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Income Taxes | 12 Months Ended
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Apr. 30, 2026
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the Company’s net loss before provision for income taxes for the fiscal years ended April 30, 2026, 2025 and 2024 were as follows (in thousands):
| Fiscal Year Ended April 30,
| 2026 |  | 2025 |  | 2024
Domestic | $ | (473,506) |  |  | $ | (291,153) |  |  | $ | (282,036) |
Foreign | 3,959 |  |  | 3,427 |  |  | 3,132 |
Net loss before provision for income taxes | $ | (469,547) |  |  | $ | (287,726) |  |  | $ | (278,904) |
The components of the Company’s provision for income taxes for the fiscal years ended April 30, 2026, 2025 and 2024 were as follows (in thousands):
| Fiscal Year Ended April 30,
| 2026 |  | 2025 |  | 2024
Current expense |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 30 |  |  | 273 |  |  | 293 |
Foreign | 792 |  |  | 670 |  |  | 499 |
Total | 822 |  |  | 943 |  |  | 792 |
Deferred expense |  |  |  |  |
Federal | — |  |  | — |  |  | — |
State | — |  |  | — |  |  | — |
Foreign | — |  |  | 33 |  |  | — |
Total | — |  |  | 33 |  |  | — |
Total provision for income taxes | $ | 822 |  |  | $ | 976 |  |  | $ | 792 |
The Company adopted ASU 2023-09, Income Taxes - Improvement to Income Tax Disclosures, for the annual disclosures for the fiscal year ended April 30, 2026 on a prospective basis. Comparative financial information for prior periods has not been restated and continues to be reported under the accounting standards in effect for those periods. The reconciliation of U.S. federal statutory rate to the Company’s effective tax rate was follows (in thousands):
| Fiscal Year Ended April 30, 2026
| Amount |  | Percent
Expected benefit at federal statutory rate | $ | (98,605) |  |  | 21.00 | %
State tax expense—net of federal benefit | 30 |  |  | (0.01) |
Impact of foreign operations | (169) |  |  | 0.04 |
Federal research and development credit | (4,042) |  |  | 0.86 |
Change in valuation allowance | 70,323 |  |  | (14.98) |
Stock-based compensation† | 29,614 |  |  | (6.31) |
Other permanent items | 1,520 |  |  | (0.32) |
Changes in Unrecognized Tax Benefits (Gross) | 2,151 |  |  | (0.46) |
Total provision for income taxes | $ | 822 |  |  | (0.18) | %
For the fiscal year ended April 30, 2026, state taxes in Texas comprise the majority of the domestic state and local income taxes, net of federal benefit. The difference in the Company’s effective tax rate and the U.S. federal statutory tax rate is primarily due to recording a full valuation allowance and the increase of disallowed stock based compensation on the Company’s U.S. deferred tax assets. A reconciliation of the expected tax provision at the statutory federal income tax rate to the Company’s recorded tax provision consisted of the following, prior to the adoption of ASU 2023-09 (in thousands):
| Fiscal Year Ended April 30,
|  | 2025 |  | 2024
Expected benefit at federal statutory rate |  | $ | (60,422) |  |  | $ | (58,570) |
State tax expense—net of federal benefit |  | 272 |  |  | 292 |
Impact of foreign operations |  | (156) |  |  | (158) |
Federal research and development credit |  | (3,562) |  |  | (3,087) |
Change in valuation allowance |  | 64,770 |  |  | 66,556 |
Stock-based compensation |  | (1,072) |  |  | (5,001) |
Meals and entertainment |  | 228 |  |  | 207 |
ASC 740-10 Reserve |  | 140 |  |  | — |
Other permanent items |  | 778 |  |  | 553 |
Total provision for income taxes |  | $ | 976 |  |  | $ | 792 |
The following table presents the required disclosures pursuant to ASU 2023-09 regarding the amount of income taxes paid, net of refunds received (in thousands):
| Fiscal Year Ended April 30, 2026
Taxes paid (net of refunds) |
Federal | $ | — |
State |
Texas | 197 |
Other | 12 |
Total US and Local | 209 |
Foreign |
France | 104 |
Mexico | 434 |
Netherlands | 90 |
Other Foreign | 1 |
Total Foreign | 629 |
Total | $ | 838 |
For the tax year end April 30, 2026, state taxes in Texas comprise the majority of the domestic state and local income taxes, net of federal benefit. The components of deferred tax assets and liabilities as of April 30, 2026 and 2025 were as follows (in thousands):
| As of April 30,
| 2026 |  | 2025
Deferred tax assets |  |  |
Accrued payroll | $ | 7,165 |  |  | $ | 7,483 |
Other accruals & reserves | 2,909 |  |  | 3,423 |
Operating lease liability | 13,625 |  |  | 13,696 |
Deferred revenue | 3,368 |  |  | 1,354 |
Net operating losses | 243,715 |  |  | 179,554 |
R&D tax credit | 24,156 |  |  | 20,396 |
Stock based compensation | 15,201 |  |  | 15,710 |
Capitalized R&D expenditure | 105,857 |  |  | 93,759 |
Other | 361 |  |  | 362 |
Gross deferred tax assets | 416,357 |  |  | 335,737 |
Valuation allowance | (400,447) |  |  | (320,939) |
Total deferred tax assets | 15,910 |  |  | 14,798 |
Deferred tax liabilities |  |  |
Prepaid expenses | (4,523) |  |  | (1,774) |
Depreciation | (7,025) |  |  | (8,635) |
Operating lease right-of-use assets | (4,362) |  |  | (4,389) |
Total deferred tax liabilities | (15,910) |  |  | (14,798) |
Net deferred tax assets (liabilities) | $ | — |  |  | $ | — |
In determining the need for a valuation allowance, the Company weighs both positive and negative evidence in the various jurisdictions in which it operates to determine whether it is more likely than not that its deferred tax assets are recoverable. In assessing the ultimate realizability of its net deferred tax assets, the Company considers all available evidence, including cumulative losses since inception and expected future losses and as such, management does not believe it is more likely than not that the deferred tax assets will be realized. Accordingly, a full valuation allowance has been established in the U.S. and no deferred tax assets and related tax benefit have been recognized in the accompanying financial statements. The valuation allowance as of April 30, 2026 and 2025 was $400.4 million and $320.9 million, respectively. The net change in the valuation allowance for the year was an increase of $79.5 million. The increase in Company’s valuation allowance compared to the prior year was primarily due to an increase in deferred tax assets arising from capitalized R&D expenditures and net operating loss. As of April 30, 2026 and 2025, the Company had net operating loss carryforwards for federal income tax purposes of approximately $1,044.5 million and $764.7 million, respectively. The federal net operating loss carryforwards will expire, if not utilized, beginning in year 2029. Federal research and development tax credit carryforwards of approximately $29.9 million, will expire beginning in 2032 if not utilized. Federal charitable contribution carryforwards of approximately $11.5 million will expire beginning in 2027 if not utilized. In addition, as of April 30, 2026 and 2025, the Company had net operating loss carryforwards for state income tax purposes of approximately $400.4 million and $310.7 million, respectively. The state net operating loss carryforwards will expire, if not utilized, beginning in the year 2029. The Company had state research and development tax credit carryforwards of approximately $23.3 million. The state research and development tax credits do not expire. The Tax Reform Act of 1986 and similar legislation impose substantial restrictions on the utilization of net operating losses and tax credit carryforwards in the event that there is a change in ownership as provided by Section 382 of the Internal Revenue Code and similar state provisions. Such a limitation could result in the expiration of the net operating loss carryforwards and tax credits before utilization. A reconciliation of the beginning and ending amount of the Company’s total gross unrecognized tax benefits was as follows (in thousands):
| As of April 30,
| 2026 |  | 2025
Balance as of May 1 | $ | 22,561 |  |  | $ | 16,548 |
Increases for tax positions related to the prior year | 66 |  |  | 70 |
Increases for tax positions related to the current year | 4,318 |  |  | 5,943 |
Balance as of April 30 | $ | 26,945 |  |  | $ | 22,561 |
As of April 30, 2026, $0.3 million of unrecognized tax benefits, if recognized, would impact the Company’s effective income tax rate, given the Company’s full valuation allowance position. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of April 30, 2026, the Company had immaterial cumulative interest and penalties related to unrecognized tax benefits. As of April 30, 2025, the Company had immaterial cumulative interest and penalties related to unrecognized tax benefits. The Company does not anticipate a significant change in the unrecognized tax benefits over the next 12 months. The American Rescue Plan Act of 2021 (“ARPA”) was signed by President Biden on March 11, 2021. The legislation revised IRC Section 162(m) which will go into effect beginning with tax years that begin after December 31, 2026. It expanded the definition of “covered employees” to include an additional five highest-compensated employees who do not remain as covered employees indefinitely. The Company has assessed the relevant provisions and concludes the tax provisions of the ARPA did not have a material impact on the Company’s consolidated financial statements for the fiscal year ended April 30, 2026. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, introducing several significant corporate income tax provisions, including the option to immediately deduct domestic research and development expenses or continue to capitalize and amortize such expenses for tax years beginning after December 31, 2024, the permanent extension of 100% bonus depreciation for qualified property placed in service after January 19, 2025, and modifications to international tax rules such as future changes to the calculation of Global Intangible Low-Taxed Income (GILTI) and the Foreign-Derived Intangible Income (FDII) deduction. The impacts of OBBBA on our financial statements for the fiscal year ended April 30, 2026 were not material because of the valuation allowance against our deferred tax assets. As our business operations or financial results change, or as additional regulations and administrative guidance are issued, we will evaluate any further impacts to our consolidated financial statements.

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