Company: QLYS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001107843-25-000017
Chunk: 263

Company: QUALYS, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 263
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 Some of these limitations are:

•Adjusted EBITDA does not reflect certain cash and non-cash charges that are recurring;

•Adjusted EBITDA does not reflect income tax payments that reduce cash available to us;

•Adjusted EBITDA excludes depreciation and amortization of property and equipment and amortization of intangible assets, although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future; and

•Other companies, including companies in our industry, may calculate Adjusted EBITDA differently or not at all, which reduces its usefulness as a comparative measure.

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Because of these limitations, Adjusted EBITDA should be considered alongside other financial performance measures, including revenues, net income, cash flows from operating activities and our financial results presented in accordance with U.S. GAAP. The following unaudited table presents the reconciliation of net income to Adjusted EBITDA for the three months ended March 31, 2025 and 2024:

Three Months EndedMarch 31,20252024(in thousands, except percentages)Net income$47,534 $39,731 Net income as a percentage of revenues30 %27 %Depreciation and amortization of property and equipment3,537 4,467 Amortization of intangible assets640 772 Income tax provision10,773 9,754 Stock-based compensation18,820 19,031 Total other income, net(6,552)(4,724)Adjusted EBITDA$74,752 $69,031 Adjusted EBITDA as a percentage of revenues47 %47 %

Liquidity and Capital Resources

As of March 31, 2025, our principal source of liquidity was cash, cash equivalents and marketable securities of $639.9 million, including $152.5 million of cash held outside of the United States. The following summary of cash flows for the periods indicated has been derived from our condensed consolidated financial statements included elsewhere in this report:

Three Months EndedMarch 31,20252024(in thousands)Net cash provided by operating activities$109,588 $85,505 Net cash provided by (used in) investing activities(7,031)8,072 Net cash used in financing activities(44,068)(24,959)Net increase in cash, cash equivalents and restricted cash$58,489 $68,618 

Operating Activities

During the three months ended March