At a glance
Qualys Inc is worth $7.73B, about 41 times its fiscal 2025 earnings. Revenue grew 10.1% to $669.1M in fiscal 2025, with 29.6% kept as profit; over 5 years it has grown 13.0% a year. It pays no dividend; it spent $941.4M buying back its shares over FY2021–FY2025. The stock returned +76.0% over the past year with dividends reinvested and +13.2% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 27.9% in the 2020 crash (S&P 500: 33.7%) and 24.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 3 months after the lows.
The business in plain English
Qualys sells cybersecurity software delivered over the internet. Its Enterprise TruRisk Platform helps organizations keep track of their computers, servers, cloud systems and mobile devices. It finds security weaknesses (called vulnerabilities), ranks which ones pose the most risk and confirms that fixes were applied. It also helps customers show that they meet internal policies and outside regulations. Qualys was founded in 1999 and launched its first product, Vulnerability Management, in 2000. It has since built more than 20 Cloud Apps on one shared platform.
Qualys uses a software-as-a-service (SaaS) model. Customers pay a subscription to use the software online instead of buying and installing it. Subscriptions are mainly annual and renewable. Qualys usually bills the full amount upfront, then counts it as revenue gradually over the term. Growth comes from customers who renew and add apps, and from winning new customers. Third-party sales partners, called channel partners, generate a substantial amount of revenue.
Its annual report for the year ended December 31, 2025 says more than 10,000 customers use the platform. They range from small businesses to a majority of the Forbes Global 100. Revenue rose to $669.1 million in 2025, from $607.6 million in 2024 and $554.5 million in 2023. The United States supplied 56.4% of 2025 revenue and other countries supplied 43.6%.
Price history
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QLYS +76.0% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By geography
| United States | $377.5M | 56.4% |
| Foreign | $291.7M | 43.6% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $182.2M, up 11% from a year earlier, and net income was $52.4M (+10.8%).
- For fiscal 2025, revenue was $669.1M (+10.1% year over year; +13.0% a year from FY2020 to FY2025) with a 29.6% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +13.0% good |
|---|---|
| Operating margin | 33.2% good |
| Free cash flow margin | 45.5% good |
| Return on equity (FY2025) | 35.3% good |
| Return on assets (FY2025) | 18.1% good |
| Cash and investments | $250.3M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $363.0M | $91.6M | $150.0M |
| FY2021 | $411.2M | $71.0M | $176.2M |
| FY2022 | $489.7M | $108.0M | $183.5M |
| FY2023 | $554.5M | $151.6M | $235.8M |
| FY2024 | $607.6M | $173.7M | $231.8M |
| FY2025 | $669.1M | $198.3M | $304.4M |
Valuation snapshot
| Market value | $7.73B |
|---|---|
| P/E ratio | 41.1 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Qualys’s market value went from $1.13B at the end of 2016 to $7.73B on Oct 28, 2026, about 6.8 times as much; since the end of 2025 it is up 62%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $7.73B | +62.3% |
| 2025 | $4.77B | -7.1% |
| 2024 | $5.13B | -28.9% |
| 2023 | $7.22B | +69.4% |
| 2022 | $4.26B | -20.0% |
| 2021 | $5.33B | +12.0% |
| 2020 | $4.75B | +47.1% |
| 2019 | $3.23B | +9.8% |
| 2018 | $2.94B | +30.8% |
| 2017 | $2.25B | +99.2% |
| 2016 | $1.13B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| QLYS price data to Oct 28, 2026 | +68.2% | +76.0% | +13.7% | +13.2% | +19.7% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +68.2% |
| 2025 | -5.2% |
| 2024 | -28.6% |
| 2023 | +74.9% |
| 2022 | -18.2% |
| 2021 | +12.6% |
| 2020 | +46.2% |
| 2019 | +11.6% |
| 2018 | +25.9% |
| 2017 | +87.5% |
| 2016 | -4.3% |
| 2015 | -12.3% |
| 2014 | +63.4% |
| 2013 | +56.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 16.4% over that stretch · deepest drop along the way 27.9%, back to its old high 0.9 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 4% over that stretch · deepest drop along the way 24.9%, back to its old high 3.2 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 81 sales ($11.0M), 81 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 30, 2026 | Sumedh S Thakar CEO & PRESIDENT, Director | sell (plan) | $1.4M |
| Jun 30, 2026 | Sumedh S Thakar CEO & PRESIDENT, Director | sell (plan) | $1.4M |
| Jun 30, 2026 | Sumedh S Thakar CEO & PRESIDENT, Director | sell (plan) | $1.3M |
| Jun 26, 2026 | Sumedh S Thakar CEO & PRESIDENT, Director | sell (plan) | $1.2M |
| Jun 29, 2026 | Sumedh S Thakar CEO & PRESIDENT, Director | sell (plan) | $634K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14% | Mar 31, 2025 |
| Vanguard Portfolio Management | 7.19% | Mar 31, 2026 |
| Vanguard Capital Management | 5.2% | Mar 31, 2026 |
ETFs with the most weight in QLYS
| BUG Global X Cybersecurity ETF | 4.44% |
| SPAM Themes Cybersecurity ETF | 4.44% |
| PSWD Xtrackers Cybersecurity Select Equity ETF | 4.3% |
| CLOU Global X Cloud Computing ETF | 4.28% |
| WCBR WisdomTree Cybersecurity Fund | 4.04% |
| IHAK iShares Cybersecurity & Tech ETF | 3.53% |
| HACK Amplify Cybersecurity ETF | 3.29% |
| FORH Formidable ETF | 1.91% |
What could go wrong
- Missed threats would damage its reputation. Customers pay Qualys to find security weaknesses. If its software misses a vulnerability or flags problems that aren't real, its brand and reputation could be harmed, and sales and results could suffer.
- A security firm that could be breached. Qualys's platform, website and internal systems could be hacked or disrupted. For a security vendor that holds customers' security data, a breach could create legal liability and hurt future sales.
- Growth depends on renewals and add-ons. Revenue comes mainly from annual subscriptions. Results would suffer if customers fail to renew or buy fewer extra apps, or if long, unpredictable sales cycles make new customers hard to win.
- Competition could push prices down. Security software changes fast, customers are price-sensitive and new products arrive often. Some rivals may have more money and resources, and competitive pressure could lower Qualys's prices and gross profits.
- New technology could make its tools obsolete. Security technology changes quickly. Sales could weaken if Qualys misjudges customer needs, if its research fails to produce successful products, or if disruptive technologies replace its cloud tools.
- Reliance on partners and overseas sales. Third-party channel partners generate a substantial amount of revenue, and 43.6% of 2025 revenue came from outside the US. Poorly managed partners, currency swings or foreign rule changes could hurt results.
Recent events
- Quarterly results released
- Executive or board change; Shareholder vote results
- Quarterly results released
- Quarterly results released
- Quarterly results released
For income and retirement investors
Qualys does not pay a dividend, and its annual report for 2025 says it does not intend to. Any return therefore comes from the share price alone. Investors who need regular income would have to sell shares to raise cash. The company returns money through buybacks instead. It spent about $941 million repurchasing stock from fiscal 2021 through fiscal 2025, including $183.4 million in 2025. Free cash flow (cash left after running and investing in the business) was $304.4 million that year. Shares outstanding fell 11.2% between August 3, 2021 and July 22, 2026.
The price can swing sharply. In the 2020 COVID crash it fell 27.9% from peak to low, then recovered within about a month. In the 2022 market slump it dropped 24.9% and got back to its earlier high in about three months. Over the three years to October 28, 2026, its deepest decline was 63%. A single stock carries more risk than a diversified fund.
Questions investors ask
Does Qualys pay a dividend?
No. Qualys does not pay a dividend, and its annual report for the year ended December 31, 2025 says it does not intend to. Shareholder returns depend on the share price. The company does return cash through buybacks. It spent about $941 million on repurchases from fiscal 2021 through fiscal 2025. Shares outstanding fell 11.2% between August 3, 2021 and July 22, 2026, so each remaining share represents a slightly larger slice of the business.
How does Qualys make money?
Qualys makes money by selling subscriptions to its cloud-based security and compliance software. Customers pay, mostly on renewable annual terms, to use one or more of its 20-plus Cloud Apps. These track devices, find security weaknesses, rank them by risk and help fix them. Qualys usually bills upfront and records the revenue over the subscription term. Revenue was $669.1 million in fiscal 2025, with 56.4% from the United States and 43.6% from other countries.
Is Qualys profitable?
Yes. In fiscal 2025, which ended December 31, 2025, Qualys earned net income of $198.3 million on revenue of $669.1 million, a net profit margin of 29.6%. Free cash flow was $304.4 million. Diluted earnings per share rose to $5.44 from $2.25 in 2020. In the quarter ended June 30, 2026, revenue grew 11% and net income grew 10.8% from a year earlier. Qualys held $250.3 million in cash and investments as of June 30, 2026.
What is Qualys's P/E ratio?
About 41 as of October 28, 2026, based on 2025 earnings. The price-to-earnings (P/E) ratio is the share price divided by a year's profit per share. At about 41, investors were paying roughly $41 for each $1 of annual earnings. A high P/E usually reflects expectations of continued growth. Qualys grew revenue 10.1% in 2025 and about 13% a year on average over the five years from 2020. Its market value was about $7.7 billion on that date.
How has Qualys stock performed?
It has risen over long periods, with big swings along the way. As of October 28, 2026, the share price was up 506% over 10 years, about 19.7% a year. It was up 86% over five years, about 13.2% a year. The stock gained 68.2% for 2026 through that date, after falling 28.6% in 2024 and 5.2% in 2025. Within the past year alone, it had a peak-to-trough drop of 50.5%.