Qualys Reports 10% Revenue Growth to $164.1 Million in Q2 2025

Qualys, Inc. reported a notable increase in its financial performance for the second quarter of 2025, with revenues reaching $164.1 million, a 10% increase from $148.7 million in the same period last year. For the first half of 2025, the company generated $324.0 million in revenue, up from $294.5 million in the first half of 2024. The net income for the second quarter was $47.3 million, or $1.30 per share, compared to $43.8 million, or $1.19 per share, in the prior year. The company’s gross profit also saw an increase, totaling $135.2 million for the quarter, up from $122.3 million a year earlier.

The company’s operating expenses rose to $83.8 million in the second quarter, compared to $74.2 million in the same quarter of 2024. This increase was primarily driven by higher research and development costs, which rose to $30.2 million from $27.1 million, and sales and marketing expenses, which increased to $35.8 million from $32.1 million. The increase in expenses reflects Qualys' ongoing investment in its growth and innovation strategies, including the expansion of its workforce to support increased demand for its cloud-based IT security and compliance solutions.

Qualys reported a total customer count of approximately 18,000 as of June 30, 2025, with a net dollar expansion rate of 104%, indicating strong retention and growth among existing customers. The company continues to expand its geographic reach, with 49% of its revenue coming from international markets. The company’s strategic focus on enhancing its cloud platform and introducing new solutions has contributed to its revenue growth, with 95% of the revenue increase in the second quarter attributed to existing customers.

In terms of cash flow, Qualys generated $143.4 million from operating activities in the first half of 2025, compared to $135.3 million in the same period last year. The company’s cash and cash equivalents, along with marketable securities, totaled $621.2 million as of June 30, 2025. Qualys has also been active in its share repurchase program, repurchasing approximately 668,000 shares for $89.5 million during the first half of 2025, with $254.6 million remaining available for future repurchases.

Looking ahead, Qualys anticipates continued revenue growth driven by strong demand for its solutions and the expansion of its customer base. However, the company acknowledges potential risks associated with macroeconomic conditions, including inflation and reduced IT spending, which could impact its business operations. The company remains committed to investing in its technology and workforce to adapt to changing market conditions and maintain its competitive position in the IT security landscape.