INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2026

Reconciliation of Income Taxes to Statutory Federal Income Tax Rate

A reconciliation of income taxes computed at the statutory federal income tax rate of 21.0% to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands, except percentages):



		Year ended March 31,
		2026					2025					2024
		Amount		Percent			Amount		Percent			Amount		Percent
U.S. federal statutory tax rate	$	36,422		21.0	%	$	22,286		21.0	%	$	28,400		21.0	%

Domestic federal reconciling items:
Nontaxable or non-deductible items:
Non-deductible executive compensation		2,434		1.4	%		2,020		1.9	%		1,718		1.3	%
Other		403		0.2	%		(189	)	(0.2	)%		97		0.1	%
Cross border tax laws		(105	)	0.0	%		(131	)	(0.1	)%		(170	)	(0.1	)%
Other (1)		(9	)	0.0	%		(97	)	(0.1	)%		(172	)	(0.3	)%

State and local income taxes, net of federal income tax effect (2)		9,962		5.7	%		5,504		5.2	%		8,094		6.0	%

Foreign tax effects
Other foreign jurisdictions		211		0.1	%		292		0.3	%		(56	)	0.0	%

Total	$	49,318		28.4	%	$	29,685		28.0	%	$	37,911		28.0	%

(1) Represents several adjustments, none of which are significant for separate disclosure.

(2) The states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California, Virginia, and New York.

Income (loss) from Continuing Operations Before Income Tax Expense (Benefit)

Income (loss) from continuing operations before income tax expense (benefit):


	Year ended March 31,
		2026		2025		2024
U.S.		$	165,705	$	101,325	$	129,317
Foreign			7,733		4,799		5,921
Total		$	173,438	$	106,124	$	135,238

Components of Provision for Income Taxes

The components of the provision for income taxes from continuing operations are as follows (in thousands):

		Year ended March 31,
Current:		2026		2025			2024
Federal	$	34,490	$	21,928		$	28,394
State		12,141		7,121			11,006
Foreign		1,795		1,092			1,236
Total current expense		48,426		30,141			40,636

Deferred:
Federal		569		(551	)		(1,898	)
State		284		(50	)		(778	)
Foreign		39		145			(49	)
Total deferred expense (benefit)		892		(456	)		(2,725	)

Total income tax expense:
Total federal		35,059		21,377			26,496
Total state		12,425		7,071			10,228
Total foreign		1,834		1,237			1,187
Provision for income taxes	$	49,318	$	29,685		$	37,911

Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities were as follows (in thousands):


	March 31, 2026			March 31, 2025
Deferred tax assets:
Accrued vacation	$	2,875		$	2,744
Deferred revenue		7,512			7,108
Allowance for credit losses		785			1,745
Restricted stock		801			301
Operating leases		850			-
Other deferred tax assets		1,936			841
Inventory reserve		455			1,313
Capitalized research expenditures		374			1,666
Accrued bonus		2,602			2,708
Lease liabilities		4,291			5,067
Other credits and carryforwards		14			101
Gross deferred tax assets		22,495			23,594
Less: valuation allowance		(14	)		(63	)
Net deferred tax assets		22,481			23,531

Deferred tax liabilities:
Property and equipment		(2,296	)		(2,516	)
Operating leases		-			(7,804	)
Prepaid expenses		(4,090	)		(4,095	)
Right-of-use assets		(3,988	)		(4,714	)
Tax deductible goodwill		(3,152	)		(2,198	)
Total deferred tax liabilities		(13,526	)		(21,327	)

Net deferred tax asset	$	8,955		$	2,204

Income Taxes Paid, Net of Refunds

The following table presents income taxes paid, net of refunds, for the year ended March 31, 2026 (in thousands):


	Year Ended March 31,
	2026		2025		2024

U.S. federal	$	33,013	$	36,119	$	29,171

Domestic state and local:
California (1)		-		2,491		2,598
Other		11,152		9,374		8,283
Total state and local		11,152		11,865		10,881

Foreign		1,901		748		1,474
Total	$	46,066	$	48,732	$	41,526

(1) The amount of income taxes paid for the year ended March 31, 2026 was less than 5% of total income taxes paid.