Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2023 | May 05, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39888 | |
Entity Registrant Name | Affirm Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-2224323 | |
Entity Address, Address Line One | 650 California Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94108 | |
City Area Code | 415 | |
Local Phone Number | 984-0490 | |
Title of 12(b) Security | Class A common stock, par value $0.00001 per share | |
Trading Symbol | AFRM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --06-30 | |
Entity Central Index Key | 0001820953 | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 235,833,709 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 59,851,818 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Assets | ||
Cash and cash equivalents | $ 972,477 | $ 1,255,171 |
Restricted cash | 409,015 | 295,636 |
Securities available for sale at fair value | 1,059,031 | 1,595,373 |
Loans held for sale | 122 | 2,670 |
Loans held for investment | 3,775,542 | 2,503,561 |
Allowance for credit losses | (176,336) | (155,392) |
Loans held for investment, net | 3,599,206 | 2,348,169 |
Accounts receivable, net | 135,816 | 142,052 |
Property, equipment and software, net | 277,156 | 171,482 |
Goodwill | 537,126 | 539,534 |
Intangible assets | 48,267 | 78,942 |
Commercial agreement assets | 198,994 | 263,196 |
Other assets | 270,639 | 281,567 |
Total Assets | 7,507,849 | 6,973,792 |
Liabilities: | ||
Accounts payable | 30,022 | 33,072 |
Payable to third-party loan owners | 44,187 | 71,383 |
Accrued interest payable | 13,826 | 6,659 |
Accrued expenses and other liabilities | 192,360 | 237,598 |
Convertible senior notes, net | 1,413,345 | 1,706,668 |
Notes issued by securitization trusts | 1,788,853 | 1,627,580 |
Funding debt | 1,514,120 | 672,577 |
Total liabilities | 4,996,713 | 4,355,537 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Additional paid in capital | 4,918,756 | 4,231,303 |
Accumulated deficit | (2,385,285) | (1,605,902) |
Accumulated other comprehensive loss | (22,338) | (7,149) |
Total stockholders’ equity | 2,511,136 | 2,618,255 |
Total Liabilities and Stockholders’ Equity | 7,507,849 | 6,973,792 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | 2 | 2 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Assets of consolidated VIEs, included in total assets above | ||
Restricted cash | $ 409,015 | $ 295,636 |
Loans held for investment | 3,775,542 | 2,503,561 |
Allowance for credit losses | (176,336) | (155,392) |
Loans held for investment, net | 3,599,206 | 2,348,169 |
Accounts receivable, net | 135,816 | 142,052 |
Other assets | 270,639 | 281,567 |
Total Assets | 7,507,849 | 6,973,792 |
Liabilities of consolidated VIEs, included in total liabilities above | ||
Accounts payable | 30,022 | 33,072 |
Accrued interest payable | 13,826 | 6,659 |
Accrued expenses and other liabilities | 192,360 | 237,598 |
Notes issued by securitization trusts | 1,788,853 | 1,627,580 |
Funding debt | 1,514,120 | 672,577 |
Total liabilities | 4,996,713 | 4,355,537 |
Consolidated Variable Interest Entities | ||
Assets of consolidated VIEs, included in total assets above | ||
Restricted cash | 251,964 | 164,530 |
Loans held for investment | 3,382,808 | 2,179,026 |
Allowance for credit losses | (149,430) | (124,052) |
Loans held for investment, net | 3,233,378 | 2,054,974 |
Accounts receivable, net | 8,196 | 8,195 |
Other assets | 14,506 | 14,570 |
Total Assets | 3,508,044 | 2,242,269 |
Liabilities of consolidated VIEs, included in total liabilities above | ||
Accounts payable | 2,817 | 2,897 |
Accrued interest payable | 13,826 | 6,525 |
Accrued expenses and other liabilities | 14,119 | 15,494 |
Notes issued by securitization trusts | 1,788,853 | 1,627,580 |
Funding debt | 1,358,666 | 514,033 |
Total liabilities | 3,178,281 | 2,166,529 |
Total net assets | $ 329,763 | $ 75,740 |
Class A common stock | ||
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 3,030,000,000 | 3,030,000,000 |
Common stock, issued (in shares) | 234,561,926 | 227,255,529 |
Common stock, outstanding (in shares) | 234,561,926 | 227,255,529 |
Class B common stock | ||
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock, issued (in shares) | 60,088,662 | 60,109,844 |
Common stock, outstanding (in shares) | 60,088,662 | 60,109,844 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | ||||
Revenue | $ 148,482 | $ 144,223 | $ 451,475 | $ 409,507 |
Interest income | 178,270 | 134,599 | 470,393 | 390,256 |
Gain on sales of loans | 32,813 | 52,484 | 156,015 | 141,153 |
Servicing income | 21,413 | 23,456 | 64,277 | 44,242 |
Total Revenue, net | 380,978 | 354,762 | 1,142,160 | 985,158 |
Operating Expenses | ||||
Loss on loan purchase commitment | 31,224 | 46,853 | 105,256 | 163,796 |
Provision for credit losses | 66,438 | 66,294 | 237,377 | 182,581 |
Funding costs | 51,188 | 15,824 | 120,005 | 50,277 |
Processing and servicing | 65,229 | 43,371 | 186,096 | 110,421 |
Technology and data analytics | 161,792 | 110,291 | 463,500 | 283,293 |
Sales and marketing | 140,942 | 156,214 | 493,149 | 363,650 |
General and administrative | 139,266 | 142,466 | 458,877 | 419,962 |
Restructuring Charges | 34,934 | 0 | 34,934 | 0 |
Total Operating Expenses | 691,013 | 581,313 | 2,099,194 | 1,573,980 |
Operating Loss | (310,035) | (226,551) | (957,034) | (588,822) |
Other income, net | 103,522 | 172,139 | 175,067 | 68,507 |
Loss Before Income Taxes | (206,513) | (54,412) | (781,967) | (520,315) |
Income tax (benefit) expense | (836) | 259 | (2,584) | 706 |
Net Loss | (205,677) | (54,671) | (779,383) | (521,021) |
Other Comprehensive Income (Loss) | ||||
Foreign currency translation adjustments | 31 | 5,406 | (16,993) | 3,945 |
Unrealized gain (loss) on securities available for sale, net | 4,520 | (2,105) | 2,061 | (3,041) |
Net Other Comprehensive Income (Loss) | 4,294 | 3,301 | (15,189) | 904 |
Comprehensive Loss | $ (201,383) | $ (51,370) | $ (794,572) | $ (520,117) |
Net loss per share attributable to common stockholders for Class A and Class B | ||||
Basic (in USD per share) | $ (0.69) | $ (0.19) | $ (2.65) | $ (1.86) |
Diluted (in USD per share) | $ (0.69) | $ (0.19) | $ (2.65) | $ (1.86) |
Weighted average common shares outstanding | ||||
Basic (in shares) | 297,204,715 | 285,641,820 | 293,915,268 | 279,570,015 |
Diluted (in shares) | 297,204,715 | 285,641,820 | 293,915,268 | 279,570,015 |
Unrealized gain (loss) on cash flow hedges | $ (257) | $ 0 | $ (257) | $ 0 |
Merchant network revenue | ||||
Revenue | ||||
Revenue | 119,013 | 121,054 | 366,181 | 340,385 |
Virtual card network revenue | ||||
Revenue | ||||
Revenue | $ 29,469 | $ 23,169 | $ 85,294 | $ 69,122 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Beginning balance, Common Stock (in shares) at Jun. 30, 2021 | 269,358,104 | ||||
Beginning balance at Jun. 30, 2021 | $ 2,575,527 | $ 3 | $ 3,467,236 | $ (898,485) | $ 6,773 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock option (in shares) | 7,403,503 | ||||
Issuance of common stock upon exercise of stock options | 37,470 | 37,470 | |||
Issuance of common stock in acquisition (in shares) | 183,733 | ||||
Issuance of common stock in acquisition | 10,000 | 10,000 | |||
Repurchases of common stock (in shares) | (821) | ||||
Repurchases of common stock | (4) | (4) | |||
Vesting of restricted stock units (in shares) | 772,653 | ||||
Stock-based compensation | 104,879 | 104,879 | |||
Tax withholding on stock-based compensation | (39,817) | (39,817) | |||
Foreign currency translation adjustments | (3,802) | (3,802) | |||
Unrealized loss on securities available for sale | (279) | (279) | |||
Net Loss | (306,615) | (306,615) | |||
Ending balance, Common Stock (in shares) at Sep. 30, 2021 | 277,717,172 | ||||
Ending balance at Sep. 30, 2021 | 2,377,359 | $ 3 | 3,579,764 | (1,205,100) | 2,692 |
Beginning balance, Common Stock (in shares) at Jun. 30, 2021 | 269,358,104 | ||||
Beginning balance at Jun. 30, 2021 | 2,575,527 | $ 3 | 3,467,236 | (898,485) | 6,773 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustments | 3,945 | ||||
Net Loss | (521,021) | ||||
Ending balance, Common Stock (in shares) at Mar. 31, 2022 | 285,778,325 | ||||
Ending balance at Mar. 31, 2022 | 2,576,055 | $ 3 | 3,987,881 | (1,419,506) | 7,677 |
Beginning balance, Common Stock (in shares) at Sep. 30, 2021 | 277,717,172 | ||||
Beginning balance at Sep. 30, 2021 | 2,377,359 | $ 3 | 3,579,764 | (1,205,100) | 2,692 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock option (in shares) | 4,689,973 | ||||
Issuance of common stock upon exercise of stock options | 21,674 | 21,674 | |||
Vesting of restricted stock units (in shares) | 803,263 | ||||
Vesting of warrants for common stock | 198,383 | 198,383 | |||
Stock-based compensation | 101,920 | 101,920 | |||
Tax withholding on stock-based compensation | (72,963) | (72,963) | |||
Foreign currency translation adjustments | 2,341 | 2,341 | |||
Unrealized loss on securities available for sale | (657) | (657) | |||
Net Loss | (159,735) | (159,735) | |||
Ending balance, Common Stock (in shares) at Dec. 31, 2021 | 283,210,408 | ||||
Ending balance at Dec. 31, 2021 | 2,468,322 | $ 3 | 3,828,778 | (1,364,835) | 4,376 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock option (in shares) | 1,258,865 | ||||
Issuance of common stock upon exercise of stock options | 8,171 | 8,171 | |||
Repurchases of common stock (in shares) | (9,472) | ||||
Repurchases of common stock | (80) | (80) | |||
Vesting of restricted stock units (in shares) | 1,318,524 | ||||
Vesting of warrants for common stock | 92,169 | 92,169 | |||
Stock-based compensation | 113,005 | 113,005 | |||
Tax withholding on stock-based compensation | (54,162) | (54,162) | |||
Foreign currency translation adjustments | 5,406 | 5,406 | |||
Unrealized loss on securities available for sale | (2,105) | (2,105) | |||
Net Loss | (54,671) | (54,671) | |||
Ending balance, Common Stock (in shares) at Mar. 31, 2022 | 285,778,325 | ||||
Ending balance at Mar. 31, 2022 | 2,576,055 | $ 3 | 3,987,881 | (1,419,506) | 7,677 |
Beginning balance, Common Stock (in shares) at Jun. 30, 2022 | 287,365,373 | ||||
Beginning balance at Jun. 30, 2022 | 2,618,255 | $ 3 | 4,231,303 | (1,605,902) | (7,149) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock option (in shares) | 215,949 | ||||
Issuance of common stock upon exercise of stock options | 1,192 | 1,192 | |||
Forfeiture of common stock related to acquisitions (in shares) | (243,384) | ||||
Repurchases of common stock (in shares) | (12,437) | ||||
Repurchases of common stock | (109) | (109) | |||
Vesting of restricted stock units (in shares) | 2,166,715 | ||||
Vesting of warrants for common stock | 108,742 | 108,742 | |||
Stock-based compensation | 141,012 | 141,012 | |||
Tax withholding on stock-based compensation | (27,311) | (27,311) | |||
Foreign currency translation adjustments | (21,546) | (21,546) | |||
Unrealized loss on securities available for sale | (5,528) | (5,528) | |||
Net Loss | (251,269) | (251,269) | |||
Ending balance, Common Stock (in shares) at Sep. 30, 2022 | 289,492,216 | ||||
Ending balance at Sep. 30, 2022 | 2,563,438 | $ 3 | 4,454,829 | (1,857,171) | (34,223) |
Beginning balance, Common Stock (in shares) at Jun. 30, 2022 | 287,365,373 | ||||
Beginning balance at Jun. 30, 2022 | $ 2,618,255 | $ 3 | 4,231,303 | (1,605,902) | (7,149) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock option (in shares) | 726,425 | ||||
Foreign currency translation adjustments | $ (16,993) | ||||
Net Loss | (779,383) | ||||
Ending balance, Common Stock (in shares) at Mar. 31, 2023 | 294,650,588 | ||||
Ending balance at Mar. 31, 2023 | 2,511,136 | $ 3 | 4,918,756 | (2,385,285) | (22,338) |
Beginning balance, Common Stock (in shares) at Sep. 30, 2022 | 289,492,216 | ||||
Beginning balance at Sep. 30, 2022 | 2,563,438 | $ 3 | 4,454,829 | (1,857,171) | (34,223) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock option (in shares) | 300,903 | ||||
Issuance of common stock upon exercise of stock options | 1,372 | 1,372 | |||
Issuance of common stock, employee share purchase plan (in shares) | 500,443 | ||||
Issuance of common stock, employee share purchase plan | 5,921 | 5,921 | |||
Vesting of restricted stock units (in shares) | 1,798,218 | ||||
Vesting of warrants for common stock | 128,054 | 128,054 | |||
Stock-based compensation | 144,218 | 144,218 | |||
Tax withholding on stock-based compensation | (18,009) | (18,009) | |||
Foreign currency translation adjustments | 4,522 | 4,522 | |||
Unrealized loss on securities available for sale | 3,069 | 3,069 | |||
Net Loss | (322,437) | (322,437) | |||
Ending balance, Common Stock (in shares) at Dec. 31, 2022 | 292,091,780 | ||||
Ending balance at Dec. 31, 2022 | 2,510,148 | $ 3 | 4,716,385 | (2,179,608) | (26,632) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock option (in shares) | 185,225 | ||||
Issuance of common stock upon exercise of stock options | 716 | 716 | |||
Vesting of restricted stock units (in shares) | 2,373,583 | ||||
Vesting of warrants for common stock | 93,922 | 93,922 | |||
Stock-based compensation | 125,902 | 125,902 | |||
Tax withholding on stock-based compensation | (18,169) | (18,169) | |||
Foreign currency translation adjustments | 31 | 31 | |||
Unrealized loss on securities available for sale | 4,520 | 4,520 | |||
Unrealized gain (loss) on cash flow hedges | (257) | (257) | |||
Net Loss | (205,677) | (205,677) | |||
Ending balance, Common Stock (in shares) at Mar. 31, 2023 | 294,650,588 | ||||
Ending balance at Mar. 31, 2023 | $ 2,511,136 | $ 3 | $ 4,918,756 | $ (2,385,285) | $ (22,338) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net Loss | $ (779,383) | $ (521,021) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for credit losses | 237,377 | 182,581 |
Amortization of premiums and discounts on loans, net | (103,468) | (129,714) |
Gain on sales of loans | (156,015) | (141,153) |
Gain on extinguishment of debt | (89,841) | 0 |
Changes in fair value of assets and liabilities | (10,017) | (38,821) |
Amortization of commercial agreement assets | 64,202 | 72,804 |
Amortization of debt issuance costs | 13,198 | 13,215 |
Amortization of discount on securities available for sale | (23,711) | 968 |
Commercial agreement warrant expense | 330,718 | 157,023 |
Stock-based compensation | 348,372 | 280,113 |
Depreciation and amortization | 91,355 | 35,607 |
Other | 294 | (5,725) |
Change in operating assets and liabilities: | ||
Purchases of loans held for sale | (4,719,789) | (3,869,327) |
Proceeds from the sale of loans held for sale | 4,838,250 | 3,868,919 |
Accounts receivable, net | (1,784) | (42,467) |
Other assets | (3,292) | 28,018 |
Accounts payable | (3,618) | (8,773) |
Payable to third-party loan owners | (27,196) | (14,117) |
Accrued interest payable | 8,028 | 240 |
Accrued expenses and other liabilities | (45,288) | 28,545 |
Net Cash Used in Operating Activities | (31,608) | (103,085) |
Cash Flows from Investing Activities | ||
Purchases and origination of loans held for investment | (9,622,289) | (7,529,324) |
Proceeds from the sale of loans held for investment | 1,093,894 | 1,330,341 |
Principal repayments and other loan servicing activity | 7,199,568 | 5,867,583 |
Acquisition, net of cash and restricted cash acquired | (16,051) | (5,999) |
Additions to property, equipment and software | (95,917) | (59,254) |
Purchases of securities available for sale | (566,261) | (770,047) |
Proceeds from maturities and repayments of securities available for sale | 1,127,785 | 191,854 |
Other investing cash inflows (outflows) | 3,375 | (10,775) |
Net Cash Used in Investing Activities | (875,896) | (985,621) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of convertible debt, net | 0 | 1,704,300 |
Extinguishment of convertible debt | (206,567) | 0 |
Proceeds from funding debt | 5,048,803 | 2,776,245 |
Payment of debt issuance costs | (17,407) | (8,154) |
Principal repayments of funding debt | (4,195,110) | (2,572,876) |
Proceeds from issuance of notes and residual trust certificates by securitization trusts | 750,000 | 499,494 |
Principal repayments of notes issued by securitization trusts | (584,634) | (233,723) |
Proceeds from exercise of common stock options and warrants and contributions to ESPP | 8,909 | 67,740 |
Repurchases of common stock | (109) | (84) |
Payments of tax withholding for stock-based compensation | (63,489) | (166,942) |
Net Cash Provided by Financing Activities | 740,396 | 2,066,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,207) | 5,639 |
Net Increase in Cash, Cash Equivalents and Restricted Cash | (169,315) | 982,933 |
Cash, Cash equivalents and Restricted cash, Beginning of period | 1,550,807 | 1,692,632 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,381,492 | 2,675,565 |
Reconciliation to amounts on consolidated balance sheets (as of period end) | ||
Cash and cash equivalents | 972,477 | 2,261,937 |
Restricted cash | 409,015 | 413,628 |
Total Cash, Cash Equivalents and Restricted Cash | 1,381,492 | 2,675,565 |
Supplemental Disclosures of Cash Flow Information | ||
Cash payments for interest expense | 104,923 | 34,325 |
Cash paid for operating leases | 8,328 | 11,989 |
Cash paid for income taxes | 378 | 99 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities | ||
Stock-based compensation included in capitalized internal-use software | 62,760 | 39,691 |
Issuance of common stock in connection with acquisition | 0 | 10,000 |
Additions to property and equipment included in accrued expenses | 0 | 107 |
Securities retained under unconsolidated securitization transactions | 0 | 22,067 |
Right of use assets obtained in exchange for operating lease liabilities | $ 494 | $ 3,421 |
Business Description
Business Description | 9 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | Business Description Affirm Holdings, Inc. (“Affirm,” the “Company,” “we,” “us,” or “our”), headquartered in San Francisco, California, provides consumers with a simpler, more transparent, and flexible alternative to traditional payment options. Our mission is to deliver honest financial products that improve lives. Through our next-generation commerce platform, agreements with originating banks, and capital markets partners, we enable consumers to confidently pay for a purchase over time, with terms ranging from one Merchants partner with us to transform the consumer shopping experience and to acquire and convert customers more effectively through our frictionless point-of-sale payment solutions. Consumers get the flexibility to buy now and make simple regular payments for their purchases and merchants see increased average order value, repeat purchase rates, and an overall more satisfied customer base. Unlike legacy payment options and our competitors’ product offerings, which charge deferred or compounding interest and unexpected costs, we disclose up-front to consumers exactly what they will owe — no hidden fees, no deferred interest, no penalties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying interim condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), disclosure requirements for interim financial information, and the requirements of Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended June 30, 2022. The balance sheet as of June 30, 2022 has been derived from the audited financial statements at that date. Management believes these interim condensed consolidated financial statements reflect all adjustments, including those of a normal and recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. Our interim condensed financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all wholly owned subsidiaries and variable interest entities (“VIEs”), in which we have a controlling financial interest. These include various business trust entities and limited partnerships established to enter into warehouse credit agreements with certain lenders for funding debt facilities and certain asset-backed securitization transactions. All intercompany accounts and transactions have been eliminated in consolidation. Our variable interest arises from contractual, ownership, or other monetary interests in the entity, which changes with fluctuations in the fair value of the entity’s net assets. We consolidate a VIE when we are deemed to be the primary beneficiary. We assess whether or not we are the primary beneficiary of a VIE on an ongoing basis. Use of Estimates The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments and assumptions that affect the reported amounts in the interim condensed consolidated financial statements and the accompanying notes. Material estimates that are particularly susceptible to significant change relate to determination of variable consideration for revenue, the allowance for credit losses, capitalized internal-use software development costs, valuation allowance for deferred tax assets, loss on loan purchase commitment, the fair value of servicing assets and liabilities, discount on directly originated loans, the fair value of assets acquired and any contingent consideration transferred in business combinations, the evaluation for impairment of intangible assets and goodwill, the fair value of available for sale debt securities including retained interests in our securitization trusts, the fair value of residual certificates issued by our securitization trusts held by third parties, and stock-based compensation, including the fair value of warrants issued to nonemployees. We base our estimates on market-based inputs, historical experience, current events, and other factors we believe to be reasonable under the circumstances. These estimates are subjective in nature and to the extent that there are differences between these estimates and actual results, our financial condition or operating results in future periods may be affected. These estimates are based on information available as of the date of the interim condensed consolidated financial statements; therefore, actual results could differ materially from those estimates. Significant Accounting Policies There were no material changes to our significant accounting policies as disclosed in Note 2. Summary of Significant Accounting Policies of our Annual Report on Form 10-K for the fiscal year ended June 30, 2022, which was filed with the SEC on August 29, 2022. Recently Adopted Accounting Standards Financial Instruments - Credit Losses In March 2022, the FASB issued ASU 2022-02, “Financial Instruments— Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosure” which addresses areas identified by the FASB as part of its post-implementation review of the current expected credit losses model or “CECL” previously issued in ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326)”. The amendments in this ASU eliminate the accounting guidance for troubled debt restructurings by creditors while enhancing the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases in the vintage disclosures. For entities that have adopted ASU 2016-13, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted if an entity has adopted ASU 2016-13. Amendments in this ASU should be applied prospectively except for the transition method related to the accounting for troubled debt restructurings in which an entity has the option to apply a modified retrospective transition method resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. We early adopted the new standard effective July 1, 2022 on a prospective basis. The adoption of the guidance did not have a material impact on our interim condensed financial statements. Business Combinations In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires contract assets and contract liabilities, such as deferred revenue, acquired in a business combination to be recognized and measured in accordance with Topic 606 (Revenue from Contracts with Customers). ASU 2021-08 is expected to reduce diversity in practice and increase comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The ASU is effective for fiscal years beginning after December 15, 2022 and should be applied prospectively to acquisitions occurring on or after the effective date. Early adoption is permitted, including for interim periods, and is applicable to all business combinations for which the acquisition date occurs within the beginning of the fiscal year of adoption. We early adopted the new standard effective January 1, 2023 on a prospective basis. The adoption of the guidance did not have a material impact on our interim condensed financial statements. Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform |
Revenue
Revenue | 9 Months Ended |
Mar. 31, 2023 | |
Banking and Thrift, Interest [Abstract] | |
Revenue | Revenue The following table presents the company’s revenue disaggregated by revenue source (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Merchant network revenue $ 119,013 $ 121,054 $ 366,181 $ 340,385 Virtual card network revenue 29,469 23,169 85,294 69,122 Interest income 178,270 134,599 470,393 390,256 Gain on sales of loans 32,813 52,484 156,015 141,153 Servicing income 21,413 23,456 64,277 44,242 Total Revenue, net $ 380,978 $ 354,762 $ 1,142,160 $ 985,158 Merchant Network Revenue Merchant partners (or integrated merchants) are generally charged a fee based on gross merchandise volume (GMV) processed through the Affirm platform. The fees vary depending on the individual arrangement between us and each merchant and on the terms of the product offering. The fee is recognized at the point in time the merchant successfully confirms the transaction, which is when the terms of the executed merchant agreement are fulfilled. We may originate certain loans via our wholly-owned subsidiaries, with zero or below market interest rates. In these instances, the par value of the loans originated is in excess of the fair market value of such loans, resulting in a loss, which we record as a reduction to merchant network revenue. In certain cases, the losses incurred on loans originated for a merchant may exceed the total network revenue earned on those loans. To the extent we do not expect to recover the losses in future periods, we record the excess loss amounts as a sales and marketing expense. A portion of merchant network revenue relates to affiliate network revenue, which is generated when a user makes a purchase on a merchant’s website after being directed from an advertisement on Affirm’s website or mobile application. We earn a fixed placement fee and/or commission as a percentage of the associated sale. Revenue is recognized at the point in time when the performance obligation has been fulfilled, which is when the sale occurs. For the three and nine months ended March 31, 2023 and 2022, there were no merchants that exceeded 10% of total revenue. Virtual Card Network Revenue We have agreements with issuer processors to facilitate transactions through the issuance of virtual debit cards to be used by consumers at checkout. Consumers can apply for a virtual debit card through the Affirm app and, upon approval, receive a single-use virtual debit card to be used for their purchase online or offline at a non-integrated merchant. The virtual debit card is funded at the time a transaction is authorized using cash held by the issuer processor in a reserve fund. Our originating bank partner then originates a loan to the consumer once the transaction is confirmed by the merchant. The non-integrated merchants are charged interchange fees by the issuer processor for virtual debit card transactions, and the issuer processor shares a portion of this revenue with us. We also leverage this issuer processor as a means of integrating certain merchants. Similarly, for these arrangements with integrated merchants, the merchant is charged interchange fees by the issuer processor and the issuer processor shares a portion of this revenue with us. Interest Income Interest income consisted of the following components (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Interest income on unpaid principal balance $ 147,759 $ 95,253 $ 379,755 $ 266,868 Amortization of discount on loans 39,130 45,443 116,937 138,853 Amortization of premiums on loans (4,515) (3,407) (13,469) (9,139) Interest receivable charged-off, net of recoveries (4,104) (2,690) (12,830) (6,326) Total interest income $ 178,270 $ 134,599 $ 470,393 $ 390,256 We accrue interest income using the effective interest method. Interest income on a loan is accrued daily, based on the finance charge disclosed to the consumer, over the term of the loan based upon the principal outstanding. The accrual of interest on a loan is suspended if a formal dispute with the consumer involving either Affirm or the merchant of record is opened, or a loan is 120 days past due. Upon the resolution of a dispute with the consumer, the accrual of interest is resumed, and any interest that would have been earned during the disputed period is retroactively accrued. As of March 31, 2023 and June 30, 2022, the balance of loans held for investment on non-accrual status was $1.3 million and $1.7 million, respectively. Gain on Sales of Loans We sell certain loans we originate or purchase from our originating bank partners directly to third-party investors or to securitizations. We recognize a gain or loss on sale of loans sold to third parties or to unconsolidated securitizations as the difference between the proceeds received and the carrying value of the loan, adjusted for the initial recognition of any assets or liabilities incurred upon sale, which generally include a net servicing asset or liability in connection with our ongoing obligation to continue to service the loans and a recourse liability based on our estimate of future losses in connection with our obligation to repurchase loans that do not meet certain contractual requirements and such information about the loan was unknown at the time of sale. Servicing Income Servicing income includes contractual fees specified in our servicing agreements with third-party loan owners and unconsolidated securitizations that are earned from providing professional services to manage loan portfolios on their behalf. Servicing income also includes fair value adjustments for servicing assets and servicing liabilities. |
Loans Held for Investment and A
Loans Held for Investment and Allowance for Credit Losses | 9 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans Held for Investment and Allowance for Credit Losses | Loans Held for Investment and Allowance for Credit Losses Loans held for investment consisted of the following (in thousands): March 31, 2023 June 30, 2022 Unpaid principal balance $ 3,823,038 $ 2,516,733 Accrued interest receivable 33,997 20,697 Premiums on loans held for investment 7,896 8,911 Less: Discount due to loss on loan purchase commitment (45,368) (20,692) Less: Discount due to loss on directly originated loans (43,486) (20,443) Less: Fair value adjustment on loans acquired through business combination (535) (1,645) Total loans held for investment $ 3,775,542 $ 2,503,561 Loans held for investment includes loans originated through our originating bank partners and directly originated loans. The majority of the loans that are underwritten using our technology platform and originated by our originating bank partners are later purchased by us. We purchased loans from our originating bank partners in the amount of $3.7 billion and $11.7 billion during the three and nine months ended March 31, 2023, respectively, and $3.0 billion and $8.6 billion during the three and nine months ended March 31, 2022, respectively. These loans have a variety of lending terms as well as maturities ranging from one We closely monitor credit quality for our loan receivables to manage and evaluate our related exposure to credit risk. Credit risk management begins with initial underwriting, where loan applications are assessed against the credit underwriting policy and procedures for our directly originated loans and originating bank partner loans, and continues through to full repayment of a loan. To assess a consumer who requests a loan, we use, among other indicators, internally developed risk models using detailed information from external sources, such as credit bureaus where available, and internal historical experience, including the consumer’s prior repayment history on our platform as well as other measures. We combine these factors to establish a proprietary score as a credit quality indicator. Our proprietary score (“ITACs”) is assigned to most loans facilitated through our technology platform, ranging from zero to 100, with 100 representing the highest credit quality and therefore the lowest likelihood of loss. The ITACs model analyzes the characteristics of a consumer ’ s attributes that are shown to be predictive of both willingness and ability to repay including, but not limited to: basic features of a consumer ’ s credit profile, a consumer ’ s prior repayment performance with other creditors, current credit utilization, and legal and policy changes. When a consumer passes both fraud and credit policy checks, the application is assigned an ITACs score. ITACs is also used for portfolio performance monitoring. Our credit risk team closely tracks the distribution of ITACs at the portfolio level, as well as ITACs at the individual loan level to monitor for signs of a changing credit profile within the portfolio. Repayment performance within each ITACs band is also monitored to support both the integrity of the risk scoring models and to measure possible changes in consumer behavior amongst various credit tiers. The following table presents an analysis of the credit quality, by ITACS score, of the amortized cost basis excluding accrued interest receivable, by fiscal year of origination on loans held for investment and loans held for sale (in thousands) as of March 31, 2023: March 31, 2023 Amortized Costs Basis by Fiscal Year of Origination 2023 2022 2021 2020 2019 Prior Total 96+ $ 2,185,767 $ 94,353 $ 33,450 $ 9,085 $ 9 $ 1 $ 2,322,665 94-96 865,503 38,625 933 189 6 2 905,258 90-94 95,252 12,391 136 2 4 — 107,785 <90 16,786 2,795 6 2 — — 19,589 No score (1) 288,923 78,840 16,835 1,518 288 15 386,419 Total amortized cost basis $ 3,452,231 $ 227,004 $ 51,360 $ 10,796 $ 307 $ 18 $ 3,741,716 (1) This balance represents loan receivables in new markets without sufficient data currently available for use by the Affirm scoring methodology including loan receivables originated in Canada. The following table presents net charge-offs by fiscal year of origination for the nine months ended (in thousands) as of March 31, 2023: Net Charge-offs by Fiscal Year of Origination 2023 2022 2021 2020 2019 Prior Total Current period charge-offs (59,228) (161,934) (6,115) (509) (74) (26) (227,886) Current period recoveries 2,956 13,447 4,000 1,158 753 554 22,868 Current period net charge-offs $ (56,272) $ (148,487) $ (2,115) $ 649 $ 679 $ 528 $ (205,018) The following table presents an analysis of the credit quality, by ITACS score, of the amortized cost basis excluding accrued interest receivable, by fiscal year of origination on loans held for investment and loans held for sale (in thousands) as of June 30, 2022: June 30, 2022 Amortized Costs Basis by Fiscal Year of Origination 2022 2021 2020 2019 2018 Prior Total 96+ $ 1,218,104 $ 122,503 $ 33,458 $ 157 $ 1 $ — $ 1,374,223 94-96 620,403 11,240 773 13 2 — 632,431 90-94 220,056 3,886 6 4 — — 223,952 <90 44,300 135 2 — — — 44,437 No score (1) 186,044 20,554 3,368 444 79 2 210,491 Total amortized cost basis $ 2,288,907 $ 158,318 $ 37,607 $ 618 $ 82 $ 2 $ 2,485,534 (1) This balance represents loan receivables in new markets without sufficient data currently available for use by the Affirm scoring methodology including loan receivables originated in Canada. Loan receivables are defined as past due if either the principal or interest have not been received within four March 31, 2023 June 30, 2022 Non-delinquent loans $ 3,587,516 $ 2,322,919 4 – 29 calendar days past due 68,344 77,963 30 – 59 calendar days past due 32,591 34,669 60 – 89 calendar days past due 27,888 26,919 90 – 119 calendar days past due (1) 25,377 23,064 Total amortized cost basis $ 3,741,716 $ 2,485,534 (1) Includes $24.6 million and $22.7 million of loan receivables as of March 31, 2023 and June 30, 2022, respectively, that are 90 days or more past due, but are not on nonaccrual status. We maintain an allowance for credit losses at a level sufficient to absorb expected credit losses based on evaluating known and inherent risks in our loan portfolio. The allowance for credit losses is determined based on our current estimate of expected credit losses over the remaining contractual term, historical credit losses, consumer payment trends, estimates of recoveries, and future expectations as of each balance sheet date. Adjustments to the allowance each period for changes in our estimate of lifetime expected credit losses are recognized in earnings through the provision for credit losses presented on our interim condensed consolidated statements of operations and comprehensive loss. When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged against the allowance for credit losses. Loans are charged-off in accordance with our charge-off policy, as the contractual principal becomes 120 days past due. Subsequent recoveries of the unpaid principal balance, if any, are credited to the allowance for credit losses. The following table details activity in the allowance for credit losses, including charge-offs, recoveries and provision for loan losses (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Balance at beginning of period $ 182,100 $ 158,289 $ 155,392 $ 117,760 Provision for credit losses 61,480 62,021 225,962 172,720 Charge-offs (75,820) (67,280) (227,886) (145,307) Recoveries of charged-off receivables 8,576 6,445 22,868 14,302 Balance at end of period $ 176,336 $ 159,475 $ 176,336 $ 159,475 |
Acquisitions
Acquisitions | 9 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | AcquisitionsDuring the nine months ended March 31, 2023 and 2022, there was one acquisition accounted for as business combination in each of the respective years, discussed further below. Acquisitions completed during the three and nine months ended March 31, 2023 Butter Holdings Ltd On February 1, 2023, we completed the closing of the transaction contemplated by a share purchase agreement entered into with certain sellers to acquire the entire issued share capital of Butter Holdings Ltd., (“Butter”) a buy now, pay later company based in the United Kingdom. The purchase price was comprised of (i) $14.9 million in cash, subject to adjustments in accordance with the purchase agreement, and (ii) $1.5 million settlement of subordinated secured notes. The acquisition date fair value of the consideration transferred for Butter was approximately $16.3 million, which consisted of the following (in thousands): Cash $ 14,863 Settlement of subordinated secured notes 1,475 Total acquisition date fair value of the consideration transferred $ 16,337 The acquisition was accounted for as a business combination and reflects the application of acquisition accounting in accordance with ASC Topic 805, “Business Combinations” (“ASC 805”). The acquired identifiable intangible assets have been recorded at their estimated fair values with the excess purchase price assigned to goodwill. The goodwill was primarily attributed to future synergies from integration. The goodwill is not expected to be deductible for income tax purposes. The following table summarizes the allocation of the consideration paid of approximately $16.3 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Cash and cash equivalents $ 287 Loans held for investment, net 172 Accounts Receivable, net 11 Intangible assets 9,243 Other assets 672 Total assets acquired 10,385 Accounts payable 568 Accrued expenses and other liabilities 2,923 Total liabilities assumed 3,491 Net assets acquired 6,894 Goodwill 9,443 Total purchase price $ 16,337 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Fair Value Useful Life Lending license $ 9,243 Indefinite The fair value of the intangible asset was determined by applying the with-and-without method. The fair value measurements are based on significant unobservable inputs, including management estimates and assumptions, and thus represents Level 3 measurements. The transaction costs associated with the acquisition were immaterial for the three months ended March 31, 2023 and approximately $1.7 million for the nine months ended March 31, 2023, which are included in general and administrative expense in the interim consolidated statements of operations and comprehensive loss. Acquisitions completed during the nine months ended March 31, 2022 ShopBrain On July 1, 2021, we completed the acquisition of technology and intellectual property from Yroo, Inc. and entered into employment arrangements with certain of its employees (“the ShopBrain acquisition”). Yroo, Inc. is a data aggregation and cataloging technology company based in Canada (“ShopBrain”). The purchase price was comprised of (i) $30.0 million in cash and (ii) 151,745 shares of our Class A common stock issued to the shareholders of ShopBrain at closing. The acquisition date fair value of the consideration transferred was approximately $40.0 million, which consisted of the following (in thousands): Cash $ 30,000 Fair value of Class A common stock transferred 10,000 Total acquisition date fair value of the consideration transferred $ 40,000 The acquisition was accounted for as a business combination and reflects the application of acquisition accounting in accordance with ASC 805. The acquired identifiable intangible assets have been recorded at their estimated fair values with the excess purchase price assigned to goodwill. The goodwill was primarily attributed to future synergies from integration and the value of the assembled workforce. The goodwill is expected to be deductible for income tax purposes. The following table summarizes the allocation of the consideration paid of approximately $40.0 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Intangible assets $ 9,488 Total net assets acquired 9,488 Goodwill 30,512 Total purchase price $ 40,000 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Fair Value Useful Life Developed technology $ 9,488 3.0 The fair values of the intangible assets were determined by applying the replacement cost method. The fair value measurements are based on significant unobservable inputs, including management estimates and assumptions, and thus represents Level 3 measurements. The transaction costs associated with the acquisition were approximately $0.2 million for the nine months ended March 31, 2022, which are included in general and administrative expense within the interim condensed consolidated statements of operations and comprehensive loss. There were no transaction costs associated with the acquisition for the three months ended March 31, 2022. Other acquisitions Fast On April 19, 2022, we completed the closing of the transaction contemplated by a Release and Waiver Agreement entered into with Fast AF, Inc., (“Fast”) relating to the hiring of certain of its employees or service providers and an option to acquire certain of its assets. The purchase price was comprised of (i) $10.0 million in cash and (ii) forgiveness of a $15.0 million senior secured note issued to Fast in April 2022 prior to the closing. The acquisition was accounted for as an asset acquisition in accordance with ASC 805 since the assets acquired do not meet the definition of a business. The acquired identifiable intangible assets have been recorded at a total cost of $25.4 million, which includes approximately $0.4 million of transaction costs associated with the acquisition. The excess of the total cost of the assets over their total fair value was allocated between the assets on the basis of their relative fair values. The fair values of the intangible assets were determined by applying the replacement cost method. The fair value measurements are based on significant unobservable inputs, including management estimates and assumptions, and thus represent Level 3 measurements. The following table sets forth the identifiable intangible assets acquired and the cost allocated to each asset as of the date of acquisition (in thousands): Assembled workforce $ 12,490 Developed technology 1 $ 12,925 Total $ 25,415 (1) On March 10, 2023, we completed the purchase of the developed technology intangible asset. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Accounts Receivable, net Our accounts receivable consist primarily of amounts due from payment processors, merchant partners, affiliate network partners and servicing fees due from third-party loan owners. We evaluate accounts receivable to determine management’s current estimate of expected credit losses based on historical experience and future expectations and record an allowance for credit losses, as applicable. Our allowance for credit losses with respect to accounts receivable was $12.3 million and $13.9 million as of March 31, 2023 and June 30, 2022, respectively. Property, Equipment and Software, net Property, equipment and software, net consisted of the following (in thousands): March 31, 2023 June 30, 2022 Internally developed software $ 344,497 $ 200,621 Leasehold improvements 20,128 16,169 Computer equipment 10,797 10,751 Furniture and equipment 6,435 4,279 Total Property, equipment and software, at cost $ 381,857 $ 231,820 Less: Accumulated depreciation and amortization (104,701) (60,338) Total Property, equipment and software, net $ 277,156 $ 171,482 Depreciation and amortization expense on property, equipment and software was $23.9 million and $53.0 million for the three and nine months ended March 31, 2023, respectively, and $7.6 million and $19.2 million for the three and nine months ended March 31, 2022, respectively. No impairment losses related to property, equipment and software were recorded during the three and nine months ended March 31, 2023 and 2022. Goodwill and Intangible Assets The changes in the carrying amount of goodwill during the nine months ended March 31, 2023 were as follows (in thousands): Balance as of June 30, 2022 $ 539,534 Additions (1) 9,443 Effect of foreign currency translation (11,851) Balance as of March 31, 2023 $ 537,126 (1) Refer to Note 5. Acquisitions for a description of additions to goodwill during the nine months ended March 31, 2023. No impairment losses related to goodwill were recorded during the three and nine months ended March 31, 2023 and 2022. Intangible assets consisted of the following (in thousands): March 31, 2023 Gross Accumulated Amortization Net Weighted Average Remaining Useful Life Merchant relationships $ 37,933 $ (19,887) $ 18,046 2.9 Developed technology 39,500 (26,159) 13,340 1.2 Assembled workforce 12,490 (7,909) 4,581 0.6 Trademarks and domains, definite 1,460 (932) 528 1.9 Trademarks, licenses and domains, indefinite 11,422 — 11,422 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 103,155 $ (54,887) $ 48,267 June 30, 2022 Gross Accumulated Amortization Net Weighted Average Merchant relationships $ 38,371 $ (10,281) $ 28,090 3.6 Developed technology 39,782 (15,882) 23,900 1.9 Assembled workforce 12,490 (1,664) 10,826 1.3 Trademarks and domains, definite 1,507 (802) 705 2.4 Trademarks and domains, indefinite 2,146 — 2,146 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 94,646 $ (28,629) $ 66,017 Amortization expense for intangible assets was $23.6 million and $38.4 million for the three and nine months ended March 31, 2023, respectively, and $5.5 million and $16.4 million for the three and nine months ended March 31, 2022, respectively . No impairment losses related to intangible assets were recorded during the three and nine months ended March 31, 2023 and 2022. The expected future amortization expense of these intangible assets as of March 31, 2023 is as follows (in thousands): 2023 (remaining three months) $ 25,910 2024 10,260 2025 251 2026 59 2027 and thereafter 15 Total amortization expense $ 36,495 Commercial Agreement Assets During the year ended June 30, 2022, we granted warrants in connection with our commercial agreements with certain subsidiaries of Amazon.com, Inc. (“Amazon”). The warrants were granted in exchange for certain performance provisions and the benefit of acquiring new users. We recognized an asset of $133.5 million associated with the portion of the warrants that were fully vested upon grant. The asset was valued based on the fair value of the warrants and represents the probable future economic benefit to be realized over the approximate 3.2 year term of the commercial agreement at the grant date. For the three and nine months ended March 31, 2023, we recognized amortization expense of $10.2 million and $31.1 million, respectively, and $10.2 million and $16.0 million for the three and nine months ended March 31, 2022 in our interim condensed consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. Refer to Note 15. Stockholders’ Equity for further discussion of the warrants. During the year ended June 30, 2021, we recognized an asset in connection with a commercial agreement with Shopify Inc. (“Shopify”), in which we granted warrants in exchange for the opportunity to acquire new merchant partners. This asset represents the probable future economic benefit to be realized over the expected benefit period and is valued based on the fair value of the warrants on the grant date. We recognized an asset of $270.6 million associated with the fair value of the warrants, which were fully vested as of March 31, 2023. The expected benefit period of the asset was initially estimated to be four years, and the remaining useful life of the asset is reevaluated each reporting period. During fiscal year 2022, the remaining expected benefit period was extended by two years upon the execution of an amendment to the commercial agreement with Shopify which extended the term of the agreement. During the three and nine months ended March 31, 2023, we recorded amortization expense related to the commercial agreement asset of $8.8 million and $26.9 million, respectively, and $16.7 million and $50.7 million for the three and nine months ended March 31, 2022, respectively, in our interim condensed consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. During the year ended June 30, 2021, we recognized an asset in connection with a commercial agreement with an enterprise partner, in which we granted stock appreciation rights in exchange for the benefit of acquiring access to the partner's consumers. This asset represents the probable future economic benefit to be realized over the three-year expected benefit period and is valued based on the fair value of the stock appreciation rights on the grant date. We initially recognized an asset of $25.9 million associated with the fair value of the stock appreciation rights. During the three and nine months ended March 31, 2023, we recorded amortization expense related to the asset of $2.0 million and $6.2 million, respectively, and $2.0 million and $6.0 million for the three and nine months ended March 31, 2022, respectively, in our interim condensed consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. Other Assets Other assets consisted of the following (in thousands): March 31, 2023 June 30, 2022 Processing reserves $ 53,728 $ 26,483 Derivative instruments 49,459 49,983 Equity securities, at cost 43,172 43,172 Operating lease right-of-use assets 34,054 50,671 Prepaid expenses 29,878 37,497 Other assets 60,348 73,761 Total other assets $ 270,639 $ 281,567 Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands) March 31, 2023 June 30, 2022 Operating lease liability $ 55,977 $ 65,713 Collateral held for derivative instruments 52,219 55,779 Accrued expenses 39,967 67,343 Other liabilities 44,197 48,763 Total accrued expenses and other liabilities $ 192,360 $ 237,598 |
Leases
Leases | 9 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We lease facilities under operating leases with various expiration dates through 2030. We have the option to renew or extend our leases. Certain lease agreements include the option to terminate the lease with prior written notice ranging from nine months to one year. As of March 31, 2023, we have not considered such provisions in the determination of the lease term, as it is not reasonably certain these options will be exercised. Leases have remaining terms that range from less than one year to eight years. Several leases require us to obtain standby letters of credit, naming the lessor as a beneficiary. These letters of credit act as security for the faithful performance by us of all terms, covenants and conditions of the lease agreement. The cash collateral and deposits for the letters of credit have been recognized as restricted cash in the interim condensed consolidated balance sheets and totaled $9.7 million as of both March 31, 2023 and June 30, 2022. There was no impairment expense incurred related to leases during the three and nine months ended March 31, 2023. For the three and nine months ended March 31, 2022 the impairment expense related to leases was not material to our interim consolidated statement of operations. Operating lease expense is as follows (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Operating lease expense (1) $8,325 $3,900 $15,841 $11,400 (1) During the three and nine months ended March 31, 2023, we incurred charges of $4.7 million, within restructuring charges, net, on our interim consolidated statements of operations, related to a reduction to our ROU lease assets which were attributed to certain leased space we are no longer utilizing for our business operations. We have subleased a portion of our leased facilities. Sublease income totaled $0.9 million and $2.6 million during the three and nine months ended March 31, 2023, respectively, and $0.9 million and $2.3 million during the three and nine months ended March 31, 2022, respectively. Lease term and discount rate information are summarized as follows: March 31, 2023 Weighted average remaining lease term (in years) 4.0 Weighted average discount rate 4.8% Maturities of lease liabilities as of March 31, 2023 are as follows (in thousands) for the years ended: 2023 (remaining three months) $ 4,095 2024 16,504 2025 16,317 2026 15,371 2027 and thereafter 10,354 Total lease payments 62,641 Less imputed interest (6,664) Present value of lease liabilities $ 55,977 |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Repurchase Obligation Under the normal terms of our whole loans sales to third-party investors, we may become obligated to repurchase loans from investors in certain instances where a breach in representation and warranties is identified. Generally, a breach in representation and warranties would occur where a loan has been identified as subject to verified or suspected fraud, or in cases where a loan was serviced or originated in violation of Affirm’s guidelines. We would only experience a loss if the contractual repurchase price of the loan exceeds the fair value on the repurchase date. This amount was not material as of March 31, 2023. Legal Proceedings From time to time, we are subject to legal proceedings and claims in the ordinary course of business. The results of such matters often cannot be predicted with certainty. In accordance with applicable accounting guidance, we establish an accrued liability for legal proceedings and claims when those matters present loss contingencies which are both probable and reasonably estimable. Toole v. Affirm Holdings, Inc. On February 28, 2022, plaintiff Jeffrey Toole filed a putative class action against Affirm and Max Levchin in the U.S. District Court for the Northern District of California (the “Toole action”). The Toole action alleged that Affirm violated Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder by issuing and then subsequently deleting a tweet from its official Twitter account on February 10, 2022, which omitted full details of Affirm’s second quarter fiscal 2022 financial results. Plaintiff sought class certification, unspecified compensatory and punitive damages, and costs and expenses. On September 28, 2022, the Court granted Affirm’s motion to dismiss for failure to state a claim with leave to amend within 21 days. No amended complaint was filed by the deadline. On October 20, 2022, the Court dismissed the putative class action and entered judgment in Affirm’s favor. Vallieres v Levchin, et al. On April 25, 2022, plaintiff Michael Vallieres filed a shareholder derivative lawsuit in the U.S. District Court for the Northern District of California (the “Vallieres action”) against Affirm, as a nominal defendant, and certain of Affirm’s current officers and directors as defendants based on allegations substantially similar to those in the Toole action. The Vallieres complaint purported to assert claims on Affirm's behalf for breach of fiduciary duty, gross mismanagement, abuse of control, unjust enrichment, and contribution under the federal securities laws, and sought corporate reforms, unspecified damages and restitution, and fees and costs. On January 12, 2023, the Court dismissed the derivative action without prejudice. Williams v. Levchin, et al. On September 16, 2022, plaintiff Ron Williams filed a shareholder derivative lawsuit in the U.S. District Court for the Northern District of California (the “Williams action”) against Affirm, as a nominal defendant, and certain of Affirm’s current and former officers and directors as defendants based on allegations substantially similar to those in the Toole action and Vallieres action. The Williams complaint purported to assert six causes of action on Affirm's behalf—violation of Section 14(a) of the Exchange Act, breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets. The plaintiff in the Williams action also alleged a cause of action against defendant Levchin for contribution under 10(b) and 21D of the Exchange Act. The Williams complaint sought corporate reforms, unspecified damages and restitution, and fees and costs. On December 22, 2022, the Court dismissed the derivative action without prejudice. Kusnier v. Affirm Holdings, Inc. On December 8, 2022, plaintiff Mark Kusnier filed a putative class action lawsuit against Affirm, Max Levchin, and Michael Linford in the U.S. District Court for the Northern District of California (the “Kusnier action”). Plaintiff’s amended complaint filed on May 5, 2023 alleges that defendants: (i) caused Affirm to make materially false and/or misleading statements and/or failed to disclose that Affirm’s BNPL service facilitated excessive consumer debt (including with respect to certain for-profit educational institutions), regulatory arbitrage, and data harvesting; (ii) made false and/or misleading statements about certain public regulatory actions; and (iii) made false and/or misleading statements about whether Affirm’s business model was vulnerable to interest rate changes. In light of the above, plaintiff asserts that Affirm violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and that Levchin and Linford violated Section 20(a) of the Exchange Act. Plaintiff seeks class certification, unspecified compensatory and punitive damages, and costs and expenses. Quiroga v. Levchin, et al. On March 29, 2023, plaintiff John Quiroga filed a shareholder derivative lawsuit in the U.S. District Court for the Northern District of California against Affirm, as a nominal defendant, and certain of Affirm's current officers and directors as defendants based on allegations substantially similar to those in the Kusnier action. The Quiroga complaint purports to assert claims on Affirm's behalf for contribution under the federal securities laws, breaches of fiduciary duty, unjust enrichment, and waste of corporate assets, and seeks corporate reforms, unspecified damages and restitution, and fees and costs. On May 1, 2023, the action was stayed by agreement of the parties. The stay can be lifted at the request of either party or upon certain conditions relating to the resolution of the Kusnier action. We have determined, based on current knowledge, that the aggregate amount or range of losses that are estimable with respect to our legal proceedings, including the matters described above, would not have a material adverse effect on our consolidated financial position, results of operations or cash flows. Amounts accrued as of March 31, 2023 were not material. The ultimate outcome of legal proceedings involves judgments, estimates and inherent uncertainties, and cannot be predicted with certainty. |
Transactions with Related Parti
Transactions with Related Parties | 9 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties In the ordinary course of business, we may enter into transactions with directors, principal officers, their immediate families and affiliated companies in which they are principal stockholders (commonly referred to as related parties). Some of our directors, principal officers, and their immediate families have received loans facilitated by us, in accordance with our regular consumer loan offerings. As of March 31, 2023, the outstanding balance and interest earned on such accounts is immaterial. |
Debt
Debt | 9 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt encompasses funding debt, convertible senior notes and our revolving credit facility. Funding Debt Funding debt and its aggregate future maturities consists of the following (in thousands): March 31, 2023 June 30, 2022 2023 $ 17,503 $ 158,547 2024 598,318 421,484 2025 419,580 — 2026 231,308 — 2027 and thereafter 261,210 103,364 Total $ 1,527,919 $ 683,395 Deferred debt issuance costs (13,799) (10,818) Total funding debt, net of deferred debt issuance costs $ 1,514,120 $ 672,577 Warehouse Credit Facilities Through subsidiaries, we entered into warehouse credit facilities with certain lenders to finance the purchase and origination of our loans. Borrowings under these agreements are referred to as funding debt and proceeds from the borrowings can only be used for the purposes of facilitating loan funding and origination, with advance rates ranging from 82% to 88% of the total collateralized balance. These revolving facilities mature between fiscal years 2024 and 2029, and subject to covenant compliance, generally permit borrowings up to 12 months prior to the final maturity date of each respective facility. As of March 31, 2023, the aggregate commitment amount of these facilities was $4.0 billion on a revolving basis, of which $1.5 billion was drawn, with $2.5 billion remaining available. Some of the loans originated by us or purchased from the originating bank partners are pledged as collateral for borrowings in our facilities. The unpaid principal balance of these loans totaled $1.8 billion and $0.8 billion as of March 31, 2023 and June 30, 2022, respectively. Our U.S. based warehouse credit facilities and certain lending facilities funding the origination of loans outside of the U.S., have been classified as VIEs and are bankruptcy-remote special-purpose vehicles in which creditors do not have recourse against the general credit of Affirm. Funding debt, net of deferred issuance costs, primarily held within our VIEs represents $1.5 billion and $0.7 billion, as of March 31, 2023 and June 30, 2022, respectively. We accrue monthly interest expense on each warehouse based on the contractual terms set forth in the applicable credit agreement. Interest expense also includes capitalized transaction fees which are amortized on a straight-line basis over the term of the warehouse agreement. The contractual interest rate varies across each warehouse facility and is either based on a benchmark interest rate (such as LIBOR, SOFR, Canadian Prime Rate, CDOR, or the Government of Canada Central Bank Rate), or an alternative commercial paper rate (which is the per annum rate equivalent to the weighted-average of the per annum rates at which all commercial paper notes were issued by certain lenders to fund advances or maintain loans), plus a spread ranging from 1.25% to 4.25%. In addition, these agreements require payment of a monthly unused commitment fee ranging from 0.00% to 0.75% per annum on the undrawn portion available. These agreements contain certain customary negative covenants and financial covenants including maintaining certain levels of minimum liquidity, maximum leverage, and minimum tangible net worth. As of March 31, 2023, we were in compliance with all applicable covenants in the agreements. Repurchase Agreements We entered into certain sale and repurchase agreements pursuant to our retained interests in our off-balance sheet securitizations where we have sold these securities to a counterparty with an obligation to repurchase at a future date and price. The repurchase agreements each have an initial term of three months and subject to mutual agreement by Affirm and the counterparty, we may enter into a repurchase date extension for an additional three month term at market interest rates on such extension date. As of March 31, 2023, the interest rates were 6.68% for both the senior pledged securities and the residual certificate pledged securities. We had $17.5 million and $27.0 million in debt outstanding under our repurchase agreements disclosed within funding debt on the interim condensed consolidated balance sheets as of March 31, 2023 and June 30, 2022, respectively. The debt will be amortized through regular principal and interest payments on the pledged securities. The outstanding debt relates to $25.2 million and $32.4 million in pledged securities disclosed within securities available for sale at fair value on the interim condensed consolidated balance sheets as of March 31, 2023 and June 30, 2022, respectively. Convertible Senior Notes On November 23, 2021, we issued $1,725 million in aggregate principal amount of 0% convertible senior notes due 2026 (the “2026 Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The total net proceeds from this offering, after deducting debt issuance costs, were approximately $1,704 million. The 2026 Notes represent senior unsecured obligations of the Company. The 2026 Notes do not bear interest except in special circumstances described below, and the principal amount of the 2026 Notes does not accrete. The 2026 Notes mature on November 15, 2026. Each $1,000 of principal of the 2026 Notes will initially be convertible into 4.6371 shares of our common stock, which is equivalent to an initial conversion price of approximately $215.65 per share, subject to adjustment upon the occurrence of certain specified events set forth in the indenture governing the 2026 Notes (the “Indenture”). Holders of the 2026 Notes may convert their 2026 Notes at their option at any time on or after August 15, 2026 until close of business on the second scheduled trading day immediately preceding the maturity date of November 15, 2026. Further, holders of the 2026 Notes may convert all or any portion of their 2026 Notes at their option prior to the close of business on the business day immediately preceding August 15, 2026, only under the following circumstances: 1) during any calendar quarter commencing after March 31, 2022 (and only during such calendar quarter), if the last reported sale price of the Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; 2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price (as defined in the indenture governing the 2026 Notes) per $1,000 principal amount of the 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; 3) if the Company calls any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or 4) upon the occurrence of certain specified corporate events. Upon conversion of the 2026 Notes, the Company will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at the Company’s election. If we satisfy our conversion obligation solely in cash or through payment and delivery, as the case may be, of a combination of cash and shares of our common stock, the amount of cash and shares of common stock, if any, due upon conversion will be based on a daily conversion value (as set forth in the Indenture) calculated on a proportionate basis for each trading day in a 40 trading day observation period. No sinking fund is provided for the 2026 Notes. We may not redeem the notes prior to November 20, 2024. We may redeem for cash all or part of the notes on or after November 20, 2024 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid special interest, if any. If a fundamental change (as defined in the Indenture) occurs prior to the maturity date, holders of the 2026 Notes may require us to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount of the 2026 Notes, plus any accrued and unpaid interest to, but excluding, the repurchase date. In addition, if specific corporate events occur prior to the maturity date of the 2026 Notes, we will be required to increase the conversion rate for holders who elect to convert their 2026 Notes in connection with such corporate events. During the three and nine months ended March 31, 2023, we entered into a series of privately negotiated transactions with certain holders of our 2026 Notes, pursuant to which we paid an aggregate amount of $206.6 million in cash for the repurchase of $299.1 million aggregate principal amount of our 2026 Notes (the “2026 Note Repurchases”). The carrying amount of the extinguished 2026 Notes was approximately $296.4 million resulting in a $89.8 million gain on early extinguishment of debt, which is reported as a component of other income, net The convertible senior notes outstanding as of March 31, 2023 consisted of the following (in thousands): Principal Amount Unamortized Discount and Issuance Cost Net Carrying Amount Convertible Senior Notes $ 1,425,900 $ (12,555) $ 1,413,345 The 2026 Notes do not bear interest. We recognized $1.0 million and $3.1 million during the three and nine months ended March 31, 2023, respectively, and $1.0 million and $1.4 million during the three and nine months ended March 31, 2022, respectively, of interest expense related to the amortization of debt discount and issuance costs in the interim condensed consolidated statement of operations and comprehensive loss within other income, net Revolving Credit Facility On February 4, 2022, we entered into a revolving credit agreement with a syndicate of commercial banks for a $165.0 million unsecured revolving credit facility. On May 16, 2022, we increased unsecured revolving commitments under the facility to $205.0 million. This facility bears interest at a rate equal to, at our option, either (a) a Secured Overnight Financing Rate (“SOFR”) rate determined by reference to the forward-looking term SOFR rate for the interest period, plus an applicable margin of 1.85% per annum or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50% per annum, (ii) the rate last quoted by the Wall Street Journal as the U.S. prime rate and (iii) the one-month forward-looking term SOFR rate plus 1.00% per annum, in each case, plus an applicable margin of 0.85% per annum. The revolving credit agreement has a final maturity date of February 4, 2025. The facility contains certain covenants and restrictions, including certain financial maintenance covenants, and requires payment of a monthly unused commitment fee of 0.20% per annum on the undrawn balance available. There are no borrowings outstanding under the facility as of March 31, 2023. |
Securitization and Variable Int
Securitization and Variable Interest Entities | 9 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Securitization and Variable Interest Entities | Securitization and Variable Interest Entities Consolidated VIEs Warehouse Credit Facilities We established certain entities, deemed to be VIEs, to enter into warehouse credit facilities for the purpose of purchasing loans from our originating bank partners and funding directly originated loans. Refer to Note 10. Debt for additional information. The creditors of the VIEs have no recourse to the general credit of Affirm and the liabilities of the VIEs can only be settled by the respective VIEs’ assets; however, as the servicer of the loans pledged to our warehouse funding facilities, we have the power to direct the activities that most significantly impact the VIEs' economic performance. In addition, we retain significant economic exposure to the pledged loans and therefore, we are the primary beneficiary. Securitizations In connection with our asset-backed securitization program, we sponsor and establish trusts (deemed to be VIEs) to ultimately purchase loans facilitated by our platform. Securities issued from our asset-backed securitizations are senior or subordinated, based on the waterfall criteria of loan payments to each security class. The subordinated residual interests issued from these transactions are first to absorb credit losses in accordance with the waterfall criteria. For these VIEs, the creditors have no recourse to the general credit of Affirm and the liabilities of the VIEs can only be settled by the respective VIEs’ assets. Additionally, the assets of the VIEs can be used only to settle obligations of the VIEs. We consolidate securitization VIEs when we are deemed to be the primary beneficiary and therefore have the power to direct the activities that most significantly affect the VIEs’ economic performance and a variable interest that could potentially be significant to the VIE. Through our role as the servicer, we have the power to direct the activities that most significantly affect the VIEs’ economic performance. In evaluating whether we have a variable interest that could potentially be significant to the VIE, we consider our retained interests. We also earn a servicing fee which has a senior distribution priority in the payment waterfall. In evaluating whether we are the primary beneficiary, management considers both qualitative and quantitative factors regarding the nature, size and form of our involvement with the VIEs. Management assesses whether we are the primary beneficiary of the VIEs on an ongoing basis. Where we consolidate the securitization trusts, the loans held in the securitization trusts are included in loans held for investment, and the notes sold to third-party investors are recorded in notes issued by securitization trusts in the interim condensed consolidated balance sheets. For each securitization, the residual certificates represent the right to receive excess cash on the loans each collection period after all fees and required distributions have been made to the note holders on the related payment date. For the majority of consolidated securitization VIEs, we retain 100% of the residual trust certificates issued by the securitization trust. Any portion of the residual trust certificates sold to third-party investors are measured at fair value, using a discounted cash flow model, and presented within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. In addition to the retained residual certificates, our continued involvement includes loan servicing responsibilities over the life of the underlying loans. We defer and amortize debt issuance costs for consolidated securitization trusts on a straight-line basis over the expected life of the notes. The following tables present the aggregate carrying value of financial assets and liabilities within consolidated VIEs (in thousands): March 31, 2023 Assets Liabilities Net Assets Warehouse credit facilities $ 1,585,168 $ 1,386,167 $ 199,001 Securitizations 1,922,876 1,792,114 130,762 Total consolidated VIEs $ 3,508,044 $ 3,178,281 $ 329,763 June 30, 2022 Assets Liabilities Net Assets Warehouse credit facilities $ 563,207 $ 534,422 $ 28,785 Securitizations 1,679,062 1,632,107 46,955 Total consolidated VIEs $ 2,242,269 $ 2,166,529 $ 75,740 Unconsolidated VIEs Our transactions with unconsolidated VIEs include securitization trusts where we did not retain significant economic exposure through our variable interests and therefore we determined that we are not the primary beneficiary as of March 31, 2023. The following information pertains to unconsolidated VIEs where we hold a variable interest but are not the primary beneficiary (in thousands): March 31, 2023 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 505,301 $ 489,938 $ 15,363 $ 25,252 Total unconsolidated VIEs $ 505,301 $ 489,938 $ 15,363 $ 25,252 June 30, 2022 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 996,242 $ 965,909 $ 30,333 $ 51,248 Total unconsolidated VIEs $ 996,242 $ 965,909 $ 30,333 $ 51,248 Maximum exposure to losses represents our exposure through our continuing involvement as servicer and through our retained interests. For unconsolidated VIEs, this includes $25.2 million in retained notes and residual certificates disclosed within securities available for sale at fair value in our interim condensed consolidated balance sheet s and an immaterial amount re lated to our servicing assets disclosed within other assets in our interim condensed consolidated balance sheets as of March 31, 2023. Additionally, we may experience a loss due to future repurchase obligations resulting from breaches in representations and warranties in our securitization and third-party sale agreements. This amount was not material as of March 31, 2023. Retained Beneficial Interests in Unconsolidated VIEs The investors of the securitizations have no direct recourse to the assets of Affirm, and the timing and amount of beneficial interest payments is dependent on the performance of the underlying loan assets held within each trust. We have classified our retained beneficial interests in unconsolidated securitization trusts as “available for sale” and as such they are disclosed at fair value in our interim condensed consolidated balance sheets. See Note 14. Fair Value of Financial Assets and Liabilities for additional information on the fair value sensitivity of the notes receivable and residual certificates. Additionally, as of March 31, 2023 , we have pledged each of our ret ained beneficial interests as collateral in a sale and repurchase agreement as described in Note 10. Debt . |
Investments
Investments | 9 Months Ended |
Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments Marketable Securities Marketable securities include certain investments classified as cash and cash equivalents and securities available for sale, at fair value, and consist of the following as of each date presented within the interim condensed consolidated balance sheets (in thousands): March 31, 2023 June 30, 2022 Cash and cash equivalents: Money market funds $ 204,449 $ 162,483 Certificates of deposit — 16,026 Commercial paper 156,887 229,272 Government bonds US 193,175 58,541 Securities available for sale: Certificates of deposit 145,528 300,390 Corporate bonds 292,726 368,671 Commercial paper 186,143 478,293 Agency bonds 35,194 — Government bonds Non-US 6,108 17,955 US 367,081 378,386 Securitization notes receivable and certificates (1) 25,235 51,678 Other 1,016 — Total marketable securities: $ 1,613,542 $ 2,061,695 (1) These securities have been pledged as collateral in connection with sale and repurchase agreements as discussed within Note 10. Debt. Securities Available for Sale, at Fair Value The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of March 31, 2023 and June 30, 2022 were as follows (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Certificates of deposit $ 145,813 $ 21 $ (306) $ — $ 145,528 Corporate bonds 296,186 225 (3,685) — 292,726 Commercial paper (1) 343,077 62 (109) — 343,030 Agency bonds 35,092 102 — — 35,194 Government bonds Non-US 6,258 — (150) — 6,108 US (1) 561,761 366 (1,871) — 560,256 Securitization notes receivable and certificates (2) 26,330 — (616) (479) 25,235 Other 1,016 — — — 1,016 Total securities available for sale $ 1,415,533 $ 776 $ (6,737) $ (479) $ 1,409,093 June 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Certificates of deposit (1) $ 317,331 $ 6 $ (921) $ — $ 316,416 Corporate bonds (1) 371,907 7 (3,243) — 368,671 Commercial paper (1) 708,694 16 (1,145) — 707,565 Government bonds Non-US 18,196 — (241) — 17,955 US (1) 438,947 — (2,020) — 436,927 Securitization notes receivable and certificates (2) 52,180 178 (659) (21) 51,678 Total securities available for sale $ 1,907,255 $ 207 $ (8,229) $ (21) $ 1,899,212 (1) Certificates of deposit, corporate bonds, commercial paper, and US government bonds include $350.1 million and $303.8 million as of March 31, 2023 and June 30, 2022, respectively, classified as cash and cash equivalents within the interim condensed consolidated balance sheets. (2) These securities have been pledged as collateral in connection with sale and repurchase agreements as discussed within Note 10. Debt. As of March 31, 2023 and June 30, 2022, there were no material reversals of prior period allowance for credit losses recognized for available for sale securities. A summary of securities available for sale with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time that individual securities have been in a continuous loss position as of March 31, 2023 and June 30, 2022, are as follows (in thousands): March 31, 2023 Less than or equal to 1 year Greater than 1 year Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificates of deposit $ 123,816 $ (306) $ — $ — $ 123,816 $ (306) Corporate bonds 243,747 (3,364) 29,672 (321) 273,419 (3,685) Commercial paper 151,058 (109) — — 151,058 (109) Government bonds Non-US 2,089 (43) 4,018 (107) 6,107 (150) US 201,831 (1,871) — — 201,831 (1,871) Total securities available for sale (1) $ 722,541 $ (5,693) $ 33,690 $ (428) $ 756,231 $ (6,121) June 30, 2022 Less than or equal to 1 year Greater than 1 year Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificates of deposit $ 290,169 $ (921) $ — $ — $ 290,169 $ (921) Corporate bonds 351,088 (3,243) — — 351,088 (3,243) Commercial paper 679,272 (1,145) — — 679,272 (1,145) Government bonds Non-US 17,955 (241) — — 17,955 (241) US 431,903 (2,020) — — 431,903 (2,020) Securitization notes receivable and certificates 722 (45) — — 722 (45) Total securities available for sale (1) $ 1,771,109 $ (7,615) $ — $ — $ 1,771,109 $ (7,615) (1) The number of positions with unrealized losses for which an allowance for credit losses has not been recorded totaled 133 and 270 as of March 31, 2023 and June 30, 2022, respectively. The length of time to contractual maturities of securities available for sale as of March 31, 2023 and June 30, 2022 were as follows (in thousands): March 31, 2023 Within 1 year Greater than 1 year, less than or equal to 5 years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Certificates of deposit (2) $ 145,813 $ 145,528 $ — $ — $ 145,813 $ 145,528 Corporate bonds (2) 161,736 160,486 134,450 132,240 296,186 292,726 Commercial paper (2) 343,077 343,030 — — 343,077 343,030 Agency bonds 31,411 31,511 3,681 3,683 35,092 35,194 Government bonds Non-US 4,126 4,019 2,132 2,089 6,258 6,108 US (2) 491,446 490,718 70,315 69,538 561,761 560,256 Securitization notes receivable and certificates (1) — — 26,330 25,235 26,330 25,235 Other 1,016 1,016 — — 1,016 1,016 Total securities available for sale $ 1,178,625 $ 1,176,308 $ 236,908 $ 232,785 $ 1,415,533 $ 1,409,093 June 30, 2022 Within 1 year Greater than 1 year, less than or equal to 5 years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Certificates of deposit (2) $ 317,331 $ 316,416 $ — $ — $ 317,331 $ 316,416 Corporate bonds (2) 206,208 204,614 165,699 164,057 371,907 368,671 Commercial paper (2) 708,694 707,565 — — 708,694 707,565 Government bonds Non-US 11,895 11,813 6,301 6,142 18,196 17,955 US (2) 360,757 359,242 78,190 77,685 438,947 436,927 Securitization notes receivable and certificates (1) — — 52,180 51,678 52,180 51,678 Total securities available for sale $ 1,604,885 $ 1,599,650 $ 302,370 $ 299,562 $ 1,907,255 $ 1,899,212 (1) Based on weighted average life of expected cash flows as of March 31, 2023 and June 30, 2022 . (2) Certificates of deposit, corporate bonds, commercial paper, and US government bonds include $350.1 million and $303.8 million as of March 31, 2023 and June 30, 2022, respectively, classified as cash and cash equivalents within the interim condensed consolidated balance sheets. Gross proceeds from matured or redeemed securities were $709.5 million and $2,863.9 million for the three and nine months ended March 31, 2023 , respectively, and $949.3 million and $1,584.8 million for the three and nine months ended March 31, 2022, respectively . For available for sale securities realized gains and losses from portfolio sales were not material for the three and nine months ended March 31, 2023. There were no portfolio sales or associated realized gains or losses for the three and nine months ended March 31, 2022 . Non-marketable Equity Securities Equity investments without a readily determinable fair value held at cost were $43.2 million as of both March 31, 2023 and June 30, 2022 and are included in other assets within the interim condensed consolidated balance sheets. There have been no unrealized or realized gains and losses due to observable changes in orderly transactions and we did not record any impairment f or the three and nine months ended March 31, 2023 and 2022 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments (“derivatives”) to manage exposure to variable interest rates. Our primary objective in holding derivatives is to reduce the volatility in cash flows associated with our funding activities, arising from changes in interest rates. We do not employ derivatives for trading or speculative purposes. As of March 31, 2023 , we used a combination of interest rate cap agreements and interest rate swaps to manage interest costs and the risk associated with variable interest rates. FASB ASC 815-10 requires that an entity recognize all derivative instruments as either assets or liabilities in the statement of financial position. In accordance with that Subtopic, we designate certain derivative instruments as cash flow hedges, while others are not designated as hedges. Certain of our derivative agreements provide for netting arrangements for contracts that settle with the same counterparty, however, we do not offset assets and liabilities under these arrangements for financial statement presentation purposes. As such, the fair values are presented gross within other assets and accrued expenses and other liabilities. Offsetting collateral received by or paid to the counterparty is presented gross within accrued expenses and other liabilities or other assets, as applicable, on the interim condensed consolidated balance sheets. Cash Flow Hedges We have interest rate swaps designated as cash flow hedges in order to mitigate our exposure to changes in interest rates on our variable rate warehouse funding debt. The interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. These swaps that qualify as cash flow hedges are documented and designated as such when we enter into the contracts. In accordance with our risk management policies, we structure our hedges with terms similar to that of the item being hedged. We formally assess, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as cash flow hedges are highly effective in offsetting changes to the forecasted cash flows of the hedged items. The gain or loss on the derivatives is recorded in other comprehensive income (loss) (“OCI”) and reclassified into earnings when the hedged cash flows are recognized in funding costs within the interim consolidated statements of operations and comprehensive income. The amount that is reclassified into earnings is presented in the interim consolidated statements of income in funding costs, the same line item in which the hedged transaction is recognized. Derivatives Not Designated as Hedges We have interest rate caps and interest rate swaps that are not designated as hedging instruments. We enter into these contracts to manage interest rate risk. Any changes in the fair value of these financial instruments are reflected in other income, net, on the interim condensed consolidated statements of operations and comprehensive loss. Derivative Activity The following table summarizes the total fair value, including interest accruals, and outstanding notional amounts of derivative instruments as of March 31, 2023 and June 30, 2022 (in thousands): March 31, 2023 June 30, 2022 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as cash flow hedges Interest rate contracts - cash flow hedges $ 1,100,000 $ 27 $ (284) $ — $ — $ — Derivatives not designated as hedges Interest rate contracts 2,066,660 49,432 — 1,690,000 49,983 — Total gross derivative assets/liabilities $ 3,166,660 $ 49,459 $ (284) $ 1,690,000 $ 49,983 $ — The following table summarizes the impact of the cash flow hedges on Accumulated Other Comprehensive Income (“AOCI”) (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2023 Balance at beginning of period $ — $ — Changes in fair value (303) (303) Amounts reclassified into earnings (1) (46) (46) Balance at end of period ( 2) $ (257) $ (257) (1) The amounts reclassified into earnings is presented in the interim consolidated statements of income within funding costs. (2) Over the next 12 months, we expect to reclassify $0.3 million of net pre-tax losses from AOCI into funding costs within our interim consolidated statements of operations and comprehensive income. The following table summarizes the impact of the derivative instruments on income and indicates where within the interim consolidated statements of operations and comprehensive income such impact is reported (in thousands): Location of Gains (Losses) where the Effects of Derivatives are recorded Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 The effects of cash flow hedging Funding Costs (46) (46) The effects of derivatives not designated in hedging relationships Other Income, net (3,691) 35,145 33,819 38,416 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities ASC Topic 820, “Fair Value Measurement” (“ASC 820”) establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: • Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. • Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Financial Assets and Liabilities Recorded at Fair Value The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2023 and June 30, 2022 (in thousands): March 31, 2023 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 204,449 $ — $ — $ 204,449 Commercial paper — 156,887 — 156,887 Government bonds - U.S. — 193,175 — 193,175 Securities available for sale: Certificate of deposit — 145,528 — 145,528 Corporate bonds — 292,726 — 292,726 Commercial paper — 186,143 — 186,143 Agency bonds — 35,194 — 35,194 Government bonds: Non-U.S. — 6,108 — 6,108 U.S. — 367,081 — 367,081 Securitization notes receivable and residual trust certificates — — 25,235 25,235 Other — — 1,016 1,016 Servicing assets — — 771 771 Derivative instruments — 49,459 — 49,459 Total assets $ 204,449 $ 1,432,301 $ 27,022 $ 1,663,772 Liabilities: Servicing liabilities $ — $ — $ 3,674 $ 3,674 Performance fee liability — — 1,697 1,697 Residual trust certificates, held by third-parties — — 178 178 Contingent consideration — — 14,580 14,580 Profit share liability — — 2,190 2,190 Derivative instruments — 284 — 284 Total liabilities $ — $ 284 $ 22,319 $ 22,603 June 30, 2022 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 162,483 $ — $ — $ 162,483 Certificates of deposit — 16,026 — 16,026 Commercial paper — 229,272 — 229,272 Government bonds - U.S. — 58,541 — 58,541 Securities available for sale: Certificate of deposit — 300,390 — 300,390 Corporate bonds — 368,671 — 368,671 Commercial paper — 478,293 — 478,293 Government bonds: Non-U.S. — 17,955 — 17,955 U.S. — 378,386 — 378,386 Securitization notes receivable and residual trust certificates — — 51,678 51,678 Servicing assets — — 1,192 1,192 Derivative instruments — 49,983 — 49,983 Total assets $ 162,483 $ 1,897,517 $ 52,870 $ 2,112,870 Liabilities: Servicing liabilities $ — $ — $ 2,673 $ 2,673 Performance fee liability — — 1,710 1,710 Residual trust certificates, held by third-parties — — 377 377 Contingent consideration — — 23,348 23,348 Profit share liability — — 1,987 1,987 Total liabilities $ — $ — $ 30,095 $ 30,095 There were no transfers between levels during the periods ended March 31, 2023 and June 30, 2022. Assets and Liabilities Measured at Fair Value on a Recurring Basis (Level 2) Securities Available for Sale As of March 31, 2023, we held marketable securities classified as available for sale. Management obtains pricing from one or more third-party pricing services for the purpose of determining fair value. Whenever available, the fair value is based on quoted bid prices as of the end of the trading day. When quoted prices are not available, other methods may be utilized including evaluated prices provided by third-party pricing services. Derivative Instruments As of March 31, 2023 and June 30, 2022, our derivative instruments are classified as Level 2 within the fair value hierarchy, based on prices quoted for similar financial instruments in markets that are not active. Refer to Note 13. Derivative Financial Instruments in the notes to the interim condensed consolidated financial statements for further details on our derivative instruments. Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3) We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them each reporting period. Since our servicing assets and liabilities, performance fee liability, securitization notes and residual trust certificates, contingent consideration, and profit share liability do not trade in an active market with readily observable prices, we use significant unobservable inputs to measure fair value. This determination requires significant judgments to be made. Servicing Assets and Liabilities We sold loans with an unpaid balance of $1.7 billion and $5.8 billion for the three and nine months ended March 31, 2023, respectively, and $2.0 billion and $5.6 billion for the three and nine months ended March 31, 2022, respectively, for which we retained servicing rights. As of March 31, 2023 and June 30, 2022, we serviced loans which we sold with a remaining unpaid principal balance of $4.2 billion and $4.5 billion, respectively. We use discounted cash flow models to arrive at an estimate of fair value. Significant assumptions used in the valuation of our servicing rights are as follows: Adequate Compensation We estimate adequate compensation as the rate a willing market participant would require for servicing loans with similar characteristics as those in the serviced portfolio. Discount Rate Estimated future payments to be received under servicing agreements are discounted as a part of determining the fair value of the servicing rights. For servicing rights on loans, the discount rate reflects the time value of money and a risk premium intended to reflect the amount of compensation market participants would require. Net Default Rate We estimate the timing and probability of early loan payoffs, loan defaults and write-offs, thus affecting the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenue and expenses. We earned $21.4 million and $64.3 million of servicing income for the three and nine months ended March 31, 2023, respectively, and $23.5 million and $44.2 million for the three and nine months ended March 31, 2022, respectively. As of March 31, 2023 and June 30, 2022, the aggregate fair value of the servicing assets was measured at $0.8 million and $1.2 million, respectively, and presented within other assets on the interim condensed consolidated balance sheets. As of March 31, 2023 and June 30, 2022, the aggregate fair value of the servicing liabilities was measured at $3.7 million and $2.7 million, respectively, and presented within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. The following table summarizes the activity related to the aggregate fair value of our servicing assets (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 1,093 $ 2,178 $ 1,192 $ 2,349 Initial transfers of financial assets — 1,991 433 3,105 Subsequent changes in fair value (322) 451 (854) (834) Fair value at end of period $ 771 $ 4,620 $ 771 $ 4,620 The following table summarizes the activity related to the aggregate fair value of our servicing liabilities (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 3,680 $ 8,626 $ 2,673 $ 3,961 Initial transfers of financial assets 1,954 2,940 6,149 13,826 Subsequent changes in fair value (1,960) (5,960) (5,148) (12,181) Fair value at end of period $ 3,674 $ 5,606 $ 3,674 $ 5,606 The following tables presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of March 31, 2023 and June 30, 2022: March 31, 2023 Unobservable Input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.75 % 3.00 % 0.97 % Gross default rate (2) 1.90 % 10.64 % 3.73 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.75 % 3.00 % 2.23 % Gross default rate (2) 10.25 % 27.14 % 13.35 % June 30, 2022 Unobservable Input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.78 % 1.85 % 1.10 % Gross default rate (2) 0.59 % 50.59 % 1.59 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 2.13 % 2.34 % 2.21 % Gross default rate (2) 9.03 % 24.44 % 13.81 % (1) Estimated annual cost of servicing a loan as a percentage of unpaid principal balance (2) Annualized estimated gross charge-offs as a percentage of unpaid principal balance The following table summarizes the effect that adverse changes in estimates would have on the fair value of the servicing assets and liabilities given hypothetical changes in significant unobservable inputs (in thousands): March 31, 2023 June 30, 2022 Servicing assets Gross default rate assumption: Gross default rate increase of 25% $ — $ 11 Gross default rate increase of 50% $ (1) $ 22 Adequate compensation assumption: Adequate compensation increase of 10% $ (578) $ — Adequate compensation increase of 20% $ (1,156) $ — Adequate compensation increase of 25% $ — $ (3,513) Adequate compensation increase of 50% $ — $ (7,026) Discount rate assumption: Discount rate increase of 25% $ (26) $ (57) Discount rate increase of 50% $ (51) $ (109) Servicing liabilities Gross default rate assumption: Gross default rate increase of 25% $ (14) $ (10) Gross default rate increase of 50% $ (28) $ (21) Adequate compensation assumption: Adequate compensation increase of 10% $ 3,104 $ — Adequate compensation increase of 20% $ 6,207 $ — Adequate compensation increase of 25% $ — $ 6,139 Adequate compensation increase of 50% $ — $ 12,278 Discount rate assumption: Discount rate increase of 25% $ (77) $ (50) Discount rate increase of 50% $ (149) $ (98) Performance Fee Liability In accordance with our agreements with our originating bank partners, we pay a fee for each loan that is fully repaid by the consumer, due at the end of the period in which the loan is fully repaid. We recognize a liability upon the purchase of a loan for the expected future payment of the performance fee. This liability is measured using a discounted cash flow model and recorded at fair value and presented within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. Any changes in the fair value of the liability are reflected in other income, net The following table summarizes the activity related to the fair value of the performance fee liability (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 1,876 $ 1,530 $ 1,710 $ 1,290 Purchases of loans 337 432 1,388 1,265 Settlements Paid (997) (418) (1,498) (418) Subsequent changes in fair value 481 40 97 (553) Fair value at end of period $ 1,697 $ 1,584 $ 1,697 $ 1,584 Significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability are the discount rate, refund rate, and default rate. Significant increases or decreases in any of the inputs in isolation could result in a significantly lower or higher fair value measurement. The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability as of March 31, 2023 and June 30, 2022: March 31, 2023 Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Refund rate 1.50% 1.50% 1.50% Default rate 1.78% 3.34% 2.77% June 30, 2022 Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Refund rate 4.50% 4.50% 4.50% Default rate 1.78% 3.10% 2.42% Residual Trust Certificates Held by Third-Parties in Consolidated VIEs Residual trust certificates held by third-party investor(s) are measured at fair value, using a discounted cash flow model, and presented within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. Any changes in the fair value of the liability are reflected in other income, net The following table summarizes the activity related to the fair value of the residual trust certificates held by third-parties (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 242 $ 619 $ 377 $ 914 Repayments (71) (146) (248) (549) Subsequent changes in fair value 7 16 49 124 Fair value at end of period $ 178 $ 489 $ 178 $ 489 Significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates held by third-parties are the discount rate, loss rate, and prepayment rate. Significant increases or decreases in any of the inputs in isolation could result in a significantly lower or higher fair value measurement. The following table present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates held by third-parties as of March 31, 2023 and June 30, 2022: March 31, 2023 Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 15.00% 10.00% Loss rate 0.75% 1.13% 0.75% Prepayment rate 4.00% 8.00% 8.00% June 30, 2022 Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Loss rate 0.75% 0.75% 0.75% Prepayment rate 8.00% 8.00% 8.00% Retained Beneficial Interests in Unconsolidated VIEs As of March 31, 2023, the Company held notes receivable and residual trust certificates with an aggregate fair value of $25.2 million in connection with unconsolidated securitizations. The balances correspond to the 5% economic risk retention the Company is required to maintain as the securitization sponsor. These assets are measured at fair value using a discounted cash flow model, and presented within securities available for sale at fair value on the interim condensed consolidated balance sheets. Changes in the fair value, other than declines in fair value due to credit recognized as an allowance, are reflected in other comprehensive income (loss) on the interim condensed consolidated statements of operations and comprehensive loss. Declines in fair value due to credit are reflected in other income, net on the interim condensed consolidated statements of operations and comprehensive loss. The following table summarizes the activity related to the fair value of the notes and residual trust certificates (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 32,766 $ 25,319 $ 51,678 $ 16,170 Additions — 22,067 — 35,762 Cash received (due to payments or sales) (8,012) (4,414) (26,847) (8,798) Change in unrealized gain (loss) 374 (402) (136) (586) Accrued interest 249 215 997 285 Reversal of (impairment on) securities available for sale (143) (78) (458) (126) Fair value at end of period $ 25,235 $ 42,707 $ 25,235 $ 42,707 Significant unobservable inputs used for our Level 3 fair value measurement of the notes and residual trust certificates are the discount rate, loss rate, and prepayment rate. Significant increases or decreases in any of the inputs in isolation could result in a significantly lower or higher fair value measurement. The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates as of March 31, 2023 and June 30, 2022 : March 31, 2023 Unobservable Input Minimum Maximum Weighted Average Discount rate 4.45% 29.84% 6.96% Loss rate 1.16% 17.39% 3.58% Prepayment rate 7.00% 30.30% 19.72% June 30, 2022 Unobservable Input Minimum Maximum Weighted Average Discount rate 3.68% 22.50% 5.37% Loss rate 0.61% 10.95% 2.65% Prepayment rate 5.25% 35.00% 18.48% The following table summarizes the effect that adverse changes in estimates would have on the fair value of the securitization residual trust certificates given hypothetical changes in significant unobservable inputs (in thousands): March 31, 2023 June 30, 2022 Discount rate assumption: Discount rate increase of 25% $ (288) $ (1,410) Discount rate increase of 50% $ (566) $ (2,295) Loss rate assumption: Loss rate increase of 25% $ (243) $ (729) Loss rate increase of 50% $ (368) $ (964) Prepayment rate assumption: Prepayment rate decrease of 25% $ (45) $ (545) Prepayment rate decrease of 50% $ (91) $ (519) Contingent Consideration Our acquisition of PayBright, Inc. (“PayBright”) on January 1, 2021 included consideration transferred and 2,587,362 shares of our common stock held in escrow, c ontingent upon the achievement of future milestones. At the acquisition date, we classified the contingent consideration as a liability and estimated its fair value using a Monte Carlo simulation utilizing assumptions of simulated revenue, equity volatility, and a discount rate. The liability is remeasured to its fair value at each reporting date, utilizing a Monte Carlo simulation for periods in which actual revenues are unknown, until the contingency is resolv ed. During the year ended June 30, 2022, one of these milestones was achieved and 1,293,681 shares of our Class A common stock were released from escrow, resulting in a reduction to the contingent liability. During the nine months ended March 31, 2023, an additional milestone was achieved and the fair value was estimated based on the shares expected to be released from escrow multiplied by the estimated share price. The fair value estimate represents a Level 3 measurement, as the revenue milestone represents a significant unobservable input. The change in fair value of the contingent consideration at each reporting date is recognized as a component of other income, net in the interim condensed consolidated statements of operations and comprehensive loss for the respective period. The following table summarizes the activity related to the fair value of the PayBright contingent consideration (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 12,510 $ 253,750 $ 23,348 $ 153,447 Subsequent changes in fair value 2,109 (136,248) (7,193) (28,682) Effect of foreign currency translation (39) 1,506 (1,575) (5,757) Fair value at end of period $ 14,580 $ 119,008 $ 14,580 $ 119,008 Profit Share Liability On January 1, 2021, we entered into a commercial agreement with an enterprise partner, in which we are obligated to share in the profitability of transactions facilitated by our platform. Upon capture of a loan under this program, we record a liability associated with the estimated future profit to be shared over the life of the loan based on estimated program profitability levels. This liability is measured using a discounted cash flow model and recorded at fair value and presented within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. The following table summarizes the activity related to the fair value of the profit share liability (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 3,697 $ 2,053 $ 1,987 $ 2,465 Facilitation of loans 1,045 1,098 4,520 4,672 Actual performance (3,890) (2,918) (6,154) (3,929) Subsequent changes in fair value 1,338 1,645 1,837 (1,330) Fair value at end of period $ 2,190 $ 1,878 $ 2,190 $ 1,878 Significant unobservable inputs used for our Level 3 fair value measurement of the profit share liability are the discount rate and estimated program profitability. Significant increases or decreases in any of the inputs in isolation could result in a significantly lower or higher fair value measurement. The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the profit sharing liability as of March 31, 2023 and June 30, 2022 : March 31, 2023 Unobservable Input Minimum Maximum Weighted Average Discount rate 30.00% 30.00% 30.00% Program profitability 0.07% 1.81% 1.30% June 30, 2022 Unobservable Input Minimum Maximum Weighted Average Discount rate 30.00% 30.00% 30.00% Program profitability 1.25% 3.54% 1.28% Financial Assets and Liabilities Not Recorded at Fair Value The following tables present the fair value hierarchy for financial assets and liabilities not recorded at fair value as of March 31, 2023 and June 30, 2022 (in thousands): March 31, 2023 Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 122 $ — $ 122 $ — $ 122 Loans held for investment, net 3,599,206 — — 3,816,941 3,816,941 Other assets 9,637 — 9,637 — 9,637 Total assets $ 3,608,965 $ — $ 9,759 $ 3,816,941 $ 3,826,700 Liabilities: Convertible senior notes, net (1) $ 1,413,345 $ — $ 923,270 $ — $ 923,270 Notes issued by securitization trusts 1,788,853 — — 1,743,862 1,743,862 Funding debt (2) 1,527,919 — — 1,527,869 1,527,869 Total liabilities $ 4,730,117 $ — $ 923,270 $ 3,271,731 $ 4,195,001 June 30, 2022 Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 2,670 $ — $ 2,670 $ — $ 2,670 Loans held for investment, net 2,348,169 — — 2,412,871 2,412,871 Other assets 12,661 — 12,661 — 12,661 Total assets $ 2,363,500 $ — $ 15,331 $ 2,412,871 $ 2,428,202 Liabilities: Convertible senior notes, net (1) $ 1,706,668 $ — $ 984,285 $ — $ 984,285 Notes issued by securitization trusts 1,627,580 — — 1,529,401 1,529,401 Funding debt (2) 683,395 — — 683,388 683,388 Total liabilities $ 4,017,643 $ — $ 984,285 $ 2,212,789 $ 3,197,074 (1) The estimated fair value of the convertible senior notes is determined based on a market approach, using the estimated or actual bids and offers of the notes in an over-the-counter market on the last business day of the period. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock The Company had shares of common stock reserved for issuance as follows: March 31, 2023 June 30, 2022 Available outstanding under stock option plan 54,341,564 53,158,233 Available for future grant under stock option plan 37,230,979 31,156,746 Total 91,572,543 84,314,979 The common stock is not redeemable. We have two classes of common stock: Class A common stock and Class B common stock. Each holder of Class A common stock has the right to one vote per share of common stock. Each holder of Class B common stock has the right to 15 votes and can be converted at any time into one share of Class A common stock. Holders of Class A and Class B common stock are entitled to notice of any stockholders’ meeting in accordance with the bylaws of the corporation, and are entitled to vote upon such matters and in such manner as may be provided by law. Subject to the prior rights of holders of all classes of stock at the time outstanding having prior rights as to dividends, the holders of the common stock are entitled to receive, when and as declared by the Board of Directors, out of any assets of the corporation legally available therefore, such dividends as may be declared from time to time by the Board of Directors. Common Stock Warrants Common stock warrants are included as a component of additional paid in capital within the interim condensed consolidated balance sheets. In November 2021, we granted warrants to purchase 22,000,000 shares of common stock in connection with our commercial agreements with Amazon. 7,000,000 of the warrant shares have an exercise price of $0.01 per share and a term of 3.5 years, while the remaining 15,000,000 warrant shares have an exercise price of $100 per share and a term of 7.5 years. We valued the warrants at the grant date using the Black-Scholes-Merton option pricing model with the following assumptions: a dividend yield of zero; years to maturity of 3.5 and 7.5 years, respectively; volatility of 45%; and a risk-free rate of 0.93% and 1.47%, respectively. We recognized an asset of $133.5 million associated with the portion of the warrants that were fully vested at the grant date. Refer to Note 6. Balance Sheet Components for more information on the asset and related amortization during the period. The remaining grant-date fair value of the warrants will be recognized within our interim condensed consolidated statements of operations and comprehensive loss as a component of sales and marketing expense as the warrants vest, based upon Amazon’s satisfaction of the vesting conditions. During the three and nine months ended March 31, 2023, a total of $104.1 million and $361.8 million, respectively, was recognized within sales and marketing expense which included $10.2 million and $31.1 million, respectively, in amortization expense of the commercial agreement asset and $93.9 million and $330.7 million, respectively, in expense based upon the grant-date fair value of the warrant shares that vested. During the three and nine months ended March 31, 2022, a total of $102.4 million and $173.0 million, respectively, was recognized within sales and marketing expense which included $10.2 million and $16.0 million, respectively, in amortization expense of the commercial agreement asset and $92.2 million and $157.0 million, respectively, in expense based upon the grant-date fair value of the warrant shares that vested. |
Equity Incentive Plans
Equity Incentive Plans | 9 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans 2012 Stock Plan Under our Amended and Restated 2012 Stock Plan (the “Plan”), we may grant incentive and nonqualified stock options, restricted stock, and restricted stock units (“RSUs”) to employees, officers, directors, and consultants. As of March 31, 2023, the maximum number of shares of common stock which may be issued under the Plan is 146,209,197 Class A shares. As of March 31, 2023 and June 30, 2022, there were 37,230,979 and 31,156,746 shares of Class A common stock, respectively, available for future grants under the Plan. Stock Options For stock options granted before our IPO in January 2021, the minimum expiration period is seven years after termination of employment or 10 years from the date of grant. For stock options granted after our IPO, the minimum expiration period is three months after termination of employment or 10 years from the date of grant. Stock options generally vest over a period of four years or with 25% vesting on the 12 month anniversary of the vesting commencement date, and the remainder vesting on a pro-rata basis each month over the next three years. The following table summarizes our stock option activity for the nine months ended March 31, 2023: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Balance as of June 30, 2022 19,310,706 $ 15.22 6.94 Granted 1,991,427 19.10 Exercised (726,425) 4.39 Forfeited, expired or cancelled (993,984) 37.14 Balance as of March 31, 2023 19,581,724 14.92 6.27 Vested and exercisable, March 31, 2023 14,385,171 $ 10.14 5.61 $ 62,657 Vested and exercisable, and expected to vest thereafter (1) March 31, 2023 19,341,889 $ 14.66 6.25 $ 64,261 (1) Options expected to vest reflect the application of an estimated forfeiture rate. The weighted-average grant date fair value of options granted during the nine months ended March 31, 2023 was $10.92. As of March 31, 2023, unrecognized compensation expense related to unvested stock options was approximately $50.2 million, which is expected to be recognized over a remaining weighted-average period of 2.3 years. When an employee exercises stock options, we collect and remit taxes on the employee’s behalf to applicable taxing authorities. As of March 31, 2023 and June 30, 2022, the balance of equity exercise taxes payable was $3.2 million and $10.9 million, respectively, which is included in accounts payable on the interim condensed consolidated balance sheets. Value Creation Award In November 2020, in connection with an overall review of the compensation of Max Levchin, our Chief Executive Officer, in advance of the IPO, and taking into account Mr. Levchin’s leadership since the inception of the Company, the comparatively modest level of cash compensation he had received from the Company during his many years of service, and that he did not hold any unvested equity awards, the Company ’ s Board of Directors approved a long-term, multi-year performance-based stock option grant providing Mr. Levchin with the opportunity to earn the right to purchase up to 12,500,000 shares of the Company ’ s Class A common stock (the “Value Creation Award”). We recognize stock-based compensation on these awards based on the grant date fair value using an accelerated attribution method over the requisite service period, and only if performance-based conditions are considered probable of being satisfied. During the three and nine months ended March 31, 2023, we incurred stock-based compensation expense of $20.3 million and $75.2 million, respectively, associated with the Value Creation Award as a component of general and administrative expense within the interim condensed consolidated statements of operations and comprehensive loss. For the three and nine months ended March 31, 2022, we incurred stock-based compensation expense of $29.0 million and $113.5 million, respectively. As of March 31, 2023, unrecognized compensation expense related to the Value Creation Award was approximately $132.2 million, which is expected to be recognized over a remaining weighted-average period of 2.8 years. Restricted Stock Units RSUs granted prior to the IPO were subject to two vesting conditions: a service-based vesting condition (i.e., employment over a period of time) and a performance-based vesting condition (i.e., a liquidity event in the form of either a change of control or an initial public offering, each as defined in the Plan), both of which must be met in order to vest. The performance-based condition was met upon the IPO. We record stock-based compensation expense for those RSUs on an accelerated attribution method over the requisite service period, which is generally four years. RSUs granted after IPO are subject to a service-based vesting condition. We record stock-based compensation expense for service-based RSUs on a straight-line basis over the requisite service period, which is generally one The following table summarizes our RSU activity during the nine months ended March 31, 2023: Number of Shares Weighted Average Grant Date Fair Value Non-vested as of June 30, 2022 21,387,592 $ 38.41 Granted 15,977,301 23.18 Vested (10,118,647) 34.01 Forfeited, expired or cancelled (4,911,072) 37.43 Non-vested as of March 31, 2023 22,335,174 $ 29.72 As of March 31, 2023, unrecognized compensation expense related to unvested RSUs was approximately $574.3 million, which is expected to be recognized over a remaining weighted-average period of 1.8 years. 2020 Employee Stock Purchase Plan On November 18, 2020, our Board of Directors adopted and approved the 2020 Employee Stock Purchase Plan (“ESPP”). The purpose of the ESPP is to secure the services of new employees, to retain the services of existing employees and to provide incentives for such individuals to exert maximum effort towards the success of the Company and that of its affiliates. A total of 11.3 million shares of Class A common stock are reserved and available for issuance under the ESPP and 649,580 shares have been issued as of March 31, 2023. The ESPP provides for six-month offering periods beginning December 1 and June 1 of each year, with the initial six-month offering period beginning December 1, 2021. At the end of each offering period, shares of our Class A common stock are purchased on behalf of each ESPP participant at a price per share equal to 85% of the lesser of (1) the fair market value of the Class A common stock on first day of the offering period (the grant date) or (2) the fair market value of the Class A common stock on the last day of the offering period (the purchase date). We use the Black-Scholes-Merton option pricing model to measure the fair value of the purchase rights issued under the ESPP at the first day of the offering period, which represents the grant date. We record stock-based compensation expense on a straight-line basis over each six-month offering period, the requisite service period of the award. Stock-Based Compensation Expense The following table presents the components and classification of stock-based compensation (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 General and administrative $ 54,789 $ 58,100 $ 188,788 $ 187,789 Technology and data analytics 45,040 33,639 137,002 75,133 Sales and marketing 5,840 5,998 19,517 15,655 Processing and servicing 1,120 650 3,065 1,536 Total stock-based compensation in operating expenses 106,789 98,387 348,372 280,113 Capitalized into property, equipment and software, net 19,113 14,618 62,760 39,691 Total stock-based compensation expense $ 125,902 $ 113,005 $ 411,132 $ 319,804 In connection with the acquisition of Returnly on May 1, 2021, we issued 304,364 shares of our Class A common stock, which are held in escrow. Because the future payment of the escrowed shares is contingent on continued employment of certain employees, the arrangement represents stock-based compensation in the post combination period. The grant-date fair value was estimated based on the value of the shares at the date of closing. The escrowed shares have a requisite service period of two years and contain a performance-based vesting condition (i.e., the achievement of certain revenue targets). We record stock-based compensation expense on a straight-line basis for each tranche over the requisite service period, as long as the performance-based conditions are considered probable of being satisfied. During the nine months ended March 31, 2023, the arrangement was modified, resulting in the release of 45,459 shares from escrow and the remittance of 243,384 shares back to the Company. The modification resulted in the recognition of $2.0 million of incremental compensation cost within general and administrative expenses in our interim condensed statement of operations. As of March 31, 2023, 15,521 shares remain in escrow. |
Restructuring charges, net
Restructuring charges, net | 9 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring charges, net | Restructuring charges, net On February 8, 2023, we committed to a restructuring plan (the “Plan”) designed to manage our operating expenses in response to current macroeconomic conditions and ongoing business prioritization efforts. As part of the plan, we reduced our workforce by approximately 500 employees, representing approximately 19% of our employees and incurred lease exit costs related to vacating a portion of our San Francisco office. Restructuring charges, net consists of employee severance pay and related costs and accelerations of amortization expense for the lease asset associated with the exit of certain of our office space. For the three and nine months ended March 31, 2023, restructuring charges, net was comprised of the following (in thousands): March 31, 2023 Employee severance pay and related costs $ 28,753 Non-cash accelerations of depreciation and amortization expense (1) 6,181 Restructuring charges, net $ 34,934 (1) At March 31, 2023, we had a remaining right-of-use asset of $5.2 million related to the office closure that we expect to be fully amortized in the fourth quarter of fiscal 2023 upon fully vacating this space. For further information, refer to Note 7. Leases . The Company’s restructuring accrual activity for the nine months ended March 31, 2023 is summarized as follows (in thousands): Accrued restructuring costs, June 30, 2022 $ — Additions 26,297 Cash paid (25,642) Adjustment 2,548 Foreign currency translation and other adjustments (5) Accrued restructuring costs, March 31, 2023 $ 3,198 |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The quarterly provision for income taxes is based on the current estimate of the annual effective income tax rate and the tax effect of discrete items occurring during the quarter. The Company’s quarterly provision and the estimate of the annual effective tax rate are subject to significant variation due to several factors, including variability in the pre-tax jurisdictional mix of earnings and the impact of discrete items. For the three and nine months ended March 31, 2023, we recorded income tax expense (benefit) of $(0.8) million and $(2.6) million, respectively, which was primarily attributable to the effects of foreign income taxes on our Canadian subsidiary and partially offset by various U.S state and other foreign income taxes, as well as the tax amortization of certain intangibles. For the three and nine months ended March 31, 2022, we recorded income tax expense (benefit) of $0.3 million and $0.7 million, respectively, which was primarily attributable to various U.S. state and foreign income taxes and the tax amortization of certain intangibles. As of March 31, 2023, we continue to recognize a full valuation allowance against our U.S. federal and state net deferred tax assets. This determination was based on the assessment of the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to utilize the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred by the Company for the prior three fiscal years. The presence of a three-year cumulative loss limits the ability to consider other subjective evidence, such as our expectations of future taxable income and projections for growth. As a result of the integration and consolidation of our PayBright business into and with Affirm’s Canadian business and the expansion of our overall business in Canada, as well as other objectively verifiable positive evidence, all of which we have concluded is sufficient to outweigh the existing negative evidence – including the presence of a three-year cumulative loss attributable to the related foreign jurisdiction, we have determined that it is more likely than not that our Canadian deferred tax assets will be realized and a valuation allowance is not required. On August 16, 2022, the Inflation Reduction Act was enacted into U.S. federal law. The Company does not currently expect that the Inflation Reduction Act will have a material impact on its income taxes. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 9 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders The following table presents basic and diluted net loss per share attributable to common stockholders for Class A and Class B common stock (in thousands, except share and per share data): Three Months Ended March 31, Nine Months Ended March 31, 2023 2023 Class A Class B Class A Class B Numerator: Net loss $ (164,093) $ (41,584) $ (620,015) $ (159,368) Net loss attributable to common stockholders - basic and diluted $ (164,093) $ (41,584) $ (620,015) $ (159,368) Denominator: Weighted average shares of common stock - basic 237,116,053 60,088,662 233,815,676 60,099,592 Weighted average shares of common stock - diluted 237,116,053 60,088,662 233,815,676 60,099,592 Net loss per share: Basic $ (0.69) $ (0.69) $ (2.65) $ (2.65) Diluted $ (0.69) $ (0.69) $ (2.65) $ (2.65) Three Months Ended March 31, Nine Months Ended March 31, 2022 2022 Class A Class B Class A Class B Numerator: Net loss $ (43,061) $ (11,610) $ (389,424) $ (131,597) Net loss attributable to common stockholders - basic and diluted $ (43,061) $ (11,610) $ (389,424) $ (131,597) Denominator: Weighted average shares of common stock - basic 224,980,598 60,661,222 208,957,734 70,612,281 Weighted average shares of common stock - diluted 224,980,598 60,661,222 208,957,734 70,612,281 Net loss per share: Basic $ (0.19) $ (0.19) $ (1.86) $ (1.86) Diluted $ (0.19) $ (0.19) $ (1.86) $ (1.86) The following common stock equivalents, presented based on amounts outstanding, were excluded from the calculation of diluted net loss per share attributable to common stockholders because their inclusion would have been anti-dilutive: As of March 31, 2023 2022 Restricted stock units 22,335,174 16,351,621 Stock options, including early exercise of options 19,581,724 17,195,165 Common stock warrants 6,036,813 5,909,896 Employee stock purchase plan shares 640,075 161,300 Total 48,593,786 39,617,982 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended June 30, 2022. The balance sheet as of June 30, 2022 has been derived from the audited financial statements at that date. Management believes these interim condensed consolidated financial statements reflect all adjustments, including those of a normal and recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. |
Principles of Consolidation | Our interim condensed financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all wholly owned subsidiaries and variable interest entities (“VIEs”), in which we have a controlling financial interest. These include various business trust entities and limited partnerships established to enter into warehouse credit agreements with certain lenders for funding debt facilities and certain asset-backed securitization transactions. All intercompany accounts and transactions have been eliminated in consolidation. Our variable interest arises from contractual, ownership, or other monetary interests in the entity, which changes with fluctuations in the fair value of the entity’s net assets. We consolidate a VIE when we are deemed to be the primary beneficiary. We assess whether or not we are the primary beneficiary of a VIE on an ongoing basis. |
Use of Estimates | The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments and assumptions that affect the reported amounts in the interim condensed consolidated financial statements and the accompanying notes. Material estimates that are particularly susceptible to significant change relate to determination of variable consideration for revenue, the allowance for credit losses, capitalized internal-use software development costs, valuation allowance for deferred tax assets, loss on loan purchase commitment, the fair value of servicing assets and liabilities, discount on directly originated loans, the fair value of assets acquired and any contingent consideration transferred in business combinations, the evaluation for impairment of intangible assets and goodwill, the fair value of available for sale debt securities including retained interests in our securitization trusts, the fair value of residual certificates issued by our securitization trusts held by third parties, and stock-based compensation, including the fair value of warrants issued to nonemployees. We base our estimates on market-based inputs, historical experience, current events, and other factors we believe to be reasonable under the circumstances. These estimates are subjective in nature and to the extent that there are differences between these estimates and actual results, our financial condition or operating results in future periods may be affected.These estimates are based on information available as of the date of the interim condensed consolidated financial statements; therefore, actual results could differ materially from those estimates. |
Recently Adopted Accounting Standards and Recent Accounting Pronouncements Not Yet Adopted | Financial Instruments - Credit Losses In March 2022, the FASB issued ASU 2022-02, “Financial Instruments— Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosure” which addresses areas identified by the FASB as part of its post-implementation review of the current expected credit losses model or “CECL” previously issued in ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326)”. The amendments in this ASU eliminate the accounting guidance for troubled debt restructurings by creditors while enhancing the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases in the vintage disclosures. For entities that have adopted ASU 2016-13, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted if an entity has adopted ASU 2016-13. Amendments in this ASU should be applied prospectively except for the transition method related to the accounting for troubled debt restructurings in which an entity has the option to apply a modified retrospective transition method resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. We early adopted the new standard effective July 1, 2022 on a prospective basis. The adoption of the guidance did not have a material impact on our interim condensed financial statements. Business Combinations In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires contract assets and contract liabilities, such as deferred revenue, acquired in a business combination to be recognized and measured in accordance with Topic 606 (Revenue from Contracts with Customers). ASU 2021-08 is expected to reduce diversity in practice and increase comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The ASU is effective for fiscal years beginning after December 15, 2022 and should be applied prospectively to acquisitions occurring on or after the effective date. Early adoption is permitted, including for interim periods, and is applicable to all business combinations for which the acquisition date occurs within the beginning of the fiscal year of adoption. We early adopted the new standard effective January 1, 2023 on a prospective basis. The adoption of the guidance did not have a material impact on our interim condensed financial statements. Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Banking and Thrift, Interest [Abstract] | |
Disaggregation of Revenue | The following table presents the company’s revenue disaggregated by revenue source (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Merchant network revenue $ 119,013 $ 121,054 $ 366,181 $ 340,385 Virtual card network revenue 29,469 23,169 85,294 69,122 Interest income 178,270 134,599 470,393 390,256 Gain on sales of loans 32,813 52,484 156,015 141,153 Servicing income 21,413 23,456 64,277 44,242 Total Revenue, net $ 380,978 $ 354,762 $ 1,142,160 $ 985,158 |
Schedule of Interest Income | Interest income consisted of the following components (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Interest income on unpaid principal balance $ 147,759 $ 95,253 $ 379,755 $ 266,868 Amortization of discount on loans 39,130 45,443 116,937 138,853 Amortization of premiums on loans (4,515) (3,407) (13,469) (9,139) Interest receivable charged-off, net of recoveries (4,104) (2,690) (12,830) (6,326) Total interest income $ 178,270 $ 134,599 $ 470,393 $ 390,256 |
Loans Held for Investment and_2
Loans Held for Investment and Allowance for Credit Losses (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Held for Investment and Allowance for Credit Loss | Loans held for investment consisted of the following (in thousands): March 31, 2023 June 30, 2022 Unpaid principal balance $ 3,823,038 $ 2,516,733 Accrued interest receivable 33,997 20,697 Premiums on loans held for investment 7,896 8,911 Less: Discount due to loss on loan purchase commitment (45,368) (20,692) Less: Discount due to loss on directly originated loans (43,486) (20,443) Less: Fair value adjustment on loans acquired through business combination (535) (1,645) Total loans held for investment $ 3,775,542 $ 2,503,561 |
Schedule of Credit Quality by ITACs Score | The following table presents an analysis of the credit quality, by ITACS score, of the amortized cost basis excluding accrued interest receivable, by fiscal year of origination on loans held for investment and loans held for sale (in thousands) as of March 31, 2023: March 31, 2023 Amortized Costs Basis by Fiscal Year of Origination 2023 2022 2021 2020 2019 Prior Total 96+ $ 2,185,767 $ 94,353 $ 33,450 $ 9,085 $ 9 $ 1 $ 2,322,665 94-96 865,503 38,625 933 189 6 2 905,258 90-94 95,252 12,391 136 2 4 — 107,785 <90 16,786 2,795 6 2 — — 19,589 No score (1) 288,923 78,840 16,835 1,518 288 15 386,419 Total amortized cost basis $ 3,452,231 $ 227,004 $ 51,360 $ 10,796 $ 307 $ 18 $ 3,741,716 (1) This balance represents loan receivables in new markets without sufficient data currently available for use by the Affirm scoring methodology including loan receivables originated in Canada. The following table presents net charge-offs by fiscal year of origination for the nine months ended (in thousands) as of March 31, 2023: Net Charge-offs by Fiscal Year of Origination 2023 2022 2021 2020 2019 Prior Total Current period charge-offs (59,228) (161,934) (6,115) (509) (74) (26) (227,886) Current period recoveries 2,956 13,447 4,000 1,158 753 554 22,868 Current period net charge-offs $ (56,272) $ (148,487) $ (2,115) $ 649 $ 679 $ 528 $ (205,018) The following table presents an analysis of the credit quality, by ITACS score, of the amortized cost basis excluding accrued interest receivable, by fiscal year of origination on loans held for investment and loans held for sale (in thousands) as of June 30, 2022: June 30, 2022 Amortized Costs Basis by Fiscal Year of Origination 2022 2021 2020 2019 2018 Prior Total 96+ $ 1,218,104 $ 122,503 $ 33,458 $ 157 $ 1 $ — $ 1,374,223 94-96 620,403 11,240 773 13 2 — 632,431 90-94 220,056 3,886 6 4 — — 223,952 <90 44,300 135 2 — — — 44,437 No score (1) 186,044 20,554 3,368 444 79 2 210,491 Total amortized cost basis $ 2,288,907 $ 158,318 $ 37,607 $ 618 $ 82 $ 2 $ 2,485,534 |
Schedule of Delinquent Financing Receivables | The following table presents an aging analysis of the amortized cost basis excluding accrued interest receivable of loans held for investment and loans held for sale by delinquency status (in thousands): March 31, 2023 June 30, 2022 Non-delinquent loans $ 3,587,516 $ 2,322,919 4 – 29 calendar days past due 68,344 77,963 30 – 59 calendar days past due 32,591 34,669 60 – 89 calendar days past due 27,888 26,919 90 – 119 calendar days past due (1) 25,377 23,064 Total amortized cost basis $ 3,741,716 $ 2,485,534 |
Schedule of Loans Held for Investment and Allowance for Credit Loss | The following table details activity in the allowance for credit losses, including charge-offs, recoveries and provision for loan losses (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Balance at beginning of period $ 182,100 $ 158,289 $ 155,392 $ 117,760 Provision for credit losses 61,480 62,021 225,962 172,720 Charge-offs (75,820) (67,280) (227,886) (145,307) Recoveries of charged-off receivables 8,576 6,445 22,868 14,302 Balance at end of period $ 176,336 $ 159,475 $ 176,336 $ 159,475 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Acquisition Consideration Transferred | The acquisition date fair value of the consideration transferred for Butter was approximately $16.3 million, which consisted of the following (in thousands): Cash $ 14,863 Settlement of subordinated secured notes 1,475 Total acquisition date fair value of the consideration transferred $ 16,337 The acquisition date fair value of the consideration transferred was approximately $40.0 million, which consisted of the following (in thousands): Cash $ 30,000 Fair value of Class A common stock transferred 10,000 Total acquisition date fair value of the consideration transferred $ 40,000 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the consideration paid of approximately $16.3 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Cash and cash equivalents $ 287 Loans held for investment, net 172 Accounts Receivable, net 11 Intangible assets 9,243 Other assets 672 Total assets acquired 10,385 Accounts payable 568 Accrued expenses and other liabilities 2,923 Total liabilities assumed 3,491 Net assets acquired 6,894 Goodwill 9,443 Total purchase price $ 16,337 The following table summarizes the allocation of the consideration paid of approximately $40.0 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Intangible assets $ 9,488 Total net assets acquired 9,488 Goodwill 30,512 Total purchase price $ 40,000 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Fair Value Useful Life Lending license $ 9,243 Indefinite The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Fair Value Useful Life Developed technology $ 9,488 3.0 |
Schedule of Identifiable Intangible Assets Acquired | The following table sets forth the identifiable intangible assets acquired and the cost allocated to each asset as of the date of acquisition (in thousands): Assembled workforce $ 12,490 Developed technology 1 $ 12,925 Total $ 25,415 (1) On March 10, 2023, we completed the purchase of the developed technology intangible asset. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property, Equipment and Software, Net | Property, equipment and software, net consisted of the following (in thousands): March 31, 2023 June 30, 2022 Internally developed software $ 344,497 $ 200,621 Leasehold improvements 20,128 16,169 Computer equipment 10,797 10,751 Furniture and equipment 6,435 4,279 Total Property, equipment and software, at cost $ 381,857 $ 231,820 Less: Accumulated depreciation and amortization (104,701) (60,338) Total Property, equipment and software, net $ 277,156 $ 171,482 |
Schedule of Goodwill | The changes in the carrying amount of goodwill during the nine months ended March 31, 2023 were as follows (in thousands): Balance as of June 30, 2022 $ 539,534 Additions (1) 9,443 Effect of foreign currency translation (11,851) Balance as of March 31, 2023 $ 537,126 |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following (in thousands): March 31, 2023 Gross Accumulated Amortization Net Weighted Average Remaining Useful Life Merchant relationships $ 37,933 $ (19,887) $ 18,046 2.9 Developed technology 39,500 (26,159) 13,340 1.2 Assembled workforce 12,490 (7,909) 4,581 0.6 Trademarks and domains, definite 1,460 (932) 528 1.9 Trademarks, licenses and domains, indefinite 11,422 — 11,422 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 103,155 $ (54,887) $ 48,267 June 30, 2022 Gross Accumulated Amortization Net Weighted Average Merchant relationships $ 38,371 $ (10,281) $ 28,090 3.6 Developed technology 39,782 (15,882) 23,900 1.9 Assembled workforce 12,490 (1,664) 10,826 1.3 Trademarks and domains, definite 1,507 (802) 705 2.4 Trademarks and domains, indefinite 2,146 — 2,146 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 94,646 $ (28,629) $ 66,017 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consisted of the following (in thousands): March 31, 2023 Gross Accumulated Amortization Net Weighted Average Remaining Useful Life Merchant relationships $ 37,933 $ (19,887) $ 18,046 2.9 Developed technology 39,500 (26,159) 13,340 1.2 Assembled workforce 12,490 (7,909) 4,581 0.6 Trademarks and domains, definite 1,460 (932) 528 1.9 Trademarks, licenses and domains, indefinite 11,422 — 11,422 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 103,155 $ (54,887) $ 48,267 June 30, 2022 Gross Accumulated Amortization Net Weighted Average Merchant relationships $ 38,371 $ (10,281) $ 28,090 3.6 Developed technology 39,782 (15,882) 23,900 1.9 Assembled workforce 12,490 (1,664) 10,826 1.3 Trademarks and domains, definite 1,507 (802) 705 2.4 Trademarks and domains, indefinite 2,146 — 2,146 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 94,646 $ (28,629) $ 66,017 |
Schedule of Intangible Assets, Future Amortization Expense | The expected future amortization expense of these intangible assets as of March 31, 2023 is as follows (in thousands): 2023 (remaining three months) $ 25,910 2024 10,260 2025 251 2026 59 2027 and thereafter 15 Total amortization expense $ 36,495 |
Schedule of Other Assets | Other assets consisted of the following (in thousands): March 31, 2023 June 30, 2022 Processing reserves $ 53,728 $ 26,483 Derivative instruments 49,459 49,983 Equity securities, at cost 43,172 43,172 Operating lease right-of-use assets 34,054 50,671 Prepaid expenses 29,878 37,497 Other assets 60,348 73,761 Total other assets $ 270,639 $ 281,567 |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands) March 31, 2023 June 30, 2022 Operating lease liability $ 55,977 $ 65,713 Collateral held for derivative instruments 52,219 55,779 Accrued expenses 39,967 67,343 Other liabilities 44,197 48,763 Total accrued expenses and other liabilities $ 192,360 $ 237,598 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Term and Discount Rate | Operating lease expense is as follows (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Operating lease expense (1) $8,325 $3,900 $15,841 $11,400 (1) During the three and nine months ended March 31, 2023, we incurred charges of $4.7 million, within restructuring charges, net, on our interim consolidated statements of operations, related to a reduction to our ROU lease assets which were attributed to certain leased space we are no longer utilizing for our business operations. Lease term and discount rate information are summarized as follows: March 31, 2023 Weighted average remaining lease term (in years) 4.0 Weighted average discount rate 4.8% |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of March 31, 2023 are as follows (in thousands) for the years ended: 2023 (remaining three months) $ 4,095 2024 16,504 2025 16,317 2026 15,371 2027 and thereafter 10,354 Total lease payments 62,641 Less imputed interest (6,664) Present value of lease liabilities $ 55,977 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Funding Debt and Aggregate Future Maturities | Funding debt and its aggregate future maturities consists of the following (in thousands): March 31, 2023 June 30, 2022 2023 $ 17,503 $ 158,547 2024 598,318 421,484 2025 419,580 — 2026 231,308 — 2027 and thereafter 261,210 103,364 Total $ 1,527,919 $ 683,395 Deferred debt issuance costs (13,799) (10,818) Total funding debt, net of deferred debt issuance costs $ 1,514,120 $ 672,577 |
Schedule of Long-term Debt Instruments | The convertible senior notes outstanding as of March 31, 2023 consisted of the following (in thousands): Principal Amount Unamortized Discount and Issuance Cost Net Carrying Amount Convertible Senior Notes $ 1,425,900 $ (12,555) $ 1,413,345 |
Securitization and Variable I_2
Securitization and Variable Interest Entities (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Aggregate Carrying Value of Financial Assets and Liabilities from VIEs | The following tables present the aggregate carrying value of financial assets and liabilities within consolidated VIEs (in thousands): March 31, 2023 Assets Liabilities Net Assets Warehouse credit facilities $ 1,585,168 $ 1,386,167 $ 199,001 Securitizations 1,922,876 1,792,114 130,762 Total consolidated VIEs $ 3,508,044 $ 3,178,281 $ 329,763 June 30, 2022 Assets Liabilities Net Assets Warehouse credit facilities $ 563,207 $ 534,422 $ 28,785 Securitizations 1,679,062 1,632,107 46,955 Total consolidated VIEs $ 2,242,269 $ 2,166,529 $ 75,740 |
Schedule of Variable Interest Entities | The following information pertains to unconsolidated VIEs where we hold a variable interest but are not the primary beneficiary (in thousands): March 31, 2023 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 505,301 $ 489,938 $ 15,363 $ 25,252 Total unconsolidated VIEs $ 505,301 $ 489,938 $ 15,363 $ 25,252 June 30, 2022 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 996,242 $ 965,909 $ 30,333 $ 51,248 Total unconsolidated VIEs $ 996,242 $ 965,909 $ 30,333 $ 51,248 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Marketable Securities | Marketable securities include certain investments classified as cash and cash equivalents and securities available for sale, at fair value, and consist of the following as of each date presented within the interim condensed consolidated balance sheets (in thousands): March 31, 2023 June 30, 2022 Cash and cash equivalents: Money market funds $ 204,449 $ 162,483 Certificates of deposit — 16,026 Commercial paper 156,887 229,272 Government bonds US 193,175 58,541 Securities available for sale: Certificates of deposit 145,528 300,390 Corporate bonds 292,726 368,671 Commercial paper 186,143 478,293 Agency bonds 35,194 — Government bonds Non-US 6,108 17,955 US 367,081 378,386 Securitization notes receivable and certificates (1) 25,235 51,678 Other 1,016 — Total marketable securities: $ 1,613,542 $ 2,061,695 (1) These securities have been pledged as collateral in connection with sale and repurchase agreements as discussed within Note 10. Debt. |
Unrealized Gain (Loss) on Investments | The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of March 31, 2023 and June 30, 2022 were as follows (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Certificates of deposit $ 145,813 $ 21 $ (306) $ — $ 145,528 Corporate bonds 296,186 225 (3,685) — 292,726 Commercial paper (1) 343,077 62 (109) — 343,030 Agency bonds 35,092 102 — — 35,194 Government bonds Non-US 6,258 — (150) — 6,108 US (1) 561,761 366 (1,871) — 560,256 Securitization notes receivable and certificates (2) 26,330 — (616) (479) 25,235 Other 1,016 — — — 1,016 Total securities available for sale $ 1,415,533 $ 776 $ (6,737) $ (479) $ 1,409,093 June 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Certificates of deposit (1) $ 317,331 $ 6 $ (921) $ — $ 316,416 Corporate bonds (1) 371,907 7 (3,243) — 368,671 Commercial paper (1) 708,694 16 (1,145) — 707,565 Government bonds Non-US 18,196 — (241) — 17,955 US (1) 438,947 — (2,020) — 436,927 Securitization notes receivable and certificates (2) 52,180 178 (659) (21) 51,678 Total securities available for sale $ 1,907,255 $ 207 $ (8,229) $ (21) $ 1,899,212 (1) Certificates of deposit, corporate bonds, commercial paper, and US government bonds include $350.1 million and $303.8 million as of March 31, 2023 and June 30, 2022, respectively, classified as cash and cash equivalents within the interim condensed consolidated balance sheets. |
Schedule of Available-for-sale Securities with Unrealized Losses | A summary of securities available for sale with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time that individual securities have been in a continuous loss position as of March 31, 2023 and June 30, 2022, are as follows (in thousands): March 31, 2023 Less than or equal to 1 year Greater than 1 year Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificates of deposit $ 123,816 $ (306) $ — $ — $ 123,816 $ (306) Corporate bonds 243,747 (3,364) 29,672 (321) 273,419 (3,685) Commercial paper 151,058 (109) — — 151,058 (109) Government bonds Non-US 2,089 (43) 4,018 (107) 6,107 (150) US 201,831 (1,871) — — 201,831 (1,871) Total securities available for sale (1) $ 722,541 $ (5,693) $ 33,690 $ (428) $ 756,231 $ (6,121) June 30, 2022 Less than or equal to 1 year Greater than 1 year Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificates of deposit $ 290,169 $ (921) $ — $ — $ 290,169 $ (921) Corporate bonds 351,088 (3,243) — — 351,088 (3,243) Commercial paper 679,272 (1,145) — — 679,272 (1,145) Government bonds Non-US 17,955 (241) — — 17,955 (241) US 431,903 (2,020) — — 431,903 (2,020) Securitization notes receivable and certificates 722 (45) — — 722 (45) Total securities available for sale (1) $ 1,771,109 $ (7,615) $ — $ — $ 1,771,109 $ (7,615) (1) The number of positions with unrealized losses for which an allowance for credit losses has not been recorded totaled 133 and 270 as of March 31, 2023 and June 30, 2022, respectively. |
Schedule of Length of Contractual Maturities of Securities Available for Sale | The length of time to contractual maturities of securities available for sale as of March 31, 2023 and June 30, 2022 were as follows (in thousands): March 31, 2023 Within 1 year Greater than 1 year, less than or equal to 5 years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Certificates of deposit (2) $ 145,813 $ 145,528 $ — $ — $ 145,813 $ 145,528 Corporate bonds (2) 161,736 160,486 134,450 132,240 296,186 292,726 Commercial paper (2) 343,077 343,030 — — 343,077 343,030 Agency bonds 31,411 31,511 3,681 3,683 35,092 35,194 Government bonds Non-US 4,126 4,019 2,132 2,089 6,258 6,108 US (2) 491,446 490,718 70,315 69,538 561,761 560,256 Securitization notes receivable and certificates (1) — — 26,330 25,235 26,330 25,235 Other 1,016 1,016 — — 1,016 1,016 Total securities available for sale $ 1,178,625 $ 1,176,308 $ 236,908 $ 232,785 $ 1,415,533 $ 1,409,093 June 30, 2022 Within 1 year Greater than 1 year, less than or equal to 5 years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Certificates of deposit (2) $ 317,331 $ 316,416 $ — $ — $ 317,331 $ 316,416 Corporate bonds (2) 206,208 204,614 165,699 164,057 371,907 368,671 Commercial paper (2) 708,694 707,565 — — 708,694 707,565 Government bonds Non-US 11,895 11,813 6,301 6,142 18,196 17,955 US (2) 360,757 359,242 78,190 77,685 438,947 436,927 Securitization notes receivable and certificates (1) — — 52,180 51,678 52,180 51,678 Total securities available for sale $ 1,604,885 $ 1,599,650 $ 302,370 $ 299,562 $ 1,907,255 $ 1,899,212 (1) Based on weighted average life of expected cash flows as of March 31, 2023 and June 30, 2022 . (2) Certificates of deposit, corporate bonds, commercial paper, and US government bonds include $350.1 million and $303.8 million as of March 31, 2023 and June 30, 2022, respectively, classified as cash and cash equivalents within the interim condensed consolidated balance sheets. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The following table summarizes the total fair value, including interest accruals, and outstanding notional amounts of derivative instruments as of March 31, 2023 and June 30, 2022 (in thousands): March 31, 2023 June 30, 2022 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as cash flow hedges Interest rate contracts - cash flow hedges $ 1,100,000 $ 27 $ (284) $ — $ — $ — Derivatives not designated as hedges Interest rate contracts 2,066,660 49,432 — 1,690,000 49,983 — Total gross derivative assets/liabilities $ 3,166,660 $ 49,459 $ (284) $ 1,690,000 $ 49,983 $ — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the impact of the cash flow hedges on Accumulated Other Comprehensive Income (“AOCI”) (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2023 Balance at beginning of period $ — $ — Changes in fair value (303) (303) Amounts reclassified into earnings (1) (46) (46) Balance at end of period ( 2) $ (257) $ (257) (1) The amounts reclassified into earnings is presented in the interim consolidated statements of income within funding costs. (2) Over the next 12 months, we expect to reclassify $0.3 million of net pre-tax losses from AOCI into funding costs within our interim consolidated statements of operations and comprehensive income. |
Summary of Gain (Loss) on Derivative Instruments | The following table summarizes the impact of the derivative instruments on income and indicates where within the interim consolidated statements of operations and comprehensive income such impact is reported (in thousands): Location of Gains (Losses) where the Effects of Derivatives are recorded Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 The effects of cash flow hedging Funding Costs (46) (46) The effects of derivatives not designated in hedging relationships Other Income, net (3,691) 35,145 33,819 38,416 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Fair Value Measured on Recurring Basis | The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2023 and June 30, 2022 (in thousands): March 31, 2023 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 204,449 $ — $ — $ 204,449 Commercial paper — 156,887 — 156,887 Government bonds - U.S. — 193,175 — 193,175 Securities available for sale: Certificate of deposit — 145,528 — 145,528 Corporate bonds — 292,726 — 292,726 Commercial paper — 186,143 — 186,143 Agency bonds — 35,194 — 35,194 Government bonds: Non-U.S. — 6,108 — 6,108 U.S. — 367,081 — 367,081 Securitization notes receivable and residual trust certificates — — 25,235 25,235 Other — — 1,016 1,016 Servicing assets — — 771 771 Derivative instruments — 49,459 — 49,459 Total assets $ 204,449 $ 1,432,301 $ 27,022 $ 1,663,772 Liabilities: Servicing liabilities $ — $ — $ 3,674 $ 3,674 Performance fee liability — — 1,697 1,697 Residual trust certificates, held by third-parties — — 178 178 Contingent consideration — — 14,580 14,580 Profit share liability — — 2,190 2,190 Derivative instruments — 284 — 284 Total liabilities $ — $ 284 $ 22,319 $ 22,603 June 30, 2022 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 162,483 $ — $ — $ 162,483 Certificates of deposit — 16,026 — 16,026 Commercial paper — 229,272 — 229,272 Government bonds - U.S. — 58,541 — 58,541 Securities available for sale: Certificate of deposit — 300,390 — 300,390 Corporate bonds — 368,671 — 368,671 Commercial paper — 478,293 — 478,293 Government bonds: Non-U.S. — 17,955 — 17,955 U.S. — 378,386 — 378,386 Securitization notes receivable and residual trust certificates — — 51,678 51,678 Servicing assets — — 1,192 1,192 Derivative instruments — 49,983 — 49,983 Total assets $ 162,483 $ 1,897,517 $ 52,870 $ 2,112,870 Liabilities: Servicing liabilities $ — $ — $ 2,673 $ 2,673 Performance fee liability — — 1,710 1,710 Residual trust certificates, held by third-parties — — 377 377 Contingent consideration — — 23,348 23,348 Profit share liability — — 1,987 1,987 Total liabilities $ — $ — $ 30,095 $ 30,095 |
Schedule of Servicing Assets at Fair Value | The following table summarizes the activity related to the aggregate fair value of our servicing assets (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 1,093 $ 2,178 $ 1,192 $ 2,349 Initial transfers of financial assets — 1,991 433 3,105 Subsequent changes in fair value (322) 451 (854) (834) Fair value at end of period $ 771 $ 4,620 $ 771 $ 4,620 |
Schedule of Servicing Liabilities at Fair Value | The following table summarizes the activity related to the aggregate fair value of our servicing liabilities (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 3,680 $ 8,626 $ 2,673 $ 3,961 Initial transfers of financial assets 1,954 2,940 6,149 13,826 Subsequent changes in fair value (1,960) (5,960) (5,148) (12,181) Fair value at end of period $ 3,674 $ 5,606 $ 3,674 $ 5,606 |
Schedule of Significant Unobservable Inputs for Level 3 Fair Value Measurement | The following tables presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of March 31, 2023 and June 30, 2022: March 31, 2023 Unobservable Input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.75 % 3.00 % 0.97 % Gross default rate (2) 1.90 % 10.64 % 3.73 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.75 % 3.00 % 2.23 % Gross default rate (2) 10.25 % 27.14 % 13.35 % June 30, 2022 Unobservable Input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.78 % 1.85 % 1.10 % Gross default rate (2) 0.59 % 50.59 % 1.59 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 2.13 % 2.34 % 2.21 % Gross default rate (2) 9.03 % 24.44 % 13.81 % (1) Estimated annual cost of servicing a loan as a percentage of unpaid principal balance (2) Annualized estimated gross charge-offs as a percentage of unpaid principal balance The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability as of March 31, 2023 and June 30, 2022: March 31, 2023 Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Refund rate 1.50% 1.50% 1.50% Default rate 1.78% 3.34% 2.77% June 30, 2022 Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Refund rate 4.50% 4.50% 4.50% Default rate 1.78% 3.10% 2.42% The following table present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates held by third-parties as of March 31, 2023 and June 30, 2022: March 31, 2023 Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 15.00% 10.00% Loss rate 0.75% 1.13% 0.75% Prepayment rate 4.00% 8.00% 8.00% June 30, 2022 Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Loss rate 0.75% 0.75% 0.75% Prepayment rate 8.00% 8.00% 8.00% The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates as of March 31, 2023 and June 30, 2022 : March 31, 2023 Unobservable Input Minimum Maximum Weighted Average Discount rate 4.45% 29.84% 6.96% Loss rate 1.16% 17.39% 3.58% Prepayment rate 7.00% 30.30% 19.72% June 30, 2022 Unobservable Input Minimum Maximum Weighted Average Discount rate 3.68% 22.50% 5.37% Loss rate 0.61% 10.95% 2.65% Prepayment rate 5.25% 35.00% 18.48% The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the profit sharing liability as of March 31, 2023 and June 30, 2022 : March 31, 2023 Unobservable Input Minimum Maximum Weighted Average Discount rate 30.00% 30.00% 30.00% Program profitability 0.07% 1.81% 1.30% June 30, 2022 Unobservable Input Minimum Maximum Weighted Average Discount rate 30.00% 30.00% 30.00% Program profitability 1.25% 3.54% 1.28% |
Schedule of Sensitivity Analysis of Fair Value, Servicing Assets and Liabilities | The following table summarizes the effect that adverse changes in estimates would have on the fair value of the servicing assets and liabilities given hypothetical changes in significant unobservable inputs (in thousands): March 31, 2023 June 30, 2022 Servicing assets Gross default rate assumption: Gross default rate increase of 25% $ — $ 11 Gross default rate increase of 50% $ (1) $ 22 Adequate compensation assumption: Adequate compensation increase of 10% $ (578) $ — Adequate compensation increase of 20% $ (1,156) $ — Adequate compensation increase of 25% $ — $ (3,513) Adequate compensation increase of 50% $ — $ (7,026) Discount rate assumption: Discount rate increase of 25% $ (26) $ (57) Discount rate increase of 50% $ (51) $ (109) Servicing liabilities Gross default rate assumption: Gross default rate increase of 25% $ (14) $ (10) Gross default rate increase of 50% $ (28) $ (21) Adequate compensation assumption: Adequate compensation increase of 10% $ 3,104 $ — Adequate compensation increase of 20% $ 6,207 $ — Adequate compensation increase of 25% $ — $ 6,139 Adequate compensation increase of 50% $ — $ 12,278 Discount rate assumption: Discount rate increase of 25% $ (77) $ (50) Discount rate increase of 50% $ (149) $ (98) |
Summary of Activity for Liabilities With Significant Unobservable Inputs for Fair Value | The following table summarizes the activity related to the fair value of the performance fee liability (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 1,876 $ 1,530 $ 1,710 $ 1,290 Purchases of loans 337 432 1,388 1,265 Settlements Paid (997) (418) (1,498) (418) Subsequent changes in fair value 481 40 97 (553) Fair value at end of period $ 1,697 $ 1,584 $ 1,697 $ 1,584 The following table summarizes the activity related to the fair value of the residual trust certificates held by third-parties (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 242 $ 619 $ 377 $ 914 Repayments (71) (146) (248) (549) Subsequent changes in fair value 7 16 49 124 Fair value at end of period $ 178 $ 489 $ 178 $ 489 The following table summarizes the activity related to the fair value of the notes and residual trust certificates (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 32,766 $ 25,319 $ 51,678 $ 16,170 Additions — 22,067 — 35,762 Cash received (due to payments or sales) (8,012) (4,414) (26,847) (8,798) Change in unrealized gain (loss) 374 (402) (136) (586) Accrued interest 249 215 997 285 Reversal of (impairment on) securities available for sale (143) (78) (458) (126) Fair value at end of period $ 25,235 $ 42,707 $ 25,235 $ 42,707 The following table summarizes the activity related to the fair value of the PayBright contingent consideration (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 12,510 $ 253,750 $ 23,348 $ 153,447 Subsequent changes in fair value 2,109 (136,248) (7,193) (28,682) Effect of foreign currency translation (39) 1,506 (1,575) (5,757) Fair value at end of period $ 14,580 $ 119,008 $ 14,580 $ 119,008 The following table summarizes the activity related to the fair value of the profit share liability (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Fair value at beginning of period $ 3,697 $ 2,053 $ 1,987 $ 2,465 Facilitation of loans 1,045 1,098 4,520 4,672 Actual performance (3,890) (2,918) (6,154) (3,929) Subsequent changes in fair value 1,338 1,645 1,837 (1,330) Fair value at end of period $ 2,190 $ 1,878 $ 2,190 $ 1,878 |
Schedule Sensitivity Analysis of Fair Value, Residual Trust Certificates | The following table summarizes the effect that adverse changes in estimates would have on the fair value of the securitization residual trust certificates given hypothetical changes in significant unobservable inputs (in thousands): March 31, 2023 June 30, 2022 Discount rate assumption: Discount rate increase of 25% $ (288) $ (1,410) Discount rate increase of 50% $ (566) $ (2,295) Loss rate assumption: Loss rate increase of 25% $ (243) $ (729) Loss rate increase of 50% $ (368) $ (964) Prepayment rate assumption: Prepayment rate decrease of 25% $ (45) $ (545) Prepayment rate decrease of 50% $ (91) $ (519) |
Fair Value Hierarchy for Financial Assets and Liabilities Not Recorded at Fair Value | The following tables present the fair value hierarchy for financial assets and liabilities not recorded at fair value as of March 31, 2023 and June 30, 2022 (in thousands): March 31, 2023 Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 122 $ — $ 122 $ — $ 122 Loans held for investment, net 3,599,206 — — 3,816,941 3,816,941 Other assets 9,637 — 9,637 — 9,637 Total assets $ 3,608,965 $ — $ 9,759 $ 3,816,941 $ 3,826,700 Liabilities: Convertible senior notes, net (1) $ 1,413,345 $ — $ 923,270 $ — $ 923,270 Notes issued by securitization trusts 1,788,853 — — 1,743,862 1,743,862 Funding debt (2) 1,527,919 — — 1,527,869 1,527,869 Total liabilities $ 4,730,117 $ — $ 923,270 $ 3,271,731 $ 4,195,001 June 30, 2022 Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 2,670 $ — $ 2,670 $ — $ 2,670 Loans held for investment, net 2,348,169 — — 2,412,871 2,412,871 Other assets 12,661 — 12,661 — 12,661 Total assets $ 2,363,500 $ — $ 15,331 $ 2,412,871 $ 2,428,202 Liabilities: Convertible senior notes, net (1) $ 1,706,668 $ — $ 984,285 $ — $ 984,285 Notes issued by securitization trusts 1,627,580 — — 1,529,401 1,529,401 Funding debt (2) 683,395 — — 683,388 683,388 Total liabilities $ 4,017,643 $ — $ 984,285 $ 2,212,789 $ 3,197,074 (1) The estimated fair value of the convertible senior notes is determined based on a market approach, using the estimated or actual bids and offers of the notes in an over-the-counter market on the last business day of the period. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock, Reserved for Future Issuance | The Company had shares of common stock reserved for issuance as follows: March 31, 2023 June 30, 2022 Available outstanding under stock option plan 54,341,564 53,158,233 Available for future grant under stock option plan 37,230,979 31,156,746 Total 91,572,543 84,314,979 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes our stock option activity for the nine months ended March 31, 2023: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Balance as of June 30, 2022 19,310,706 $ 15.22 6.94 Granted 1,991,427 19.10 Exercised (726,425) 4.39 Forfeited, expired or cancelled (993,984) 37.14 Balance as of March 31, 2023 19,581,724 14.92 6.27 Vested and exercisable, March 31, 2023 14,385,171 $ 10.14 5.61 $ 62,657 Vested and exercisable, and expected to vest thereafter (1) March 31, 2023 19,341,889 $ 14.66 6.25 $ 64,261 (1) Options expected to vest reflect the application of an estimated forfeiture rate. |
Schedule of Restricted Stock Unit Activity | The following table summarizes our RSU activity during the nine months ended March 31, 2023: Number of Shares Weighted Average Grant Date Fair Value Non-vested as of June 30, 2022 21,387,592 $ 38.41 Granted 15,977,301 23.18 Vested (10,118,647) 34.01 Forfeited, expired or cancelled (4,911,072) 37.43 Non-vested as of March 31, 2023 22,335,174 $ 29.72 |
Schedule of Components and Classification of Stock-based Compensation | The following table presents the components and classification of stock-based compensation (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 General and administrative $ 54,789 $ 58,100 $ 188,788 $ 187,789 Technology and data analytics 45,040 33,639 137,002 75,133 Sales and marketing 5,840 5,998 19,517 15,655 Processing and servicing 1,120 650 3,065 1,536 Total stock-based compensation in operating expenses 106,789 98,387 348,372 280,113 Capitalized into property, equipment and software, net 19,113 14,618 62,760 39,691 Total stock-based compensation expense $ 125,902 $ 113,005 $ 411,132 $ 319,804 |
Restructuring charges, net (Tab
Restructuring charges, net (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | For the three and nine months ended March 31, 2023, restructuring charges, net was comprised of the following (in thousands): March 31, 2023 Employee severance pay and related costs $ 28,753 Non-cash accelerations of depreciation and amortization expense (1) 6,181 Restructuring charges, net $ 34,934 (1) At March 31, 2023, we had a remaining right-of-use asset of $5.2 million related to the office closure that we expect to be fully amortized in the fourth quarter of fiscal 2023 upon fully vacating this space. For further information, refer to Note 7. Leases . |
Schedule of Restructuring Accrual Activity | The Company’s restructuring accrual activity for the nine months ended March 31, 2023 is summarized as follows (in thousands): Accrued restructuring costs, June 30, 2022 $ — Additions 26,297 Cash paid (25,642) Adjustment 2,548 Foreign currency translation and other adjustments (5) Accrued restructuring costs, March 31, 2023 $ 3,198 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share | The following table presents basic and diluted net loss per share attributable to common stockholders for Class A and Class B common stock (in thousands, except share and per share data): Three Months Ended March 31, Nine Months Ended March 31, 2023 2023 Class A Class B Class A Class B Numerator: Net loss $ (164,093) $ (41,584) $ (620,015) $ (159,368) Net loss attributable to common stockholders - basic and diluted $ (164,093) $ (41,584) $ (620,015) $ (159,368) Denominator: Weighted average shares of common stock - basic 237,116,053 60,088,662 233,815,676 60,099,592 Weighted average shares of common stock - diluted 237,116,053 60,088,662 233,815,676 60,099,592 Net loss per share: Basic $ (0.69) $ (0.69) $ (2.65) $ (2.65) Diluted $ (0.69) $ (0.69) $ (2.65) $ (2.65) Three Months Ended March 31, Nine Months Ended March 31, 2022 2022 Class A Class B Class A Class B Numerator: Net loss $ (43,061) $ (11,610) $ (389,424) $ (131,597) Net loss attributable to common stockholders - basic and diluted $ (43,061) $ (11,610) $ (389,424) $ (131,597) Denominator: Weighted average shares of common stock - basic 224,980,598 60,661,222 208,957,734 70,612,281 Weighted average shares of common stock - diluted 224,980,598 60,661,222 208,957,734 70,612,281 Net loss per share: Basic $ (0.19) $ (0.19) $ (1.86) $ (1.86) Diluted $ (0.19) $ (0.19) $ (1.86) $ (1.86) |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The following common stock equivalents, presented based on amounts outstanding, were excluded from the calculation of diluted net loss per share attributable to common stockholders because their inclusion would have been anti-dilutive: As of March 31, 2023 2022 Restricted stock units 22,335,174 16,351,621 Stock options, including early exercise of options 19,581,724 17,195,165 Common stock warrants 6,036,813 5,909,896 Employee stock purchase plan shares 640,075 161,300 Total 48,593,786 39,617,982 |
Business Description (Details)
Business Description (Details) | 9 Months Ended |
Mar. 31, 2023 | |
Minimum | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan lending terms | 1 month |
Maximum | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan lending terms | 60 months |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 148,482 | $ 144,223 | $ 451,475 | $ 409,507 |
Interest income | 178,270 | 134,599 | 470,393 | 390,256 |
Gain on sales of loans | 32,813 | 52,484 | 156,015 | 141,153 |
Servicing income | 21,413 | 23,456 | 64,277 | 44,242 |
Total Revenue, net | 380,978 | 354,762 | 1,142,160 | 985,158 |
Merchant network revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 119,013 | 121,054 | 366,181 | 340,385 |
Virtual card network revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 29,469 | $ 23,169 | $ 85,294 | $ 69,122 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | ||
Period of suspended accrued interest past due | 120 days | |
Non-accrued loans held for investment | $ 1.3 | $ 1.7 |
Revenue - Schedule of Interest
Revenue - Schedule of Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | ||||
Interest income on unpaid principal balance | $ 147,759 | $ 95,253 | $ 379,755 | $ 266,868 |
Amortization of discount on loans | 39,130 | 45,443 | 116,937 | 138,853 |
Amortization of premiums on loans | (4,515) | (3,407) | (13,469) | (9,139) |
Interest receivable charged-off, net of recoveries | (4,104) | (2,690) | (12,830) | (6,326) |
Interest income | $ 178,270 | $ 134,599 | $ 470,393 | $ 390,256 |
Loans Held for Investment and_3
Loans Held for Investment and Allowance for Credit Losses - Loans Held for Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Receivables [Abstract] | ||
Unpaid principal balance | $ 3,823,038 | $ 2,516,733 |
Accrued interest receivable | 33,997 | 20,697 |
Premiums on loans held for investment | 7,896 | 8,911 |
Less: Discount due to loss on loan purchase commitment | (45,368) | (20,692) |
Less: Discount due to loss on directly originated loans | (43,486) | (20,443) |
Less: Fair value adjustment on loans acquired through business combination | (535) | (1,645) |
Loans held for investment | $ 3,775,542 | $ 2,503,561 |
Loans Held for Investment and_4
Loans Held for Investment and Allowance for Credit Losses - Additional Information (Details) $ in Billions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans purchased | $ 3.7 | $ 3 | $ 11.7 | $ 8.6 |
Threshold period for delinquent loans past due | 4 days | 4 days | ||
Past due charge-off threshold | 120 days | 120 days | ||
Minimum | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan lending terms | 1 month | |||
Proprietary credit quality score | 0 | 0 | ||
Maximum | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan lending terms | 60 months | |||
Proprietary credit quality score | 100 | 100 |
Loans Held for Investment and_5
Loans Held for Investment and Allowance for Credit Losses - Credit Quality by ITACs Score (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | $ 3,452,231 | $ 2,288,907 |
2022 | 227,004 | 158,318 |
2021 | 51,360 | 37,607 |
2020 | 10,796 | 618 |
2019 | 307 | 82 |
Prior | 18 | 2 |
Loans held for investment | 3,741,716 | 2,485,534 |
2023 Current period charge-offs | (59,228) | |
2022 Current period charge-offs | (161,934) | |
2021 Current period charge-offs | (6,115) | |
2020 Current period charge-offs | (509) | |
2019 Current period charge-offs | (74) | |
Prior current period charge-offs | (26) | |
Total current period charge-offs | (227,886) | |
2023 Current period recoveries | 2,956 | |
2022 Current period recoveries | 13,447 | |
2021 Current period recoveries | 4,000 | |
2020 Current period recoveries | 1,158 | |
2019 Current period recoveries | 753 | |
Prior current period recoveries | 554 | |
Total current period recoveries | 22,868 | |
2023 Current period net charge-offs | (56,272) | |
2022 Current period net charge-offs | (148,487) | |
2021 Current period net charge-offs | (2,115) | |
2020 Current period net charge-offs | 649 | |
2019 Current period net charge-offs | 679 | |
Prior current period net charge-offs | 528 | |
Total current period net charge-offs | (205,018) | |
96+ | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 2,185,767 | 1,218,104 |
2022 | 94,353 | 122,503 |
2021 | 33,450 | 33,458 |
2020 | 9,085 | 157 |
2019 | 9 | 1 |
Prior | 1 | 0 |
Loans held for investment | 2,322,665 | 1,374,223 |
94-96 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 865,503 | 620,403 |
2022 | 38,625 | 11,240 |
2021 | 933 | 773 |
2020 | 189 | 13 |
2019 | 6 | 2 |
Prior | 2 | 0 |
Loans held for investment | 905,258 | 632,431 |
90-94 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 95,252 | 220,056 |
2022 | 12,391 | 3,886 |
2021 | 136 | 6 |
2020 | 2 | 4 |
2019 | 4 | 0 |
Prior | 0 | 0 |
Loans held for investment | 107,785 | 223,952 |
Less than 90 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 16,786 | 44,300 |
2022 | 2,795 | 135 |
2021 | 6 | 2 |
2020 | 2 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Loans held for investment | 19,589 | 44,437 |
No score | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 288,923 | 186,044 |
2022 | 78,840 | 20,554 |
2021 | 16,835 | 3,368 |
2020 | 1,518 | 444 |
2019 | 288 | 79 |
Prior | 15 | 2 |
Loans held for investment | $ 386,419 | $ 210,491 |
Loans Held for Investment and_6
Loans Held for Investment and Allowance for Credit Losses - Unpaid Principal Balance for Loans Held for Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Non-delinquent loans | $ 3,775,542 | $ 2,503,561 |
Loans held for investment | 3,741,716 | 2,485,534 |
Loan receivable on nonaccrual status | 24,600 | 22,700 |
Non-delinquent loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-delinquent loans | 3,587,516 | 2,322,919 |
4 – 29 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-delinquent loans | 68,344 | 77,963 |
30 – 59 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-delinquent loans | 32,591 | 34,669 |
60 – 89 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-delinquent loans | 27,888 | 26,919 |
90 – 119 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-delinquent loans | $ 25,377 | $ 23,064 |
Loans Held for Investment and_7
Loans Held for Investment and Allowance for Credit Losses - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 182,100 | $ 158,289 | $ 155,392 | $ 117,760 |
Provision for credit losses | 61,480 | 62,021 | 225,962 | 172,720 |
Charge-offs | (75,820) | (67,280) | (227,886) | (145,307) |
Recoveries of charged-off receivables | 8,576 | 6,445 | 22,868 | 14,302 |
Balance at end of period | $ 176,336 | $ 159,475 | $ 176,336 | $ 159,475 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Feb. 01, 2023 | Apr. 19, 2022 | Jul. 01, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Fast AF, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Cash | $ 10,000 | ||||||
Forgiveness of senior secured note | 15,000 | ||||||
Cost of identifiable intangible assets | 25,415 | ||||||
Transaction costs | 400 | ||||||
Fast AF, Inc | Assembled workforce | |||||||
Business Acquisition [Line Items] | |||||||
Cost of identifiable intangible assets | $ 12,490 | ||||||
Butter Holdings, Ltd. | |||||||
Business Acquisition [Line Items] | |||||||
Cash | $ 14,863 | ||||||
Settlement of subordinated secured notes | 1,475 | ||||||
Purchase price | $ 16,337 | ||||||
Transaction costs | $ 0 | $ 1,700 | |||||
ShopBrain | |||||||
Business Acquisition [Line Items] | |||||||
Cash | $ 30,000 | ||||||
Common stock issued (in shares) | 151,745 | ||||||
Purchase price | $ 40,000 | ||||||
Transaction costs | $ 0 | $ 200 |
Acquisitions - Butter Holdings
Acquisitions - Butter Holdings Acquisition, Fair Value of Consideration Transferred (Details) - Butter Holdings, Ltd. $ in Thousands | Feb. 01, 2023 USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 14,863 |
Settlement of subordinated secured notes | 1,475 |
Total acquisition date fair value of the consideration transferred | $ 16,337 |
Acquisitions - Butter Holding_2
Acquisitions - Butter Holdings Acquisition, Allocation of Consideration Paid to Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Feb. 01, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Business Acquisition [Line Items] | ||||
Accounts Receivable, net | $ 11 | |||
Goodwill | $ 537,126 | $ 539,534 | ||
Butter Holdings, Ltd. | ||||
Business Acquisition [Line Items] | ||||
Purchase price | 16,337 | |||
Cash and cash equivalents | $ 287 | |||
Loans held for investment, net | 172 | |||
Intangible assets | $ 9,243 | |||
Other assets | 672 | |||
Total net assets acquired | 10,385 | |||
Accounts payable | 568 | |||
Accrued expenses and other liabilities | 2,923 | |||
Total liabilities assumed | 3,491 | |||
Net assets acquired | 6,894 | |||
Goodwill | 9,443 | |||
Net assets acquired | $ 16,337 |
Acquisitions - Butter Holding_3
Acquisitions - Butter Holdings Acquisition, Identifiable Intangible Assets Acquired (Details) $ in Thousands | Feb. 01, 2023 USD ($) |
Butter Holdings, Ltd. | Lending license | |
Business Acquisition [Line Items] | |
Fair Value | $ 9,243 |
Acquisitions - ShopBrain Acquis
Acquisitions - ShopBrain Acquisition, Fair Value of Consideration Transferred (Details) - ShopBrain $ in Thousands | Jul. 01, 2021 USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 30,000 |
Fair value of Class A common stock transferred | 10,000 |
Total acquisition date fair value of the consideration transferred | $ 40,000 |
Acquisitions - ShopBrain Acqu_2
Acquisitions - ShopBrain Acquisition, Allocation of Consideration Paid to Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 | Jul. 01, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 537,126 | $ 539,534 | |
ShopBrain | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 9,488 | ||
Total net assets acquired | 9,488 | ||
Goodwill | 30,512 | ||
Total purchase price | $ 40,000 |
Acquisitions - Identifiable Int
Acquisitions - Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Apr. 19, 2022 | Jul. 01, 2021 |
Fast AF, Inc | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 25,415 | |
Developed technology | Fast AF, Inc | ||
Business Acquisition [Line Items] | ||
Fair Value | 12,925 | |
Assembled workforce | Fast AF, Inc | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 12,490 | |
ShopBrain | Developed technology | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 9,488 | |
Useful Life (in years) | 3 years |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Nov. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Allowance for accounts receivable | $ 12,300,000 | $ 12,300,000 | $ 13,900,000 | ||||
Depreciation | 23,900,000 | $ 7,600,000 | 53,000,000 | $ 19,200,000 | |||
Impairment expense on leasehold improvements | 0 | 0 | 0 | 0 | |||
Goodwill impairment loss | 0 | 0 | 0 | 0 | |||
Amortization of intangible assets | 23,600,000 | 5,500,000 | 38,400,000 | 16,400,000 | |||
Impairment of intangible assets | 0 | 0 | 0 | 0 | |||
Vesting of warrants exercised | $ 133,500,000 | ||||||
Commercial agreement term | 3 years 2 months 12 days | ||||||
Amortization of sales and marketing expense | 10,200,000 | 10,200,000 | 31,100,000 | 16,000,000 | |||
Extension of remaining expected benefit period | 2 years | ||||||
Amortization of commercial agreement assets | 64,202,000 | 72,804,000 | |||||
Commercial Agreement Asset, Shopify Inc, Warrants | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Commercial agreement asset, gross | 270,600,000 | $ 270,600,000 | |||||
Asset amortization period | 4 years | ||||||
Amortization of commercial agreement assets | 8,800,000 | 16,700,000 | $ 26,900,000 | 50,700,000 | |||
Commercial Agreement Asset, Enterprise Partner, Stock Appreciation Rights | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Commercial agreement asset, gross | $ 25,900,000 | ||||||
Asset amortization period | 3 years | ||||||
Amortization of commercial agreement assets | $ 2,000,000 | $ 2,000,000 | $ 6,200,000 | $ 6,000,000 |
Balance Sheet Components - Prop
Balance Sheet Components - Property, Equipment and Software (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total Property, equipment and software, at cost | $ 381,857 | $ 231,820 |
Less: Accumulated depreciation and amortization | (104,701) | (60,338) |
Total Property, equipment and software, net | 277,156 | 171,482 |
Internally developed software | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, equipment and software, at cost | 344,497 | 200,621 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, equipment and software, at cost | 20,128 | 16,169 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, equipment and software, at cost | 10,797 | 10,751 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, equipment and software, at cost | $ 6,435 | $ 4,279 |
Balance Sheet Components - Good
Balance Sheet Components - Goodwill and Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 539,534 |
Additions | 9,443 |
Effect of foreign currency translation | (11,851) |
Ending balance | $ 537,126 |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2023 | Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ (54,887) | $ (28,629) | |
Total amortization expense | 36,495 | ||
Total intangible assets, gross | 103,155 | 94,646 | |
Total intangible assets | 48,267 | 66,017 | |
Trademarks and domains | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | 2,146 | ||
Trademarks, licenses and domains, indefinite | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | 11,422 | ||
Other intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | 350 | 350 | |
Merchant relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 37,933 | 38,371 | |
Accumulated Amortization | (19,887) | (10,281) | |
Total amortization expense | $ 18,046 | 28,090 | |
Weighted Average Remaining Useful Life (in years) | 3 years 7 months 6 days | 2 years 10 months 24 days | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | $ 39,500 | 39,782 | |
Accumulated Amortization | (26,159) | (15,882) | |
Total amortization expense | $ 13,340 | 23,900 | |
Weighted Average Remaining Useful Life (in years) | 1 year 10 months 24 days | 1 year 2 months 12 days | |
Assembled workforce | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | $ 12,490 | 12,490 | |
Accumulated Amortization | (7,909) | (1,664) | |
Total amortization expense | $ 4,581 | 10,826 | |
Weighted Average Remaining Useful Life (in years) | 1 year 3 months 18 days | 7 months 6 days | |
Trademarks and domains | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | $ 1,460 | 1,507 | |
Accumulated Amortization | (932) | (802) | |
Total amortization expense | $ 528 | $ 705 | |
Weighted Average Remaining Useful Life (in years) | 2 years 4 months 24 days | 1 year 10 months 24 days |
Balance Sheet Components - Expe
Balance Sheet Components - Expected Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Balance Sheet Related Disclosures [Abstract] | |
2023 (remaining three months) | $ 25,910 |
2024 | 10,260 |
2025 | 251 |
2026 | 59 |
2027 and thereafter | 15 |
Total amortization expense | $ 36,495 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Processing reserves | $ 53,728 | $ 26,483 |
Derivative instruments | 49,459 | 49,983 |
Equity securities, at cost | 43,172 | 43,172 |
Operating lease right-of-use assets | 34,054 | 50,671 |
Prepaid expenses | 29,878 | 37,497 |
Other assets | 60,348 | 73,761 |
Total other assets | $ 270,639 | $ 281,567 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Operating lease liability | $ 55,977 | $ 65,713 |
Collateral held for derivative instruments | 52,219 | 55,779 |
Accrued expenses | 39,967 | 67,343 |
Other liabilities | 44,197 | 48,763 |
Total accrued expenses and other liabilities | $ 192,360 | $ 237,598 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Lessee, Lease, Description [Line Items] | |||||
Restricted cash | $ 409,015,000 | $ 413,628,000 | $ 409,015,000 | $ 413,628,000 | $ 295,636,000 |
Impairment expense | 0 | 0 | |||
Restructuring Charges | 34,934,000 | 0 | 34,934,000 | 0 | |
Sublease income | $ 900,000 | $ 900,000 | $ 2,600,000 | $ 2,300,000 | |
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease termination notice period | 9 months | ||||
Remaining lease term | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease termination notice period | 1 year | ||||
Remaining lease term | 8 years | 8 years | |||
Cash collateral and deposits for letters of credit | |||||
Lessee, Lease, Description [Line Items] | |||||
Restricted cash | $ 9,700,000 | $ 9,700,000 | $ 9,700,000 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 8,325 | $ 3,900 | $ 15,841 | $ 11,400 |
Restructuring Charges | 34,934 | $ 0 | 34,934 | $ 0 |
Restructuring Charges | ||||
Lessee, Lease, Description [Line Items] | ||||
Restructuring Charges | $ 4,700 | $ 4,700 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Term and Discount Rate (Details) | Mar. 31, 2023 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 4 years |
Weighted average discount rate | 4.80% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Leases [Abstract] | ||
2023 (remaining three months) | $ 4,095 | |
2024 | 16,504 | |
2025 | 16,317 | |
2026 | 15,371 | |
2027 and thereafter | 10,354 | |
Total lease payments | 62,641 | |
Less imputed interest | (6,664) | |
Present value of lease liabilities | $ 55,977 | $ 65,713 |
Debt - Aggregate Future Maturit
Debt - Aggregate Future Maturities of Funding Debt (Details) - Funding debt - Revolving facilities - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Line of Credit Facility [Line Items] | ||
Funding debt, year one | $ 17,503 | $ 158,547 |
Funding debt, year two | 598,318 | 421,484 |
Funding debt, year three | 419,580 | 0 |
Funding debt, year four | 231,308 | 0 |
Funding debt, after year four | 261,210 | 103,364 |
Total | 1,527,919 | 683,395 |
Deferred debt issuance costs | (13,799) | (10,818) |
Total funding debt, net of deferred debt issuance costs | $ 1,514,120 | $ 672,577 |
Debt - Additional Information (
Debt - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Feb. 04, 2022 USD ($) | Nov. 23, 2021 USD ($) d $ / shares | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | May 16, 2022 USD ($) | |
Line of Credit Facility [Line Items] | ||||||||
Loans held for investment | $ 3,775,542 | $ 3,775,542 | $ 2,503,561 | |||||
Gain on extinguishment of debt | $ 89,841 | $ 0 | ||||||
Fair value, liability, recurring basis, unobservable input reconciliation, gain (loss), statement of income or comprehensive income | Other income, net | |||||||
Remaining life | 44 months | |||||||
Borrowings outstanding | $ 1,514,120 | $ 1,514,120 | 672,577 | |||||
Repayments of Convertible Debt | $ 206,567 | 0 | ||||||
2022-X1 | Senior Pledged Securities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Investment interest rate | 6.68% | 6.68% | ||||||
2022-X1 | Residual Certificate Pledged Securities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Investment interest rate | 6.68% | 6.68% | ||||||
Convertible Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest expense | $ 1,000 | $ 1,000 | $ 3,100 | $ 1,400 | ||||
Conversion ratio | 0.0046371 | |||||||
Convertible Senior Notes | Conversion Period One | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Threshold trading days | d | 20 | |||||||
Threshold consecutive trading days | d | 30 | |||||||
Threshold percentage of stock price trigger | 130% | |||||||
Redemption price (as a percentage) | 100% | |||||||
Convertible Senior Notes | Conversion Period Two | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Threshold consecutive trading days | d | 5 | |||||||
Minimum percentage of common stock price trigger | 98% | |||||||
Funding debt | Warehouse Credit Facilities | Asset Pledged as Collateral | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Loans held for investment | 1,800,000 | 1,800,000 | 800,000 | |||||
Repurchase Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Liability component of debt outstanding | 17,500 | 17,500 | 27,000 | |||||
Repurchase Agreement | 2021-Z1 and 2021-Z2 | Other Receivables | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Pledged securities | 25,200 | 25,200 | 32,400 | |||||
Convertible Debt | Convertible Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Funding debt | 296,400 | 296,400 | ||||||
Liability component of debt outstanding | 1,413,345 | 1,413,345 | ||||||
Securitization issued | $ 1,725,000 | 1,425,900 | 1,425,900 | |||||
Fixed interest rate | 0% | |||||||
Proceeds from debt | $ 1,704,000 | |||||||
Conversion price of redeemable convertible preferred stock (in USD per share) | $ / shares | $ 215.65 | |||||||
Repurchased amount | 299,100 | 299,100 | ||||||
Gain on extinguishment of debt | 89,800 | |||||||
Repayments of Convertible Debt | 206,600 | |||||||
Revolving facilities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Aggregate commitment amount of credit facility | $ 165,000 | $ 205,000 | ||||||
Unused commitment fee percentage | 0.20% | |||||||
Borrowings outstanding | 0 | 0 | ||||||
Revolving facilities | Fed Funds Effective Rate Overnight Index Swap Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread | 0.50% | |||||||
Revolving facilities | One Month London Interbank Offered Rate (LIBOR) | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread | 1% | |||||||
Revolving facilities | Base Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread | 0.85% | |||||||
Revolving facilities | Secured Overnight Financing Rate (SOFR) | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread | 1.85% | |||||||
Revolving facilities | Funding debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Funding debt | 1,527,919 | 1,527,919 | 683,395 | |||||
Liability component of debt outstanding | 1,514,120 | $ 1,514,120 | $ 672,577 | |||||
Revolving facilities | Funding debt | Warehouse Credit Facilities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Covenant, period prior to final maturity date borrowings can occur | 12 months | |||||||
Aggregate commitment amount of credit facility | 4,000,000 | $ 4,000,000 | ||||||
Funding debt | 1,500,000 | 1,500,000 | ||||||
Remaining amount available of credit facility | $ 2,500,000 | $ 2,500,000 | ||||||
Minimum | Revolving facilities | Warehouse Credit Facilities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unused commitment fee percentage | 0% | |||||||
Minimum | Revolving facilities | Funding debt | Warehouse Credit Facilities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Advance rate percentage | 82% | |||||||
Basis spread | 1.25% | |||||||
Maximum | Revolving facilities | Warehouse Credit Facilities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unused commitment fee percentage | 0.75% | |||||||
Maximum | Revolving facilities | Funding debt | Warehouse Credit Facilities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Advance rate percentage | 88% | |||||||
Basis spread | 4.25% |
Debt - Convertible Notes Outsta
Debt - Convertible Notes Outstanding (Details) - Convertible Senior Notes - Convertible Debt - USD ($) $ in Thousands | Mar. 31, 2023 | Nov. 23, 2021 |
Line of Credit Facility [Line Items] | ||
Principal Amount | $ 1,425,900 | $ 1,725,000 |
Unamortized Discount and Issuance Cost | (12,555) | |
Total funding debt, net of deferred debt issuance costs | $ 1,413,345 |
Securitization and Variable I_3
Securitization and Variable Interest Entities - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Fair value | $ 1,409,093 | $ 1,899,212 |
2021-B | ||
Debt Instrument [Line Items] | ||
Percentage of residual certificates retained | 100% | |
2020-A | ||
Debt Instrument [Line Items] | ||
Percentage of residual certificates retained | 100% | |
2020-Z1 | ||
Debt Instrument [Line Items] | ||
Percentage of residual certificates retained | 100% | |
2021-A | ||
Debt Instrument [Line Items] | ||
Percentage of residual certificates retained | 100% |
Securitizations and Variable In
Securitizations and Variable Interest Entities - Aggregate Carrying Value of Financial Assets and Liabilities from Consolidated VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Assets | $ 7,507,849 | $ 6,973,792 |
Liabilities | 4,996,713 | 4,355,537 |
Consolidated Variable Interest Entities | ||
Debt Instrument [Line Items] | ||
Assets | 3,508,044 | 2,242,269 |
Liabilities | 3,178,281 | 2,166,529 |
Net Assets | 329,763 | 75,740 |
Consolidated Variable Interest Entities | Warehouse credit facilities | ||
Debt Instrument [Line Items] | ||
Assets | 1,585,168 | 563,207 |
Liabilities | 1,386,167 | 534,422 |
Net Assets | 199,001 | 28,785 |
Consolidated Variable Interest Entities | Securitizations | ||
Debt Instrument [Line Items] | ||
Assets | 1,922,876 | 1,679,062 |
Liabilities | 1,792,114 | 1,632,107 |
Net Assets | $ 130,762 | $ 46,955 |
Securitizations and Variable _2
Securitizations and Variable Interest Entities - Aggregate Carrying Value of Financial Assets and Liabilities from Unconsolidated VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Assets | $ 7,507,849 | $ 6,973,792 |
Liabilities | 4,996,713 | 4,355,537 |
Variable Interest Entity, Not Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Assets | 505,301 | 996,242 |
Liabilities | 489,938 | 965,909 |
Net Assets | 15,363 | 30,333 |
Maximum Exposure to Losses | 25,252 | 51,248 |
Variable Interest Entity, Not Primary Beneficiary | Securitizations | ||
Debt Instrument [Line Items] | ||
Assets | 505,301 | 996,242 |
Liabilities | 489,938 | 965,909 |
Net Assets | 15,363 | 30,333 |
Maximum Exposure to Losses | $ 25,252 | $ 51,248 |
Investments - Marketable Securi
Investments - Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Marketable Securities [Line Items] | ||
Marketable Securities | $ 1,613,542 | $ 2,061,695 |
Money market funds | Cash and cash equivalents: | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 204,449 | 162,483 |
Certificates of deposit | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 145,528 | 300,390 |
Certificates of deposit | Cash and cash equivalents: | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 0 | 16,026 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 186,143 | 478,293 |
Commercial paper | Cash and cash equivalents: | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 156,887 | 229,272 |
Government bonds, US | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 367,081 | 378,386 |
Government bonds, US | Cash and cash equivalents: | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 193,175 | 58,541 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 292,726 | 368,671 |
Government bonds, Non-US | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 6,108 | 17,955 |
Securitization notes receivable and certificates | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 25,235 | 51,678 |
Agency bonds | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 35,194 | 0 |
Other | ||
Marketable Securities [Line Items] | ||
Marketable Securities | $ 1,016 | $ 0 |
Investments - Securities Availa
Investments - Securities Available for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,415,533 | $ 1,907,255 |
Gross Unrealized Gains | 776 | 207 |
Gross Unrealized Losses | (6,737) | (8,229) |
Allowance for Credit Losses | (479) | (21) |
Fair value | 1,409,093 | 1,899,212 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 145,813 | 317,331 |
Gross Unrealized Gains | 21 | 6 |
Gross Unrealized Losses | (306) | (921) |
Allowance for Credit Losses | 0 | 0 |
Fair value | 145,528 | 316,416 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 296,186 | 371,907 |
Gross Unrealized Gains | 225 | 7 |
Gross Unrealized Losses | (3,685) | (3,243) |
Allowance for Credit Losses | 0 | 0 |
Fair value | 292,726 | 368,671 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 343,077 | 708,694 |
Gross Unrealized Gains | 62 | 16 |
Gross Unrealized Losses | (109) | (1,145) |
Allowance for Credit Losses | 0 | 0 |
Fair value | 343,030 | 707,565 |
Government bonds, Non-US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,258 | 18,196 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (150) | (241) |
Allowance for Credit Losses | 0 | 0 |
Fair value | 6,108 | 17,955 |
Government bonds, US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 561,761 | 438,947 |
Gross Unrealized Gains | 366 | 0 |
Gross Unrealized Losses | (1,871) | (2,020) |
Allowance for Credit Losses | 0 | 0 |
Fair value | 560,256 | 436,927 |
Securitization notes receivable and certificates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 26,330 | 52,180 |
Gross Unrealized Gains | 0 | 178 |
Gross Unrealized Losses | (616) | (659) |
Allowance for Credit Losses | (479) | (21) |
Fair value | 25,235 | 51,678 |
Certificates Of Deposit, Corporate Bonds, Non-US Government Bonds And Commercial Paper | Cash and Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 350,100 | $ 303,800 |
Agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 35,092 | |
Gross Unrealized Gains | 102 | |
Gross Unrealized Losses | 0 | |
Allowance for Credit Losses | 0 | |
Fair value | 35,194 | |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,016 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Allowance for Credit Losses | 0 | |
Fair value | $ 1,016 |
Investments - Available for Sal
Investments - Available for Sale Securities with Unrealized Losses (Details) $ in Thousands | Mar. 31, 2023 USD ($) position | Jun. 30, 2022 USD ($) position |
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | $ 722,541 | $ 1,771,109 |
Less than or equal to 1 year, unrealized losses | (5,693) | (7,615) |
Greater than 1 year, fair value | 33,690 | 0 |
Greater than 1 year, unrealized losses | (428) | 0 |
Total, fair value | 756,231 | 1,771,109 |
Total, unrealized losses | $ (6,121) | $ (7,615) |
Number of positions with unrealized losses | position | 133,000 | 270,000 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | $ 123,816 | $ 290,169 |
Less than or equal to 1 year, unrealized losses | (306) | (921) |
Greater than 1 year, fair value | 0 | 0 |
Greater than 1 year, unrealized losses | 0 | 0 |
Total, fair value | 123,816 | 290,169 |
Total, unrealized losses | (306) | (921) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | 243,747 | 351,088 |
Less than or equal to 1 year, unrealized losses | (3,364) | (3,243) |
Greater than 1 year, fair value | 29,672 | 0 |
Greater than 1 year, unrealized losses | (321) | 0 |
Total, fair value | 273,419 | 351,088 |
Total, unrealized losses | (3,685) | (3,243) |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | 151,058 | 679,272 |
Less than or equal to 1 year, unrealized losses | (109) | (1,145) |
Greater than 1 year, fair value | 0 | 0 |
Greater than 1 year, unrealized losses | 0 | 0 |
Total, fair value | 151,058 | 679,272 |
Total, unrealized losses | (109) | (1,145) |
Government bonds, Non-US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | 2,089 | 17,955 |
Less than or equal to 1 year, unrealized losses | (43) | (241) |
Greater than 1 year, fair value | 4,018 | 0 |
Greater than 1 year, unrealized losses | (107) | 0 |
Total, fair value | 6,107 | 17,955 |
Total, unrealized losses | (150) | (241) |
Government bonds, US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | 201,831 | 431,903 |
Less than or equal to 1 year, unrealized losses | (1,871) | (2,020) |
Greater than 1 year, fair value | 0 | 0 |
Greater than 1 year, unrealized losses | 0 | 0 |
Total, fair value | 201,831 | 431,903 |
Total, unrealized losses | $ (1,871) | (2,020) |
Securitization notes receivable and certificates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | 722 | |
Less than or equal to 1 year, unrealized losses | (45) | |
Greater than 1 year, fair value | 0 | |
Greater than 1 year, unrealized losses | 0 | |
Total, fair value | 722 | |
Total, unrealized losses | $ (45) |
Investments - Length of Contrac
Investments - Length of Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | $ 1,178,625 | $ 1,604,885 |
Within 1 year, fair value | 1,176,308 | 1,599,650 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 236,908 | 302,370 |
Greater than 1 year, less than or equal to 5 years, fair value | 232,785 | 299,562 |
Amortized Cost | 1,415,533 | 1,907,255 |
Total, amortized cost | 1,415,533 | 1,907,255 |
Fair Value | 1,409,093 | 1,899,212 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 145,813 | 317,331 |
Within 1 year, fair value | 145,528 | 316,416 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 0 | 0 |
Greater than 1 year, less than or equal to 5 years, fair value | 0 | 0 |
Amortized Cost | 145,813 | 317,331 |
Fair Value | 145,528 | 316,416 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 161,736 | 206,208 |
Within 1 year, fair value | 160,486 | 204,614 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 134,450 | 165,699 |
Greater than 1 year, less than or equal to 5 years, fair value | 132,240 | 164,057 |
Amortized Cost | 296,186 | 371,907 |
Fair Value | 292,726 | 368,671 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 343,077 | 708,694 |
Within 1 year, fair value | 343,030 | 707,565 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 0 | 0 |
Greater than 1 year, less than or equal to 5 years, fair value | 0 | 0 |
Amortized Cost | 343,077 | 708,694 |
Fair Value | 343,030 | 707,565 |
Government bonds, Non-US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 4,126 | 11,895 |
Within 1 year, fair value | 4,019 | 11,813 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 2,132 | 6,301 |
Greater than 1 year, less than or equal to 5 years, fair value | 2,089 | 6,142 |
Amortized Cost | 6,258 | 18,196 |
Fair Value | 6,108 | 17,955 |
Government bonds, US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 491,446 | 360,757 |
Within 1 year, fair value | 490,718 | 359,242 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 70,315 | 78,190 |
Greater than 1 year, less than or equal to 5 years, fair value | 69,538 | 77,685 |
Amortized Cost | 561,761 | 438,947 |
Fair Value | 560,256 | 436,927 |
Securitization notes receivable and certificates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 0 | 0 |
Within 1 year, fair value | 0 | 0 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 26,330 | 52,180 |
Greater than 1 year, less than or equal to 5 years, fair value | 25,235 | 51,678 |
Amortized Cost | 26,330 | 52,180 |
Total, amortized cost | 26,330 | 52,180 |
Fair Value | 25,235 | 51,678 |
Certificates Of Deposit, Corporate Bonds, US Government Bonds And Commercial Paper | Cash and cash equivalents: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 350,100 | $ 303,800 |
Agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 31,411 | |
Within 1 year, fair value | 31,511 | |
Greater than 1 year, less than or equal to 5 years, amortized cost | 3,681 | |
Greater than 1 year, less than or equal to 5 years, fair value | 3,683 | |
Amortized Cost | 35,092 | |
Fair Value | 35,194 | |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 1,016 | |
Within 1 year, fair value | 1,016 | |
Greater than 1 year, less than or equal to 5 years, amortized cost | 0 | |
Greater than 1 year, less than or equal to 5 years, fair value | 0 | |
Amortized Cost | 1,016 | |
Total, amortized cost | 1,016 | |
Fair Value | $ 1,016 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Investments, All Other Investments [Abstract] | |||||
Gross proceeds from matured or redeemed securities | $ 709,500 | $ 949,300 | $ 2,863,900 | $ 1,584,800 | |
Equity securities, at cost | $ 43,172 | $ 43,172 | $ 43,172 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) | 9 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value, liability, recurring basis, unobservable input reconciliation, gain (loss), statement of income or comprehensive income | Other income, net |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 3,166,660 | $ 1,690,000 |
Derivative Assets | 49,459 | 49,983 |
Derivative Liabilities | (284) | 0 |
Derivatives designated as cash flow hedges | Interest rate contracts - cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 1,100,000 | 0 |
Derivative Assets | 27 | 0 |
Derivative Liabilities | (284) | 0 |
Derivatives not designated as hedges | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 2,066,660 | 1,690,000 |
Derivative Assets | 49,432 | 49,983 |
Derivative Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Impact of Cash Flow Hedges on AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2023 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Expected reclassifications | $ 300 | |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 0 | 0 |
Changes in fair value | (303) | (303) |
Amounts reclassified into earnings | (46) | (46) |
Balance at end of period | $ (257) | $ (257) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Derivatives designated as cash flow hedges | Funding Costs | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
The effects of cash flow hedging | $ (46) | $ (46) | ||
Derivatives not designated as hedges | Other Income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
The effects of derivatives not designated in hedging relationships | $ (3,691) | $ 35,145 | $ 33,819 | $ 38,416 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Servicing assets | $ 800 | $ 1,200 | ||||
Derivative instruments | 49,459 | 49,983 | ||||
Servicing liabilities | 3,674 | $ 3,680 | 2,673 | $ 5,606 | $ 8,626 | $ 3,961 |
Derivative instruments | 284 | 0 | ||||
Money market funds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 204,449 | 162,483 | ||||
Commercial paper | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 156,887 | 229,272 | ||||
Restricted cash | 186,143 | 478,293 | ||||
Government bonds, US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 193,175 | 58,541 | ||||
Restricted cash | 367,081 | 378,386 | ||||
Certificates of deposit | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 16,026 | |||||
Restricted cash | 145,528 | 300,390 | ||||
Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 292,726 | 368,671 | ||||
Agency bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 35,194 | |||||
Government bonds, Non-US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 6,108 | 17,955 | ||||
Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securitization notes receivable and residual trust certificates | 25,235 | 51,678 | ||||
Other | 1,016 | |||||
Servicing assets | 771 | 1,192 | ||||
Derivative instruments | 49,459 | 49,983 | ||||
Total assets | 1,663,772 | 2,112,870 | ||||
Servicing liabilities | 3,674 | 2,673 | ||||
Performance fee liability | 1,697 | 1,710 | ||||
Residual trust certificates, held by third-parties | 178 | 377 | ||||
Contingent consideration | 14,580 | 23,348 | ||||
Profit share liability | 2,190 | 1,987 | ||||
Derivative instruments | 284 | |||||
Total liabilities | 22,603 | 30,095 | ||||
Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other | 0 | 0 | ||||
Total assets | 0 | 0 | ||||
Total liabilities | 0 | 0 | ||||
Level 1 | Money market funds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 204,449 | 162,483 | ||||
Level 1 | Commercial paper | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||
Level 1 | Government bonds, US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||
Level 1 | Certificates of deposit | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | |||||
Restricted cash | 0 | 0 | ||||
Level 1 | Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | 0 | ||||
Level 1 | Agency bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | |||||
Level 1 | Government bonds, Non-US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | 0 | ||||
Level 1 | Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securitization notes receivable and residual trust certificates | 0 | 0 | ||||
Other | 0 | |||||
Servicing assets | 0 | 0 | ||||
Derivative instruments | 0 | 0 | ||||
Total assets | 204,449 | 162,483 | ||||
Servicing liabilities | 0 | 0 | ||||
Performance fee liability | 0 | 0 | ||||
Residual trust certificates, held by third-parties | 0 | 0 | ||||
Contingent consideration | 0 | 0 | ||||
Profit share liability | 0 | 0 | ||||
Derivative instruments | 0 | |||||
Total liabilities | 0 | 0 | ||||
Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other | 9,637 | 12,661 | ||||
Total assets | 9,759 | 15,331 | ||||
Total liabilities | 923,270 | 984,285 | ||||
Level 2 | Money market funds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Level 2 | Commercial paper | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 156,887 | 229,272 | ||||
Restricted cash | 186,143 | 478,293 | ||||
Level 2 | Government bonds, US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 193,175 | 58,541 | ||||
Restricted cash | 367,081 | 378,386 | ||||
Level 2 | Certificates of deposit | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 16,026 | |||||
Restricted cash | 145,528 | 300,390 | ||||
Level 2 | Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 292,726 | 368,671 | ||||
Level 2 | Agency bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 35,194 | |||||
Level 2 | Government bonds, Non-US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 6,108 | 17,955 | ||||
Level 2 | Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securitization notes receivable and residual trust certificates | 0 | 0 | ||||
Other | 0 | |||||
Servicing assets | 0 | 0 | ||||
Derivative instruments | 49,459 | 49,983 | ||||
Total assets | 1,432,301 | 1,897,517 | ||||
Servicing liabilities | 0 | 0 | ||||
Performance fee liability | 0 | 0 | ||||
Residual trust certificates, held by third-parties | 0 | 0 | ||||
Contingent consideration | 0 | 0 | ||||
Profit share liability | 0 | 0 | ||||
Derivative instruments | 284 | |||||
Total liabilities | 284 | 0 | ||||
Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other | 0 | 0 | ||||
Total assets | 3,816,941 | 2,412,871 | ||||
Total liabilities | 3,271,731 | 2,212,789 | ||||
Level 3 | Money market funds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Level 3 | Commercial paper | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||
Level 3 | Government bonds, US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||
Level 3 | Certificates of deposit | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | |||||
Restricted cash | 0 | 0 | ||||
Level 3 | Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | 0 | ||||
Level 3 | Agency bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | |||||
Level 3 | Government bonds, Non-US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | 0 | ||||
Level 3 | Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securitization notes receivable and residual trust certificates | 25,235 | 51,678 | ||||
Other | 1,016 | |||||
Servicing assets | 771 | 1,192 | ||||
Derivative instruments | 0 | 0 | ||||
Total assets | 27,022 | 52,870 | ||||
Servicing liabilities | 3,674 | 2,673 | ||||
Performance fee liability | 1,697 | 1,710 | ||||
Residual trust certificates, held by third-parties | 178 | 377 | ||||
Contingent consideration | 14,580 | 23,348 | ||||
Profit share liability | 2,190 | 1,987 | ||||
Derivative instruments | 0 | |||||
Total liabilities | $ 22,319 | $ 30,095 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jan. 01, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Unpaid balance on loans sold with retained servicing rights | $ 1,700,000 | $ 2,000,000 | $ 5,800,000 | $ 5,600,000 | |||||
Unpaid principal balance on serviced sold loans | 4,200,000 | 4,200,000 | $ 4,500,000 | ||||||
Servicing income | 21,413 | 23,456 | 64,277 | 44,242 | |||||
Servicing assets | 800 | 800 | 1,200 | ||||||
Servicing liabilities | $ 3,700 | $ 3,700 | 2,700 | ||||||
Economic risk retention | 5% | 5% | |||||||
Fair value, liability, recurring basis, unobservable input reconciliation, gain (loss), statement of income or comprehensive income | Other income, net | ||||||||
Senior Notes And Residual Trust Certificates | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Aggregate fair value | $ 25,235 | $ 42,707 | $ 25,235 | $ 42,707 | $ 51,678 | $ 32,766 | $ 25,319 | $ 16,170 | |
PayBright | Class B common stock | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Common stock issued in escrow, subject to forfeiture (in shares) | 2,587,362 | ||||||||
Common stock released form escrow (in shares) | 1,293,681 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Fair Value of Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Fair value at beginning of period | $ 1,093 | $ 2,178 | $ 1,192 | $ 2,349 |
Initial transfers of financial assets | 0 | 1,991 | 433 | 3,105 |
Subsequent changes in fair value | (322) | 451 | (854) | (834) |
Fair value at end of period | $ 771 | $ 4,620 | $ 771 | $ 4,620 |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities - Fair Value of Servicing Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Fair value at beginning of period | $ 3,680 | $ 8,626 | $ 2,673 | $ 3,961 |
Initial transfers of financial assets | 1,954 | 2,940 | 6,149 | 13,826 |
Subsequent changes in fair value | (1,960) | (5,960) | (5,148) | (12,181) |
Fair value at end of period | $ 3,674 | $ 5,606 | $ 3,674 | $ 5,606 |
Fair Value of Financial Asset_7
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Servicing Assets and Liabilities (Details) | Mar. 31, 2023 | Jun. 30, 2022 |
Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.3000 | 0.3000 |
Servicing liability, measurement input | 0.3000 | 0.3000 |
Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.3000 | 0.3000 |
Servicing liability, measurement input | 0.3000 | 0.3000 |
Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.3000 | 0.3000 |
Servicing liability, measurement input | 0.3000 | 0.3000 |
Adequate compensation | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0075 | 0.0078 |
Servicing liability, measurement input | 0.0075 | 0.0213 |
Adequate compensation | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0300 | 0.0185 |
Servicing liability, measurement input | 0.0300 | 0.0234 |
Adequate compensation | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0097 | 0.0110 |
Servicing liability, measurement input | 0.0223 | 0.0221 |
Gross default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0190 | 0.0059 |
Servicing liability, measurement input | 0.1025 | 0.0903 |
Gross default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.1064 | 0.5059 |
Servicing liability, measurement input | 0.2714 | 0.2444 |
Gross default rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0373 | 0.0159 |
Servicing liability, measurement input | 0.1335 | 0.1381 |
Fair Value of Financial Asset_8
Fair Value of Financial Assets and Liabilities - Summary of Adverse Changes in Estimates for Servicing Assets and Liabilities Inputs (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Gross default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, effect of 25% increase in measurement input | $ 0 | $ 11 |
Servicing asset, effect of 50% increase in measurement input | (1) | 22 |
Servicing liability, effect of 25% increase in measurement input | (14) | (10) |
Servicing liability, effect of 50% increase in measurement input | (28) | (21) |
Adequate compensation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, effect of 25% increase in measurement input | 0 | (3,513) |
Servicing asset, effect of 50% increase in measurement input | 0 | (7,026) |
Servicing asset, effect of 10% increase in measurement input | (578) | 0 |
Servicing asset, effect of 20% increase in measurement input | (1,156) | 0 |
Servicing liability, effect of 25% increase in measurement input | 0 | 6,139 |
Servicing liability, effect of 50% increase in measurement input | 0 | 12,278 |
Servicing liability, effect of 10% increase in measurement input | 3,104 | 0 |
Servicing liability, effect of 20% increase in measurement input | 6,207 | 0 |
Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, effect of 25% increase in measurement input | (26) | (57) |
Servicing asset, effect of 50% increase in measurement input | (51) | (109) |
Servicing liability, effect of 25% increase in measurement input | (77) | (50) |
Servicing liability, effect of 50% increase in measurement input | $ (149) | $ (98) |
Fair Value of Financial Asset_9
Fair Value of Financial Assets and Liabilities - Fair Value of Performance Fee Liability (Details) - Performance Fee Liability - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | $ 1,876 | $ 1,530 | $ 1,710 | $ 1,290 |
Purchases of loans | 337 | 432 | 1,388 | 1,265 |
Repayments | (997) | (418) | (1,498) | (418) |
Subsequent changes in fair value | 481 | 40 | 97 | (553) |
Fair value at end of period | $ 1,697 | $ 1,584 | $ 1,697 | $ 1,584 |
Fair Value of Financial Asse_10
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Performance Fee Liability (Details) | Mar. 31, 2023 | Jun. 30, 2022 |
Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.1000 | 0.1000 |
Minimum | Refund rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0150 | 0.0450 |
Minimum | Default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0178 | 0.0178 |
Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.1000 | 0.1000 |
Maximum | Refund rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0150 | 0.0450 |
Maximum | Default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0334 | 0.0310 |
Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.1000 | 0.1000 |
Weighted Average | Refund rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0150 | 0.0450 |
Weighted Average | Default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0277 | 0.0242 |
Fair Value of Financial Asse_11
Fair Value of Financial Assets and Liabilities - Fair Value of Residual Trust Certificates (Details) - Residual Trust Certificates Held by Third-Parties in Consolidated VIEs - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | $ 242 | $ 619 | $ 377 | $ 914 |
Repayments | (71) | (146) | (248) | (549) |
Subsequent changes in fair value | 7 | 16 | 49 | 124 |
Fair value at end of period | $ 178 | $ 489 | $ 178 | $ 489 |
Fair Value of Financial Asse_12
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Residual Trust Certificates (Details) - Residual Trust Certificates Held by Third-Parties in Consolidated VIEs | Mar. 31, 2023 | Jun. 30, 2022 |
Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.1000 | 0.1000 |
Minimum | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0075 | 0.0075 |
Minimum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0400 | 0.0800 |
Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.1500 | 0.1000 |
Maximum | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0113 | 0.0075 |
Maximum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0800 | 0.0800 |
Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.1000 | 0.1000 |
Weighted Average | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0075 | 0.0075 |
Weighted Average | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0800 | 0.0800 |
Fair Value of Financial Asse_13
Fair Value of Financial Assets and Liabilities - Fair Value of Senior Notes and Residual Trust Certificates (Details) - Senior Notes And Residual Trust Certificates - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | $ 32,766 | $ 25,319 | $ 51,678 | $ 16,170 |
Additions | 0 | 22,067 | 0 | 35,762 |
Cash received (due to payments or sales) | (8,012) | (4,414) | (26,847) | (8,798) |
Change in unrealized gain (loss) | 374 | (402) | (136) | (586) |
Accrued interest | 249 | 215 | 997 | 285 |
Reversal of (impairment on) securities available for sale | (143) | (78) | (458) | (126) |
Fair value at end of period | $ 25,235 | $ 42,707 | $ 25,235 | $ 42,707 |
Fair Value of Financial Asse_14
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Senior Notes and Residual Trust Certificated (Details) - Senior Notes And Residual Trust Certificates | Mar. 31, 2023 | Jun. 30, 2022 |
Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0445 | 0.0368 |
Minimum | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0116 | 0.0061 |
Minimum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0700 | 0.0525 |
Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.2984 | 0.2250 |
Maximum | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.1739 | 0.1095 |
Maximum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.3030 | 0.3500 |
Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0696 | 0.0537 |
Weighted Average | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0358 | 0.0265 |
Weighted Average | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.1972 | 0.1848 |
Fair Value of Financial Asse_15
Fair Value of Financial Assets and Liabilities - Summary of Adverse Changes in Estimates for Securitization Notes and Residual Trust Certificates (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securitization notes and residual trust certificates, effect of 25% increase (decrease) in measurement input | $ (288) | $ (1,410) |
Securitization notes and residual trust certificates, effect of 50% increase (decrease) in measurement input | (566) | (2,295) |
Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securitization notes and residual trust certificates, effect of 25% increase (decrease) in measurement input | (243) | (729) |
Securitization notes and residual trust certificates, effect of 50% increase (decrease) in measurement input | (368) | (964) |
Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securitization notes and residual trust certificates, effect of 25% increase (decrease) in measurement input | (45) | (545) |
Securitization notes and residual trust certificates, effect of 50% increase (decrease) in measurement input | $ (91) | $ (519) |
Fair Value of Financial Asse_16
Fair Value of Financial Assets and Liabilities - Fair Value of Contingent Consideration (Details) - Contingent Consideration - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | $ 12,510 | $ 253,750 | $ 23,348 | $ 153,447 |
Subsequent changes in fair value | 2,109 | (136,248) | (7,193) | (28,682) |
Effect of foreign currency translation | (39) | 1,506 | (1,575) | (5,757) |
Fair value at end of period | $ 14,580 | $ 119,008 | $ 14,580 | $ 119,008 |
Fair Value of Financial Asse_17
Fair Value of Financial Assets and Liabilities - Fair Value of Profit Share Liability (Details) - Commercial Agreement, Profit Share Liability - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | $ 3,697 | $ 2,053 | $ 1,987 | $ 2,465 |
Facilitation of loans | 1,045 | 1,098 | 4,520 | 4,672 |
Actual performance | (3,890) | (2,918) | (6,154) | (3,929) |
Subsequent changes in fair value | 1,338 | 1,645 | 1,837 | (1,330) |
Fair value at end of period | $ 2,190 | $ 1,878 | $ 2,190 | $ 1,878 |
Fair Value of Financial Asse_18
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Profit Share Liability (Details) - Commercial Agreement, Profit Share Liability | Mar. 31, 2023 | Jun. 30, 2022 |
Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Commercial agreement, profit share liability, measurement input | 0.3000 | 0.3000 |
Minimum | Program profitability | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Commercial agreement, profit share liability, measurement input | 0.0007 | 0.0125 |
Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Commercial agreement, profit share liability, measurement input | 0.3000 | 0.3000 |
Maximum | Program profitability | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Commercial agreement, profit share liability, measurement input | 0.0181 | 0.0354 |
Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Commercial agreement, profit share liability, measurement input | 0.3000 | 0.3000 |
Weighted Average | Program profitability | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Commercial agreement, profit share liability, measurement input | 0.0130 | 0.0128 |
Fair Value of Financial Asse_19
Fair Value of Financial Assets and Liabilities - Financial Assets and Liabilities Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Revolving facilities | Funding debt | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Debt issuance cost | $ 13,799 | $ 10,818 |
Level 1 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | 0 | 0 |
Loans held for investment, net | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Convertible senior notes, net | 0 | 0 |
Notes issued by securitization trusts | 0 | 0 |
Funding debt | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | 122 | 2,670 |
Loans held for investment, net | 0 | 0 |
Other assets | 9,637 | 12,661 |
Total assets | 9,759 | 15,331 |
Convertible senior notes, net | 923,270 | 984,285 |
Notes issued by securitization trusts | 0 | 0 |
Funding debt | 0 | 0 |
Total liabilities | 923,270 | 984,285 |
Level 3 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | 0 | 0 |
Loans held for investment, net | 3,816,941 | 2,412,871 |
Other assets | 0 | 0 |
Total assets | 3,816,941 | 2,412,871 |
Convertible senior notes, net | 0 | 0 |
Notes issued by securitization trusts | 1,743,862 | 1,529,401 |
Funding debt | 1,527,869 | 683,388 |
Total liabilities | 3,271,731 | 2,212,789 |
Carrying Amount | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | 122 | 2,670 |
Loans held for investment, net | 3,599,206 | 2,348,169 |
Other assets | 9,637 | 12,661 |
Total assets | 3,608,965 | 2,363,500 |
Convertible senior notes, net | 1,413,345 | 1,706,668 |
Notes issued by securitization trusts | 1,788,853 | 1,627,580 |
Funding debt | 1,527,919 | 683,395 |
Total liabilities | 4,730,117 | 4,017,643 |
Balance at Fair Value | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | 122 | 2,670 |
Loans held for investment, net | 3,816,941 | 2,412,871 |
Other assets | 9,637 | 12,661 |
Total assets | 3,826,700 | 2,428,202 |
Convertible senior notes, net | 923,270 | 984,285 |
Notes issued by securitization trusts | 1,743,862 | 1,529,401 |
Funding debt | 1,527,869 | 683,388 |
Total liabilities | $ 4,195,001 | $ 3,197,074 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Issuance (Details) - shares | Mar. 31, 2023 | Jun. 30, 2022 |
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 91,572,543 | 84,314,979 |
Available outstanding under stock option plan | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 54,341,564 | 53,158,233 |
Available for future grant under stock option plan | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 37,230,979 | 31,156,746 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) vote class | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) vote class | Mar. 31, 2022 USD ($) | |
Class of Stock [Line Items] | |||||
Number of classes of common stock | class | 2 | 2 | |||
Warrants granted for purchase (in shares) | shares | 22,000,000 | ||||
Dividend yield | 0% | ||||
Volatility | 45% | ||||
Vesting of warrants exercised | $ 133.5 | ||||
Sale of warrants recognized | $ 104.1 | $ 102.4 | $ 361.8 | $ 173 | |
Amortization expense of warrants sold | 10.2 | 10.2 | 31.1 | 16 | |
Expenses on sale of warrants | $ 93.9 | $ 92.2 | $ 330.7 | $ 157 | |
Minimum | |||||
Class of Stock [Line Items] | |||||
Warrants exercise term | 3 years 6 months | ||||
Risk free rate | 0.93% | ||||
Maximum | |||||
Class of Stock [Line Items] | |||||
Warrants exercise term | 7 years 6 months | ||||
Risk free rate | 1.47% | ||||
Second Warrant Shares | |||||
Class of Stock [Line Items] | |||||
Shares purchased by warrants (in shares) | shares | 15,000,000 | ||||
Class A common stock | |||||
Class of Stock [Line Items] | |||||
Number of votes per share | vote | 1 | 1 | |||
Exercise price of warrants (in USD per share) | $ / shares | $ 100 | ||||
Class A common stock | First Warrant Shares | |||||
Class of Stock [Line Items] | |||||
Shares purchased by warrants (in shares) | shares | 7,000,000 | ||||
Exercise price of warrants (in USD per share) | $ / shares | $ 0.01 | ||||
Warrants exercise term | 7 years 6 months | ||||
Class B common stock | |||||
Class of Stock [Line Items] | |||||
Number of votes per share | vote | 15 | 15 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 25 Months Ended | ||||||
May 01, 2021 shares | Nov. 18, 2020 shares | Mar. 31, 2023 USD ($) shares | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) | Dec. 31, 2022 shares | Jun. 30, 2022 USD ($) shares | Jan. 14, 2021 vestingCondition | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum number of common stock available for issuance (in shares) | 91,572,543 | 91,572,543 | 84,314,979 | ||||||
Weighted-average fair value of employee options granted (in USD per share) | $ / shares | $ 10.92 | ||||||||
Right to purchase shares (in shares) | 1,991,427 | ||||||||
Stock-based compensation expense | $ | $ 106,789 | $ 98,387 | $ 348,372 | $ 280,113 | |||||
Class A common stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of common stock available for issuance (in shares) | 37,230,979 | 37,230,979 | 31,156,746 | ||||||
Returnly | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock issued in escrow, subject to forfeiture (in shares) | 304,364 | 15,521 | |||||||
Service period | 2 years | ||||||||
Common stock released from escrow account (in shares) | 45,459 | ||||||||
Common stock remitted back to company (in shares) | 243,384 | ||||||||
Incremental compensation cost | $ | $ 2,000 | ||||||||
Stock options, including early exercise of options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum number of common stock available for issuance (in shares) | 54,341,564 | 54,341,564 | 53,158,233 | ||||||
Vesting period | 4 years | ||||||||
Non-vested stock options, unrecognized compensation cost | $ | $ 50,200 | $ 50,200 | |||||||
Weighted-average compensation expense recognition period | 2 years 3 months 18 days | ||||||||
Equity exercise taxes payable | $ | 3,200 | $ 3,200 | $ 10,900 | ||||||
Stock options, including early exercise of options | Tranche One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting rights percentage | 25% | ||||||||
Stock options, including early exercise of options | Tranche Two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
Stock options, including early exercise of options | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiration period prior to IPO | 7 years | ||||||||
Expiration period | 3 months | ||||||||
Stock options, including early exercise of options | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiration period prior to IPO | 10 years | ||||||||
Expiration period | 10 years | ||||||||
Performance Based Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Non-vested stock options, unrecognized compensation cost | $ | $ 132,200 | $ 132,200 | |||||||
Weighted-average compensation expense recognition period | 2 years 9 months 18 days | ||||||||
Right to purchase shares (in shares) | 12,500,000 | ||||||||
Stock-based compensation expense | $ | $ 20,300 | $ 29,000 | $ 75,200 | $ 113,500 | |||||
Restricted stock units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted-average compensation expense recognition period | 1 year 9 months 18 days | ||||||||
Number of vesting conditions | vestingCondition | 2 | ||||||||
Non-vested RSUs, unrecognized compensation cost | $ | $ 574,300 | $ 574,300 | |||||||
Restricted stock units | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 1 year | ||||||||
Restricted stock units | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
2012 Stock Plan | Class A common stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum number of common stock available for issuance (in shares) | 146,209,197 | 146,209,197 | |||||||
2020 Employee Stock Purchase Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share purchase price discount percent | 85% | ||||||||
2020 Employee Stock Purchase Plan | Class A common stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of common stock available for issuance (in shares) | 11,300,000 | ||||||||
Number of common stock issued (in shares) | 649,580 |
Equity Incentive Plans - Stock
Equity Incentive Plans - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 9 Months Ended |
Dec. 31, 2022 $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | |
Number of Options | ||
Beginning balance (in shares) | shares | 19,310,706 | 19,310,706 |
Granted (in shares) | shares | 1,991,427 | |
Exercised (in shares) | shares | (726,425) | |
Forfeited, expired or cancelled (in shares) | shares | (993,984) | |
Ending balance (in shares) | shares | 19,581,724 | |
Vested and exercisable (in shares) | shares | 14,385,171 | |
Vested and exercisable, and expected to vest thereafter (in shares) | shares | 19,341,889 | |
Weighted Average Exercise Price | ||
Beginning balance (in USD per share) | $ / shares | $ 15.22 | $ 15.22 |
Granted (in USD per share) | $ / shares | 19.10 | |
Exercised (in USD per share) | $ / shares | 4.39 | |
Forfeited, expired or cancelled (in USD per share) | $ / shares | 37.14 | |
Ending balance (in USD per share) | $ / shares | 14.92 | |
Vested and exercisable (in USD per share) | $ / shares | 10.14 | |
Vested and exercisable, and expected to vest thereafter (in USD per share) | $ / shares | $ 14.66 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Remaining Contractual Term | 6 years 11 months 8 days | 6 years 3 months 7 days |
Weighted Average Remaining Contractual Term, Vested and exercisable | 5 years 7 months 9 days | |
Weighted Average Remaining Contractual Term, Vested and exercisable, and expected to vest | 6 years 3 months | |
Aggregate Intrinsic Value, Vested and exercisable | $ | $ 62,657 | |
Aggregate Intrinsic Value, Vested and exercisable, and expected to vest | $ | $ 64,261 |
Equity Incentive Plans - RSU Ac
Equity Incentive Plans - RSU Activity (Details) - Restricted stock units | 9 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Shares | |
Beginning balance, Non-vested (in shares) | shares | 21,387,592 |
Granted (in shares) | shares | 15,977,301 |
Vested (in shares) | shares | (10,118,647) |
Forfeited, expired or cancelled (in shares) | shares | (4,911,072) |
Ending balance, Non-vested (in shares) | shares | 22,335,174 |
Weighted Average Grant Date Fair Value | |
Beginning balance, Non-vested (in USD per share) | $ / shares | $ 38.41 |
Granted (in USD per share) | $ / shares | 23.18 |
Vested (in USD per share) | $ / shares | 34.01 |
Forfeited, expired or cancelled (in USD per share) | $ / shares | 37.43 |
Ending balance, Non-vested (in USD per share) | $ / shares | $ 29.72 |
Equity Incentive Plans - Compon
Equity Incentive Plans - Components and Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation in operating expenses | $ 106,789 | $ 98,387 | $ 348,372 | $ 280,113 |
Capitalized into property, equipment and software, net | 19,113 | 14,618 | 62,760 | 39,691 |
Total stock-based compensation expense | 125,902 | 113,005 | 411,132 | 319,804 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation in operating expenses | 54,789 | 58,100 | 188,788 | 187,789 |
Technology and data analytics | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation in operating expenses | 45,040 | 33,639 | 137,002 | 75,133 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation in operating expenses | 5,840 | 5,998 | 19,517 | 15,655 |
Processing and servicing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation in operating expenses | $ 1,120 | $ 650 | $ 3,065 | $ 1,536 |
Restructuring charges, net - Ad
Restructuring charges, net - Additional Details (Details) - Office Closure - employee | 3 Months Ended | |
Feb. 08, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Number of positions eliminated | 500 | |
Number of positions eliminated, percent | 19% |
Restructuring charges, net - Sc
Restructuring charges, net - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, net | $ 34,934 | $ 0 | $ 34,934 | $ 0 | |
Right-of-use assets | 34,054 | 34,054 | $ 50,671 | ||
Office Closure | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee severance pay and related costs | 28,753 | 28,753 | |||
Business Exit Costs | 6,181 | 6,181 | |||
Restructuring charges, net | 34,934 | 34,934 | |||
Right-of-use assets | $ 5,200 | $ 5,200 |
Restructuring charges, net - _2
Restructuring charges, net - Schedule of Restructuring Accrual Activity (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning accrued restructuring costs | $ 0 |
Restructuring Charges | 26,297 |
Cash paid | (25,642) |
Adjustment | 2,548 |
Foreign currency translation and other adjustments | (5) |
Ending accrued restructuring costs | $ 3,198 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ (836) | $ 259 | $ (2,584) | $ 706 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common Stockholders - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||||||||
Net Loss | $ (205,677) | $ (322,437) | $ (251,269) | $ (54,671) | $ (159,735) | $ (306,615) | $ (779,383) | $ (521,021) |
Denominator: | ||||||||
Basic weighted average common shares outstanding (in shares) | 297,204,715 | 285,641,820 | 293,915,268 | 279,570,015 | ||||
Diluted weighted average common shares outstanding (in shares) | 297,204,715 | 285,641,820 | 293,915,268 | 279,570,015 | ||||
Net loss per share: | ||||||||
Basic (in USD per share) | $ (0.69) | $ (0.19) | $ (2.65) | $ (1.86) | ||||
Diluted (in USD per share) | $ (0.69) | $ (0.19) | $ (2.65) | $ (1.86) | ||||
Class A common stock | ||||||||
Numerator: | ||||||||
Net Loss | $ (164,093) | $ (43,061) | $ (620,015) | $ (389,424) | ||||
Net Loss Attributable to Common Stockholders | $ (164,093) | $ (43,061) | $ (620,015) | |||||
Denominator: | ||||||||
Basic weighted average common shares outstanding (in shares) | 237,116,053 | 224,980,598 | 233,815,676 | 208,957,734 | ||||
Diluted weighted average common shares outstanding (in shares) | 237,116,053 | 224,980,598 | 233,815,676 | 208,957,734 | ||||
Net loss per share: | ||||||||
Basic (in USD per share) | $ (0.69) | $ (0.19) | $ (2.65) | $ (1.86) | ||||
Diluted (in USD per share) | $ (0.69) | $ (0.19) | $ (2.65) | $ (1.86) | ||||
Class B common stock | ||||||||
Numerator: | ||||||||
Net Loss | $ (41,584) | $ (11,610) | $ (159,368) | $ (131,597) | ||||
Net Loss Attributable to Common Stockholders | $ (41,584) | $ (11,610) | $ (159,368) | |||||
Denominator: | ||||||||
Basic weighted average common shares outstanding (in shares) | 60,088,662 | 60,661,222 | 60,099,592 | 70,612,281 | ||||
Diluted weighted average common shares outstanding (in shares) | 60,088,662 | 60,661,222 | 60,099,592 | 70,612,281 | ||||
Net loss per share: | ||||||||
Basic (in USD per share) | $ (0.69) | $ (0.19) | $ (2.65) | $ (1.86) | ||||
Diluted (in USD per share) | $ (0.69) | $ (0.19) | $ (2.65) | $ (1.86) |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common Stockholders - Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares) | 48,593,786 | 39,617,982 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares) | 22,335,174 | 16,351,621 |
Stock options, including early exercise of options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares) | 19,581,724 | 17,195,165 |
Common stock warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares) | 6,036,813 | 5,909,896 |
Employee stock purchase plan shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares) | 640,075 | 161,300 |