Income Taxes |
6 Months Ended |
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Jul. 31, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company computes its provision for interim periods by applying an estimated annual effective tax rate to anticipated annual pretax income or loss as directed by ASC 740. The estimated annual effective tax rate is applied to the Company’s year-to-date income or loss, and is adjusted for discrete items recorded in the period. The Company recorded an income tax (benefit) expense of $(7.0) million and $0.7 million for the three months ended July 31, 2025 and 2024, respectively. The effective tax rate for the three months ended July 31, 2025 and 2024 was 20.2% and (3.1)%, respectively. The effective tax rate for the six months ended July 31, 2025 and 2024 was 8.6% and (2.6)%, respectively. The decrease in the effective tax rate was primarily due to the impact related to the release of the valuation allowance from the acquisition of OfferFit. The provision for income taxes and a benefit related to the release of the valuation allowance due to the acquisition of OfferFit recorded for the three and six months ended July 31, 2025 consists of income taxes in state jurisdictions and foreign jurisdictions in which the Company conducts business. The primary difference between the effective tax rate and the statutory rate is the change in the valuation allowance recorded. The Company continues to maintain a valuation allowance against its net deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized. When the Company determines that it will be able to realize some portion or all of its deferred tax assets, an adjustment to its valuation allowance on its deferred tax assets would have the effect of increasing net income in the period such determination is made. On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (“OBBBA”). The OBBBA includes several tax provisions that may impact the Company's future tax position. These provisions include, but are not limited to, the permanent restoration of immediate expensing of domestic research and experimentation expenditures and modifications to the international tax framework. Certain provisions of the legislation are effective in 2025 while others will become effective in 2026. The impacts of OBBBA on our financial statements for the three months ended July 31, 2025 were not material; however, as our business operations or financial results change, or as additional regulations and administrative guidance are issued, we will evaluate any further impacts to our consolidated financial statements.
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