v3.25.4
Income Taxes
 12 Months Ended
Nov. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of income before income taxes are as follows:
 
Fiscal Year Ended
(in thousands)November 30, 2025November 30, 2024November 30, 2023
U.S.$59,873 $73,746 $70,659 
Foreign21,755 20,518 8,998 
Total$81,628 $94,264 $79,657 
The provision for income taxes is comprised of the following:
 
Fiscal Year Ended
(in thousands)November 30, 2025November 30, 2024November 30, 2023
Current:
Federal$18,658 $23,768 $28,905 
State4,203 4,635 4,373 
Foreign9,063 5,173 4,823 
Total current31,924 33,576 38,101 
Deferred
Federal(20,079)(7,868)(22,763)
State(1,758)(163)(1,592)
Foreign(1,592)281 (4,286)
Total deferred(23,429)(7,750)(28,641)
Total$8,495 $25,826 $9,460 

A reconciliation of the income taxes incurred at the U.S. federal statutory rate compared to the effective tax rate is as follows:
 
Fiscal Year Ended
(in thousands)November 30, 2025November 30, 2024November 30, 2023
Tax at U.S. federal statutory rate$17,142 $19,795 $16,728 
Foreign rate differences(158)(728)(644)
Effects of foreign operations included in U.S. federal provision703 1,158 447 
State income taxes, net1,649 1,480 1,814 
Research credits(3,643)(2,513)(894)
Nondeductible stock-based compensation4,282 2,625 2,498 
Meals and entertainment186 155 162 
Compensation subject to 162(m)1,391 1,028 928 
Uncertain tax positions and tax settlements(210)(108)(1,056)
Net excess tax benefit from stock-based compensation plans(80)(1,419)(2,058)
Global intangible low tax inclusion855 797 244 
Foreign derived intangible deduction(8,064)(10,218)(8,297)
Tax on unremitted earnings(7,497)13,889 — 
Tax on intercompany restructuring2,502 — — 
Other(563)(115)(412)
Total$8,495 $25,826 $9,460 
The components of deferred tax assets and liabilities are as follows:
 
(in thousands)November 30, 2025November 30, 2024
Deferred tax assets:
Accounts receivable$1,463 $163 
Accrued compensation8,455 6,919 
Accrued liabilities and other3,761 5,638 
Deferred revenue20,071 40,199 
Stock-based compensation11,923 10,138 
Original issue discount8,335 12,055 
Tax credit and loss carryforwards19,570 23,654 
Interest expense carryforward5,142 — 
Operating lease liabilities4,861 6,335 
Capitalized research and development55,780 36,006 
Gross deferred tax assets139,361 141,107 
Valuation allowance(1,458)(1,656)
Total deferred tax assets137,903 139,451 
Deferred tax liabilities:
Goodwill(31,024)(27,646)
Right-of-use lease assets(3,968)(5,200)
Depreciation and amortization(13,464)(34,385)
Unremitted earnings of foreign subsidiaries(7,932)(13,674)
Prepaid expenses(5,231)(4,646)
Total deferred tax liabilities(61,619)(85,551)
Total$76,284 $53,900 

On July 4, 2025, the OBBBA was enacted into law, introducing significant changes to the U.S. federal income tax system. The legislation contains key modifications to the provisions of the 2017 Tax Cuts and Jobs Act and has multiple effective dates. There is no material impact to the tax provision for fiscal 2025. The majority of the legislative provisions become effective in our fiscal years 2026 and 2027.

The valuation allowance primarily applies to net operating loss carryforwards in foreign jurisdictions under conditions where realization is not more likely than not. The $0.2 million decrease in the valuation allowance during fiscal year 2025 primarily relates to the release of the valuation allowance on certain foreign losses.

At November 30, 2025, we have federal and foreign net operating loss carryforwards of $23.7 million expiring on various dates through 2035 and $27.5 million that do not expire. In addition, we have state net operating loss carryforwards of $40.0 million expiring on various dates through 2043 and $16.1 million that do not expire. At November 30, 2025, we have state tax credit carryforwards of approximately $2.0 million expiring on various dates through 2040 and $3.4 million that may be carried forward indefinitely. In addition, we have federal tax credit carryforwards of approximately $5.6 million expiring on various dates through 2039.

During the fourth quarter of 2024, we made the determination that a substantial portion of unremitted foreign earnings are no longer indefinitely reinvested. We made the decision as a direct result of changes in business needs related to the acquisition of ShareFile. As a result of the acquisition, the Company plans to utilize worldwide cash based on the needs of the parent entity. These amounts will be repatriated as needed. At November 30, 2025, we maintain a deferred tax liability of $7.9 million for the U.S. federal, state, and foreign withholding taxes expected to be imposed upon the repatriation of unremitted foreign earnings that are not considered indefinitely reinvested. There are approximately $29.6 million of unremitted foreign earnings which are deemed to be indefinitely reinvested to support the working capital requirements of our foreign subsidiaries. A determination of the deferred tax liability on this amount is not practicable due to the complexities, variables, and assumptions inherent in the hypothetical calculations.

As of November 30, 2025, the total amount of unrecognized tax benefits was $4.8 million, of which $0.9 million was recorded in other noncurrent liabilities on the consolidated balance sheet and $3.9 million as a reduction of deferred tax assets, principally related to U.S net operating loss carry-forwards and federal and state research and development tax credits.
A reconciliation of the balance of our unrecognized tax benefits is as follows:
Fiscal Year Ended
(in thousands)November 30, 2025November 30, 2024November 30, 2023
Balance, beginning of year$5,234 $5,172 $5,276 
Tax positions related to a prior period— 416 19 
Tax positions acquired— 311 423 
Settlements with tax authorities(102)— (367)
Lapses due to expiration of the statute of limitations(362)(665)(179)
Balance, end of year$4,770 $5,234 $5,172 

If recognized, all amounts of unrecognized tax benefits would affect the effective tax rate.

We recognize interest and penalties related to uncertain tax positions as a component of our provision for income taxes. There was a minimal amount of estimated interest and penalties recorded in the provision for income taxes in the periods presented. We have accrued $0.3 million of estimated interest and penalties for both periods ending November 30, 2025 and 2024, respectively. We do not expect any significant changes to the amount of unrecognized tax benefits in the next twelve months.

Our federal income tax returns have been examined or are closed by statute for all years prior to fiscal year 2022. Our state income tax returns have been examined or are closed by statute for all years prior to fiscal year 2021, and we are no longer subject to audit for those periods. Tax authorities for certain non-U.S. jurisdictions are also examining tax returns for various years dating back to 2016 and the Company does not expect the results of these examinations to be material to our consolidated balance sheets, cash flows, or statements of operations. With some exceptions, we are generally no longer subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal year 2020.