Core Insights - Qualys, Inc. will report its financial results for the fourth quarter of 2025 on February 5, 2026, after market close [1] - A conference call and live webcast will be held on the same day at 5:00 p.m. Eastern Time to discuss the financial results [2] Company Overview - Qualys is a leading provider of cloud-based IT, security, and compliance solutions, serving over 10,000 subscription customers globally, including many from the Forbes Global 100 and Fortune 100 [3] - The company offers the Qualys Enterprise TruRisk Platform, which automates vulnerability detection, compliance, and protection across various IT environments [4] - Founded in 1999, Qualys has established strategic partnerships with major cloud service providers like Amazon Web Services, Google Cloud Platform, and Microsoft Azure [4]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - The Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - Stocks with higher Style Scores have a better chance of outperforming the market [3] Categories of Style Scores - **Value Score**: Focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to highlight attractive investment opportunities [4] - **Growth Score**: Analyzes projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [5] - **Momentum Score**: Assesses price trends and earnings outlook changes to identify favorable buying opportunities for high-momentum stocks [6] - **VGM Score**: A composite score that combines Value, Growth, and Momentum Scores, serving as a crucial indicator alongside the Zacks Rank [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores to narrow down their choices [9] Stock Recommendation: Qualys Inc. (QLYS) - Qualys Inc. is recognized for its comprehensive information security solutions, including asset management and cloud-native security [12] - Currently rated 3 (Hold) on the Zacks Rank, Qualys has a VGM Score of B and a Growth Style Score of A, indicating a projected year-over-year earnings growth of 13.9% for the current fiscal year [13] - The Zacks Consensus Estimate for Qualys has increased by $0.07 to $6.98 per share, with an average earnings surprise of +16.6%, making it a strong candidate for growth investors [13][14]

Summary of Cybersecurity Industry Conference Call Industry Overview - The conference call focused on the **cybersecurity industry** in North America, particularly the performance and outlook for 2026. - **Platforms** have been identified as the primary source of excess returns in 2025, with a notable performance disparity between platform companies and other cybersecurity names. Key Points Performance Metrics - Platforms (e.g., Palo Alto Networks (PANW), CrowdStrike (CRWD), Zscaler (ZS), CyberArk (CYBR)) saw an average return of **~30%** in 2025, while other cybersecurity names were down **~12%** [3][7]. - The overall cybersecurity market was largely flat, with platforms being viewed as multi-year compounders due to their growth potential [3][14]. Growth Expectations - Continued favor for platforms is expected, but M&A activities in the first half of 2026 may create volatility and present opportunities for other companies [4][31]. - Companies like Netskope (NTSK) and SailPoint (SAIL) are highlighted as potential outperformers with expected growth rates of **20%+** [3][9]. M&A Impact - The ongoing M&A activities, such as PANW's acquisition of CyberArk and ZS's acquisition of Red Canary, may create short-term noise around organic growth metrics [8][31]. - Despite the potential for dilution and integration challenges, these acquisitions are expected to enhance long-term growth prospects [8][31]. Valuation Insights - PANW is noted as a top pick due to its reasonable valuation at **25x EV/27e FCF**, which is in line with large-cap software [7][31]. - Other companies like SAIL and NTSK are seen as undervalued with significant upside potential, trading at lower multiples compared to their growth prospects [9][35]. Market Dynamics - The cybersecurity market is characterized by a trend towards consolidation, with enterprises increasingly looking to reduce the number of disparate security tools [54]. - The shift towards platformization is expected to continue, driven by the need for integrated solutions that enhance security effectiveness [54]. Additional Insights Emerging Opportunities - The AI security segment is growing rapidly, with Zscaler's AI Security revenue expected to exceed **$500 million** by year-end, reflecting a **80%+ YoY growth** [32]. - SailPoint is positioned to benefit from the transition to cloud and AI, with multiple avenues for growth including a **$2 billion+ legacy replacement opportunity** [35]. Cautionary Notes - Companies like Fortinet (FTNT) are viewed with caution due to potential downward revisions in growth expectations, particularly related to firewall refresh cycles [38][45]. - Qualys (QLYS) faces longer-term growth concerns despite recent performance, with a need for clearer visibility into future growth drivers [46]. Conclusion - The cybersecurity industry is poised for continued growth, particularly among platform companies, despite potential short-term challenges from M&A activities. - Investors are encouraged to consider both established platforms and emerging players with strong growth narratives as they navigate the evolving landscape of cybersecurity.

Core Insights - Qualys, Inc. (QLYS) stock has increased by 8.3% since the last analysis, indicating positive market sentiment towards the company [1] Group 1: Company Strategy - The company is actively repositioning itself as a risk operations workflow platform rather than just a vulnerability management provider, suggesting a strategic shift to enhance its market appeal and product offerings [1]

Core Viewpoint - Qualys, Inc. (QLYS) shows potential as a stock pick due to a recent "golden cross" event, indicating a bullish trend reversal [1][4]. Technical Analysis - A "golden cross" occurs when a short-term moving average (50-day) crosses above a long-term moving average (200-day), suggesting a potential bullish breakout [2]. - The successful golden cross event consists of three stages: a price decline bottoming out, the shorter moving average crossing above the longer moving average, and the stock maintaining upward momentum [3]. Performance Metrics - Over the past four weeks, QLYS has gained 7.8%, indicating positive price movement [4]. - The stock currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting it may be poised for further breakout [4]. - Earnings expectations for QLYS have improved, with 8 upward revisions and no downward changes in the last 60 days, leading to an increase in the Zacks Consensus Estimate [4]. Investment Consideration - Given the significant technical indicator and positive earnings estimate movement, QLYS should be considered for the watchlist [6].

Core Insights - Tenable Holdings, Inc. specializes in vulnerability management within the cybersecurity sector, competing with companies like Rapid7, Varonis Systems, Qualys, Elastic N.V., and Smartsheet [1] Financial Performance - Tenable's Return on Invested Capital (ROIC) is -0.97%, which is below its Weighted Average Cost of Capital (WACC) of 7.12%, indicating inefficient capital utilization [2][5] - In contrast, Rapid7 has a positive ROIC of 0.79% against a WACC of 5.36%, demonstrating better capital efficiency [2] - Varonis Systems shows a strong performance with a ROIC of 9% and a WACC of 6.18%, resulting in a ROIC to WACC ratio of 1.45, indicating effective capital use [3] - Qualys leads the sector with a ROIC of 28% and a WACC of 6.32%, achieving a ROIC to WACC ratio of 4.42, highlighting its superior capital efficiency [3][5] - Both Elastic N.V. and Smartsheet have negative ROICs, with Elastic at -64.50% and Smartsheet at -2.84%, suggesting challenges in generating returns above their cost of capital [4][5]

Core Insights - Donovan Jones is an IPO research specialist with 15 years of experience in identifying high-quality IPO opportunities [1] - He leads the investing group IPO Edge, which provides actionable information on growth stocks, including first-look IPO filings and an IPO calendar [1] Company and Industry Summary - IPO Edge offers a comprehensive guide to IPO investing, covering the entire lifecycle from filing to listing and lockup expiration dates [1]

Core Insights - Donovan Jones is an IPO research specialist with 15 years of experience in identifying high-quality IPO opportunities [1] - He leads the investing group IPO Edge, which provides actionable information on growth stocks, including first-look IPO filings and an IPO calendar [1] Company and Industry Summary - IPO Edge offers a comprehensive guide to IPO investing, covering the entire lifecycle from filing to listing and lockup expiration dates [1]

Core Insights - Qualys reported Q3 2025 earnings of $1.86 per share, exceeding the Zacks Consensus Estimate of $1.56 by 19.2% and up from $1.56 in the same quarter last year [1][10] - Revenues for Q3 2025 reached $169.88 million, surpassing the Zacks Consensus Estimate by 2.49% and reflecting a 10% year-over-year growth from $153.87 million [2][10] Revenue Breakdown - Sales from channel partners increased by 17%, contributing 50% to total revenues, while direct sales grew by 5% [3] - U.S. sales grew by 7%, accounting for approximately 56% of total revenues, while international sales rose by 15%, making up 44% [3] Profitability Metrics - Non-GAAP gross profit increased by 13% year over year to $144.9 million, with gross margin expanding to 85% from 83% [5] - Non-GAAP operating income rose by 21% to $80 million, with a margin improvement to 47% from 43% [5] - Adjusted EBITDA grew by 19% year over year to $82.6 million, with the adjusted EBITDA margin improving to 49% from 45% [6] Cash Flow and Share Repurchase - Qualys ended the quarter with $663.6 million in cash and equivalents, up from $621 million in the previous quarter [7] - Operating cash flow increased by 48% year over year to $90.4 million, while free cash flow reached $89.5 million, representing a 53% margin compared to 37% in the prior year [7][8] - The company repurchased 366,000 shares worth $49.4 million during Q3, with a cumulative total of 10.4 million shares repurchased valued at $1.2 billion [8] Guidance Update - Following a strong Q3 performance, Qualys raised its full-year 2025 revenue guidance to between $665.8 million and $667.8 million, up from the previous range of $656 million to $662 million, indicating a 10% year-over-year improvement [9] - Non-GAAP earnings guidance for 2025 was also raised to a range of $6.93 to $7.00 per share, up from $6.20 to $6.50 [10] - For Q4, Qualys expects revenues between $172.0 million and $174.0 million, indicating year-over-year growth of 8-9% [10]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]