Company: QLYS
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001107843-25-000038
Chunk: 230

Company: QUALYS, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 230
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,929)$30,265 

Operating Activities

During the nine months ended September 30, 2025, we generated $217.9 million of cash from our net income, as adjusted for non-cash items mainly related to stock-based compensation expense, depreciation and amortization expense and deferred taxes, as compared to $180.4 million during the nine months ended September 30, 2024. In addition, we also generated $15.9 million of cash from changes in working capital during the nine months ended September 30, 2025, of which $27.1 million was related to a net favorable change in accounts receivable and deferred revenue due to the growth in billings and collections, partially offset by an $11.2 million net unfavorable change in prepaid expenses and payables and accrued liabilities primarily due to the timing of payments. During the nine months ended September 30, 2024, we generated $16.0 million of cash from changes in working capital, of which $26.8 million was attributed to decreases in accounts receivable and deferred revenue due to the timing of collections and billings, partially offset by a $9.9 million increase in prepaid expenses and a $1.0 million decrease in payables and accrued liabilities primarily due to the timing of payments. 

We expect a reduction in cash taxes paid for U.S. federal and state income taxes for the fiscal year ended December 31, 2025, primarily due to the deduction of domestic research and development expenditures allowed by the OBBBA.

37

Investing Activities

During the nine months ended September 30, 2025, we used $93.1 million of cash for purchases of marketable securities net of sales and maturities, and used $4.3 million of cash in capital expenditures mainly related to purchases of computer equipment to support our growth and development and leasehold improvements for expansion of our office spaces, as compared to $53.0 million of cash for purchases of marketable securities net of sales and maturities, and $6.5 million of cash used in capital expenditures mainly related to purchases of computer equipment to support our growth and development during the nine months ended September 30, 2024.

Financing Activities

During the nine months ended September 30, 2025, we used $138.8 million of cash for share repurchases, $20.2 million of cash in payment of employee withholding taxes upon vesting of restricted stock units, partially offset by $8.