v3.26.1
Income Taxes
3 Months Ended
Apr. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

13. Income Taxes

The following table provides details of income taxes for the periods indicated:

 

 

 

Three Months Ended April 30,

 

 

 

2026

 

 

2025

 

 

 

(in thousands)

 

Loss before income taxes

 

$

(17,333

)

 

$

(23,683

)

Provision for income taxes

 

 

760

 

 

 

645

 

Effective tax rate

 

(4.4)%

 

 

(2.7)%

 

 

The Company recorded an expense for income taxes of $0.8 million and $0.6 million for the three months ended April 30, 2026 and 2025, respectively. The increased income tax expense for the three months ended April 30, 2026, as compared to the same period in the prior fiscal year, was primarily due to a projected decrease in net loss in the current fiscal year.

 

The Company files federal and state income tax returns in the United States and in various foreign jurisdictions. The Company’s fiscal years 2023 through 2026 are generally open and subject to potential examination by U.S. federal tax authorities. The Company’s fiscal years 2022 through 2026 are generally open and subject to potential examination by state tax authorities. The Company’s fiscal years 2019 to 2026 remain open to examination by foreign tax authorities. Fiscal years outside of the normal statute of limitations remain open to audit by tax authorities due to tax attributes generated in those earlier years, which have been carried forward and may be audited in subsequent years when utilized.

The Company regularly assesses the likelihood of adverse outcomes resulting from potential tax examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of April 30, 2026, the gross amount of unrecognized tax benefits was approximately $18.8 million. If the estimates of income tax liabilities prove to be less than the ultimate assessment, then a further charge to expense could be required. If events occur, and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities could result in tax benefits being recognized in the period in which the Company determines the liabilities are no longer necessary.