v3.25.2
Fair Value Measurements
 12 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

5. Fair Value Measurements

A three-tier fair value hierarchy is utilized to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows:

•
Level 1 Inputs - unadjusted quoted prices in active markets for identical assets or liabilities;
•
Level 2 Inputs - quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and
•
Level 3 Inputs - unobservable inputs reflecting the Company’s own assumptions in measuring the asset or liability at fair value.

The following table presents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis (in thousands):

June 30, 2025

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

$

—

 

 

$

6,089

 

 

$

—

 

 

$

6,089

 

Foreign currency derivatives

 

 

—

 

 

 

298

 

 

 

—

 

 

 

298

 

Total assets measured at fair value

 

$

—

 

 

$

6,387

 

 

$

—

 

 

$

6,387

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivatives

 

$

—

 

 

$

11

 

 

$

—

 

 

$

11

 

Total liabilities measured at fair value

 

$

—

 

 

$

11

 

 

$

—

 

 

$

11

 

 

June 30, 2024

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

$

—

 

 

$

3,216

 

 

$

—

 

 

$

3,216

 

Foreign currency derivatives

 

 

—

 

 

 

18

 

 

 

—

 

 

 

18

 

Total assets measured at fair value

 

$

—

 

 

$

3,234

 

 

$

—

 

 

$

3,234

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivatives

 

$

—

 

 

$

71

 

 

$

—

 

 

$

71

 

Total liabilities measured at fair value

 

$

—

 

 

$

71

 

 

$

—

 

 

$

71

 

 

Level 1 Assets and Liabilities:

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities. The Company states accounts receivable, accounts payable and accrued liabilities at their carrying value, which approximates fair value due to the short time to the expected receipt or payment.

Level 2 Assets and Liabilities:

The Company's level 2 assets consist of certificates of deposit and derivative instruments. Certificates of deposit do not have regular market pricing and are considered Level 2. The fair value of derivative instruments under the Company’s foreign exchange forward contracts and interest rate swaps are estimated based on valuations provided by alternative pricing sources supported by observable inputs which are considered Level 2.

As of June 30, 2025 and June 30, 2024 the Company had investment in certificates of deposit of $6.1 million and $3.2 million, respectively, with maturity of three months at the date of purchase, which are recorded as cash equivalents in the consolidated balance sheets. The Company considers these cash equivalents to be available-for-sale and, as of June 30, 2025 and June 30, 2024, their fair value approximated their amortized cost.

As of June 30, 2025 and June 30, 2024, foreign exchange forward currency contracts not designated as hedging instruments had total notional principal amounts of $57.2 million and $31.3 million, respectively. Changes in the fair value of these foreign exchange forward contracts not designated as hedging instruments are included in “Other income (expense), net” in the consolidated statements of operations. For the years ended June 30, 2025, 2024 and 2023 the consolidated statements of operations included net gains of $1.0 million, net losses of $0.3 million, and net losses of $0.4 million, respectively from these contracts. There were no outstanding foreign exchange forward contracts that were designated as hedging instruments at June 30, 2025 and 2024. See Note 13, Derivatives and Hedging, for additional information.

The fair value of the borrowings under the Amended Credit Agreement (as defined in Note 7) is estimated based on valuations provided by alternative pricing sources supported by observable inputs which is considered Level 2. Since the interest rate is variable in the Amended Credit Agreement, the fair value approximates the face amount of the Company’s indebtedness of $180.0 million and $190.0 million as of June 30, 2025 and 2024, respectively.

Level 3 Assets and Liabilities:

Certain of the Company’s assets, including intangible assets and goodwill are measured at fair value on a non-recurring basis if impairment is indicated. As of June 30, 2025 and June 30, 2024 the Company did not have any assets or liabilities that were considered Level 3.

There were no transfers of assets or liabilities between Level 1, Level 2 or Level 3 during the years ended June 30, 2025 and 2024. There were no impairments recorded during the years ended June 30, 2025, 2024, or 2023.