Quarterly report [Sections 13 or 15(d)]

Note 9 - Income Taxes

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Note 9 - Income Taxes
 9 Months Ended
Jul. 31, 2025
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 9. Income Taxes

 

The following table summarizes income before income taxes and income tax expense for the three and nine months ended July 31, 2025 and 2024:

 

   

Three Months Ended July 31,

    

Nine Months Ended July 31,

  

(in thousands)

  

2025

    

2024

    

2025

    

2024

  
                                 

Income before income taxes

   $ 5,032     $ 10,641     $ 1,351     $ 11,030  

Income tax expense

   $ 1,333     $ 3,081     $ 295     $ 4,250  

 

For the three months ended July 31, 2025 and 2024, the Company’s effective tax rate was 26.5% and 29.0%, respectively. The comparability of effective tax rates between both periods was primarily impacted by disqualifying dispositions on stock options in fiscal 2025.

 

For the nine months ended July 31, 2025 and 2024, the Company’s effective tax rate was 21.8% and 38.5%, respectively. The comparability of effective tax rates between both periods was primarily impacted by excess tax deficiencies from share-based compensation in fiscal 2024.

 

On July 4, 2025, the U.S. government enacted The One Big Beautiful Bill Act of 2025 which includes, among other provisions, the reinstatement of bonus depreciation on qualified property and modifications to the calculation for excess business interest expense limitation under §163(j) to the current tax estimate. Changes in tax laws may affect recorded deferred tax assets and deferred tax liabilities and our effective tax rate in the future and we continue to evaluate the impacts the new legislation will have on the condensed consolidated financial statements. We do not expect any material change to our effective tax rate or cash flows in the current fiscal year as a result of these changes.