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Short-Term Investments and Funds Held for Customers
 6 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Short-Term Investments and Funds Held for Customers SHORT-TERM INVESTMENTS AND FUNDS HELD FOR CUSTOMERS
The following table summarizes the assets underlying short-term investments and funds held for customers as of the dates presented (in thousands):
December 31,
2024		June 30,
2024
Short-term investments:
Available-for-sale debt securities$644,672 $601,535 
Total short-term investments644,672 601,535 
Funds held for customers:
Restricted cash608,959 779,838 
Restricted cash equivalents1,553,246 1,408,691 
Funds receivable16,064 11,870 
Available-for-sale debt securities1,609,979 1,515,330 
Total funds held for customers3,788,248 3,715,729 
Less - interest income included in other current assets (1)
(21,707)(10,822)
Total funds held for customers, net of income earned by the Company$3,766,541 $3,704,907 
(1) Represents interest income, accretion of discount (offset by amortization of premium), and net unrealized gains on customer funds that were invested in money market funds and short-term marketable debt securities. The Company contractually earns interest income on these investments, which is expected to be transferred into the Company’s corporate deposit account upon sale or settlement of the associated investment, and is not considered funds held for customers.
The following table summarizes the estimated fair value of available-for-sale debt securities included within short-term investments and funds held for customers as of the dates presented (in thousands):
December 31, 2024
Amortized costGross unrealized gainsGross unrealized losses Fair value
Short-term investments:
Corporate bonds$429,622 $337 $(901)$429,058 
U.S. treasury securities124,934 41 (54)124,921 
Asset-backed securities66,065 137 (3)66,199 
Certificates of deposit14,535 — — 14,535 
U.S. agency securities9,952 7 — 9,959 
Total short-term investments645,108 522 (958)644,672 
Funds held for customers:
Corporate bonds587,458 863 (77)588,244 
Certificates of deposit129,321 — — 129,321 
Municipal bonds2,0067 — 2,013 
Asset-backed securities170,336 903 — 171,239 
U.S. treasury securities720,485 1,097 (2,420)719,162 
Total funds held for customers$1,609,606 $2,870 $(2,497)$1,609,979 
June 30, 2024
Amortized costGross unrealized gainsGross unrealized losses Fair value
Short-term investments:
Corporate bonds$298,628 $140 $(566)$298,202 
U.S. treasury securities181,225 — (242)180,983 
Asset-backed securities59,340 68 (45)59,363 
Certificates of deposit38,370 — — 38,370 
U.S. agency securities24,669 — (52)24,617 
Total short-term investments$602,232 $208 $(905)$601,535 
Funds held for customers:
Corporate bonds$937,989 $23 $(814)$937,198 
Certificates of deposit119,615 1 — 119,616 
Asset-backed securities116,542 11 (78)116,475 
U.S. treasury securities342,202 1 (162)342,041 
Total funds held for customers$1,516,348 $36 $(1,054)$1,515,330 
The amortized cost and fair value amounts for short-term investments include interest receivables of $5.2 million and $4.9 million as of December 31, 2024 and June 30, 2024, respectively. The amortized cost and fair value amounts for funds held for customers include interest receivable of $13.2 million and $6.8 million as of December 31, 2024 and June 30, 2024, respectively.
The following table summarizes fair value of the Company's available-for-sale debt securities, included within short-term investments and funds held for customers, by remaining contractual maturity as of the dates presented (in thousands):
December 31,
2024		June 30,
2024
Due within 1 year$1,108,161 $1,699,009 
Due in 1 year through 5 years1,140,082 409,309 
Due in 5 years through 10 years6,408 8,547 
Total$2,254,651 $2,116,865 
As of December 31, 2024, approximately 170 out of approximately 630 investments in available-for-sale debt securities were in an unrealized loss position. The following table shows gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands):
December 31, 2024
Less than 12 months12 months or longerTotal
Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Short-term investments:
Corporate bonds$192,116 $(900)$8,862 $(1)$200,978 $(901)
U.S. treasury securities44,421 (52)10,780 (2)55,201 (54)
Asset-backed securities8,778 (3)172 — 8,950 (3)
Total short-term investments245,315 (955)19,814 (3)265,129 (958)
Funds held for customers:
Corporate bonds57,945 (77)— — 57,945 (77)
U.S. treasury securities401,824 (2,420)— — 401,824 (2,420)
Total funds held for customers$459,769 $(2,497)$— $— $459,769 $(2,497)
June 30, 2024
Less than 12 months12 months or longerTotal
Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Short-term investments:
Corporate bonds$130,469 $(333)$60,576 $(232)$191,045 $(565)
U.S. treasury securities152,004 (156)28,979 (86)180,983 (242)
Asset-backed securities24,149 (39)2,155 (7)26,304 (46)
U.S. agency securities24,617 (52)— — 24,617 (52)
Total short-term investments331,239 (580)91,710 (325)422,949 (905)
Funds held for customers:
Corporate bonds506,540 (814)— — 506,540 (814)
Asset-backed securities68,629 (76)5,546 (2)74,175 (78)
U.S. treasury securities327,340 (162)— — 327,340 (162)
Total funds held for customers$902,509 $(1,052)$5,546 $(2)$908,055 $(1,054)
Unrealized losses have not been recognized into income as the Company neither intends to sell, nor anticipates that it is more likely than not that the Company will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value is due primarily to changes in market interest rates, rather than credit losses.
There have been no significant realized gains or losses on the short-term investments and funds held for customers during the three and six months ended December 31, 2024 and 2023.