Income Taxes (Tables)

12 Months Ended

Jun. 30, 2026

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes were as follows (in thousands):


	Fiscal Year Ended June 30,
	2026		2025		2024
US	$	26,415	$	4,907	$	(31,110	)
Foreign		4,795		726		714
Total	$	31,210	$	5,633	$	(30,396	)

Components of the Provision for (Benefit from) Income Taxes

The components of the provision for (benefit from) income taxes were as follows (in thousands):


	Fiscal Year Ended June 30,
	2026			2025			2024
Current:
Federal	$	42		$	—		$	—
State		172			298			125
Foreign		605			337			305
Total current provision for income taxes		819			635			430
Deferred:
Federal		(44,081	)		396			572
State		(6,976	)		69			(104	)
Foreign		213			(174	)		37
Total deferred (benefit from) provision for income taxes		(50,844	)		291			505
Total (benefit from) provision for income taxes	$	(50,025	)	$	926		$	935

The following table represents a reconciliation of the statutory federal rate and the Company’s effective tax rate (after the adoption of ASU 2023-09) for the year ended June 30, 2026 (in thousands):


	Fiscal Year Ended June 30, 2026
	Amount			Percentage
Income taxes at statutory federal rate	$	6,554			21.0	%
State and local taxes, net of federal income tax effect		(6,883	)		(22.0	)
Foreign tax effects
Switzerland:
Other		(411	)		(1.3	)
Other foreign		134			0.4
Effect of cross-border tax laws
Global intangible low-taxed income		1,427			4.6
Tax credits
R&D credit		(1,557	)		(5.0	)
Changes in valuation allowance		(53,022	)		(169.9	)
Nontaxable or nondeductible items
Other nontaxable or nondeductible items		24			0.1
Stock based compensation		382			1.2
Section 162(m) compensation limitation		2,538			8.1
Transaction costs		572			1.8
Changes in unrecognized tax benefits		142			0.5
Other adjustments		75			0.2
Effective income tax (benefit)	$	(50,025	)		(160.3	%)

California, Florida, and New York make up the majority (greater than 50%) of the state income tax expense, net of federal income tax effect, category.

Reconciliation Between Statutory Federal Income Tax Expense and Effective Income Tax Expense


	Fiscal Year Ended June 30, 2026
	Amount			Percentage
Income taxes at statutory federal rate	$	6,554			21.0	%
State and local taxes, net of federal income tax effect		(6,883	)		(22.0	)
Foreign tax effects
Switzerland:
Other		(411	)		(1.3	)
Other foreign		134			0.4
Effect of cross-border tax laws
Global intangible low-taxed income		1,427			4.6
Tax credits
R&D credit		(1,557	)		(5.0	)
Changes in valuation allowance		(53,022	)		(169.9	)
Nontaxable or nondeductible items
Other nontaxable or nondeductible items		24			0.1
Stock based compensation		382			1.2
Section 162(m) compensation limitation		2,538			8.1
Transaction costs		572			1.8
Changes in unrecognized tax benefits		142			0.5
Other adjustments		75			0.2
Effective income tax (benefit)	$	(50,025	)		(160.3	%)

California, Florida, and New York make up the majority (greater than 50%) of the state income tax expense, net of federal income tax effect, category.

For the years ended June 30, 2025 and June 30, 2024, prior to the adoption of ASU 2023-09, the reconciliation between the statutory federal income tax expense and the Company’s effective income tax expense was as follows (in thousands):


	Fiscal Year Ended June 30,
	2025			2024
Statutory federal income tax expense (benefit)	$	1,180		$	(6,359	)
States taxes, net of federal benefit		(191	)		(1,553	)
Foreign rate differential		(82	)		106
Stock-based compensation (benefit) expense		(3,148	)		25
Change in valuation allowance		1,618			8,113
Research and development credits		(2,441	)		(1,593	)
Disqualified compensation expense		3,142			1,363
Uncertain tax position		696			490
Expired attributes		155			188
Foreign deferred adjustment		—			(6	)
Other		(3	)		161
Effective income tax expense	$	926		$	935

Schedule of Cash Income Taxes Paid

The amounts of cash income taxes paid by the Company are as follows (in thousands):


	June 30, 2026
Federal	$	15
State		244
Foreign
Switzerland		1,542
India		243
Other		34
Total		2,078

Components of Noncurrent Deferred Tax Assets and Liabilities, Net

The components of the noncurrent deferred tax assets and liabilities, net were as follows (in thousands):


	June 30,
	2026			2025
Noncurrent deferred tax assets:
Reserves and accruals	$	1,201		$	1,222
Stock-based compensation expense		5,135			4,626
Net operating loss		20,277			27,591
Fixed assets		507			378
Tax credits		19,531			17,680
Operating lease liabilities		1,561			2,111
Research and development capitalized cost		14,517			19,144
Contingent consideration liability		2,707			3,266
Other		669			708
Total noncurrent deferred tax assets		66,105			76,726
Less: valuation allowance — long-term		(8,726	)		(69,287	)
Total noncurrent deferred tax assets, net of valuation allowance		57,379			7,439

Noncurrent deferred tax liabilities:
Intangibles		(13,436	)		(9,190	)
Operating lease right-of-use assets		(1,401	)		(1,962	)
Total noncurrent deferred tax liabilities		(14,837	)		(11,152	)

Net deferred tax assets (liabilities)	$	42,542		$	(3,713	)

The Company has a net deferred tax asset balance of $47.3 million and a net deferred tax liability balance of $4.8 million as of June 30, 2026 within the assets and liabilities, noncurrent on the Company’s consolidated balance sheet. As of 2025, the Company had a deferred tax liability of $3.7 million included within other liabilities, noncurrent on the Company’s consolidated balance sheet. In 2026, the Company had a net deferred tax asset primarily related to net operating loss carryforwards, tax credits and capitalized research expenditures and a net deferred tax liability related to the intangible basis difference with respect to the acquisition of HomeBuddy. In 2025, the net deferred tax liability is related to indefinite lived deferred tax liabilities unable to be offset with deferred tax assets. The Company evaluated the need for a valuation allowance by considering among other things, the nature, frequency and severity of current and cumulative losses, reversal of taxable temporary differences, tax planning strategies, forecasts of future profitability, and the duration of statutory carryforward periods. In the second quarter of fiscal year 2026, due to the preponderance of positive evidence, including the Company’s cumulative profit before taxes and future forecasts of continued profitability in the United States, the Company determined that sufficient positive evidence existed to conclude that substantially all of its valuation allowance was no longer needed. Accordingly, the Company released the valuation allowance for the majority of its federal and state deferred tax assets. The Company continues to maintain a valuation allowance related to its deferred tax assets for its capital loss carryforwards, California research and development tax credits and foreign net operating losses. If there are unfavorable changes to actual operating results or to projections of future income, the Company may determine that it is more likely than not that such deferred tax assets may not be realizable. The Company has a valuation allowance of approximately $8.7 million and $69.3 million as of June 30, 2026 and 2025

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits was as follows (in thousands):


	Fiscal Year Ended June 30,
	2026		2025		2024
Balance at beginning of the year	$	7,520	$	6,644	$	6,030
Gross increases - current period tax positions		782		839		654
Gross decreases - prior period tax positions		—		—		(40	)
Gross increases - prior period tax positions		100		37		—
Balance at end of the year	$	8,402	$	7,520	$	6,644

The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the Company’s provision for (benefit from) income taxes. As of June 30, 2026, the Company has accrued $1.8 million for interest and penalties related to the unrecognized tax benefits. The balance of interest and penalties is recorded as other liabilities, noncurrent on the Company’s consolidated balance sheet