Qualys (QLYS) Q3 2025 earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth in Q3 2025, reaching $169.9 million, driven by innovation in AI-powered risk management, digital transformation, and strong customer adoption across global enterprise, federal, and airline sectors.

• Expanded platform capabilities with ETM, agentic AI, and the Qualys Enterprise TruRisk Platform, focusing on proactive risk reduction, business quantification, and automation.

• Secured FedRAMP High Authorization for GovCloud Platform, enhancing federal market reach.

• Recognized by third-party analysts for leadership in patch management, threat intelligence, and cloud security.

• Serving a blue-chip global customer base, including 72% of Forbes Global 50 and over 10,000 subscription customers.

Financial highlights

• Q3 2025 revenue grew 10% year-over-year to $169.9 million; YTD Q3 2025 revenue reached $494 million.

• Adjusted EBITDA was $82.6 million (49% margin) for Q3; YTD adjusted EBITDA was $230.8 million (47% margin).

• Net income for Q3 2025 was $50.3 million; YTD net income was $145.2 million.

• Free cash flow for Q3 was $89.5 million (53% margin); YTD free cash flow was $229.5 million (46% margin).

• Channel partner revenue rose 17%, now comprising 50% of total revenue; direct revenue grew 5%.

Outlook and guidance

• Full-year 2025 revenue expected at $665.8–$667.8 million, up 10% year-over-year.

• Q4 2025 revenue guidance: $172–$174 million (8–9% growth).

• Full-year 2025 EPS guidance raised to $6.93–$7.00 (non-GAAP); GAAP EPS projected at $5.23–$5.30.

• Free cash flow margin projected in the low 40s for 2025; planned capital expenditures: $5.5–$7 million.

• Guidance assumes continued budget scrutiny and a challenging environment for new business growth in Q4.