Company: QLYS
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001107843-25-000038
Chunk: 202

Company: QUALYS, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 202
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 hedge$47 $2,495 Foreign currency forward contracts not designated as hedging instruments113 80 Total$160 $2,575 LiabilitiesForeign currency forward contracts designated as cash flow hedge$6,224 $1,315 Foreign currency forward contracts not designated as hedging instruments219 24 Total$6,443 $1,339 

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The Company presents its derivative assets and derivative liabilities at gross fair values in the condensed consolidated balance sheets. However, under the master netting agreements with the respective counterparties of the foreign exchange contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. The potential offset to both assets and liabilities under the right of set-off associated with the Company's foreign currency exchange contracts are immaterial as of September 30, 2025 and December 31, 2024. The derivatives held by the Company are not subject to any credit contingent features negotiated with its counterparties. The Company is not required to pledge nor is entitled to receive cash collateral related to the above contracts. The counterparties to these derivatives are large, global financial institutions that the Company believes are creditworthy, and therefore, it does not consider the risk of counterparty nonperformance to be material.The following summarizes the gains (losses) recognized from forward contracts and other foreign currency transactions in other income (expense), net in the condensed consolidated statements of operations:Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024(in thousands)(in thousands)Net gains (losses) from non-designated forward contracts$729 $(896)$(3,755)$(457)Other foreign currency transactions gains (losses)(1,665)1,501 4,079 (958)Total foreign exchange gains (losses), net$(936)$605 $324 $(1,415)

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NOTE 3.                              Accumulated Other Comprehensive Income (Loss)

The components and changes in accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2025 and 2024 were as follows:Available-for-Sale Debt SecuritiesCash Flow HedgesTotal(in thousands)Balances at December 31, 2024$391 $1,026 $1,417 Change in unrealized gains (losses) during the period366 (2,230