Company: QLYS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001107843-25-000017
Chunk: 206

Company: QUALYS, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 206
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 substitute for, financial information prepared in accordance with U.S. GAAP. We calculate Adjusted EBITDA as net income before (1) other (income) expense, net, which includes interest income, interest expense and other income and expense, (2) income tax provision (benefit), (3) depreciation and amortization of property and equipment, (4) amortization of intangible assets, (5) stock-based compensation and (6) non-recurring expenses that do not reflect ongoing costs of operating the business. 

Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from or as a substitute for the measures presented in accordance with U.S. GAAP. 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 market