Income Taxes (Tables)

12 Months Ended

Jun. 30, 2026

Schedule of Income before Income Tax, Domestic and Foreign

The U.S. and foreign components of income (loss) before income taxes for the years ended June 30, 2026, 2025, and 2024 are as follows (in thousands):


	June 30, 2026		June 30, 2025		June 30, 2024
U.S.	$	478,545	$	42,949	$	(518,093)
Foreign	14,182		18,515		2,566
Total income (loss) before income taxes	$	492,727	$	61,464	$	(515,527)

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) for the years ended June 30, 2026, 2025, and 2024 is summarized as follows (in thousands):


	June 30, 2026		June 30, 2025		June 30, 2024
Current
Federal	$	241	$	1,565	$	—
State	13,266		176		1,442
Foreign	4,643		425		392
Total current expense	$	18,150	$	2,166	$	1,834
Deferred
Federal	$	(1,018,538)	$	139	$	139
State	(441,455)		(212)		333
Foreign	4,776		7,186		(76)
Total deferred (benefit) expense	(1,455,217)		7,113		396
Income tax (benefit) expense	$	(1,437,067)	$	9,279	$	2,230

Schedule of Effective Income Tax Rate Reconciliation

The table below presents a reconciliation of the U.S. statutory federal income tax rate to our effective tax rate subsequent to the adoption of ASU 2023-09 for the year ended June 30, 2026 (in thousands):


	June 30, 2026
	Amount		Percent
U.S. statutory federal income tax rate	$	103,414	21.0	%
State and local income taxes, net of federal tax effect (1)	(547,531)		(111.2)	%
Other foreign tax effects	6,875		1.4	%
Nontaxable or non-deductible items:
Stock-based compensation (2)	(94,903)		(19.3)	%
Non-deductible compensation expense (3)	18,643		3.8	%
Other	1,350		0.3	%
Tax benefit related to tax credits (4)	(21,021)		(4.3)	%
Change in unrecognized tax benefits	9,443		1.9	%
Change in valuation allowance	(913,659)		(185.5)	%
Other adjustments	322		0.2	%
Income tax benefit and effective income tax rate	(1,437,067)		(291.7)	%

(1)Includes the state tax effect of the valuation allowance release. State and local taxes in California and New York made up the majority (greater than 50%) of the tax effect in this category.

(2)Primarily reflects excess tax benefits recognized upon the vesting or exercise of stock-based awards, partially offset by the tax effects of nondeductible stock-based compensation expense.

(3)Reflects the impact of applying Section 162(m), which prohibits deduction of certain excess employee compensation to certain “covered employees”.

(4)Primarily relates to research and development tax credits.

As previously disclosed for the years ended June 30, 2025 and 2024, prior to the adoption of ASU 2023-09, the following is a reconciliation of the U.S. statutory federal income tax rate to our effective tax rate:


	June 30, 2025		June 30, 2024
U.S. statutory federal income tax rate	21.0	%	21.0	%
State and local income taxes, net of federal tax benefit	6.8	%	8.9	%
Foreign rate differential	1.7	%	(0.1)	%
California state tax law change	26.3	%	—	%
Stock-based compensation	(228.9)	%	(5.1)	%
Non-deductible compensation expense	70.0	%	(5.6)	%
Tax benefit related to tax credits, net	(67.5)	%	4.3	%

Change in unrecognized tax benefits	27.0	%	(1.7)	%
Change in tax status of a foreign subsidiary	14.6	%	—	%
Other	0.8	%	—	%
Change in valuation allowance	143.0	%	(22.1)	%
Effective income tax rate	14.8	%	(0.4)	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities are as follows (in thousands):


	June 30, 2026		June 30, 2025
Net operating loss carryforwards	$	1,022,126	$	1,034,551
Allowance for credit losses	161,002		116,570
Stock-based compensation	14,694		16,789
Stock warrants	194,424		142,143
Operating lease liabilities	7,658		8,386
Capitalized R&E including internally developed software	—		62,325
Tax credit carryforwards	119,074		108,026
Other	11,624		11,685
Total deferred tax assets	$	1,530,602	$	1,500,475
Right-of-use lease assets	(6,030)		(5,021)
Capitalized R&E including internally developed software	(40,895)		—
Other	(1,522)		(3,686)
Total deferred tax liabilities	$	(48,447)	$	(8,707)
Valuation allowance	(15,119)		(1,479,926)
Deferred tax assets (liabilities), net of valuation allowance	$	1,467,036	$	11,842

Schedule of Cash Flow, Supplemental Disclosures

For the year ended June 30, 2026, income taxes paid on a cash basis consisted of the following (in thousands):


	June 30, 2026
Federal income taxes paid	$	910
State and local income taxes paid:
Pennsylvania	915
Virginia	673
Florida	355
All other	1,387
Total state and local income taxes paid	$	3,330
Foreign income taxes paid:
Canada	1,647
Poland	395
Spain	336
All other	—
Total foreign income taxes paid	2,378
Total income taxes paid, net	$	6,618

Schedule of Unrecognized Tax Benefits

The following table provides a reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (in thousands):


	June 30, 2026		June 30, 2025		June 30, 2024
Beginning balance	$	79,248	$	61,514	$	51,850
Gross increase for tax positions related to the current year	12,556		18,543		8,931
Gross increase for tax positions related to prior years	1,208		—		733
Gross decrease for tax positions related to prior years	—		(809)		—
Ending balance	$	93,012	$	79,248	$	61,514