Investor Presentation Security and Compliance for the Digital Transformation Sumedh Thakar, President and CEO Joo Mi Kim, CFO February 5, 2026 Safe harbor This presentation includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this presentation include, but are not limited to, the following list: Our expectations and beliefs regarding t ...

Revenue Growth - Q4 2025 revenue increased by 10% year-over-year to $175.3 million, compared to $159.2 million in Q4 2024[3] - Full year 2025 revenue also grew by 10% to $669.1 million, up from $607.6 million in 2024[9] - Revenues for Q4 2025 reached $175.3 million, a 10.5% increase from $159.2 million in Q4 2024[36] - Full year 2026 revenue guidance is projected to be between $717.0 million and $725.0 million, indicating 7% to 8% growth over 2025[21] Profitability - GAAP net income for Q4 2025 rose by 21% to $53.2 million, or $1.47 per diluted share, compared to $44.0 million, or $1.19 per diluted share, in Q4 2024[6] - Non-GAAP net income for Q4 2025 increased by 14% to $67.7 million, or $1.87 per diluted share, compared to $59.4 million, or $1.60 per diluted share, in Q4 2024[6] - Full year 2025 GAAP net income was $198.3 million, or $5.44 per diluted share, a 14% increase from $173.7 million, or $4.65 per diluted share, in 2024[12] - Net income for Q4 2025 was $53.2 million, representing a 21% increase compared to $44.0 million in Q4 2024[36] - Non-GAAP net income per diluted share for the full year 2025 was $5.44, an increase from $4.65 in 2024[36] - Net income for the twelve months ended December 31, 2025, was $198,320, an increase of 14.2% from $173,680 in 2024[40] - The diluted GAAP net income per share for the twelve months ended December 31, 2025, was $5.44, up from $4.65 in 2024[44] Cash Flow and Investments - Operating cash flow for Q4 2025 surged by 59% to $75.7 million, representing 43% of revenues, compared to 30% in Q4 2024[8] - Cash flow from operating activities for the twelve months ended December 31, 2025, was $309,400, compared to $244,094 in 2024, indicating strong operational performance[40] - Non-GAAP free cash flows for the twelve months ended December 31, 2025, were $304,410, compared to $231,760 in 2024, reflecting a significant increase[46] - The company reported a net increase in cash, cash equivalents, and restricted cash of $18,076 for the twelve months ended December 31, 2025[40] Expenses and Liabilities - Operating expenses for the year ended December 31, 2025, totaled $332.4 million, up from $308.9 million in 2024[36] - Total liabilities rose to $533.9 million in 2025, compared to $496.4 million in 2024[38] Assets and Equity - Total current assets increased to $657.6 million in 2025, up from $585.7 million in 2024[38] - Qualys reported a total stockholders' equity of $561.2 million as of December 31, 2025, compared to $477.1 million in 2024[38] Share Repurchase and Guidance - Qualys announced a $200 million increase to its share repurchase program[1] - Management expects Q1 2026 revenues to be between $172.5 million and $174.5 million, reflecting 8% to 9% growth year-over-year[20]

Core Insights - Qualys, Inc. reported a revenue growth of 10% year-over-year for both Q4 and the full year 2025, with Q4 revenues reaching $175.3 million and full year revenues totaling $669.1 million [1][11] - The company announced a $200 million increase to its share repurchase program, indicating confidence in its financial position and future growth prospects [1] Financial Performance - **Q4 2025 Financial Highlights**: - Revenues increased by 10% to $175.3 million compared to $159.2 million in Q4 2024 [3] - GAAP gross profit rose by 12% to $146.1 million, with a gross margin of 83% [4] - GAAP operating income increased by 19% to $58.8 million, representing 34% of revenues [5] - GAAP net income grew by 21% to $53.2 million, or $1.47 per diluted share [6] - Adjusted EBITDA increased by 11% to $82.6 million, maintaining a margin of 47% [7] - Operating cash flow surged by 59% to $75.7 million, accounting for 43% of revenues [8] - **Full Year 2025 Financial Highlights**: - Revenues increased by 10% to $669.1 million compared to $607.6 million in 2024 [11] - GAAP gross profit rose by 12% to $554.4 million, with a gross margin of 83% [11] - GAAP operating income increased by 19% to $222.0 million, representing 33% of revenues [12] - GAAP net income grew by 14% to $198.3 million, or $5.44 per diluted share [13] - Adjusted EBITDA increased by 11% to $313.4 million, with a margin of 47% [14] - Operating cash flow increased by 27% to $309.4 million, accounting for 46% of revenues [14] Business Developments - Qualys introduced several enhancements to its Enterprise TruRisk Management solution, including identity security and industry-specific threat prioritization [9][23] - The company successfully launched its TotalAppSec solution, integrating various security features for comprehensive application risk management [23] - Qualys achieved FedRAMP High Authorization for its GovCloud Platform, expanding its support for federal and defense agencies [23] - The company hosted its reimagined user conference series, ROCon, with attendance up over 20% from the previous year [10][23] Market Recognition - Qualys was recognized as a leader in multiple security categories by independent analyst firms, including GigaOm and IDC [17] - The company received accolades for its TotalCloud and Cybersecurity Asset Management solutions, highlighting its contributions to technology and cybersecurity [17]

Core Insights - Qualys, Inc. (QLYS) is set to report its fourth-quarter 2025 earnings on February 5, with anticipated revenues between $172 million and $174 million, reflecting an 8.7% increase from the previous year's $159.2 million [1][10] - The company expects non-GAAP earnings per share (EPS) in the range of $1.73 to $1.80, with the consensus estimate remaining at $1.78, compared to $1.60 in the same quarter last year [2][10] Revenue and Earnings Expectations - The Zacks Consensus Estimate for QLYS revenues is $173 million, indicating a positive outlook for the quarter [1][10] - The company has a strong track record of exceeding earnings estimates, with an average surprise of 16.6% over the last four quarters [2] Factors Influencing Performance - Rising demand for security and networking products due to the hybrid working trend and accelerated digital transformations is expected to positively impact QLYS' performance [3] - The recurring subscription-based business model provides stability amid macroeconomic uncertainties, supporting durable top-line growth and strong cash flow [4] Market Positioning - QLYS has successfully attracted new customers and retained existing ones, closing a significant number of six-figure deals, which is likely to boost revenues in the upcoming quarter [5] - However, the company faces challenges as enterprises delay large IT spending due to a weakening global economy, which may negatively affect overall financial performance [6] Investment in Capabilities - Qualys is investing in expanding its capabilities in the competitive cybersecurity market, focusing on research and development and enhancing sales and marketing efforts, which may impact short-term profitability [7] Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for QLYS this season, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [8]

Core Insights - Qualys, Inc. will report its financial results for the fourth quarter of 2025 on February 5, 2026, after market close [1] - A conference call and live webcast will be held on the same day at 5:00 p.m. Eastern Time to discuss the financial results [2] Company Overview - Qualys is a leading provider of cloud-based IT, security, and compliance solutions, serving over 10,000 subscription customers globally, including many from the Forbes Global 100 and Fortune 100 [3] - The company offers the Qualys Enterprise TruRisk Platform, which automates vulnerability detection, compliance, and protection across various IT environments [4] - Founded in 1999, Qualys has established strategic partnerships with major cloud service providers like Amazon Web Services, Google Cloud Platform, and Microsoft Azure [4]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - The Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - Stocks with higher Style Scores have a better chance of outperforming the market [3] Categories of Style Scores - **Value Score**: Focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to highlight attractive investment opportunities [4] - **Growth Score**: Analyzes projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [5] - **Momentum Score**: Assesses price trends and earnings outlook changes to identify favorable buying opportunities for high-momentum stocks [6] - **VGM Score**: A composite score that combines Value, Growth, and Momentum Scores, serving as a crucial indicator alongside the Zacks Rank [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores to narrow down their choices [9] Stock Recommendation: Qualys Inc. (QLYS) - Qualys Inc. is recognized for its comprehensive information security solutions, including asset management and cloud-native security [12] - Currently rated 3 (Hold) on the Zacks Rank, Qualys has a VGM Score of B and a Growth Style Score of A, indicating a projected year-over-year earnings growth of 13.9% for the current fiscal year [13] - The Zacks Consensus Estimate for Qualys has increased by $0.07 to $6.98 per share, with an average earnings surprise of +16.6%, making it a strong candidate for growth investors [13][14]

Industry Overview - The momentum of the artificial intelligence (AI) infrastructure segment is expected to continue into 2026, supported by a bullish demand scenario [1] - Concerns exist regarding the overstretched valuations of major AI companies, including both infrastructure developers and application implementers [1] Investment Opportunities - Several small and mid-sized AI stocks that underperformed the broader market in the past year are identified as potential game changers for 2026, including UiPath Inc. (PATH), Five9 Inc. (FIVN), Qualys Inc. (QLYS), Teradata Corp. (TDC), and BlackBerry Ltd. (BB) [2] - Each of these stocks currently holds a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [2] Company Highlights UiPath Inc. (PATH) - UiPath provides a robotic process automation platform that utilizes AI to automate repetitive tasks and streamline operations [5] - The platform features embedded AI, machine learning (ML), and natural language processing (NLP) capabilities, enhancing decision-making and information processing [6] - Expected revenue and earnings growth rates for the next year are 9.3% and 13.7%, respectively, with a 5.6% improvement in the earnings consensus estimate over the last 30 days [8] Five9 Inc. (FIVN) - Five9 offers intelligent cloud software for contact centers, benefiting from a rise in subscription revenues and Enterprise AI revenues [10] - The platform includes interactive virtual agents and AI insights, optimizing customer interactions across various channels [12] - Expected revenue and earnings growth rates for the current year are 9.5% and 8.3%, respectively, with a 1.3% improvement in the earnings consensus estimate over the last 60 days [15] Qualys Inc. (QLYS) - Qualys is experiencing increased demand for cloud-based cybersecurity solutions amid rising cyber threats [16] - The company has made strategic acquisitions to enhance its growth, including Blue Hexagon, which improved its threat detection capabilities [17] - Expected revenue and earnings growth rates for the current year are 7.7% and 6.5%, respectively, with a 10.4% improvement in the earnings consensus estimate over the last 60 days [19] Teradata Corp. (TDC) - Teradata's prospects are bolstered by improvements in annual recurring revenue (ARR) growth and cost-saving measures [20] - The company offers a portfolio that includes advanced analytics and AI capabilities, which are expected to drive top-line growth [21] - Expected revenue and earnings growth rates for the current year are -0.6% and 3.6%, respectively, with an 8.3% improvement in the earnings consensus estimate over the last 60 days [23] BlackBerry Ltd. (BB) - BlackBerry provides intelligent security software and services, leveraging AI for cybersecurity and data privacy [24] - The QNX business is gaining traction in the automotive sector, with its software suite installed in over 275 million vehicles [27] - Expected revenue and earnings growth rates for the next year are 7.4% and 13.3%, respectively, with a 6.3% improvement in the earnings consensus estimate over the last 30 days [28]

Industry Overview - Cybersecurity is a rapidly growing market driven by the digitization of organizations and the increasing scale of cyber threats, with demand expected to continue growing through 2026 as threats evolve and architectures shift to cloud and AI [1] - The global cybersecurity market is projected to grow from $218.98 billion in 2025 to $562.77 billion by 2032, reflecting a compound annual growth rate (CAGR) of 14.40% [2] - Key sectors for investment opportunities include finance, healthcare, and government, with significant potential in AI-driven security, managed security services, and zero-trust architectures, particularly in emerging markets like Asia Pacific and South America [2] Market Dynamics - The cybersecurity sector benefits from strong secular tailwinds, but faces challenges such as intense competition, rapid technological changes, regulatory complexity, and high talent costs [3] - As cyber threats increase across various environments, companies are compelled to invest more in cybersecurity, making it essential for business continuity and digital trust [1][3] Company Highlights - **Qualys Inc. (QLYS)**: A leading provider of information security solutions, with a focus on continuous product innovation in areas like Vulnerability Management, Detection, and Response. The company raised its full-year 2025 revenue guidance to $665.8 million to $667.8 million, reflecting a 10% year-over-year increase [5][6] - **Fortinet Inc. (FTNT)**: Provides network security appliances and Unified Threat Management solutions. The company is experiencing strong demand from large enterprise customers, although it faces challenges in sales execution and marketing efficiency. Its full-year revenue guidance is $6.72 billion to $6.78 billion [8][9] - **CrowdStrike (CRWD)**: Specializes in next-generation endpoint protection and threat intelligence. The company expects revenues for fiscal 2026 to be between $4.797 billion and $4.807 billion, with a strong sales pipeline and customer adoption of its Falcon platform [10][11] - **Palo Alto Networks (PANW)**: Offers network security solutions and is enhancing its platform strategy through the acquisition of CyberArk Software, expected to close in the second half of fiscal 2026. This acquisition aims to strengthen identity-aware security and is projected to be accretive to revenue growth and gross margin [14][15]

Core Insights - The article discusses the recent insider sale of shares by Sumedh S Thakar, CEO of Qualys, highlighting the context and implications of this transaction in relation to the company's performance and market conditions [6][8]. Company Overview - Qualys is a leading provider of cloud-based security and compliance solutions, enabling organizations to identify, manage, and remediate IT vulnerabilities at scale [7]. - The company's SaaS platform integrates asset discovery, vulnerability management, and compliance monitoring, supporting evolving cybersecurity requirements [7]. Transaction Details - Sumedh S Thakar sold 8,500 shares on November 14, 2025, following the exercise of 6,500 stock options, as disclosed in a SEC Form 4 filing [6][4]. - The shares were sold at a weighted average price of $142.68, with the market closing at $143.57 on the transaction date [2]. - After this transaction, Thakar's direct holdings decreased to 254,800 shares, valued at approximately $36.6 million, representing a reduction of 3.23% in direct share count [3]. Market Context - As of November 14, 2025, the stock had declined 3.9% over the prior year, with the current price standing at $143.07, slightly above the transaction price [2]. - The sale of 8,500 shares exceeds the recent median insider sale of 7,000 shares from June 14, 2024, through November 14, 2025, accounting for 3.23% of pre-transaction direct holdings [5]. Financial Performance - Qualys reported a 14% increase in GAAP gross profit in its fiscal third-quarter results, with an increased GAAP gross margin to 84% compared to 81% for the same quarter in 2024 [9]. - The company also experienced a 33% increase in GAAP operating income and a 9% increase in GAAP net income [9]. Valuation Metrics - Qualys currently trades at a price-to-earnings ratio of about 28, which is below the broader software industry average of roughly 33 [10]. - The stock is considered slightly overvalued with a proprietary Fair Ratio of 25.1, indicating potential concerns regarding the company's earnings growth and overall risk [10].

Industry Overview - Cybersecurity has evolved into a major business priority due to the increasing frequency and sophistication of cyberattacks, which can result in significant financial losses and brand damage [1] - The global cybersecurity market is projected to grow from $193.7 billion in 2024 to nearly $563 billion by 2032, reflecting a compound annual growth rate (CAGR) of 14.4% [2] Technological Advancements - Traditional security tools are becoming inadequate against modern threats, leading to the integration of artificial intelligence (AI) in cybersecurity to enable proactive threat detection and response [3] - Companies are leveraging AI to analyze large volumes of data, allowing for faster detection and remediation of security threats [7] Key Players and Strategies - **Qualys** focuses on vulnerability management and cloud security, enhancing its AI capabilities to strengthen its market position [6] - **Palantir Technologies** combines its Foundry and Gotham platforms with a comprehensive AI strategy, targeting both government and commercial sectors to improve operational efficiency [10][12] - **Cloudflare** is integrating AI into its services, offering an edge computing platform that enhances security and performance, with significant adoption of its AI-powered solutions [14][15] - **SailPoint** provides AI and machine learning-enabled identity security solutions, automating processes to improve efficiency and security for enterprise customers [17][18] Market Dynamics - The demand for advanced cybersecurity solutions is driven by the increasing complexity of digital networks and new compliance requirements [2] - Companies that effectively integrate AI into their cybersecurity offerings are positioned to capture significant market share and drive long-term revenue growth [8][12]