Qualys Inc. 2025 Annual Report: A Year of Growth Amidst Economic Challenges

Founded in December 1999, Qualys launched its first cloud solution, Vulnerability Management (VM), in 2000 and has since expanded its suite of offerings under the Qualys Cloud Apps umbrella. As a leading cybersecurity provider, Qualys enables organizations to identify security risks and maintain compliance with various regulations. The company's Enterprise TruRisk Platform integrates IT, security, and operational technology, helping customers manage their assets effectively in a cloud-centric world.

Qualys reported a notable increase in revenue for 2025, reaching $669.1 million, up from $607.5 million in 2024. This growth of $61.6 million was largely driven by heightened demand for subscription services, with 76% of the increase stemming from existing customers and 24% from new acquisitions.

The cost of revenues increased by $3.3 million, mainly due to higher personnel costs linked to new hires and incentive compensation. However, this was offset by a decrease in depreciation and amortization expenses.

Research and Development (R&D) expenses rose by $5.4 million, reflecting Qualys's commitment to innovation. Sales and marketing expenses saw a significant jump of $15.2 million, emphasizing the company's focus on expanding its market presence and supporting new solutions. General and administrative expenses also increased by $2.9 million.

Qualys achieved a net income of $198.3 million in 2025, compared to $173.6 million in 2024. This reflects a strong operational performance, supported by effective cost management despite rising expenses.

The net dollar expansion rate remained stable at 103% for both years, indicating strong customer retention and growth. Adjusted EBITDA metrics also reflect solid operational performance, demonstrating the underlying strength of the business.

As of December 31, 2025, Qualys reported total assets of $1.09 billion, up from $973.5 million in 2024. Current assets accounted for $657.6 million, with cash and cash equivalents amounting to $445.9 million.

Qualys generated $296.0 million in cash from net income, reflecting a healthy increase from the previous year. The company also reported a net change in cash of $18.07 million for 2025, indicating robust operational cash flows despite significant investments in growth.

In 2025, Qualys made significant strides in expanding its platform capabilities, launching innovative solutions like the TotalAppSec for application risk management and the Managed Risk Operation Center (mROC) partner alliance. The company also emphasized its commitment to the public sector with the opening of a new office in Washington, D.C.

Qualys plans to continue its share repurchase program, with approximately $160.5 million remaining as of December 31, 2025. An additional $200.0 million was authorized for repurchase in February 2026, bringing the total to $1.6 billion.

Despite the macroeconomic challenges, including inflationary pressures and geopolitical conflicts, Qualys remains optimistic about its growth trajectory. The company anticipates that its existing cash and marketable securities will be sufficient to support operations while exploring investments in complementary technologies.

The 2025 annual report showcases Qualys's resilience and ability to adapt in a challenging economic landscape. With a solid financial foundation, innovative solutions, and a commitment to customer success, Qualys is well-positioned for continued growth and leadership in the cybersecurity domain. As the company navigates the complexities of the current macroeconomic environment, its strategic initiatives and focus on innovation will be crucial in driving future success.