Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.26.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The components of our income (loss) prior to income taxes were as follows:
Year Ended March 31,
2026 2025 2024
U.S. $ (49,887) $ (109,128) $ (170,057)
Foreign 18,547  21,264  (235,074)
Loss before income taxes $ (31,340) $ (87,864) $ (405,131)
Schedule of Provision (Benefit) for Income Taxes
The components of the Company’s income tax provision (benefit) attributable to operations are as follows:
Year Ended March 31,
2026 2025 2024
Current:
U.S. federal $ —  $ —  $ — 
State and local —  —  — 
Foreign 6,739  8,241  8,262 
6,739  8,241  8,262 
Deferred:
U.S. federal (8) (9) 5,925 
State and local (3) —  5,491 
Foreign
 (336) (3,997) (4,361)
(347) (4,006) 7,055 
Income tax expense $ 6,392  $ 4,235  $ 15,317 
Schedule of Reconciliation of Income Tax Expense Between Statutory U S Income Tax Rate With Actual Income Tax Provision A reconciliation of the U.S. federal statutory income tax rate to our effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended March 31, 2026 was as follows:
Year Ended March 31, 2026
Amount Percent
U.S. federal statutory tax rate $ (6,581) 21.0  %
State and local income taxes, net of federal income tax effect (3) —  %
Foreign tax effects
Israel
Statutory tax rate difference between Israel and U.S. (3,630) 11.6  %
Other 96  (0.3) %
Germany
Statutory tax rate difference between Germany and U.S. (1,650) 5.3  %
Changes in valuation allowance 7,318  (23.4) %
Deferred tax rate remeasurement (2,016) 6.4  %
Other 62  (0.2) %
Brazil
Changes in valuation allowance 1,076  (3.4) %
Return to provision 336  (1.1) %
Other (241) 0.8  %
Luxembourg
Return to provision 375  (1.2) %
Other (369) 1.2  %
Netherlands
Changes in valuation allowance 513  (1.6) %
Other (103) 0.3  %
Norway
Changes in valuation allowance 390  (1.2) %
Other (218) 0.7  %
Singapore
Changes in valuation allowance 1,035  (3.3) %
Return to provision (441) 1.4  %
Other 22  (0.1) %
Other Foreign Jurisdictions (114) 0.4  %
Tax credits
Research and development tax credits (947) 3.0  %
Changes in valuation allowances 9,101  (29.0) %
Nontaxable or nondeductible items
Stock-based compensation 485  (1.6) %
Unrealized gain on derivatives (316) 1.0  %
Other 106  (0.3) %
Changes in unrecognized tax benefits 203  (0.7) %
Other
Prior period adjustments 1,566  (5.0) %
Other 337  (1.1) %
Effective tax rate $ 6,392  (20.4) %
The following table presents the required disclosures prior to our adoption of ASU 2023-09 and provides a reconciliation of the statutory federal income tax rate to our effective tax rate for the years ended March 31, 2025 and 2024:
Year Ended March 31,
2025 2024
Statutory federal income tax rate $ (18,518) $ (85,077)
State income taxes, net of federal benefit (2,591) — 
State rate remeasurement 523  1,680 
Nondeductible expenses —  176 
Disallowed executive compensation 2,018  1,145 
Excess deductions for stock-based compensation 1,572  2,783 
Foreign rate differential (5,049) (544)
Impairment of goodwill —  64,346 
Research and development tax credit (1,721) (721)
Change in uncertain tax liability 364  144 
Change in valuation allowance 29,551  29,010 
Return to provision adjustments (1,976) 2,375 
Other miscellaneous 62  — 
Income tax expense $ 4,235  $ 15,317 
Summary of Valuation Allowance The following table represents the roll forward of our valuation allowance:
Year Ended March 31,
2026 2025 2024
Balance at the beginning of the year $ 85,403  $ 55,852  $ 26,842 
Valuation allowance charged to income tax expense 21,589  29,551  29,010 
Balance at the end of the year $ 106,992  $ 85,403  $ 55,852 
Schedule of Cash Paid for Income Taxes
Supplemental cash flow information related to our leases was as follows:
Year Ended March 31,
2026 2025 2024
Cash paid for amounts included in the measurement of operating lease liabilities
 $ 3,783  $ 3,520  $ 3,443 
Right-of-use assets obtained in exchange for operating lease liabilities 1,477  4,096  2,683 
Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended March 31, 2026 was as follows:
Year Ended March 31, 2026
U.S. federal $ — 
State and local — 
Foreign
Israel 25,208 
Other foreign jurisdictions 1,087 
Total foreign 26,295 
Total cash taxes paid, net of refunds $ 26,295 
Schedule of Deferred Tax Assets and Liabilities
The significant components of net deferred tax balances were as follows:
March 31,
2026 2025
Deferred tax assets
Net operating loss carry-forward $ 101,931  $ 90,177 
Stock-based compensation 5,774  5,698 
Accrued compensation 3,673  172 
Capitalized research and experimentation expenses —  3,114 
Disallowed interest expense
 27,326  15,963 
Other 634  471 
Total deferred tax assets 139,338  115,595 
Valuation allowance (106,992) (85,403)
Deferred tax assets, net of valuation allowance 32,346  30,192 
Deferred tax liabilities
Depreciation and amortization (1,280) (1,310)
Capitalized research and experimentation expenses (8,151) — 
Intangibles and goodwill (38,733) (45,190)
Total deferred tax liabilities (48,164) (46,500)
Deferred tax liabilities, net $ (15,818) $ (16,308)
Schedule of Operating Loss Carryforwards
The following details the scheduled expiration dates of the Company’s net operating loss (NOL) carryforwards as of March 31, 2026:
2027 Through 2036 2037 Through 2046 Indefinite Total
U.S. federal $ —  $ 37,357  $ 99,020  $ 136,377 
State and local 12,459  150,836  4,282  167,577 
Foreign 927  702  210,097  211,726 
Total net operating loss carryforwards $ 13,386  $ 188,895  $ 313,399  $ 515,680 
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended March 31, 2026, 2025, and 2024, is as follows:
Year Ended March 31,
  2026 2025 2024
Balance at the beginning of the year $ 2,532  $ 2,168  $ 2,024 
Additions for tax positions of prior years 189  364  144 
Balance at the end of the year $ 2,721  $ 2,532  $ 2,168