10-Q · May 5, 2026
Qualys, Inc. reported strong Q1 2026 results with revenues reaching $175.6 million and diluted EPS at $1.95, surpassing estimates of $173.6 million and $1.70, respectively. This marks a 10% year-over-year revenue…
Earnings analysis · 10-Q
QLYS earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Qualys delivered solid Q2 execution, with revenue of $182.175 million up 11% year over year, GAAP diluted EPS of $1.50, and operating margin expansion to 34.0%. Sequential revenue grew 3.7%, while gross margin increased…
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Qualys delivered solid Q2 execution, with revenue of $182.175 million up 11% year over year, GAAP diluted EPS of $1.50, and operating margin expansion to 34.0%. Sequential revenue grew 3.7%, while gross margin increased to 83.4%; however, operating margin moderated from 34.7% in Q1 as sales and marketing spending rose. Liquidity remains substantial at $703.5 million, supported by $154.908 million of six-month operating cash flow, although the company used $131.4 million for repurchases. The filing itself gives no numeric outlook, but management expects continued growth from existing and new customers amid macroeconomic, sales-cycle, channel, and foreign-exchange risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.5
What stood out
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Revenue growth accelerated to $182.2M
Q2 revenue rose $18.1 million, or 11%, year over year to $182.175 million and increased $6.537 million, or 3.7%, sequentially from implied Q1 revenue of $175.638 million. Of the year-over-year increase, 97% came from customers existing before April 1, 2026.
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Gross and operating margins expanded YoY
Gross margin was 83.4% in Q2, up from 82.4% a year earlier and 82.9% in Q1. Operating margin reached 34.0%, expanding from 31.3% in Q2 2025, though down from 34.7% in Q1 2026 as sales and marketing expense rose 15% year over year to $41.024 million.
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Earnings and EBITDA grew double digits
GAAP diluted EPS was $1.50, versus $1.42 in Q1 2026 and $1.29 in Q2 2025. Q2 net income increased 11% to $52.405 million from $47.290 million, while adjusted EBITDA grew to $83.777 million from $73.431 million.
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Expansion rate and channel contribution improved
Net dollar expansion rate improved to 105% as of June 30, 2026 from 104% a year earlier, supporting the reliance on existing customers for growth. Partners generated 54% of Q2 revenue, and 98% of the $18.1 million year-over-year revenue increase was partner-sourced.
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Strong cash conversion and liquidity
Six-month operating cash flow increased to $154.908 million from $143.359 million. Capital expenditures were $5.4 million, equal to roughly 3.5% of operating cash flow, while cash, cash equivalents and marketable securities ended at $703.5 million.
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Large buyback deployment continues
The company deployed $131.4 million to share repurchases in the first six months and repurchased 797,036 shares in Q2. It retained $229.8 million under the authorization as of June 30, 2026.
What to watch
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Macro pressure can lengthen sales cycles
Management cites reduced spending and extended sales cycles amid macro uncertainty. The typical sales cycle is 6 to 12 months and can exceed 18 months, creating booking volatility and making near-term revenue difficult to forecast.
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Material dependence on non-exclusive partners
Channel partners represented 53% of six-month revenue and 54% of Q2 revenue. These agreements are generally non-exclusive, so a partner shift toward competing products could affect sales growth.
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International and FX concentration exposure
International execution and currency exposure remain meaningful: 26% of six-month revenue was denominated in foreign currencies, 29% of expenses were incurred in foreign currencies, and 71% of employees were located in India as of June 30, 2026.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. Management states that it expects growth from new and existing customers to continue, while also expecting absolute-dollar investment increases in infrastructure, R&D, sales and marketing, and G&A.
Earlier filings 4
10-K · February 20, 2026
Qualys, Inc. reported a strong financial performance for the year ending December 31, 2025, with revenue growth of 10% year-over-year, driven largely by existing customers renewing and expanding their subscriptions. The…
10-Q · November 4, 2025
Qualys, Inc. reported a solid growth in Q3 2025, achieving $170 million in revenue, an increase of 10% year-over-year. Concurrently, EPS rose significantly to $1.86, surpassing consensus estimates by 36%. Management…
10-Q · August 5, 2025
Qualys, Inc. reported solid Q2 2025 results, with revenues rising to $164.1 million, a 10% increase from the previous year, and earnings per share of $1.68, surpassing expectations. The company's gross margin improved…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.