Qualys Q3 Earnings Surpass Expectations, Revenues Rise Y/Y

Qualys QLYS came out with third-quarter 2025 earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.56 by 19.2%. The company reported earnings of $1.56 per share in the year-ago quarter.Qualys’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.1%.Qualys posted revenues of $169.88 million for the third quarter 2025, surpassing the Zacks Consensus Estimate by 2.49%. This compares to year-ago revenues of $153.87 million. The top line grew 10% year over year.Qualys’ Q3 in DetailDuring the third quarter, sales from channel partners surged 17%, outpacing the 5% sales growth recorded in direct selling. Channel partners contributed 50% to total revenues in the quarter, up from 47% a year ago, while direct selling accounted for the remaining 50%.Qualys, Inc. Price, Consensus and EPS Surprise Qualys, Inc. price-consensus-eps-surprise-chart | Qualys, Inc. QuoteGeographically, U.S. sales grew 7% year over year, contributing approximately 56% to total revenues, while international sales rose 15% and accounted for 44%.Qualys’ net dollar expansion rate remained steady at 104%, reflecting improved gross retention but continued upsell challenges.QLYS’ non-GAAP gross profit increased 13% year over year to $144.9 million, with the non-GAAP gross margin expanding to 85% compared with 83% in the year-ago quarter. Non-GAAP operating income rose 21% to $80 million, representing a margin of 47%, up from 43% a year earlier. The margin improvement highlights Qualys’ strong operating leverage despite higher investments in sales and marketing, which grew 9%.Adjusted EBITDA grew 19% year over year to $82.6 million, with the adjusted EBITDA margin improving to 49% from 45% in the prior-year quarter.Qualys’ Balance Sheet & Cash FlowQualys ended the quarter with $663.6 million in cash, cash equivalents, and marketable securities compared with $621 million in the previous quarter. The company generated operating cash flow of $90.4 million, up 48% year over year, and free cash flow of $89.5 million, representing a 53% margin versus 37% in the prior year.Qualys repurchased 366,000 shares worth $49.4 million during the third quarter and has repurchased a cumulative 10.4 million shares valued at $1.2 billion since the program’s inception. As of Sept. 30, 2025, $205.2 million remained under the current share repurchase authorization.Qualys Updates GuidanceBuoyed by stronger-than-expected third-quarter performance, Qualys raised guidance for full-year 2025. It now expects revenues between $665.8 million and $667.8 million, up from the earlier range of $656-$662 million. The updated guidance range implies a year-over-year improvement of 10%. The Zacks Consensus Estimate for 2025 revenues is currently pegged at $658.6 million.Qualys now forecasts non-GAAP earnings for 2025 to be in the range of $6.93 to $7.00 per share, up from the previous range of $6.20-$6.50. The consensus mark for the bottom line is pinned at $6.40.Qualys also initiated guidance for the fourth quarter. The company expects revenues between $172.0 million and $174.0 million for the fourth quarter, indicating year-over-year growth of 8-9%. It projects non-GAAP earnings in the range of $1.73 to $1.80. The Zacks Consensus Estimate for revenues and EPS is currently pegged at $165.8 million and $1.56, respectively.Zacks Rank & Stocks to ConsiderCurrently, QLYS carries a Zacks Rank #3 (Hold).Reddit Inc. RDDT, Credo Technology Group CRDO and Amphenol APH are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj, Credo Technology Group and Amphenol sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Reddit Inc.’s full-year 2025 earnings is pegged at $2.01 per share, revised upward by 6.9% over the past seven days and suggests a year-over-year increase of 160.4%. Reddit shares have soared 14.9% year to date.The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, calling for an increase of 191.4% year over year. Credo Technology Group shares have rallied 144.3% year to date.The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $3.22 per share from $3.03 per share over the past 30 days, implying 70.4% year-over-year growth. Amphenol shares have risen 96.8% year to date.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH): Free Stock Analysis Report Qualys, Inc. (QLYS): Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO): Free Stock Analysis Report Reddit Inc. (RDDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks