v3.26.1
Stock-Based Compensation
 12 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Equity Incentive Plans
In June 2021, the Company’s Board of Directors adopted, and its stockholders approved, the 2021 Omnibus Incentive Plan (the “2021 Plan”) and the ESPP. The 2021 Plan provides for the grant of restricted shares, RSUs, performance shares, PSUs, deferred share units, share options and share appreciation rights. All employees, non-employee directors and selected third-party service providers of the Company and its subsidiaries and affiliates are eligible to receive grants under the 2021 Plan. Eligible employees may purchase the Company’s common stock under the ESPP.
Both the 2021 Plan and ESPP include a provision to increase the share reserves on July 1 of each year through 2031. On July 1, 2026, 4,230,336 and 846,067 shares were added to the 2021 Plan and ESPP, respectively.
As of June 30, 2026, shares of common stock reserved for future issuance were as follows (in thousands):
June 30, 2026
Stock plans:
Outstanding stock options1,567
Unvested PSUs and RSUs6,505
Reserved for ESPP4,261
Reserved for future stock award grants7,489
Total shares of common stock reserved for issuance19,822
Stock Awards
The Company has granted time-based and performance-based stock options, RSUs and PSUs, collectively referred to as “Stock Awards.” The Company accounts for stock-based compensation using the fair value method which requires the Company to measure stock-based compensation based on the grant-date fair value of the awards and recognize compensation expense over the requisite service or performance period. Awards that contain only service conditions, are generally earned over four years and expensed on a straight-line basis over that term. Compensation expense for awards that contain performance conditions is calculated using the graded vesting method and the portion of expense recognized in any period may fluctuate depending on changing estimates of the achievement of the performance conditions.
Stock Options
Stock options granted generally become exercisable ratably over a four-year period following the date of grant and expire ten years from the date of grant.
Stock option activity under the Company’s equity incentive plans during the fiscal years ended June 30, 2026 and 2025 was as follows (in thousands, except per share data):
Number of
Options		Weighted-
Average
Exercise
Price		Weighted-
Average
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic
Value (1)
Balance as of June 30, 20246,866$10.40 4.4$180,360 
Exercised(4,212)9.70 
Forfeited(26)21.91 
Balance as of June 30, 20252,628$11.42 3.8$105,632 
Exercised(1,050)9.90 
Forfeited(11)17.54 
Balance as of June 30, 20261,567$12.39 3.3$20,343 
Vested and exercisable as of June 30, 20261,567$12.39 3.3$20,343 
Vested and expected to vest as of June 30, 20261,567$12.39 3.3$20,343 
(1)Aggregate intrinsic value for stock options represents the difference between the exercise price and the per share fair value of the Company’s common stock as of the end of the period, multiplied by the number of stock options outstanding.
There were no stock options granted during the fiscal years ended June 30, 2026 and June 30, 2025. The total intrinsic value of stock options exercised during the fiscal years ended June 30, 2026, 2025, and 2024 was $30.6 million, $179.9 million, and $86.7 million, respectively.
During the fiscal years ended June 30, 2026, 2025, and 2024, the proceeds from option exercises totaled $10.4 million, $40.8 million and $30.7 million, respectively.
PSUs and RSUs
During the fiscal year ended June 30, 2026, the Company granted PSUs to certain of its employees with vesting terms based on meeting certain operating performance targets, including annual recurring revenue and consolidated profitability targets, and continued service conditions. The Company also granted RSUs to certain employees that vest based on continued service.
PSU activity during the fiscal years ended June 30, 2026 and 2025 was as follows (in thousands, except per share data):
Number of SharesWeighted-
Average
Grant Date
Fair Value
Balance as of June 30, 20242,550$29.48 
Granted1,22440.43 
Vested(1,586)27.18 
Forfeited(178)29.32 
Balance as of June 30, 20252,010$37.98 
Granted1,07345.83 
Vested(867)38.46 
Forfeited(299)34.57 
Balance as of June 30, 20261,917$42.69 
RSU activity during the fiscal years ended June 30, 2026 and 2025 was as follows (in thousands, except per share data):
Number of SharesWeighted-
Average
Grant Date
Fair Value
Balance as of June 30, 20242,524$30.84 
Granted2,47947.20 
Vested(1,338)34.12 
Forfeited(359)35.55 
Balance as of June 30, 20253,306$41.27 
Granted3,61132.14 
Vested(1,776)36.76 
Forfeited(553)40.05 
Balance as of June 30, 20264,588$35.97 
Stock-Based Compensation Expense
The Company recorded stock-based compensation expense on the consolidated statements of operations as follows (in thousands):
Year Ended June 30,
202620252024
Cost of revenues
Cost of SaaS$3,814 $3,174 $1,740 
Cost of license706 709 552 
Cost of professional services5,032 6,026 5,030 
Research and development36,281 24,309 14,854 
Sales and marketing35,641 24,557 17,312 
General and administrative38,509 29,311 20,407 
Total stock-based compensation$119,983 $88,086 $59,895 
The Company recognized related income tax benefit of $3.1 million, $2.5 million, and $1.1 million for the fiscal years ended June 30, 2026, 2025, and 2024, respectively.
In connection with certain restructuring activities, the Company modified and accelerated the vesting of certain RSU awards held by individuals impacted by the restructuring. The modification affected 15 individuals and a total of 40,951 PSU and RSU awards. As a result of this modification, the Company accelerated and recognized $1.6 million of stock-based compensation expense during the fiscal year ended June 30, 2026.
As of June 30, 2026, there was approximately $177.0 million of unrecognized compensation cost related to unvested stock-based awards granted, which is expected to be recognized over the weighted-average period of approximately 2.2 years.
2021 Employee Stock Purchase Plan
Under the ESPP, eligible employees may purchase the Company’s common stock at a price equal to 85% of the lower of the fair market value of the Company’s common stock on the offering date or the applicable purchase date. The ESPP provides an offering period that begins on June 1 and December 1 of each year and each offering period consists of one six-month purchase period. During the fiscal years ended June 30, 2026 and 2025, 154,345 shares and 112,489 shares were purchased under the ESPP, respectively.
The fair value of ESPP shares was estimated using the Black-Scholes option valuation model with the following weighted-average assumptions:
Year Ended June 30,
202620252024
Expected dividend yield0 %0 %0 %
Risk-free interest rate3.8 %4.4 %5.4 %
Expected volatility55 %47 %46 %
Expected term (in years)0.50.50.5
As of June 30, 2026, total unrecognized compensation cost related to the ESPP was $0.7 million, which will be amortized over a weighted-average vesting term of 0.4 years.