Qualys Reports 10% Revenue Growth to $175.6 Million in Q1 2026

Qualys, Inc. reported a revenue increase of 10% for the first quarter of 2026, reaching $175.6 million compared to $159.9 million in the same period of 2025. The growth was primarily driven by increased demand for its subscription services, with 96% of the revenue increase attributed to existing customers and 4% from new customers. The company’s net income for the quarter was $50.6 million, or $1.42 per diluted share, up from $47.5 million, or $1.29 per diluted share, in the prior year. This reflects a net income margin of 29% for the quarter, slightly down from 30% in the previous year.

Operating expenses rose to $84.8 million from $79.2 million year-over-year, with notable increases in sales and marketing expenses, which grew by 19% to $38.8 million. This increase was largely due to higher personnel costs and increased sales commissions. Research and development expenses remained relatively stable at $29 million, while general and administrative expenses decreased slightly to $17 million. The company’s gross profit margin improved to 83% from 82%, indicating effective cost management despite rising operational costs.

Qualys continues to expand its customer base and geographic reach, with 55% of revenues derived from U.S. customers and 45% from international markets. The company reported a net dollar expansion rate of 104%, reflecting its ability to retain and grow existing customer accounts. As of March 31, 2026, Qualys had approximately 35,379 shares outstanding, down from 35,730 at the end of 2025, following a share repurchase program that saw the company buy back 505,000 shares for approximately $53.5 million during the quarter.

The company’s balance sheet remains strong, with total assets of $1.09 billion and cash and cash equivalents of $279.5 million as of March 31, 2026. Qualys has also maintained a healthy cash flow, generating $95.3 million from operating activities during the quarter, although this was a decrease from $109.6 million in the same period last year. The company’s strategic focus on enhancing its cloud-based IT security and compliance solutions continues to position it favorably in a competitive market, despite potential macroeconomic challenges such as inflation and reduced IT spending.

Looking ahead, Qualys anticipates continued revenue growth driven by both existing and new customers, as well as ongoing investments in product development and marketing. The company remains committed to adapting its solutions to meet evolving market needs and enhancing its competitive position in the IT security landscape.