Quarterly report [Sections 13 or 15(d)]

Note 11 - Income Taxes

v3.26.1
Note 11 - Income Taxes
 6 Months Ended
Apr. 30, 2026
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 11. Income Taxes

 

The following table summarizes income before income taxes and income tax expense for the three and six months ended April 30, 2026 and 2025:

 

   

Three Months Ended April 30,

    

Six Months Ended April 30,

  

(in thousands)

  

2026

    

2025

    

2026

    

2025

  
                                 

Income (loss) before income taxes

   $ 3,885     $ (6 )   $ 341     $ (3,681 )

Income tax expense (benefit)

   $ 1,337     $ (2 )   $ 235     $ (1,038 )

 

For the three months ended April 30, 2026 and 2025, the Company’s effective tax rate was 34.4% and 33.3%, respectively. The comparability of the effective tax rate was largely driven by an increase in discrete items including prior period state tax adjustments.

 

For the six months ended April 30, 2026 and 2025, the Company’s effective tax rate was 68.9% and 28.2%, respectively. The comparability of the effective tax rate was largely driven by discrete items. While these items are not quantitatively significant, the relative proportionality to income before income taxes amplified their relative impact for the six months ended April 30, 2026 compared to April 30, 2025.