Fair Value Measurement

3 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurement

FAIR VALUE MEASUREMENT

The Company measures and reports its cash equivalents, short-term investments, funds held for customers that are invested in money market funds and marketable debt securities at fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows:

Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the assets or liabilities.

In determining fair value, the Company utilizes quoted market prices, or valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, and also considers counterparty credit risk in its assessment of fair value.

The following table summarizes the fair values of the financial assets and liabilities, determined using quoted market prices of identical assets or market prices of similar assets from active markets as of the dates presented (in thousands):

		Fair Value at
	Pricing Category	September 30, 2025		June 30, 2025
Assets
Cash equivalents:
Money market funds	Level 1	$	367,960	$	365,456
Corporate bonds	Level 2	75,233		69,956
Certificates of deposit	Level 2	—		2,216
Short-term investments:
Corporate bonds	Level 2	711,643		758,333
U.S. treasury securities	Level 2	347,939		287,559
Asset-backed securities	Level 2	130,297		118,236
Certificates of deposit	Level 2	25,460		15,982
Funds held for customers:
Restricted cash equivalents:
Money market funds	Level 1	1,755,709		1,642,494
Corporate bonds	Level 2	—		18,929
Short-term investments:
Corporate bonds	Level 2	498,565		486,362
U.S. treasury securities	Level 2	892,084		868,705
Certificates of deposit	Level 2	94,136		99,138
Asset-backed securities	Level 2	148,582		167,970
Municipal bonds	Level 2	15,409		6,592
Liabilities (1)
0% 2025 Notes	Level 2	33,154		32,567
0% 2027 Notes	Level 2	114,751		112,738
0% 2030 Notes	Level 2	$	1,248,786	$	1,185,128

(1) These liabilities are carried at par value, less the unamortized issuance costs in the accompanying condensed consolidated balance sheets.

There were no transfers of financial instruments between Level 1, Level 2, and Level 3 during the periods presented.

The Company's financial instruments that are not measured and recorded at fair value, such as cash, restricted cash, acquired cards receivables, loans held for investment, interest receivables, incentive

receivables, and borrowings from credit facilities, are carried at amortized cost, which approximates their fair value. If these financial instruments were measured at fair value in the financial statements, cash would be classified as Level 1; restricted cash, interest receivables, incentive receivables and borrowings from credit facilities would be classified as Level 2 and the acquired card receivables and loans held for investment would be classified as Level 3 in the fair value hierarchy.