Company: QLYS
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001107843-25-000038
Chunk: 292

Company: QUALYS, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 292
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.9 million increase in prepaid expenses and a $1.0 million decrease in payables and accrued liabilities primarily due to the timing of payments. 

We expect a reduction in cash taxes paid for U.S. federal and state income taxes for the fiscal year ended December 31, 2025, primarily due to the deduction of domestic research and development expenditures allowed by the OBBBA.

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Investing Activities

During the nine months ended September 30, 2025, we used $93.1 million of cash for purchases of marketable securities net of sales and maturities, and used $4.3 million of cash in capital expenditures mainly related to purchases of computer equipment to support our growth and development and leasehold improvements for expansion of our office spaces, as compared to $53.0 million of cash for purchases of marketable securities net of sales and maturities, and $6.5 million of cash used in capital expenditures mainly related to purchases of computer equipment to support our growth and development during the nine months ended September 30, 2024.

Financing Activities

During the nine months ended September 30, 2025, we used $138.8 million of cash for share repurchases, $20.2 million of cash in payment of employee withholding taxes upon vesting of restricted stock units, partially offset by $8.9 million of proceeds from employee exercise of stock options, and $6.8 million of proceeds from issuance of common stock through our ESPP, as compared to $97.2 million of cash used for share repurchases, and $23.1 million of cash used in payment of employee withholding taxes upon vesting of restricted stock units and $1.5 million payment of cash held in escrow as part of the Blue Hexagon acquisition on October 4, 2022, partially offset by $8.3 million of proceeds from employee exercise of stock options, and $6.9 million of proceeds from issuance of common stock through our ESPP, during the nine months ended September 30, 2024.

Material Cash Requirements

We believe our existing cash and cash equivalents, marketable securities and our expected cash flow generated from operations will be sufficient to fund our operations for the next twelve months and beyond. If we repatriate funds from our foreign subsidiaries, we could be subject to foreign withholding taxes.

Operating lease obligations

Our material cash requirements include our operating lease obligations to make payments under our non-cancelable lease agreements for our facilities and shared cloud platforms. We