Balance Sheet Components

6 Months Ended

Dec. 31, 2024

Balance Sheet Related Disclosures [Abstract]

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 the 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