| Short-Term Investments and Funds Held for Customers |
SHORT-TERM INVESTMENTS AND FUNDS HELD FOR CUSTOMERS The following table summarizes the assets underlying short-term investments and funds held for customers as of the dates presented (in thousands): | | | | | | | | | | | | | June 30,
2026 | | June 30,
2025 | | Short-term investments: | | | | | Available-for-sale debt securities | $ | 906,456 | | | $ | 1,180,110 | | | Total short-term investments | 906,456 | | | 1,180,110 | | | Funds held for customers: | | | | | Restricted cash | 943,618 | | | 749,111 | | | Restricted cash equivalents | 1,653,401 | | | 1,661,423 | | | Funds receivable | 46,346 | | | 25,499 | | | Available-for-sale debt securities | 1,737,109 | | | 1,628,767 | | | Total funds held for customers | 4,380,474 | | | 4,064,800 | | Less - interest income included in other current assets(1) | (27,841) | | | (20,330) | | | Total funds held for customers, net of income earned by the Company | $ | 4,352,633 | | | $ | 4,044,470 | |
(1) Represents interest income, accretion of discount, and net unrealized gains on customer funds that were invested in money market funds and short-term marketable debt securities. The Company contractually earns interest income on these investments, which is expected to be transferred into the Company’s corporate deposit account upon sale or settlement of the associated investment, and is not considered funds held for customers. The following table summarizes the estimated fair value of available-for-sale debt securities, included within short-term investments and funds held for customers, as of the dates presented (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Amortized
cost | | Gross
unrealized
gains | | Gross
unrealized
losses | | Fair value | | Short-term investments: | | | | | | | | | Corporate bonds | $ | 408,649 | | | $ | 703 | | | $ | (29) | | | $ | 409,323 | | | U.S. treasury securities | 439,718 | | | 11 | | | (3,119) | | | 436,610 | | | Asset-backed securities | 50,268 | | | 32 | | | (45) | | | 50,255 | | | Certificates of deposit | 10,268 | | | — | | | — | | | 10,268 | | | Total short-term investments | $ | 908,903 | | | $ | 746 | | | $ | (3,193) | | | $ | 906,456 | | | Funds held for customers: | | | | | | | | | Corporate bonds | $ | 402,347 | | | $ | 706 | | | $ | (37) | | | $ | 403,016 | | | Certificates of deposit | 47,865 | | | — | | | — | | | 47,865 | | | Asset-backed securities | 64,788 | | | 166 | | | (15) | | | 64,939 | | | Municipal bonds | 19,772 | | | 4 | | | (50) | | | 19,726 | | | U.S. treasury securities | 1,206,130 | | | 817 | | | (5,384) | | | 1,201,563 | | | Total funds held for customers | $ | 1,740,902 | | | $ | 1,693 | | | $ | (5,486) | | | $ | 1,737,109 | |
| | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | Amortized
cost | | Gross
unrealized
gains | | Gross
unrealized
losses | | Fair value | | Short-term investments: | | | | | | | | | Corporate bonds | $ | 756,009 | | | $ | 2,598 | | | $ | (274) | | | $ | 758,333 | | | U.S. treasury securities | 287,356 | | | 261 | | | (58) | | | 287,559 | | | Asset-backed securities | 118,074 | | | 177 | | | (15) | | | 118,236 | | | Certificates of deposit | 15,982 | | | — | | | — | | | 15,982 | | | Total short-term investments | $ | 1,177,421 | | | $ | 3,036 | | | $ | (347) | | | $ | 1,180,110 | | | Funds held for customers: | | | | | | | | | Corporate bonds | $ | 483,604 | | | $ | 2,759 | | | $ | (1) | | | $ | 486,362 | | | Certificates of deposit | 99,138 | | | — | | | — | | | 99,138 | | | Asset-backed securities | 167,179 | | | 791 | | | — | | | 167,970 | | Municipal bonds | 6,560 | | | 32 | | | — | | | 6,592 | | | U.S. treasury securities | 864,602 | | | 4,319 | | | (216) | | | 868,705 | | | Total funds held for customers | $ | 1,621,083 | | | $ | 7,901 | | | $ | (217) | | | $ | 1,628,767 | |
The amortized cost and fair value amounts for short-term investments include interest receivables of $7.9 million and $8.9 million as of June 30, 2026 and 2025, respectively. The amortized cost and fair value amounts for funds held for customers include interest receivables of $14.4 million and $12.4 million as of June 30, 2026 and 2025, respectively. The following table summarizes fair value of the Company's available-for-sale debt securities, included within short-term investments and funds held for customers, by remaining contractual maturity as of the dates presented (in thousands): | | | | | | | | | | | | | June 30,
2026 | | June 30,
2025 | | Due within 1 year | $ | 1,250,220 | | | $ | 1,118,478 | | | Due in 1 year through 5 years | 1,393,131 | | | 1,689,477 | | | Due in 5 years through 10 years | 214 | | | 922 | | | Total | $ | 2,643,565 | | | $ | 2,808,877 | |
As of June 30, 2026, approximately 250 out of approximately 650 investments in available-for-sale debt securities were in an unrealized loss position. The following tables show gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Less than 12 months | | 12 months or longer | | Total | | Fair value | | Unrealized
losses | | Fair value | | Unrealized
losses | | Fair value | | Unrealized
losses | | Short-term investments: | | | | | | | | | | | | | Corporate bonds | $ | 60,578 | | | $ | (29) | | | $ | — | | | $ | — | | | $ | 60,578 | | | $ | (29) | | | U.S. treasury securities | 391,291 | | | (3,119) | | | — | | | — | | | 391,291 | | | (3,119) | | | Asset-backed securities | 25,679 | | | (41) | | | 236 | | | (4) | | | 25,915 | | | (45) | | | Total short-term investments | $ | 477,548 | | | $ | (3,189) | | | $ | 236 | | | $ | (4) | | | $ | 477,784 | | | $ | (3,193) | | | Funds held for customers: | | | | | | | | | | | | | Corporate bonds | $ | 47,958 | | | $ | (37) | | | $ | — | | | $ | — | | | $ | 47,958 | | | $ | (37) | | | Asset-backed securities | 2,475 | | | (15) | | | — | | | — | | | 2,475 | | | (15) | | | U.S. treasury securities | 691,322 | | | (5,384) | | | — | | | — | | | 691,322 | | | (5,384) | | | Municipal bonds | 13,760 | | | (50) | | | — | | | — | | | 13,760 | | | (50) | | | Total funds held for customers | $ | 755,515 | | | $ | (5,486) | | | $ | — | | | $ | — | | | $ | 755,515 | | | $ | (5,486) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | Less than 12 months | | 12 months or longer | | Total | | Fair value | | Unrealized
losses | | Fair value | | Unrealized
losses | | Fair value | | Unrealized
losses | | Short-term investments: | | | | | | | | | | | | | Corporate bonds | $ | 209,648 | | | $ | (274) | | | $ | — | | | $ | — | | | $ | 209,648 | | | $ | (274) | | | U.S. treasury securities | 139,598 | | | (58) | | | — | | | — | | | 139,598 | | | (58) | | | Asset-backed securities | 30,362 | | | (15) | | | — | | | — | | | 30,362 | | | (15) | | | Total short-term investments | $ | 379,608 | | | $ | (347) | | | $ | — | | | $ | — | | | $ | 379,608 | | | $ | (347) | | | Funds held for customers: | | | | | | | | | | | | | Corporate bonds | $ | 12,867 | | | $ | (1) | | | $ | — | | | $ | — | | | $ | 12,867 | | | $ | (1) | | | Asset-backed securities | 4,576 | | | — | | | — | | | — | | | 4,576 | | | — | | | U.S. treasury securities | 82,910 | | | (216) | | | — | | | — | | | 82,910 | | | (216) | | | Total funds held for customers | $ | 100,353 | | | $ | (217) | | | $ | — | | | $ | — | | | $ | 100,353 | | | $ | (217) | |
Unrealized losses have not been recognized into income as the Company neither intends to sell, nor anticipates that it is more likely than not that the Company will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value is due primarily to changes in market interest rates, rather than credit losses. There have been no significant realized gains or losses on the short-term investments and funds held for customers during the years ended June 30, 2026, 2025, and 2024.
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