The Company maintained a 2014 Equity Incentive Plan (the “2014 Plan”) and continues to maintain a 2023 Equity Incentive Plan (the “2023 Plan”). The 2023 Plan serves as the successor to the 2014 Plan and permits the granting of restricted stock units (“RSUs”), performance stock units (“PSUs”), market stock units (“MSUs”) and other equity incentives at the discretion of the compensation committee of the Company’s board of directors (“the Committee”). No new awards have been or will be issued under the 2014 Plan since the effective date of the 2023 Plan. Outstanding awards under the 2014 Plan continue to be subject to the terms and conditions of the 2014 Plan.

As of June 30, 2025, the Company had 3,283 shares allocated to the plans, of which 1,583 shares were subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options or vesting of awards; however, shares previously subject to 2023 Plan grants or awards that are forfeited or net settled at exercise or release may be reissued to satisfy future issuances.

Stock-based compensation expense related to RSUs, PSUs, MSUs and the Employee Stock Purchase Plan (as described below) was included in the following line items in the accompanying Consolidated Statements of Operations and Comprehensive Income:


	Year Ended June 30,
	2023		2024		2025
Cost of revenues	$	17,101	$	18,927	$	17,945
Sales and marketing	36,930		35,536		35,305
Research and development	36,475		36,072		35,786
General and administrative	56,794		55,497		53,784
Total stock-based compensation expense	$	147,300	$	146,032	$	142,820

In addition, the Company capitalized $11,901, $14,376 and $12,996 of stock-based compensation expense in its capitalized internal-use software costs in the years ended June 30, 2023, 2024 and 2025, respectively.


	Number of shares	Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value
Balance at July 1, 2024	167	$	28.13	0.5	$	17,301
Options exercised	(167)	$	28.13
Balance at June 30, 2025	—	$	—	0.0	$	—

There were no stock options granted during the years ended June 30, 2023, 2024 or 2025. The total intrinsic value of options exercised during the years ended June 30, 2023, 2024 and 2025 was $52,985, $18,438 and $22,819, respectively.

The Company grants RSUs under its equity incentive plans with terms determined at the discretion of the Committee. RSUs generally vest over four years following the grant date and have time-based vesting conditions. The following table represents restricted stock unit activity during the year ended June 30, 2025:


	Units	Weighted average grant date fair value
RSU balance at July 1, 2024	1,290	$	214.98
RSUs granted	927	$	157.79
RSUs vested	(688)	$	201.45
RSUs forfeited	(168)	$	199.77
RSU balance at June 30, 2025	1,361	$	187.32

The Company also grants PSUs under the 2023 Plan with terms determined at the discretion of the Committee. During the year ended June 30, 2025, the Company granted approximately 55 PSUs with a grant date fair value of $155.95 per share, all which remained outstanding at June 30, 2025. The actual number of PSUs that will be eligible to vest is based on the achievement of Recurring and other revenue targets over a one year period with vesting taking place annually over three years. Up to 200% of the target number of shares subject to each PSU are eligible to be earned.

The Company also grants MSUs under its equity incentive plans with terms determined at the discretion of the Committee. The actual number of MSUs that will be eligible to vest is based on the achievement of a relative total shareholder return (“TSR”) target as compared to the TSR realized by each of the companies comprising the Russell 3000 Index over approximately three years. The MSUs cliff-vest at the end of the TSR measurement period, and up to 200% of the target number of shares subject to each MSU are eligible to be earned. The following table represents market share unit activity during the year ended June 30, 2025:


	Units	Weighted average grant date fair value
MSU balance at July 1, 2024	197	$	335.79
MSUs granted	28	$	211.45
MSUs vested	(16)	$	361.87
MSUs forfeited	(42)	$	339.60
MSU balance at June 30, 2025	167	$	311.38


	Year Ended June 30,
	2023		2024		2025
Valuation assumptions:
Expected dividend yield	0	%	0	%	0	%
Expected volatility	51.0 - 52.7%		44.5%		44.4%
Expected term (years)	2.75 - 3.04		3.04		3.04
Risk‑free interest rate	3.11 - 4.01%		4.58%		3.86%

At June 30, 2025, there was $108,846 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested RSUs, PSUs and MSUs. That cost is expected to be recognized over a weighted average period of 1.6 years.

The total of excess income tax benefits for stock-based compensation arrangements was $113,903 and $9,374 for the years ended June 30, 2023 and 2024, respectively. The Company recognized a tax shortfall of $2,598 for stock-based compensation arrangements for the year ended June 30, 2025. The tax impacts for all years were recognized through Income tax expense (benefit).

Under the Company’s Employee Stock Purchase Plan (“ESPP”), the Company can grant stock purchase rights to all eligible employees during specific offering periods not to exceed twenty-seven months. Each offering period will begin on the trading day closest to May 16 and November 16 of each year. Shares are purchased through employees’ payroll deductions, up to a maximum of 10% of employees’ compensation for each purchase period, at a purchase price equal to 85% of the lesser of the fair market value of the Company’s common stock at the first trading day of the applicable offering period or the purchase date. Participants may purchase up to $25 worth of common stock or 2 shares of common stock in any one year. The ESPP is considered compensatory and results in compensation expense.

The Company issued a total of 127 shares upon the completion of its six-month offering periods ending November 15, 2024 and May 15, 2025. The Company recorded compensation expense attributable to the ESPP of $6,393, $6,378 and $5,988 for the years ended June 30, 2023, 2024 and 2025, respectively, which is included in the summary of stock-based compensation expense above. The grant date fair values of the ESPP offering periods were estimated using the following assumptions:


	Year Ended June 30,
	2023		2024		2025
Valuation assumptions:
Expected dividend yield	0	%	0	%	0	%
Expected volatility	41.1 - 57.5%		32.9 - 43.3%		31.3 - 33.4%
Expected term (years)	0.5		0.5		0.5
Risk‑free interest rate	1.54 - 5.26%		5.26 - 5.41%		4.30 - 5.41%