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

Income Taxes (Tables)

v3.26.1
Income Taxes (Tables)
 12 Months Ended
Jan. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Domestic and Foreign Component of Loss Before Provision for Income Taxes
The domestic and foreign components of the income before provision (benefit) for income taxes was as follows:
Year Ended January 31,
(in thousands) 2026 2025 2024
Domestic $ 30,921  $ 18,464  $ 32,033 
Foreign 35,868  29,828  28,489 
Total $ 66,789  $ 48,292  $ 60,522 
Schedule of Components of Income Tax Expense (Benefit)
The provision (benefit) for income taxes consisted of the following:
Year Ended January 31,
(in thousands) 2026 2025 2024
Current tax provision:
State $ 328  $ 1,834  $ 207 
Foreign 23,325  12,875  11,788
Total current tax provision
 23,653  14,709  11,995 
Deferred tax provision (benefit):
Federal 17,522  (69,072) 94 
State 3,290  (17,795) 108 
Foreign (581) (1,159) (3,078)
Total deferred tax provision (benefit) 20,231  (88,026) (2,876)
Total provision (benefit) for income taxes $ 43,884  $ (73,317) $ 9,119 
Schedule of Effective Income Tax Rate Reconciliation
After adoption of ASU 2023-09, a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate (“ETR”) for the year ended January 31, 2026 was as follows:
(in thousands) Income Tax Provision ETR
U.S. federal statutory rate $ 14,026  21.0  %
U.S. state and local income taxes, net of U.S. federal income tax effect(1)
3,464 5.2 
Foreign tax effects
India
Changes in methods of accounting 889 1.3 
Withholding taxes 810 1.2 
Statutory income tax rate differential 722 1.1 
Kingdom of Saudi Arabia - withholding taxes 1,936 2.9 
Brazil - withholding taxes 1,725 2.6 
Other foreign jurisdictions 1,125 1.7 
Effect of cross-border tax laws - impact of disregarded entity elections 3,627 5.4 
Nontaxable and nondeductible items
Excess tax deficiencies on share-based compensation 5,056 7.6 
Non-deductible officer’s compensation 2,696 4.0 
Other 836 1.3 
Changes in unrecognized tax benefits 6,972 10.4 
Total $ 43,884  65.7  %
(1) The four largest state and local jurisdictions consist of California, New York, New York City and Illinois.
Before the adoption of ASU 2023-09, a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate was as follows:
Year Ended January 31,
2025 2024
U.S. federal statutory rate 21.0  % 21.0  %
Effect of:
U.S. state taxes, net of U.S. federal benefit 2.6  2.4 
Foreign taxes in excess of the U.S. rate differential 1.4  1.6 
Foreign withholding taxes 6.3  6.1 
Non-deductible expenses 4.2  0.3 
Non-deductible officer's compensation 7.9  16.3 
Changes in valuation allowance (199.5) (31.3)
Excess tax benefits related to share-based compensation (4.1) (3.6)
Global Intangible Low Taxed Income (GILTI) inclusion —  0.3 
Impact of disregarded entity elections 7.0  — 
Other 1.4  2.0 
Effective tax rate (151.8) % 15.1  %
Schedule of Cash Flow, Supplemental Disclosures
A reconciliation of the income taxes paid by the Company for the year ended January 31, 2026 were as follows:
(in thousands)
U.S. state and local $ 3,868 
Foreign
Brazil 7,888
India 5,410
Kingdom of Saudi Arabia 2,450
Other 5,164
Total $ 24,780 
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows:
January 31,
(in thousands) 2026 2025
Deferred tax assets:
Net operating loss carryforward $ 82,268  $ 90,177 
Accrued compensation 1,905  6,911 
Accrued commissions 3,268  4,847 
Fixed assets and intangible assets 5,714  3,486 
Allowance for credit losses 1,959  2,137 
Deferred revenue 3,203  2,012 
Stock-based compensation 9,453  8,800 
Operating lease liabilities 10,941  11,719 
Other 4,336  8,751 
Total deferred tax assets 123,047  138,840 
Less valuation allowance —  (705)
Deferred tax assets, net of valuation allowance 123,047  138,135 
Deferred tax liabilities
Capitalized commission costs (41,589) (34,834)
Operating lease ROU asset (9,979) (10,638)
Other (1,147) (2,329)
Total deferred tax liabilities (52,715) (47,801)
Net deferred tax assets(1)
$ 70,332  $ 90,334 
(1) Deferred tax liabilities of $0.1 million and nil are recorded within other liabilities, non-current on the consolidated balance sheets as of January 31, 2026 and 2025, respectively.
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending balance of total gross unrecognized tax benefits for the year ended January 31, 2026:
Year Ended January 31,
(in thousands) 2026 2025 2024
Balance, beginning of period $ 3,102  $ 2,436  $ 1,728 
Tax positions taken during a prior year:
Gross increases 4,848  —  — 
Gross decreases (4,848) —  — 
Tax positions taken during the current year:
Gross increases 2,013  666  708 
Balance, end of period $ 5,115  $ 3,102  $ 2,436