v3.26.3
Derivative Instruments
 12 Months Ended
Jul. 31, 2026
Derivative Instruments [Abstract]  
Derivative Instruments

Note 4—Derivative Instruments

 

The primary risk managed by the Company using derivative instruments is foreign exchange risk. Foreign exchange forward contracts are entered into as hedges against unfavorable fluctuations in the USD to EUR exchange rate. The Company is party to a Foreign Exchange Agreement with Western Alliance Bank allowing the Company to enter into foreign exchange contracts under its revolving credit facility with the bank (see Note 15 Revolving Credit Facility). The Company does not apply hedge accounting to these contracts because these are not qualified as hedging accounting pursuant to Accounting Standards Codification (“ASC”) 815; therefore the changes in fair value are recorded in the consolidated statements of operations and comprehensive income (loss). By using derivative instruments to mitigate exposures to changes in foreign exchange rates, the Company is exposed to credit risk from the failure of the counterparty to perform under the terms of the contract. The credit or repayment risk is minimized by entering into transactions with high-quality counterparties.

 

As a result of the global restructuring initiated in January 2025, which included the closure of the Company’s Norway operations, the Company no longer has exposure to USD/NOK foreign exchange risk. As such, there is no outstanding NOK forward contracts and the outstanding EUR contracts at July 31, 2026 was as follows:

 

Settlement Date   USD Amount     EUR Amount  
Aug-26   $ 525,848     € 450,000  
Sep-26     516,330       450,000  
Oct-26     517,050       450,000  
Nov-26     517,680       450,000  
Dec-26     518,310       450,000  
Jan-27     519,075       450,000  
Feb-27     519,660       450,000  
Total   $ 3,633,953     € 3,150,000  

 

The fair value of outstanding derivative instruments recorded in the accompanying consolidated balance sheets were as follows (in thousands):

 

July 31,       2026     2025  
Assets and Liabilities Derivatives:   Balance Sheet Location            
Derivatives not designated or not qualifying as hedging instruments                
Foreign exchange forward contracts   Prepaid expenses and other current assets   $ 14     $ 18  

 

The effects of derivative instruments on the consolidated statements of operations and comprehensive income (loss) were as follows (in thousands):

 

        Three Months Ended
July 31,		     Fiscal Year Ended July 31,  
Amount of Income (Loss) Recognized on Derivatives   2026     2025     2026     2025  
Derivatives not designated or not qualifying as hedging instruments   Location of income (loss) recognized on derivatives                        
Foreign exchange forward contracts   Net (loss) income resulting from foreign exchange transactions   $ (31 )   $ 29       (1 )   $ 44