Qualys (QLYS) Q4 2025 earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth for both Q4 and full year 2025, driven by innovation in agentic AI-powered risk management, platform expansion, and digital transformation.

• Expanded customer base with 215 customers spending $500,000+ annually, up 4% year-over-year, including 74% of Forbes Global 50 and over 10,000 subscription customers.

• Continued to differentiate with integrated risk quantification, exploit validation, automated remediation, and new AI-driven security features.

• Partner ecosystem, new offerings like Q-Flex, mROC, and expanded federal sector presence contributed to growth and broadened market reach.

• Announced a $200 million increase to the share repurchase program, supporting capital allocation strategy.

Financial highlights

• Full-year 2025 revenue grew 10% to $669.1 million; Q4 revenue up 10% to $175.3 million.

• Adjusted EBITDA margin for 2025 was 47%; Q4 adjusted EBITDA was $82.6 million (47% margin).

• Net income and EPS for 2025 increased 13% and 15% to $257.8 million and $7.07 per diluted share, respectively.

• Free cash flow for 2025 reached $304.4 million (45% of revenue); Q4 free cash flow was $74.9 million (43% margin).

• Channel revenue grew 17% year-over-year, now 51% of total revenue; international revenue grew 15%, outpacing U.S. growth of 6%.

Outlook and guidance

• 2026 revenue expected between $717 million and $725 million, representing 7%-8% growth.

• Q1 2026 revenue guidance is $172.5 million-$174.5 million, up 8%-9% year-over-year.

• 2026 EBITDA margin projected in the mid-40s; free cash flow margin in the low 40s.

• Full-year 2026 EPS expected in the range of $7.17-$7.45; Q1 EPS guidance is $1.76-$1.83.

• Capital expenditures for 2026 planned at $8 million-$12 million.