v3.26.1
Investments
 12 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Investments
4. Investments
Marketable Securities
The Company did not have any investments of marketable securities as of June 30, 2026.
The Company’s investments of marketable securities as of June 30, 2025, consisted of the following (in thousands):
Amortized CostUnrealized GainsUnrealized LossesFair Value
Marketable debt securities
U.S. treasury securities$176,338 $388 $(65)$176,661 
Agency securities3,197 19 — 3,216 
Certificates of deposit and time deposits10,000 — — 10,000 
Commercial paper19,697 — — 19,697 
Corporate debt securities214,190 527 (23)214,694 
Total marketable securities$423,422 $934 $(88)$424,268 
The table below summarizes the Company’s marketable securities by remaining contractual maturity as of June 30, 2025 (in thousands):
June 30, 2025
Due in one year or less$271,923 
Due in one year through five years152,345 
Total marketable debt investments$424,268 
The Company regularly reviewed the changes to the rating of its marketable securities by rating agencies and monitored the surrounding economic conditions to assess the risk of expected credit losses. As of June 30, 2025, unrealized losses and the related risk of expected credit losses were not material.
Strategic Investments

Carrying value of privately held debt securities

The Company’s investments of privately held debt securities as of June 30, 2026, consisted of the following (in thousands):
Amortized CostUnrealized GainsUnrealized LossesFair Value
Privately held debt securities$7,180 $— $(2,750)$4,430 
The Company’s investments of privately held debt securities as of June 30, 2025, consisted of the following (in thousands):
Amortized CostUnrealized GainsUnrealized LossesFair Value
Privately held debt securities$7,780 $— $(3,350)$4,430 
Carrying value of privately held equity securities
Privately held equity securities are measured using the measurement alternative. The carrying value is measured as the total initial cost plus the cumulative net gain (loss).
The carrying values of privately held equity securities as of June 30, 2026 are summarized below (in thousands):
Privately held equity securities
Initial total cost$145,802 
Cumulative net gains
7,034 
Carrying value$152,836 
Privately held equity securities’ cumulative net gains were comprised of upward adjustments of $14.9 million and downward adjustments and impairment of $7.9 million as of June 30, 2026.
The carrying values of privately held equity securities as of June 30, 2025 are summarized below (in thousands):
Privately held equity securities
Initial total cost$166,302 
Cumulative net losses(1,909)
Carrying value$164,393 
Privately held equity securities’ cumulative net losses were comprised of downward adjustments and impairment charges of $8.5 million and upward adjustments of $6.6 million as of June 30, 2025.
Gains and Losses on Strategic Investments
The components of gains and losses on strategic investments were as follows (in thousands):
Fiscal Year Ended June 30,
202620252024
Unrealized gains recognized on privately held equity securities$9,846 $1,549 $2,084 
Unrealized losses recognized on privately held equity securities including impairment(3,820)(967)(1,628)
Unrealized losses on privately held debt securities(250)— (500)
Unrealized gains (losses), net$5,776 $582 $(44)
Realized gains recognized on publicly traded equity securities
14,658 — 515 
Realized gains (losses) recognized on privately held equity securities1,367 (3,142)(2,546)
Realized gains on debt securities
228 — — 
Gains (losses) on strategic investments, net
$22,029 $(2,560)$(2,075)
Unrealized gains recognized during the reporting period on privately held equity securities still held at the reporting date
$6,026 $582 $456 
Unrealized gains recognized on privately held equity securities include upward adjustments from equity securities accounted for under the measurement alternative, while unrealized losses recognized on privately held equity securities include downward adjustments and impairment. Realized gains on sales of privately held securities, net, reflect the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.
Realized gains (losses) recognized on publicly traded equity securities, privately held equity securities, and debt securities, reflect the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.
Equity Method Investment
Vertical First Trust (“VFT”) was established for the construction project associated with the Company’s new global headquarters in Sydney, Australia (the “Australian HQ Property”). In fiscal year 2023, the Company completed a non-cash sale of the controlling interest of VFT to a third-party buyer as part of the contemplated transactions for the buyer to invest in and develop the Australian HQ Property. The maximum exposure to loss related to the Company’s investment in VFT equals the Company’s capital investment.
The Company retained a minority equity interest of 13% in the form of ordinary units in VFT and has significant influence in VFT. The Company’s interest in VFT is accounted for using the equity method in the consolidated financial statements. Under the equity method, the Company records its proportionate share of VFT’s earnings or losses.
The following table sets forth the carrying amounts of the equity method investment and the movements during fiscal years 2025 and 2026 (in thousands):
Equity Method Investment
Balance as of June 30, 2024$74,510 
Share of losses(20,433)
Effect of change in exchange rates(958)
Balance as of June 30, 2025$53,119 
Effect of change in exchange rates2,762 
Balance as of June 30, 2026$55,881 
The carrying amount of the Company’s investment in VFT was reported within strategic investments in the Company’s Consolidated Balance Sheets.