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Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of Income (loss) before income taxes are as follows:
Fiscal Year Ended June 30,
202620252024
(in millions)
United States$90.5 $(91.7)$(416.5)
Foreign(27.4)(23.9)(135.6)
Income (loss) from operations before income taxes$63.1 $(115.6)$(552.1)

The components of Income tax (benefit) expense are as follows:
Fiscal Year Ended June 30,
202620252024
(in millions)
Current:
Federal$— $— $— 
State0.7 0.8 0.8 
Foreign1.7 1.9 — 
2.4 2.7 0.8 
Deferred:
Federal(1.9)— — 
State(0.6)— — 
Foreign— 0.7 (1.0)
(2.5)0.7 (1.0)
Total$(0.1)$3.4 $(0.2)
A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate pursuant to the requirements of ASU 2023-09 for the fiscal year ended June 30, 2026 is as follows:
Fiscal Year Ended June 30, 2026
AmountPercent
(dollars in millions)
Federal income tax rate$13.2 21.0 %
Tax credits
     Research and development credit(7.7)(12.2)
Nontaxable or nondeductible items
     Excess officer’s compensation12.5 19.8 
Share based compensation4.8 7.6 
Change in valuation allowance(32.1)(50.8)
Other1.7 2.7 
State and local income taxes, net of federal benefit(1)
— (0.1)
Foreign tax effects
     United Kingdom
          Valuation allowance3.0 4.8 
Foreign rate differential(1.5)(2.4)
Impairment9.9 15.7 
Other (3.5)(5.5)
     Other foreign jurisdictions(0.5)(0.8)
Effective income tax rate$(0.1)(0.2)%
____________________________
(1) The states and local jurisdictions that contribute to greater than 50% of the tax effect in this category include California.

A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate for the fiscal years ended June 30, 2025 and 2024 is as follows:
Fiscal Year Ended June 30,
20252024
Federal income tax rate21.0 %21.0 %
Permanent differences(4.6)(1.2)
Share based compensation(10.3)(9.2)
Return to provision(0.4)(0.2)
Effects of rates different than statutory0.8 1.0 
State and local income taxes, net of federal benefit0.8 1.7 
Change in valuation allowance(12.0)(13.5)
Rate change0.4 (0.2)
Federal credits4.2 0.5 
State credits(1.1)0.1 
Other(1.7)— 
Effective income tax rate(2.9)%— %

The primary differences from the U.S. statutory rate and the Company’s effective tax rate for the fiscal year ended June 30, 2026 are due to the change in valuation allowance, nontaxable or nondeductible items, and federal credits. The primary differences from the U.S. statutory rate and the Company’s effective tax rate for the fiscal year ended June 30, 2025 were due to the change in valuation allowance, stock-based compensation, permanent differences relating to excess officer compensation, and federal credits. The primary differences from the U.S. statutory rate and the Company’s effective tax rate for the fiscal year ended June 30, 2024 were due to the change in valuation allowance, stock-based compensation, and state and international taxes.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law in the United States, which made permanent or extended many of the provisions from the Tax Cuts and Jobs Act of 2017. The immediate expensing of domestic research and experimental expenditures for tax years beginning after December 31, 2024 is now permanent, as is 100% bonus depreciation for qualified property acquired and placed in service after January 19, 2025. The bill permanently reinstates the more favorable EBITDA approach for calculating the business interest deduction limitation under Section 163(j), among implementing other changes. The Company has accounted for the provisions of the OBBBA in its consolidated financial statements. The changes are not expected to affect the Company’s U.S. net deferred tax assets or liabilities, as the Company continues to maintain a full valuation allowance against those balances.

On August 16, 2022, the Inflation Reduction Act was signed into law in the United States. Among other provisions, the Inflation Reduction Act includes a 15% minimum tax rate applied to corporations with profits in excess of $1 billion and also includes an excise tax on the repurchase of corporate stock. The Company has reviewed the provisions of the law and does not believe that any of the provisions will have a material impact on the business.

On March 11, 2021, the American Rescue Plan was enacted, which extends the period companies can claim an Employee Retention Credit, expands the IRC Section 162(m) limit on deductions for publicly traded companies, and repeals the election that allows US affiliate groups to allocate interest expense on a worldwide basis, among other provisions. The Company reviewed the provisions of the law and determined it had no material impact for the fiscal year ended June 30, 2026.

As of June 30, 2026 and June 30, 2025, the Company’s deferred tax assets were primarily the result of U.S. federal and state net operating losses (“NOLs”), Section 174 capitalized expenditures, disallowed interest carryover, lease liability, non-qualified stock options, and research and development tax credits. A valuation allowance was maintained and/or established in substantially all jurisdictions on the Company’s gross deferred tax asset balances as of June 30, 2026 and 2025. As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred tax assets. The realization of deferred tax assets was based on the evaluation of current and estimated future profitability of the operations, reversal of deferred tax liabilities and the likelihood of utilizing tax credit and/or loss carryforwards. As of June 30, 2026 and June 30, 2025, the Company continued to maintain that it is not at the more likely than not standard, wherein deferred taxes will be realized due to the recent history of losses and management’s expectation of continued tax losses.

Based on management’s assessment of historical results and forecasts, management is continuously monitoring the weight of both positive and negative evidence. Based on these trends, it is reasonably possible that within the next 12 months, management may conclude that it is more likely than not that a substantial portion of these deferred tax assets will be realized. If such a determination is made, it would result in the recognition of net deferred tax assets on the Company’s Consolidated Balance Sheets and a corresponding benefit recorded within the income tax provision in the period of release. However, management’s judgment regarding future earnings and the exact timing and amount of any valuation allowance release are subject to change due to many factors, including but not limited to, future market conditions and the ability to successfully execute the Company’s business plans.
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets (liabilities) are as follows:
Fiscal Year Ended June 30,
20262025
(in millions)
Deferred tax assets:
Net operating loss$1,084.8 $1,039.5 
Accruals and reserves36.0 65.1 
R&D credit89.1 81.9 
Accrued legal and professional fees9.5 2.9 
Non-qualified stock options96.3 95.0 
Restricted stock options9.4 11.8 
Disallowed interest carryover97.5 68.8 
Intangible amortization47.4 51.1 
Capitalized R&E77.7 119.4 
Inventory capitalization28.6 52.0 
Lease liability105.4 115.8 
Deferred revenue4.6 7.9 
Construction in progress6.5 26.3 
Property and equipment1.1 — 
Other5.2 4.4 
Total deferred tax assets:1,699.1 1,741.9 
Valuation allowance(1,620.5)(1,647.4)
Deferred tax liabilities:
Prepaid expenses(2.2)(2.4)
Property and equipment— (6.2)
Right-of-use assets(72.0)(81.4)
Convertible securities(3.7)(4.2)
Other(0.5)(0.1)
Total deferred tax liabilities:(78.4)(94.3)
Deferred tax assets, net$0.2 $0.2 
As of June 30, 2026 and 2025, the Company had federal NOLs of approximately $3,497.9 million and $3,290.0 million, respectively, of which $58.3 million will begin to expire in 2034 and the remainder will be carried forward indefinitely. The Company has undergone three ownership changes in the past which have historically subjected its NOLs to a Section 382 limitation. The resulting Section 382 limitations are large enough to avail the Section 382 limited NOLs by June 30, 2022, therefore no NOLs are currently limited. As of June 30, 2026 and 2025, the Company had state NOLs of approximately $2,728.6 million and $2,657.9 million, respectively, which began to expire at various dates beginning in 2024. As of June 30, 2026 and 2025, the Company had foreign NOLs of approximately $769.4 million and $771.6 million, respectively, generated primarily from its operations in the United Kingdom, which will be carried forward indefinitely. As of June 30, 2026 and 2025, the Company had $87.1 million and $79.4 million, respectively, of federal U.S. research and development credit carryovers that will begin to expire in 2036.
During the fiscal years ended June 30, 2026, 2025, and 2024, the Company recorded additions to the valuation allowance of $0.2 million, $46.8 million and $73.7 million, respectively. These additions primarily related to increases in deferred tax assets arising from capitalized Section 174 costs, Section 163(j) interest expense disallowance, net operating losses and other deductible temporary differences.
During the fiscal years ended June 30, 2026, 2025, and 2024, the Company recorded reductions to the valuation allowance of $27.1 million, $2.7 million and $3.7 million, respectively. These reductions primarily related to decreases in deferred tax assets due to the deductibility of previously capitalized Section 174 amounts and the derecognition of certain deferred tax assets.
As of June 30, 2026, the Company did not have material undistributed foreign earnings. The Company has not recorded a deferred tax liability for foreign withholding or other foreign local tax on the undistributed earnings from the Company’s international subsidiaries as such earnings are considered to be indefinitely reinvested.

At both June 30, 2026 and 2025, the Company had no unrecognized tax benefits included as a component of income taxes payable within accrued expenses within the accompanying Consolidated Balance Sheets. The Company has the following activity relating to unrecognized tax benefits:
Fiscal Year Ended June 30,
20262025
(in millions)
Beginning balance$— $— 
Gross (decrease) increase in unrecognized tax positions— — 
Ending balance$— $— 

Although it is possible that unrecognized tax benefits may increase or decrease within the next twelve months due to tax examination changes, settlement activities, expirations of statute of limitations, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities, the Company does not anticipate any significant changes to unrecognized tax benefits over the next 12 months.

The Company is subject to taxation in the United States, various state and local jurisdictions, as well as foreign jurisdictions where the Company conducts business. Accordingly, on a continuing basis, the Company cooperates with taxing authorities for the various jurisdictions in which it conducts business to comply with audits and inquiries for tax periods that are open to examination. The tax years ended June 30, 2022 and later remain open to examination by tax authorities in the United States and United Kingdom.

Cash paid for income taxes, net of refunds received, pursuant to the requirements of ASU 2023-09 for the fiscal year ended June 30, 2026 is as follows:
Fiscal Year Ended June 30, 2026
(in millions)
Federal $— 
State and local
     California1.0 
     All other states0.9 
Foreign
     Australia0.5 
Canada – Federal 1.1 
Canada – Ontario 0.6 
China 0.7 
Germany – Federal 0.6 
Germany – Munich1.0 
Taiwan(1.3)
     All other foreign0.5 
Cash paid for income taxes$5.5