Qualys, Inc., founded in 1999 and headquartered in Foster City, California, specializes in delivering cloud-based solutions for information technology (IT) management, cybersecurity, ...
Qualys, Inc., founded in 1999 and headquartered in Foster City, California, is a pioneer in cloud-based security and compliance. The company's integrated Qualys Cloud Platform offers a comprehensive suite of applications for vulnerability management, threat detection and response, endpoint security, patch management, web application scanning, and cloud/container security. These tools ...Qualys, Inc., founded in 1999 and headquartered in Foster City, California, is a pioneer in cloud-based security and compliance. The company's integrated Qualys Cloud Platform offers a comprehensive suite of applications for vulnerability management, threat detection and response, endpoint security, patch management, web application scanning, and cloud/container security. These tools enable customers to discover IT assets, prioritize vulnerabilities, and automate remediation, with real-time analytics and reporting. Qualys serves over 10,000 customers in more than 130 countries, including enterprises and government entities. The platform is delivered as a subscription service, with a business model based on recurring revenue. Financially, Qualys has shown strong profitability with a net margin around 29%, high gross margins (83.5%), and solid free cash flow. Key executives include CEO Sumedh Thakar, CFO Joo Mi Kim, and CTO Dilip Bachwani. The company is publicly traded on NASDAQ under QLYS, with an enterprise value of ~$6.26 billion (TTM). Qualys continues to innovate, recently introducing an AI-native risk operations center and expanding its partnerships with cloud providers. Its total addressable market is growing due to increasing cybersecurity threats and regulatory demands, leading to strong growth prospects. However, the company faces competition from other security vendors and must manage costs effectively. Overall, Qualys is well-positioned for continued success in the cybersecurity sector.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$669.1M
+10.1%
+3.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$198.3M
+14.2%
+3.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+82.8%
+1.5%
-0.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+33.2%
+7.7%
-4.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+29.6%
+3.7%
+0.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$304.4M
+31.3%
-40.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+45.5%
+19.3%
-42.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
17.3%
+75.1%
+3.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.41x
+2.9%
-3.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Ladies and gentlemen, thank you for standing by. Welcome to Qualys' Second Quarter 2026 Investor Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would like now to turn the conference over to Blair King, Investor Relations. Please go ahead.
Blair King: Thank you, Michelle. Good afternoon, and welcome to Qualys' Second Quarter 2026 Earnings Call. Joining me today to discuss our results are Sumedh Thakar, our President and CEO; and Joo Mi Kim, our CFO. Before we get started, I would like to remind you that our remarks today will include forward-looking statements that generally relate to product capabilities, future events or future financial or operating performance. Actual results may differ materially from these statements. Factors that could cause results to differ materially are set forth in today's press release and our filings with the SEC, including our latest Form 10-Q and 10-K. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's press release. And as a reminder, the press release, prepared remarks and investor presentation are all available on the Investor Relations section of our website. With that, I'd like to turn the call over to Sumedh.
Sumedh Thakar: Thank you, Blair, and welcome to our second quarter earnings call. The adversary's playbook has been fundamentally rewritten by AI, collapsing exploit time lines and making one thing undeniably clear. Durable pre-breach risk management increasingly requires a vendor-neutral agentic AI fabric that moves beyond theoretical exposure to autonomous quantification of actual exploitable risk and remediation. Demonstrating this conviction, we delivered another quarter of strong revenue growth and profitability. The urgency behind that conviction continues to intensify. Frontier and open source AI models are capable of discovering and weaponizing vulnerabilities faster than any human team can triage them, compressing exploit time lines to hours and in some cases, turning disclosure into compromise before a patch even exists. AI is simultaneously becoming the greatest force multiplier and the most formidable challenge cybersecurity has ever faced. Where we part ways with the continuous threat exposure management, CTEM, solutions, is how we respond to it. CTEM solutions today respond by generating more findings, more theoretical risk scores and more dashboards and then pass along these findings off to siloed solutions that collect data and do the patching while losing critical time at every handoff. That approach was already failing before AI accelerated the threat landscape, and it is fundamentally inadequate now. We believe the defenders who win in …
