Income taxes (Tables)

12 Months Ended

Mar. 31, 2026

Summary of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of income before income taxes were comprised of the following:


	Fiscal year ended March 31,
	2026		2025		2024
	(In thousands)
Domestic	$	634,828	$	620,166	$	576,009
Foreign	78,998		27,850		31,988
Total	$	713,826	$	648,016	$	607,997

Summary of Components of Income Tax Expense (Benefit)

The provision for income taxes for fiscal year 2026 consisted of the following, subsequent to the adoption of ASU 2023-09:


	Fiscal year ended March 31, 2026
Current:	(In thousands)
Federal	$	105,229
State	8,356
Foreign	14,581
Total	128,166

Deferred:
Federal	$	11,045
State	(3,506)
Foreign	(7,762)
Total	(223)

Provision for income taxes	$	127,943

The provision for income taxes for fiscal years 2025 and 2024 consisted of the following, prior to the adoption of ASU 2023-09:


	Fiscal year ended March 31,
	2025		2024
Current:	(In thousands)
Domestic	$	132,181	$	65,286
Foreign	11,486		7,904
Total	143,667		73,190

Deferred:
Domestic	$	(13,452)	$	30,496
Foreign	555		8,096
Total	(12,897)		38,592

Provision for income taxes	$	130,770	$	111,782

Summary of Effective Income Tax Rate Reconciliation

The domestic statutory income tax rate was 21% in fiscal years 2026, 2025 and 2024. The reconciliation of the income tax expense expected based on domestic statutory income tax rates to the expense (benefit) for income taxes included in the consolidated statements of operations is as follows, subsequent to the adoption of ASU 2023-09 (in thousands, except percentages):


	Fiscal year ended March 31, 2026
	Amount		Percent
U.S. federal tax at statutory rate	$	149,903	21.0	%
State and local income taxes, net of federal income tax effect (1)	5,710		0.8	%
Foreign tax effects:
Spain

Transfer pricing adjustment	(13,680)		(1.9)	%
Other	5,380		0.8	%
Other foreign jurisdictions	(1,043)		(0.1)	%
Effects of cross-border tax laws
Foreign-derived intangible income	(15,208)		(2.1)	%
Tax credits	(9,180)		(1.3)	%


Nontaxable or nondeductible items:
Stock-based compensation expense (2)	6,117		0.9	%
Other	(56)		—	%
Total provision for income taxes and effective tax rate	$	127,943	17.9	%

(1)State and local taxes in Arizona, California, Illinois, Indiana, and Wisconsin made up the majority (greater than 50%) of the tax effect in this category.

(2)Includes amounts related to non-deductible stock-based compensation, non-deductible executive compensation, and excess tax benefits or shortfalls from stock-based compensation. The total includes $8.7 million related to excess tax benefits on current year vested and exercised awards.

The reconciliation of the income tax expense expected based on domestic statutory income tax rates to the expense (benefit) for income taxes included in the consolidated statements of operations is as follows, prior to the adoption of ASU 2023-09:


	Fiscal year ended March 31,
	2025		2024
	(In thousands)
Income taxes based on domestic statutory rates	$	136,083	$	127,679
Effect of tax rate differential	1,682		2,165
Foreign-derived intangible income deduction	(20,747)		(9,055)
Foreign disregarded entities	6,261		5,574

Change in TRA liability	23		(12,416)
Amount allocated to non-controlling interest	(1,702)		(41,348)
Stock-based compensation	7,097		—
State	15,314		7,810
Change in state effective rate	(7,494)		31,279

Other	(5,747)		94
Provision for income taxes	$	130,770	$	111,782

Summary of Income Taxes Paid by Jurisdiction

The following table represents supplemental cash flow disclosures of income taxes paid, interest paid, and non-cash investing and financing activities:


	Fiscal year ended March 31,
	2026		2025		2024
Supplemental disclosure:	(In thousands)
Income taxes paid (1)	$	64,586	$	125,519	$	28,551
Interest paid	—		10,319		10,654
Non-cash investing and financing activities:
Unpaid purchases of property and equipment	$	1,159	$	1,663	$	1,596
Fair value of contingent considerations as of acquisition dates	29,930		2,550		—
Acquisition deferred purchase price	2,674		14,000		—
Net liabilities contributed to joint venture	4,780		—		—
Transfers from property and equipment, net to inventories	8,153		—		—
Transfers from other assets to other intangible assets, net	2,000		—		—
TRA revaluation	—		7,635		23,823
Stock-based compensation tax benefits	—		1,698		—

Unpaid distribution to former non-controlling interest holders	—		3,010		—
Other equity	—		3,476		—
Reclassification of redeemable non-controlling interest	—		—		622,292

(1)Amounts presented in fiscal years 2026 and 2025 were net of transfer and assignment of 45X Credit of $130.1 million and $63.8 million, respectively.

The amounts of income taxes paid by jurisdiction for the fiscal year ended March 31, 2026, subsequent to the adoption of ASU 2023-09 (in thousands):


	Fiscal year ended March 31, 2026
Federal (1)	$	160,629
State and Local	27,455
Foreign	8,074
Total income taxes paid	$	196,158

(1)Includes assigned or transferred 45X Federal Tax Credits of $130.1 million.

Summary of Deferred Tax Assets and Liabilities

The components of deferred income taxes are as follows:


	As of March 31,
	2026		2025
Deferred tax liabilities:	(In thousands)
Foreign taxes	$	(20,908)	$	(18,128)
Fixed assets	(3,410)		(2,871)
Intangible assets	(13,704)		(10,329)
Others	(12,081)		(4,047)
Total deferred tax liabilities	(50,103)		(35,375)
Deferred tax assets:

Stock-based compensation	19,186		24,125
Deferred revenue	22,446		—
Capitalized research and development	47,117		—
Goodwill	289,986		—



Net operating loss and other carryforwards	27,293		23,417
Investment in the LLC	—		435,802
TRA liability	60,524		—
Interest deduction on investment in the LLC	40,483		28,267
Foreign tax credits	17,065		13,632
Others	37,828		9,962
Total deferred tax assets	561,928		535,205
Valuation allowances	(1,253)		(1,052)
Total deferred tax assets, net of valuation allowances	560,675		534,153

Net deferred tax asset	$	510,572	$	498,778

The net deferred tax asset is classified as follows:
Long-term asset	$	511,815	$	498,778
Long-term liability	(1,243)		—
Total	$	510,572	$	498,778

Summary of Operating Loss Carryforwards

These tax losses and other carryforwards will expire at various dates as follows:


Expiration dates of deferred tax assets related to operating losses and other carryforwards	Amount
Fiscal year	(In millions)
2027 - 2032	$	2,847
2033 - 2038	253
2039 - Post	827
Indefinite	23,366
Total	$	27,293

Summary of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Fiscal year ended March 31,
	2026		2025		2024
	(In thousands)
Balance, beginning of fiscal year	$	1,118	$	349	$	434
Increase / (decrease) to tax positions in prior period	—		(4)		(85)
Increase due to business combinations	547		1,118		—


Lapse of statute of limitations	—		(345)		—
Balance, end of fiscal year	$	1,665	$	1,118	$	349