v3.26.3
Income Taxes (Tables)
 12 Months Ended
Aug. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Tax, Domestic and Foreign
Income before income taxes consisted of the following (in thousands):
Fiscal Year Ended August 31,
202620252024
United States$50,124 $54,936 $47,345 
Foreign (1)
56,375 46,690 44,163 
Income before income taxes$106,499 $101,626 $91,508 
(1)Included in these amounts are income before income taxes for the EIMEA segment of $42.5 million, $34.7 million and $31.4 million for the fiscal years ended August 31, 2026, 2025 and 2024, respectively.
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes consisted of the following (in thousands):
Fiscal Year Ended August 31,
202620252024
Current:
Federal$8,184 $(4,726)$9,559 
State1,178 1,543 820 
Foreign16,056 12,945 12,596 
Total current25,418 9,762 22,975 
Deferred:
United States(342)657 (1,413)
Foreign(923)213 302 
Total deferred(1,265)870 (1,111)
Provision for income taxes$24,153 $10,632 $21,864 
Schedule of Income Taxes Paid, Net of Refunds
Income taxes paid, net of refunds, exceeds 5% of total income taxes paid, net of refunds, in the following jurisdictions for the year ended August 31, 2026:
August 31,
2026
Federal$8,909 
State1,284 
Foreign
United Kingdom
6,821 
China
2,305 
All other foreign
3,398 
Total income taxes paid, net of refunds
$22,717 
Schedule of Deferred Tax Assets and Liabilities
Deferred tax assets and deferred tax liabilities consisted of the following (in thousands):
August 31,
2026		August 31,
2025
Deferred tax assets:
Accrued payroll and related expenses$1,652 $1,451 
Reserves and accruals1,823 1,758 
Research and development expenses1,505 2,078 
Stock-based compensation expense2,521 2,547 
Uniform capitalization2,327 2,020 
Tax credit carryforwards3,934 4,399 
Lease Liability1,100 671 
Other2,714 2,134 
Total gross deferred tax assets17,576 17,058 
Valuation allowance(4,337)(4,552)
Total net deferred tax assets13,239 12,506 
Deferred tax liabilities:
Property and equipment, net(3,026)(3,449)
Withholding taxes(1,320)(736)
Right-of-use Asset(1,162)(637)
Amortization of tax goodwill and intangible assets(14,801)(15,793)
Other(48)(239)
Total deferred tax liabilities(20,357)(20,854)
Net deferred tax liabilities$(7,118)$(8,348)
Schedule of Effective Income Tax Rate Reconciliation A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows (in thousands):
August 31, 2026
Income tax expense% of pre-tax income
Amount computed at U.S. statutory federal tax rate$22,365 21.0 %
State and local taxes, net of federal income tax effect (1)
934 0.9 %
Foreign tax effects
United Kingdom
Statutory tax rate difference between the United Kingdom and the United States1,699 1.6 %
Foreign tax credits(1,554)(1.5)%
Other(439)(0.4)%
All other foreign jurisdictions4,517 4.2 %
Effect of cross-border tax laws
FDII(3,546)(3.3)%
Other341 0.3 %
Tax credits
(839)(0.8)%
Nontaxable or nondeductible items
771 0.7 %
Other, net
(96)(0.1)%
Provision for income taxes$24,153 22.7 %
(1)State taxes in California, Illinois and Pennsylvania contributed to the majority (greater than 50%) of the tax effect in this line item.
As previously disclosed prior to the adoption of ASU 2023-09, a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows (in thousands):
Fiscal Year Ended August 31,
20252024
Amount computed at U.S. statutory federal tax rate$21,341 $19,217 
Effect of foreign operations3,323 3,339 
Net (benefit) from GILTI/FDII(3,339)(2,696)
Uncertain tax positions(8,049)947 
Interest and other true-ups related to uncertain tax positions(3,416)— 
Other772 1,057 
Provision for income taxes$10,632 $21,864 
Schedule of Unrecognized Tax Benefits Roll Forward
Reconciliations of the beginning and ending amounts of the Company’s gross unrecognized tax benefits, excluding interest and penalties, are as follows (in thousands):
Fiscal Year Ended August 31,
20262025
Unrecognized tax benefits – beginning of fiscal year$901 $9,147 
Increases for prior period tax positions9 181 
Increases for current period tax positions182 218 
Expirations of statute of limitations for assessment(201)(8,558)
Settlements with taxing authorities(103)(87)
Unrecognized tax benefits – end of fiscal year$788 $901