Income Taxes (Tables)
|
12 Months Ended |
Mar. 31, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Summary of Income Tax Provision |
The income tax provision consisted of the following for the fiscal years ended March 31, 2026, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
Current — Federal |
|
$ |
20,394,000 |
|
|
$ |
23,985,000 |
|
|
$ |
17,463,000 |
|
Current — State |
|
|
7,613,000 |
|
|
|
6,833,000 |
|
|
|
4,707,000 |
|
Subtotal |
|
|
28,007,000 |
|
|
|
30,818,000 |
|
|
|
22,170,000 |
|
Deferred — Federal |
|
|
5,076,000 |
|
|
|
(4,594,000 |
) |
|
|
(2,828,000 |
) |
Deferred — State |
|
|
(296,000 |
) |
|
|
(565,000 |
) |
|
|
(493,000 |
) |
Subtotal |
|
|
4,780,000 |
|
|
|
(5,159,000 |
) |
|
|
(3,321,000 |
) |
|
|
$ |
32,787,000 |
|
|
$ |
25,659,000 |
|
|
$ |
18,849,000 |
|
|
| Summary of Reconciliation Income Tax Provision from the Statutory Federal Income Tax Rate |
The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the fiscal year ended March 31, 2026:
|
|
|
|
|
|
|
|
|
|
2026 |
|
Income taxes at federal statutory rate |
|
$ |
30,058,000 |
|
|
21.00 |
% |
State income taxes, net of federal benefit (1) |
|
|
6,047,000 |
|
|
4.22 |
% |
Tax credits |
|
|
(1,262,000 |
) |
|
(0.88 |
%) |
Change in valuation allowance |
|
|
38,000 |
|
|
0.03 |
% |
Nondeductible items: |
|
|
|
|
|
Stock-based compensation |
|
|
(2,640,000 |
) |
|
(1.84 |
%) |
§162(m) limitation and permanent items |
|
|
1,065,000 |
|
|
0.74 |
% |
Worldwide changes in unrecognized tax benefits |
|
|
33,000 |
|
|
0.02 |
% |
Other: |
|
|
|
|
|
Deferred tax adjustment |
|
|
(552,000 |
) |
|
(0.38 |
%) |
|
|
$ |
32,787,000 |
|
|
22.91 |
% |
|
|
(1) |
State taxes in the following states made up the majority of the tax effect in this category: California, Georgia, Illinois, Pennsylvania and Texas. |
The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the fiscal years ended March 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
Income taxes at federal statutory rate |
|
$ |
25,373,000 |
|
|
$ |
19,971,000 |
|
State income taxes, net of federal benefit |
|
|
4,937,000 |
|
|
|
3,369,000 |
|
Uncertain tax positions |
|
|
9,000 |
|
|
|
(22,000 |
) |
Stock-based compensation and §162(m) limitation |
|
|
(3,687,000 |
) |
|
|
(3,961,000 |
) |
Permanent items and tax credits |
|
|
(568,000 |
) |
|
|
(480,000 |
) |
Adjustments to returns as filed |
|
|
(420,000 |
) |
|
|
67,000 |
|
Valuation allowance |
|
|
15,000 |
|
|
|
(95,000 |
) |
|
|
$ |
25,659,000 |
|
|
$ |
18,849,000 |
|
|
| Summary of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities at March 31, 2026 and 2025 are, as follows:
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
Deferred tax assets: |
|
|
|
|
|
|
Accrued liabilities not currently deductible |
|
$ |
8,753,000 |
|
|
$ |
8,363,000 |
|
Allowance for expected credit losses |
|
|
1,024,000 |
|
|
|
1,947,000 |
|
Stock-based compensation |
|
|
3,362,000 |
|
|
|
2,808,000 |
|
Deferred lease liability |
|
|
7,253,000 |
|
|
|
7,094,000 |
|
Capitalized research and development expenditures |
|
|
321,000 |
|
|
|
5,826,000 |
|
Other |
|
|
574,000 |
|
|
|
541,000 |
|
Deferred tax assets |
|
|
21,287,000 |
|
|
|
26,579,000 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Excess of book over tax basis of fixed assets |
|
|
(4,108,000 |
) |
|
|
(4,645,000 |
) |
Intangible assets |
|
|
(4,987,000 |
) |
|
|
(4,905,000 |
) |
Right-of-use asset |
|
|
(5,461,000 |
) |
|
|
(5,267,000 |
) |
Accrued revenue |
|
|
(1,911,000 |
) |
|
|
(2,350,000 |
) |
Other |
|
|
(606,000 |
) |
|
|
(456,000 |
) |
Total deferred tax liabilities |
|
|
(17,073,000 |
) |
|
|
(17,623,000 |
) |
Valuation allowance |
|
|
(290,000 |
) |
|
|
(252,000 |
) |
Deferred tax liabilities |
|
|
(17,363,000 |
) |
|
|
(17,875,000 |
) |
Net deferred tax assets (liabilities) |
|
$ |
3,924,000 |
|
|
$ |
8,704,000 |
|
|
|
|
|
|
|
|
|
| Summary of Cash Paid for Income Taxes |
The cash paid for income taxes (net of refunds) during the fiscal year 2026 was as follows:
|
|
|
|
|
|
|
2026 |
|
Federal |
|
$ |
23,912,000 |
|
State and local: |
|
|
|
California |
|
|
1,269,000 |
|
Texas |
|
|
592,000 |
|
Georgia |
|
|
538,000 |
|
New York |
|
|
451,000 |
|
Pennsylvania |
|
|
398,000 |
|
Illinois |
|
|
354,000 |
|
Other |
|
|
3,478,000 |
|
State and local total |
|
|
7,080,000 |
|
Foreign: |
|
|
|
Puerto Rico |
|
|
145,000 |
|
Foreign total |
|
|
145,000 |
|
Total |
|
$ |
31,137,000 |
|
|
| Reconciliation of the Financial Statement Recognition and Measurement of Uncertain Tax Positions During the Current Fiscal Year |
A reconciliation of the financial statement recognition and measurement of uncertain tax positions during the current fiscal year is as follows:
|
|
|
|
|
Balance as of March 31, 2025 |
|
$ |
163,000 |
|
Additions based on tax positions related to the current year |
|
|
— |
|
Additions for tax positions of prior years |
|
|
91,000 |
|
Reductions for tax positions related to the current year |
|
|
— |
|
Reductions for tax positions of prior years |
|
|
(50,000 |
) |
Balance as of March 31, 2026 |
|
$ |
204,000 |
|
|