v3.25.2
Fair Value Measurement
 12 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement
(5) Fair Value Measurement
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:
•Level 1—Quoted prices in active markets for identical assets and liabilities.
•Level 2—Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
•Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
The Company measures any cash and cash equivalents, funds held for clients' cash and cash equivalents, accounts receivable, accounts payable and client fund obligations at fair value on a recurring basis using Level 1 inputs. The Company considers the recorded value of these financial assets and liabilities to approximate the fair value of the respective assets and liabilities at June 30, 2024 and 2025 based upon the short-term nature of these assets and liabilities.
Marketable securities classified as available-for-sale are recorded at fair value on a recurring basis using Level 2 inputs obtained from an independent pricing service. Available-for-sale securities include commercial paper, corporate bonds, asset-backed securities, U.S. treasury securities and other. The independent pricing service utilizes a variety of inputs including benchmark yields, broker/dealer quoted prices, reported trades, issuer spreads as well as other available market data. The Company, on a sample basis, validates the pricing from the independent pricing service against another third-party pricing source for reasonableness. The Company has not adjusted any prices obtained by the independent pricing service, as it believes they are appropriately valued. There were no available-for-sale securities classified in Level 3 of the fair value hierarchy at June 30, 2024 or 2025.
The fair value level for the Company’s cash and cash equivalents and available-for-sale securities was as follows:
June 30, 2024
TotalLevel 1Level 2Level 3
Cash and cash equivalents$401,811 $401,811 $— $— 
Funds held for clients' cash and cash equivalents2,443,858 2,443,858 — — 
Available-for-sale securities:
Corporate bonds314,820 — 314,820 — 
Asset-backed securities40,682 — 40,682 — 
U.S. treasury securities123,952 — 123,952 — 
Other28,748 — 28,748 — 
Total available-for-sale securities508,202 — 508,202 — 
Total investments$3,353,871 $2,845,669 $508,202 $— 
June 30, 2025
TotalLevel 1Level 2Level 3
Cash and cash equivalents$398,070 $398,070 $— $— 
Funds held for clients' cash and cash equivalents2,084,456 2,084,456 — — 
Available-for-sale securities:
Corporate bonds378,592 — 378,592 — 
Asset-backed securities52,178 — 52,178 — 
Certificates of deposit61,687 — 61,687 — 
U.S. treasury securities85,264 — 85,264 — 
Commercial paper17,272 — 17,272 — 
Other24,688 — 24,688 — 
Total available-for-sale securities619,681 — 619,681 — 
Total investments$3,102,207 $2,482,526 $619,681 $— 
Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis
The Company records assets acquired and liabilities assumed in business combinations at fair value. Refer to Note 7 for further details on the fair value measurements of certain assets and liabilities recorded at fair value on a non-recurring basis using Level 3 inputs.