Company: CVLT
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001169561-25-000089
Chunk: 59

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 59
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 the six-month withholding period prior to purchase. The total expense associated with the ESPP for the six months ended September 30, 2025 and 2024 was $2,593 and $1,701, respectively. As of September 30, 2025, there was approximately $2,114 of unrecognized cost related to the current offering period of our ESPP.

18

Table of Contents      Commvault Systems, Inc.Notes to Consolidated Financial Statements - Unaudited (continued)(In thousands, except per share data)

11.    Income Taxes

Income tax expense was $370 and $3,757 in the three and six months ended September 30, 2025, respectively, compared to income tax expense of $1,095 and $3,222 in the three and six months ended September 30, 2024, respectively. The change in income tax expense compared to the prior year period relates primarily to estimated current federal taxes. 

The One Big Beautiful Bill Act (the “OBBBA”), enacted on July 4, 2025, includes several corporate tax provisions relevant to U.S. businesses. Included in this legislation are provisions that allow for the immediate expensing of domestic research and development expenses, extensions of bonus depreciation, and modifications to the international tax regimes. The provisions in the legislation are generally effective beginning in our fiscal 2026. The Company is continuing to evaluate the impact of these provisions on its financial statements, but an estimate of the financial impact has been included in our operating results for the three and six months ended September 30, 2025. The OBBBA did not have a material impact to our income tax provision for the three and six months ended September 30, 2025. 

12.     Segment Information

We operate as a single reportable segment as we report financial information, including net income determined in accordance with GAAP, among other measures, on a consolidated basis to our Chief Executive Officer, who serves as the Chief Operating Decision Maker (“CODM”). The CODM uses consolidated net income to make operating decisions, allocate resources, and evaluate financial performance, primarily by monitoring actual results compared to forecasted results, as well as by reviewing year-over-year results and trending historical performance. The CODM also uses net income in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of actual versus forecasted results are used in assessing the performance of the segment.The CODM reviews significant segment