Company: QLYS
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001107843-25-000038
Chunk: 182

Company: QUALYS, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 182
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On July 4, 2025, OBBBA was signed into law. The OBBBA permanently extends and modifies certain domestic and international provisions from the 2017 TCJA and phases out certain provisions from the 2022 Inflation Reduction Act. Beginning in 2025, the OBBBA provides an elective deduction for domestic research and development expenses and a reinstatement of elective 100% first-year bonus depreciation. Some international provisions of the OBBBA will not be effective until 2026 and forward. We have recognized the effects of the OBBBA provisions in our financial results to the extent they are applicable to the three and nine months ended September 30, 2025 September 30, 2025. We will continue to monitor the impact of the OBBBA and the range of potential outcomes, which will depend on facts in each year and anticipated guidance from the U.S. Department of the Treasury.

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Results of Operations

The following table sets forth selected condensed consolidated statements of operations data for each of the periods presented as a percentage of revenues:

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Revenues100%100%100%100%Cost of revenues16 19 17 18 Gross profit84 81 83 82 Operating expenses:Research and development17 19 18 19 Sales and marketing21 21 21 21 General and administrative11 12 11 11 Total operating expenses49 52 50 51 Income from operations35 29 33 31 Total other income, net3 5 4 4 Income before income taxes38 34 37 35 Income tax provision8 4 8 6 Net income30%30%29%29%

Comparison of Three and Nine Months Ended September 30, 2025 and 2024

Revenues

Three Months EndedSeptember 30,ChangeNine Months EndedSeptember 30,Change20252024$%20252024$%(in thousands, except percentages)(in thousands, except percentages)Revenues$169,882 $153,867 $16,015 10%$493,843 $448,380 $45,463 10%

Revenues increased by $16.0 million for the three months ended September 30, 2025 compared to the same period in 2024, driven by increased demand for our subscription services by our end