In connection with the sale of certain assets and wind down and exit from the direct sourcing business (see Note 1 - Organization and Basis of Presentation), the Company met the criteria for classifying certain assets and liabilities of S2S Global as a discontinued operation as of September 30, 2024. Prior to its classification as a discontinued operation, S2S Global was included as part of the Supply Chain Services segment.

During the year ended June 30, 2025, the Company recorded a loss on disposal of S2S Global of $53.0 million. The loss was recorded within net (loss) income from discontinued operations, net of tax, in the accompanying Consolidated Statements of Income and Comprehensive Income.

The following table summarizes the major classes of assets and liabilities classified as discontinued operations at June 30, 2025 and June 30, 2024 (in thousands):


	June 30, 2025		June 30, 2024
Assets
Accounts receivable	$	—	$	25,730
Inventory	—		79,799
Prepaid expenses and other current assets	—		6,893
Deferred income tax assets	—		3,200
Other assets	—		4,040
Current assets of discontinued operations	$	—	$	119,662

Liabilities
Accounts payable	$	—	$	37,750
Accrued expenses	14		7,003
Accrued compensation and benefits	82		971
Current liabilities of discontinued operations	$	96	$	45,724

The following table summarizes the major components of net (loss) income from discontinued operations for the years ended June 30, 2025, 2024 and 2023 (in thousands):


	Year Ended June 30,
	2025		2024		2023
Net revenue	$	50,485	$	210,352	$	240,758
Cost of revenue	46,055		189,464		221,719
Gross profit	4,430		20,888		19,039
Operating expenses:
Selling, general, and administrative	7,671		19,314		20,537
Amortization of purchased intangible assets	—		248		541
Operating expenses	7,671		19,562		21,078
Operating (loss) income from discontinued operations	(3,241)		1,326		(2,039)
Other (expense) income	(53,156)		1,943		177
Net (loss) income from discontinued operations before income taxes	(56,397)		3,269		(1,862)
Income tax (benefit) expense	(14,496)		769		(972)
Net (loss) income from discontinued operations, net of tax, attributable to stockholders	$	(41,901)	$	2,500	$	(890)