Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the Fiscal Year Ended December 31, 2025 or o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-35662 ___________________________________________ Washington, D.C. 20549 ___________________________________________ FORM 10-K ___________________________________________ x Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange ...

Core Insights - Qualys, Inc. (QLYS) reported strong fourth-quarter results for 2025, with earnings of $1.87 per share, exceeding the Zacks Consensus Estimate of $1.78 by 5.35% and marking a 16.9% increase from the previous year's earnings of $1.60 [1][9] - The company achieved revenues of $175.3 million for Q4 2025, surpassing the Zacks Consensus Estimate by 1.30% and reflecting a 10% year-over-year growth from $159.2 million [2][9] Financial Performance - Non-GAAP gross profit increased by 12% year over year to $149 million, with a non-GAAP gross margin of 85%, up from 84% in the prior year [4] - Non-GAAP operating income rose 13% to $80.1 million, resulting in a margin of 46%, an improvement from 44% a year earlier [4] - Adjusted EBITDA increased by 11% year over year to $82.6 million, maintaining an adjusted EBITDA margin of 47% [5] Revenue Breakdown - Sales from channel partners surged 17%, contributing 51% to total revenues, while direct selling accounted for 49% [3] - U.S. sales grew 6% year over year, contributing approximately 56% to total revenues, while international sales rose 15%, accounting for 44% [3] Cash Flow and Share Repurchase - Qualys ended the quarter with $696.8 million in cash and equivalents, up from $663.6 million in the previous quarter [6] - The company generated operating cash flow of $75.7 million and free cash flow of $74.9 million in Q4 2025 [6] - Qualys repurchased 328,000 shares worth $44.7 million during the quarter, with a total of 10.7 million shares repurchased since February 2018, and authorized an additional $200 million for share repurchase [7] Guidance for Future Performance - For Q1 2026, Qualys expects revenues between $172.5 million and $174.5 million, indicating year-over-year growth of 8-9%, with non-GAAP earnings projected in the range of $1.76-$1.83 [8] - For the full year 2026, the company anticipates revenues between $717 million and $725 million, implying year-over-year growth of 7-8%, and non-GAAP earnings forecasted to be in the band of $7.17-$7.45 per share [10]

分组1 - Qualys reported quarterly earnings of $1.87 per share, exceeding the Zacks Consensus Estimate of $1.78 per share, and showing an increase from $1.6 per share a year ago, resulting in an earnings surprise of +5.35% [1] - The company achieved revenues of $175.28 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.30%, and up from $159.19 million year-over-year [2] - Qualys has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed the market, losing about 2.8% since the beginning of the year, while the S&P 500 has gained 0.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.77 on revenues of $173.57 million, and for the current fiscal year, it is $7.43 on revenues of $717.91 million [7] - The Zacks Industry Rank places the Security industry in the bottom 27% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported a revenue growth of 10% to $669.1 million, with an adjusted EBITDA margin of 47% and net income of $257.8 million, reflecting a 13% increase [18][19] - In Q4 2025, revenues grew 10% to $175.3 million, with channel partners contributing 51% of total revenues, up from 48% a year ago [19][20] - Free cash flow reached $304.4 million, representing 45% of revenues, exceeding expectations [18] Business Line Data and Key Metrics Changes - Customers spending $500,000 or more grew by 4% to 215, indicating a stable demand for the company's services [12] - New product contributions to bookings increased, with CyberSecurity Asset Management combined with ETM making up 10% of total bookings, up from 8% the previous year [21] - Patch Management accounted for 8% of total bookings, up from 7% last year, indicating strong demand for this service [21] Market Data and Key Metrics Changes - The company experienced 15% growth outside the US, compared to 6% growth in the domestic market, highlighting stronger international demand [20] - The US and international revenue mix was 56% and 44%, respectively, showing a balanced geographical revenue distribution [20] Company Strategy and Development Direction - The company is focusing on unifying fragmented security stacks into a centralized risk fabric, leveraging agentic AI to enhance risk management capabilities [5][6] - The introduction of an agentic AI risk management marketplace aims to provide customers with specialized autonomous experts to improve remediation speed and accuracy [8][9] - The company plans to accelerate ETM adoption through its VMDR customer base, positioning itself for larger upsell opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management anticipates a low to mid-single-digit growth in security spending to persist, reflecting a stable operating environment [20] - The gross dollar retention rate remained above 90%, with a net dollar expansion rate of 103%, indicating customer loyalty and potential for upsell [21] - The company expects revenue growth for 2026 to be in the range of 7%-8%, with a focus on maintaining profitability while investing in growth initiatives [24][25] Other Important Information - The company has authorized an increase of $200 million to its share repurchase program, bringing the total available for repurchases to $360.5 million [23] - The company is actively enhancing its partner ecosystem, with a focus on partner-led sales motions to drive growth [15] Q&A Session Summary Question: Can you talk about Q-Flex offerings and their impact on platform adoption? - Management highlighted that Q-Flex allows customers to consolidate capabilities on a single platform at their own pace, enhancing flexibility and encouraging broader adoption [27][30] Question: What is the customer sentiment regarding AI and its impact on net retention? - Management noted that the introduction of agentic AI capabilities is expected to enhance customer outcomes and drive net retention as customers leverage these advanced features [31][34] Question: How is Agent Val improving ETM efficacy and reducing man-hours? - Management explained that Agent Val confirms exploitability of vulnerabilities, saving IT teams time by reducing false positives and enabling quicker remediation [38][41] Question: What are the growth levers for 2026? - Management indicated that successful execution of ETM and ROC, along with partner engagement and Q-Flex adoption, are key to driving growth in 2026 [44][76] Question: What are the implications of the ServiceNow acquisition of Armis? - Management expressed confidence that their integrated patch management and risk management solutions differentiate them from competitors, including those resulting from acquisitions [50][52]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported a revenue growth of 10% to $669.1 million, with an adjusted EBITDA margin of 47% and net income increasing by 13% to $257.8 million [18][19] - In Q4 2025, revenues grew 10% to $175.3 million, with channel partners contributing 51% of total revenues, up from 48% a year ago [19] - Free cash flow reached $304.4 million, representing 45% of revenues, exceeding expectations [18] Business Line Data and Key Metrics Changes - The CyberSecurity Asset Management combined with ETM accounted for 10% of total bookings and 13% of new bookings in 2025, up from 8% and 9% respectively [20] - Patch Management made up 8% of total bookings and 16% of new bookings in 2025, an increase from 7% and 16% [20] - TotalCloud represented 5% of total bookings in 2025, up from 4% a year ago [21] Market Data and Key Metrics Changes - The company experienced 15% growth outside the U.S., surpassing the domestic business growth of 6% [19] - The U.S. and international revenue mix was 56% and 44% respectively [19] - The gross dollar retention rate remained above 90%, with a net dollar expansion rate of 103%, down from 104% in the previous quarter [20] Company Strategy and Development Direction - The company is focused on unifying fragmented security stacks into a centralized risk fabric, leveraging agentic AI to enhance risk management capabilities [5][6] - The introduction of the agentic AI risk fabric and the Risk Operations Center (ROC) aims to provide a comprehensive solution for pre-breach risk management [10][11] - The company plans to accelerate ETM adoption through its VMDR customer base and position itself for larger upsell opportunities [11][16] Management's Comments on Operating Environment and Future Outlook - Management anticipates a low to mid-single-digit growth in security spending to persist in 2026, reflecting customer prioritization of security within IT budgets [19] - The company expects revenue for 2026 to be in the range of $717 million to $725 million, representing a growth rate of 7% to 8% [23] - Management expressed optimism about the potential for upsell opportunities and the impact of new product discussions with existing customers [47][76] Other Important Information - The board authorized an increase of $200 million to the share repurchase program, bringing the total available amount for share repurchases to $360.5 million [22] - The company has been recognized as the number one patch management vendor by analysts, highlighting its strong position in the market [60] Q&A Session Summary Question: Can you talk about Q-Flex offerings and their impact on platform adoption? - Management highlighted that Q-Flex allows customers to consolidate capabilities on a single platform at their own pace, enhancing flexibility and encouraging broader adoption [26][29] Question: What is the customer sentiment regarding AI and its impact on net retention? - Management noted that the introduction of agentic AI capabilities is expected to enhance customer outcomes and drive upgrades from existing solutions, positively impacting net retention [30][33] Question: How does Agent Val improve ETM efficacy and reduce man-hours? - Management explained that Agent Val confirms exploitability of vulnerabilities, saving IT teams time by reducing false positives and enabling quicker remediation [38][41] Question: What are the growth levers for 2026? - Management indicated that growth will be driven by product innovation, partner engagement, and the successful rollout of ETM and ROC solutions [46][76] Question: What are the implications of the ServiceNow acquisition of Armis? - Management expressed confidence that their integrated patch management capabilities differentiate them from competitors, including those resulting from acquisitions [51][60]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported revenue growth of 10% to $669.1 million, with an adjusted EBITDA margin of 47% and net income increasing by 13% to $257.8 million [17][18] - In Q4 2025, revenues grew 10% to $175.3 million, with channel partners contributing 51% of total revenues, up from 48% a year ago [18][21] - Free cash flow reached $304.4 million, representing 45% of revenues, exceeding expectations [17] Business Line Data and Key Metrics Changes - CyberSecurity Asset Management combined with ETM accounted for 10% of total bookings and 13% of new bookings in 2025, up from 8% and 9% respectively [19] - Patch Management made up 8% of total bookings and 16% of new bookings in 2025, an increase from 7% and 16% [19] - TotalCloud represented 5% of total bookings in 2025, up from 4% the previous year [20] Market Data and Key Metrics Changes - The company experienced 15% growth outside the US, compared to 6% growth in the domestic market, with a revenue mix of 56% from the US and 44% from international markets [18] - The gross dollar retention rate remained above 90%, with a net dollar expansion rate of 103%, down from 104% in the previous quarter [18] Company Strategy and Development Direction - The company is focusing on unifying fragmented security stacks into a centralized risk fabric, leveraging agentic AI to enhance pre-breach risk management [4][5] - The introduction of an agentic AI risk management marketplace aims to provide organizations with autonomous experts to reduce remediation time and costs [6][9] - The company plans to accelerate ETM adoption through its VMDR customer base and position itself for larger upsell opportunities [9][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates a low to mid-single-digit growth in security spending to persist in 2026, reflecting customer prioritization of security within IT budgets [18] - The company expects revenue for 2026 to be in the range of $717 million to $725 million, representing a growth rate of 7% to 8% [23] - Management expressed optimism about the potential for upsell opportunities and the impact of new product discussions with existing customers [46][77] Other Important Information - The company has authorized an increase of $200 million to its share repurchase program, bringing the total available amount for share repurchases to $360.5 million [22] - The company is focusing on enhancing its partner ecosystem, with an increase in partner-led deal registrations reflecting deeper alignment and execution across the channel [14] Q&A Session Summary Question: Can you talk about Q-Flex offerings and their impact on platform adoption? - The Q-Flex proposal allows customers to consolidate capabilities on a single platform at their own pace, enhancing flexibility and encouraging broader adoption [26][29] Question: What is the customer interest in AI and its impact on net retention? - The introduction of an AI agent marketplace allows customers to augment their security teams, potentially improving net retention as they leverage agentic AI capabilities [31][34] Question: How is Agent Val enhancing ETM efficacy and reducing man-hours? - Agent Val confirms exploitability in the environment, saving IT teams time by reducing false positives and enabling immediate remediation actions [41][42] Question: What are the growth levers for 2026? - The company is focusing on product innovation, partner engagement, and federal opportunities to drive growth, with expectations for continued upsell potential [46][77] Question: How does the acquisition of Armis by ServiceNow impact the competitive landscape? - The company believes that the lack of integrated patch management in competitors' offerings, like Armis, will allow it to maintain a competitive edge [52][60]

Investor Presentation Security and Compliance for the Digital Transformation Sumedh Thakar, President and CEO Joo Mi Kim, CFO February 5, 2026 Safe harbor This presentation includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this presentation include, but are not limited to, the following list: Our expectations and beliefs regarding t ...

Revenue Growth - Q4 2025 revenue increased by 10% year-over-year to $175.3 million, compared to $159.2 million in Q4 2024[3] - Full year 2025 revenue also grew by 10% to $669.1 million, up from $607.6 million in 2024[9] - Revenues for Q4 2025 reached $175.3 million, a 10.5% increase from $159.2 million in Q4 2024[36] - Full year 2026 revenue guidance is projected to be between $717.0 million and $725.0 million, indicating 7% to 8% growth over 2025[21] Profitability - GAAP net income for Q4 2025 rose by 21% to $53.2 million, or $1.47 per diluted share, compared to $44.0 million, or $1.19 per diluted share, in Q4 2024[6] - Non-GAAP net income for Q4 2025 increased by 14% to $67.7 million, or $1.87 per diluted share, compared to $59.4 million, or $1.60 per diluted share, in Q4 2024[6] - Full year 2025 GAAP net income was $198.3 million, or $5.44 per diluted share, a 14% increase from $173.7 million, or $4.65 per diluted share, in 2024[12] - Net income for Q4 2025 was $53.2 million, representing a 21% increase compared to $44.0 million in Q4 2024[36] - Non-GAAP net income per diluted share for the full year 2025 was $5.44, an increase from $4.65 in 2024[36] - Net income for the twelve months ended December 31, 2025, was $198,320, an increase of 14.2% from $173,680 in 2024[40] - The diluted GAAP net income per share for the twelve months ended December 31, 2025, was $5.44, up from $4.65 in 2024[44] Cash Flow and Investments - Operating cash flow for Q4 2025 surged by 59% to $75.7 million, representing 43% of revenues, compared to 30% in Q4 2024[8] - Cash flow from operating activities for the twelve months ended December 31, 2025, was $309,400, compared to $244,094 in 2024, indicating strong operational performance[40] - Non-GAAP free cash flows for the twelve months ended December 31, 2025, were $304,410, compared to $231,760 in 2024, reflecting a significant increase[46] - The company reported a net increase in cash, cash equivalents, and restricted cash of $18,076 for the twelve months ended December 31, 2025[40] Expenses and Liabilities - Operating expenses for the year ended December 31, 2025, totaled $332.4 million, up from $308.9 million in 2024[36] - Total liabilities rose to $533.9 million in 2025, compared to $496.4 million in 2024[38] Assets and Equity - Total current assets increased to $657.6 million in 2025, up from $585.7 million in 2024[38] - Qualys reported a total stockholders' equity of $561.2 million as of December 31, 2025, compared to $477.1 million in 2024[38] Share Repurchase and Guidance - Qualys announced a $200 million increase to its share repurchase program[1] - Management expects Q1 2026 revenues to be between $172.5 million and $174.5 million, reflecting 8% to 9% growth year-over-year[20]

Core Insights - Qualys, Inc. reported a revenue growth of 10% year-over-year for both Q4 and the full year 2025, with Q4 revenues reaching $175.3 million and full year revenues totaling $669.1 million [1][11] - The company announced a $200 million increase to its share repurchase program, indicating confidence in its financial position and future growth prospects [1] Financial Performance - **Q4 2025 Financial Highlights**: - Revenues increased by 10% to $175.3 million compared to $159.2 million in Q4 2024 [3] - GAAP gross profit rose by 12% to $146.1 million, with a gross margin of 83% [4] - GAAP operating income increased by 19% to $58.8 million, representing 34% of revenues [5] - GAAP net income grew by 21% to $53.2 million, or $1.47 per diluted share [6] - Adjusted EBITDA increased by 11% to $82.6 million, maintaining a margin of 47% [7] - Operating cash flow surged by 59% to $75.7 million, accounting for 43% of revenues [8] - **Full Year 2025 Financial Highlights**: - Revenues increased by 10% to $669.1 million compared to $607.6 million in 2024 [11] - GAAP gross profit rose by 12% to $554.4 million, with a gross margin of 83% [11] - GAAP operating income increased by 19% to $222.0 million, representing 33% of revenues [12] - GAAP net income grew by 14% to $198.3 million, or $5.44 per diluted share [13] - Adjusted EBITDA increased by 11% to $313.4 million, with a margin of 47% [14] - Operating cash flow increased by 27% to $309.4 million, accounting for 46% of revenues [14] Business Developments - Qualys introduced several enhancements to its Enterprise TruRisk Management solution, including identity security and industry-specific threat prioritization [9][23] - The company successfully launched its TotalAppSec solution, integrating various security features for comprehensive application risk management [23] - Qualys achieved FedRAMP High Authorization for its GovCloud Platform, expanding its support for federal and defense agencies [23] - The company hosted its reimagined user conference series, ROCon, with attendance up over 20% from the previous year [10][23] Market Recognition - Qualys was recognized as a leader in multiple security categories by independent analyst firms, including GigaOm and IDC [17] - The company received accolades for its TotalCloud and Cybersecurity Asset Management solutions, highlighting its contributions to technology and cybersecurity [17]

Core Insights - Qualys, Inc. (QLYS) is set to report its fourth-quarter 2025 earnings on February 5, with anticipated revenues between $172 million and $174 million, reflecting an 8.7% increase from the previous year's $159.2 million [1][10] - The company expects non-GAAP earnings per share (EPS) in the range of $1.73 to $1.80, with the consensus estimate remaining at $1.78, compared to $1.60 in the same quarter last year [2][10] Revenue and Earnings Expectations - The Zacks Consensus Estimate for QLYS revenues is $173 million, indicating a positive outlook for the quarter [1][10] - The company has a strong track record of exceeding earnings estimates, with an average surprise of 16.6% over the last four quarters [2] Factors Influencing Performance - Rising demand for security and networking products due to the hybrid working trend and accelerated digital transformations is expected to positively impact QLYS' performance [3] - The recurring subscription-based business model provides stability amid macroeconomic uncertainties, supporting durable top-line growth and strong cash flow [4] Market Positioning - QLYS has successfully attracted new customers and retained existing ones, closing a significant number of six-figure deals, which is likely to boost revenues in the upcoming quarter [5] - However, the company faces challenges as enterprises delay large IT spending due to a weakening global economy, which may negatively affect overall financial performance [6] Investment in Capabilities - Qualys is investing in expanding its capabilities in the competitive cybersecurity market, focusing on research and development and enhancing sales and marketing efforts, which may impact short-term profitability [7] Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for QLYS this season, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [8]