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Income Taxes
 9 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our income tax benefit for the three months ended June 30, 2023 was $0.1 million, or 11.2% of pre-tax loss, compared to an income tax expense of $0.3 million, or 28.5% of pre-tax income, for the three months ended June 30, 2022. For the nine months ended June 30, 2023, our income tax expense was $3.2 million, or 36.5% of pre-tax income, compared to an income tax benefit of $5.6 million, or 32.2% of pre-tax income, for the nine months ended June 30, 2022. The effective income tax rate for the three and nine months ended June 30, 2023 differed from the federal statutory rate of 21% primarily due to non-deductible executive compensation, transaction costs and state and local income and franchise taxes. The effective income tax rate for the three and nine months ended June 30, 2022 differed from the federal statutory rate of 21% primarily as a result of the release of a significant portion of the valuation allowance (as discussed further below), offset by current state tax expenses.

As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. During the three months ended March 31, 2022, based in part on our sustained positive earnings in recent quarters, we determined that there was sufficient evidence to meet the more likely than not realizability threshold and support the reversal of a majority of the previously recorded valuation allowance against our deferred tax assets. The release of the valuation allowance resulted in the recognition of certain deferred tax assets on the condensed consolidated balance sheets and a non-cash tax benefit recorded in the condensed consolidated statement of operations for the period. As of June 30, 2023, we continued to maintain a valuation allowance related to certain federal and state attributes which are not expected to be utilized prior to expiration.