Income Taxes (Tables)
|
12 Months Ended |
Jun. 30, 2026 |
| Income Taxes |
|
| Schedule of deferred tax assets and liabilities |
| | | | | | | | | June 30, | | | 2026 | | 2025 | | | | (In thousands) | Deferred tax assets | | | | | | | Net operating loss carryforward | | $ | 13,524 | | $ | 13,888 | Reserves | | | 10,545 | | | 9,154 | Accrued expenses | | | 11,916 | | | 15,441 | Stock compensation expense | | | 7,320 | | | 6,881 | Other assets | | | 2,170 | | | 3,308 | Convertible debt | | | 9,085 | | | 4,059 | Deferred revenue | | | 122 | | | 260 | Capitalized software and website development costs | | | — | | | 4,680 | Lease liability | | | 2,659 | | | 11,136 | Total deferred tax assets | | | 57,341 | | | 68,807 | Deferred tax liabilities | | | | | | | Capitalized curriculum development | | | (9,758) | | | (10,071) | Capitalized software and website development costs | | | (24,023) | | | — | Property and equipment | | | (18,259) | | | (11,460) | Right-of-use assets | | | (1,755) | | | (3,832) | Returned materials | | | (2,220) | | | (2,722) | Purchased intangibles | | | (6,943) | | | (6,717) | Total deferred tax liabilities | | | (62,958) | | | (34,802) | Net deferred tax (liability) asset before valuation allowance | | | (5,617) | | | 34,005 | Valuation allowance | | | (7,416) | | | (7,628) | Net deferred tax (liability) asset | | $ | (13,033) | | $ | 26,377 | Reported as: | | | | | | | Long-term deferred tax (liability) asset | | $ | (13,033) | | $ | 26,377 |
|
| Schedule of components of income before income taxes |
| | | | | | | | | | | | Years Ended June 30, | | | 2026 | | 2025 | | 2024 | | | | (In thousands) | Domestic | | $ | 435,108 | | $ | 374,932 | | $ | 262,802 | Foreign | | | 5,850 | | | 6,016 | | | 5,863 | Total income before income taxes | | $ | 440,958 | | $ | 380,948 | | $ | 268,665 |
|
| Schedule of reconciliation of provision for income taxes to the income tax from applying the statutory rate |
| | | | | | | | | Year Ended June 30, 2026 | | | | Amount | | Percent | | | | | (In thousands) | U.S. Federal Statutory Tax Rate | | $ | 92,601 | | 21.0 | % | State and Local Income Tax Effects, net of federal tax benefit (a) | | | 14,705 | | 3.3 | | Foreign Tax Effects | | | (18) | | - | | Tax Credits | | | | | | | Research and development tax credits | | | (2,866) | | (0.7) | | Changes in Valuation Allowance | | | 31 | | - | | Nontaxable or Nondeductible Items | | | | | | | Stock-based compensation | | | (20,007) | | (4.5) | | Non-deductible compensation | | | 17,329 | | 3.9 | | Other | | | 85 | | - | | Changes in Unrecognized Tax Benefits | | | 583 | | 0.2 | | Other Adjustments | | | 322 | | 0.1 | | Effective Tax Rate | | $ | 102,765 | | 23.3 | % |
(a) State taxes in California, Texas, and Virginia made up the majority (greater than 50 percent) of the tax effect in this category. | | | | | | | | Years Ended June 30, | | | | 2025 | | 2024 | | U.S. federal tax at statutory rates | | 21.0 | % | 21.0 | % | Lobbying | | - | | 0.1 | | Non-deductible compensation | | 2.7 | | 0.8 | | State taxes, net of federal benefit | | 3.4 | | 3.2 | | Research and development tax credits | | (1.2) | | (1.5) | | Effects of foreign operations | | - | | 0.1 | | Reserve for unrecognized tax benefits | | 0.4 | | 0.5 | | Noncontrolling interests | | - | | - | | Other | | (0.2) | | 0.1 | | Stock-based compensation | | (1.7) | | (0.3) | | Provision for income taxes | | 24.4 | % | 24.0 | % |
|
| Schedule of related components of the income tax expense |
| | | | | | | | | | | | Years Ended June 30, | | | 2026 | | 2025 | | 2024 | | | | (In thousands) | Current: | | | | | | | | | | Federal | | $ | 47,321 | | $ | 91,696 | | $ | 52,678 | State | | | 14,213 | | | 17,921 | | | 7,660 | Foreign | | | 1,238 | | | 1,173 | | | 1,254 | Total current | | | 62,772 | | | 110,790 | | | 61,592 | Deferred: | | | | | | | | | | Federal | | | 38,372 | | | (16,047) | | | (667) | State | | | 1,621 | | | (1,736) | | | 3,557 | Total deferred | | | 39,993 | | | (17,783) | | | 2,890 | Total income tax expense | | $ | 102,765 | | $ | 93,007 | | $ | 64,482 |
|
| Schedule of unrecognized tax benefits |
| | | | | | | | | | | | Years Ended June 30, | | | 2026 | | 2025 | | 2024 | | | | (In thousands) | Balance at beginning of the year | | $ | 5,514 | | $ | 4,286 | | $ | 3,156 | Additions for prior year tax positions | | | 277 | | | 486 | | | 591 | Additions for current year tax positions | | | 1,236 | | | 1,635 | | | 1,205 | Reductions for prior year tax positions | | | (1,047) | | | (893) | | | (666) | Balance at end of the year | | $ | 5,980 | | $ | 5,514 | | $ | 4,286 |
|