0001107843-25-000031
SEC filingQualys holds no debt, $427M cash & securities, $433M RPO, and $254.6M remaining buyback authorization.
Qualys holds no long-term debt. As of June 30, 2025, cash and cash equivalents were $194.0M, short-term marketable securities $176.0M, and long-term marketable securities $251.2M, totaling $621.2M. Total assets were $999.5M, with stockholders' equity of $508.2M. Net cash provided by operating activities was $143.4M for the first half of 2025.
No purchase commitments or material contractual obligations beyond operating leases were disclosed. Operating lease liabilities totaled $55.3M (present value) as of June 30, 2025. Remaining performance obligations (RPO) were $433.2M, representing noncancelable orders not yet recognized as revenue. No other commitments were noted.
Qualys has an active share repurchase program. During the six months ended June 30, 2025, the company repurchased 668,000 shares for $88.8M. A new $200M authorization was announced on February 6, 2025. As of June 30, 2025, $254.6M remained available. No dividends were paid. Capital expenditures were $3.4M for the first half of 2025.
The company operates as a single reportable segment. Revenue by geography: U.S. $92.8M (56.6%) and foreign $71.3M (43.4%) for Q2 2025. Total revenue for Q2 2025 was $164.1M, up 10.3% YoY. Long-lived assets were primarily in the U.S. ($53.5M) and India ($18.9M).
Operating cash flow of $143.4M comfortably exceeded net income of $94.8M, reflecting strong cash generation. The main non-cash add-backs were stock-based compensation ($36.9M) and depreciation/amortization ($8.2M), partially offset by deferred income taxes (-$8.6M) and accretion of discount on securities (-$2.0M).
Capex was only $3.4M, representing a mere 2.4% of CFO, indicating a very asset-light business model. Free cash flow (CFO minus capex) amounted to $140.0M, covering share repurchases of $89.5M by 1.6x.
Accounts receivable provided $35.0M, reflecting strong collections. However, deferred revenues declined $21.5M, which is unusual for a subscription business and may indicate lower billings or seasonality. Accrued liabilities increased $3.7M, while accounts payable rose modestly. Overall, working capital changes were a net use of cash of $13.7M, but CFO remained robust.
The company returned $89.5M to shareholders via repurchases, up from $53.0M in the prior period, funded entirely by operating cash flow. No dividends were paid.
Qualys demonstrates high-quality cash flow with low capex needs and strong coverage of capital returns. The decline in deferred revenues warrants monitoring for potential impacts on future cash flows.