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Income Taxes | 12 Months Ended
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Jan. 31, 2026
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of net loss before income taxes were as follows:
| Year Ended January 31,
| 2026 |  | 2025 |  | 2024
| (in thousands)
Domestic | $ | (220,155) |  |  | $ | (277,823) |  |  | $ | (457,788) |
Foreign | 4,006 |  |  | 5,129 |  |  | 158 |
Net loss before income taxes | $ | (216,149) |  |  | $ | (272,694) |  |  | $ | (457,630) |
The components of the provision for (benefit from) income taxes were as follows:
| Year Ended January 31,
| 2026 |  | 2025 |  | 2024
| (in thousands)
Current |  |  |  |  |
Federal | $ | — |  |  | $ | 61 |  |  | $ | 218 |
State | 123 |  |  | 13 |  |  | 17 |
Foreign | 4,366 |  |  | 3,998 |  |  | 1,942 |
Total current | $ | 4,489 |  |  | $ | 4,072 |  |  | $ | 2,177 |
Deferred |  |  |  |  |
Foreign | (441) |  |  | 300 |  |  | (2,198) |
Total deferred | (441) |  |  | 300 |  |  | (2,198) |
Total provision for (benefit from) income taxes | $ | 4,048 |  |  | $ | 4,372 |  |  | $ | (21) |
The table below provides the updated requirements of ASU 2023-09 for the Company’s effective tax rate for the year ended January 31, 2026. See Note 1, Description of the Business and Summary of Significant Accounting Policies for additional details on the adoption of ASU 2023-09.
| Year Ended January 31, |  |
| 2026 |  |
U.S. federal statutory tax rate | $ | (45,391) |  |  | 21.0 | % |  |
State and local income taxes, net of federal tax effect | (676) |  |  | 0.3 | % |  |
Effect of cross-border tax laws | 513 |  |  | (0.2 | %) |  |
Change in valuation allowances | 30,507 |  |  | (14.1 | %) |  |
Nondeductible items |  |  |  |  |
Nondeductible stock-based compensation | 11,145 |  |  | (5.2 | %) |  |
Permanent difference on debt Exchange Transaction | 3,164 |  |  | (1.5) | % |  |
Other adjustments | 1,401 |  |  | (0.7) | % |  |
Changes in unrecognized tax benefits | 3,331 |  |  | (1.5) | % |  |
Foreign tax effects | 54 |  |  | — | % |  |
Total income tax expense | $ | 4,048 |  |  | (1.9) | % |  |
The Company presents the impact of uncertain tax positions in the effective tax rate reconciliation on an aggregate worldwide basis. This uncertain tax position line amounts includes the positions related to federal and state research and development (“R&D”) credits as well as transfer pricing matters. Accordingly, amounts related to uncertain tax positions are included in the “Changes in unrecognized tax benefits” line and are not allocated to specific jurisdictions, such as federal, state, or foreign taxes. As a result, certain items related to state or foreign tax matters may be reflected within this line rather than within the respective jurisdictional categories in the rate reconciliation. Greater than 50% of the state tax benefit was primarily due to California R&D credits. As previously disclosed for the periods ended January 31, 2025 and 2024, prior to the adoption of ASU 2023-09, the effective income tax rate differed from the statutory federal income tax rate as follows:
|  |  | Year Ended January 31,
|  |  | 2025 |  | 2024
Tax at federal statutory rate |  |  | 21.0 | % |  | 21.0 | %
Stock-based compensation |  |  | (7.6 | %) |  | (2.6 | %)
Change in valuation allowance |  |  | (13.4 | %) |  | (19.5 | %)
Research and development tax credits |  |  | 0.4 | % |  | 0.6 | %
Other |  |  | (2.0) | % |  | 0.6 | %
Effective tax rate |  |  | (1.6) | % |  | 0.1 | %
The significant components of the Company’s deferred tax assets and liabilities as of January 31, 2026 and 2025 were as follows:
| Year Ended January 31,
| 2026 |  | 2025
| (in thousands)
Deferred tax assets: |  |  |
Net operating losses | $ | 304,482 |  |  | $ | 278,637 |
Research & development credits | 45,207 |  |  | 44,047 |
Deferred revenue | 28,649 |  |  | 33,188 |
Accruals and reserves | 18,307 |  |  | 20,377 |
Stock-based compensation | 2,732 |  |  | 3,860 |
Operating lease liabilities | 3,953 |  |  | 5,024 |
Capitalized research & development expense | 71,713 |  |  | 78,632 |
Interest expense limitation | 12,340 |  |  | 8,550 |
Inventory reserves | 13,022 |  |  | 15,350 |
Debt book-tax basis difference | 19,339 |  |  | — |
UNICAP adjustment | 9,243 |  |  | 8,850 |
Depreciation and amortization | 296 |  |  | — |
Total deferred tax assets | 529,283 |  |  | 496,515 |
Less: valuation allowance | (523,065) |  |  | (486,356) |
Deferred tax liabilities: |  |  |
Depreciation and amortization | — |  |  | (345) |
Operating lease right-of-use assets | (2,905) |  |  | (3,706) |
Acquired intangible assets | (14,229) |  |  | (15,598) |
Deferred commission | (1,933) |  |  | (2,347) |
Other | (189) |  |  | — |
Total deferred tax liabilities | (19,256) |  |  | (21,996) |
Net deferred tax assets (liabilities) | $ | (13,038) |  |  | $ | (11,837) |
Under the Tax Cuts and Jobs Act, for tax years beginning after December 31, 2021, taxpayers are required to capitalize and amortize all R&D expenditures that are paid or incurred in connection with their trade or business which represent costs in the experimental or laboratory sense. Specifically, research and development expenditures capitalized pursuant to Internal Revenue Code Section 174 are amortized over a 5-year period for domestic expenses and a 15-year period for foreign expenses. The One Big Beautiful Bill Act (“OBBBA”), enacted on July 4, 2025, restored the immediate expensing of domestic R&D expenses and allowed accelerated expensing of previously capitalized domestic R&D as of December 31, 2024. Foreign research costs remain subject to capitalization and amortization over a 15-year period. The Company determines its valuation allowance on deferred tax assets by considering both positive and negative evidence in order to ascertain whether it is more likely than not that deferred tax assets will be realized. Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing and amount of which are uncertain. Due to the Company’s historical operating losses in the United States (“US”), the Company believes that it is more likely than not that the US deferred taxes will not be realized; accordingly, the Company has recorded a full valuation allowance on its net US deferred tax assets as of January 31, 2026 and 2025. The valuation allowance increased by $36.7 million, $46.9 million, and $110.7 million during the years ended January 31, 2026, 2025, and 2024, respectively, primarily driven by losses, capitalized research and development expenses, and tax credits generated in the United States. As of January 31, 2026, the Company had federal and California state net operating loss (“NOL”) carryforwards of $1,163.6 million and $456.2 million, respectively, of which $974.9 million of the federal NOL carryforwards can be carried forward indefinitely. The federal and California state net operating loss carryforwards begin to expire in 2028 and 2029, respectively. In addition, the Company had NOLs for other states of $515.8 million, which began to expire in the year 2026. As of January 31, 2026, the Company had federal and California state research credit carryforwards of $41.2 million and $43.3 million, respectively. The federal credit carryforwards will begin to expire in 2038. The California research credit carryforwards can be carried forward indefinitely. Under Internal Revenue Code Section 382 (“Section 382”), the Company’s ability to utilize NOL carryforwards or other tax attributes such as research tax credits, in any taxable year may be limited if the Company experiences, or has experienced, an “ownership change.” A Section 382 ownership change generally occurs if one or more stockholders or groups of stockholders, who own at least 5% of the Company’s stock, increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. Similar rules may apply under state tax laws. The Company completed its Section 382 analysis and determined it had experienced ownership changes in some periods through January 31, 2026. As a result of the ownership changes, approximately $17.1 million of Federal NOLs, $17.5 million of California NOLs, and $4.7 million of federal tax credits are expected to expire unutilized for income tax purposes and have been excluded from the deferred tax asset table. Subsequent ownership changes may affect the limitation in future years. The following table summarizes the activity related to unrecognized tax benefits as follows:
| Year Ended January 31,
2026 |  | 2025 |  | 2024
(in thousands)
Unrecognized tax benefits - beginning | $ | 35,533 |  |  | $ | 32,093 |  |  | $ | 25,762 |
Gross changes - prior period tax position | — |  |  | (103) |  |  | — |
Gross changes - current period tax position | 3,537 |  |  | 3,543 |  |  | 6,331 |
Unrecognized tax benefits — ending | $ | 39,070 |  |  | $ | 35,533 |  |  | $ | 32,093 |
As of January 31, 2026, the Company had unrecognized tax benefits of $39.1 million, which would not impact the effective tax rate, if recognized, due to the valuation allowance. The unrecognized tax benefits are primarily related to activities which the Company believes qualify for research and development tax credits. The nature of these activities as creditable may be subject to a different interpretation upon a tax examination. It is unlikely that the amount of liability for unrecognized tax benefits will significantly change over the next twelve months. It is the Company’s policy to recognize interest and penalties related to income tax matters in income tax expense. As of January 31, 2026, the Company had no accrued interest and penalties related to uncertain tax positions. The fiscal years ended March 2008 through January 2025 remain open to examination due to the carryover of unused net operating losses and tax credits. The Company does not expect its uncertain tax positions to change significantly within the next twelve months. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Cuts and Jobs Act of 2017. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as period cost are both acceptable methods subject to an accounting policy election. The Company has elected to treat any potential GILTI inclusions as a period cost. Income taxes paid are as follows (in thousands):
| Year Ended January 31,
2026 |  |  |  |
(in thousands)
U.S. State | $ | — |  |  |  |  |
Foreign |  |  |  |  |
India | 928 |  |  |  |  |
UK | 644 |  |  |  |  |
Germany | 408 |  |  |  |  |
Canada | 399 |  |  |  |  |
Netherlands | 276 |  |  |  |  |
Austria | 176 |  |  |  |  |
All other foreign | 53 |  |  |  |  |
Income taxes paid | $ | 2,884 |  |  |  |  |

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