Income Taxes (Tables)

12 Months Ended

Jun. 30, 2026

Income before income taxes for the year ended June 30, 2026 consisted of the following:


Domestic	$	382,102
Foreign	5,201
Total	$	387,303

Schedule of income tax expense (benefit)

Income tax expense for the years ended June 30, 2024, 2025 and 2026 consisted of the following:


	Year Ended June 30,
	2024		2025		2026
Current taxes
Federal	$	30,900	$	65,188	$	13,040
State and local	11,524		18,918		20,609
International	—		999		1,002
Deferred taxes:
Federal	26,438		(4,072)		75,459
State and local	1,387		940		8,425
International	—		(37)		(973)
Total income tax expense	$	70,249	$	81,936	$	117,562

Schedule of tax rate reconciliation by applying the U.S. federal income tax rate to pretax income

Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the year ended June 30, 2026 to pretax income as a result of the following:


	Year Ended June 30,
	2026
U.S. federal statutory tax rate	$	81,333	21.0	%
State and local income taxes, net of federal income tax effect (i)	24,707		6.4
Foreign tax effects	(1,064)		(0.3)
Effect of cross-border tax laws	283		0.1
Tax credits
Research and development tax credits	(9,518)		(2.4)
Other credits	(233)		(0.1)
Changes in unrecognized tax benefits	1,234		0.3
Non-taxable or non-deductible items
Stock-based compensation	18,318		4.7
Other non-deductible expenses	2,502		0.7
Effective tax rate	$	117,562	30.4	%

(i) State taxes in California, Illinois, Florida and Pennsylvania made up the majority (greater than 50%) of the tax effect in this category.

Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended June 30, 2024 and 2025 to pretax income as a result of the following:


	Year Ended June 30,
	2024		2025
Income tax expense at statutory federal rate	21.0	%	21.0	%
Increase (reduction) in income taxes resulting from:
Research and development credit and other credits	(2.9)		(2.0)
Non-deductible expenses	0.7		0.5
Change in valuation allowance	(0.5)		—
Stock-based compensation expense	2.7		1.8
State and local income taxes, net of federal income tax benefit	4.3		5.1

Other	0.1		0.1
	25.4	%	26.5	%

Schedule of income taxes paid by jurisdiction

(d) Income Taxes Paid

The summary of income taxes paid by jurisdiction for the year ended June 30, 2026:


	Year Ended June 30,
	2026
Federal	$	13,100
State and local income taxes
California	3,657
Florida	2,723
Other states	13,023
Foreign taxes	652
Total income taxes paid	$	33,155

The amount of cash taxes paid by the Company during the years ended June 30, 2024 and 2025 was $47,619 million and $86,100, respectively.

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2025 and 2026 are presented below.


	June 30,
	2025		2026
Deferred tax assets:
Operating lease liabilities	$	14,457	$	13,150
Accrued expenses	23,101		24,191
Stock-based compensation	25,970		19,524
Net operating loss carryforwards	20,471		16,352
Federal and state tax credits	16,196		16,116
Research and development costs	60,611		4,723
Other	—		1
Total deferred tax assets	160,806		94,057
Valuation allowance	(232)		(2,954)
Net deferred tax assets	160,574		91,103
Deferred tax liabilities:
Deferred contract costs	(134,448)		(145,341)
Operating lease right-of-use assets	(9,400)		(8,328)
Intangible assets	(20,269)		(20,184)
Depreciation	(8,976)		(12,098)
Other	(2,286)		—
Total deferred tax liabilities	(175,379)		(185,951)
Net deferred tax liabilities	$	(14,805)	$	(94,848)

Schedule of unrecognized tax benefits

As of June 30, 2025 and 2026, the Company’s liabilities for unrecognized tax benefits, which would impact the Company’s effective tax rate if recognized, are presented below. The Company will include applicable penalties and interest when the benefit is recognized:


	Year Ended June 30,
	2025		2026
Unrecognized tax benefits at beginning of the year	$	2,435	$	3,306
Additions for current year tax positions	848		1,022
Additions for tax positions of prior periods	23		212

Unrecognized tax benefit at end of year	$	3,306	$	4,540