Company: QLYS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001107843-25-000017
Chunk: 159

Company: QUALYS, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 159
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 shares, common stock is reduced by an amount equal to the number of shares being retired multiplied by the par value. The excess amount that is retired over its par value is first allocated as a reduction to additional paid-in capital based on the original cost of additional paid-in capital per share of identified issuances. The remaining amount is allocated to accumulated deficit.During the three months ended March 31, 2025 and 2024, the Company repurchased 292 thousand shares and 105 thousand shares of its common stock for approximately $39.6 million and $18.0 million, respectively. As of March 31, 2025, approximately $303.8 million remained available for share repurchases pursuant to the Company's share repurchase program.Excise tax on stock repurchases net of issue was immaterial to the Company's financial results and cash flows for the three months ended March 31, 2025 and 2024 and the Company's financial position as of March 31, 2025 and December 31, 2024.

NOTE 10.                            Income Taxes

The Company's income tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period.The Company's quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pretax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company does business, tax law developments and possible outcomes of audits. The Company's estimated effective tax rate for the year differs from the U.S. statutory rate of 21% primarily due to non-deductible stock-based compensation expense, state taxes, the benefit of U.S. federal income tax credits, the impact of mandatory capitalization of research expenses for U.S. tax purposes, and the benefits related to foreign-derived intangible income deduction.

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The Company recorded an income tax provision of $10.8 million and $9.8 million for the three months ended March 31, 2025 and 2024, respectively, resulting in an effective tax rate of 18.5% and 19.7%, respectively. The increase in income tax provision for the three months ended March 31, 2025 compared