v3.26.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Provision for Income Taxes
The Company’s provision for income taxes consisted of the following (in thousands):
Fiscal Year Ended March 31,
202620252024
Current provision:
Federal$13,448 $42,259 $36,394 
State6,581 9,722 9,819 
Foreign
1,787 — — 
Total21,816 51,981 46,213 
Deferred provision (benefit):
Federal28,707 (9,606)(5,088)
State3,431 (1,986)(3,505)
Foreign
— — — 
Total32,138 (11,592)(8,593)
Total provision for income taxes$53,954 $40,389 $37,620 
Schedule of Effective Income Tax Rate Reconciliation
The following is a reconciliation of the income tax expense at the federal statutory tax rate to the Company’s provision for income taxes, prepared in accordance with ASU 2023-09 for the fiscal year ended March 31, 2026 (in thousands, except percentages):
Fiscal Year Ended March 31, 2026
Income taxes at statutory rate$52,443 21.0 %
State and local income taxes, net of federal income tax effect (1)
8,528 3.4 %
Foreign tax effects
1,787 0.7 %
Tax credits
Research and development tax credits(3,663)(1.5)%
Investment tax credits(843)(0.3)%
Change in valuation allowance(39)— %
Nontaxable or nondeductible items
Section 162(m) limitation7,711 3.1 %
Stock-based compensation(12,405)(5.0)%
Other487 0.2 %
Changes in unrecognized tax benefits
(52)— %
Total
$53,954 21.6 %
(1) The tax effect in this category primarily reflects state taxes in New York, California, Pennsylvania, Illinois, New Jersey, and Tennessee, and local taxes in New York City.
The following is a reconciliation of the income tax expense at the federal statutory tax rate to the Company’s provision for income taxes in accordance with required disclosures prior to the Company’s adoption of ASU 2023-09 for the years ended March 31, 2025 and 2024 (in thousands):
Fiscal Year Ended March 31,
20252024
Income taxes at statutory rate$55,350 $38,893 
State income taxes, net of federal benefit12,831 12,130 
Research and development credits(6,439)(3,817)
Stock-based compensation(37,634)(6,734)
Change in valuation allowance25 (4,060)
Section 162(m) limitation19,872 3,410 
Transferable federal tax credits(1,305)(1,920)
Other(2,311)(282)
Total provision for income taxes$40,389 $37,620 
Schedule of Cash Paid for Income Taxes, Net of Refunds
Cash paid for income taxes, net of refunds received, for the year ended March 31, 2026 is as follows (in thousands):
Fiscal Year Ended March 31, 2026
US Federal
$16,571 
US State
5,262 
Foreign
(19)
Cash paid for income taxes, net of refunds received
$21,814 
Schedule of Deferred Tax Assets and Liabilities
Components of deferred tax assets and liabilities were as follows (in thousands):
As of March 31,
20262025
Deferred tax assets:
Accruals and deferred revenue$3,295 $4,784 
Net operating loss carryforwards862 944 
Research & development credit carryforwards8,028 5,117 
Investment tax credits
8,272 4,600 
Operating lease liabilities2,574 3,122 
Acquisition and other related expense225 248 
Stock-based compensation expense9,420 5,236 
Capitalized research and development8,715 44,558 
Gross deferred tax assets41,391 68,609 
Less: valuation allowance(1,273)(1,200)
Deferred tax assets, net of valuation allowance40,118 67,409 
Deferred tax liabilities:
Property and equipment(4,501)(3,308)
Operating lease right-of-use assets(1,805)(2,238)
Intangible assets(1,819)(1,404)
Unrealized gain
(9)(445)
Deferred tax liabilities(8,134)(7,395)
Net deferred tax assets$31,984 $60,014 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending balances for gross UTBs is as follows (in thousands):
Fiscal Year Ended March 31,
202620252024
Beginning balance$11,989 $9,302 $7,913 
Additions for tax positions related to the current year1,844 2,502 1,404 
Additions for tax positions related to prior years11 194 112 
Reductions for tax positions related to prior years(257)(4)(119)
Reductions related to a lapse of statute— (5)(8)
Ending balance$13,587 $11,989 $9,302