Company: QLYS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001107843-25-000009
Chunk: 85

Company: QUALYS, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 85
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ized 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.

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 years ended December 31, 2024 and 2023.

Year Ended December 31,20242023(in thousands)Net income$173,680 $151,595 Net income as a percentage of revenues29 %27 %Depreciation and amortization of property and equipment15,610 23,904 Amortization of intangible assets2,903 3,087 Income tax provision36,142 27,056 Stock-based compensation77,133 69,079 Total other income, net(22,626)(15,582)Adjusted EBITDA$282,842 $259,139 Adjusted EBITDA as a percentage of revenues47 %47 %

Liquidity and Capital Resources

As of December 31, 2024, our principal source of liquidity was cash, cash equivalents and marketable securities of $575.3 million, including $119.9 million of cash held outside of the United States. The following summary of cash flows for the periods indicated have been derived from our consolidated financial statements included elsewhere in this report:

Year Ended December 31,20242023(in thousands)Net cash provided by operating activities$244,094 $244,605 Net cash used in investing activities(71,427)(73,166)Net cash used in financing activities(145,650)(141,493)Net increase in cash, cash equivalents and restricted cash$27,017 $29,946 

Operating Activities

In 2024, we generated $243.9 million of cash from our net income, as adjusted for non-cash items mainly related to stock-based compensation expense, depreciation and amortization expense and deferred taxes, as compared to $226.4 million in 2023. In addition, we also generated $0.2 million of cash from working capital change in 2024, of which $11.7 million was related to the 

48

increases in