QLYS earnings analysis
What we found in QLYS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.5
- Gross margin
- 83.4%
- Operating margin
- 34.0%
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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