Qualys Stock Soars 8% as Q2 Earnings and Revenues Beat Estimates

Core Insights - Qualys, Inc. (QLYS) shares rose 8.3% after reporting better-than-expected Q2 2025 results, with non-GAAP earnings of $1.68 per share, exceeding the Zacks Consensus Estimate of $1.47 and management's guidance of $1.40-$1.50 [1][11] Financial Performance - Q2 revenues increased by 10% year over year to $164.1 million, surpassing the Zacks Consensus Estimate of $161.2 million, driven by a strong partner ecosystem [3][11] - Non-GAAP gross profit rose 10% year over year to $137.8 million, maintaining a gross margin of 84% [6] - Non-GAAP operating income grew 6% to $70.1 million, with an operating margin of 43%, reflecting increased investments in sales, marketing, and R&D [6] - Adjusted EBITDA increased by 5% to $73.4 million, with a margin decline to 45% from 47% [7] Revenue Breakdown - Sales from channel partners grew 17%, accounting for 49% of total revenues, while direct sales contributed 51% with a growth of 4% [4][11] - U.S. sales increased by 7%, contributing approximately 57% to total revenues, while international sales rose by 15%, making up 43% of revenues [4] Cash Flow and Share Repurchase - The company ended the quarter with cash and cash equivalents of approximately $621 million, down from $640 million year over year [8] - Operating cash flow for Q2 was $33.8 million, with free cash flow at $32.4 million [8] - Qualys repurchased stocks worth $49.2 million in Q2 and $89.5 million in the first half of 2025, with $254.6 million remaining under the share repurchase program [9] Guidance Updates - Qualys raised its 2025 EPS guidance to $6.20-$6.50 and revenue forecast to $656 million-$662 million, indicating an 8-9% year-over-year improvement [12][13] - For Q3, the company expects revenues between $164.5 million and $167.5 million, with non-GAAP earnings projected at $1.50-$1.60 [14]