v3.26.1
Taxes on Income (Loss) (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) Before Taxes on Income from Domestic and Foreign Operations
Income (loss) before taxes on income that resulted from domestic and foreign operations is as follows:
Year Ended March 31,
202620252024
Domestic operations$27,922 $(12,053)$(186,045)
Foreign operations15,866 22,695 18,320 
Total income (loss) before taxes
$43,788 $10,642 $(167,725)
Schedule of Provision (Benefit) for Taxes on Income
The provision (benefit) for taxes on income consisted of the following:
Year Ended March 31,
202620252024
Federal:
Current$(1,868)$72,767 $36,679 
Deferred(297)131 (29,318)
Total federal(2,165)72,898 7,361 
State and local:
Current4,770 15,450 14,342 
Deferred850 (567)(1,818)
Total state and local5,620 14,883 12,524 
Foreign:
Current6,621 9,734 4,717 
Deferred(1,608)(1,034)692 
Total foreign5,013 8,700 5,409 
Total provision (benefit) for taxes
$8,468 $96,481 $25,294 
Schedule of Effective Income Tax Rate Reconciliation Pursuant to the disclosure requirements of ASU 2023-09, a reconciliation of the U.S. federal statutory tax rate to the Company's effective income tax rate for the fiscal year ended March 31, 2026 is as follows:
Year Ended March 31, 2026
Amount
Percent
U.S. federal statutory income tax rate$9,196 21.0 %
State and local income taxes, net of federal income tax effect (1)
4,562 10.4 
Foreign tax effects:
United Kingdom
Withholding taxes1,020 2.3 
Valuation allowance1,515 3.5 
    Other122 0.3 
Australia
Valuation Allowances(2,352)(5.4)
Other52 0.1 
Singapore
Non-taxable interest income(1,023)(2.3)
Other387 0.9 
Mexico
      Valuation Allowance(615)(1.4)
      Other424 1.0 
Foreign withholding taxes947 2.2 
Other foreign jurisdictions(125)(0.3)
Effects of changes in tax laws or rates enacted in the period— — 
Effect of cross-border tax laws(93)(0.2)
Tax credits:
Research and development tax credits(8,727)(19.9)
Investment energy tax credits(2,647)(6.0)
Other (224)(0.5)
Changes in valuation allowance(5,551)(12.7)
Nontaxable or nondeductible items:
Goodwill impairment7,350 16.8 
Compensation with Sec 162(m) limitation2,999 6.8 
Meals and Entertainment597 1.4 
    Other (398)(1.1)
Changes in unrecognized tax benefits1,877 4.3 
Other adjustments
Deferred tax adjustments(825)(1.9)
Effective income tax rate
$8,468 19.3 %
________
(1)State and local income taxes in Texas, California, and Florida make up more than 50% of the tax effect of this category.
A reconciliation of the U.S. federal statutory tax rate to the Company's effective income tax rate for fiscal years prior to the adoption of ASU 2023-09 is as follows:
Year Ended March 31,
20252024
U.S. federal statutory income tax rate21.0 %21.0 %
Effect of state and local income taxes111.3 (6.1)
Foreign rate differential(2.6)0.7 
Foreign withholding and branch taxes20.9 1.1 
Research and development credit4.5 1.6 
U.S. tax cost of foreign earnings— (0.1)
Unrecognized tax benefit5.6 (1.5)
Valuation allowance on deferred tax assets734.8 (25.0)
Foreign exchange gain or loss(2.5)(1.1)
Nontaxable or nondeductible interest— 0.7 
Goodwill impairment— (5.1)
Other, net13.6 (1.3)
Effective income tax rate
906.6 %(15.1)%
Schedule of Deferred Temporary Differences
The principal temporary differences between accounting for income and expenses for financial reporting and income tax purposes as of March 31, 2026 and 2025 are as follows:
March 31,
20262025
Deferred tax assets:
Inventory and product development costs$28,392 $30,971 
Capitalized software development 22,066 71,285 
Employee compensation13,089 5,602 
Deferred revenue265,611 250,721 
Operating lease liability15,932 17,805 
Loss and credit carryforwards32,220 32,168 
Interest expense carryforward92,381 120,133 
Accrued expenses13,174 16,569 
Other5 — 
Total deferred tax assets
482,870 545,254 
Deferred tax liabilities:
Intangible and fixed assets(154,205)(201,252)
Deferred royalties, commissions(41,724)(45,232)
Deferred financing costs(7,105)(14,855)
Operating lease right-of-use asset(10,691)(12,018)
Indefinite-lived intangibles and goodwill(112,873)(110,197)
Other— (1,239)
Total deferred tax liabilities
(326,598)(384,793)
Net deferred income tax asset (liability) before valuation allowance156,272 160,461 
Valuation allowance(162,914)(168,134)
Net deferred income tax asset (liability)
$(6,642)$(7,673)
Reported as:
Non-current deferred tax assets$8,572 $7,983 
Non-current deferred tax liabilities(15,214)(15,656)
Net deferred income tax asset (liability)
$(6,642)$(7,673)
Schedule of Cash Paid for Income Taxes, Net of Refunds
Cash paid for income taxes, net of refunds, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the fiscal year ended March 31, 2026 is as follows:
Year Ended March 31, 2026
Federal$56,296 
State13,019 
Foreign7,267 
Cash paid for income taxes, net of refunds$76,582 
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended March 31,
202620252024
Balance at the beginning of the period$12,216 $8,116 $9,816 
Additions based on tax positions related to the current year845 4,100 2,757 
Additions for tax positions of prior years— — 305 
Reduction for tax positions of prior year(357)— (4,762)
Balance at the end of the period
$12,704 $12,216 $8,116