Company: QLYS
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001107843-25-000038
Chunk: 227

Company: QUALYS, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 227
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 the three months ended September 30, 2025, compared to the same periods in 2024, primarily due to unfavorable changes in foreign currency of $1.5 million, and a decrease in interest income of $0.5 million.

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Total other income, net increased by $1.1 million for the nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to favorable changes in foreign currency of $1.8 million, partially offset by a decrease in interest income of $0.7 million.

Income tax provision

Three Months EndedSeptember 30,ChangeNine Months EndedSeptember 30,Change20252024$%20252024$%(in thousands, except percentages)(in thousands, except percentages)Income tax provision$14,936 $6,111 $8,825 144%$37,232 $26,277 $10,955 42%

Income tax provision increased by $8.8 million for the three months ended September 30, 2025 compared to the same period in 2024, primarily due to the tax effect of a decrease in the benefit from FDII deduction as a result of the enactment of the OBBBA and a decrease in the tax benefits arising from discrete adjustments in the period.

Income tax provision increased by $11.0 million for the nine months ended September 30, 2025 compared to the same period in 2024, primarily due to the tax effect of a decrease in the benefit from FDII deduction as a result of the enactment of the OBBBA, along with a decrease in excess tax benefits from stock-based compensation and a decrease in tax benefits from other discrete adjustments compared to the prior year.

Key Operating and Non-GAAP Financial Performance Metrics

In addition to measures of financial performance presented in our condensed consolidated financial statements, we monitor the key metrics set forth below to help us evaluate growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts and assess operational efficiencies.

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Net Dollar Expansion Rate

We evaluate our ability to retain and grow existing customers by assessing our net dollar expansion rate on a last twelve months, or LTM, basis. This metric is used to appropriately manage resources and customer retention and expansion. We calculate the net dollar expansion rate on a foreign exchange neutral basis by dividing a numerator by a denominator, each defined as follows:

Denominator: To calculate our net dollar expansion rate as of the end of a reporting period, we first