Loans Held For Investment

9 Months Ended

Mar. 31, 2026

LOANS HELD FOR INVESTMENT

Loans held for investment represent funds advanced under a line of credit agreement, through a partnership with a third-party bank (the Originating Bank Partner). Loans held for investment are included in

prepaid expenses and other current assets in the accompanying consolidated balance sheets and consisted of the following as of the dates presented (in thousands):


	March 31, 2026		June 30, 2025
Unpaid principal balance	$	64,948	$	61,938
Less: Discount at loan purchase, net of amortization	(1,668)		(1,527)
Less: Allowance for expected credit losses	(15,640)		(14,853)
Loans held for investment, net	$	47,640	$	45,558

Credit Quality Information

The Company conducts an eligibility assessment prior to loan origination by the Originating Bank Partner. This process is performed at the invoice level and involves evaluating the invoice repayment likelihood by the respective network members associated with each invoice. Subsequently, the credit quality of these loans is monitored based on the delinquency trends or past due status of the loans held for investment, which are considered the credit quality indicators. Below is a summary of the loans held for investment by class (i.e., past due status) as of the dates presented (in thousands):


	March 31, 2026		June 30, 2025
Current and less than 30 days past due	$	57,398	$	55,540
30 ~ 59 days past due	2,648		1,471
60 ~ 89 days past due	1,696		1,461
90 ~ 119 days past due	1,537		1,685
Over 119 days past due	1		254
Total	$	63,280	$	60,411

Allowance for Credit Losses

Below is a summary of the changes in allowance for credit losses presented (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2026		2025		2026		2025
Balance, beginning	$	13,413	$	13,340	$	14,853	$	4,700
Provision for expected credit losses	5,981		5,502		13,016		22,125
Charge-off amounts	(4,154)		(4,981)		(13,251)		(13,194)
Recoveries collected	400		169		1,022		399
Balance, ending	$	15,640	$	14,030	$	15,640	$	14,030

The provision for expected credit losses related to loans held for investment increased during the three months ended March 31, 2026 compared to the same prior year period due to portfolio growth. The provision for expected credit losses related to loans held for investment decreased during the nine months ended March 31, 2026 compared to the same prior year period due to the improvement in the delinquency performance of loans held for investment, a decrease to estimated loss rates in the current period and an increase to estimated loss rates during the prior year periods, which were partially offset by portfolio growth. The charge-off amounts related to loans held for investment decreased during the three months ended March 31, 2026 compared to the same prior year period due to an enhanced collection process, partially offset by portfolio growth. The charge-off amounts increased during the nine months ended March 31, 2026 compared to the same prior year period due to portfolio growth.