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Income Taxes | 12 Months Ended
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Jun. 30, 2026
Income Tax Disclosure [Abstract] |
Income Taxes | (14) Income Taxes (a) Income before Income Taxes Income before income taxes for the year ended June 30, 2026 consisted of the following:
Domestic | $ | 382,102
Foreign | 5,201
Total | $ | 387,303 |
(b) Income Taxes Income tax expense for the years ended June 30, 2024, 2025 and 2026 consisted of the following:
| Year Ended June 30,
| 2024 |  | 2025 |  | 2026
Current taxes |  |  |  |  |
Federal | $ | 30,900 |  |  | $ | 65,188 |  |  | $ | 13,040 |
State and local | 11,524 |  |  | 18,918 |  |  | 20,609 |
International | — |  |  | 999 |  |  | 1,002 |
Deferred taxes: |  |  |  |  |
Federal | 26,438 |  |  | (4,072) |  |  | 75,459 |
State and local | 1,387 |  |  | 940 |  |  | 8,425 |
International | — |  |  | (37) |  |  | (973) |
Total income tax expense | $ | 70,249 |  |  | $ | 81,936 |  |  | $ | 117,562 |
(c) Tax Rate Reconciliation Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the year ended June 30, 2026 to pretax income as a result of the following:
| Year Ended June 30,
| 2026
U.S. federal statutory tax rate | $ | 81,333 |  |  | 21.0 | %
State and local income taxes, net of federal income tax effect (i) | 24,707 |  |  | 6.4 |
Foreign tax effects | (1,064) |  |  | (0.3) |
Effect of cross-border tax laws | 283 |  |  | 0.1 |
Tax credits |  |  |
Research and development tax credits | (9,518) |  |  | (2.4) |
Other credits | (233) |  |  | (0.1) |
Changes in unrecognized tax benefits | 1,234 |  |  | 0.3 |
Non-taxable or non-deductible items |  |  |
Stock-based compensation | 18,318 |  |  | 4.7 |
Other non-deductible expenses | 2,502 |  |  | 0.7 |
Effective tax rate | $ | 117,562 |  |  | 30.4 | %
(i) State taxes in California, Illinois, Florida and Pennsylvania made up the majority (greater than 50%) of the tax effect in this category. Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended June 30, 2024 and 2025 to pretax income as a result of the following:
| Year Ended June 30,
| 2024 |  | 2025
Income tax expense at statutory federal rate | 21.0 | % |  | 21.0 | %
Increase (reduction) in income taxes resulting from: |  |  |
Research and development credit and other credits | (2.9) |  |  | (2.0) |
Non-deductible expenses | 0.7 |  |  | 0.5 |
Change in valuation allowance | (0.5) |  |  | — |
Stock-based compensation expense | 2.7 |  |  | 1.8 |
State and local income taxes, net of federal income tax benefit | 4.3 |  |  | 5.1 |
Other | 0.1 |  |  | 0.1 |
| 25.4 | % |  | 26.5 | %
The effective tax rate for the years ended June 30, 2024, 2025 and 2026 was 25.4%, 26.5% and 30.4%, respectively, on pre-tax income of $277,015, $309,063 and $387,303, respectively. The increase in the effective tax rate for the years ended June 30, 2024 and 2025 were primarily due to state and local income tax. The increase in effective tax rate for the year ended June 30, 2026 was due to stock-based compensation shortfalls and state and local income taxes. (d) Income Taxes Paid The summary of income taxes paid by jurisdiction for the year ended June 30, 2026:
| Year Ended June 30,
| 2026
Federal | $ | 13,100 |
State and local income taxes |
California | 3,657 |
Florida | 2,723 |
Other states | 13,023 |
Foreign taxes | 652 |
Total income taxes paid | $ | 33,155 |
The amount of cash taxes paid by the Company during the years ended June 30, 2024 and 2025 was $47,619 million and $86,100, respectively. (e) Components of Deferred Tax Assets and Liabilities The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2025 and 2026 are presented below.
| June 30,
| 2025 |  | 2026
Deferred tax assets: |  |  |
Operating lease liabilities | $ | 14,457 |  | $ | 13,150
Accrued expenses | 23,101 |  | 24,191
Stock-based compensation | 25,970 |  | 19,524
Net operating loss carryforwards | 20,471 |  | 16,352
Federal and state tax credits | 16,196 |  | 16,116
Research and development costs | 60,611 |  | 4,723
Other | — |  | 1
Total deferred tax assets | 160,806 |  | 94,057
Valuation allowance | (232) |  |  | (2,954) |
Net deferred tax assets | 160,574 |  | 91,103
Deferred tax liabilities: |  |  |
Deferred contract costs | (134,448) |  |  | (145,341) |
Operating lease right-of-use assets | (9,400) |  | (8,328)
Intangible assets | (20,269) |  | (20,184)
Depreciation | (8,976) |  |  | (12,098) |
Other | (2,286) |  |  | — |
Total deferred tax liabilities | (175,379) |  |  | (185,951) |
Net deferred tax liabilities | $ | (14,805) |  |  | $ | (94,848) |
As of June 30, 2026, the Company maintains a valuation allowance of $2,954 for certain state tax benefits which may not be realized. The increase to the valuation allowance is mainly due to changes to the realizability of Illinois tax attributes due to impacts from the One Big Beautiful Bill Act. Such assessment may change in the future as further evidence becomes available. At June 30, 2026, the Company has gross net operating loss carryforwards for federal income tax purposes of approximately $37,187, all of which can be carried forward indefinitely. The Company has gross net operating loss carryforwards for state income tax purposes of approximately $118,343, of which $109,355 expire from 2031 to 2046, while the remaining $8,988 can be carried forward indefinitely. The Company also has gross state research and development tax credits and other state credit carryforwards of approximately $19,232, which expire between 2026 and 2045. As of June 30, 2025 and 2026, the Company’s liabilities for unrecognized tax benefits, which would impact the Company’s effective tax rate if recognized, are presented below. The Company will include applicable penalties and interest when the benefit is recognized:
| Year Ended June 30,
| 2025 |  | 2026
Unrecognized tax benefits at beginning of the year | $ | 2,435 |  |  | $ | 3,306 |
Additions for current year tax positions | 848 |  |  | 1,022 |
Additions for tax positions of prior periods | 23 |  |  | 212 |
Unrecognized tax benefit at end of year | $ | 3,306 |  |  | $ | 4,540 |
The Company files income tax returns with the United States federal government and various state jurisdictions. Certain tax years remain open for federal and state tax reporting jurisdictions in which the Company does business due to net operating loss and tax credit carryforwards from such years or utilized in a period remaining open for audit under normal statute of limitations relating to income tax liabilities. The Company, including its domestic subsidiaries, files a consolidated federal income tax return. For years before fiscal year ended June 30, 2023, the Company is no longer subject to U.S. federal examination; however, the Internal Revenue Service (IRS) has the ability to review years prior to fiscal year 2023 to the extent the Company utilized tax attributes carried forward from those prior years. The statute of limitations on state filings is generally three to four years. On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted into law. The Act included changes to U.S. income tax law that were applicable to the Company beginning in fiscal 2026. The Act included significant provisions such as accelerated tax deductions for qualified property and research expenditures. The Company incorporated the impacts of the Act into its Consolidated Financial Statements, including applicable impacts related to the realizability of state income tax attributes.

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