Qualys Q2 2025 presentation highlights cloud security growth and strong profitability

Qualys Inc . (NASDAQ:QLYS) presented its investor presentation on August 5, 2025, showcasing the company’s cloud security platform, market expansion strategy, and industry-leading financial metrics. The cybersecurity firm, which recently reported strong Q1 2025 results with revenue exceeding expectations, continues to position itself as a leader in the rapidly evolving security and compliance landscape.

Strategic Positioning & Product Portfolio

Qualys has evolved its platform from basic vulnerability management to a comprehensive Enterprise TruRisk Platform that leverages risk analytics to deliver business outcomes. The company’s platform integrates various security functions including asset management, vulnerability detection, threat response, and compliance monitoring across diverse IT environments.

As shown in the following slide, Qualys’s platform provides a unified approach to security management:

The company’s CyberSecurity Asset Management capabilities enable organizations to discover all assets, gain complete visibility, and identify security gaps such as end-of-life software and unmanaged assets. This comprehensive approach to asset inventory serves as the foundation for effective security management.

The dashboard below illustrates how organizations can visualize their asset inventory:

Qualys’s Vulnerability Management, Detection and Response (VMDR) capabilities allow customers to measure and communicate cyber risk across different teams and locations, while reducing risk through seamless integration with IT service management tools.

The following VMDR dashboard demonstrates how the platform quantifies and visualizes risk:

Financial Performance Highlights

Qualys has demonstrated consistent financial performance with balanced revenue growth and industry-leading profitability. The company reported revenues of $608 million for 2024, representing a 10% year-over-year growth, with an adjusted EBITDA of $283 million (47% margin).

The following chart illustrates Qualys’s revenue growth and profitability trends:

This strong financial performance is supported by increasing platform adoption among customers. The number of customers spending $500,000 or more annually has grown from 139 in Q2 2022 to 212 in Q2 2025, representing an 8% growth in aggregate revenues from these high-value customers.

The trend in customer spending is visualized in this chart:

Qualys has also demonstrated strong cash flow generation and commitment to returning capital to shareholders. The company generated $232 million in free cash flow in 2024 and repurchased $140 million in shares during the same period.

The following chart shows Qualys’s free cash flow and share repurchase trends:

Competitive Advantages & Market Opportunity (SO:FTCE11B)

Qualys’s financial metrics significantly outperform industry peers. With a 47% adjusted EBITDA margin in 2024, the company stands well above the peer median of 25%, demonstrating exceptional operational efficiency.

The comparison with industry peers is illustrated in this chart:

When measuring by the "Rule of 40" (which combines growth rate and profit margin), Qualys achieves a score of 57%, again substantially outperforming its peer group.

The market opportunity for Qualys continues to expand. The company estimates its total addressable market (TAM) will grow from $55 billion in 2025 to $79 billion by 2028, representing a 1.42x increase. This expansion spans multiple segments including vulnerability management, compliance, IT asset management, cloud security, endpoint security, and security analytics.

The expanding market opportunity is visualized in the following chart:

Forward-Looking Statements

Qualys is well-positioned to capitalize on the growing demand for integrated security solutions. In its recent earnings call, CEO Sumit Thakkar highlighted the shift towards real-time data and AI in cybersecurity risk management, stating, "We are entering a new era for cybersecurity risk management powered by real-time data, automation, and AI."

The company’s strategic focus on expanding channel partnerships is already showing results, with partner-driven revenue increasing from 42% in 2022 to 49% in Q2 2025. Similarly, international revenue is growing faster than domestic, increasing from 40% of total revenue in 2022 to 43% in Q2 2025.

Despite some macroeconomic uncertainties affecting sales cycles, as noted in the recent earnings call, Qualys maintains a positive outlook. For full-year 2025, the company projects revenue between $648 million and $657 million, with earnings per share guidance of $6.00 to $6.30.

With its strong financial position, expanding market opportunity, and industry-leading profitability metrics, Qualys appears well-equipped to navigate market challenges while continuing to deliver value to both customers and shareholders.

Full presentation:

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