v3.26.1
Income Taxes
 12 Months Ended
Apr. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company is incorporated in the Netherlands but operates in various countries with differing tax laws and rates. The geographical breakdown of loss before income taxes is summarized as follows (in thousands):
Year Ended April 30,
202620252024
Dutch$(143,468)$(135,145)$(233,089)
Foreign141,167 103,576 110,333 
Loss before income taxes$(2,301)$(31,569)$(122,756)
The components of the (benefit from) provision for income taxes were as follows (in thousands):
Year Ended April 30,
202620252024
Current:
Dutch$6,641 $5,815 $4,297 
Foreign19,163 15,540 24,558 
Total current tax expense25,804 21,355 28,855 
Deferred:
Dutch(431,715)448 43 
Foreign35,844 54,742 (213,374)
Total deferred tax (income) expense(395,871)55,190 (213,331)
Total (benefit from) provision for income taxes$(370,067)$76,545 $(184,476)
The Company’s effective tax rate substantially differed from the Dutch statutory tax rate of 25.8% primarily due to recurring items, such as tax rates in jurisdictions both within and outside the Netherlands and the relative amounts of income that is earned in those jurisdictions, non-deductible stock-based compensation, BEAT legislation in the United States, and other one-time tax benefits including the release of valuation allowances against deferred tax assets in the Netherlands, the United Kingdom, and California.
Upon the adoption of ASU 2023-09, as described in Note 2, the reconciliation of taxes at the federal statutory rate to the Company’s benefit from income taxes for the fiscal year ended April 30, 2026 is as follows (in thousands, except for rates):
Year Ended April 30, 2026
TaxRate
Netherlands federal statutory tax rate$(594)25.8 %
Foreign tax effects
Brazil
Foreign withholding taxes1,756 (76.3)%
Other40 (1.7)%
Canada
Stock-based compensation1,196 (52.0)%
Research and development credit(1,034)44.9 %
Other69 (3.0)%
State and local income taxes, net of federal income tax effect502 (21.8)%
France
Stock-based compensation1,027 (44.6)%
Other(1,335)58.0 %
Israel
Gain on transfer of intellectual property1,236 (53.7)%
GAAP to stat: Book gain on transfer of intellectual property(1,414)61.5 %
Stock-based compensation1,449 (63.0)%
Other(1,191)51.8 %
Spain
Research and development credit(1,373)59.7 %
Other(8)0.4 %
United Kingdom
Valuation allowance(24,535)1,066.4 %
Prior-year adjustments4,571 (198.7)%
Stock-based compensation(2,994)130.1 %
Other537 (23.4)%
United States
BEAT waiver election51,231 (2,226.8)%
Current-year deferred only3,248 (141.2)%
Foreign-Derived Intangible Income (“FDII”)(2,052)89.2 %
Foreign rate differential(2,476)107.6 %
Global intangible low-taxed income1,386 (60.2)%
Prior-year tax adjustment(1,022)44.4 %
Research and development credit(4,989)216.9 %
Sec. 162(m) limitation5,963 (259.2)%
Stock-based compensation5,018 (218.1)%
Other605 (26.3)%
Year Ended April 30, 2026
TaxRate
State and local income taxes, net of federal income tax effect(14,722)639.9 %
Other foreign jurisdictions1,054 (45.8)%
Tax credits
Foreign tax credit(2,812)122.2 %
Nontaxable or nondeductible items
Branch profits adjustment(39)1.7 %
Meals and entertainment42 (1.8)%
Non-deductible mergers and acquisitions transaction costs223 (9.7)%
Other(5)0.1 %
Valuation allowance(390,506)16,973.4 %
Other
Prior-year adjustments(50)2.2 %
Stock-based compensation2,200 (95.6)%
Worldwide changes in unrecognized tax benefits(269)11.7 %
Effective tax rate$(370,067)16,085.0 %
A reconciliation of income taxes at the statutory income tax rate to the provision for (benefit from) income taxes included in the consolidated statements of operations for the fiscal years ended April 30, 2025 and 2024 is as follows (in thousands, except for rates):
Year Ended April 30,
20252024
Tax
Rate
Tax
Rate
Dutch statutory income tax$(8,145)25.8 %$(31,671)25.8 %
Foreign income taxed at different rates(5,561)17.6 %(2,406)2.0 %
Tax credits(13,508)42.8 %(10,149)8.3 %
Stock-based compensation(9,282)29.4 %(10,296)8.4 %
Change in valuation allowance48,539 (153.8)%(186,166)151.6 %
Intellectual property migration
610 (1.9)%7,353 (6.0)%
BEAT waiver election
45,321 (143.6)%40,141 (32.7)%
FDII exclusion(2,241)7.1 %(2,328)1.9 %
Executive compensation
6,523 (20.7)%4,091 (3.3)%
Foreign withholding taxes2,701 (8.6)%2,864 (2.3)%
State taxes
6,867 (21.8)%1,866 (1.5)%
Unrecognized tax benefit
6,713 (21.3)%1,406 (1.1)%
Tax credit add-back
1,215 (3.8)%950 (0.8)%
Meals and entertainment
598 (1.9)%566 (0.5)%
Prior-year true-ups
(3,680)11.7 %(846)0.7 %
Other(125)0.5 %149 (0.2)%
Provision for (benefit from) income taxes
$76,545 (242.5)%$(184,476)150.3 %
Income Tax Payments
Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended April 30, 2026 was as follows (in thousands):
Year Ended April 30, 2026
Netherlands$3,175 
Foreign
Brazil1,533
France1,831
Germany - federal2,237 
Germany - local1,442 
Israel3,725
United States - federal3,572 
United States - states4,135 
Other6,361 
Cash paid for income taxes, net of refunds received$28,011 
Deferred Income Taxes
Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Management assesses whether it is more likely than not that some portion or all of the deferred tax assets will be realized. Deferred tax assets are reduced by a valuation allowance where management has concluded it is more likely than not that the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management makes estimates and judgments about future taxable income based on assumptions that are consistent with the Company’s plans and estimates.
Significant components of the Company’s deferred tax assets and liabilities are summarized as follows (in thousands):
As of April 30,
20262025
Deferred tax assets:
Accrued compensation$8,476 $5,837 
NOL carryforwards502,126 537,912 
Intangible assets
4,377 5,641 
Deferred revenue13,118 7,478 
Stock-based compensation29,314 20,613 
Tax credits28,371 32,271 
Disallowed interest expense13,642 13,183 
Lease liabilities3,487 4,727 
Other10,298 11,018 
Gross deferred tax assets613,209 638,680 
Less valuation allowance(4,219)(437,497)
Total deferred tax assets608,990 201,183 
Deferred tax liabilities:
Deferred contract acquisition costs(51,574)(38,629)
Right of use assets(3,108)(4,133)
Other(89)— 
Gross deferred tax liabilities(54,771)(42,762)
Net deferred tax assets
$554,219 $158,421 
The valuation allowance for deferred tax assets as of April 30, 2026 and 2025 was $4.2 million and $437.5 million, respectively. As of April 30, 2025, the valuation allowance for the Netherlands, the United Kingdom, and California deferred tax assets was $390.5 million, $24.3 million, and $22.7 million, respectively. During the year ended April 30, 2026, the Company released valuation allowances of $390.5 million, $23.7 million, and $20.7 million related to deferred tax assets in the Netherlands, the United Kingdom, and California, respectively. As of April 30, 2026, the remaining valuation allowance of $4.2 million relates to certain U.S. states and foreign jurisdictions.
The release of the valuation allowance in the Netherlands and California was supported by the implementation of a committed tax planning action in fiscal 2027 that is expected to generate future taxable income in each jurisdiction. The release of the valuation allowance in the United Kingdom was attributable to achieving three years cumulative income during the three months ended April 30, 2026 as well as forecasts of future taxable income. Based on the weight of all available positive and negative evidence, the Company determined that realization of the related deferred tax assets was more likely than not for each of these jurisdictions.
As of April 30, 2026, the Company had NOL carryforwards for Netherlands, United States (federal and state, respectively), and United Kingdom income tax purposes of $1.557 billion, $229.6 million, $505.4 million, and $68.9 million, respectively, with losses being carried forward indefinitely and beginning to expire in the year ending April 30, 2026 for the United States (federal and state, respectively), with Netherlands and United Kingdom losses being carried forward indefinitely. The Company also has research and development tax credit carryforwards for the United States (federal and state, respectively), Canada, and Spain for income tax purposes of $30.0 million, $9.1 million, $0.7 million, and $2.3 million, respectively, which begin to expire on April 30, 2039, April 30, 2027, April 30, 2042, and April 30, 2041, respectively.
Uncertain Tax Positions
The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes, provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company has assessed its income tax positions and recorded tax benefits for all years subject to examination, based on the Company’s evaluation of the facts, circumstances, and information available at each period end.
Although the Company believes that it has adequately reserved for its uncertain tax positions, the Company can provide no assurance that the final tax outcome of these matters will not be materially different. As the Company continues to grow in size, it will face increased complexity, and the Company’s unrecognized tax benefits may increase in the future. The Company adjusts its reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made.
The Company had unrecognized tax benefits of $29.7 million as of April 30, 2026, of which none would impact the effective tax rate before consideration of any valuation allowance. The activity within the Company’s unrecognized tax benefits is summarized as follows (in thousands):
As of April 30,
202620252024
Balance as of beginning of year$29,625 $22,691 $18,157 
(Decrease) increase related to tax positions taken in prior periods(3,003)1,553 1,201 
Increase related to tax positions taken in the current period4,038 5,381 3,333 
Decrease related settlement with tax authorities(991)— — 
Balance as of end of year$29,669 $29,625 $22,691 
During the year ended April 30, 2026, the Company released approximately $3.0 million of prior positions upon completion of the audit and filing of tax returns in applicable jurisdictions. The increase in tax positions related to the current period is primarily from research and development tax credits generated for the year ended April 30, 2026.
The Company’s policy is to recognize penalties and interest accrued on any unrecognized tax benefits as a component of income tax expense. The Company recognized interest and penalties of $0.7 million, $0.9 million, and $0.2 million for the years ended April 30, 2026, 2025, and 2024, respectively. The amount of accrued interest and penalties recorded on the consolidated balance sheets as of April 30, 2026 and 2025 was $0.7 million and $1.3 million, respectively.
The Company is subject to periodic examination of income tax returns by various domestic and international tax authorities. During the year ended April 30, 2026, the Company was subject to new audits by various tax authorities.
The Company does not anticipate any significant increases or decreases in its uncertain tax positions within the next twelve months. The Company files tax returns in multiple jurisdictions, including the Netherlands and United States. The Company’s tax filings for fiscal years starting with the year ended April 30, 2019 remain open in certain tax jurisdictions.
Withholding taxes associated with the repatriation of earnings or for temporary differences related to investments in non-Dutch subsidiaries have not been provided for, as the Company intends to reinvest the earnings of such subsidiaries indefinitely. As of April 30, 2026, if such earnings were to be repatriated, they would be exempt from taxation in the Netherlands and the amount of dividend withholding taxes from such foreign jurisdictions would be $6.5 million, due to the various income tax treaties between the Netherlands and the respective foreign jurisdictions.
In 2021, the OECD published Pillar Two Model Rules defining a global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD has since issued administrative guidance providing transition and safe harbor rules concerning the implementation of the Pillar Two global minimum tax. A number of countries have enacted legislation to implement core elements of the Pillar Two proposal. Pillar Two did not have a significant impact on the Company’s consolidated financial statements for the year ended April 30, 2026. The Company continues to monitor the impact of proposed and enacted global tax legislation.