Qualys (QLYS) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $188.049M, up 11% YoY; GAAP diluted EPS was $1.62, non-GAAP diluted EPS was $2.12, and Adjusted EBITDA was $89.9M.

• Strategy centers on an AI-native Risk Operations Center for risk prioritization and remediation across hybrid environments.

• Customers spending at least $500K annually grew 15% YoY to 243; the subscription base exceeds 10,000, and 74% of Forbes Global 50 are customers.

Financial highlights

• Q3 GAAP net income rose 14% to $57.174M; operating income was $66.290M, versus $60.0M a year earlier.

• Q3 operating cash flow increased 13% YoY to $101.8M; non-GAAP free cash flow was $100M, with a 53.2% margin.

• 9M revenue rose 11% to $545.9M; Adjusted EBITDA was $257.0M versus $230.8M, with a 47% margin in both periods.

• 9M operating cash flow was $256.684M versus $233.741M; non-GAAP free cash flow was $249.502M versus $229.475M.

Outlook and guidance

• FY26 revenue guidance increased to $736.9M–$738.9M from $732M–$738M, representing 10% growth; Q4 guidance is $191M–$193M, or 9%–10% growth.

• FY26 non-GAAP diluted EPS guidance rose to $8.07–$8.14 from $7.74–$7.88; Q4 guidance is $2.05–$2.12.

• FY26 GAAP diluted EPS guidance increased to $6.08–$6.15 from $5.76–$5.90; Q4 guidance is $1.57–$1.64.

• Calculated current billings grew 14% in Q3; management expects 8% growth in Q4 and 11% for FY, citing lumpy federal deal timing.

• Operating expenses are expected to rise at a low-double-digit rate, while FY free cash flow margin is projected in the low 40s.