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Income Taxes
 6 Months Ended
Jul. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 10 – INCOME TAXES

The Company recorded an income tax provision of $2.0 million and $0.8 million for the three months ended July 31, 2025 and 2024, respectively.

The effective tax rate was 38.5% and 19.1% for the three months ended July 31, 2025 and 2024, respectively. The significant components of the effective tax rate changed primarily due to changes in jurisdictional earnings mix resulting in a change in valuation allowances against certain foreign losses and a limitation on a portion of the foreign tax credits and deductions related to the tax on Global Intangible Low-Taxed Income ("GILTI").

The Company recorded an income tax provision of $2.6 million and $2.9 million for the six months ended July 31, 2025 and 2024, respectively.

The effective tax rate was 37.2% and 33.5% for the six months ended July 31, 2025 and 2024, respectively. The significant components of the effective tax rate changed primarily due to changes in jurisdictional earnings mix resulting in a change in valuation allowances against certain foreign losses and a limitation on a portion of the foreign tax credits and deductions related to the tax on GILTI.

At July 31, 2025, the Company had no deferred tax liability for substantially all of the undistributed foreign earnings of approximately $239.4 million because the Company intends to permanently reinvest such earnings in its foreign operations. It is not practicable to estimate the tax liability related to a future distribution of these permanently reinvested foreign earnings.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law by President Trump. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company will continue to evaluate and monitor potential impact on future periods, however, the Company does not expect the OBBBA to have a material impact on its Consolidated Financial Statements.