Investments

6 Months Ended

Dec. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

We have equity investments in privately and publicly held companies that are unconsolidated entities. The following discusses our investments in marketable equity securities, non-marketable equity securities, and investments accounted for under the equity method.

Our marketable equity securities are publicly traded stocks measured at fair value and classified within Level 1 in the fair value hierarchy because we use quoted prices for identical assets in active markets. Marketable equity securities are recorded in prepaid expenses and other current assets on the condensed consolidated balance sheets.

Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values and are recorded in prepaid taxes and other non-current assets on the condensed consolidated balance sheets. Non-marketable equity securities are reported at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. We assess non-marketable equity securities at least quarterly for impairment and consider qualitative and quantitative factors including the investee's financial metrics, product and commercial outlook and cash usage. All gains and losses on marketable and non-marketable equity securities, realized and unrealized, are recognized in gain (loss) on equity investments as a component of other income (loss), net on the condensed consolidated statements of operations.

Equity investments whereby we have significant influence, but not control over the investee and are not the primary beneficiary of the investee’s activities, are accounted for under the equity method and are recorded in prepaid taxes and other non-current assets on the condensed consolidated balance sheets. Under this method, we record our share of gains or losses attributable to equity method investments as a component of other income (loss), net on the condensed consolidated statements of operations.

Equity investments by measurement category were as follows (in thousands):


Measurement category	December 31, 2024		June 30, 2024
Fair value	$	14,777	$	12,026
Measurement alternative	66,455		73,739
Equity method	65,737		65,462
Total	$	146,969	$	151,227

The following tables show a reconciliation of the changes in our equity investments (in thousands):


	Six Months Ended December 31, 2024
	Non-marketable securities		Marketable securities		Equity method investments		Total
Balance at the beginning of the period	$	73,739	$	12,026	$	65,462	$	151,227
Additions to investments	2,000		—		350		2,350

Proceeds from exits of investments	(4,378)		—		—		(4,378)
Realized gains on marketable and non-marketable equity securities	389		—		—		389
Impairment of investments	(5,259)		—		—		(5,259)
Unrealized gains on marketable equity securities	—		2,751		—		2,751
Gain attributable to equity method investments	—		—		2,040		2,040
Foreign currency translation adjustments	(36)		—		(2,115)		(2,151)
Carrying value at the end of the period	$	66,455	$	14,777	$	65,737	$	146,969


	Six Months Ended December 31, 2023
	Non-marketable securities		Marketable securities		Equity method investments		Total
Balance at the beginning of the period	$	68,748	$	12,423	$	65,366	$	146,537
Additions to investments	4,180		—		3,125		7,305
Observable price adjustments on non-marketable equity securities	2,315		—		—		2,315

Proceeds from exits of investments	(250)		—		—		(250)

Unrealized losses on marketable equity securities	—		(4,806)		—		(4,806)
Loss attributable to equity method investments	—		—		(3,156)		(3,156)
Foreign currency translation adjustments	—		—		753		753
Carrying value at the end of the period	$	74,993	$	7,617	$	66,088	$	148,698

Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of December 31, 2024 for the three and six months ended December 31, 2024 were $1.4 million and $2.5 million. Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of December 31, 2023 for the three and six months ended December 31, 2023 were $1.9 million and $2.5 million.