v3.26.1
Income taxes (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Income (Loss) Before Income Taxes
The components of income (loss) before the provision for income taxes are as follows (in thousands):
Fiscal year ended March 31,
 202620252024
Domestic$20,865 $130,386 $142,507 
Foreign19,594 15,109 (1,517)
Total$40,459 $145,495 $140,990 
Schedule of Components of (Provision) Benefit for Income Taxes
The components of the provision for income taxes are as follows (in thousands):
Fiscal year ended March 31,
 202620252024
Current:  
US federal$(11,168)$(26,543)$(12,505)
State(4,690)(6,286)(4,078)
Foreign(1,819)(44)(20)
Total current(17,677)(32,873)(16,603)
Deferred: 
US federal5,113 2,660 2,130 
State1,902 491 746 
Foreign(3,479)(3,684)400 
Total deferred3,536 (533)3,276 
Total provision for income taxes$(14,141)$(33,406)$(13,327)
Schedule of Reconciliation of Federal Statutory Rate to Company's Effective Tax Rate The following table presents a reconciliation of the federal statutory rate to the Company’s effective tax rate before income taxes for the year of the adoption of ASU 2023-09:
Fiscal year ended March 31, 2026
AmountPercent
Income before provision for income taxes$40,459 
Federal statutory rate(8,497)21.0 %
State and local income taxes, net of federal income tax effect(1)
(1,639)4.1 %
Foreign tax effects:
United Kingdom:
Statutory tax rate difference between United Kingdom and United States(710)1.8 %
Other adjustments(495)1.2 %
Other foreign jurisdictions(73)0.2 %
Effect of cross-border tax laws:
Global intangible low-taxed income(1,985)4.9 %
Subpart F(546)1.3 %
Other(53)0.1 %
Nontaxable or nondeductible items:
IRC section 162(m) limitation(15,025)37.1 %
Stock-based compensation(2)
14,001 (34.6)%
Enhanced inventory deduction645 (1.6)%
Other(372)0.9 %
Tax credits:
Foreign tax credits1,083 (2.7)%
Change in valuation allowance(24)0.1 %
Change in unrecognized tax benefits(173)0.4 %
Other adjustments(278)0.7 %
Effective tax rate$(14,141)34.9 %
(1) State taxes in Texas, California, Oregon, New York and Illinois made up a majority (greater than 50 percent) of the tax effect in this category.
(2) This category includes the tax effects of share-based payment awards, such as windfalls and shortfalls.
The following table presents a reconciliation of the federal statutory rate to the Company’s effective tax rate before income taxes for years prior to the adoption of ASU 2023-09:
Fiscal year ended March 31,
20252024
Federal statutory rate21.0 %21.0 %
State tax, net of federal benefit3.2 %1.8 %
Nondeductible business expenses0.4 %0.4 %
Nondeductible employee compensation16.0 %4.3 %
Provision-to-return adjustment(0.3)%(0.2)%
Uncertain tax positions0.1 %— %
Stock-based compensation(19.3)%(18.4)%
Change in valuation allowance— %0.4 %
Effects of foreign operations1.6 %— %
Others0.3 %0.2 %
Effective tax rate23.0 %9.5 %
Schedule of Income Tax Paid
The amount of income tax paid, net of refunds, are as follows (in thousands):
Fiscal year ended March 31,
 2026
US federal$14,440 
State:
California1,077 
All states representing less than five percent of total2,414 
Total state3,491 
Foreign:
UK3,119 
All jurisdictions representing less than five percent of total311 
Total foreign3,430 
Total cash taxes$21,361 
Schedule of Components of Net Deferred Taxes
The components of net deferred taxes arising from temporary differences are as follows (in thousands):
March 31, 2026March 31, 2025
Deferred tax assets:  
Compensation$— $88 
Inventory and receivables14,972 16,570 
Accrued expenses9,330 5,124 
Stock compensation10,474 8,186 
Net operating losses31 403 
Right of use liability12,817 9,730 
Capitalized research and development2,593 3,514 
Other2,961 1,925 
Gross deferred tax assets53,178 45,540 
Valuation allowance(769)(744)
Net deferred tax assets52,409 44,796 
Deferred tax liabilities:
Goodwill402 3,906 
Fixed assets and internally developed software21,009 9,548 
Intangible assets17,524 22,872 
Right of use asset11,383 9,255 
Other824 1,487 
Deferred tax liabilities51,142 47,068 
Net deferred tax (assets) liabilities$(1,267)$2,272 
The deferred tax assets and liabilities are reported in the accompanying balance sheets as follows (in thousands):
March 31, 2026March 31, 2025
Deferred tax assets$7,464 $1,540 
Deferred tax liabilities6,197 3,812 
Net deferred tax (assets) liabilities$(1,267)$2,272 
Schedule of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
Fiscal year ended March 31,
 202620252024
Balance at beginning of year$550 $433 $442 
Increases for prior year tax positions105 — — 
Increases for current year tax positions167 163 108 
Decreases for prior year tax positions— (6)(19)
Decreases due to statutes lapsing(108)(40)(98)
Balance at end of year$714 $550 $433