Qualys Inc logo

Qualys Inc(QLYS)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
2-STAR RATING
PASS
LAST CLOSE
$193
10/02/2026
(24-hour delay)

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Upturn Advisory & Investor View for QLYS

10/02/2026: QLYS (2-star) is currently NOT-A-BUY. Pass it for now.

Qualys Inc is a well-established cloud-based cybersecurity firm specializing in vulnerability management and IT compliance. The company is noted for its strong profitability and high-margin, subscription-based business model, which provides steady cash flows. Its primary growth opportunity lies in leveraging its existing platform to offer more automated security solutions for hybrid-cloud environments. However, the company faces significant competition from large platform-bundlers like Microsoft and agile, integrated-security incumbents. Qualys is well-suited for long-term investors seeking exposure to the cybersecurity space with an emphasis on established profitability over speculative hyper-growth; investors should monitor developments in competitive pricing pressure and platform-wide innovation.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitQualys offers steady growth but lacks the hyper-growth profile associated with early-stage cybersecurity disruptors.
Momentum investorMixed fitMomentum is conditional on positive market technicals and acceleration in platform adoption.
Value investorStrong fitThe company's historical profitability and disciplined capital allocation make it attractive for value-oriented technology investors.
Dividend investorWeak fitQualys does not pay a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorMixed fitWhile profitable, the company remains subject to the inherent volatility and competitive intensity of the cybersecurity sector.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highTechnology stocks in the security space frequently experience sharp price fluctuations based on sector sentiment.
Valuation riskMediumAs a mature, profitable firm, valuation is often tied to sustained earnings growth expectations.
Competition risk (platform consolidation)HighLarge platforms like Microsoft and CrowdStrike aggressively bundle security tools, threatening standalone vendors.
Business qualityStrongQualys possesses high-margin, recurring revenue, indicative of a quality software franchise.
Dividend incomeLow / noneThe company retains all earnings for growth and buybacks rather than returning cash to shareholders.
Execution riskMediumSuccessfully cross-selling new modules to existing customers is critical for future revenue expansion.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit -0.27%
Avg. Invested days 28
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 1.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/02/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
QLYS receives a 4-star rating, supported by strong unit economics, solid company fundamentals, and solid analyst coverage. The rating is constrained by limited analyst upside.

Company Fundamentals

★★★★★
QLYS has solid overall fundamentals (4 stars), with solid financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, solid earnings growth (+14.2%) and strong cash generation (FCF margin 45.5%) are partially offset by very low insider ownership of 0.45%.

Financial Health Rating

★★★★★
QLYS's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 17.4%). Overall financial-health metrics support a 4-star score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is QLYS's strongest growth driver at +31.3% FY2025 versus FY2024 (solid, 4 stars). Revenue growth (+10.1%, solid) and earnings growth (+14.2%, solid) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 110.2% and approximately 99.2% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.45%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 16.66%
Vanguard Portfolio Management, LLC 7.79%
Vanguard Capital Management, LLC 4.60%
State Street Corp 4.21%
Legal & General Group PLC 4.15%

Unit Economics (Per $1K Revenue)

★★★★★
QLYS generates approximately $828 of gross profit, $332 of operating income, and $455 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

★★★★★
Effective Tax Rate: 19.65%

Quantitative Style Profile

★★★★★
QLYS has a high-quality, liquid, relatively low-volatility profile. Valuation that is moderately attractive rather than deeply discounted is the primary drawback.

Style Classification

Quality Focused

Quality TiltLow VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 6.48B USD
Price to earnings Ratio 32.54
1Y Target Price 179.36
Price to earnings Ratio 32.54
1Y Target Price 179.36
Volume (30-day avg) 690.6K shares
Beta 0.62
52 Weeks Range 74.51 - 201.54
Updated Date 10/02/2026
52 Weeks Range 74.51 - 201.54
Updated Date 10/02/2026
Dividends yield (FY) -
Basic EPS (TTM) 5.76

How Company Makes Money

Business areaWhat it includesRetail investor read
Subscription ServicesLicense fees for access to the cloud-based security and compliance platform.The company makes money through recurring software subscriptions rather than one-time sales.
GeographyGlobal revenue operations with significant exposure to North America and Europe.The business is globally diversified, which provides some insulation from regional economic downturns.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 32.54
Forward PE 21.88
Enterprise Value 6.02B
Price to Sales(TTM) 9.22
Enterprise Value 6.02B
Price to Sales(TTM) 9.22
Enterprise Value to Revenue 8.56
Enterprise Value to EBITDA 23.7
Shares Outstanding 34.60M
Shares Floating 34.32M
Shares Outstanding 34.60M
Shares Floating 34.32M
Percent Insiders 0.45
Percent Institutions 110.21

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Qualys Inc

Exchange NASDAQ
Headquarters Foster City, CA, United States
IPO Launch date 2012-09-28
President, CEO & Director Mr. Sumedh S. Thakar
Sector Technology
Industry Software - Infrastructure
Full time employees 2718
Full time employees 2718

Qualys, Inc. provides cloud-based platform delivering information technology (IT), security, and compliance solutions in the United States and internationally. The company provides Qualys Cloud Apps, which include cybersecurity asset management; enterprise TruRisk management; vulnerability management, detection, and response; total application security; patch management; custom assessment and remediation; multi-vector endpoint detection and response; policy audit; and file integrity monitoring. It offers TotalCloud, a cloud-native application protection platform, which include cloud workload protection, cloud detection and response, cloud security posture management, infrastructure as code, SaaS security posture management, cloud infrastructure and entitlement management, and Kubernetes and container security. In addition, the company markets and sells IT, security, and compliance solutions; offers Qualys' Enterprise TruRisk platform that enables customers to identify and manage IT and operational technology assets; collect and analyze IT security data; discover and prioritize vulnerabilities; quantify cyber risk exposure; recommend and implement remediation actions; and verify the implementation of such actions. Further, it offers asset tagging and management; reporting and dashboards; questionnaires and collaboration; remediation and workflow; big data correlation and analytics engine; and alerts and notifications. The company offers its solutions to enterprises, government entities, and small and medium-sized businesses in various industries, including education, financial services, government, healthcare, insurance, manufacturing, media, retail, technology, and utilities through its sales teams, as well as through security consulting organizations, managed service providers, resellers, cloud providers, and consulting firms. Qualys, Inc. was incorporated in 1999 and is headquartered in Foster City, California.