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Income Taxes
 12 Months Ended
Jan. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of the provision for income taxes were as follows (in thousands):
Year Ended January 31,
202620252024
Current:
Federal
$— $— $— 
State203 121 318 
Foreign4,247 4,295 3,239 
Total current$4,450 $4,416 $3,557 
Deferred:
Federal
$— $— $— 
State— — — 
Foreign407 349 148 
Total deferred407 349 148 
Total provision for income taxes$4,857 $4,765 $3,705 
The components of income (loss) before provision for income taxes were as follows (in thousands):
Year Ended January 31,
202620252024
United States$(195,803)$(261,057)$(262,894)
Foreign11,636 10,286 9,569 
Total$(184,167)$(250,771)$(253,325)
Beginning in the fiscal year ended January 31, 2026 annual reporting, the Company adopted ASU 2023-09 prospectively. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies for additional details on the adoption of ASU 2023-09. 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 January 31, 2026 is as follows (in thousands, except percentages):
Year Ended January 31,
2026
Pretax book loss (consolidated)
$(184,167)
US federal statutory income tax rate(38,675)21.0 %
State and local income tax, net of federal income tax effect (1)
154 (0.1)
Foreign tax effects
Canada1,980 (1.1)
Other foreign jurisdictions
232 (0.1)
Effect of cross-border tax laws
Net CFC tested income (previously GILTI)
2,019 (1.1)
Tax credits
Research and development credits
(18,381)10.0 
Changes in valuation allowances
42,848 (23.3)
Non-taxable or non-deductible items
Stock based compensation expense
10,031 (5.4)
Other non-deductible items
4,504 (2.4)
Other145 (0.1)
Total income tax expense$4,857 (2.6)%
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(1)State taxes in Texas, Oregon, and DC make up a majority (greater than 50 percent) of the tax effect in this category.

The reconciliation between the statutory federal income tax and the Company’s effective tax rates as a percentage of loss before provision for income taxes for the years ended January 31, 2025 and 2024 were as follows:
Year Ended January 31,
20252024
Federal tax rate21.0 %21.0 %
Stock-based compensation expense(3.3)(3.6)
Change in valuation allowance(21.2)(21.4)
Research and development credits7.4 3.5 
U.S. taxation of foreign income and payments(3.9)— 
Other(1.9)(1.0)
Effective income tax rate(1.9)%(1.5)%
Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended January 31, 2026 is as follows (in thousands):
Year Ended January 31,
2026
US federal
$— 
US state and local
204 
Foreign
Canada
3,254 
Other
1,567 
Total
$5,025 
The major components of deferred tax assets (liabilities) were as follows (in thousands):
As of January 31,
20262025
Deferred tax assets:
Net operating loss carryforwards$384,696 $284,870 
Tax credit carryforwards149,433 123,900 
Stock-based compensation8,623 12,090 
Reserves and accrued expenses7,877 6,815 
Operating lease liabilities48,065 52,849 
R&D expense capitalization under Sec. 17494,996 169,447 
Other23 34 
Total deferred tax assets693,713 650,005 
Valuation allowance(654,220)(601,313)
Total deferred tax assets, net of valuation allowance39,493 48,692 
Deferred tax liabilities:
Right of use asset(30,481)(39,286)
Deferred commissions(9,253)(8,634)
Depreciation and amortization(1,749)(2,354)
Total deferred tax liabilities(41,483)(50,274)
Net deferred tax liabilities$(1,990)$(1,582)
Deferred tax assets and liabilities are presented in the accompanying consolidated balance sheet within other assets and other liabilities. The valuation allowance increased by $52.9 million, $68.9 million, and $61.9 million during the years ended January 31, 2026, 2025, and 2024, respectively. The increase in the valuation allowance during the years ended January 31, 2026, 2025, and 2024 were primarily driven by tax credits and Sec. 174 deferred tax assets generated in the United States. As of January 31, 2026, 2025, and 2024, the Company believes it is not more likely than not that the deferred tax assets will be fully realizable and continues to maintain a full valuation allowance against its net deferred tax assets.
As of January 31, 2026, the Company had aggregate federal and state net operating loss carryforwards of $1,588.0 million and $819.0 million, respectively. The federal and state net operating losses, if not used, will begin to expire in 2029. Federal net operating losses generated after January 31, 2018 will carry forward indefinitely.
As of January 31, 2026, the Company has federal and California research and development tax credit carryforwards of $133.4 million and $82.8 million, respectively. The federal research and development tax credits, if not used, will begin to expire in 2030, while the state tax credit carryforwards may be carried forward indefinitely.
The Tax Reform Act of 1986 limits the use of net operating loss and tax credit carryforwards in certain situations where changes occur in the stock ownership of a company. Under Section 382 of the Internal Revenue Code of 1986, as amended, the Company’s ability to utilize net operating loss carryforwards or other tax attributes in any taxable year may be limited if the Company has experienced an “ownership change.” Generally, a Section 382 “ownership change” occurs if one or more stockholders or groups of stockholders who owns at least 5% of a corporation’s stock increases its ownership by more than 50 percentage points over its lowest ownership percentage within a specified testing period. Similar rules may apply under state tax laws. The Company has completed a Section 382 study of transactions in its stock through January 31, 2020. The study concluded that the Company has experienced ownership changes since inception and that its utilization of net operating loss carryforwards will be subject to annual limitations. However, it is not expected that the annual limitations will result in the expiration of tax attribute carryforwards prior to utilization.
Under the Tax Cuts and Jobs Act of 2017 (“TCJA”), foreign research and development costs are no longer fully deductible and are required to be capitalized and amortized for U.S. tax purposes effective January 1, 2022. This tax law change did not result in any U.S. federal tax liability. It did result in incremental state tax liability and expense due to limitations on the use of existing state net operating loss carryforwards. The TCJA also included a tax on global intangible low-taxed income (“GILTI”) earned by foreign subsidiaries. We elected to account for the income tax effects of GILTI as a period cost in the year the tax is incurred.
On July 4, 2025, the United States enacted federal tax legislation commonly referred to as the One Big Beautiful Bill Act (the “OBBB Act”). Included in this legislation are provisions that allow for the immediate expensing of domestic research and development expenses, permanent extensions and modifications of certain provisions of the 2017 Tax Cuts and Jobs Act, and modifications to the U.S. international tax system. The Company evaluated the impact of the OBBB Act on its tax provision, valuation allowance, and uncertain tax positions. The OBBB Act did not have a material impact on the Company's financial statements. The Company maintains a full valuation allowance, and any change in net deferred tax assets from the OBBB Act would be accompanied by a corresponding adjustment to the valuation allowance.
The Pillar Two Global Anti-Base Erosion rules issued by the Organization for Economic Co-operation and Development (“OECD”), a global policy forum, introduced a global minimum tax of 15%. Nearly all OECD member jurisdictions have agreed in principle to adopt the OECD’s Pillar Two provisions, though implementation timelines vary. Numerous jurisdictions, including some jurisdictions where the Company operates, have enacted these rules, with many taking effect as of January 1, 2024. The Company is not currently subject to these rules but is continuing to evaluate the Pillar Two Framework and its potential impact on future periods.
Foreign withholding taxes have not been provided for the cumulative undistributed earnings of the Company’s foreign subsidiaries as of January 31, 2026 due to the Company’s intention to permanently reinvest such earnings.
No liability related to uncertain tax positions is recorded in the financial statements due to the fact the liabilities have been netted against deferred attribute carryovers.
A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits was as follows (in thousands):
As of January 31,
20262025
Balance at the beginning of the year$44,846 $34,960 
Increases - current period tax positions8,294 7,387 
Increases - prior period tax positions907 2,499 
Balance at the end of the year$54,047 $44,846 
The Company had no accrued interest and penalties related to unrecognized tax benefits as of January 31, 2026 or January 31, 2025. As of January 31, 2026, there are no unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate. The Company does not expect that its uncertain tax positions will materially change in the next 12 months.
The Company files federal and state tax returns in the United States and in various foreign jurisdictions. The Company’s tax years since inception are open to examination by federal and state taxing authorities, and the tax years 2020 and forward remain open in various foreign jurisdictions.