Income Taxes (Tables)
|
12 Months Ended |
Jun. 30, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Net Income from Operations before Provision for Income Taxes |
Net income from operations before provision for income taxes is shown below (in thousands):
|
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|
|
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|
|
|
|
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|
Year Ended June 30, |
|
|
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
U.S. |
|
|
$ |
90,631 |
|
|
$ |
21,888 |
|
|
$ |
83,317 |
|
Foreign |
|
|
|
18,891 |
|
|
|
(618 |
) |
|
|
(539 |
) |
|
|
|
$ |
109,522 |
|
|
$ |
21,270 |
|
|
$ |
82,778 |
|
|
| Provision for Income Tax Expense by Jurisdiction and Effective Tax Rate |
The Company files a consolidated federal income tax return based on a June 30 tax year end. The provision for income tax expense by jurisdiction and the effective tax rate are shown below (in thousands):
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|
|
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|
Year Ended June 30, |
|
|
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
Current: |
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
$ |
16,607 |
|
|
$ |
6,663 |
|
|
$ |
14,177 |
|
State and local |
|
|
|
3,891 |
|
|
|
1,228 |
|
|
|
1,847 |
|
Foreign |
|
|
|
8,381 |
|
|
|
1,454 |
|
|
|
419 |
|
|
|
|
$ |
28,879 |
|
|
$ |
9,345 |
|
|
$ |
16,443 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
|
(5,242 |
) |
|
|
(1,884 |
) |
|
|
(2,000 |
) |
State and local |
|
|
|
(1,194 |
) |
|
|
(148 |
) |
|
|
(608 |
) |
Foreign |
|
|
|
(1,536 |
) |
|
|
(1,887 |
) |
|
|
(90 |
) |
|
|
|
|
(7,972 |
) |
|
|
(3,919 |
) |
|
|
(2,698 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
$ |
20,907 |
|
|
$ |
5,426 |
|
|
$ |
13,745 |
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax rate |
|
|
|
19.1 |
% |
|
|
25.5 |
% |
|
|
16.6 |
% |
|
| Schedule of Effective Income Tax Rate Reconciliation |
We adopted ASU 2023-09 prospectively. Pursuant to the requirements of ASU 2023-09, a reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to income before tax for the year ended June 30, 2026 are set forth below (in thousands):
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|
|
|
|
|
|
|
|
Federal income tax provision at statutory rate |
|
|
$ |
23,000 |
|
|
|
21.0 |
% |
State and local tax, net of federal benefit (1) |
|
|
|
2,131 |
|
|
|
1.9 |
% |
Foreign tax effects: |
|
|
|
|
|
|
|
Hong Kong: |
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|
|
|
|
|
|
Tax rate differential |
|
|
|
(933 |
) |
|
|
(0.9 |
%) |
Permanent nondeductible |
|
|
|
2,746 |
|
|
|
2.5 |
% |
Other |
|
|
|
408 |
|
|
|
0.4 |
% |
Other foreign jurisdictions |
|
|
|
617 |
|
|
|
0.6 |
% |
Tax credits |
|
|
|
(3,178 |
) |
|
|
(2.9 |
%) |
Nontaxable or nondeductible items: |
|
|
|
|
|
|
|
Share-based compensation |
|
|
|
(2,371 |
) |
|
|
(2.2 |
%) |
Adjustments related to acquisitions |
|
|
|
(869 |
) |
|
|
(0.8 |
%) |
Other permanent items |
|
|
|
(436 |
) |
|
|
(0.4 |
%) |
Other |
|
|
|
(208 |
) |
|
|
(0.2 |
%) |
|
|
|
$ |
20,907 |
|
|
|
19.1 |
% |
(1)California, New York, and Pennsylvania accounted for greater than 50% of the state and local income tax effect for the year ended June 30, 2026. As previously disclosed for the years ended June 30, 2025 and 2024, prior to the adoption of ASU 2023-09, the items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective tax rate were as follows (in thousands):
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|
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|
Year Ended June 30, |
|
|
2025 |
|
2024 |
|
Federal income tax provision at statutory rate |
|
$ |
4,467 |
|
$ |
17,383 |
|
State and local tax, net of federal benefit |
|
|
772 |
|
|
1,188 |
|
Adjustment related to acquisitions |
|
|
308 |
|
|
(4,544) |
|
Foreign derived intangible income |
|
|
(305) |
|
|
(93) |
|
Stock-based compensation |
|
|
(551) |
|
|
(1,095) |
|
State rate change |
|
|
135 |
|
|
(231) |
|
Permanent adjustments |
|
|
1,064 |
|
|
509 |
|
Foreign rate differential |
|
|
(304) |
|
|
66 |
|
Foreign withholding taxes |
|
|
— |
|
|
377 |
|
Other |
|
(160) |
|
185 |
|
|
|
$ 5,426 |
|
$ 13,745 |
|
|
| Summary of Income Taxes Paid, Net of Refunds |
The following table summarizes income taxes paid, net of refunds for the year ended June 30, 2026 (in thousands):
|
|
|
|
|
|
Federal (United States) |
|
|
$ |
19,475 |
|
State |
|
|
|
3,012 |
|
Foreign: |
|
|
|
|
Hong Kong |
|
|
|
1,889 |
|
Canada |
|
|
|
1,783 |
|
Other |
|
|
|
53 |
|
|
|
|
$ |
26,212 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The schedule of deferred taxes presented below summarizes the components of deferred taxes that have been classified as deferred tax assets and liabilities related to taxable and deductible temporary differences (in thousands):
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|
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|
June 30, 2026 |
|
|
June 30, 2025 |
|
Accruals and reserves |
|
$ |
2,891 |
|
|
$ |
1,606 |
|
Lease liabilities |
|
|
5,900 |
|
|
|
4,548 |
|
Share-based compensation |
|
|
1,050 |
|
|
|
1,055 |
|
State tax accrual |
|
|
224 |
|
|
|
72 |
|
Net operating loss carryforwards |
|
|
5,476 |
|
|
|
1,371 |
|
Business interest expense disallowance |
|
|
751 |
|
|
|
1,375 |
|
Capitalized costs |
|
|
970 |
|
|
|
633 |
|
Investment in partnership |
|
|
3,275 |
|
|
|
— |
|
Other |
|
|
234 |
|
|
|
285 |
|
Deferred tax assets |
|
|
20,771 |
|
|
|
10,945 |
|
Less: valuation allowances |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
Deferred tax assets after valuation allowances |
|
|
20,771 |
|
|
|
10,945 |
|
|
|
|
|
|
|
|
Intangible assets |
|
|
(17,507 |
) |
|
|
(19,432 |
) |
Fixed assets |
|
|
(9,033 |
) |
|
|
(1,544 |
) |
Earnings from equity method investment |
|
|
(1,460 |
) |
|
|
(2,334 |
) |
Investment in partnership |
|
|
— |
|
|
|
(1,553 |
) |
Right of use assets |
|
|
(5,843 |
) |
|
|
(4,368 |
) |
Other |
|
|
(1,543 |
) |
|
|
(49 |
) |
Deferred tax liabilities |
|
|
(35,386 |
) |
|
|
(29,280 |
) |
|
|
|
|
|
|
|
Net deferred tax liability |
|
$ |
(14,615 |
) |
|
$ |
(18,335 |
) |
|
| Schedule of Unrecognized Tax Benefits |
Below is a reconciliation of net unrecognized tax benefits (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Year Ended June 30, |
|
|
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
Beginning balance |
|
|
$ |
594 |
|
|
$ |
223 |
|
|
$ |
146 |
|
Reductions due to lapse of statute of limitations |
|
|
|
(9 |
) |
|
|
(15 |
) |
|
|
(8 |
) |
Additions as a result of acquired tax positions |
|
|
|
— |
|
|
|
386 |
|
|
|
85 |
|
|
|
|
$ |
585 |
|
|
$ |
594 |
|
|
$ |
223 |
|
|