Qualys (QLYS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 10% year-over-year to $175.6 million, driven by innovation in AI-native risk management, autonomous remediation, and increased demand for subscription services, with 96% of growth from existing customers and 65% from international markets.

• Net income rose to $50.6 million, a 7% increase from Q1 2025, with a net margin of 29%.

• Adjusted EBITDA reached $83.3 million (47% margin), consistent with the prior year.

• Launched Agent Val for closed-loop exploit validation and autonomous remediation, enhancing platform capabilities.

• Recognized as a leader in cloud security by Forrester and GigaOm, with TotalCloud winning the 2026 SC Award for Best Cloud Security Management Solution.

Financial highlights

• Q1 2026 revenue was $175.6 million, up 10% year-over-year; gross profit was $145.6 million with an 83% gross margin.

• Adjusted EBITDA was $83.3 million (47% margin); net income for Q1 2026 YTD was $50.6 million (29% margin).

• Free cash flow for Q1 2026 YTD was $93.6 million (53% margin).

• Channel partner revenue increased 17%, now representing 52% of total revenue; direct revenue grew 3%.

• International revenue grew 15%, now 45% of total; U.S. revenue grew 6%, now 55% of total.

Outlook and guidance

• FY2026 revenue guidance raised to $721–$727 million (8–9% growth); Q2 revenue expected at $177.5–$179.5 million (8–9% growth).

• FY2026 EPS guidance increased to $7.44–$7.65 (non-GAAP); Q2 EPS expected at $1.73–$1.80.

• EBITDA margin expected in the mid-40s for FY2026; free cash flow margin in the low 40s.

• Capital expenditures for FY2026 projected at $8–$12 million.

• Guidance assumes stable net dollar expansion rate and moderate new business growth amid macro uncertainty.