Income Taxes

3 Months Ended

Jul. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

General. The Company’s effective income tax rate on continuing operations was 26.8% and 23.5% for the three months ended July 31, 2024 and 2023, respectively. The difference in the effective income tax rate over the U.S. federal statutory rate of 21.0% for the three months ended July 31, 2024 and 2023 was primarily due to the impact of foreign taxes, state taxes and equity compensation.

Valuation allowance. The Company had a valuation allowance of $12.7 million and $12.5 million against its deferred tax assets as of July 31, 2024 and April 30, 2024, respectively. To the extent the Company generates sufficient taxable income in the future to utilize the tax benefits of the net deferred tax assets on which a valuation allowance is recorded, the effective tax rate may decrease as the valuation allowance is reversed.

Uncertain tax positions. The Company had no uncertain tax positions as of July 31, 2024 or April 30, 2024.