified investment strategy may be more appropriate to fully realize the company’s long-term potential.

CEO Commentary
Sumedh Thakar, President and CEO of Qualys, highlighted the company’s strong execution against strategic priorities in Q2 2025. He noted robust revenue and profitability growth, alongside key innovations like the FedRAMP High solution, channel momentum, and flexible pricing strategies. Thakar emphasized the early adoption of the Risk Operations Center (ROC) and Qualys' growing role as a preferred partner for centralized cyber risk response. He expressed confidence in the company’s ability to outpace competitors and drive long-term value.

Guidance
Qualys raised its full-year revenue guidance for 2025 to a range of $656 million to $662 million, representing 8% to 9% growth from 2024. This reflects confidence in the company’s ability to continue delivering strong performance. For Q3 2025, the company expects revenue to fall between $164.5 million and $167.5 million, with GAAP net income per diluted share projected to be between $1.00 and $1.10.

Additional News
Qualys made several key strategic and product announcements in Q2 2025. It launched its inaugural managed Risk Operations Center (mROC) Alliance Partners, including BlueVoyant, GuidePoint Security, and others, to help organizations manage cyber risk more effectively. The company also expanded its TotalAI solution with advanced AI security capabilities to protect machine learning operations (MLOps) pipelines. Additionally, Qualys enhanced its Policy Audit solution to streamline compliance and reduce regulatory exposure. The company received industry recognition, being named a leader in Attack Surface Management by KuppingerCole and receiving top honors for its TotalCloud and VMDR solutions at the SC Awards Europe. Qualys further reinforced its public sector focus by expanding its presence in Washington D.C. and hosting its second annual Public Sector Cyber Risk Conference.