Shares of Qualys (QLYS) surged 8.28% in after-hours trading on Tuesday, following the release of the company's impressive third-quarter 2025 financial results and an upward revision of its full-year guidance. The cybersecurity firm reported better-than-expected earnings and revenue, demonstrating robust growth and operational efficiency.
Qualys posted Q3 revenue of $169.9 million, a 10% year-over-year increase and surpassing the analyst consensus of $166.3 million. The company's adjusted earnings per share (EPS) came in at $1.86, significantly beating the expected $1.56. This strong performance was driven by strategic wins with federal and state agencies, momentum in partner-led initiatives, and the initial adoption of a flexible platform pricing model.
In a move that further boosted investor confidence, Qualys raised its 2025 revenue guidance to a range of $665.8 million to $667.8 million. The company also highlighted key business developments, including early deployments of its Risk Operations Center and receiving FedRAMP High Authorization for its GovCloud Platform, which expands its support for government agencies. These factors, combined with the company's solid financial metrics such as an 85% adjusted gross margin and $82.6 million in adjusted EBITDA, appear to have fueled the significant after-hours stock price increase.