Exploring Qualys, Inc. (QLYS) Investor Profile: Who’s Buying and Why?

You're looking at Qualys, Inc. (QLYS) and wondering if the big money sees a long-term winner or just a short-term trade, and the answer is complex: institutional ownership is nearly total, but the buying is strategic.

Honestly, when 99.31% of a company's stock is held by institutions and hedge funds, you know the smart money is already in the room, so you need to understand their thesis, not just the headlines. For the full year 2025, management is guiding for revenue between $665.8 million and $667.8 million, which shows steady growth, but the real story is the profitability, with Q3 Adjusted EBITDA margin hitting an impressive 49%, which defintely attracts the big players.

Just look at a giant like Vanguard Group Inc., which boosted its Q3 holdings to over 4.4 million shares, valued at about $582.5 million, signaling a strong belief in the platform's ability to consolidate the cyber risk management (CRM) market. But still, you have to ask: with insiders selling over $4 million in stock recently, are these institutional buys a sign of confidence in the future, or just a bet on the company's strong share repurchase program that bought back $49.4 million in Q3?

Who Invests in Qualys, Inc. (QLYS) and Why?

You want to know who is driving the action in Qualys, Inc. (QLYS) stock and what their playbook looks like. The direct takeaway is this: Qualys is overwhelmingly an institutional favorite, with nearly all of its shares locked up by major funds. This indicates a high level of professional confidence in the company's profitable, cloud-native cybersecurity platform.

The Dominance of Institutional Investors

The investor profile for Qualys is unique because it's almost entirely professional money. Retail investors-the individual traders-hold a tiny fraction of the float. As of the most recent data, institutional investors and hedge funds collectively own an astounding 99.31% of the company's stock. That's a huge vote of confidence, but it also means the stock's price movements are heavily influenced by the large-scale buying and selling decisions of a few hundred major firms.

The sheer size of these holdings means Qualys is a core position for many of the world's largest money managers. For example, the top institutional holders include giants like BlackRock, Inc. and Vanguard Group Inc., which hold millions of shares. This isn't speculative trading; this is long-term, foundational capital betting on the durability of the cybersecurity sector.

Here's a quick look at the breakdown of the major players, with data current as of the third quarter of 2025:

What this table hides is the passive versus active split. Vanguard and BlackRock are largely passive index funds, meaning they buy and hold based on the index rules. The smaller, more active managers like Boston Trust Walden Corp. are making a conscious, strategic decision to increase their stake.

Investment Motivations: Profitability and Platform Growth

The primary attraction for these sophisticated investors is Qualys's rare combination of strong growth and exceptional profitability in a critical industry. Honestly, in the software world, that combination is gold. You don't see many companies growing revenue while maintaining such high margins.

The company's financial performance in the 2025 fiscal year provides the concrete evidence for this motivation:

• High Profitability: The third quarter of 2025 saw a net margin of 29.04% and a return on equity of 37.19%.
• Revenue Growth: Full-year 2025 revenue guidance was raised to a range of $665.8 million to $667.8 million, representing a 10% growth rate over 2024.
• Platform Strategy: Management is focused on 'platform consolidation, risk quantification, and cloud-native scalability,' which resonates with investors looking for a single, comprehensive solution in a fragmented cybersecurity market.

The shift to the Enterprise TruRisk Platform is a major selling point, positioning Qualys as a foundational risk management tool, not just another vulnerability scanner. This strategic move helps secure long-term contracts and provides a clear path to durable growth. You can dive deeper into the company's long-term vision here: Mission Statement, Vision, & Core Values of Qualys, Inc. (QLYS).

Investment Strategies: Long-Term Core vs. Active Value

Given the high institutional ownership, two main strategies are at play. The first is a simple, long-term holding strategy, often passive. Large asset managers like Vanguard simply must own the stock because Qualys is a component of major indices, and they are not selling. They are in for the long haul, tracking the market's performance.

The second strategy is a blend of growth and value investing, favored by the more active funds. These investors are drawn to the company's strong free cash flow and high operating margins, which scream 'quality value' in a typically high-growth, high-burn sector. They see a company that is consistently profitable, with non-GAAP diluted EPS expected to be between $6.93 and $7.00 for the full fiscal year 2025, and they want a piece of that steady compounding.

Hedge funds, a more active and short-term focused group, have shown some mixed signals, having decreased their overall holdings by 221.6K shares in the last quarter, but this is a small reduction relative to the total institutional value. It suggests some profit-taking or rotation, but not a mass exodus. The core strategy here is betting that Qualys can continue to execute on its platform consolidation strategy and maintain its superior margins, even as the broader market for new business growth remains challenging, as management noted in their Q4 2025 guidance.

Institutional Ownership and Major Shareholders of Qualys, Inc. (QLYS)

You want to know who is buying Qualys, Inc. (QLYS) and, more importantly, why. The direct takeaway is that professional money managers-the institutional investors-own nearly the entire company, signaling a deep conviction in its long-term financial stability and strategic direction.

Institutional ownership in Qualys, Inc. is exceptionally high, hovering around 99.31% of the outstanding shares. This isn't typical; it's a powerful vote of confidence from the most sophisticated players on Wall Street. When I see numbers like this, it tells me that the market views Qualys's business model-especially its shift toward the Enterprise TruRisk Management (ETM) platform and Agentic AI-as highly durable and profitable. For a deeper dive into the financials that underpin this confidence, you should check out Breaking Down Qualys, Inc. (QLYS) Financial Health: Key Insights for Investors.

Top Institutional Investors and Their Holdings

The list of major shareholders reads like a who's who of global asset management, which is a good sign for stability. These firms are generally long-term holders, focused on fundamentals rather than short-term noise. Here's a quick look at the top holders based on their most recent filings, primarily reflecting positions as of the end of Q3 2025.

Here's the quick math: the top two holders alone, BlackRock, Inc. and Vanguard Group Inc., control over a quarter of the company's shares. That's serious skin in the game.

Recent Shifts: Accumulation and Distribution

The third quarter of 2025 saw a fascinating mix of activity, which is normal as large funds rebalance their portfolios. Overall, institutional buying outweighed selling, a net positive signal.

• Vanguard Group Inc. boosted its stake by 2.9% in Q3 2025, purchasing an additional 123,962 shares. This is a clear accumulation signal.
• BlackRock, Inc. slightly reduced its position by 2.594% in Q3 2025, selling 145,889 shares. This is often portfolio management, not a lack of faith.
• Legal & General Group Plc raised its stake by 2.8% in Q3 2025, acquiring 29,342 more shares.
• Other firms like Cerity Partners LLC increased their stake by a significant 80.6% in Q1 2025, though from a smaller base.

What this tells you is that while some passive funds, like those tracking indices, adjust their holdings, active managers are still finding compelling reasons to buy. The inflow of capital suggests a belief that Qualys, Inc. is positioned to deliver on its raised FY 2025 guidance of roughly $6.93-$7.00 in Earnings Per Share (EPS).

Impact on Stock Price and Strategy

These large investors play a crucial role beyond just providing liquidity; they are an anchor for the stock price and an implicit check on management's strategy. Their high ownership means the stock is less volatile and less susceptible to retail-driven swings.

• Strategic Validation: The institutional endorsement validates Qualys's shift to a more comprehensive, cloud-native platform model, particularly its focus on pre-breach risk management through Agentic AI.
• Stability and Scrutiny: With such a high percentage of shares held by professional firms, management knows they must deliver consistent, predictable growth. This scrutiny helps ensure operational efficiency.
• Financial Foundation: The company's robust fundamentals-consistent revenue growth, no debt, and superior returns on equity-are exactly what institutional investors demand. For instance, Q3 2025 revenue was $169.9 million, up 10.4% year-over-year.

Institutional backing is defintely a key signal for any investor. Their long-term perspective aligns with the company's strategic pivot toward high-margin, integrated security solutions.

Key Investors and Their Impact on Qualys, Inc. (QLYS)

You need to know who is really driving the stock, and for Qualys, Inc. (QLYS), the answer is simple: institutional money. These are not retail investors; we are talking about the world's largest asset managers, and their collective holdings are so dominant they essentially dictate the stock's long-term trajectory and capital structure decisions.

As of the third quarter of 2025, institutional investors and hedge funds own a staggering 99.31% of the company's stock. This extreme concentration means that while there may not be a single, loud activist investor, the consensus view of the major funds acts as a powerful, silent form of governance. Their buy/sell decisions create the floor and ceiling for the stock price.

The Heavy Hitters: Who Owns the Largest Stakes?

The top shareholders in Qualys, Inc. are the usual suspects-the titans of the asset management world who hold the stock as a core part of their index and actively managed funds. Their positions are massive, representing hundreds of millions of dollars, which explains why a small percentage change in their holdings can move the market.

Here's a quick look at the top institutional holders as of September 30, 2025, based on their most recent 13F filings. This is defintely where the real power lies:

Notice the split: BlackRock, Inc. and State Street Corp, two of the largest index fund managers, were net sellers in the third quarter, while Vanguard Group Inc. and Geode Capital Management, LLC were net buyers. This push-and-pull between passive and active strategies creates volatility, but the overall institutional buy-in remains firm.

Investor Influence: The Silent Governance

When a company's ownership is this concentrated, the key funds don't need to file an activist 13D (a filing indicating an intent to influence management) to exert pressure. Their influence is baked into the daily trading volume and the company's capital allocation decisions. The big funds are buying into the Qualys, Inc. story because of its financial discipline and strong profitability.

Here's the quick math on why they stay: Qualys, Inc. is guiding for a strong fiscal year 2025, with Earnings Per Share (EPS) expected to land between $6.93 and $7.00, and revenue projected to be between $648 million and $657 million. That's a high-margin, predictable software-as-a-service (SaaS) business, and that's exactly what large institutions want.

The influence of these investors manifests in two key ways:

• Capital Allocation: The company's consistent share repurchase program is a direct response to investor preference for returning capital. In Q3 2025 alone, Qualys, Inc. spent $49.4 million to repurchase 366,000 shares.
• Strategic Direction: Funds reward the focus on high-growth, high-margin areas like the Enterprise TruRisk Management (ETM) solution, which is seen as a key growth pillar.

Recent Moves and What They Tell You

The recent trading activity signals a nuanced but generally positive view from the institutional side. While the largest holder, BlackRock, Inc., trimmed its position by 145,889 shares, other significant players were accumulating.

For example, Fundsmith LLP, a large, well-regarded investment firm, significantly boosted its stake by adding 152,257 shares in Q3 2025. This suggests that while some index funds may be rebalancing, active managers see a compelling value proposition. Plus, you see smaller but meaningful buys from firms like Boston Trust Walden Corp, which added 8,425 shares.

The one thing to watch is insider selling. Over the past 90 days, insiders have sold a total of 30,559 shares worth roughly $4.07 million. While this is a small fraction of the total outstanding stock, it's a data point to monitor, especially when the Chief Financial Officer, Joo Mi Kim, sold 787 shares valued at $101,656.79 in early October 2025. It's a natural part of executive compensation, but sustained selling can signal a lack of confidence.

If you want to dig deeper into the company's underlying performance that is fueling these investment decisions, you should check out: Breaking Down Qualys, Inc. (QLYS) Financial Health: Key Insights for Investors.

Market Impact and Investor Sentiment

You want to know who is buying Qualys, Inc. (QLYS) and why, especially with all the noise in the cybersecurity sector. The short answer is that institutional investors overwhelmingly own the company, and their sentiment is largely positive-but cautious-driven by the company's consistent profitability and its platform strategy, the Enterprise TruRisk Management solution, which is gaining traction. This is a very institutional stock.

The institutional ownership of Qualys, Inc. is exceptionally high, sitting at about 99.31% of the stock. This means nearly all the shares are held by professional money managers, not individual retail traders, which usually points to lower volatility but also a stock that trades heavily on fundamental performance and macro sector trends. When the big money moves, you need to pay attention, so let's look at what they've been doing.

Major investment firms like Vanguard Group Inc. increased their stake by a solid 2.9% in the third quarter of 2025, acquiring an additional 123,962 shares, valued at over $582 million. Similarly, AQR Capital Management LLC significantly raised its position by 46.9% in the second quarter. This shows conviction in the long-term story. Still, it's not a unanimous buy signal; BlackRock, Inc., another top holder, trimmed its position by 2.594% as of September 30, 2025. This is a healthy sign of active portfolio management, not panic selling.

Recent Market Reactions to Ownership Shifts

The stock market's reaction to major investor moves in Qualys, Inc. has been less about the slow, methodical 13F filings (institutional ownership reports) and more about the company's rock-solid earnings performance. When the company beat expectations for the third quarter of 2025, the stock price surged. The Q3 2025 non-GAAP earnings per share (EPS) came in at $1.86, which comfortably beat the consensus estimate of $1.56.

Here's the quick math: that earnings beat was substantial, and the market reacted immediately. The stock was trending up by over 20.18% on November 5, 2025, following the Q3 financial release and raised guidance. This clearly demonstrates that the market is rewarding execution, specifically the company's ability to deliver profits and cash flow in a tough environment. For more context on how this success was built, you can check out Qualys, Inc. (QLYS): History, Ownership, Mission, How It Works & Makes Money.

• Q3 2025 Revenue: $169.9 million, up 10% year-over-year.
• FY 2025 Revenue Guidance (Latest): $665.8 million to $667.8 million.
• FY 2025 Non-GAAP EPS Guidance (Latest): $6.93 to $7.00.

Analyst Perspectives: The Impact of Key Investors

The Wall Street analyst community is currently sitting on the fence, which is defintely a neutral stance. The consensus rating for Qualys, Inc. is a 'Hold' based on the analysis of 17 firms. The average 12-month price target is $142.14, suggesting a minimal upside from current levels, which is why you see the 'Hold' recommendation dominating the landscape.

What this estimate hides is the divergence in opinion. You have firms like Wall Street Zen upgrading the stock to a 'Buy' in November 2025, while JPMorgan Chase & Co. maintains an 'Underweight' (Sell) rating, even after raising their price objective to $117.00. This split reflects the core investment debate: is the company's consistent profitability and high gross margin (around 84% in Q3 2025) enough to justify a higher valuation, or will competitive pressure from larger platform players cap its revenue growth?

The institutional investors buying are betting on the company's ability to execute on its platform consolidation strategy and maintain its superior operating margins, which hit 49% Adjusted EBITDA in Q3 2025. The analysts with a 'Hold' or 'Sell' are simply factoring in the risk of a revenue slowdown, which is a fair concern in the highly competitive cybersecurity market. Your action should be to watch the new customer adoption of their Enterprise TruRisk Management platform; that's the real leading indicator.