Quarterly report [Sections 13 or 15(d)]

Note 11 - Income Taxes

v3.26.1
Note 11 - Income Taxes
 9 Months Ended
Jul. 31, 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 nine months ended July 31, 2026 and 2025:

 

   

Three Months Ended July 31,

    

Nine Months Ended July 31,

  

(in thousands)

  

2026

    

2025

    

2026

    

2025

  
                                 

Income before income taxes

   $ 6,892     $ 5,032     $ 7,233     $ 1,351  

Income tax expense

   $ 1,961     $ 1,333     $ 2,196     $ 295  

 

For the three months ended July 31, 2026 and 2025, the Company’s effective tax rate was 28.5% and 26.5%, respectively. The comparability of the effective tax rate was largely driven by less favorable impacts from permanent items, including taxes on foreign earnings and the impacts from share-based compensation limitations.

 

For the nine months ended July 31, 2026 and 2025, the Company’s effective tax rate was 30.4% and 21.8%, respectively. The comparability of the effective tax rate between both periods was primarily attributable to excess tax benefits recognized from stock vesting and option exercises in fiscal 2025.