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Income Taxes
 12 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
All of the Company’s income before income taxes was generated in the United States for the fiscal years ended March 31, 2025, 2024, and 2023.
The Company’s provision for income taxes consisted of the following (in thousands):
Fiscal Year Ended March 31,
202520242023
Current provision:
Federal$42,259 $36,394 $3,515 
State9,722 9,819 3,498 
Total51,981 46,213 7,013 
Deferred provision (benefit):
Federal(9,606)(5,088)11,834 
State(1,986)(3,505)1,491 
Total(11,592)(8,593)13,325 
Total provision for income taxes$40,389 $37,620 $20,338 
The following is a reconciliation of the income tax expense at the federal statutory tax rate to the Company’s provision for income taxes (in thousands):
Fiscal Year Ended March 31,
202520242023
Income taxes at statutory rate$55,350 $38,893 $27,963 
State income taxes, net of federal benefit12,831 12,130 6,757 
Research and development credits(6,439)(3,817)(5,076)
Stock-based compensation(37,634)(6,734)(14,841)
Change in valuation allowance25 (4,060)504 
Section 162(m) limitation19,872 3,410 4,782 
Transferable federal tax credits
(1,305)(1,920)— 
Other(2,311)(282)249 
Total provision for income taxes$40,389 $37,620 $20,338 
Components of deferred tax assets and liabilities were as follows (in thousands):
As of March 31,
20252024
Deferred tax assets:
Accruals and deferred revenue$4,784 $4,372 
Net operating loss carryforwards944 1,160 
Research & development credit carryforwards5,117 3,855 
Investment tax credits
4,600 — 
Operating lease liabilities3,122 3,683 
Acquisition and other related expense248 273 
Stock-based compensation expense5,236 7,048 
Unrealized loss
— 902 
Capitalized research and development44,558 31,927 
Gross deferred tax assets68,609 53,220 
Less: valuation allowance(1,200)(1,175)
Deferred tax assets, net of valuation allowance67,409 52,045 
Deferred tax liabilities:
Property and equipment(3,308)(2,879)
Operating lease right-of-use assets(2,238)(3,122)
Intangible assets(1,404)(976)
Unrealized gain
(445)— 
Deferred tax liabilities(7,395)(6,977)
Net deferred tax assets$60,014 $45,068 
The Company monitors the realizability of deferred tax assets, taking into account all relevant factors at each reporting period. As of March 31, 2025, the Company had a valuation allowance of $1.2 million, which related to Arizona research and development credits and capital loss carryforwards. As of March 31, 2024, the Company had a valuation allowance of $1.2 million, which related to Arizona research and development credits, California alternative minimum tax credits, and capital loss carryforwards.
Pursuant to provisions under the Inflation Reduction Act, the Company purchased $17.4 million of transferable federal tax credits during the fiscal year ended March 31, 2025, from various counterparties. In connection with the purchase, the Company paid $16.1 million for tax credits related to fiscal year March 31, 2025, which were purchased at negotiated discounts, resulting in an income tax benefit of $1.3 million recorded during the fiscal year ended March 31, 2025. The Company is also committed to paying $3.2 million for additional transferable tax credits placed in service as of March 31, 2025, and paying $12.3 million for transferable tax credits as future projects are placed in service, with the final project expected to be placed in service in fiscal 2026.
As of March 31, 2025, the Company had net operating loss, or NOL, carryforwards for state tax purposes of $4.2 million. Portions of the NOL carryforwards will expire at various dates beginning in the tax year ending March 31, 2042. As of March 31, 2025, the Company had research and development tax credit carryforwards for state tax purposes of $10.0 million. The California state research and development tax credit carryforwards do not expire. The other state research and development tax credit carryforwards will expire at various dates beginning in the year ending March 31, 2033. Based on an assessment of the Company’s historical ownership changes through March 31, 2025, the Company does not anticipate a current limitation on the tax attributes.
As of March 31, 2025 and 2024, the Company had unrecognized tax benefits, or UTBs, of $12.0 million and $9.3 million, respectively. If realized, $11.8 million would impact the effective tax rate while the remainder would reduce deferred tax assets subject to a full valuation allowance. The Company does not expect any material changes to its UTBs within the next 12 months.    
A reconciliation of the beginning and ending balances for gross UTBs is as follows (in thousands):
Fiscal Year Ended March 31,
202520242023
Beginning balance$9,302 $7,913 $6,188 
Additions for tax positions related to the current year2,502 1,404 2,210 
Additions for tax positions related to prior years194 112 — 
Reductions for tax positions related to prior years(4)(119)(472)
Reductions related to a lapse of statute(5)(8)(13)
Ending balance$11,989 $9,302 $7,913 
Interest and penalties were not material during the fiscal years ended March 31, 2025, 2024, and 2023.
The Company files income tax returns in the U.S. federal and various state jurisdictions. With limited exceptions, all tax years after 2019 remain subject to examination.