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Upturn AI Summary - About
Qualys Inc(QLYS)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
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 style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Qualys offers steady growth but lacks the hyper-growth profile associated with early-stage cybersecurity disruptors. |
| Momentum investor | Mixed fit | Momentum is conditional on positive market technicals and acceleration in platform adoption. |
| Value investor | Strong fit | The company's historical profitability and disciplined capital allocation make it attractive for value-oriented technology investors. |
| Dividend investor | Weak fit | Qualys does not pay a dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Mixed fit | While profitable, the company remains subject to the inherent volatility and competitive intensity of the cybersecurity sector. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | Technology stocks in the security space frequently experience sharp price fluctuations based on sector sentiment. |
| Valuation risk | Medium | As a mature, profitable firm, valuation is often tied to sustained earnings growth expectations. |
| Competition risk (platform consolidation) | High | Large platforms like Microsoft and CrowdStrike aggressively bundle security tools, threatening standalone vendors. |
| Business quality | Strong | Qualys possesses high-margin, recurring revenue, indicative of a quality software franchise. |
| Dividend income | Low / none | The company retains all earnings for growth and buybacks rather than returning cash to shareholders. |
| Execution risk | Medium | Successfully cross-selling new modules to existing customers is critical for future revenue expansion. |
Price Behavior

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

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 Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
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 area | What it includes | Retail investor read |
|---|---|---|
| Subscription Services | License fees for access to the cloud-based security and compliance platform. | The company makes money through recurring software subscriptions rather than one-time sales. |
| Geography | Global 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
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 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
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)
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)
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)
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)
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)
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)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
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)
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)
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)
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)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
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)
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)
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 | Website https://www.qualys.com |
Full time employees 2718 | Website https://www.qualys.com | ||
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.

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