v3.25.4
Fair Value of Financial Assets and Liabilities (Tables)
 6 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2025 and June 30, 2025 (in thousands):
December 31, 2025
Level 1Level 2Level 3Total
Assets:
Cash and cash equivalents:
Money market funds$63,182 $— $— $63,182 
Securities, available for sale:
Certificates of deposit— 36,552 — 36,552 
Corporate bonds— 242,177 — 242,177 
Commercial paper— 63,943 — 63,943 
Agency bonds— 5,051 — 5,051 
Municipal bonds— 8,435 — 8,435 
Government bonds:
Non-US— 2,181 — 2,181 
US— 274,274 — 274,274 
Securitization notes receivable and residual trust certificates— — 80,080 80,080 
Residual interests in structured transactions— — 5,436 5,436 
Other— — 5,246 5,246 
Servicing assets— — 965 965 
Interest rate derivatives— 1,222 — 1,222 
Risk sharing asset— — 38,992 38,992 
Total assets$63,182 $633,835 $130,719 $827,736 
Liabilities:
Servicing liabilities$— $— $2 $2 
Performance fee liability— — 2,377 2,377 
Profit share liability— — 4,713 4,713 
Interest rate derivatives— 389 — 389 
Total liabilities$— $389 $7,092 $7,481 
June 30, 2025
Level 1Level 2Level 3Total
Assets:
Cash and cash equivalents:
Money market funds$70,920 $— $— $70,920 
Agency Bonds— 3,493 — 3,493 
Commercial paper— 12,564 — 12,564 
Government bonds- US— 4,995 — 4,995 
Securities, available for sale:
Certificates of deposit— 39,008 — 39,008 
Corporate bonds— 264,199 — 264,199 
Commercial paper— 126,761 — 126,761 
Agency bonds— 7,854 — 7,854 
Municipal bonds— 6,076 — 6,076 
Government bonds:
Non-US— 5,340 — 5,340 
US— 344,434 — 344,434 
Securitization notes receivable and residual trust certificates— — 75,469 75,469 
Residual interests in structured transactions— — 2,284 2,284 
Servicing assets— — 906 906 
Interest rate derivatives— 2,644 — 2,644 
Risk sharing asset— — 43,179 43,179 
Total assets$70,920 $817,368 $121,838 $1,010,126 
Liabilities:
Servicing liabilities$— $— $41 $41 
Performance fee liability— — 1,870 1,870 
Profit share liability— — 9,323 9,323 
Risk sharing liability— — 90 90 
Interest rate derivatives— 15 — 15 
Total liabilities$— $15 $11,324 $11,339 
Schedule of Aggregate Fair Value of Servicing Assets
The following table summarizes the activity related to the aggregate fair value of our servicing assets (in thousands):
Three Months Ended December 31,Six Months Ended December 31,
2025202420252024
Fair value at beginning of period$667 $435 $906 $574 
Initial transfers of financial assets254 230 254 230 
Subsequent changes in fair value44 141 (195)2 
Fair value at end of period$965 $806 $965 $806 
Schedule of Aggregate Fair Value of Servicing Liabilities
The following table summarizes the activity related to the aggregate fair value of our servicing liabilities (in thousands):
Three Months Ended December 31,Six Months Ended December 31,
2025202420252024
Fair value at beginning of period$13 $438 $41 $743 
Initial transfers of financial liabilities— — — — 
Subsequent changes in fair value(11)(201)(39)(506)
Fair value at end of period$2 $237 $2 $237 
Schedule of Significant Unobservable Inputs Used for Level 3 Fair Value Measurement
The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of December 31, 2025 and June 30, 2025:

December 31, 2025
Unobservable InputMinimumMaximum
Weighted Average (1)
Servicing assetsDiscount Rate30.00 %30.00 %30.00 %
Adequate Compensation2.00 %2.00 %2.00 %
Default Rate10.65 %16.39 %13.24 %
Servicing liabilitiesDiscount Rate30.00 %30.00 %30.00 %
Adequate Compensation2.00 %2.00 %2.00 %
Default Rate6.43 %6.43 %6.43 %
June 30, 2025
Unobservable InputMinimumMaximum
Weighted Average (1)
Servicing assetsDiscount Rate30.00 %30.00 %30.00 %
Adequate Compensation2.00 %2.00 %2.00 %
Default Rate10.24 %15.68 %12.04 %
Servicing liabilitiesDiscount Rate30.00 %30.00 %30.00 %
Adequate Compensation2.00 %2.00 %2.00 %
Default Rate3.71 %7.89 %5.26 %
(1)Unobservable inputs were weighted by relative fair value
The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability as of December 31, 2025 and June 30, 2025:

December 31, 2025
Unobservable InputMinimumMaximum
Weighted Average (2)
Discount Rate7.00%10.00%8.89%
Refund Rate1.50%1.50%1.50%
Loss Rate(1)
0.84%4.65%3.15%
June 30, 2025
Unobservable InputMinimumMaximum
Weighted Average (2)
Discount Rate7.25%10.00%9.23%
Refund Rate1.50%1.50%1.50%
Loss Rate(1)
0.87%4.65%3.07%
(1)The Loss Rate is net of recoveries
(2)Unobservable inputs were weighted by remaining principal balances
The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the notes receivable and residual trust certificates as of December 31, 2025 and June 30, 2025:

December 31, 2025
Unobservable InputMinimumMaximum
Weighted Average (2)
Discount Rate3.47%55.11%6.04%
Default Rate(1)
0.99%9.38%8.01%
Prepayment Rate14.81%26.00%23.63%
June 30, 2025
Unobservable InputMinimumMaximum
Weighted Average (2)
Discount Rate2.86%30.29%6.89%
Default Rate0.94%8.40%7.65%
Prepayment Rate21.46%24.85%23.14%
(1)The cumulative loss relative to the outstanding balance as of December 31, 2025
(2)Unobservable inputs were weighted by relative fair value
The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the residual interests in structured transactions as of December 31, 2025 and June 30, 2025:

December 31, 2025
Unobservable InputMinimumMaximum
Weighted Average (1)
Discount Rate20.00%20.00%20.00%
Default Rate9.31%9.31%9.31%
Prepayment Rate47.89%47.89%47.89%
June 30, 2025
Unobservable InputMinimumMaximum
Weighted Average (1)
Discount Rate20.00%20.00%20.00%
Default Rate8.88%8.88%8.88%
Prepayment Rate48.85%48.85%48.85%
(1)Unobservable inputs were weighted by relative fair value
The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the profit sharing liability as of December 31, 2025 and June 30, 2025:

December 31, 2025
Unobservable InputMinimumMaximum
Weighted Average (1)
Discount Rate30.00%30.00%30.00%
Program Profitability1.00%3.28%2.81%
June 30, 2025
Unobservable InputMinimumMaximum
Weighted Average (1)
Discount Rate30.00%30.00%30.00%
Program Profitability0.23%3.28%2.86%
(1)Unobservable inputs were weighted by relative fair value
The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the risk sharing arrangements as of December 31, 2025 and June 30, 2025:

December 31, 2025
Unobservable InputMinimumMaximum
Weighted Average (1)
Risk sharing assetsDiscount Rate6.88%20.00%17.68%
Loss Rate3.34%4.94%4.15%
Prepayment Rate18.34%20.96%19.68%
Risk sharing liabilitiesDiscount Rate20.00%20.00%20.00%
Loss Rate3.48%5.27%4.46%

June 30, 2025
Unobservable InputMinimumMaximum
Weighted Average (1)
Risk sharing assetsDiscount Rate20.00%20.00%20.00%
Loss Rate3.32%4.91%4.13%
Prepayment Rate19.84%22.89%21.34%
Risk sharing liabilitiesDiscount Rate20.00%20.00%20.00%
Loss Rate3.47%5.35%4.42%
(1)Unobservable inputs were weighted by principal balance of loans sold under each cohort
The following table summarizes the effect that adverse changes in estimates would have on the fair value of the risk sharing assets and liabilities given hypothetical changes in significant unobservable inputs (in thousands):

December 31, 2025June 30, 2025
Risk sharing assets
Prepayment Rate assumption:
Prepayment Rate decrease of 25%$(1,813)$(1,896)
Prepayment Rate decrease of 50%$(3,751)$(3,923)
Loss Rate assumption:
Loss Rate increase of 25%$(14,821)$(15,150)
Loss Rate increase of 50%$(29,640)$(30,277)
Discount Rate assumption:
Discount Rate increase of 25%$(583)$(903)
Discount Rate increase of 50%$(1,130)$(1,745)
Risk sharing liabilities
Loss Rate assumption:
Loss Rate increase of 25%$5,384 $16,946 
Loss Rate increase of 50%$10,534 $24,676 
Discount Rate assumption:
Discount Rate increase of 25%$— $— 
Discount Rate increase of 50%$— $— 
Schedule of Adverse Changes in the Fair Value of Servicing Assets and Liabilities
The following table summarizes the effect that adverse changes in estimates would have on the fair value of the servicing assets and liabilities given hypothetical changes in significant unobservable inputs (in thousands):
December 31, 2025June 30, 2025
Servicing assets
Default Rate assumption:
Default Rate increase of 25%$1 $1 
Default Rate increase of 50%$2 $2 
Adequate Compensation assumption:
Adequate Compensation increase of 10%$(1,511)$(1,439)
Adequate Compensation increase of 20%$(3,021)$(2,879)
Discount Rate assumption:
Discount Rate increase of 25%$(37)$(35)
Discount Rate increase of 50%$(70)$(66)
Servicing liabilities
Default Rate assumption:
Default Rate increase of 25%$— $— 
Default Rate increase of 50%$— $— 
Adequate Compensation assumption:
Adequate Compensation increase of 10%$5,891 $4,593 
Adequate Compensation increase of 20%$11,781 $9,186 
Discount Rate assumption:
Discount Rate increase of 25%$— $(1)
Discount Rate increase of 50%$— $(1)
Schedule of Fair Value of Liabilities
The following table summarizes the activity related to the fair value of the performance fee liability (in thousands):

Three Months Ended December 31,Six Months Ended December 31,
2025202420252024
Fair value at beginning of period$1,975 $1,541 $1,870 $1,503 
Purchases of loans916 566 1,639 1,089 
Settlements paid(689)(501)(1,281)(978)
Subsequent changes in fair value175 167 149 159 
Fair value at end of period$2,377 $1,773 $2,377 $1,773 
The following table summarizes the activity related to the fair value of the notes receivable and residual trust certificates (in thousands):
Three Months Ended December 31,Six Months Ended December 31,
2025202420252024
Fair value at beginning of period$54,263 $38,926 $75,469 $51,670 
Additions44,611 41,943 44,611 41,943 
Cash received (due to payments)(19,758)(12,036)(42,325)(26,419)
Change in unrealized gain (loss)(267)(510)(305)(541)
Accrued interest1,048 931 2,258 2,976 
Reversal of (impairment on) securities available for sale183 (203)372 (578)
Fair value at end of period$80,080 $69,051 $80,080 $69,051 
The following table summarizes the activity related to the fair value of the profit share liability (in thousands):
Three Months Ended December 31,Six Months Ended December 31,
2025202420252024
Fair value at beginning of period$7,592 $2,015 $9,323 $1,974 
Facilitation of loans675 4,238 3,822 5,465 
Actual performance(4,500)(3,271)(9,596)(6,299)
Subsequent changes in fair value946 3,129 1,164 4,971 
Fair value at end of period$4,713 $6,111 $4,713 $6,111 
The following table summarizes the activity related to the fair value of the risk sharing liabilities (in thousands):
Three Months Ended December 31,Six Months Ended December 31,
2025202420252024
Fair value at beginning of period$— $1,801 $90 $918 
Cash settlements— (445)(90)(445)
Subsequent changes in fair value— 142 — 1,025 
Fair value at end of period$— $1,498 $— $1,498 
Schedule of Adverse Changes in the Fair Value of Notes Receivable and Residual Trust Certificates
The following table summarizes the effect that adverse changes in estimates would have on the fair value of the notes receivable and residual trust certificates given hypothetical changes in significant unobservable inputs (in thousands):

December 31, 2025June 30, 2025
Discount Rate Assumption:
Discount Rate increase of 25%$(709)$(727)
Discount Rate increase of 50%$(1,409)$(1,427)
Default Rate assumption:
Default Rate increase of 25%$(3,214)$(2,688)
Default Rate increase of 50%$(4,026)$(3,698)
Prepayment Rate assumption:
Prepayment Rate change of 25%$(164)$(130)
Prepayment Rate change of 50%$(331)$(259)
Schedule of Fair Value of Assets
The following table summarizes the activity related to the fair value of the assets (in thousands):
Three Months Ended December 31, 2025Six Months Ended December 31, 2025
Fair value at beginning of period$4,017 $2,284 
Capital contribution1,124 2,703 
Subsequent changes in fair value294 448 
Fair value at the end of period5,436 5,436 
The following table summarizes the activity related to the fair value of the risk sharing assets (in thousands):
Three Months Ended December 31,Six Months Ended December 31,
2025202420252024
Fair value at beginning of period$41,565 $45,330 $43,179 $33,884 
Initial transfers of financial assets4,761 5,191 11,269 15,568 
Cash settlements(9,126)(5,824)(17,466)(5,824)
Subsequent changes in fair value1,792 272 2,010 1,341 
Fair value at end of period$38,992 $44,969 $38,992 $44,969 
Schedule of Adverse Changes in the Fair Value of Residual Interests in Structured Transactions
The following table summarizes the effect that adverse changes in estimates would have on the fair value of the residual interests in structured transactions given hypothetical changes in significant unobservable inputs (in thousands):

December 31, 2025June 30, 2025
Discount Rate assumption:
Discount Rate increase of 20%$(374)$(181)
Discount Rate increase of 40%$(712)$(343)
Default Rate assumption:
Default Rate increase of 20%$(25)$(28)
Default Rate increase of 40%$(57)$(50)
Prepayment Rate assumption:
Prepayment Rate increase of 20%$(73)$(35)
Prepayment Rate increase of 40%$(134)$(64)
Schedule of Fair Value Hierarchy for Financial Assets and Liabilities Held at Amortized Cost
The following table presents the fair value and our assessment of the classification of this measurement within the fair value hierarchy for financial assets and liabilities held at amortized cost as of December 31, 2025 and June 30, 2025 (in thousands):
December 31, 2025
Carrying AmountLevel 1Level 2Level 3Balance at Fair Value
Assets:
Loans held for sale$6 $— $6 $— $6 
Loans held for investment, net8,295,439 — — 8,970,675 8,970,675 
Total assets$8,295,445 $— $6 $8,970,675 $8,970,681 
Liabilities:
Convertible senior notes, net (1)
$1,127,658 $— $1,241,762 $— $1,241,762 
Notes issued by securitization trusts4,834,736 — — 4,866,377 4,866,377 
Funding debt3,046,846 — — 3,064,040 3,064,040 
Total liabilities$9,009,240 $— $1,241,762 $7,930,417 $9,172,179 
June 30, 2025
Carrying AmountLevel 1Level 2Level 3Balance at Fair Value
Assets:
Loans held for investment, net6,628,606 — — 7,085,840 7,085,840 
Total assets$6,628,606 $— $— $7,085,840 $7,085,840 
Liabilities:
Convertible senior notes, net (1)
$1,153,000 $— $1,205,287 $— $1,205,287 
Notes issued by securitization trusts4,833,855 — — 4,868,980 4,868,980 
Funding debt1,622,808 — — 1,640,765 1,640,765 
Total liabilities$7,609,663 $— $1,205,287 $6,509,745 $7,715,032 
(1)As of December 31, 2025, includes convertible senior notes due 2026 with a carrying amount and fair value of $220.9 million and $211.4 million, respectively, and convertible senior notes due 2029 with a carrying amount and fair value of $906.8 million and $1.0 billion, respectively. As of June 30, 2025, includes convertible senior notes due 2026 with a carrying amount and fair value of $247.9 million and $232.7 million, respectively, and convertible senior notes due 2029 with a carrying amount and fair value of $905.1 million and $972.6 million, respectively. The estimated fair value of the convertible senior notes is determined based on a market approach, using the estimated or actual bids and offers of the notes in an over-the-counter market on the last business day of the period.