v3.25.2
Income Taxes (Tables)
12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Net Income (Loss) from Operations before Provision for Income Taxes

Net income from operations before provision for income taxes is shown below (in thousands):

 

 

 

 

Year Ended June 30,

 

 

 

 

2025

 

 

2024

 

 

2023

 

U.S.

 

 

$

21,888

 

 

$

83,317

 

 

$

203,139

 

Foreign

 

 

 

(618

)

 

 

(539

)

 

 

31

 

 

 

$

21,270

 

 

$

82,778

 

 

$

203,170

 

Provision for Income Tax Expense by Jurisdiction and Effective Tax Rate

The Company files a consolidated federal income tax return based on a June 30 tax year end. The provision for income tax expense by jurisdiction and the effective tax rate are shown below (in thousands):

 

 

 

 

Year Ended June 30,

 

 

 

 

2025

 

 

2024

 

 

2023

 

Current:

 

 

 

 

 

 

 

 

 

 

Federal

 

 

$

6,663

 

 

$

14,177

 

 

$

39,408

 

State and local

 

 

 

1,228

 

 

 

1,847

 

 

 

5,371

 

Foreign

 

 

 

1,454

 

 

 

419

 

 

 

37

 

 

 

 

9,345

 

 

 

16,443

 

 

 

44,816

 

Deferred:

 

 

 

 

 

 

 

 

 

 

Federal

 

 

 

(1,884

)

 

 

(2,000

)

 

 

178

 

State and local

 

 

 

(148

)

 

 

(608

)

 

 

1,407

 

Foreign

 

 

 

(1,887

)

 

 

(90

)

 

 

 

 

 

 

(3,919

)

 

 

(2,698

)

 

 

1,585

 

 

 

 

 

 

 

 

Income tax expense

 

 

$

5,426

 

 

$

13,745

 

 

$

46,401

 

 

 

 

 

 

 

 

 

 

 

Effective income tax rate

 

 

 

25.5

%

 

 

16.6

%

 

 

22.8

%

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to income before tax are set forth below (in thousands):

 

 

 

Year Ended June 30,

 

 

 

 

2025

 

 

2024

 

 

2023

 

Federal income tax provision at statutory rate

 

 

$

4,467

 

 

$

17,383

 

 

$

42,666

 

State and local tax, net of federal benefit

 

 

 

772

 

 

 

1,188

 

 

 

5,083

 

Adjustment related to acquisitions

 

 

 

308

 

 

 

(4,544

)

 

 

 

Foreign derived intangible income

 

 

 

(305

)

 

 

(93

)

 

 

(791

)

Stock-based compensation

 

 

 

(551

)

 

 

(1,095

)

 

 

(1,171

)

State rate change

 

 

 

135

 

 

 

(231

)

 

 

202

 

Permanent adjustments

 

 

 

1,064

 

 

 

509

 

 

 

311

 

Foreign rate differential

 

 

 

(304

)

 

 

66

 

 

 

30

 

Foreign withholding taxes

 

 

 

 

 

 

377

 

 

 

 

Other

 

 

 

(160

)

 

 

185

 

 

 

71

 

 

 

$

5,426

 

 

$

13,745

 

 

$

46,401

 

 

Schedule of Deferred Tax Assets and Liabilities

The schedule of deferred taxes presented below summarizes the components of deferred taxes that have been classified as deferred tax assets and liabilities related to taxable and deductible temporary differences (in thousands):

 

June 30, 2025

 

 

June 30, 2024

 

Accruals and reserves

 

$

1,606

 

 

$

196

 

Lease liabilities

 

 

4,548

 

 

 

1,737

 

Stock-based compensation

 

 

1,055

 

 

 

1,398

 

State tax accrual

 

 

72

 

 

 

134

 

Net operating loss carryforwards

 

 

1,371

 

 

 

12

 

Business interest expense disallowance

 

 

1,375

 

 

 

 

Capitalized costs

 

 

633

 

 

 

 

Other

 

 

285

 

 

 

51

 

Deferred tax assets

 

 

10,945

 

 

 

3,528

 

 

 

 

 

 

 

Intangible assets

 

 

(19,432

)

 

 

(18,657

)

Fixed assets

 

 

(1,544

)

 

 

(1,056

)

Earnings from equity method investment

 

 

(2,334

)

 

 

(3,879

)

Investment in partnership

 

 

(1,553

)

 

 

(442

)

Right of use assets

 

 

(4,368

)

 

 

(1,614

)

Other

 

 

(49

)

 

 

(67

)

Deferred tax liabilities

 

 

(29,280

)

 

 

(25,715

)

 

 

 

 

 

 

Net deferred tax liability

 

$

(18,335

)

 

$

(22,187

)

Schedule of Unrecognized Tax Benefits Below is a reconciliation of net unrecognized tax benefits (in thousands):

 

 

 

Year Ended June 30,

 

 

 

 

2025

 

 

2024

 

 

2023

 

Beginning balance

 

 

$

223

 

 

$

146

 

 

$

146

 

Reductions due to lapse of statute of limitations

 

 

 

(15

)

 

 

(8

)

 

 

 

Additions as a result of acquired tax positions

 

 

 

386

 

 

 

85

 

 

 

 

 

 

$

594

 

 

$

223

 

 

$

146