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Qualys, Inc. QLYS shares gained 4% during Monday’s extended trading session after the company reported better-than-expected results for first-quarter 2025. It reported first-quarter non-GAAP earnings of $1.67 per share, which surpassed the Zacks Consensus Estimate of $1.46 and came above management’s guidance of $1.40-$1.50.
The bottom line also witnessed a significant improvement from the year-ago quarter’s earnings of $1.45. The robust year-over-year growth was primarily driven by higher revenues, improved efficiency, increased financial income and lower diluted shares outstanding, partially offset by increased taxes.
Qualys’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Qualys’ first-quarter revenues increased 10% year over year to $159.9 million and surpassed the Zacks Consensus Estimate of $157.1 million. The year-over-year increase in the top line was achieved by leveraging the partner ecosystem.
Qualys, Inc. Price, Consensus and EPS Surprise
Qualys, Inc. price-consensus-eps-surprise-chart | Qualys, Inc. Quote
Qualys’ Q1 in Detail
During the first quarter, sales from channel partners increased 19%, outpacing the 2% sales growth registered in direct selling. Revenue contribution mix from channel partners was 49% in the first quarter, while direct selling accounted for the remaining 51%.
Geography-wise, sales in the United States grew 6% year over year and contributed approximately 57% to the first-quarter total revenues. Accounting for the remaining 43% of first-quarter total revenues, international sales increased 16%.
Qualys’ net dollar expansion rate on a constant currency basis for the first quarter was 103%, unchanged from the previous quarter.
QLYS’ non-GAAP gross profit increased 10% year over year to $133.7 million, while the non-GAAP gross margin expanded 100 basis points to 84% in the first quarter. Non-GAAP operating income grew 10% to $71.2 million, while the non-GAAP operating margin improved 100 basis points to 45%.
Adjusted EBITDA for the first quarter rose 8% to $74.8 million, while adjusted EBITDA margin remained flat at 47%.
Qualys’ Balance Sheet & Cash Flow
Qualys ended the quarter with cash and cash equivalents and marketable securities of approximately $640 million, up from $575 million in the year-ago quarter. The company generated an operating cash flow of $109.6 million and a free cash flow of $107.6 million.
During the quarter, Qualys repurchased stocks worth $39.7 million. As of March 31, 2025, it has $303.8 million remaining under the ongoing share repurchase program.