Income Taxes

9 Months Ended

Jan. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

General. The Company’s effective income tax rate on continuing operations was 33.0% and 24.5% for the nine months ended January 31, 2025 and 2024, respectively. The difference in the effective income tax rate over the U.S. federal statutory rate of 21.0% for the nine months ended January 31, 2025 and 2024 was primarily due to the impact of the impairment of goodwill which was non-deductible for income tax purposes, foreign taxes, state taxes and equity compensation.

Valuation allowance. The Company had a valuation allowance of $12.2 million and $12.5 million against its deferred tax assets as of January 31, 2025 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 January 31, 2025 or April 30, 2024.