Income Taxes

3 Months Ended

Jul. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

General. The Company’s effective income tax rate on continuing operations was 28.7% and 26.8% for the three months ended July 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 three months ended July 31, 2025 and 2024 was primarily due to the impact of state taxes and other permanent tax adjustments.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA contains numerous amendments to federal income tax provisions including the restoration of favorable tax treatment for certain business provisions, the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 and modifications to the international tax framework. There are multiple effective dates beginning in 2025 through 2027. The Company is currently evaluating the impact of the OBBBA on its consolidated financial statements, but does not expect the OBBBA to have a material impact on its estimated annual effective tax rate in fiscal 2026.

Valuation allowance. The Company had a valuation allowance of $11.9 million and $11.8 million against its deferred tax assets as of July 31, 2025 and April 30, 2025, 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, 2025 or April 30, 2025.