v3.26.1
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of net loss before income taxes are as follows (in thousands):
Year Ended June 30,
202620252024
U.S.$(48,232)$(30,981)$(34,220)
Foreign10,996 14,843 4,314 
Total$(37,236)$(16,138)$(29,906)
The income tax expense consists of the following (in thousands):
Year Ended June 30,
202620252024
Current:
Federal$— $— $— 
State293 253 1,307 
Foreign4,858 1,378 830 
5,151 1,631 2,137 
Deferred:
Federal— — — 
State(27)(84)34 
Foreign(1,050)532 (56)
(1,077)448 (22)
Income tax expense$4,074 $2,079 $2,115 
The income tax expense (benefit) differs from the amount computed by applying the statutory federal income tax rate after the adoption of ASU 2023-09 as follows (in thousands):
Year Ended June 30, 2026
Amount%
US federal statutory tax rate (country of domicile)$(7,820)21 %
State & local income taxes, net of federal effect (a)
(413)1 %
Foreign tax effects
Germany
Local Taxes735 (2)%
Other310 (1)%
Netherlands428 (1)%
Other foreign jurisdiction25 — %
Changes in tax laws or rates in current period— — %
Cross border tax laws
Global intangible low-taxed income
1,785 (5)%
Other
255 (1)%
Tax credits
Research and development (“R&D”) credits
(6,216)17 %
Changes in valuation allowance5,622 (15)%
Nontaxable or nondeductible items
Nondeductible executive compensation
6,780 (18)%
Stock-based compensation(191)1 %
Other291 (1)%
Changes in unrecognized tax benefits2,483 (7)%
Income tax expense / Effective tax rate$4,074 (11)%
(a) The states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California, New York and New York City.
The income tax expense differs from the amount computed by applying the statutory federal income tax rate prior to the adoption of ASU 2023-09 as follows (in thousands):
Year Ended June 30,
20252024
Federal tax expense (benefit):
At statutory rate$(3,389)$(6,280)
State tax, net of federal benefit205 935 
Research and development credits(2,890)(2,943)
Stock-based compensation(29,058)(9,364)
Acquisition-related transaction costs(61)162 
Change in valuation allowance37,771 19,448 
Other(499)157 
Income tax expense$2,079 $2,115 
Deferred tax assets and liabilities are as follows (in thousands):
Year Ended June 30,
20262025
Deferred tax assets:
Nondeductible accrued expenses$4,106 $2,614 
Net operating loss carryforwards51,207 47,217 
Research and development credits19,265 13,773 
Section 174 capitalization72,537 74,073 
Stock-based compensation7,952 6,594 
Interest carryforwards5,846 10,828 
Lease liability5,528 — 
Intangible assets
913 — 
Deferred revenue240 201 
Other43 36 
Valuation allowance(149,209)(144,693)
Total deferred tax assets18,428 10,643 
Deferred tax liabilities:
Deferred sales commission(8,728)(7,133)
Fixed assets(5,035)(4,115)
Right-of-use assets(4,745)— 
Intangible assets— (551)
Total deferred tax liabilities(18,508)(11,799)
Net deferred tax liabilities$(80)$(1,156)
As of June 30, 2026, the Company has federal and state net operating loss carryforwards of approximately $194.9 million and $171.8 million, respectively, which expire beginning in fiscal year 2034 for federal and fiscal year 2027 for certain states.
As of June 30, 2026, the Company has federal and state research credits carryforwards of approximately $22.0 million and $9.3 million, respectively, expiring beginning in fiscal year 2027 for federal. The state credits can be carried forward indefinitely.
Federal and state tax laws impose substantial restrictions on the utilization, for tax purposes, of net operating loss and credit carryforwards in the event of an ownership change as defined in Section 382 of the Internal Revenue Code. Accordingly, the Company’s ability to utilize these carryforwards may be limited as a result of such ownership change. Such a limitation could result in the expiration of carryforwards before they are utilized.
In assessing the need for a valuation allowance, the Company considered all available evidence both positive and negative, including historical levels of income, legislative developments, expectations and risks associated with estimates of future taxable income, and prudent and feasible tax planning strategies.
As a result of this analysis as of June 30, 2026 and 2025, the Company has determined that it is more likely than not that it will not realize the benefits of its deferred tax assets due to continuing losses, and therefore has recorded a valuation allowance of $149.2 million and $144.7 million, respectively, to reduce the carrying value of its deferred tax assets.
At June 30, 2026, the Company asserts that it will not permanently reinvest its foreign earnings outside the U.S. The Company anticipates that the cash from its foreign earnings may be used to fund operations domestically, settle a portion of the outstanding debt obligations, or used for other business needs. The accumulated undistributed earnings generated by its foreign subsidiaries was approximately $52.7 million. Substantially all of these earnings will not be taxable upon repatriation to the U.S. since under the Tax Cuts and Jobs Act, they will be treated as previously taxed income or benefit from the dividends received deduction. The withholding taxes related to the distributable earnings of the Company’s foreign subsidiaries are not expected to be material.
It is the Company’s policy to recognize interest and penalties related to income tax matters in income tax expense. As of June 30, 2026 and 2025, the Company had no accrued interest and penalties related to uncertain tax positions.
The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions and various foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities. The Company is currently under audit by the Internal Revenue Service and by the German tax authorities. Our tax returns remain open to examination as follows: U.S. federal and states, all tax years; and significant foreign jurisdictions, generally 2020 through 2025.
The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):
June 30,
202620252024
Beginning of the year, unrecognized tax benefits$8,522 $6,876 $5,311 
Increases, prior year tax positions653 119 173 
Increases, current year tax positions1,830 1,527 1,392 
End of the year, unrecognized tax benefits$11,005 $8,522 $6,876 
As of June 30, 2026 and 2025, unrecognized tax benefits approximated $11.0 million and $8.5 million, respectively, of which none of the tax benefits would affect the effective tax rate if recognized. There are no interest and penalties accrued as of June 30, 2026.
Cash paid for income taxes, net of refunds received, for the fiscal year ended June 30, 2026 is as follows (in thousands):
Year Ended June 30, 2026
Federal$— 
State
     New York144 
     New York City86 
     Illinois(111)
     Other162 
Foreign
     Australia69 
     Netherlands612 
     United Kingdom196 
     Portugal102 
     Other70 
Total cash paid for income taxes, net of refunds received$1,330