Investments

9 Months Ended

Mar. 31, 2025

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	March 31, 2025		June 30, 2024
Fair value	$	12,131	$	12,026
Measurement alternative	65,378		73,739
Equity method	68,896		65,462
Total	$	146,405	$	151,227

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


	Nine Months Ended March 31, 2025
	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	3,878		—		525		4,403

Proceeds from exits of investments	(4,378)		—		—		(4,378)
Realized gains (losses) on non-marketable equity securities	389		—		—		389
Impairment of investments	(8,259)		—		—		(8,259)
Unrealized gains (losses) on marketable equity securities	—		105		—		105
Gain attributable to equity method investments	—		—		2,375		2,375
Foreign currency translation adjustments	9		—		534		543
Carrying value at the end of the period	$	65,378	$	12,131	$	68,896	$	146,405


	Nine Months Ended March 31, 2024
	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	6,567		—		3,125		9,692
Observable price adjustments on non-marketable equity securities	2,315		—		—		2,315

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

Unrealized gains (losses) on marketable equity securities	—		9,114		—		9,114
Loss attributable to equity method investments	—		—		(2,716)		(2,716)
Foreign currency translation adjustments	—		—		(660)		(660)
Carrying value at the end of the period	$	77,380	$	21,537	$	65,115	$	164,032

Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of March 31, 2025 for the three and nine months ended March 31, 2025 were $5.6 million and $8.2 million, respectively. Net unrealized gains recognized for equity investments in non-marketable and marketable securities held as of March 31, 2024 for the three and nine months ended March 31, 2024 were $13.9 million and $11.4 million, respectively.