Core Viewpoint - Qualys, Inc. is identified as one of the best technology stocks at a 52-week low, with a revised price target of $140 from UBS analyst Roger Boyd, indicating a potential upside of 35.6% from current levels, which aligns with the median upside of 30.81% from 26 analysts covering the stock [1]. Financial Performance - For Q4 FY 2025, Qualys reported a revenue growth of 10%, totaling $175.3 million, with channel partners contributing 51% of total revenue and channel revenue increasing by 17% [2]. - International market revenue grew by 15%, surpassing the domestic market growth of 6%, and the company generated $74.9 million in free cash flows during the quarter [2]. - Adjusted EBITDA for the quarter was $82.6 million, with earnings of $1.87 per diluted share, while operating expenses rose by 11% to $68.9 million due to increased sales and marketing efforts [3]. Future Guidance - For FY 2026, Qualys projects revenue between $717 million and $725 million, reflecting a growth rate of 7% to 8%. For Q1 2026, revenue is estimated to be between $172.5 million and $174.5 million, indicating an 8% to 9% growth rate, with expected earnings ranging from $1.76 to $1.83 per share [4]. - The CFO, Joo Mi Kim, stated that the guidance assumes no significant change in the net dollar expansion rate, with moderate growth from new business in 2026 [5]. Company Overview - Qualys operates as a cloud-based platform provider, delivering security, IT, and compliance solutions both in the United States and internationally. The company was founded in 1999 and is headquartered in Foster City, California [5].

The technology sector has provided great returns since the emergence of generative AI, and it was expected to continue performing strongly this year as well. However, fears about infrastructure spending have once again emerged, alongside speculation that certain domains, such as software engineering, face an existential threat due to extremely powerful AI. This is driving down the tech sector.On 17th February, this sentiment was echoed by Nick Evans, a fund manager at Polar Capital.  He believes only a few ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the Fiscal Year Ended December 31, 2025 or o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-35662 ___________________________________________ Washington, D.C. 20549 ___________________________________________ FORM 10-K ___________________________________________ x Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange ...

Industry Overview - The cybersecurity market is projected to witness a compound annual growth rate (CAGR) of 12.28% from 2026 to 2031, driven by an increase in cyberattacks and the need for enhanced security measures [2]. Company Analysis: Zscaler, Inc. (ZS) - Zscaler offers a comprehensive suite of enterprise security tools, including web security, antivirus, firewalls, and vulnerability management, with a focus on automating risk detection and response [3]. - The company reported a 26% year-over-year revenue increase to $788 million in Q1 of fiscal 2026, with non-GAAP earnings rising approximately 24% to 96 cents per share [5]. - Zscaler is integrating artificial intelligence (AI) into its offerings, with AI security revenue reaching $400 million annual recurring revenue (ARR) at the end of Q1, expected to exceed $500 million in fiscal 2026 [6]. - Despite impressive growth, Zscaler's gross margin decreased to 79.9% from 80.6% year-over-year due to newer products prioritizing speed over profitability [7]. Company Analysis: Qualys, Inc. (QLYS) - Qualys is a leading provider of Vulnerability Management, Detection and Response (VMDR) solutions, experiencing increased customer penetration and product enhancements [8]. - The company reported a 10% year-over-year revenue growth to $175.3 million in Q4 of 2025, with earnings per share increasing by 16.9% to $1.87 [10]. - Qualys is expanding globally, achieving a 15% year-over-year growth in international revenue, which supports customer acquisition without significant acquisition costs [11]. - The total addressable market for Qualys is expected to reach $75 billion by 2029, growing at a CAGR of approximately 12.3%, targeting high-growth areas like cloud security and security analytics [12]. Comparative Analysis - Over the past three months, Zscaler's shares declined by 38.5%, while Qualys' shares fell by 24.3% [14]. - Zscaler trades at a forward sales multiple of 7.51, significantly higher than Qualys' 5.14, indicating a premium for Zscaler despite its tightening gross margins [14]. - The Zacks Consensus Estimate suggests that Qualys will see a 7.8% year-over-year revenue increase to $721.5 million in 2026, with earnings per share projected to rise by 3.5% to $7.32 [13]. Conclusion - While both companies are strong players in the cybersecurity sector, Qualys appears more attractive due to steadier growth and a lower valuation compared to Zscaler, which faces gross margin pressures and a higher valuation [18].

Core Viewpoint - Qualys is a prominent provider of cloud-based cybersecurity and compliance solutions, with significant revenue and market capitalization, leveraging a subscription-driven SaaS model to deliver essential security tools across various industries [1]. Company Overview - Qualys reported a trailing twelve months (TTM) revenue of $669.125 million and a market capitalization of $4 billion as of February 4, 2026 [1]. - The company serves a diverse customer base, including enterprises, government entities, and small to medium-sized businesses (SMBs) across sectors such as financial services, healthcare, manufacturing, and technology [2]. Product Offerings - Qualys offers a comprehensive suite of cloud-based IT, security, and compliance solutions, including vulnerability management, threat protection, patch management, and asset inventory tools [3]. Recent Transactions - CFO Joo Mi Kim sold 6,799 shares for approximately $873,369.30 on February 4, 2026, which was part of a Rule 10b5-1 trading plan adopted in August 2025 [5][7]. - The sale accounted for 7.14% of direct holdings, significantly higher than the recent median of 1.05%, indicating a reduction in available shares [4]. Market Reaction - Following the stock sale, Qualys announced its fourth quarter and full-year results for 2025, leading to a decline in stock price to a 52-week low of $107.17 on February 9, 2026, due to Wall Street's disappointment over the 2026 revenue guidance [8][9]. - The company projected 2026 sales between $717 million and $725 million, reflecting a growth rate of 7% to 8% over 2025, which is lower than the 10% growth experienced in 2025 [9]. Valuation Insights - Qualys shares are currently trading at a price-to-earnings ratio of 20, marking a low point in recent years, which may present a potential buying opportunity for investors [10].

Core Insights - Qualys, Inc. (QLYS) reported strong fourth-quarter results for 2025, with earnings of $1.87 per share, exceeding the Zacks Consensus Estimate of $1.78 by 5.35% and marking a 16.9% increase from the previous year's earnings of $1.60 [1][9] - The company achieved revenues of $175.3 million for Q4 2025, surpassing the Zacks Consensus Estimate by 1.30% and reflecting a 10% year-over-year growth from $159.2 million [2][9] Financial Performance - Non-GAAP gross profit increased by 12% year over year to $149 million, with a non-GAAP gross margin of 85%, up from 84% in the prior year [4] - Non-GAAP operating income rose 13% to $80.1 million, resulting in a margin of 46%, an improvement from 44% a year earlier [4] - Adjusted EBITDA increased by 11% year over year to $82.6 million, maintaining an adjusted EBITDA margin of 47% [5] Revenue Breakdown - Sales from channel partners surged 17%, contributing 51% to total revenues, while direct selling accounted for 49% [3] - U.S. sales grew 6% year over year, contributing approximately 56% to total revenues, while international sales rose 15%, accounting for 44% [3] Cash Flow and Share Repurchase - Qualys ended the quarter with $696.8 million in cash and equivalents, up from $663.6 million in the previous quarter [6] - The company generated operating cash flow of $75.7 million and free cash flow of $74.9 million in Q4 2025 [6] - Qualys repurchased 328,000 shares worth $44.7 million during the quarter, with a total of 10.7 million shares repurchased since February 2018, and authorized an additional $200 million for share repurchase [7] Guidance for Future Performance - For Q1 2026, Qualys expects revenues between $172.5 million and $174.5 million, indicating year-over-year growth of 8-9%, with non-GAAP earnings projected in the range of $1.76-$1.83 [8] - For the full year 2026, the company anticipates revenues between $717 million and $725 million, implying year-over-year growth of 7-8%, and non-GAAP earnings forecasted to be in the band of $7.17-$7.45 per share [10]

Core Insights - Qualys is transitioning from traditional vulnerability detection to a "pre-breach" Risk Operations Center (ROC) that integrates exposure management, exploit validation, risk quantification, and automated remediation [2][3][7] Financial Performance - For FY2025, Qualys reported a revenue increase of 10% to $669.1 million, with an adjusted EBITDA margin of 47% and EPS of $7.07, reflecting a 15% rise [7] - Free cash flow reached $304.4 million, and channel sales accounted for 51% of total revenue, with international growth at 15%, surpassing U.S. growth [7] - Guidance for 2026 indicates projected revenue of $717–725 million, representing a growth rate of 7–8%, with mid-40s EBITDA margins [7] Strategic Initiatives - The company is enhancing its Enterprise TruRisk Management (ETM) platform to incorporate third-party data and has introduced an orchestration layer to unify findings from both Qualys and non-Qualys sources [4][7] - A notable feature is "Agent Val," an agentic AI workflow that validates the exploitability of vulnerabilities in specific environments, aiming to improve remediation efficiency [5][7] - Qualys is promoting a vendor-agnostic approach to unify fragmented security tools into a centralized risk fabric that quantifies risk in business terms [3][7]

分组1 - Qualys reported quarterly earnings of $1.87 per share, exceeding the Zacks Consensus Estimate of $1.78 per share, and showing an increase from $1.6 per share a year ago, resulting in an earnings surprise of +5.35% [1] - The company achieved revenues of $175.28 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.30%, and up from $159.19 million year-over-year [2] - Qualys has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed the market, losing about 2.8% since the beginning of the year, while the S&P 500 has gained 0.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.77 on revenues of $173.57 million, and for the current fiscal year, it is $7.43 on revenues of $717.91 million [7] - The Zacks Industry Rank places the Security industry in the bottom 27% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported a revenue growth of 10% to $669.1 million, with an adjusted EBITDA margin of 47% and net income of $257.8 million, reflecting a 13% increase [18][19] - In Q4 2025, revenues grew 10% to $175.3 million, with channel partners contributing 51% of total revenues, up from 48% a year ago [19][20] - Free cash flow reached $304.4 million, representing 45% of revenues, exceeding expectations [18] Business Line Data and Key Metrics Changes - Customers spending $500,000 or more grew by 4% to 215, indicating a stable demand for the company's services [12] - New product contributions to bookings increased, with CyberSecurity Asset Management combined with ETM making up 10% of total bookings, up from 8% the previous year [21] - Patch Management accounted for 8% of total bookings, up from 7% last year, indicating strong demand for this service [21] Market Data and Key Metrics Changes - The company experienced 15% growth outside the US, compared to 6% growth in the domestic market, highlighting stronger international demand [20] - The US and international revenue mix was 56% and 44%, respectively, showing a balanced geographical revenue distribution [20] Company Strategy and Development Direction - The company is focusing on unifying fragmented security stacks into a centralized risk fabric, leveraging agentic AI to enhance risk management capabilities [5][6] - The introduction of an agentic AI risk management marketplace aims to provide customers with specialized autonomous experts to improve remediation speed and accuracy [8][9] - The company plans to accelerate ETM adoption through its VMDR customer base, positioning itself for larger upsell opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management anticipates a low to mid-single-digit growth in security spending to persist, reflecting a stable operating environment [20] - The gross dollar retention rate remained above 90%, with a net dollar expansion rate of 103%, indicating customer loyalty and potential for upsell [21] - The company expects revenue growth for 2026 to be in the range of 7%-8%, with a focus on maintaining profitability while investing in growth initiatives [24][25] Other Important Information - The company has authorized an increase of $200 million to its share repurchase program, bringing the total available for repurchases to $360.5 million [23] - The company is actively enhancing its partner ecosystem, with a focus on partner-led sales motions to drive growth [15] Q&A Session Summary Question: Can you talk about Q-Flex offerings and their impact on platform adoption? - Management highlighted that Q-Flex allows customers to consolidate capabilities on a single platform at their own pace, enhancing flexibility and encouraging broader adoption [27][30] Question: What is the customer sentiment regarding AI and its impact on net retention? - Management noted that the introduction of agentic AI capabilities is expected to enhance customer outcomes and drive net retention as customers leverage these advanced features [31][34] Question: How is Agent Val improving ETM efficacy and reducing man-hours? - Management explained that Agent Val confirms exploitability of vulnerabilities, saving IT teams time by reducing false positives and enabling quicker remediation [38][41] Question: What are the growth levers for 2026? - Management indicated that successful execution of ETM and ROC, along with partner engagement and Q-Flex adoption, are key to driving growth in 2026 [44][76] Question: What are the implications of the ServiceNow acquisition of Armis? - Management expressed confidence that their integrated patch management and risk management solutions differentiate them from competitors, including those resulting from acquisitions [50][52]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported a revenue growth of 10% to $669.1 million, with an adjusted EBITDA margin of 47% and net income increasing by 13% to $257.8 million [18][19] - In Q4 2025, revenues grew 10% to $175.3 million, with channel partners contributing 51% of total revenues, up from 48% a year ago [19] - Free cash flow reached $304.4 million, representing 45% of revenues, exceeding expectations [18] Business Line Data and Key Metrics Changes - The CyberSecurity Asset Management combined with ETM accounted for 10% of total bookings and 13% of new bookings in 2025, up from 8% and 9% respectively [20] - Patch Management made up 8% of total bookings and 16% of new bookings in 2025, an increase from 7% and 16% [20] - TotalCloud represented 5% of total bookings in 2025, up from 4% a year ago [21] Market Data and Key Metrics Changes - The company experienced 15% growth outside the U.S., surpassing the domestic business growth of 6% [19] - The U.S. and international revenue mix was 56% and 44% respectively [19] - The gross dollar retention rate remained above 90%, with a net dollar expansion rate of 103%, down from 104% in the previous quarter [20] Company Strategy and Development Direction - The company is focused on unifying fragmented security stacks into a centralized risk fabric, leveraging agentic AI to enhance risk management capabilities [5][6] - The introduction of the agentic AI risk fabric and the Risk Operations Center (ROC) aims to provide a comprehensive solution for pre-breach risk management [10][11] - The company plans to accelerate ETM adoption through its VMDR customer base and position itself for larger upsell opportunities [11][16] Management's Comments on Operating Environment and Future Outlook - Management anticipates a low to mid-single-digit growth in security spending to persist in 2026, reflecting customer prioritization of security within IT budgets [19] - The company expects revenue for 2026 to be in the range of $717 million to $725 million, representing a growth rate of 7% to 8% [23] - Management expressed optimism about the potential for upsell opportunities and the impact of new product discussions with existing customers [47][76] Other Important Information - The board authorized an increase of $200 million to the share repurchase program, bringing the total available amount for share repurchases to $360.5 million [22] - The company has been recognized as the number one patch management vendor by analysts, highlighting its strong position in the market [60] Q&A Session Summary Question: Can you talk about Q-Flex offerings and their impact on platform adoption? - Management highlighted that Q-Flex allows customers to consolidate capabilities on a single platform at their own pace, enhancing flexibility and encouraging broader adoption [26][29] Question: What is the customer sentiment regarding AI and its impact on net retention? - Management noted that the introduction of agentic AI capabilities is expected to enhance customer outcomes and drive upgrades from existing solutions, positively impacting net retention [30][33] Question: How does Agent Val improve ETM efficacy and reduce man-hours? - Management explained that Agent Val confirms exploitability of vulnerabilities, saving IT teams time by reducing false positives and enabling quicker remediation [38][41] Question: What are the growth levers for 2026? - Management indicated that growth will be driven by product innovation, partner engagement, and the successful rollout of ETM and ROC solutions [46][76] Question: What are the implications of the ServiceNow acquisition of Armis? - Management expressed confidence that their integrated patch management capabilities differentiate them from competitors, including those resulting from acquisitions [51][60]