Company: QLYS
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001107843-25-000031
Chunk: 167

Company: QUALYS, INC.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 167
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 on the level of profitability achieved in future periods. Release of the valuation allowance would result in the recognition of deferred tax assets and a corresponding decrease to income tax expense in the period the release is recorded.

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 expenses, immediate expensing of certain capital expenditures, and other changes to the United States taxation of profits derived from foreign operations. As the legislation was signed into law after the close of our second quarter, the impacts are not included in our operating results for the six months ended June 30, 2025. We continue to evaluate the impact of OBBBA, but currently do not expect it to have a material impact on our estimated annual effective rate in 2025.

Results of Operations

The following table sets forth selected condensed consolidated statements of operations data for each of the periods presented as a percentage of revenues:

Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Revenues100%100%100%100%Cost of revenues18 18 18 18 Gross profit82 82 82 82 Operating expenses:Research and development18 18 18 19 Sales and marketing22 22 21 21 General and administrative11 10 11 10 Total operating expenses51 50 50 50 Income from operations31 32 32 32 Total other income, net5 4 4 3 Income before income taxes36 36 36 35 Income tax provision7 7 7 7 Net income29%29%29%28%

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Comparison of Three and Six Months Ended June 30, 2025 and 2024

Revenues

Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change20252024$%20252024$%(in thousands, except percentages)(in thousands, except percentages)Revenues$164,062 $148,708 $15,354 10%$323,961 $294,513 $29,448 10%

Revenues increased by $15.4 million for the three months ended June 30, 2025 compared to the same period in 2024, driven by increased demand for our subscription services by our end customers. Of the total