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v3.25.2

Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2025
Income Tax Disclosure [Abstract] |
Summary of Domestic and Foreign Components of Income Before Income Tax Provision | The components of income before income tax provision for the fiscal years ended June 30, 2025, 2024, and 2023 are as follows (in thousands):
| Years Ended June 30,
| 2025 |  | 2024 |  | 2023
United States | $ | 1,064,753 |  |  | $ | 1,110,906 |  |  | $ | 632,237 |
Foreign | 147,163 |  |  | 103,233 |  |  | 122,060 |
Income before income tax provision | $ | 1,211,916 |  |  | $ | 1,214,139 |  |  | $ | 754,297 |
Summary of Income Tax Provision | The income tax provision for the fiscal years ended June 30, 2025, 2024, and 2023, consists of the following (in thousands):
| Years Ended June 30,
| 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |
Federal | $ | 266,228 |  |  | $ | 173,838 |  |  | $ | 149,217 |
State | 36,749 |  |  | 20,969 |  |  | 23,096 |
Foreign | 68,512 |  |  | 36,986 |  |  | 31,063 |
| 371,489 |  |  | 231,793 |  |  | 203,376 |
Deferred: |  |  |  |  |
Federal | (161,039) |  |  | (162,286) |  |  | (80,975) |
State | (11,983) |  |  | (5,405) |  |  | (9,633) |
Foreign | (41,616) |  |  | (808) |  |  | (2,102) |
| (214,638) |  |  | (168,499) |  |  | (92,710) |
Income tax provision | $ | 156,851 |  |  | $ | 63,294 |  |  | $ | 110,666 |
Summary of Deferred Tax Assets and Liabilities | Our net deferred tax assets as of June 30, 2025 and 2024 consist of the following (in thousands):
| June 30,
| 2025 |  | 2024
Capitalized research and development costs | $ | 334,534 |  |  | $ | 240,489 |
Research and development credits | 76,013 |  |  | 56,707 |
Deferred revenue | 64,119 |  |  | 35,815 |
Convertible Notes | 52,552 |  |  | 31,819 |
Inventory valuation | 87,373 |  |  | 33,255 |
Stock-based compensation | 32,301 |  |  | 16,389 |
Lease obligations | 67,620 |  |  | 7,274 |
Warranty accrual | 3,585 |  |  | 3,737 |
Accrued vacation and bonus | 6,733 |  |  | 3,668 |
Bad debt and other reserves | 4,809 |  |  | 2,597
Marketing fund accrual | 4,388 |  |  | 2,102 |
Other | 24,581 |  |  | 4,910 |
Total gross deferred income tax assets | 758,608 |  |  | 438,762 |
Less valuation allowance | (78,934) |  |  | (59,841) |
Total deferred tax assets | 679,674 |  |  | 378,921 |
Right of use asset | (65,946) |  |  | (7,005) |
Depreciation and amortization | (6,312) |  |  | (6,744) |
Total deferred tax liabilities | (72,258) |  |  | (13,749) |
Deferred income tax assets, net | $ | 607,416 |  |  | $ | 365,172 |
Summary of Reconciliation of Effective Income Tax Rate | The following is a reconciliation for the fiscal years ended June 30, 2025, 2024, and 2023, of the statutory rate to our effective federal tax rate:
|  | Years Ended June 30,
|  | 2025 |  | 2024 |  | 2023
Income tax provision at statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income tax, net of federal tax benefit |  | 1.1 |  |  | 1.0 |  |  | 1.1 |
Foreign rate differential |  | 0.5 |  |  | 0.2 |  |  | 0.8 |
Research and development tax credit |  | (3.8) |  |  | (6.0) |  |  | (3.3) |
Uncertain tax positions, net of (settlement) with Tax Authorities |  | 0.1 |  |  | 1.1 |  |  | 0.1 |
Foreign derived intangible / Subpart F income inclusion |  | (2.5) |  |  | (2.2) |  |  | (1.9) |
Stock-based compensation |  | (4.5) |  |  | (11.8) |  |  | (3.4) |
Provision to return true-up |  | (0.1) |  |  | (0.1) |  |  | (0.1) |
Officer Comp IRC section 162(m) limitation |  | 0.9 |  |  | 1.8 |  |  | 0.2 |
Others, net |  | 0.2 |  |  | 0.2 |  |  | 0.2 |
Effective tax rate |  | 12.9 | % |  | 5.2 | % |  | 14.7 | %
Summary of Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits (in thousands):
| Gross* Unrecognized Income Tax Benefits
Balance at June 30, 2022 | $ | 38,001 |
Gross increases: |
For current year’s tax positions | 6,632 |
For prior years’ tax positions | 1,616 |
Gross decreases: |
Decreases due to settlements with taxing authority | (2,077) |
Decreases due to lapse of statute of limitations | (1,429) |
Balance at June 30, 2023 | 42,743 |
Gross increases: |
For current year’s tax positions | 19,577 |
For prior years’ tax positions | 3,076 |
Gross decreases: |
Decreases due to settlements with taxing authority | (8,981) |
Decreases due to lapse of statute of limitations | (2,974) |
Balance at June 30, 2024 | 53,441 |
Gross increases: |
For current year’s tax positions | 12,283 |
For prior years’ tax positions | 2,333 |
Gross decreases: |
Decreases due to settlements with taxing authority | (2,782) |
Decreases due to lapse of statute of limitations | (3,706) |
Balance at June 30, 2025 | $ | 61,569 |
*Excludes interest, penalties, federal benefit of state reserves

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