Company: QLYS
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001107843-25-000031
Chunk: 198

Company: QUALYS, INC.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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11.5 million and $10.4 million for the three months ended June 30, 2025 and 2024, respectively, resulting in an effective tax rate of 19.6% and 19.2%, respectively. The increase in income tax provision for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, was primarily due to the tax effect of an increase in pretax income and a decrease in excess tax benefits arising from stock-based compensation. The increase in income tax expense was partially offset by an increase in foreign derived intangible income benefit and an increase in research and development tax credit.The Company recorded an income tax provision of $22.3 million and $20.2 million for the six months ended June 30, 2025 and 2024, respectively, resulting in an effective tax rate of 19.0% and 19.5%, respectively. The increase in income tax provision for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, was primarily due to the tax effect of an increase in pretax income and a decrease in excess tax benefits arising from stock-based compensation. The increase in income tax expense was partially offset by an increase in foreign derived intangible income benefit and an increase in research and development tax credit.As of June 30, 2025, the Company had unrecognized tax benefits of $13.2 million, of which $6.0 million, if recognized, would favorably impact the Company's effective tax rate. As of December 31, 2024, the Company had unrecognized tax benefits of $12.1 million, of which $5.3 million, if recognized, would favorably impact the Company's effective tax rate. Due to various factors, including uncertainties of administrative and regulatory processes in certain jurisdictions, the timing of the resolution of these unrecognized tax benefits is uncertain. It is reasonably possible that the Company may recognize approximately $1.9 million of its unrecognized tax benefits within the next twelve months if the statutes lapse in certain jurisdictions without an examination. The Company does not believe that its estimates, as otherwise provided for, on such tax positions, will materially increase within the next twelve months.On July 4, 2025, the United States enacted tax reform legislation through the One Big Beautiful Bill Act (OBBBA). Included in this legislation are provisions that allow for the immediate expensing of domestic United States research and development