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Balance Sheet Components | 6 Months Ended
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Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract] |
Balance Sheet Components | Balance Sheet Components Accounts Receivable, net Our accounts receivable consist primarily of amounts due from payment processors, merchant partners, affiliate network partners and servicing fees due from third-party loan owners. For each of these groups, we evaluate accounts receivable to determine management’s current estimate of expected credit losses based on historical experience and future expectations and record an allowance for credit losses. Our allowance for credit losses with respect to accounts receivable was $17.8 million and $14.9 million as of December 31, 2024 and June 30, 2024, respectively. Property, Equipment and Software, net Property, equipment and software, net consisted of the following (in thousands):
|  |  |  | December 31, 2024 |  | June 30, 2024
Internally developed software |  |  |  | $ | 804,651 |  |  | $ | 630,129 |
Leasehold improvements |  |  |  | 21,085 |  |  | 21,023 |
Computer equipment |  |  |  | 10,373 |  |  | 9,827 |
Furniture and equipment |  |  |  | 9,001 |  |  | 8,913 |
Total property, equipment and software, at cost |  |  |  | $ | 845,111 |  |  | $ | 669,892 |
Less: Accumulated depreciation and amortization |  |  |  | (338,777) |  |  | (242,206) |
Total property, equipment and software, net |  |  |  | $ | 506,334 |  |  | $ | 427,686 |
Depreciation and amortization expense on property, equipment and software was $54.3 million and $100.4 million for the three and six months ended December 31, 2024, respectively, and $36.5 million and $62.5 million for the three and six months ended December 31, 2023, respectively. No impairment losses related to property, equipment and software were recorded during the three and six months ended December 31, 2024 and 2023. Goodwill and Intangible Assets The changes in the carrying amount of goodwill during the six months ended December 31, 2024 were as follows (in thousands):
Balance as of June 30, 2024 |  | $ | 533,439 |
Adjustments (1) |  | (11,740) |
Balance as of December 31, 2024 |  | $ | 521,699 |
(1)Adjustments to goodwill during the six months ended December 31, 2024 primarily pertained to foreign currency translation adjustments. No impairment losses related to goodwill were recorded during the three and six months ended December 31, 2024. During the three and six months ended December 31, 2023, we recognized goodwill disposal losses of $1.0 million included in general and administrative expenses within the interim condensed consolidated statements of operations and comprehensive income (loss). Intangible assets consisted of the following (in thousands):
|  | December 31, 2024
|  | Gross |  | Accumulated Amortization |  | Net |  | Weighted Average Remaining Useful Life (in years)
Merchant relationships |  | $ | 37,417 |  |  | $ | (37,417) |  |  | $ | — |  |  | 0.0
Developed technology |  | 39,167 |  |  | (39,064) |  |  | 103 |  |  | 0.1
Assembled workforce |  | 12,490 |  |  | (12,490) |  |  | — |  |  | 0.0
Trademarks and domains, definite |  | 1,404 |  |  | (1,223) |  |  | 181 |  |  | 0.7
Trademarks, licenses and domains, indefinite |  | 11,559 |  |  | — |  |  | 11,559 |  |  | Indefinite
Other intangibles |  | 350 |  |  | — |  |  | 350 |  |  | Indefinite
Total intangible assets |  | $ | 102,387 |  |  | $ | (90,194) |  |  | $ | 12,193 |  |  |
|  | June 30, 2024
|  | Gross |  | Accumulated Amortization |  | Net |  | Weighted Average Remaining Useful Life (in years)
Merchant relationships |  | $ | 37,847 |  |  | $ | (36,741) |  |  | $ | 1,106 |  |  | 0.1
Developed technology |  | 39,444 |  |  | (39,311) |  |  | 133 |  |  | 0.0
Assembled workforce |  | 12,490 |  |  | (12,490) |  |  | — |  |  | 0.0
Trademarks and domains, definite |  | 1,450 |  |  | (1,165) |  |  | 285 |  |  | 1.0
Trademarks, licenses and domains, indefinite |  | 11,628 |  |  | — |  |  | 11,628 |  |  | Indefinite
Other intangibles |  | 350 |  |  | — |  |  | 350 |  |  | Indefinite
Total intangible assets |  | $ | 103,209 |  |  | $ | (89,707) |  |  | $ | 13,502 |  |  |
Amortization expense for intangible assets was $0.6 million and $1.2 million for t he three and six months ended December 31, 2024, respectively, and $2.9 million and $17.1 million for the three and six months ended December 31, 2023, respectively. No impairment losses related to intangible assets were recorded during the three and six months ended December 31, 2024 and 2023. The expected future amortization expense of these intangible assets as of December 31, 2024 is as follows, by fiscal year (in thousands):
2025 (remaining six months) |  | $ | 120 |
2026 |  | 149 |
2027 |  | 15 |
2028 |  | — |
2029 and thereafter |  | — |
Total amortization expense |  | $ | 284 |
Commercial Agreement Assets In November 2021, we granted warrants in connection with our commercial agreements with certain subsidiaries of Amazon.com, Inc. (“Amazon”). The warrants were granted in exchange for certain performance provisions and the benefit of acquiring new users. We recognized an asset of $133.5 million associated with the portion of the warrants that were fully vested upon grant. The asset was valued based on the fair value of the warrants and represents the probable future economic benefit to be realized over the expected benefit period of four years. For the three and six months ended December 31, 2024, we recognized amortization expense of $5.2 million and $10.4 million, respectively, and $10.4 million and $20.9 million for the three and six months ended December 31, 2023, respectively, in our interim condensed consolidated statements of operations and comprehensive income (loss) as a component of sales and marketing expense. Refer to Note 13. Stockholders’ Equity for further discussion of the warrants. In July 2020, we recognized an asset in connection with a commercial agreement with Shopify Inc. (“Shopify”), in which we granted warrants in exchange for the opportunity to acquire new merchant partners. This asset represents the probable future economic benefit to be realized over the expected benefit period and is valued based on the fair value of the warrants on the grant date. We recognized an asset of $270.6 million associated with the fair value of the warrants, which were fully vested as of December 31, 2024. During fiscal year 2022, the expected benefit period was extended from four to six years upon the execution of the commercial agreement term. The benefit period is reevaluated each reporting period. For both the three and six months ended December 31, 2024 and December 31, 2023 , we recorded amortization expense related to the commercial agreement asset of $9.0 million and $18.1 million, in our interim condensed consolidated statements of operations and comprehensive income (loss) as a component of sales and marketing expense. Other Assets Other assets consisted of the following (in thousands):
|  | December 31, 2024 |  | June 30, 2024 |  |
Processing reserves |  | $ | 92,550 |  |  | $ | 55,754 |  |  |
Risk sharing asset |  | 44,969 |  |  | 33,884 |  |  |
Equity securities, at cost |  | 41,927 |  |  | 37,806 |  |  |
Prepaid expenses |  | 33,381 |  |  | 28,799 |  |  |
Prepaid payroll taxes for stock-based compensation |  | 23,219 |  |  | 21,395 |  |  |
Fixed term deposit |  | 22,028 |  |  | 35,203 |  |  |
Foreign deferred tax asset |  | 17,881 |  |  | 21,206 |  |  |
Operating lease right-of-use assets |  | 17,472 |  |  | 21,863 |  |  |
Other receivables |  | 13,164 |  |  | 18,263 |  |  |
Derivative instruments |  | 7,676 |  |  | 17,207 |  |  |
Other assets |  | 10,690 |  |  | 7,960 |  |  |
Total other assets |  | $ | 324,957 |  |  | $ | 299,340 |  |  |
Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands):
|  | December 31, 2024 |  | June 30, 2024
Accrued expenses |  | $ | 74,200 |  |  | $ | 59,613 |
Operating lease liability |  | 32,033 |  |  | 39,493 |
Collateral held for derivative instruments |  | 8,174 |  |  | 17,643 |
Other liabilities |  | 41,161 |  |  | 30,680 |
Total accrued expenses and other liabilities |  | $ | 155,568 |  |  | $ | 147,429 |

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