Company: CVLT
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001169561-25-000089
Chunk: 21

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 21
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 vesting term. The estimated fair value was calculated using a Monte Carlo simulation model. The fair value of the awards granted during the six months ended September 30, 2025 was $288.47 per unit. The awards are included in the restricted stock units table.Employee Stock Purchase PlanThe ESPP is a shareholder approved plan under which substantially all employees may purchase our common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of six-month offering periods. An employee’s payroll deductions under the ESPP are limited to 10% of the employee’s salary and employees may not purchase more than $25 of stock during any calendar year. Employees purchased 45 shares in exchange for $6,974 of proceeds in the six months ended September 30, 2025, and 68 shares in exchange for $5,486 of proceeds in the six months ended September 30, 2024. The ESPP is considered compensatory and the fair value of the discount and look back provision are estimated using the Black-Scholes formula and recognized over 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.

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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