v3.26.1
Derivative instruments and hedging activities
 3 Months Ended
Apr. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative instruments and hedging activities Derivative instruments and hedging activities
Cash Flow Hedges
During the year ended January 31, 2026, and during the three months ended April 30, 2026, the Company entered into foreign currency forward contracts to buy Canadian Dollars in exchange for U.S. Dollars in order to hedge the functional currency equivalent cash flows related to the Company’s Canadian Dollar denominated payroll payments. The Company does not hold any derivatives for trading or speculative purposes.
As of April 30, 2026, the notional value of the foreign currency forward contracts that the Company held to buy Canadian Dollars in exchange for U.S. Dollars totaled 39,100 Canadian Dollars, including a notional value of 35,190 Canadian Dollars designated as a foreign currency cash flow hedge and a notional value of 3,910 not designated as a foreign currency cash flow hedge.
The fair values of outstanding derivative foreign currency forward contract was as follows:
Consolidated balance sheet location
April 30, 2026
January 31, 2026
Foreign currency cash flow hedges
Accrued expenses$214 $133 
Non-designated hedges
Accrued expenses23 14 
The effect of derivative instruments on the Company’s consolidated statements of operations were as follows:
Consolidated statements of operations location
Three months ended
April 30,
20262025
Foreign currency cash flow hedges
Expenses$(73)$20 
Foreign currency cash flow hedges
Income tax benefit (expense)
— — 
Non-designated hedges
Other income (expense), net(24)249 
Pre-tax gains (losses) associated with cash flow hedges were as follows:
Consolidated statements of operations and Statements of comprehensive income (loss) locations
Three months ended
April 30,
 20262025
Gain (loss) recognized in accumulated other comprehensive income (included in assessment of effectiveness)Unrealized gain (loss) on cash flow hedge$(8)$387 
Gains reclassified from accumulated other comprehensive income into income (effective portion)Expenses(73)20 
Tax effect reclassified from accumulated other comprehensive income into income (effective portion)Income tax expense— — 
As of April 30, 2026, the foreign currency forward contracts had maturities of 3 months and 8 months. As of April 30, 2026, the Company estimates that the entire $214 of the net loss recorded in accumulated other comprehensive income (loss) related to its foreign currency cash flow hedge will be reclassified into income within the next 12 months.
See Note 9 - Fair value measurements for additional disclosures for derivatives and hedging.