v3.26.1
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
The following is a summary of our income (loss) before income taxes by geography:
Year Ended June 30,
202620252024
Domestic (Ireland)$(72,850)$(130,469)$(211,304)
Foreign225,742 227,428 339,750 
Income before income taxes$152,892 $96,959 $128,446 
The components of the (benefit) provision for income taxes are as follows:
Year Ended June 30,
202620252024
Current tax expense (benefit):
Federal (Ireland)$715 $(8,831)$(2,846)
Foreign 50,751 51,357 45,668 
Total Current tax expense (benefit)51,466 42,526 42,821 
Deferred tax expense(benefit):
Federal (Ireland)— — — 
Foreign4,312 41,581 (92,183)
Total Deferred tax expense (benefit)4,312 41,581 (92,183)
Income tax expense (benefit)$55,778 $84,107 $(49,362)
We adopted Accounting Standards Update No. 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" (ASU 2023-09) for the annual period ended June 30, 2026 on a retrospective basis for all periods presented. In accordance with ASU 2023-09, the following is a reconciliation of the standard federal statutory tax rate in our country of domicile, which is the Irish trading rate of 12.5%, and our effective tax rate:
Year Ended June 30,
202620252024
Irish federal statutory tax rate$19,112 12.5 %$12,120 12.5 %$16,056 12.5 %
Foreign tax effects
Australia
Changes in valuation allowances(3,166)(2.1)%(638)(0.7)%(427)(0.3)%
Other(575)(0.4)%1,136 1.2 %462 0.4 %
Bermuda
Changes in valuation allowances(2,360)(1.5)%4,721 4.9 %— — %
Other406 0.3 %(1,350)(1.4)%(262)(0.2)%
Brazil
Statutory tax rate difference between Brazil and Ireland(2,063)(1.3)%(1,698)(1.8)%(1,212)(0.9)%
Changes in valuation allowances2,920 1.9 %2,667 2.8 %1,904 1.5 %
Other342 0.2 %18 — %13 — %
Canada
State and local income tax, net of federal (national) income tax effect (1)1,367 0.9 %1,581 1.6 %1,437 1.1 %
Other425 0.3 %798 0.8 %1,300 1.0 %
France
Changes in valuation allowances(854)(0.6)%(50)(0.1)%1,061 0.8 %
Other313 0.2 %136 0.1 %(679)(0.5)%
Germany
Year Ended June 30,
202620252024
Statutory tax rate difference between Germany and Ireland1,121 0.7 %1,534 1.6 %1,843 1.4 %
State and local income tax, net of federal (national) income tax effect (2)5,720 3.7 %7,597 7.8 %8,484 6.6 %
Other(669)(0.4)%974 1.0 %(1,338)(1.0)%
Italy
Statutory tax rate difference between Italy and Ireland3,367 2.2 %5,861 6.0 %5,522 4.3 %
State and local income tax, net of federal (national) income tax effect (3)1,850 1.2 %2,488 2.6 %1,558 1.2 %
Other(1,547)(1.0)%2,081 2.1 %723 0.6 %
Japan
Statutory tax rate difference between Japan and Ireland(138)(0.1)%3,151 3.2 %(591)(0.5)%
Changes in valuation allowances388 0.3 %(6,526)(6.7)%1,455 1.1 %
Other(172)(0.1)%1,284 1.3 %(510)(0.4)%
The Netherlands
Statutory tax rate difference between The Netherlands and Ireland926 0.6 %1,410 1.5 %2,617 2.0 %
Other2,449 1.6 %(801)(0.8)%117 0.1 %
Spain
Statutory tax rate difference between Spain and Ireland821 0.5 %1,074 1.1 %1,010 0.8 %
Other582 0.4 %(236)(0.2)%(239)(0.2)%
Switzerland
Statutory tax rate difference between Switzerland and Ireland(4,092)(2.7)%(5,266)(5.4)%(4,726)(3.7)%
State and local income tax, net of federal (national) income tax effect (4)10,754 7.0 %36,586 37.7 %(83,969)(65.4)%
Changes in valuation allowances(10)— %13 — %(19,184)(14.9)%
Other(479)(0.3)%789 0.8 %(94)(0.1)%
United States
Statutory tax rate difference between the United States and Ireland(299)(0.2)%(1,830)(1.9)%(1,918)(1.5)%
Tax credits
Research and development tax credits(2,849)(1.9)%(1,462)(1.5)%(3,146)(2.4)%
Other(4)— %(18)— %(27)— %
Changes in valuation allowances(1,565)(1.0)%235 0.2 %11,859 9.2 %
Nontaxable or nondeductible items
U.S. IRC Section 162(m)484 0.3 %2,666 2.7 %361 0.3 %
Stock compensation windfall(99)(0.1)%(487)(0.5)%(1,577)(1.2)%
Interest expense141 0.1 %1,887 1.9 %— — %
Royalty expense1,148 0.8 %1,620 1.7 %— — %
Other2,078 1.4 %513 0.5 %162 0.1 %
Other725 0.5 %(660)(0.7)%(1,167)(0.9)%
Other foreign jurisdictions5,648 3.7 %4,337 4.5 %3,636 2.8 %
Effect of cross-border tax laws
Tax on repatriated earnings— — %— — %7,420 5.8 %
Tax credits
Foreign tax credits— — %6,468 6.7 %(31,795)(24.8)%
Changes in valuation allowances(424)(0.3)%(4,252)(4.4)%27,334 21.3 %
Nontaxable or nondeductible items
Interest expense5,559 3.6 %9,392 9.7 %7,043 5.5 %
Stock compensation1,507 1.0 %1,392 1.4 %2,039 1.6 %
Intercompany debt forgiveness— — %2,172 2.2 %— — %
Year Ended June 30,
202620252024
Other2,213 1.4 %910 0.9 %794 0.6 %
Changes in unrecognized tax benefits3,808 2.5 %(9,804)(10.1)%303 0.2 %
Other adjustments969 0.6 %(426)(0.4)%(3,014)(2.3)%
Effective income tax rate$55,778 36.5 %$84,107 86.7 %$(49,362)(38.4)%
_____________________
(1) Ontario accounted for the majority (greater than 50 percent) of the tax effect in this category for all periods presented.
(2) Trade tax for Berlin and Backnang accounted for the majority (greater than 50 percent) of the tax effect in this category for all periods presented.
(3) Imposta Regionale sulle Attivita Produttive (IRAP) for Veneto accounted for the majority (greater than 50 percent) of the tax effect in this category for all periods presented.
(4) Cantonal tax for Zurich accounted for the majority (greater than 50 percent) of the tax effect in this category for all periods presented. This includes changes in valuation allowances of $26,804 and $(86,581) for fiscal years 2025 and 2024, respectively.

For the year ended June 30, 2026, our effective tax rate was above the Irish federal statutory tax rate primarily due to generally higher tax rates in other jurisdictions in which we operate, including state and local tax rates, and non-deductible interest expense.

For the year ended June 30, 2026, our effective tax rate was 36.5% as compared to the prior year effective tax rate of 86.7%. The decrease in our effective tax rate as compared to the prior year is primarily due to changes in the Swiss valuation allowance year-over-year as discussed below and reduced losses in certain jurisdictions for which we cannot recognize a tax benefit. Our fiscal year 2025 effective tax rate was higher than fiscal year 2024 primarily due to changes in the Swiss valuation allowance year-over-year as discussed below.
In the year ended June 30, 2025 we recorded a change in estimate for our Swiss valuation allowance on Swiss deferred tax assets related to Swiss tax reform benefits recognized in fiscal year 2020. We recognized tax expense of $26,804 to adjust the partial valuation allowance in Switzerland to reflect the current estimated usage of these tax assets. We considered all available evidence, including the near-term impact of recent product-mix shifts in the VistaPrint segment, the expectation of the timing of future taxable income, and the expiration of the tax assets. This is compared to a tax benefit of $105,765 in the year ended June 30, 2024 to partially release the full valuation allowance previously recorded in the quarter ended December 31, 2022. As some of these tax assets will expire prior to when they can be used, a partial valuation allowance remained against those expected to expire unused. The prior year release was based on cumulative income in Switzerland plus current period and forecasted profits resulting in the ability to utilize some of these tax assets prior to their expiration. We continue in a partial valuation allowance position at June 30, 2026.
Significant components of our deferred income tax assets and liabilities consisted of the following at June 30, 2026 and 2025:
June 30, 2026June 30, 2025
Deferred tax assets:
Swiss tax-amortizable goodwill$131,413 $141,872 
Net operating loss carryforwards52,417 59,476 
Leases43,212 30,377 
Depreciation and amortization4,010 4,352 
Accrued expenses16,681 14,117 
Share-based compensation19,134 18,809 
Tax credit and other carryforwards
63,627 61,626 
Derivative financial instruments7,765 10,603 
U.S. Internal Revenue Code Section 174 capitalization
6,630 6,254 
Interest limitation carryforwards
33,737 29,796 
Other2,403 996 
Subtotal381,029 378,278 
Valuation allowance(236,293)(248,367)
Total deferred tax assets144,736 129,911 
Deferred tax liabilities:
Depreciation and amortization(54,809)(42,237)
Leases(41,672)(28,527)
Tax on unremitted earnings(9,363)(9,045)
Derivative financial instruments(4,619)(2,116)
Other(7,830)(10,208)
Total deferred tax liabilities(118,293)(92,133)
Net deferred tax assets$26,443 $37,778 
In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some or all of the deferred tax assets will not be realized. We have recorded a partial valuation allowance of $77,091 against the Swiss tax-amortizable goodwill deferred tax asset, which we can only benefit from through December 31, 2029 under our Swiss tax ruling. In addition, we have recorded valuation allowances of $48,219 against deferred tax assets related to tax losses in certain jurisdictions (mainly Bermuda, Brazil, Ireland and the United Kingdom), $33,737 against interest limitation carryforwards (mainly the Netherlands and the U.S.), and $30,516 against Irish foreign tax credits, for which management has determined that it is more likely than not that these will not be realized. Many of the tax losses, the interest limitation carryforwards and the foreign tax credit carryforwards do not expire, but management has determined it is more likely than not that these will not be utilized. We will continue to assess the realization of the deferred tax assets based on operating results on a quarterly basis.

A reconciliation of the beginning and ending amount of the valuation allowance for the year ended June 30, 2026 is as follows:
Balance at June 30, 2025
$248,367 
Charges to earnings (1)(8,155)
Charges to other accounts (2)(3,919)
Balance at June 30, 2026
$236,293 
_________________
(1) Amount is primarily related to tax loss expirations in certain jurisdictions (mainly Japan), a release of the valuation allowance in Australia, and unrealized gains on derivative financial instruments included in comprehensive income, offset by increased losses in certain jurisdictions (mainly Brazil).
(2) Amount is primarily related to unrealized gains on derivative financial instruments included in accumulated other comprehensive loss.
As of June 30, 2026, we had tax-effected U.S. federal and state net operating losses of $276 and $1,399, respectively, that expire on various dates from fiscal year 2031 through fiscal year 2046 or with unlimited carryforward. We also had tax-effected non-U.S. net operating loss carryforwards of $50,742, with amounts expiring on various dates through fiscal year 2033 or having unlimited carryforward. In addition, we had $31,858 of tax credit carryforwards primarily related to U.S. federal and state research and development credits, which expire on various
dates beginning in fiscal year 2030 or have unlimited carryforward. Lastly, we had $30,516 of Irish foreign tax credits with unlimited carryforward. The benefits of these carryforwards are dependent upon the generation of taxable income in the jurisdictions in which they arose.
We consider the following factors, among others, in evaluating our plans for indefinite reinvestment of our subsidiaries’ earnings: (i) the forecasts, budgets, and financial requirements of both our parent company and its subsidiaries, both for the long term and for the short term; (ii) the ability of Cimpress plc to fund its operations and obligations with earnings from other businesses within the global group without incurring substantial tax costs; and (iii) the tax consequences of any decision to reinvest earnings of any subsidiary. If, in the future, we decide to repatriate the undistributed earnings from certain subsidiaries that are considered indefinitely reinvested in the form of dividends or otherwise, we could be subject to withholding taxes payable in the range of $20,000 to $22,000 at that time. A cumulative deferred tax liability of $9,363 has been recorded attributable to undistributed earnings that we have deemed are not indefinitely reinvested.  
A reconciliation of the gross beginning and ending amount of unrecognized tax benefits is as follows:
Balance June 30, 2023$15,624 
Additions based on tax positions related to the current tax year450 
Additions based on tax positions related to prior tax years405 
Reductions based on tax positions related to prior tax years(527)
Reductions due to audit settlements(264)
Reductions due to lapse of statute of limitations(1,021)
Cumulative translation adjustment(13)
Balance June 30, 2024$14,654 
Additions based on tax positions related to the current tax year5,272 
Additions based on tax positions related to prior tax years51 
Reductions based on tax positions related to prior tax years(289)
Reductions due to audit settlements(237)
Reductions due to lapse of statute of limitations(7,506)
Cumulative translation adjustment(1)
Balance June 30, 2025$11,944 
Additions based on tax positions related to the current tax year388 
Additions based on tax positions related to prior tax years4,763 
Reductions based on tax positions related to prior tax years(1,079)
Reductions due to audit settlements(127)
Reductions due to lapse of statute of limitations(460)
Cumulative translation adjustment19 
Balance June 30, 2026$15,448 
    
For the year ended June 30, 2026, the amount of unrecognized tax benefits (exclusive of interest) that, if recognized, would impact the effective tax rate is $2,060. We recognize interest and, if applicable, penalties related to unrecognized tax benefits in income tax expense. The interest and penalties recognized as of years ended June 30, 2026, 2025, and 2024 were $116, $17, and $2,394, respectively. We believe we have appropriately provided for all tax uncertainties.
    
We conduct business in a number of tax jurisdictions and, as such, are required to file income tax returns in multiple jurisdictions globally. The fiscal years 2021 through 2026 remain open to examination in the various tax jurisdictions in which we file. In addition, for certain tax attribute carryforwards originating in fiscal years 2014 through 2026, the statute of limitations will be dependent on the year in which the attributes are utilized.

We are currently under income tax audit in certain jurisdictions globally. We believe that our income tax reserves are adequately maintained taking into consideration both the technical merits of our tax return positions and ongoing developments in our income tax audits. However, the final determination of our tax return positions, if
audited, is uncertain, and therefore there is a possibility that final resolution of these matters could have a material impact on our results of operations or cash flows.

The following table presents the net income taxes paid, disaggregated by jurisdiction:
Year Ended June 30,
202620252024
Federal (Ireland)$20 $26 $26 
Foreign
Canada*3,579 3,714 
Germany20,725 12,306 21,975 
India3,071 2,651  *
Italy13,529 11,599 9,065 
The Netherlands4,664 4,283 6,177 
Switzerland4,565 **
United States*(9,350) *
Other foreign12,118 8,194 8,457 
Total income taxes paid$58,692 $33,288 $49,414 
* Jurisdiction is below 5% of the total for the period