Income Taxes (Tables)

12 Months Ended

Jun. 30, 2026

Domestic and foreign components of income (loss)

The domestic and foreign components of income before taxes are:


	Year Ended June 30,
	2026		2025		2024
	(in thousands)
U.S. operations	$	11,311	$	8,229	$	9,079
Non-U.S. operations	(46,942)		(36,025)		(11,722)
Net loss before income taxes	$	(35,631)	$	(27,796)	$	(2,643)

Provision for (benefit from) income taxes

The provision (benefit) for income taxes is comprised of:


	Year Ended June 30,
	2026		2025		2024
	(in thousands)
U.S. federal taxes:
Current	$	1,002	$	721	$	485
Deferred	(445)		190		1,652
Non-U.S. taxes:
Current	17,702		3,972		3,187
Deferred	(10,793)		(13,502)		(1,669)
State taxes, net of federal benefit:
Current	2		(6)		(6)


Total provision (benefit) for income taxes	$	7,468	$	(8,625)	$	3,649

Effective income tax rate reconciliation


	Year Ended June 30,
	2025		2024
United States statutory rate	21.0	%	21.0	%
Stock-based compensation	(0.3)		(3.7)
Foreign taxes, net	(38.9)		(186.9)
Outside basis difference on equity method investment	45.1		27.4
Tax credits	7.7		86.2
Non-deductible expenses	(1.0)		(6.9)
Tax exempt income	—		2.8

Non-deductible executive compensation	(6.0)		(78.6)
Foreign derived intangible income deduction	2.0		—
Other	1.4		0.6
	31.0	%	(138.1)	%

The reconciliation of the effective tax rate for income taxes from the federal statutory rate were as follows (in thousands, except percentages):


	Year Ended June 30, 2026
	Amount (in thousands)		Percentages
Tax at federal statutory rate	$	(7,482)	21.00	%
State and local income tax, net of federal (national) income tax effect *	2		(0.01)	%
Foreign tax effects:
Cayman - foreign rate differential between Cayman and U.S.	12,925		(36.28)	%
China
Withholding tax	2,639		(7.41)	%
Outside basis difference on equity method investment	930		(2.61)	%
Other	193		(0.54)	%
Hong Kong
Hong Kong - Foreign rate differential between Hong Kong and U.S.	(460)		1.29	%
Other	405		(1.14)	%
India
Withholding tax	395		(1.11)	%
Other	(2)		0.01	%
Other foreign jurisdictions	(140)		0.39	%
Effect of cross-border tax laws
FDII	(610)		1.73	%
Tax credits
Federal research and development credit	(2,324)		6.52	%
Nontaxable or nondeductible items
Non-deductible compensation	972		(2.73)	%
Other	203		(0.57)	%
Changes in unrecognized tax benefits (report all jurisdictions)	(178)		0.50	%
Provision for income taxes	$	7,468	(20.96)	%

*California and Oregon make up the majority of state tax expense in this category

Components of deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows:


	June 30,
	2026		2025
	(in thousands)
Deferred tax assets:
Accrued compensation	$	2,715	$	2,327
Net operating loss carryforwards	—		—
Depreciation	8,002		7,210
Tax credits	17,355		16,957
Operating lease liabilities	3,299		3,953
Capitalized R&D costs	1,016		1,302
Accruals and reserves	495		434
Total deferred tax assets	32,882		32,183
Valuation allowance	(10,071)		(8,751)
Total deferred tax assets, net of valuation allowance	22,811		23,432
Deferred tax liabilities:
Depreciation and amortization	(17,275)		(18,538)
Right of use assets	(3,090)		(3,724)
Investments	(5,752)		(13,763)
Total deferred tax liabilities	(26,117)		(36,025)
Net deferred tax liabilities	$	(3,306)	$	(12,593)

Schedule of deferred tax assets and liabilities, current and noncurrent

The breakdown between deferred tax assets and liabilities is as follows:


	June 30,
	2026		2025
	(in thousands)

Deferred tax assets	$	8,630	$	599
Deferred tax liabilities	(11,936)		(13,192)

Net deferred tax liabilities	$	(3,306)	$	(12,593)

Unrecognized tax benefits rollforward

A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2023 to June 30, 2026 is as follows:


	Year Ended June 30,
	2026		2025		2024
	(in thousands)
Balance at beginning of year	$	10,742	$	10,088	$	9,335
Additions based on tax positions related to the current year	825		826		764
Reductions based on tax positions related to prior years	(2)		(5)		(11)
Reductions due to lapse of applicable statute of limitations	(178)		(167)		—

Balance at end of year	$	11,387	$	10,742	$	10,088

Schedule of Cash Flow, Supplemental Disclosures

The following table presents the net cash paid by the Company for income taxes during the year ended June 30, 2026.


	Dollars (in thousands)
Domestic
U.S. Federal	$	1,220
U.S. State	—

Foreign
China	14,959
Other	1,306
	$	17,485