QUALYS, INC. recently released its 10-Q report, providing an insight into the company's financial performance and operations. Qualys, Inc. is a cloud-based platform delivering IT, security, and compliance solutions to enterprises, government entities, and small and medium-sized businesses in various industries, including education, financial services, government, healthcare, insurance, manufacturing, media, retail, technology, and utilities. The company's integrated suite of IT, security, and compliance solutions are delivered on its Qualys' Enterprise TruRisk Platform, enabling customers to identify and manage IT and operational technology assets, collect and analyze IT security data, discover and prioritize vulnerabilities, quantify cyber risk exposure, recommend and implement remediation actions, and verify the implementation of such actions.
In the 10-Q report, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section provides an overview of the company's financial performance, including its revenues, costs, expenditures, growth rates, operating expenses, and ability to generate positive cash flow to fund operations and sustain profitability. The report also includes forward-looking statements about anticipated technology trends, economic and financial conditions, competition in the market, innovation, international expansion, and other factors that could impact the company's future financial or operating performance.
The report highlights that for the nine months ended September 30, 2025, approximately 57% of Qualys, Inc.'s revenues were derived from customers in the United States based on billing addresses. The company sells its solutions to enterprises and government entities primarily through its field sales force and to small and medium-sized businesses through its inside sales force. Additionally, Qualys, Inc. generates a significant portion of sales through its channel partners, including managed security service providers, leading cloud providers, value-added resellers, and consulting firms in the United States and internationally.
The report also addresses the impacts of the current macroeconomic environment, highlighting the uncertainty surrounding macroeconomic factors in the U.S. and globally, such as inflationary pressure, high interest rates, volatility of global markets, reduced spending, extended sales cycles, tariff and non-tariff trade barriers, economic and regulatory uncertainty, and geopolitical conflicts, which could have a material adverse effect on the company's long-term business.
Furthermore, the report discusses the key components of the company's results of operations, including revenues, cost of revenues, operating expenses (research and development, sales and marketing, general and administrative), other income (expense), net, and income tax provision. It provides insights into the company's approach to revenue recognition, cost of revenues, and the expected increase in expenses related to research and development, sales and marketing, and general and administrative functions. Following these announcements, the company's shares moved -2.87%, and are now trading at a price of $121.525. For more information, read the company's full 10-Q submission here.
