Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 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 | 960-1518 | |
Title of 12(b) Security | Class A common stock, par value $0.00001 per share | |
Trading Symbol | AFRM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --06-30 | |
Entity Central Index Key | 0001820953 | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 242,120,237 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 59,613,337 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Assets | ||
Cash and cash equivalents | $ 1,079,261 | $ 892,027 |
Restricted cash | 409,231 | 367,917 |
Securities available for sale at fair value | 1,021,630 | 1,174,653 |
Loans held for sale | 145 | 76 |
Loans held for investment | 4,549,422 | 4,402,962 |
Allowance for credit losses | (232,068) | (204,531) |
Loans held for investment, net | 4,317,354 | 4,198,431 |
Accounts receivable, net | 236,234 | 199,085 |
Property, equipment and software, net | 338,749 | 290,135 |
Goodwill | 536,418 | 542,571 |
Intangible assets | 19,828 | 34,434 |
Commercial agreement assets | 156,115 | 177,672 |
Other assets | 292,184 | 278,614 |
Total assets | 8,407,149 | 8,155,615 |
Liabilities: | ||
Accounts payable | 27,345 | 28,602 |
Payable to third-party loan owners | 109,498 | 53,852 |
Accrued interest payable | 19,589 | 13,498 |
Accrued expenses and other liabilities | 160,328 | 180,883 |
Convertible senior notes, net | 1,415,080 | 1,414,208 |
Notes issued by securitization trusts | 2,398,758 | 2,165,577 |
Funding debt | 1,709,751 | 1,764,812 |
Total Liabilities | 5,840,349 | 5,621,432 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Additional paid in capital | 5,355,032 | 5,140,850 |
Accumulated deficit | (2,763,030) | (2,591,247) |
Accumulated other comprehensive loss | (25,205) | (15,423) |
Total stockholders’ equity | 2,566,800 | 2,534,183 |
Total liabilities and stockholders’ equity | 8,407,149 | 8,155,615 |
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 | Sep. 30, 2023 | Jun. 30, 2023 |
Assets of consolidated VIEs, included in total assets above | ||
Restricted cash | $ 409,231 | $ 367,917 |
Loans held for investment | 4,549,422 | 4,402,962 |
Allowance for credit losses | (232,068) | (204,531) |
Loans held for investment, net | 4,317,354 | 4,198,431 |
Accounts receivable, net | 236,234 | 199,085 |
Other assets | 292,184 | 278,614 |
Total assets | 8,407,149 | 8,155,615 |
Liabilities of consolidated VIEs, included in total liabilities above | ||
Accounts payable | 27,345 | 28,602 |
Accrued interest payable | 19,589 | 13,498 |
Accrued expenses and other liabilities | 160,328 | 180,883 |
Notes issued by securitization trusts | 2,398,758 | 2,165,577 |
Funding debt | 1,709,751 | 1,764,812 |
Total Liabilities | 5,840,349 | 5,621,432 |
Consolidated Variable Interest Entities | ||
Assets of consolidated VIEs, included in total assets above | ||
Restricted cash | 216,243 | 203,872 |
Loans held for investment | 4,335,514 | 4,151,606 |
Allowance for credit losses | (198,932) | (178,252) |
Loans held for investment, net | 4,136,582 | 3,973,354 |
Accounts receivable, net | 2,958 | 8,196 |
Other assets | 16,499 | 18,210 |
Total assets | 4,372,282 | 4,203,632 |
Liabilities of consolidated VIEs, included in total liabilities above | ||
Accounts payable | 2,845 | 2,894 |
Accrued interest payable | 19,588 | 13,498 |
Accrued expenses and other liabilities | 19,587 | 17,825 |
Notes issued by securitization trusts | 2,398,758 | 2,165,577 |
Funding debt | 1,648,297 | 1,656,400 |
Total Liabilities | 4,089,075 | 3,856,194 |
Total net assets of consolidated VIEs | $ 283,207 | $ 347,438 |
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) | 241,468,132 | 237,230,381 |
Common stock, outstanding (in shares) | 241,468,132 | 237,230,381 |
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) | 59,613,755 | 59,615,836 |
Common stock, outstanding (in shares) | 59,613,755 | 59,615,836 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | ||
Revenue | $ 179,426 | $ 139,857 |
Interest income | 262,679 | 136,802 |
Gain on sales of loans | 34,285 | 63,595 |
Servicing income | 20,157 | 21,370 |
Total revenue, net | 496,547 | 361,624 |
Operating expenses | ||
Loss on loan purchase commitment | 34,866 | 35,610 |
Provision for credit losses | 99,696 | 64,250 |
Funding costs | 73,931 | 25,066 |
Processing and servicing | 75,671 | 54,359 |
Technology and data analytics | 132,965 | 144,961 |
Sales and marketing | 146,866 | 163,873 |
General and administrative | 140,334 | 160,972 |
Restructuring and other | 1,665 | 0 |
Total operating expenses | 705,994 | 649,091 |
Operating loss | (209,447) | (287,467) |
Other income, net | 38,707 | 36,018 |
Loss before income taxes | (170,740) | (251,449) |
Income tax (benefit) expense | 1,043 | (180) |
Net loss | (171,783) | (251,269) |
Other comprehensive loss | ||
Foreign currency translation adjustments | (11,898) | (21,546) |
Unrealized gain (loss) on securities available for sale, net | 1,353 | (5,528) |
Gain on cash flow hedges | 763 | 0 |
Net other comprehensive loss | (9,782) | (27,074) |
Comprehensive loss | $ (181,565) | $ (278,343) |
Net loss per share attributable to common stockholders for Class A and Class B | ||
Basic (in USD per share) | $ (0.57) | $ (0.86) |
Diluted (in USD per share) | $ (0.57) | $ (0.86) |
Weighted average common shares outstanding | ||
Basic (in shares) | 303,839,670 | 290,929,270 |
Diluted (in shares) | 303,839,670 | 290,929,270 |
Merchant network revenue | ||
Revenue | ||
Revenue | $ 145,950 | $ 113,149 |
Card network revenue | ||
Revenue | ||
Revenue | $ 33,476 | $ 26,708 |
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 (Loss) |
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 options (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, 2023 | 296,846,217 | ||||
Beginning balance at Jun. 30, 2023 | $ 2,534,183 | $ 3 | 5,140,850 | (2,591,247) | (15,423) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 496,213 | 495,350 | |||
Issuance of common stock upon exercise of stock options | $ 3,625 | 3,625 | |||
Vesting of restricted stock units (in shares) | 3,740,320 | ||||
Vesting of warrants for common stock | 95,910 | 95,910 | |||
Stock-based compensation | 151,162 | 151,162 | |||
Tax withholding on stock-based compensation | (36,515) | (36,515) | |||
Foreign currency translation adjustments | (11,898) | (11,898) | |||
Unrealized loss on securities available for sale | 1,353 | 1,353 | |||
Gain on cash flow hedges | 763 | 763 | |||
Net loss | (171,783) | (171,783) | |||
Ending balance, Common Stock (in shares) at Sep. 30, 2023 | 301,081,887 | ||||
Ending balance at Sep. 30, 2023 | $ 2,566,800 | $ 3 | $ 5,355,032 | $ (2,763,030) | $ (25,205) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (171,783,000) | $ (251,269,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for credit losses | 99,696,000 | 64,250,000 |
Amortization of premiums and discounts on loans, net | (41,138,000) | (34,595,000) |
Gain on sales of loans | (34,285,000) | (63,595,000) |
Changes in fair value of assets and liabilities | (4,110,000) | 3,906,000 |
Amortization of commercial agreement assets | 21,557,000 | 21,557,000 |
Amortization of debt issuance costs | 5,534,000 | 1,076,000 |
Amortization of discount on securities available for sale | (12,120,000) | (7,620,000) |
Commercial agreement warrant expense | 95,910,000 | 108,743,000 |
Stock-based compensation | 112,359,000 | 119,808,000 |
Depreciation and amortization | 40,131,000 | 20,882,000 |
Impairment of right of use assets | 752,000 | 0 |
Other | (4,730,000) | 2,053,000 |
Change in operating assets and liabilities: | ||
Purchases of loans held for sale | (1,222,224,000) | (1,655,213,000) |
Proceeds from the sale of loans held for sale | 1,228,110,000 | 1,707,838,000 |
Accounts receivable, net | (42,208,000) | (6,649,000) |
Other assets | (12,566,000) | (3,000,000) |
Accounts payable | (1,257,000) | 1,462,000 |
Payable to third-party loan owners | 55,646,000 | 19,428,000 |
Accrued interest payable | 6,264,000 | (1,078,000) |
Accrued expenses and other liabilities | (20,636,000) | 3,231,000 |
Net cash provided by operating activities | 98,902,000 | 51,215,000 |
Cash flows from investing activities | ||
Purchases and origination of loans held for investment | (4,229,667,000) | (2,744,825,000) |
Proceeds from the sale of loans held for investment | 899,238,000 | 326,713,000 |
Principal repayments and other loan servicing activity | 3,184,851,000 | 2,206,725,000 |
Additions to property, equipment and software | (35,817,000) | (31,151,000) |
Purchases of securities available for sale | (96,813,000) | (104,629,000) |
Proceeds from maturities and repayments of securities available for sale | 262,293,000 | 464,492,000 |
Other investing cash inflows/(outflows) | 56,000 | (52,000) |
Net cash provided by (used in) investing activities | (15,859,000) | 117,273,000 |
Cash flows from financing activities | ||
Proceeds from funding debt | 2,896,251,000 | 1,193,761,000 |
Payment of debt issuance costs | (10,490,000) | (7,423,000) |
Principal repayments of funding debt | (2,938,674,000) | (1,059,607,000) |
Proceeds from issuance of notes and residual trust certificates by securitization trusts | 750,000,000 | 249,931,000 |
Principal repayments of notes issued by securitization trusts | (515,377,000) | (150,713,000) |
Proceeds from exercise of common stock options and warrants and contributions to ESPP | 3,611,000 | 1,013,000 |
Repurchases of common stock | 0 | (109,000) |
Payments of tax withholding for stock-based compensation | (36,515,000) | (27,311,000) |
Net cash provided by financing activities | 148,806,000 | 199,542,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,301,000) | (5,299,000) |
Net increase in cash, cash equivalents and restricted cash | 228,548,000 | 362,731,000 |
Cash, cash equivalents and restricted cash, beginning of period | 1,259,944,000 | 1,550,807,000 |
Cash, cash equivalents and restricted cash, end of period | 1,488,492,000 | 1,913,538,000 |
Reconciliation to amounts on consolidated balance sheets (as of period end) | ||
Cash and cash equivalents | 1,079,261,000 | 1,530,132,000 |
Restricted cash | 409,231,000 | 383,406,000 |
Total cash, cash equivalents and restricted cash | 1,488,492,000 | 1,913,538,000 |
Supplemental disclosures of cash flow information | ||
Cash payments for interest expense | 64,868,000 | 22,819,000 |
Cash paid for operating leases | 4,104,000 | 4,167,000 |
Cash paid for income taxes | 312,000 | 138,000 |
Supplemental disclosures of non-cash investing and financing activities | ||
Stock-based compensation included in capitalized internal-use software | $ 38,803,000 | $ 21,204,000 |
Business Description
Business Description | 3 Months Ended |
Sep. 30, 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 up to sixty months. When a consumer applies for a loan through our platform, the loan is underwritten using our proprietary risk model, and once approved, the consumer selects their preferred repayment option. Loans are directly originated or funded and issued by our originating bank partners. 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 | 3 Months Ended |
Sep. 30, 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, 2023. The balance sheet as of June 30, 2023 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 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 self-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 historical experience, current events, and other factors we believe to be reasonable under the circumstances. To the extent that there are material differences between these estimates and actual results, our financial condition or operating results will be materially 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 |
Revenue
Revenue | 3 Months Ended |
Sep. 30, 2023 | |
Banking and Thrift, Interest [Abstract] | |
Revenue | Revenue The following table presents our revenue disaggregated by revenue source (in thousands): Three Months Ended September 30, 2023 2022 Merchant network revenue $ 145,950 $ 113,149 Card network revenue 33,476 26,708 Interest income 262,679 136,802 Gain on sales of loans 34,285 63,595 Servicing income 20,157 21,370 Total revenue, net $ 496,547 $ 361,624 Merchant Network Revenue — Revenue from Contracts with Customers Merchant network revenue consists of merchant fees. 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. Our contracts with merchants are defined at the transaction level and do not extend beyond the service already provided (i.e., each transaction represents a separate contract). The fees collected from merchants for each transaction are determined as a percentage of the value of the goods purchased by the consumer from merchants and consider a number of factors including the end consumer’s credit risk and financing term. We do not have any capitalized contract costs, and do not carry any material contract balances. Our service comprises a single performance obligation to merchants to facilitate transactions with consumers. From time to time, we offer merchants incentives to promote our platform to their customers, such as fee reductions or rebates. These amounts are recorded as a reduction to merchant network revenue. 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 on loan origination, which we record as a reduction to network revenue. In certain cases, the losses incurred on loans originated for a merchant may exceed the total network revenue earned on those loans. 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 months ended September 30, 2023 and 2022, there were no merchants that exceeded 10% of total revenue. Card Network Revenue — Revenue from Contracts with Customers We have agreements with card-issuing partners to facilitate the issuance of physical and virtual debit cards to be used by consumers at checkout. Consumers can apply at Affirm.com or via the Affirm app and, upon approval, receive a single-use virtual card to use digitally online or in-store. The card is funded at the time a transaction is authorized using cash held by the card-issuing partner in a reserve fund. Eligible consumers can also use the Affirm Card, a debit card issued by a card-issuing partner to pay in full, debited from their bank account, or pay later, by using a unique post-purchase feature that allows them to instantly convert any eligible debit transaction into an installment loan. Where applicable, our originating bank partner, or wholly-owned subsidiaries, then originates a loan to the consumer after the transaction is confirmed by the merchant. The merchant is charged interchange fees for each successful debit card transaction, and a portion of this revenue is shared with us by our card-issuing partners. Merchants may also elect to utilize our agreement with card-issuing partners as a means of integrating Affirm services. Similarly, for these arrangements with integrated merchants, the merchant is charged interchange fees for each successful debit card transaction and a portion of this revenue is shared with us. From time to time, we offer certain integrated merchants promotional incentives to promote our platform to their customers, such as rebates of interchange fees incurred by the merchant. These amounts are recorded as a reduction of card network revenue. Our contracts with our card-issuing partners are defined at the transaction level and do not extend beyond the service already provided. The revenue collected from card-issuing partners for each transaction are determined as a percentage of the interchange fees charged on transactions facilitated on the payment processor network, and revenue is recognized at the point in time the transaction is completed successfully. The amounts collected are presented in revenue, net of associated transaction-related processing fees paid to our card-issuing partners. We have concluded that the revenue collected does not give rise to a future material right because the pricing of each transaction does not depend on the volume of prior successful transactions. We do not have any capitalized contract costs, and do not carry any material contract balances. Our service comprises a single performance obligation to the card-issuing partner to facilitate transactions with consumers. A portion of card network revenue relates to incentive payments from card network partners, which we are eligible to receive for reaching certain cumulative volume targets on program cards issued by the issuer processors. We earn incentive revenue as a percentage of each associated transaction and estimate the applicable percentage based on observed cumulative volume on program cards. Revenue is recognized at the point in time when the performance obligation has been fulfilled, which is when the transaction is completed successfully. Interest Income Interest income consisted of the following components (in thousands): Three Months Ended September 30, 2023 2022 Contractual interest income on unpaid principal balance $ 226,158 $ 106,138 Amortization of discount on loans 45,118 38,969 Amortization of premiums on loans (3,980) (4,374) Interest receivable charged-off, net of recoveries (4,617) (3,931) Total interest income $ 262,679 $ 136,802 We accrue interest income using the effective interest method, which includes the amortization of any discounts or premiums on loan receivables created upon the purchase of a loan from our originating bank partners or upon the origination of a loan. 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 September 30, 2023 and June 30, 2023, the balance of loans held for investment on non-accrual status was $1.2 million and $1.8 million, respectively. The account is charged-off in the period if the account becomes 120 days past due or meets other charge-off policy requirements. Past due status is based on the contractual terms of the loans. Previously recognized interest receivable from charged-off loans that is accrued but not collected from the consumer is reversed. 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. The servicing fee is calculated on a daily basis by multiplying a set fee percentage (as outlined in the executed agreements with third-party loan owners) by the outstanding loan principal balance. 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 | 3 Months Ended |
Sep. 30, 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): September 30, 2023 June 30, 2023 Unpaid principal balance $ 4,585,570 $ 4,451,324 Accrued interest receivable 46,886 41,079 Premiums on loans held for investment 6,828 7,135 Less: Discount due to loss on loan purchase commitment (49,805) (51,190) Less: Discount due to loss on directly originated loans (40,025) (45,145) Less: Fair value adjustment on loans acquired through business combination (32) (241) Total loans held for investment $ 4,549,422 $ 4,402,962 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 $4.6 billion and $3.5 billion during the three months ended September 30, 2023 and 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 September 30, 2023: September 30, 2023 Amortized Costs Basis by Fiscal Year of Origination 2024 2023 2022 2021 2020 Prior Total 96+ $ 1,293,647 $ 1,393,864 $ 28,287 $ 8,601 $ 26 $ 10 $ 2,724,435 94 – 96 565,028 614,611 3,550 211 15 8 1,183,422 90 – 94 96,511 65,347 1,562 18 2 4 163,444 <90 12,675 2,300 1,032 4 2 — 16,013 No score (1) 133,271 232,740 41,876 6,721 254 215 415,077 Total amortized cost basis $ 2,101,132 $ 2,308,862 $ 76,307 $ 15,555 $ 299 $ 237 $ 4,502,391 (1) This balance represents loan receivables in 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 three months ended (in thousands) as of September 30, 2023: September 30, 2023 Net Charge-offs by Fiscal Year of Origination 2024 2023 2022 2021 2020 Prior Total Current period charge-offs (1,329) (65,283) (3,916) (234) (46) (34) (70,842) Current period recoveries 17 2,830 2,399 275 5 27 5,552 Current period net charge-offs (1,312) (62,453) (1,517) 41 (41) (7) (65,290) 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, 2023: June 30, 2023 Amortized Costs Basis by Fiscal Year of Origination 2023 2022 2021 2020 2019 Prior Total 96+ $ 2,628,060 $ 39,428 $ 18,910 $ 3,439 $ 9 $ 1 $ 2,689,847 94 – 96 1,104,553 7,755 439 77 6 2 1,112,832 90 – 94 133,940 3,116 26 2 4 — 137,088 <90 13,363 1,623 4 2 — — 14,992 No score (1) 335,690 59,204 11,562 489 252 9 407,206 Total amortized cost basis $ 4,215,606 $ 111,126 $ 30,941 $ 4,009 $ 271 $ 12 $ 4,361,965 (1) This balance represents loan receivables in 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 September 30, 2023 June 30, 2023 Non-delinquent loans $ 4,270,534 $ 4,183,248 4 – 29 calendar days past due 120,564 92,876 30 – 59 calendar days past due 46,927 36,399 60 – 89 calendar days past due 34,279 28,171 90 – 119 calendar days past due (1) 30,087 21,271 Total amortized cost basis $ 4,502,391 $ 4,361,965 (1) Includes $29.7 million and $20.9 million of loan receivables as of September 30, 2023 and June 30, 2023, 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 2023 2022 Balance at beginning of period $ 204,531 $ 155,392 Provision for loan losses 92,827 61,869 Charge-offs (70,842) (71,036) Recoveries of charged-off receivables 5,552 6,800 Balance at end of period $ 232,068 $ 153,025 Loan Modifications for Borrowers Experiencing Financial Difficulty We have a loan modification program for eligible borrowers facing financial difficulty if they have at least one outstanding loan with Affirm and certain other eligibility criteria are met. We consider a borrower to be experiencing financial difficulty when a loan is between 30 and 120 days past due at the time of modification. The objective of the loan modification program is to offer borrowers assistance during times of financial stress, increase recovery rates, and minimize losses. We have two primary loan modification strategies: payment deferrals and loan re-amortization. A payment deferral provides the borrower relief by extending the due date for the next payment due. While a borrower may obtain more than one deferral, the total deferral period may not exceed three months. A loan re-amortization provides the borrower relief by lowering monthly payments through extending the term length of the loan. The total interest due from the consumer will not exceed the initial total interest due prior to modification. A loan may not be re-amortized more than once. The following table presents the amortized cost basis of loans excluding accrued interest receivable that were modified for borrowers experiencing financial difficulty during the three months ended September 30, 2023, by type of modification (in thousands): Three Months Ended September 30, 2023 Payment Deferral Loan Total % of Total Loan Receivables Outstanding Loans receivables 2,801 152 2,953 0.07 % With respect to borrowers who received payment deferrals during the three months ended September 30, 2023, the length of each deferral period was one month. With respect to borrowers who received loan re-amortization during the three months ended September 30, 2023, the payment amount was reduced by half and the term of the loan was extended between two We closely monitor the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. We hold an allowance for credit losses for modified loans classified as held for investment. Our allowance estimate considers whether a loan has been modified due to a borrower experiencing financial difficulty and the increased likelihood that such loan may become delinquent or charge-off in the future. The following table presents the delinquency status as of September 30, 2023 (in thousands), by amortized cost basis excluding accrued interest receivable, of loan receivables that have been modified within the last 12 months where the borrower was experiencing financial difficulty at the time of modification: September 30, 2023 Payment Deferral Loan Re-amortization Total Non-delinquent loans $ 4,515 $ 268 $ 4,783 4 – 29 calendar days past due 1,304 112 1,416 30 – 59 calendar days past due 139 65 204 60 – 89 calendar days past due 75 6 81 90 – 119 calendar days past due 65 2 67 Total amortized cost basis $ 6,098 $ 453 $ 6,551 |
Acquisitions
Acquisitions | 3 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions There were no acquisitions accounted for as business combinations completed in the three months ended September 30, 2023 and 2022. Acquisitions completed during the year ended June 30, 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. There were no transaction costs associated with the acquisition for the three months ended September 30, 2023. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Sep. 30, 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. For each of these groups, 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. Our allowance for credit losses with respect to accounts receivable was $11.0 million and $12.9 million as of September 30, 2023 and June 30, 2023, respectively. Property, Equipment and Software, net Property, equipment and software, net consisted of the following (in thousands): September 30, 2023 June 30, 2023 Internally developed software $ 443,992 $ 377,301 Leasehold improvements 20,279 20,214 Computer equipment 10,252 10,187 Furniture and equipment 6,586 6,503 Total property, equipment and software, at cost $ 481,109 $ 414,205 Less: Accumulated depreciation and amortization (142,360) (124,070) Total property, equipment and software, net $ 338,749 $ 290,135 Depreciation and amortization expense on property, equipment and software was $26.0 million and $13.5 million for the three months ended September 30, 2023 and 2022, respectively. No impairment losses related to property, equipment and software were recorded during the three months ended September 30, 2023 and 2022. Goodwill and Intangible Assets The changes in the carrying amount of goodwill during the three months ended September 30, 2023 were as follows (in thousands): Balance as of June 30, 2023 $ 542,571 Adjustments (1) (6,152) Balance as of September 30, 2023 $ 536,418 (1) Adjustments to goodwill during the three months ended September 30, 2023 primarily pertained to foreign currency translation adjustments. No impairment losses related to goodwill were recorded during the three months ended September 30, 2023 and 2022. Intangible assets consisted of the following (in thousands): September 30, 2023 Gross Accumulated Amortization Net Weighted Average Remaining Useful Life Merchant relationships $ 37,914 $ (35,129) $ 2,786 0.3 Developed technology 39,488 (34,935) 4,553 0.4 Assembled workforce 12,490 (12,079) 410 0.1 Trademarks and domains, definite 1,458 (1,027) 431 1.5 Trademarks, licenses and domains, indefinite 11,298 — 11,298 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 102,998 $ (83,170) $ 19,828 June 30, 2023 Gross Accumulated Amortization Net Weighted Average Merchant relationships $ 38,129 $ (27,637) $ 10,492 0.6 Developed technology 39,626 (30,653) 8,973 0.6 Assembled workforce 12,490 (9,983) 2,507 0.3 Trademarks and domains, definite 1,481 (990) 491 1.7 Trademarks, licenses and domains, indefinite 11,621 — 11,621 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 103,697 $ (69,263) $ 34,434 Amortization expense for intangible assets was $14.2 million and $7.4 million for the three months ended September 30, 2023 and 2022, respectively. No impairment losses related to intangible assets were recorded during the three months ended September 30, 2023 and 2022. The expected future amortization expense of these intangible assets as of September 30, 2023 is as follows (in thousands): 2024 (remaining nine months) $ 6,646 2025 1,365 2026 155 2027 15 2028 and thereafter — Total amortization expense $ 8,180 Commercial Agreement Assets In November 2021, 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 three 2022 , we recognized amortization expense of $10.4 million for both periods in our interim condensed consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. Refer to Note 14. Stockholders’ Equity for further discussion of the warrants. In July 2020, 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 September 30, 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 months ended September 30, 2023 and 2022 , we recorded amortization expense related to the commercial agreement asset of $9.0 million for both periods in our interim condensed consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. In January 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 months ended September 30, 2023 and 2022 , we recorded amortization expense related to the asset of $2.1 million for both periods 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): September 30, 2023 June 30, 2023 Processing reserves $ 65,421 $ 60,039 Equity securities, at cost 51,870 43,172 Derivative instruments 41,216 50,545 Operating lease right-of-use assets 27,227 30,171 Prepaid payroll taxes for stock-based compensation 29,508 14,336 Prepaid expenses 25,544 35,626 Other assets 51,398 44,725 Total other assets $ 292,184 $ 278,614 Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands) September 30, 2023 June 30, 2023 Operating lease liability $ 49,071 $ 52,557 Accrued expenses 42,173 50,704 Collateral held for derivative instruments 41,401 53,267 Other liabilities 27,683 24,355 Total accrued expenses and other liabilities $ 160,328 $ 180,883 |
Leases
Leases | 3 Months Ended |
Sep. 30, 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 September 30, 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 seven 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 $8.9 million and $9.7 million as of September 30, 2023 and June 30, 2023, respectively. During the three months ended September 30, 2023, we decided to sublease a portion of our leased office space in San Francisco. As a result, we recorded a lease impairment charge of $0.8 million related to several of our operating lease ROU assets, included in general and administrative expense on our interim consolidated statements of operations and comprehensive loss. There was no impairment expense incurred related to leases during the three months ended September 30, 2022. Operating lease expense is as follows (in thousands): Three Months Ended September 30, 2023 2022 Operating lease expense (1) $2,986 $3,800 (1) Lease expenses for our short-term leases were immaterial for the periods presented. We have subleased a portion of our leased facilities. Sublease income totaled $0.9 million during the three months ended September 30, 2023 and 2022. Lease term and discount rate information are summarized as follows: September 30, 2023 Weighted average remaining lease term (in years) 3.7 Weighted average discount rate 4.8% As of September 30, 2023, future minimum lease payments are as follows (in thousands): 2024 (remaining nine months) $ 12,380 2025 16,317 2026 15,371 2027 2,680 2028 2,185 Thereafter 5,503 Total lease payments 54,436 Less imputed interest (5,365) Present value of total lease liabilities $ 49,071 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 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 representations and warranties is identified. Generally, a breach in representations and warranties could 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 September 30, 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. 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 (the “Quiroga 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 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. Jeffries v. Levchin, et al. On May 24, 2023, plaintiff Sabrina Jeffries 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 and Quiroga actions. The Jeffries complaint purports to assert claims on Affirm's behalf for breach of fiduciary duties, making false statements under federal securities law, unjust enrichment, waste of corporate assets, and aiding and abetting breach of fiduciary duties, and seeks unspecified damages, equitable relief, and fees and costs. On August 15, 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. Vallieres v. Levchin, et al. On September 14, 2023, plaintiff Michael Vallieres filed a shareholder derivative lawsuit in the U.S. District Court for the District of Delaware 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, Quiroga, and Jeffries actions. The Vallieres complaint purports to assert claims on Affirm's behalf for breach of fiduciary duties, gross management, abuse of control, unjust enrichment, and contribution, and seeks unspecified damages, equitable relief, and fees and costs. 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 September 30, 2023 were not material. The ultimate outcome of legal proceedings involves judgments, estimates and inherent uncertainties, and cannot be predicted with certainty. |
Debt
Debt | 3 Months Ended |
Sep. 30, 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): September 30, 2023 2024 $ 183,530 2025 390,881 2026 633,452 2027 — 2028 26,660 Thereafter 490,488 Total $ 1,725,011 Deferred debt issuance costs (15,260) Total funding debt, net of deferred debt issuance costs $ 1,709,751 Secured Borrowing Facilities U.S. Through trusts, we entered into warehouse credit facilities with certain lenders to finance the purchase and origination of our loans. Each trust entered into a credit agreement and security agreement with a third-party as administrative agent and a national banking association as collateral trustee and paying agent. 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 86% of the total collateralized balance. These warehouse credit facility trusts, which have been classified as VIEs, are bankruptcy-remote special-purpose vehicles in which creditors do not have recourse against the general credit of Affirm. These revolving facilities mature between fiscal years 2024 and 2031 and generally permit borrowings up to 12 months prior to the final maturity date of each respective facility. As of September 30, 2023, the aggregate commitment amount of these facilities was $4.0 billion on a revolving basis, of which $1.4 billion was drawn, with $2.6 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 $1.6 billion and $1.7 billion as of September 30, 2023 and June 30, 2023, respectively. Borrowings under these warehouse credit facilities bear interest at an annual benchmark rate of Secured Overnight Financing Rate (“SOFR”) 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 1.75% to 2.20%. Interest is payable monthly. 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 September 30, 2023, we were in compliance with all applicable covenants in the agreements. International Additionally, we have various credit facilities utilized to finance the origination of loan receivables in Canada. Similar to our warehouse credit facilities, borrowings under these agreements are referred to as funding debt, and proceeds from the borrowings may only be used for the purposes of facilitating loan funding and origination. These facilities are secured by Canadian loan receivables pledged to the respective facility as collateral, mature between fiscal years 2025 and 2029, and bear interest based on benchmark rates plus a spread ranging from 1.25% to 4.25%. As of September 30, 2023, the aggregate commitment amount of these facilities was $505.5 million on a revolving basis, of which $360.4 million was drawn, with $145.1 million remaining available. The unpaid principal balance of loans pledged to these facilities totaled $429.0 million and $412.8 million as of September 30, 2023 and June 30, 2023, respectively. These agreements contain certain customary negative covenants and financial covenants including maintaining certain levels of minimum liquidity, maximum leverage, and minimum tangible net worth at the Affirm Canada subsidiary level or the Affirm Holdings level. As of September 30, 2023, we were in compliance with all applicable covenants in the agreements. Sales and 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 one or more repurchase date extensions, each for an additional three-month term at market interest rates on such extension date. As of September 30, 2023, the interest rates were 7.52% for both the senior pledged securities and the residual certificate pledged securities. We had $5.9 million and $11.0 million in debt outstanding under our repurchase agreements disclosed within funding debt on the interim condensed consolidated balance sheets as of September 30, 2023 and June 30, 2023, respectively. The debt will be amortized through regular principal and interest payments on the pledged securities. The outstanding debt relates to $14.0 million and $18.9 million in pledged securities disclosed within securities available for sale at fair value on the interim condensed consolidated balance sheets as of September 30, 2023 and June 30, 2023, 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 our 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. On June 7, 2023, the Board of Directors authorized the repurchase of up to $800 million in aggregate principal amount of the 2026 Notes. Note repurchases may be made from time to time through December 31, 2023 in privately negotiated transactions. Repurchases are subject to available liquidity, general market and economic conditions, alternate uses for the capital, and other factors, and there is no minimum principal amount of 2026 Notes that the Company is obligated to repurchase. We have not executed any repurchases under this authorization to date. The convertible senior notes outstanding as of September 30, 2023 consisted of the following (in thousands): Principal Amount Unamortized Discount and Issuance Cost Net Carrying Amount Convertible senior notes $ 1,425,900 $ (10,820) $ 1,415,080 The 2026 Notes do not bear interest. We recognized $0.9 million and $1.1 million during the three months ended September 30, 2023 and 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 September 30, 2023. |
Securitization and Variable Int
Securitization and Variable Interest Entities | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Securitization and Variable Interest Entities | Securitization and Variable Interest Entities Consolidated VIEs Warehouse Credit Facilitie s 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 9. 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 trust 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 trust 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 from our involvement with consolidated VIEs (in thousands): September 30, 2023 Assets Liabilities Net Assets Warehouse credit facilities $ 1,915,257 $ 1,684,638 $ 230,619 Securitizations 2,457,025 2,404,437 52,588 Total consolidated VIEs $ 4,372,282 $ 4,089,075 $ 283,207 June 30, 2023 Assets Liabilities Net Assets Warehouse credit facilities $ 1,930,641 $ 1,686,359 $ 244,282 Securitizations 2,272,991 2,169,835 103,156 Total consolidated VIEs $ 4,203,632 $ 3,856,194 $ 347,438 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 September 30, 2023. The following information pertains to unconsolidated VIEs where we hold a variable interest but are not the primary beneficiary (in thousands): September 30, 2023 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 281,516 $ 271,049 $ 10,467 $ 14,160 Total unconsolidated VIEs $ 281,516 $ 271,049 $ 10,467 $ 14,160 June 30, 2023 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 380,547 $ 367,788 $ 12,759 $ 19,149 Total unconsolidated VIEs $ 380,547 $ 367,788 $ 12,759 $ 19,149 Maximum exposure to losses represents our exposure through our continuing involvement as servicer and through our retained interests. For unconsolidated VIEs, this includes $14.0 million in retained notes and residual trust certificates disclosed within securities available for sale at fair value in our interim condensed consolidated balance sheet s and $0.2 million re lated to our servicing assets disclosed within other assets in our interim condensed consolidated balance sheets as of September 30, 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 September 30, 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 13. Fair Value of Financial Assets and Liabilities for additional information on the fair value sensitivity of the notes receivable and residual trust certificates. Additionally, as of September 30, 2023 , we have pledged each of our ret ained beneficial interests as collateral in a sale and repurchase agreement as described in Note 9. Debt . |
Investments
Investments | 3 Months Ended |
Sep. 30, 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): September 30, 2023 June 30, 2023 Cash and cash equivalents: Money market funds $ 354,274 $ 97,129 Commercial paper 31,015 54,402 Agency bonds — 60,865 Securities available for sale: Certificates of deposit 86,503 97,224 Corporate bonds 248,394 256,772 Commercial paper 163,160 266,193 Agency bonds 50,552 84,276 Municipal bonds 3,213 — Government bonds Non-US 9,199 9,151 US 446,626 441,096 Securitization notes receivable and certificates (1) 13,983 18,913 Other — 1,028 Total marketable securities: $ 1,406,919 $ 1,387,049 (1) These securities have been pledged as collateral in connection with sale and repurchase agreements as discussed within Note 9. 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 September 30, 2023 and June 30, 2023 were as follows (in thousands): September 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Certificates of deposit $ 86,580 $ 20 $ (97) $ — $ 86,503 Corporate bonds 251,642 24 (3,272) — 248,394 Commercial paper (1) 194,294 5 (124) — 194,175 Agency bonds 50,816 1 (265) — 50,552 Municipal bonds 3,210 3 — — 3,213 Government bonds Non-US 9,325 — (126) — 9,199 US 450,056 11 (3,441) — 446,626 Securitization notes receivable and certificates (2) 14,753 — (290) (480) 13,983 Total securities available for sale $ 1,060,676 $ 64 $ (7,615) $ (480) $ 1,052,645 June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Certificates of deposit $ 97,399 $ 11 $ (186) $ — $ 97,224 Corporate bonds 260,627 55 (3,910) — 256,772 Commercial paper (1) 320,882 34 (321) — 320,595 Agency bonds (1) 145,312 62 (233) — 145,141 Government bonds Non-US 9,330 — (179) — 9,151 US 444,858 28 (3,790) — 441,096 Securitization notes receivable and certificates (2) 19,841 — (475) (453) 18,913 Other 1,028 — — — 1,028 Total securities available for sale $ 1,299,277 $ 190 $ (9,094) $ (453) $ 1,289,920 (1) Commercial paper and agency bonds include $31.0 million and $115.3 million as of September 30, 2023 and June 30, 2023, 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 9. Debt. As of September 30, 2023 and June 30, 2023, 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 September 30, 2023 and June 30, 2023, are as follows (in thousands): September 30, 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 $ 59,252 $ (97) $ — $ — $ 59,252 $ (97) Corporate bonds 76,635 (456) 133,377 (2,816) 210,012 (3,272) Commercial paper 138,099 (124) — — 138,099 (124) Agency bonds 47,615 (265) — — 47,615 (265) Government bonds Non-US 3,060 (66) 6,138 (60) 9,198 (126) US 298,383 (2,095) 74,151 (1,346) 372,534 (3,441) Total securities available for sale (1) $ 623,044 $ (3,103) $ 213,666 $ (4,222) $ 836,710 $ (7,325) June 30, 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 $ 63,489 $ (186) $ — $ — $ 63,489 $ (186) Corporate bonds 92,171 (834) 131,762 (3,076) 223,933 (3,910) Commercial paper 164,037 (321) — — 164,037 (321) Agency bonds 44,214 (233) — — 44,214 (233) Government bonds Non-US 3,061 (58) 6,089 (121) 9,150 (179) US 292,333 (2,395) 67,606 (1,395) 359,939 (3,790) Total securities available for sale (1) $ 659,305 $ (4,027) $ 205,457 $ (4,592) $ 864,762 $ (8,619) (1) The number of positions with unrealized losses for which an allowance for credit losses has not been recorded totaled 121 and 142 as of September 30, 2023 and June 30, 2023, respectively. The length of time to contractual maturities of securities available for sale as of September 30, 2023 and June 30, 2023 were as follows (in thousands): September 30, 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 $ 86,580 $ 86,503 $ — $ — $ 86,580 $ 86,503 Corporate bonds 159,282 158,000 92,360 90,394 251,642 248,394 Commercial paper (1) 194,294 194,175 — — 194,294 194,175 Agency bonds 37,596 37,534 13,220 13,018 50,816 50,552 Municipal bonds — — 3,210 3,213 3,210 3,213 Government bonds Non-US 6,199 6,139 3,126 3,060 9,325 9,199 US 332,026 330,869 118,030 115,757 450,056 446,626 Securitization notes receivable and certificates (2) — — 14,753 13,983 14,753 13,983 Other — — — — — — Total securities available for sale $ 815,977 $ 813,220 $ 244,699 $ 239,425 $ 1,060,676 $ 1,052,645 June 30, 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 $ 97,399 $ 97,224 $ — $ — $ 97,399 $ 97,224 Corporate bonds 173,523 171,634 87,104 85,138 260,627 256,772 Commercial paper (1) 320,882 320,595 — — 320,882 320,595 Agency bonds (1) 130,176 130,165 15,136 14,976 145,312 145,141 Government bonds Non-US 4,063 3,996 5,267 5,155 9,330 9,151 US 308,179 306,656 136,679 134,440 444,858 441,096 Securitization notes receivable and certificates (2) — — 19,841 18,913 19,841 18,913 Other — — 1,028 1,028 1,028 1,028 Total securities available for sale $ 1,034,222 $ 1,030,270 $ 265,055 $ 259,650 $ 1,299,277 $ 1,289,920 (1) Commercial paper and agency bonds include $31.0 million and $115.3 million as of September 30, 2023 and June 30, 2023, respectively, classified as cash and cash equivalents within the interim condensed consolidated balance sheets. (2) Based on weighted average life of expected cash flows as of September 30, 2023 and June 30, 2023 . Gross proceeds from matured or redeemed securities were $381.8 million and $1.7 billion for the three months ended September 30, 2023 and 2022 , respectively. For available for sale securities realized gains and losses from portfolio sales were not material for the three months ended September 30, 2023 and 2022, respectively. Non-marketable Equity Securities Equity investments without a readily determinable fair value held at cost were $51.9 million and $43.2 million as of September 30, 2023 and June 30, 2023, respectively, 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 for t he three months ended September 30, 2023 and 2022 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The following table summarizes the total fair value, including interest accruals, and outstanding notional amounts of derivative instruments as of September 30, 2023 and June 30, 2023 (in thousands): September 30, 2023 June 30, 2023 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as cash flow hedges Interest rate contracts - cash flow hedges $ 500,000 $ 573 $ — $ 800,000 $ 751 $ — Derivatives not designated as hedges Interest rate contracts 1,894,613 40,643 — 2,102,944 49,794 — Total gross derivative assets/liabilities $ 2,394,613 $ 41,216 $ — $ 2,902,944 $ 50,545 $ — The following table summarizes the impact of the cash flow hedges on AOCI (in thousands): Three Months Ended September 30, 2023 Balance at beginning of period 751 Changes in fair value 1,014 Amounts reclassified into earnings (1) (251) Balance at end of period (2) $ 1,514 (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 $1.1 million of net derivative gains included in AOCI into funding costs within our interim consolidated statements of operations and comprehensive loss. The following table summarizes the impact of the derivative instruments on income and indicates where within the interim consolidated statements of operations and comprehensive loss such impact is reported (in thousands): Location of gains (losses) where the effects of derivatives are recorded Three Months Ended September 30, 2023 2022 The effects of cash flow hedging Funding costs 251 — The effects of derivatives not designated in hedging relationships Other income, net 3,979 30,666 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities 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 September 30, 2023 and June 30, 2023 (in thousands): September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 354,274 $ — $ — $ 354,274 Commercial paper — 31,015 — 31,015 Securities, available for sale: Certificates of deposit — 86,503 — 86,503 Corporate bonds — 248,394 — 248,394 Commercial paper — 163,160 — 163,160 Agency bonds — 50,552 — 50,552 Municipal bonds — 3,213 — 3,213 Government bonds: Non-U.S. — 9,199 — 9,199 U.S. — 446,626 — 446,626 Securitization notes receivable and residual trust certificates — — 13,983 13,983 Servicing assets — — 569 569 Derivative instruments — 41,216 — 41,216 Risk sharing asset — — 3,814 3,814 Total assets $ 354,274 $ 1,079,878 $ 18,366 $ 1,452,518 Liabilities: Servicing liabilities $ — $ — $ 1,851 $ 1,851 Performance fee liability — — 1,427 1,427 Residual trust certificates, held by third-parties — — 93 93 Profit share liability — — 1,079 1,079 Risk sharing liability — — 471 471 Total liabilities $ — $ — $ 4,921 $ 4,921 June 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 97,129 $ — $ — $ 97,129 Commercial paper — 54,402 — 54,402 Agency bonds — 60,865 — 60,865 Securities, available for sale: Certificates of deposit — 97,224 — 97,224 Corporate bonds — 256,772 — 256,772 Commercial paper — 266,193 — 266,193 Agency bonds — 84,276 — 84,276 Government bonds: Non-U.S. — 9,151 — 9,151 U.S. — 441,096 — 441,096 Securitization notes receivable and residual trust certificates — — 18,913 18,913 Other — — 1,028 1,028 Servicing assets — — 880 880 Derivative instruments — 50,545 — 50,545 Total assets $ 97,129 $ 1,320,524 $ 20,821 $ 1,438,474 Liabilities: Servicing liabilities $ — $ — $ 1,392 $ 1,392 Performance fee liability — — 1,581 1,581 Residual trust certificates, held by third-parties — — 125 125 Profit share liability — — 1,832 1,832 Total liabilities $ — $ — $ 4,930 $ 4,930 As of September 30, 2023 and June 30, 2023, there were no transfers between levels. Assets and Liabilities Measured at Fair Value on a Recurring Basis (Level 2) Marketable Securities As of September 30, 2023, we held marketable securities classified as cash and cash equivalents and 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 September 30, 2023 and June 30, 2023, we used a combination of interest rate cap agreements and interest rate swaps to manage interest costs and the risks associated with variable interest rates. These derivative instruments are classified as Level 2 within the fair value hierarchy, and the fair value is estimated by using third-party pricing models, which contain certain assumptions based on readily observable market-based inputs. We validate the valuation output on a monthly basis. Refer to Note 12. 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 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, profit share liability, and risk sharing arrangements do not trade in an active market with readily observable prices, we use significant unobservable inputs to measure fair value and have classified as level 3 within the fair value hierarchy. This determination requires significant judgments to be made. Servicing Assets and Liabilities We sold loans with an unpaid principal balance of $2.2 billion and $2.0 billion for the three months ended September 30, 2023 and 2022, respectively, for which we retained servicing rights. As of September 30, 2023 and June 30, 2023, we serviced loans which we sold with a remaining unpaid principal balance of $4.3 billion and $4.1 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. Gross 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 $20.2 million and $21.4 million of servicing income for the three months ended September 30, 2023 and 2022, respectively. As of September 30, 2023 and June 30, 2023, the aggregate fair value of the servicing assets was measured at $0.6 million and $0.9 million, respectively, and presented within other assets on the interim condensed consolidated balance sheets. As of September 30, 2023 and June 30, 2023, the aggregate fair value of the servicing liabilities was measured at $1.9 million and $1.4 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 September 30, 2023 2022 Fair value at beginning of period $ 880 $ 1,192 Initial transfers of financial assets — 29 Subsequent changes in fair value (311) (79) Fair value at end of period $ 569 $ 1,142 The following table summarizes the activity related to the aggregate fair value of our servicing liabilities (in thousands): Three Months Ended September 30, 2023 2022 Fair value at beginning of period $ 1,392 $ 2,673 Initial transfers of financial assets 1,389 1,988 Subsequent changes in fair value (930) (1,509) Fair value at end of period $ 1,851 $ 3,152 The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of September 30, 2023 and June 30, 2023: September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (3) Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.92 % 2.31 % 0.92 % Gross default rate (2) 2.44 % 12.59 % 3.81 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.92 % 2.31 % 2.29 % Gross default rate (2) 6.02 % 19.32 % 13.00 % June 30, 2023 Unobservable Input Minimum Maximum Weighted Average (3) Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.92 % 2.31 % 0.93 % Gross default rate (2) 2.15 % 11.20 % 3.36 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.92 % 2.31 % 2.27 % Gross default rate (2) 9.50 % 21.54 % 13.64 % (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 (3) Unobservable inputs were weighted by relative fair value 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): September 30, 2023 June 30, 2023 Servicing assets Gross default rate assumption: Gross default rate increase of 25% $ — $ — Gross default rate increase of 50% $ — $ (1) Adequate compensation assumption: Adequate compensation increase of 10% $ (266) $ (382) Adequate compensation increase of 20% $ (531) $ (764) Discount rate assumption: Discount rate increase of 25% $ (18) $ (29) Discount rate increase of 50% $ (34) $ (55) Servicing liabilities Gross default rate assumption: Gross default rate increase of 25% $ 6 $ (9) Gross default rate increase of 50% $ (5) $ (19) Adequate compensation assumption: Adequate compensation increase of 10% $ 3,313 $ 2,798 Adequate compensation increase of 20% $ 6,608 $ 5,597 Discount rate assumption: Discount rate increase of 25% $ (15) $ (19) Discount rate increase of 50% $ (45) $ (38) 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 September 30, 2023 2022 Fair value at beginning of period $ 1,581 $ 1,710 Purchases of loans 376 479 Settlements paid (484) — Subsequent changes in fair value (46) (426) Fair value at end of period $ 1,427 $ 1,763 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 September 30, 2023 and June 30, 2023: September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 10.00% 10.00% 10.00% Refund rate 4.50% 4.50% 4.50% Default rate 1.79% 3.71% 2.89% June 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 10.00% 10.00% 10.00% Refund rate 4.50% 4.50% 4.50% Default rate 1.79% 3.34% 2.86% (1) Unobservable inputs were weighted by remaining principal balances 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 September 30, 2023 2022 Fair value at beginning of period $ 125 $ 377 Repayments (38) (99) Subsequent changes in fair value 6 30 Fair value at end of period $ 93 $ 308 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 September 30, 2023 and June 30, 2023: September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 10.00% 10.00% 10.00% Loss rate 0.77% 0.77% 0.77% Prepayment rate 18.90% 18.90% 18.90% June 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 10.00% 10.00% 10.00% Loss rate 0.92% 0.92% 0.92% Prepayment rate 7.70% 7.70% 7.70% (1) Unobservable inputs were weighted by relative fair value Retained Beneficial Interests in Unconsolidated VIEs As of September 30, 2023, we held notes receivable and residual trust certificates with an aggregate fair value of $14.0 million in connection with unconsolidated securitizations. The balances correspond to the 5% economic risk retention we are 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 September 30, 2023 2022 Fair value at beginning of period $ 18,913 $ 51,678 Cash received (due to payments or sales) (5,261) (9,772) Change in unrealized gain (loss) 185 (648) Accrued interest 172 453 Reversal of (impairment on) securities available for sale (26) (208) Fair value at end of period $ 13,983 $ 41,503 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 September 30, 2023 and June 30, 2023 : September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 6.21% 29.84% 7.34% Loss rate 0.91% 14.61% 2.63% Prepayment rate 6.70% 28.60% 17.59% June 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 5.72% 29.84% 7.30% Loss rate 1.25% 14.96% 3.02% Prepayment rate 5.90% 29.90% 18.10% (1) Unobservable inputs were weighted by relative fair value 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): September 30, 2023 June 30, 2023 Discount rate assumption: Discount rate increase of 25% $ (156) $ (218) Discount rate increase of 50% $ (306) $ (429) Loss rate assumption: Loss rate increase of 25% $ (108) $ (165) Loss rate increase of 50% $ (157) $ (243) Prepayment rate assumption: Prepayment rate decrease of 25% $ (20) $ (30) Prepayment rate decrease of 50% $ (40) $ (59) 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 September 30, 2023 2022 Fair value at beginning of period $ 1,832 $ 1,987 Facilitation of loans 928 1,133 Actual performance 1,672 (2,876) Subsequent changes in fair value (3,353) 1,632 Fair value at end of period $ 1,079 $ 1,876 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 September 30, 2023 and June 30, 2023 : September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 30.00% 30.00% 30.00% Program profitability 0.73% 0.73% 0.73% June 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 30.00% 30.00% 30.00% Program profitability 1.13% 1.13% 1.13% (1) Unobservable inputs were weighted by relative fair value Risk Sharing Arrangements In connection with certain capital funding arrangements with third party loan buyers, we have entered into risk sharing agreements where we may be required to make a payment to the loan buyer or are entitled to receive a payment from the loan buyer, depending on the actual versus expected loan performance as contractually agreed to with the counterparty, and subject to a cap based on a percentage of the principal balance of loans sold. Loan performance is evaluated at a cohort level based on the month loans were sold. Through September 30, 2023 we have sold $1.3 billion unpaid principal balance of loans under these risk sharing arrangements, of which our maximum exposure to losses is $27.1 million.This amount includes our maximum potential loss with respect to risk sharing liabilities and the fair value of risk sharing assets of $3.8 million, as of September 30, 2023. We account for these arrangements as derivatives measured at fair value with gains and losses recognized in Gain on sale of loans in our interim condensed consolidated statements of operations and comprehensive loss. For each counterparty, we have recognized a net asset or net liability based on the estimated fair value of future payments we expect to receive from or make to the counterparty. As of September 30, 2023, we held assets and liabilities related to these arrangements of $3.8 million and $0.5 million, respectively. As of June 30, 2023, we estimated that the fair value of risk sharing liabilities was $0 based on the limited time passed and available loan performance since entering into these agreements. We did not have any risk sharing arrangements where we had recognized an asset as of June 30, 2023. As of September 30, 2023, we estimated the fair value of future settlements using a discounted cash flow model. Significant assumptions used in the valuation of our risk sharing assets and liabilities include the discount rate, loss rate and the prepayment rate. The following table summarizes the activity related to the fair value of the risk sharing assets (in thousands): Three Months Ended September 30, 2023 Fair value at beginning of period $ — Initial transfers of financial assets 3,814 Subsequent changes in fair value — Fair value at end of period $ 3,814 The following table summarizes the activity related to the fair value of the risk sharing liabilities (in thousands): Three Months Ended September 30, 2023 Fair value at beginning of period $ — Initial transfers of financial liabilities — Subsequent changes in fair value 471 Fair value at end of period $ 471 The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the risk sharing arrangements as of September 30, 2023: September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Risk sharing assets Discount rate 20.00% 20.00% 20.00% Loss rate 9.36% 9.36% 9.36% Prepayment rate 31.90% 31.90% 31.90% Risk sharing liabilities Discount rate 20.00% 20.00% 20.00% Loss rate 4.00% 5.16% 4.35% (1) Unobservable inputs were weighted by principal balance of loans sold under each cohort The following table summarizes the effect that adverse changes in estimates would have on the fair value of the risk sharing assets and liabilities given hypothetical changes in significant unobservable inputs (in thousands): September 30, 2023 Risk sharing assets Prepayment rate assumption: Prepayment rate increase of 25% $ (243,524) Prepayment rate increase of 50% $ (477,053) Loss rate assumption: Loss rate increase of 25% $ (1,330,723) Loss rate increase of 50% $ (2,642,491) Discount rate assumption: Discount rate increase of 25% $ (273,602) Discount rate increase of 50% $ (516,753) Risk sharing liabilities Loss rate assumption: Loss rate increase of 25% $ 9,908,013 Loss rate increase of 50% $ 16,992,497 Discount rate assumption: Discount rate increase of 25% $ (23,519) Discount rate increase of 50% $ (45,008) 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 September 30, 2023 and June 30, 2023 (in thousands): September 30, 2023 Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 145 $ — $ 145 $ — $ 145 Loans held for investment, net 4,317,354 — — 4,482,857 4,482,857 Other assets 8,995 — 8,995 — 8,995 Total assets $ 4,326,494 $ — $ 9,140 $ 4,482,857 $ 4,491,996 Liabilities: Convertible senior notes, net (1) $ 1,415,080 $ — $ 1,074,772 $ — $ 1,074,772 Notes issued by securitization trusts 2,398,758 — — 2,383,850 2,383,850 Funding debt (2) 1,725,011 — — 1,725,027 1,725,027 Total liabilities $ 5,538,849 $ — $ 1,074,772 $ 4,108,877 $ 5,183,649 June 30, 2023 Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 76 $ — $ 76 $ — $ 76 Loans held for investment, net 4,198,431 — — 4,397,931 4,397,931 Other assets 9,325 — 9,325 — 9,325 Total assets $ 4,207,832 $ — $ 9,401 $ 4,397,931 $ 4,407,332 Liabilities: Convertible senior notes, net (1) $ 1,414,208 $ — $ 1,053,866 $ — $ 1,053,866 Notes issued by securitization trusts 2,165,577 — — 1,748,772 1,748,772 Funding debt (2) 1,775,698 — — 1,777,635 1,777,635 Total liabilities $ 5,355,483 $ — $ 1,053,866 $ 3,526,407 $ 4,580,273 (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 | 3 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock We had shares of common stock reserved for issuance as follows: September 30, 2023 June 30, 2023 Available outstanding under equity compensation plans 53,347,042 52,572,230 Available for future grant under equity compensation plans 47,162,302 37,245,232 Total 100,509,344 89,817,462 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. During the year ended June 30, 2022, 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 |
Equity Incentive Plans
Equity Incentive Plans | 3 Months Ended |
Sep. 30, 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 September 30, 2023, the maximum number of shares of common stock which may be issued under the Plan is 161,051,508 Class A shares. As of September 30, 2023 and June 30, 2023, there were 47,162,302 and 37,245,232 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 three months ended September 30, 2023: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Balance as of June 30, 2023 18,505,138 $ 14.34 6.07 Granted 1,743,514 23.35 Exercised (496,213) 7.45 Forfeited, expired or cancelled (637,348) 30.13 Balance as of September 30, 2023 19,115,091 14.81 6.12 Vested and exercisable, September 30, 2023 14,503,031 $ 11.31 5.33 $ 182,338 Vested and exercisable, and expected to vest thereafter (1) September 30, 2023 18,565,399 $ 14.11 6.05 $ 187,952 (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 three months ended September 30, 2023 was $16.10. As of September 30, 2023, unrecognized compensation expense related to unvested stock options was approximately $56.1 million, which is expected to be recognized over a remaining weighted-average period of 2.7 years. When an employee exercises stock options, we collect and remit taxes on the employee’s behalf to applicable taxing authorities. As of September 30, 2023 and June 30, 2023, the balance of equity exercise taxes payable was $5.8 million and $3.4 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 months ended September 30, 2023 and 2022, we incurred stock-based compensation expense of $19.6 million and $27.5 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. As of September 30, 2023, unrecognized compensation expense related to the Value Creation Award was approximately $93.3 million, which is expected to be recognized over a remaining weighted-average period of 2.3 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 During the three months ended September 30, 2023, we modified the vesting terms of approximately 5,300 RSU grants that vested on a monthly basis. Pursuant to the modified vesting schedule, these RSU grants will now vest on a quarterly basis. During the three months ended September 30, 2023, we recorded a one-time expense of $28.1 million in connection with the transition to a quarterly vesting schedule. The following table summarizes our RSU activity during the three months ended September 30, 2023: Number of Shares Weighted Average Grant Date Fair Value Non-vested at June 30, 2023 21,653,196 $ 26.99 Granted 6,626,710 18.25 Vested (5,719,367) 27.65 Forfeited, expired or cancelled (828,588) 26.23 Non-vested at September 30, 2023 21,731,951 $ 24.18 As of September 30, 2023, unrecognized compensation expense related to unvested RSUs was approximately $447.7 million, which is expected to be recognized over a remaining weighted-average period of 1.9 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 13.8 million shares of Class A common stock are reserved and available for issuance under the ESPP and 1.1 million shares have been issued as of September 30, 2023. The ESPP provides for six-month offering periods beginning December 1 and June 1 of each year. 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 September 30, 2023 2022 General and administrative $ 70,184 $ 67,340 Technology and data analytics 35,135 43,428 Sales and marketing 5,465 8,128 Processing and servicing 1,575 912 Total stock-based compensation in operating expenses 112,359 119,808 Capitalized into property, equipment and software, net 38,803 21,204 Total stock-based compensation $ 151,162 $ 141,012 |
Restructuring and other
Restructuring and other | 3 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and other | Restructuring and other 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 and other consisted of $1.7 million of employee severance pay and related costs for the three months ended September 30, 2023. Our restructuring accrual activity for the three months ended September 30, 2023 is summarized as follows (in thousands): 2023 Other Exit and Disposal Activities (1) Accrued restructuring costs, June 30, 2023 $ 308 $ 2,116 Additions 200 1,633 Cash paid (168) — Adjustments (90) — Accrued restructuring costs, September 30, 2023 $ 250 $ 3,749 (1) Includes employee severance pay and related costs, contract cancellation charges, among other items, related to other exit and disposal activities |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 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. Our 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 months ended September 30, 2023, we recorded income tax expense (benefit) of $1.0 million which was primarily attributable to deferred tax expense recognized by our Canadian subsidiary, various U.S state and other foreign income taxes, and the tax amortization of certain intangibles. For the three months ended September 30, 2022, we recorded income tax expense (benefit) of $(0.2) million which was primarily attributable to deferred tax benefits recognized by 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. As of September 30, 2023, we continue to recognize a full valuation allowance against our U.S. federal and state and certain foreign 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 us 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, the expansion of our overall business in Canada, and other objectively verifiable positive evidence available, 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 Canadian 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. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 3 Months Ended |
Sep. 30, 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 September 30, 2023 2022 Class A Class B Class A Class B Numerator: Net loss $ (138,078) $ (33,705) $ (199,355) $ (51,914) Net loss attributable to common stockholders - basic and diluted $ (138,078) $ (33,705) $ (199,355) $ (51,914) Denominator: Weighted average shares of common stock - basic 244,224,777 59,614,893 230,821,045 60,108,225 Weighted average shares of common stock - diluted 244,224,777 59,614,893 230,821,045 60,108,225 Net loss per share: Basic $ (0.57) $ (0.57) $ (0.86) $ (0.86) Diluted $ (0.57) $ (0.57) $ (0.86) $ (0.86) 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 September 30, 2023 2022 Restricted stock units 21,731,951 23,341,125 Stock options, including early exercise of options 19,115,091 20,235,040 Common stock warrants 5,743,523 5,870,677 Employee stock purchase plan shares 476,156 524,596 Total 47,066,721 49,971,438 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||
Net loss | $ (171,783) | $ (251,269) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Michael Linford [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On September 15, 2023, Michael Linford, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale of the Company's Class A common stock (a "Rule 10b5-1 Trading Plan") that is intended to satisfy the affirmative defense conditions of Exchange Act Rule 10b5-1(c). Mr. Linford's Rule 10b5-1 Trading Plan provides for the exercise of up to 315,000 employee stock options and sale of the underlying shares of our Class A common stock pursuant to one or more limit orders until April 30, 2024, or earlier if all transactions under the trading arrangement are completed. |
Name | Michael Linford |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | September 15, 2023 |
Arrangement Duration | 228 days |
Aggregate Available | 315,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | June 30, 2023. The balance sheet as of June 30, 2023 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 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 self-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 historical experience, current events, and other factors we believe to be reasonable under the circumstances. To the extent that there are material differences between these estimates and actual results, our financial condition or operating results will be materially 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 | Significant Accounting PoliciesThere 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, 2023, which was filed with the SEC on August 25, 2023. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Banking and Thrift, Interest [Abstract] | |
Disaggregation of Revenue | The following table presents our revenue disaggregated by revenue source (in thousands): Three Months Ended September 30, 2023 2022 Merchant network revenue $ 145,950 $ 113,149 Card network revenue 33,476 26,708 Interest income 262,679 136,802 Gain on sales of loans 34,285 63,595 Servicing income 20,157 21,370 Total revenue, net $ 496,547 $ 361,624 |
Schedule of Interest Income | Interest income consisted of the following components (in thousands): Three Months Ended September 30, 2023 2022 Contractual interest income on unpaid principal balance $ 226,158 $ 106,138 Amortization of discount on loans 45,118 38,969 Amortization of premiums on loans (3,980) (4,374) Interest receivable charged-off, net of recoveries (4,617) (3,931) Total interest income $ 262,679 $ 136,802 |
Loans Held for Investment and_2
Loans Held for Investment and Allowance for Credit Losses (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Held for Investment and Allowance for Credit Loss | Loans held for investment consisted of the following (in thousands): September 30, 2023 June 30, 2023 Unpaid principal balance $ 4,585,570 $ 4,451,324 Accrued interest receivable 46,886 41,079 Premiums on loans held for investment 6,828 7,135 Less: Discount due to loss on loan purchase commitment (49,805) (51,190) Less: Discount due to loss on directly originated loans (40,025) (45,145) Less: Fair value adjustment on loans acquired through business combination (32) (241) Total loans held for investment $ 4,549,422 $ 4,402,962 |
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 September 30, 2023: September 30, 2023 Amortized Costs Basis by Fiscal Year of Origination 2024 2023 2022 2021 2020 Prior Total 96+ $ 1,293,647 $ 1,393,864 $ 28,287 $ 8,601 $ 26 $ 10 $ 2,724,435 94 – 96 565,028 614,611 3,550 211 15 8 1,183,422 90 – 94 96,511 65,347 1,562 18 2 4 163,444 <90 12,675 2,300 1,032 4 2 — 16,013 No score (1) 133,271 232,740 41,876 6,721 254 215 415,077 Total amortized cost basis $ 2,101,132 $ 2,308,862 $ 76,307 $ 15,555 $ 299 $ 237 $ 4,502,391 (1) This balance represents loan receivables in 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 three months ended (in thousands) as of September 30, 2023: September 30, 2023 Net Charge-offs by Fiscal Year of Origination 2024 2023 2022 2021 2020 Prior Total Current period charge-offs (1,329) (65,283) (3,916) (234) (46) (34) (70,842) Current period recoveries 17 2,830 2,399 275 5 27 5,552 Current period net charge-offs (1,312) (62,453) (1,517) 41 (41) (7) (65,290) 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, 2023: June 30, 2023 Amortized Costs Basis by Fiscal Year of Origination 2023 2022 2021 2020 2019 Prior Total 96+ $ 2,628,060 $ 39,428 $ 18,910 $ 3,439 $ 9 $ 1 $ 2,689,847 94 – 96 1,104,553 7,755 439 77 6 2 1,112,832 90 – 94 133,940 3,116 26 2 4 — 137,088 <90 13,363 1,623 4 2 — — 14,992 No score (1) 335,690 59,204 11,562 489 252 9 407,206 Total amortized cost basis $ 4,215,606 $ 111,126 $ 30,941 $ 4,009 $ 271 $ 12 $ 4,361,965 |
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): September 30, 2023 June 30, 2023 Non-delinquent loans $ 4,270,534 $ 4,183,248 4 – 29 calendar days past due 120,564 92,876 30 – 59 calendar days past due 46,927 36,399 60 – 89 calendar days past due 34,279 28,171 90 – 119 calendar days past due (1) 30,087 21,271 Total amortized cost basis $ 4,502,391 $ 4,361,965 |
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 2023 2022 Balance at beginning of period $ 204,531 $ 155,392 Provision for loan losses 92,827 61,869 Charge-offs (70,842) (71,036) Recoveries of charged-off receivables 5,552 6,800 Balance at end of period $ 232,068 $ 153,025 |
Financing Receivable, Modified | The following table presents the amortized cost basis of loans excluding accrued interest receivable that were modified for borrowers experiencing financial difficulty during the three months ended September 30, 2023, by type of modification (in thousands): Three Months Ended September 30, 2023 Payment Deferral Loan Total % of Total Loan Receivables Outstanding Loans receivables 2,801 152 2,953 0.07 % The following table presents the delinquency status as of September 30, 2023 (in thousands), by amortized cost basis excluding accrued interest receivable, of loan receivables that have been modified within the last 12 months where the borrower was experiencing financial difficulty at the time of modification: September 30, 2023 Payment Deferral Loan Re-amortization Total Non-delinquent loans $ 4,515 $ 268 $ 4,783 4 – 29 calendar days past due 1,304 112 1,416 30 – 59 calendar days past due 139 65 204 60 – 89 calendar days past due 75 6 81 90 – 119 calendar days past due 65 2 67 Total amortized cost basis $ 6,098 $ 453 $ 6,551 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Sep. 30, 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 |
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 |
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 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property, Equipment and Software, Net | Property, equipment and software, net consisted of the following (in thousands): September 30, 2023 June 30, 2023 Internally developed software $ 443,992 $ 377,301 Leasehold improvements 20,279 20,214 Computer equipment 10,252 10,187 Furniture and equipment 6,586 6,503 Total property, equipment and software, at cost $ 481,109 $ 414,205 Less: Accumulated depreciation and amortization (142,360) (124,070) Total property, equipment and software, net $ 338,749 $ 290,135 |
Schedule of Goodwill | The changes in the carrying amount of goodwill during the three months ended September 30, 2023 were as follows (in thousands): Balance as of June 30, 2023 $ 542,571 Adjustments (1) (6,152) Balance as of September 30, 2023 $ 536,418 (1) Adjustments to goodwill during the three months ended September 30, 2023 primarily pertained to foreign currency translation adjustments. |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following (in thousands): September 30, 2023 Gross Accumulated Amortization Net Weighted Average Remaining Useful Life Merchant relationships $ 37,914 $ (35,129) $ 2,786 0.3 Developed technology 39,488 (34,935) 4,553 0.4 Assembled workforce 12,490 (12,079) 410 0.1 Trademarks and domains, definite 1,458 (1,027) 431 1.5 Trademarks, licenses and domains, indefinite 11,298 — 11,298 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 102,998 $ (83,170) $ 19,828 June 30, 2023 Gross Accumulated Amortization Net Weighted Average Merchant relationships $ 38,129 $ (27,637) $ 10,492 0.6 Developed technology 39,626 (30,653) 8,973 0.6 Assembled workforce 12,490 (9,983) 2,507 0.3 Trademarks and domains, definite 1,481 (990) 491 1.7 Trademarks, licenses and domains, indefinite 11,621 — 11,621 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 103,697 $ (69,263) $ 34,434 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consisted of the following (in thousands): September 30, 2023 Gross Accumulated Amortization Net Weighted Average Remaining Useful Life Merchant relationships $ 37,914 $ (35,129) $ 2,786 0.3 Developed technology 39,488 (34,935) 4,553 0.4 Assembled workforce 12,490 (12,079) 410 0.1 Trademarks and domains, definite 1,458 (1,027) 431 1.5 Trademarks, licenses and domains, indefinite 11,298 — 11,298 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 102,998 $ (83,170) $ 19,828 June 30, 2023 Gross Accumulated Amortization Net Weighted Average Merchant relationships $ 38,129 $ (27,637) $ 10,492 0.6 Developed technology 39,626 (30,653) 8,973 0.6 Assembled workforce 12,490 (9,983) 2,507 0.3 Trademarks and domains, definite 1,481 (990) 491 1.7 Trademarks, licenses and domains, indefinite 11,621 — 11,621 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 103,697 $ (69,263) $ 34,434 |
Schedule of Intangible Assets, Future Amortization Expense | The expected future amortization expense of these intangible assets as of September 30, 2023 is as follows (in thousands): 2024 (remaining nine months) $ 6,646 2025 1,365 2026 155 2027 15 2028 and thereafter — Total amortization expense $ 8,180 |
Schedule of Other Assets | Other assets consisted of the following (in thousands): September 30, 2023 June 30, 2023 Processing reserves $ 65,421 $ 60,039 Equity securities, at cost 51,870 43,172 Derivative instruments 41,216 50,545 Operating lease right-of-use assets 27,227 30,171 Prepaid payroll taxes for stock-based compensation 29,508 14,336 Prepaid expenses 25,544 35,626 Other assets 51,398 44,725 Total other assets $ 292,184 $ 278,614 |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands) September 30, 2023 June 30, 2023 Operating lease liability $ 49,071 $ 52,557 Accrued expenses 42,173 50,704 Collateral held for derivative instruments 41,401 53,267 Other liabilities 27,683 24,355 Total accrued expenses and other liabilities $ 160,328 $ 180,883 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Term and Discount Rate | Operating lease expense is as follows (in thousands): Three Months Ended September 30, 2023 2022 Operating lease expense (1) $2,986 $3,800 (1) Lease expenses for our short-term leases were immaterial for the periods presented. Lease term and discount rate information are summarized as follows: September 30, 2023 Weighted average remaining lease term (in years) 3.7 Weighted average discount rate 4.8% |
Schedule of Maturities of Lease Liabilities | As of September 30, 2023, future minimum lease payments are as follows (in thousands): 2024 (remaining nine months) $ 12,380 2025 16,317 2026 15,371 2027 2,680 2028 2,185 Thereafter 5,503 Total lease payments 54,436 Less imputed interest (5,365) Present value of total lease liabilities $ 49,071 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 30, 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): September 30, 2023 2024 $ 183,530 2025 390,881 2026 633,452 2027 — 2028 26,660 Thereafter 490,488 Total $ 1,725,011 Deferred debt issuance costs (15,260) Total funding debt, net of deferred debt issuance costs $ 1,709,751 |
Schedule of Long-term Debt Instruments | The convertible senior notes outstanding as of September 30, 2023 consisted of the following (in thousands): Principal Amount Unamortized Discount and Issuance Cost Net Carrying Amount Convertible senior notes $ 1,425,900 $ (10,820) $ 1,415,080 |
Securitization and Variable I_2
Securitization and Variable Interest Entities (Tables) | 3 Months Ended |
Sep. 30, 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 from our involvement with consolidated VIEs (in thousands): September 30, 2023 Assets Liabilities Net Assets Warehouse credit facilities $ 1,915,257 $ 1,684,638 $ 230,619 Securitizations 2,457,025 2,404,437 52,588 Total consolidated VIEs $ 4,372,282 $ 4,089,075 $ 283,207 June 30, 2023 Assets Liabilities Net Assets Warehouse credit facilities $ 1,930,641 $ 1,686,359 $ 244,282 Securitizations 2,272,991 2,169,835 103,156 Total consolidated VIEs $ 4,203,632 $ 3,856,194 $ 347,438 |
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): September 30, 2023 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 281,516 $ 271,049 $ 10,467 $ 14,160 Total unconsolidated VIEs $ 281,516 $ 271,049 $ 10,467 $ 14,160 June 30, 2023 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 380,547 $ 367,788 $ 12,759 $ 19,149 Total unconsolidated VIEs $ 380,547 $ 367,788 $ 12,759 $ 19,149 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Sep. 30, 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): September 30, 2023 June 30, 2023 Cash and cash equivalents: Money market funds $ 354,274 $ 97,129 Commercial paper 31,015 54,402 Agency bonds — 60,865 Securities available for sale: Certificates of deposit 86,503 97,224 Corporate bonds 248,394 256,772 Commercial paper 163,160 266,193 Agency bonds 50,552 84,276 Municipal bonds 3,213 — Government bonds Non-US 9,199 9,151 US 446,626 441,096 Securitization notes receivable and certificates (1) 13,983 18,913 Other — 1,028 Total marketable securities: $ 1,406,919 $ 1,387,049 (1) These securities have been pledged as collateral in connection with sale and repurchase agreements as discussed within Note 9. Debt. |
Unrealized Gain (Loss) on Investments | September 30, 2023 and June 30, 2023 were as follows (in thousands): September 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Certificates of deposit $ 86,580 $ 20 $ (97) $ — $ 86,503 Corporate bonds 251,642 24 (3,272) — 248,394 Commercial paper (1) 194,294 5 (124) — 194,175 Agency bonds 50,816 1 (265) — 50,552 Municipal bonds 3,210 3 — — 3,213 Government bonds Non-US 9,325 — (126) — 9,199 US 450,056 11 (3,441) — 446,626 Securitization notes receivable and certificates (2) 14,753 — (290) (480) 13,983 Total securities available for sale $ 1,060,676 $ 64 $ (7,615) $ (480) $ 1,052,645 June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Certificates of deposit $ 97,399 $ 11 $ (186) $ — $ 97,224 Corporate bonds 260,627 55 (3,910) — 256,772 Commercial paper (1) 320,882 34 (321) — 320,595 Agency bonds (1) 145,312 62 (233) — 145,141 Government bonds Non-US 9,330 — (179) — 9,151 US 444,858 28 (3,790) — 441,096 Securitization notes receivable and certificates (2) 19,841 — (475) (453) 18,913 Other 1,028 — — — 1,028 Total securities available for sale $ 1,299,277 $ 190 $ (9,094) $ (453) $ 1,289,920 (1) Commercial paper and agency bonds include $31.0 million and $115.3 million as of September 30, 2023 and June 30, 2023, 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 September 30, 2023 and June 30, 2023, are as follows (in thousands): September 30, 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 $ 59,252 $ (97) $ — $ — $ 59,252 $ (97) Corporate bonds 76,635 (456) 133,377 (2,816) 210,012 (3,272) Commercial paper 138,099 (124) — — 138,099 (124) Agency bonds 47,615 (265) — — 47,615 (265) Government bonds Non-US 3,060 (66) 6,138 (60) 9,198 (126) US 298,383 (2,095) 74,151 (1,346) 372,534 (3,441) Total securities available for sale (1) $ 623,044 $ (3,103) $ 213,666 $ (4,222) $ 836,710 $ (7,325) June 30, 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 $ 63,489 $ (186) $ — $ — $ 63,489 $ (186) Corporate bonds 92,171 (834) 131,762 (3,076) 223,933 (3,910) Commercial paper 164,037 (321) — — 164,037 (321) Agency bonds 44,214 (233) — — 44,214 (233) Government bonds Non-US 3,061 (58) 6,089 (121) 9,150 (179) US 292,333 (2,395) 67,606 (1,395) 359,939 (3,790) Total securities available for sale (1) $ 659,305 $ (4,027) $ 205,457 $ (4,592) $ 864,762 $ (8,619) (1) The number of positions with unrealized losses for which an allowance for credit losses has not been recorded totaled 121 and 142 as of September 30, 2023 and June 30, 2023, 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 September 30, 2023 and June 30, 2023 were as follows (in thousands): September 30, 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 $ 86,580 $ 86,503 $ — $ — $ 86,580 $ 86,503 Corporate bonds 159,282 158,000 92,360 90,394 251,642 248,394 Commercial paper (1) 194,294 194,175 — — 194,294 194,175 Agency bonds 37,596 37,534 13,220 13,018 50,816 50,552 Municipal bonds — — 3,210 3,213 3,210 3,213 Government bonds Non-US 6,199 6,139 3,126 3,060 9,325 9,199 US 332,026 330,869 118,030 115,757 450,056 446,626 Securitization notes receivable and certificates (2) — — 14,753 13,983 14,753 13,983 Other — — — — — — Total securities available for sale $ 815,977 $ 813,220 $ 244,699 $ 239,425 $ 1,060,676 $ 1,052,645 June 30, 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 $ 97,399 $ 97,224 $ — $ — $ 97,399 $ 97,224 Corporate bonds 173,523 171,634 87,104 85,138 260,627 256,772 Commercial paper (1) 320,882 320,595 — — 320,882 320,595 Agency bonds (1) 130,176 130,165 15,136 14,976 145,312 145,141 Government bonds Non-US 4,063 3,996 5,267 5,155 9,330 9,151 US 308,179 306,656 136,679 134,440 444,858 441,096 Securitization notes receivable and certificates (2) — — 19,841 18,913 19,841 18,913 Other — — 1,028 1,028 1,028 1,028 Total securities available for sale $ 1,034,222 $ 1,030,270 $ 265,055 $ 259,650 $ 1,299,277 $ 1,289,920 (1) Commercial paper and agency bonds include $31.0 million and $115.3 million as of September 30, 2023 and June 30, 2023, respectively, classified as cash and cash equivalents within the interim condensed consolidated balance sheets. (2) Based on weighted average life of expected cash flows as of September 30, 2023 and June 30, 2023 . |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | September 30, 2023 and June 30, 2023 (in thousands): September 30, 2023 June 30, 2023 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as cash flow hedges Interest rate contracts - cash flow hedges $ 500,000 $ 573 $ — $ 800,000 $ 751 $ — Derivatives not designated as hedges Interest rate contracts 1,894,613 40,643 — 2,102,944 49,794 — Total gross derivative assets/liabilities $ 2,394,613 $ 41,216 $ — $ 2,902,944 $ 50,545 $ — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | Three Months Ended September 30, 2023 Balance at beginning of period 751 Changes in fair value 1,014 Amounts reclassified into earnings (1) (251) Balance at end of period (2) $ 1,514 (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 $1.1 million of net derivative gains included in AOCI into funding costs within our interim consolidated statements of operations and comprehensive loss. |
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 loss such impact is reported (in thousands): Location of gains (losses) where the effects of derivatives are recorded Three Months Ended September 30, 2023 2022 The effects of cash flow hedging Funding costs 251 — The effects of derivatives not designated in hedging relationships Other income, net 3,979 30,666 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Sep. 30, 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 September 30, 2023 and June 30, 2023 (in thousands): September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 354,274 $ — $ — $ 354,274 Commercial paper — 31,015 — 31,015 Securities, available for sale: Certificates of deposit — 86,503 — 86,503 Corporate bonds — 248,394 — 248,394 Commercial paper — 163,160 — 163,160 Agency bonds — 50,552 — 50,552 Municipal bonds — 3,213 — 3,213 Government bonds: Non-U.S. — 9,199 — 9,199 U.S. — 446,626 — 446,626 Securitization notes receivable and residual trust certificates — — 13,983 13,983 Servicing assets — — 569 569 Derivative instruments — 41,216 — 41,216 Risk sharing asset — — 3,814 3,814 Total assets $ 354,274 $ 1,079,878 $ 18,366 $ 1,452,518 Liabilities: Servicing liabilities $ — $ — $ 1,851 $ 1,851 Performance fee liability — — 1,427 1,427 Residual trust certificates, held by third-parties — — 93 93 Profit share liability — — 1,079 1,079 Risk sharing liability — — 471 471 Total liabilities $ — $ — $ 4,921 $ 4,921 June 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 97,129 $ — $ — $ 97,129 Commercial paper — 54,402 — 54,402 Agency bonds — 60,865 — 60,865 Securities, available for sale: Certificates of deposit — 97,224 — 97,224 Corporate bonds — 256,772 — 256,772 Commercial paper — 266,193 — 266,193 Agency bonds — 84,276 — 84,276 Government bonds: Non-U.S. — 9,151 — 9,151 U.S. — 441,096 — 441,096 Securitization notes receivable and residual trust certificates — — 18,913 18,913 Other — — 1,028 1,028 Servicing assets — — 880 880 Derivative instruments — 50,545 — 50,545 Total assets $ 97,129 $ 1,320,524 $ 20,821 $ 1,438,474 Liabilities: Servicing liabilities $ — $ — $ 1,392 $ 1,392 Performance fee liability — — 1,581 1,581 Residual trust certificates, held by third-parties — — 125 125 Profit share liability — — 1,832 1,832 Total liabilities $ — $ — $ 4,930 $ 4,930 |
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 September 30, 2023 2022 Fair value at beginning of period $ 880 $ 1,192 Initial transfers of financial assets — 29 Subsequent changes in fair value (311) (79) Fair value at end of period $ 569 $ 1,142 |
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 September 30, 2023 2022 Fair value at beginning of period $ 1,392 $ 2,673 Initial transfers of financial assets 1,389 1,988 Subsequent changes in fair value (930) (1,509) Fair value at end of period $ 1,851 $ 3,152 |
Schedule of Significant Unobservable Inputs for Level 3 Fair Value Measurement | The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of September 30, 2023 and June 30, 2023: September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (3) Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.92 % 2.31 % 0.92 % Gross default rate (2) 2.44 % 12.59 % 3.81 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.92 % 2.31 % 2.29 % Gross default rate (2) 6.02 % 19.32 % 13.00 % June 30, 2023 Unobservable Input Minimum Maximum Weighted Average (3) Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.92 % 2.31 % 0.93 % Gross default rate (2) 2.15 % 11.20 % 3.36 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.92 % 2.31 % 2.27 % Gross default rate (2) 9.50 % 21.54 % 13.64 % (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 (3) Unobservable inputs were weighted by relative fair value September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 10.00% 10.00% 10.00% Refund rate 4.50% 4.50% 4.50% Default rate 1.79% 3.71% 2.89% June 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 10.00% 10.00% 10.00% Refund rate 4.50% 4.50% 4.50% Default rate 1.79% 3.34% 2.86% (1) Unobservable inputs were weighted by remaining principal balances 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 September 30, 2023 and June 30, 2023: September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 10.00% 10.00% 10.00% Loss rate 0.77% 0.77% 0.77% Prepayment rate 18.90% 18.90% 18.90% June 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 10.00% 10.00% 10.00% Loss rate 0.92% 0.92% 0.92% Prepayment rate 7.70% 7.70% 7.70% (1) Unobservable inputs were weighted by relative fair value 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 September 30, 2023 and June 30, 2023 : September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 6.21% 29.84% 7.34% Loss rate 0.91% 14.61% 2.63% Prepayment rate 6.70% 28.60% 17.59% June 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 5.72% 29.84% 7.30% Loss rate 1.25% 14.96% 3.02% Prepayment rate 5.90% 29.90% 18.10% (1) Unobservable inputs were weighted by relative fair value 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 September 30, 2023 and June 30, 2023 : September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 30.00% 30.00% 30.00% Program profitability 0.73% 0.73% 0.73% June 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Discount rate 30.00% 30.00% 30.00% Program profitability 1.13% 1.13% 1.13% (1) Unobservable inputs were weighted by relative fair value The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the risk sharing arrangements as of September 30, 2023: September 30, 2023 Unobservable Input Minimum Maximum Weighted Average (1) Risk sharing assets Discount rate 20.00% 20.00% 20.00% Loss rate 9.36% 9.36% 9.36% Prepayment rate 31.90% 31.90% 31.90% Risk sharing liabilities Discount rate 20.00% 20.00% 20.00% Loss rate 4.00% 5.16% 4.35% (1) Unobservable inputs were weighted by principal balance of loans sold under each cohort The following table summarizes the effect that adverse changes in estimates would have on the fair value of the risk sharing assets and liabilities given hypothetical changes in significant unobservable inputs (in thousands): September 30, 2023 Risk sharing assets Prepayment rate assumption: Prepayment rate increase of 25% $ (243,524) Prepayment rate increase of 50% $ (477,053) Loss rate assumption: Loss rate increase of 25% $ (1,330,723) Loss rate increase of 50% $ (2,642,491) Discount rate assumption: Discount rate increase of 25% $ (273,602) Discount rate increase of 50% $ (516,753) Risk sharing liabilities Loss rate assumption: Loss rate increase of 25% $ 9,908,013 Loss rate increase of 50% $ 16,992,497 Discount rate assumption: Discount rate increase of 25% $ (23,519) Discount rate increase of 50% $ (45,008) |
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): September 30, 2023 June 30, 2023 Servicing assets Gross default rate assumption: Gross default rate increase of 25% $ — $ — Gross default rate increase of 50% $ — $ (1) Adequate compensation assumption: Adequate compensation increase of 10% $ (266) $ (382) Adequate compensation increase of 20% $ (531) $ (764) Discount rate assumption: Discount rate increase of 25% $ (18) $ (29) Discount rate increase of 50% $ (34) $ (55) Servicing liabilities Gross default rate assumption: Gross default rate increase of 25% $ 6 $ (9) Gross default rate increase of 50% $ (5) $ (19) Adequate compensation assumption: Adequate compensation increase of 10% $ 3,313 $ 2,798 Adequate compensation increase of 20% $ 6,608 $ 5,597 Discount rate assumption: Discount rate increase of 25% $ (15) $ (19) Discount rate increase of 50% $ (45) $ (38) |
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 September 30, 2023 2022 Fair value at beginning of period $ 1,581 $ 1,710 Purchases of loans 376 479 Settlements paid (484) — Subsequent changes in fair value (46) (426) Fair value at end of period $ 1,427 $ 1,763 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 September 30, 2023 2022 Fair value at beginning of period $ 125 $ 377 Repayments (38) (99) Subsequent changes in fair value 6 30 Fair value at end of period $ 93 $ 308 The following table summarizes the activity related to the fair value of the notes and residual trust certificates (in thousands): Three Months Ended September 30, 2023 2022 Fair value at beginning of period $ 18,913 $ 51,678 Cash received (due to payments or sales) (5,261) (9,772) Change in unrealized gain (loss) 185 (648) Accrued interest 172 453 Reversal of (impairment on) securities available for sale (26) (208) Fair value at end of period $ 13,983 $ 41,503 The following table summarizes the activity related to the fair value of the profit share liability (in thousands): Three Months Ended September 30, 2023 2022 Fair value at beginning of period $ 1,832 $ 1,987 Facilitation of loans 928 1,133 Actual performance 1,672 (2,876) Subsequent changes in fair value (3,353) 1,632 Fair value at end of period $ 1,079 $ 1,876 The following table summarizes the activity related to the fair value of the risk sharing liabilities (in thousands): Three Months Ended September 30, 2023 Fair value at beginning of period $ — Initial transfers of financial liabilities — Subsequent changes in fair value 471 Fair value at end of period $ 471 |
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): September 30, 2023 June 30, 2023 Discount rate assumption: Discount rate increase of 25% $ (156) $ (218) Discount rate increase of 50% $ (306) $ (429) Loss rate assumption: Loss rate increase of 25% $ (108) $ (165) Loss rate increase of 50% $ (157) $ (243) Prepayment rate assumption: Prepayment rate decrease of 25% $ (20) $ (30) Prepayment rate decrease of 50% $ (40) $ (59) |
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 September 30, 2023 and June 30, 2023 (in thousands): September 30, 2023 Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 145 $ — $ 145 $ — $ 145 Loans held for investment, net 4,317,354 — — 4,482,857 4,482,857 Other assets 8,995 — 8,995 — 8,995 Total assets $ 4,326,494 $ — $ 9,140 $ 4,482,857 $ 4,491,996 Liabilities: Convertible senior notes, net (1) $ 1,415,080 $ — $ 1,074,772 $ — $ 1,074,772 Notes issued by securitization trusts 2,398,758 — — 2,383,850 2,383,850 Funding debt (2) 1,725,011 — — 1,725,027 1,725,027 Total liabilities $ 5,538,849 $ — $ 1,074,772 $ 4,108,877 $ 5,183,649 June 30, 2023 Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 76 $ — $ 76 $ — $ 76 Loans held for investment, net 4,198,431 — — 4,397,931 4,397,931 Other assets 9,325 — 9,325 — 9,325 Total assets $ 4,207,832 $ — $ 9,401 $ 4,397,931 $ 4,407,332 Liabilities: Convertible senior notes, net (1) $ 1,414,208 $ — $ 1,053,866 $ — $ 1,053,866 Notes issued by securitization trusts 2,165,577 — — 1,748,772 1,748,772 Funding debt (2) 1,775,698 — — 1,777,635 1,777,635 Total liabilities $ 5,355,483 $ — $ 1,053,866 $ 3,526,407 $ 4,580,273 (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. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the activity related to the fair value of the risk sharing assets (in thousands): Three Months Ended September 30, 2023 Fair value at beginning of period $ — Initial transfers of financial assets 3,814 Subsequent changes in fair value — Fair value at end of period $ 3,814 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock, Reserved for Future Issuance | We had shares of common stock reserved for issuance as follows: September 30, 2023 June 30, 2023 Available outstanding under equity compensation plans 53,347,042 52,572,230 Available for future grant under equity compensation plans 47,162,302 37,245,232 Total 100,509,344 89,817,462 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes our stock option activity for the three months ended September 30, 2023: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Balance as of June 30, 2023 18,505,138 $ 14.34 6.07 Granted 1,743,514 23.35 Exercised (496,213) 7.45 Forfeited, expired or cancelled (637,348) 30.13 Balance as of September 30, 2023 19,115,091 14.81 6.12 Vested and exercisable, September 30, 2023 14,503,031 $ 11.31 5.33 $ 182,338 Vested and exercisable, and expected to vest thereafter (1) September 30, 2023 18,565,399 $ 14.11 6.05 $ 187,952 (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 three months ended September 30, 2023: Number of Shares Weighted Average Grant Date Fair Value Non-vested at June 30, 2023 21,653,196 $ 26.99 Granted 6,626,710 18.25 Vested (5,719,367) 27.65 Forfeited, expired or cancelled (828,588) 26.23 Non-vested at September 30, 2023 21,731,951 $ 24.18 |
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 September 30, 2023 2022 General and administrative $ 70,184 $ 67,340 Technology and data analytics 35,135 43,428 Sales and marketing 5,465 8,128 Processing and servicing 1,575 912 Total stock-based compensation in operating expenses 112,359 119,808 Capitalized into property, equipment and software, net 38,803 21,204 Total stock-based compensation $ 151,162 $ 141,012 |
Restructuring and other (Tables
Restructuring and other (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Accrual Activity | Our restructuring accrual activity for the three months ended September 30, 2023 is summarized as follows (in thousands): 2023 Other Exit and Disposal Activities (1) Accrued restructuring costs, June 30, 2023 $ 308 $ 2,116 Additions 200 1,633 Cash paid (168) — Adjustments (90) — Accrued restructuring costs, September 30, 2023 $ 250 $ 3,749 (1) Includes employee severance pay and related costs, contract cancellation charges, among other items, related to other exit and disposal activities |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Sep. 30, 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 September 30, 2023 2022 Class A Class B Class A Class B Numerator: Net loss $ (138,078) $ (33,705) $ (199,355) $ (51,914) Net loss attributable to common stockholders - basic and diluted $ (138,078) $ (33,705) $ (199,355) $ (51,914) Denominator: Weighted average shares of common stock - basic 244,224,777 59,614,893 230,821,045 60,108,225 Weighted average shares of common stock - diluted 244,224,777 59,614,893 230,821,045 60,108,225 Net loss per share: Basic $ (0.57) $ (0.57) $ (0.86) $ (0.86) Diluted $ (0.57) $ (0.57) $ (0.86) $ (0.86) |
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 September 30, 2023 2022 Restricted stock units 21,731,951 23,341,125 Stock options, including early exercise of options 19,115,091 20,235,040 Common stock warrants 5,743,523 5,870,677 Employee stock purchase plan shares 476,156 524,596 Total 47,066,721 49,971,438 |
Business Description (Details)
Business Description (Details) | 3 Months Ended |
Sep. 30, 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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 179,426 | $ 139,857 |
Interest income | 262,679 | 136,802 |
Gain on sales of loans | 34,285 | 63,595 |
Servicing income | 20,157 | 21,370 |
Total revenue, net | 496,547 | 361,624 |
Merchant network revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 145,950 | 113,149 |
Card network revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 33,476 | $ 26,708 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Banking and Thrift, Interest [Abstract] | ||
Period of suspended accrued interest past due | 120 days | |
Non-accrued loans held for investment | $ 1.2 | $ 1.8 |
Revenue - Schedule of Interest
Revenue - Schedule of Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Banking and Thrift, Interest [Abstract] | ||
Contractual interest income on unpaid principal balance | $ 226,158 | $ 106,138 |
Amortization of discount on loans | 45,118 | 38,969 |
Amortization of premiums on loans | (3,980) | (4,374) |
Interest receivable charged-off, net of recoveries | (4,617) | (3,931) |
Interest income | $ 262,679 | $ 136,802 |
Loans Held for Investment and_3
Loans Held for Investment and Allowance for Credit Losses - Loans Held for Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Receivables [Abstract] | ||
Unpaid principal balance | $ 4,585,570 | $ 4,451,324 |
Accrued interest receivable | 46,886 | 41,079 |
Premiums on loans held for investment | 6,828 | 7,135 |
Less: Discount due to loss on loan purchase commitment | (49,805) | (51,190) |
Less: Discount due to loss on directly originated loans | (40,025) | (45,145) |
Less: Fair value adjustment on loans acquired through business combination | (32) | (241) |
Loans held for investment | $ 4,549,422 | $ 4,402,962 |
Loans Held for Investment and_4
Loans Held for Investment and Allowance for Credit Losses - Additional Information (Details) $ in Billions | 3 Months Ended | |
Sep. 30, 2023 USD ($) loan deferral | Sep. 30, 2022 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans purchased | $ | $ 4.6 | $ 3.5 |
Threshold period for delinquent loans past due | 4 days | |
Past due charge-off threshold | 120 days | |
Loans outstanding prior to modification | loan | 1 | |
Number of deferrals | deferral | 1 | |
Length of deferral term | 1 month | |
Delinquency period | 60 days | |
Minimum | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loan lending terms | 1 month | |
Proprietary credit quality score | 0 | |
Loan prior to modification, days past due | 30 days | |
Weighted average term increase from modification | 2 months | |
Maximum | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loan lending terms | 60 months | |
Proprietary credit quality score | 100 | |
Loan prior to modification, days past due | 120 days | |
Length of deferral term | 3 months | |
Weighted average term increase from modification | 12 months |
Loans Held for Investment and_5
Loans Held for Investment and Allowance for Credit Losses - Credit Quality by ITACs Score (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | $ 2,101,132 | $ 4,215,606 | |
2023 | 2,308,862 | 111,126 | |
2022 | 76,307 | 30,941 | |
2021 | 15,555 | 4,009 | |
2020 | 299 | 271 | |
Prior | 237 | 12 | |
Total | 4,502,391 | 4,361,965 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2024 | (1,329) | ||
2023 | (65,283) | ||
2022 | (3,916) | ||
2021 | (234) | ||
2020 | (46) | ||
Prior | (34) | ||
Total | (70,842) | $ (71,036) | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Recovery, by Origination Year [Abstract] | |||
2024 | 17 | ||
2023 | 2,830 | ||
2022 | 2,399 | ||
2021 | 275 | ||
2020 | 5 | ||
Prior | 27 | ||
Total | 5,552 | $ 6,800 | |
2024 | (1,312) | ||
2023 | (62,453) | ||
2022 | (1,517) | ||
2021 | 41 | ||
2020 | (41) | ||
Prior | (7) | ||
Total | (65,290) | ||
96+ | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 1,293,647 | 2,628,060 | |
2023 | 1,393,864 | 39,428 | |
2022 | 28,287 | 18,910 | |
2021 | 8,601 | 3,439 | |
2020 | 26 | 9 | |
Prior | 10 | 1 | |
Total | 2,724,435 | 2,689,847 | |
94 – 96 | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 565,028 | 1,104,553 | |
2023 | 614,611 | 7,755 | |
2022 | 3,550 | 439 | |
2021 | 211 | 77 | |
2020 | 15 | 6 | |
Prior | 8 | 2 | |
Total | 1,183,422 | 1,112,832 | |
90 – 94 | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 96,511 | 133,940 | |
2023 | 65,347 | 3,116 | |
2022 | 1,562 | 26 | |
2021 | 18 | 2 | |
2020 | 2 | 4 | |
Prior | 4 | 0 | |
Total | 163,444 | 137,088 | |
Less than 90 | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 12,675 | 13,363 | |
2023 | 2,300 | 1,623 | |
2022 | 1,032 | 4 | |
2021 | 4 | 2 | |
2020 | 2 | 0 | |
Prior | 0 | 0 | |
Total | 16,013 | 14,992 | |
No score | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 133,271 | 335,690 | |
2023 | 232,740 | 59,204 | |
2022 | 41,876 | 11,562 | |
2021 | 6,721 | 489 | |
2020 | 254 | 252 | |
Prior | 215 | 9 | |
Total | $ 415,077 | $ 407,206 |
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 | Sep. 30, 2023 | Jun. 30, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 4,502,391 | $ 4,361,965 |
Loan receivable on nonaccrual status | 29,700 | 20,900 |
Non-delinquent loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 4,270,534 | 4,183,248 |
4 – 29 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 120,564 | 92,876 |
30 – 59 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 46,927 | 36,399 |
60 – 89 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 34,279 | 28,171 |
90 – 119 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 30,087 | $ 21,271 |
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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 204,531 | $ 155,392 |
Provision for loan losses | 92,827 | 61,869 |
Charge-offs | (70,842) | (71,036) |
Recoveries of charged-off receivables | 5,552 | 6,800 |
Balance at end of period | $ 232,068 | $ 153,025 |
Loans Held for Investment and_8
Loans Held for Investment and Allowance for Credit Losses - Amortized Cost Basis of Amortized Loans (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Financing Receivable, Past Due [Line Items] | |
Loans receivables | $ 2,953 |
% of Total Loan Receivables Outstanding | 0.07% |
Payment Deferral | |
Financing Receivable, Past Due [Line Items] | |
Loans receivables | $ 2,801 |
Loan Re-amortization | |
Financing Receivable, Past Due [Line Items] | |
Loans receivables | $ 152 |
Loans Held for Investment and_9
Loans Held for Investment and Allowance for Credit Losses - Aging Analysis of Modified Loans (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | $ 6,551 |
Payment Deferral | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 6,098 |
Loan Re-amortization | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 453 |
Non-delinquent loans | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 4,783 |
Non-delinquent loans | Payment Deferral | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 4,515 |
Non-delinquent loans | Loan Re-amortization | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 268 |
4 – 29 calendar days past due | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 1,416 |
4 – 29 calendar days past due | Payment Deferral | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 1,304 |
4 – 29 calendar days past due | Loan Re-amortization | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 112 |
30 – 59 calendar days past due | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 204 |
30 – 59 calendar days past due | Payment Deferral | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 139 |
30 – 59 calendar days past due | Loan Re-amortization | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 65 |
60 – 89 calendar days past due | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 81 |
60 – 89 calendar days past due | Payment Deferral | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 75 |
60 – 89 calendar days past due | Loan Re-amortization | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 6 |
90 – 119 calendar days past due | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 67 |
90 – 119 calendar days past due | Payment Deferral | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | 65 |
90 – 119 calendar days past due | Loan Re-amortization | |
Financing Receivable, Past Due [Line Items] | |
Amortized cost basis | $ 2 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) | 3 Months Ended | ||
Feb. 01, 2023 USD ($) | Sep. 30, 2023 USD ($) acquistion | Sep. 30, 2022 acquistion | |
Business Acquisition [Line Items] | |||
Number of businesses acquired | acquistion | 0 | 0 | |
Butter Holdings, Ltd. | |||
Business Acquisition [Line Items] | |||
Cash | $ 14,863,000 | ||
Settlement of subordinated secured notes | $ 1,475,000 | ||
Transaction costs | $ 0 |
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 | Sep. 30, 2023 | Jun. 30, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 536,418 | $ 542,571 | |
Butter Holdings, Ltd. | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 16,337 | ||
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 |
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] | |
Lending license | $ 9,243 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2021 | Jan. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Allowance for accounts receivable | $ 11,000,000 | $ 12,900,000 | ||||
Depreciation | 26,000,000 | $ 13,500,000 | ||||
Impairment expense on leasehold improvements | 0 | 0 | ||||
Goodwill impairment loss | 0 | 0 | ||||
Amortization of intangible assets | 14,200,000 | 7,400,000 | ||||
Impairment of intangible assets | 0 | 0 | ||||
Vesting of warrants exercised | $ 133,500,000 | |||||
Commercial agreement term | 3 years 2 months 12 days | |||||
Amortization of sales and marketing expense | 10,400,000 | 10,400,000 | ||||
Extension of remaining expected benefit period | 2 years | |||||
Amortization of commercial agreement assets | 21,557,000 | 21,557,000 | ||||
Commercial Agreement Asset, Shopify Inc, Warrants | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Commercial agreement asset, gross | $ 270,600,000 | |||||
Asset amortization period | 4 years | |||||
Amortization of commercial agreement assets | $ 9,000,000 | 9,000,000 | ||||
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 | $ 2,100,000 | $ 2,100,000 |
Balance Sheet Components - Prop
Balance Sheet Components - Property, Equipment and Software (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total Property, equipment and software, at cost | $ 481,109 | $ 414,205 |
Less: Accumulated depreciation and amortization | (142,360) | (124,070) |
Total property, equipment and software, net | 338,749 | 290,135 |
Internally developed software | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, equipment and software, at cost | 443,992 | 377,301 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, equipment and software, at cost | 20,279 | 20,214 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, equipment and software, at cost | 10,252 | 10,187 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, equipment and software, at cost | $ 6,586 | $ 6,503 |
Balance Sheet Components - Good
Balance Sheet Components - Goodwill and Intangible Assets (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance as of June 30, 2023 | $ 542,571 |
Adjustments | (6,152) |
Balance as of September 30, 2023 | $ 536,418 |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (83,170) | $ (69,263) |
Total amortization expense | 8,180 | |
Total intangible assets, gross | 102,998 | 103,697 |
Total intangible assets | 19,828 | 34,434 |
Trademarks, licenses and domains, indefinite | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles | 11,298 | 11,621 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles | 350 | 350 |
Merchant relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 37,914 | 38,129 |
Accumulated Amortization | (35,129) | (27,637) |
Total amortization expense | $ 2,786 | $ 10,492 |
Weighted Average Remaining Useful Life (in years) | 3 months 18 days | 7 months 6 days |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 39,488 | $ 39,626 |
Accumulated Amortization | (34,935) | (30,653) |
Total amortization expense | $ 4,553 | $ 8,973 |
Weighted Average Remaining Useful Life (in years) | 4 months 24 days | 7 months 6 days |
Assembled workforce | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 12,490 | $ 12,490 |
Accumulated Amortization | (12,079) | (9,983) |
Total amortization expense | $ 410 | $ 2,507 |
Weighted Average Remaining Useful Life (in years) | 1 month 6 days | 3 months 18 days |
Trademarks and domains, definite | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,458 | $ 1,481 |
Accumulated Amortization | (1,027) | (990) |
Total amortization expense | $ 431 | $ 491 |
Weighted Average Remaining Useful Life (in years) | 1 year 6 months | 1 year 8 months 12 days |
Balance Sheet Components - Expe
Balance Sheet Components - Expected Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Balance Sheet Related Disclosures [Abstract] | |
2024 (remaining nine months) | $ 6,646 |
2025 | 1,365 |
2026 | 155 |
2027 | 15 |
2028 and thereafter | 0 |
Total amortization expense | $ 8,180 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Processing reserves | $ 65,421 | $ 60,039 |
Equity securities, at cost | 51,870 | 43,172 |
Derivative instruments | 41,216 | 50,545 |
Operating lease right-of-use assets | 27,227 | 30,171 |
Prepaid payroll taxes for stock-based compensation | 29,508 | 14,336 |
Prepaid expenses | 25,544 | 35,626 |
Other assets | 51,398 | 44,725 |
Total other assets | $ 292,184 | $ 278,614 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Operating lease liability | $ 49,071 | $ 52,557 |
Accrued expenses | 42,173 | 50,704 |
Collateral held for derivative instruments | 41,401 | 53,267 |
Other liabilities | 27,683 | 24,355 |
Total accrued expenses and other liabilities | $ 160,328 | $ 180,883 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Lessee, Lease, Description [Line Items] | |||
Restricted cash | $ 409,231,000 | $ 383,406,000 | $ 367,917,000 |
Impairment expense | 752,000 | 0 | |
Sublease income | $ 900,000 | $ 900,000 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease termination notice period | 9 months | ||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease termination notice period | 1 year | ||
Remaining lease term | 7 years | ||
Cash collateral and deposits for letters of credit | |||
Lessee, Lease, Description [Line Items] | |||
Restricted cash | $ 8,900,000 | $ 9,700,000 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 2,986 | $ 3,800 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Term and Discount Rate (Details) | Sep. 30, 2023 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 3 years 8 months 12 days |
Weighted average discount rate | 4.80% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Leases [Abstract] | ||
2024 (remaining nine months) | $ 12,380 | |
2025 | 16,317 | |
2026 | 15,371 | |
2027 | 2,680 | |
2028 | 2,185 | |
Thereafter | 5,503 | |
Total lease payments | 54,436 | |
Less imputed interest | (5,365) | |
Present value of total lease liabilities | $ 49,071 | $ 52,557 |
Debt - Aggregate Future Maturit
Debt - Aggregate Future Maturities of Funding Debt (Details) - Funding debt - Revolving facilities - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Line of Credit Facility [Line Items] | ||
Funding debt, year one | $ 183,530 | |
Funding debt, year two | 390,881 | |
Funding debt, year three | 633,452 | |
Funding debt, year four | 0 | |
Funding debt, year five | 26,660 | |
Funding debt, thereafter | 490,488 | |
Total | 1,725,011 | |
Deferred debt issuance costs | (15,260) | $ (10,900) |
Total funding debt, net of deferred debt issuance costs | $ 1,709,751 |
Debt - Additional Information (
Debt - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||
Feb. 04, 2022 USD ($) | Nov. 23, 2021 USD ($) day $ / shares | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 07, 2023 USD ($) | May 16, 2022 USD ($) | |
Line of Credit Facility [Line Items] | |||||||
Loans held for investment | $ 4,502,391 | $ 4,361,965 | |||||
Fair value, liability, recurring basis, unobservable input reconciliation, gain (loss), statement of income or comprehensive income | Other income, net | ||||||
Remaining life | 38 months | ||||||
Borrowings outstanding | $ 1,709,751 | 1,764,812 | |||||
2022-X1 | Senior Pledged Securities | |||||||
Line of Credit Facility [Line Items] | |||||||
Investment interest rate | 7.52% | ||||||
2022-X1 | Residual Certificate Pledged Securities | |||||||
Line of Credit Facility [Line Items] | |||||||
Investment interest rate | 7.52% | ||||||
Convertible senior notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Conversion ratio | 0.0046371 | ||||||
Authorized repurchase amount | $ 800,000 | ||||||
Interest expense | $ 900 | $ 1,100 | |||||
Convertible senior notes | Conversion Period One | |||||||
Line of Credit Facility [Line Items] | |||||||
Threshold trading days | day | 20 | ||||||
Threshold consecutive trading days | day | 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 | day | 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 | 1,600,000 | 1,700,000 | |||||
Funding debt | PayBright Funding Facilities | Asset Pledged as Collateral | |||||||
Line of Credit Facility [Line Items] | |||||||
Loans held for investment | 429,000 | 412,800 | |||||
Repurchase Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Liability component of debt outstanding | 5,900 | 11,000 | |||||
Repurchase Agreement | 2021-Z1 and 2021-Z2 | Other Receivables | |||||||
Line of Credit Facility [Line Items] | |||||||
Pledged securities | 14,000 | $ 18,900 | |||||
Convertible Debt | Convertible senior notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Liability component of debt outstanding | 1,415,080 | ||||||
Securitization issued | $ 1,725,000 | 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 | ||||||
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 | ||||||
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 | 1,725,011 | ||||||
Liability component of debt outstanding | $ 1,709,751 | ||||||
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 | ||||||
Funding debt | 1,400,000 | ||||||
Remaining amount available of credit facility | 2,600,000 | ||||||
Revolving facilities | Funding debt | PayBright Funding Facilities | |||||||
Line of Credit Facility [Line Items] | |||||||
Aggregate commitment amount of credit facility | 505,500 | ||||||
Funding debt | 360,400 | ||||||
Remaining amount available of credit facility | $ 145,100 | ||||||
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 | 1.75% | ||||||
Minimum | Revolving facilities | Funding debt | Commercial paper rate | PayBright Funding Facilities | |||||||
Line of Credit Facility [Line Items] | |||||||
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 | 86% | ||||||
Basis spread | 2.20% | ||||||
Maximum | Revolving facilities | Funding debt | Commercial paper rate | PayBright Funding Facilities | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread | 4.25% |
Debt - Convertible Notes Outsta
Debt - Convertible Notes Outstanding (Details) - Convertible senior notes - Convertible Debt - USD ($) $ in Thousands | Sep. 30, 2023 | Nov. 23, 2021 |
Line of Credit Facility [Line Items] | ||
Principal Amount | $ 1,425,900 | $ 1,725,000 |
Unamortized Discount and Issuance Cost | (10,820) | |
Total funding debt, net of deferred debt issuance costs | $ 1,415,080 |
Securitization and Variable I_3
Securitization and Variable Interest Entities - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Fair value | $ 1,052,645 | $ 1,289,920 |
Other Assets | ||
Debt Instrument [Line Items] | ||
Pledged securities | $ 200 | |
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 | Sep. 30, 2023 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Assets | $ 8,407,149 | $ 8,155,615 |
Liabilities | 5,840,349 | 5,621,432 |
Consolidated Variable Interest Entities | ||
Debt Instrument [Line Items] | ||
Assets | 4,372,282 | 4,203,632 |
Liabilities | 4,089,075 | 3,856,194 |
Net Assets | 283,207 | 347,438 |
Consolidated Variable Interest Entities | Warehouse credit facilities | ||
Debt Instrument [Line Items] | ||
Assets | 1,915,257 | 1,930,641 |
Liabilities | 1,684,638 | 1,686,359 |
Net Assets | 230,619 | 244,282 |
Consolidated Variable Interest Entities | Securitizations | ||
Debt Instrument [Line Items] | ||
Assets | 2,457,025 | 2,272,991 |
Liabilities | 2,404,437 | 2,169,835 |
Net Assets | $ 52,588 | $ 103,156 |
Securitizations and Variable _2
Securitizations and Variable Interest Entities - Aggregate Carrying Value of Financial Assets and Liabilities from Unconsolidated VIEs (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Assets | $ 8,407,149 | $ 8,155,615 |
Liabilities | 5,840,349 | 5,621,432 |
Variable Interest Entity, Not Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Assets | 281,516 | 380,547 |
Liabilities | 271,049 | 367,788 |
Net Assets | 10,467 | 12,759 |
Maximum Exposure to Losses | 14,160 | 19,149 |
Variable Interest Entity, Not Primary Beneficiary | Securitizations | ||
Debt Instrument [Line Items] | ||
Assets | 281,516 | 380,547 |
Liabilities | 271,049 | 367,788 |
Net Assets | 10,467 | 12,759 |
Maximum Exposure to Losses | $ 14,160 | $ 19,149 |
Investments - Marketable Securi
Investments - Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Marketable Securities [Line Items] | ||
Marketable securities | $ 1,406,919 | $ 1,387,049 |
Money market funds | Cash and cash equivalents: | ||
Marketable Securities [Line Items] | ||
Marketable securities | 354,274 | 97,129 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Marketable securities | 163,160 | 266,193 |
Commercial paper | Cash and cash equivalents: | ||
Marketable Securities [Line Items] | ||
Marketable securities | 31,015 | 54,402 |
Agency bonds | ||
Marketable Securities [Line Items] | ||
Marketable securities | 50,552 | 84,276 |
Agency bonds | Cash and cash equivalents: | ||
Marketable Securities [Line Items] | ||
Marketable securities | 0 | 60,865 |
Certificates of deposit | ||
Marketable Securities [Line Items] | ||
Marketable securities | 86,503 | 97,224 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Marketable securities | 248,394 | 256,772 |
Municipal bonds | ||
Marketable Securities [Line Items] | ||
Marketable securities | 3,213 | 0 |
Government bonds, US | ||
Marketable Securities [Line Items] | ||
Marketable securities | 446,626 | 441,096 |
Government bonds, Non-US | ||
Marketable Securities [Line Items] | ||
Marketable securities | 9,199 | 9,151 |
Securitization notes receivable and certificates | ||
Marketable Securities [Line Items] | ||
Marketable securities | 13,983 | 18,913 |
Other | ||
Marketable Securities [Line Items] | ||
Marketable securities | $ 0 | $ 1,028 |
Investments - Securities Availa
Investments - Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,060,676 | $ 1,299,277 |
Gross Unrealized Gains | 64 | 190 |
Gross Unrealized Losses | (7,615) | (9,094) |
Allowance for Credit Losses | (480) | (453) |
Fair value | 1,052,645 | 1,289,920 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 86,580 | 97,399 |
Gross Unrealized Gains | 20 | 11 |
Gross Unrealized Losses | (97) | (186) |
Allowance for Credit Losses | 0 | 0 |
Fair value | 86,503 | 97,224 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 251,642 | 260,627 |
Gross Unrealized Gains | 24 | 55 |
Gross Unrealized Losses | (3,272) | (3,910) |
Allowance for Credit Losses | 0 | 0 |
Fair value | 248,394 | 256,772 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 194,294 | 320,882 |
Gross Unrealized Gains | 5 | 34 |
Gross Unrealized Losses | (124) | (321) |
Allowance for Credit Losses | 0 | 0 |
Fair value | 194,175 | 320,595 |
Agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 50,816 | 145,312 |
Gross Unrealized Gains | 1 | 62 |
Gross Unrealized Losses | (265) | (233) |
Allowance for Credit Losses | 0 | 0 |
Fair value | 50,552 | 145,141 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,210 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | 0 | |
Allowance for Credit Losses | 0 | |
Fair value | 3,213 | |
Government bonds, Non-US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,325 | 9,330 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (126) | (179) |
Allowance for Credit Losses | 0 | 0 |
Fair value | 9,199 | 9,151 |
Government bonds, US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 450,056 | 444,858 |
Gross Unrealized Gains | 11 | 28 |
Gross Unrealized Losses | (3,441) | (3,790) |
Allowance for Credit Losses | 0 | 0 |
Fair value | 446,626 | 441,096 |
Securitization notes receivable and certificates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,753 | 19,841 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (290) | (475) |
Allowance for Credit Losses | (480) | (453) |
Fair value | 13,983 | 18,913 |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,028 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Allowance for Credit Losses | 0 | |
Fair value | 0 | 1,028 |
Commercial Paper & Agency Bonds | Cash and Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | $ 31,000 | $ 115,300 |
Investments - Available for Sal
Investments - Available for Sale Securities with Unrealized Losses (Details) $ in Thousands | Sep. 30, 2023 USD ($) position | Jun. 30, 2023 USD ($) position |
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | $ 623,044 | $ 659,305 |
Less than or equal to 1 year, unrealized losses | (3,103) | (4,027) |
Greater than 1 year, fair value | 213,666 | 205,457 |
Greater than 1 year, unrealized losses | (4,222) | (4,592) |
Total, fair value | 836,710 | 864,762 |
Total, unrealized losses | $ (7,325) | $ (8,619) |
Number of positions with unrealized losses | position | 121,000 | 142,000 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | $ 59,252 | $ 63,489 |
Less than or equal to 1 year, unrealized losses | (97) | (186) |
Greater than 1 year, fair value | 0 | 0 |
Greater than 1 year, unrealized losses | 0 | 0 |
Total, fair value | 59,252 | 63,489 |
Total, unrealized losses | (97) | (186) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | 76,635 | 92,171 |
Less than or equal to 1 year, unrealized losses | (456) | (834) |
Greater than 1 year, fair value | 133,377 | 131,762 |
Greater than 1 year, unrealized losses | (2,816) | (3,076) |
Total, fair value | 210,012 | 223,933 |
Total, unrealized losses | (3,272) | (3,910) |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | 138,099 | 164,037 |
Less than or equal to 1 year, unrealized losses | (124) | (321) |
Greater than 1 year, fair value | 0 | 0 |
Greater than 1 year, unrealized losses | 0 | 0 |
Total, fair value | 138,099 | 164,037 |
Total, unrealized losses | (124) | (321) |
Agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | 47,615 | 44,214 |
Less than or equal to 1 year, unrealized losses | (265) | (233) |
Greater than 1 year, fair value | 0 | 0 |
Greater than 1 year, unrealized losses | 0 | 0 |
Total, fair value | 47,615 | 44,214 |
Total, unrealized losses | (265) | (233) |
Government bonds, Non-US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | 3,060 | 3,061 |
Less than or equal to 1 year, unrealized losses | (66) | (58) |
Greater than 1 year, fair value | 6,138 | 6,089 |
Greater than 1 year, unrealized losses | (60) | (121) |
Total, fair value | 9,198 | 9,150 |
Total, unrealized losses | (126) | (179) |
Government bonds, US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than or equal to 1 year, fair value | 298,383 | 292,333 |
Less than or equal to 1 year, unrealized losses | (2,095) | (2,395) |
Greater than 1 year, fair value | 74,151 | 67,606 |
Greater than 1 year, unrealized losses | (1,346) | (1,395) |
Total, fair value | 372,534 | 359,939 |
Total, unrealized losses | $ (3,441) | $ (3,790) |
Investments - Length of Contrac
Investments - Length of Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | $ 815,977 | $ 1,034,222 |
Within 1 year, fair value | 813,220 | 1,030,270 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 244,699 | 265,055 |
Greater than 1 year, less than or equal to 5 years, fair value | 239,425 | 259,650 |
Amortized Cost | 1,060,676 | 1,299,277 |
Total, amortized cost | 1,060,676 | 1,299,277 |
Fair Value | 1,052,645 | 1,289,920 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 86,580 | 97,399 |
Within 1 year, fair value | 86,503 | 97,224 |
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 | 86,580 | 97,399 |
Fair Value | 86,503 | 97,224 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 159,282 | 173,523 |
Within 1 year, fair value | 158,000 | 171,634 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 92,360 | 87,104 |
Greater than 1 year, less than or equal to 5 years, fair value | 90,394 | 85,138 |
Amortized Cost | 251,642 | 260,627 |
Fair Value | 248,394 | 256,772 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 194,294 | 320,882 |
Within 1 year, fair value | 194,175 | 320,595 |
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 | 194,294 | 320,882 |
Fair Value | 194,175 | 320,595 |
Agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 37,596 | 130,176 |
Within 1 year, fair value | 37,534 | 130,165 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 13,220 | 15,136 |
Greater than 1 year, less than or equal to 5 years, fair value | 13,018 | 14,976 |
Amortized Cost | 50,816 | 145,312 |
Fair Value | 50,552 | 145,141 |
Government bonds, Non-US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 6,199 | 4,063 |
Within 1 year, fair value | 6,139 | 3,996 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 3,126 | 5,267 |
Greater than 1 year, less than or equal to 5 years, fair value | 3,060 | 5,155 |
Amortized Cost | 9,325 | 9,330 |
Fair Value | 9,199 | 9,151 |
Government bonds, US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 332,026 | 308,179 |
Within 1 year, fair value | 330,869 | 306,656 |
Greater than 1 year, less than or equal to 5 years, amortized cost | 118,030 | 136,679 |
Greater than 1 year, less than or equal to 5 years, fair value | 115,757 | 134,440 |
Amortized Cost | 450,056 | 444,858 |
Fair Value | 446,626 | 441,096 |
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 | 14,753 | 19,841 |
Greater than 1 year, less than or equal to 5 years, fair value | 13,983 | 18,913 |
Amortized Cost | 14,753 | 19,841 |
Total, amortized cost | 14,753 | 19,841 |
Fair Value | 13,983 | 18,913 |
Other | ||
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 | 0 | 1,028 |
Greater than 1 year, less than or equal to 5 years, fair value | 0 | 1,028 |
Amortized Cost | 1,028 | |
Total, amortized cost | 0 | 1,028 |
Fair Value | 0 | 1,028 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 0 | |
Within 1 year, fair value | 0 | |
Greater than 1 year, less than or equal to 5 years, amortized cost | 3,210 | |
Greater than 1 year, less than or equal to 5 years, fair value | 3,213 | |
Amortized Cost | 3,210 | |
Fair Value | 3,213 | |
Commercial Paper & Agency Bonds | Cash and cash equivalents: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 31,000 | $ 115,300 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |||
Gross proceeds from matured or redeemed securities | $ 381,800 | $ 1,700,000 | |
Equity securities, at cost | $ 51,870 | $ 43,172 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) | 3 Months Ended |
Sep. 30, 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 | Sep. 30, 2023 | Jun. 30, 2023 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 2,394,613 | $ 2,902,944 |
Derivative Assets | 41,216 | 50,545 |
Derivative Liabilities | 0 | 0 |
Derivatives designated as cash flow hedges | Interest rate contracts - cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 500,000 | 800,000 |
Derivative Assets | 573 | 751 |
Derivative Liabilities | 0 | 0 |
Derivatives not designated as hedges | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 1,894,613 | 2,102,944 |
Derivative Assets | 40,643 | 49,794 |
Derivative Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Impact of Cash Flow Hedges on AOCI (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Expected reclassifications | $ 1,100 |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at beginning of period | 751 |
Changes in fair value | 1,014 |
Amounts reclassified into earnings | (251) |
Balance at end of period | $ 1,514 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Derivatives designated as cash flow hedges | Funding costs | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
The effects of cash flow hedging | $ 251 | $ 0 |
Derivatives not designated as hedges | Other income, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
The effects of derivatives not designated in hedging relationships | $ 3,979 | $ 30,666 |
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 ($) | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Servicing assets | $ 600,000 | $ 900,000 | ||
Derivative instruments | 41,216,000 | 50,545,000 | ||
Servicing liabilities | 1,851,000 | 1,392,000 | $ 3,152,000 | $ 2,673,000 |
Risk sharing liability | 0 | 0 | ||
Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Risk sharing liability | 500,000 | 0 | ||
Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative instruments | 3,800,000 | 0 | ||
Money market funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 354,274,000 | 97,129,000 | ||
Certificates of deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash | 86,503,000 | 97,224,000 | ||
Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash | 248,394,000 | 256,772,000 | ||
Commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 31,015,000 | 54,402,000 | ||
Restricted cash | 163,160,000 | 266,193,000 | ||
Agency bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 60,865,000 | |||
Restricted cash | 50,552,000 | 84,276,000 | ||
Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash | 3,213,000 | |||
Government bonds, Non-US | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash | 9,199,000 | 9,151,000 | ||
Government bonds, US | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash | 446,626,000 | 441,096,000 | ||
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securitization notes receivable and residual trust certificates | 13,983,000 | 18,913,000 | ||
Other | 1,028,000 | |||
Servicing assets | 569,000 | 880,000 | ||
Derivative instruments | 41,216,000 | 50,545,000 | ||
Total assets | 1,452,518,000 | 1,438,474,000 | ||
Servicing liabilities | 1,851,000 | 1,392,000 | ||
Performance fee liability | 1,427,000 | 1,581,000 | ||
Residual trust certificates, held by third-parties | 93,000 | 125,000 | ||
Profit share liability | 1,079,000 | 1,832,000 | ||
Total liabilities | 4,921,000 | 4,930,000 | ||
Recurring | Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Risk sharing liability | 471,000 | |||
Recurring | Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative instruments | 3,814,000 | |||
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 | 354,274,000 | 97,129,000 | ||
Level 1 | Certificates of deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
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 | 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 | Agency bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Restricted cash | 0 | 0 | ||
Level 1 | Municipal 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 | Government bonds, 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 | 354,274,000 | 97,129,000 | ||
Servicing liabilities | 0 | 0 | ||
Performance fee liability | 0 | 0 | ||
Residual trust certificates, held by third-parties | 0 | 0 | ||
Profit share liability | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Level 1 | Recurring | Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Risk sharing liability | 0 | |||
Level 1 | Recurring | Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative instruments | 0 | |||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other | 8,995,000 | 9,325,000 | ||
Total assets | 9,140,000 | 9,401,000 | ||
Total liabilities | 1,074,772,000 | 1,053,866,000 | ||
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 | Certificates of deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash | 86,503,000 | 97,224,000 | ||
Level 2 | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash | 248,394,000 | 256,772,000 | ||
Level 2 | Commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 31,015,000 | 54,402,000 | ||
Restricted cash | 163,160,000 | 266,193,000 | ||
Level 2 | Agency bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 60,865,000 | |||
Restricted cash | 50,552,000 | 84,276,000 | ||
Level 2 | Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash | 3,213,000 | |||
Level 2 | Government bonds, Non-US | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash | 9,199,000 | 9,151,000 | ||
Level 2 | Government bonds, US | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash | 446,626,000 | 441,096,000 | ||
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 | 41,216,000 | 50,545,000 | ||
Total assets | 1,079,878,000 | 1,320,524,000 | ||
Servicing liabilities | 0 | 0 | ||
Performance fee liability | 0 | 0 | ||
Residual trust certificates, held by third-parties | 0 | 0 | ||
Profit share liability | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Level 2 | Recurring | Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Risk sharing liability | 0 | |||
Level 2 | Recurring | Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative instruments | 0 | |||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other | 0 | 0 | ||
Total assets | 4,482,857,000 | 4,397,931,000 | ||
Total liabilities | 4,108,877,000 | 3,526,407,000 | ||
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 | Certificates of deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
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 | 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 | Agency bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Restricted cash | 0 | 0 | ||
Level 3 | Municipal 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 | Government bonds, 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 | 13,983,000 | 18,913,000 | ||
Other | 1,028,000 | |||
Servicing assets | 569,000 | 880,000 | ||
Derivative instruments | 0 | 0 | ||
Total assets | 18,366,000 | 20,821,000 | ||
Servicing liabilities | 1,851,000 | 1,392,000 | ||
Performance fee liability | 1,427,000 | 1,581,000 | ||
Residual trust certificates, held by third-parties | 93,000 | 125,000 | ||
Profit share liability | 1,079,000 | 1,832,000 | ||
Total liabilities | 4,921,000 | $ 4,930,000 | ||
Level 3 | Recurring | Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Risk sharing liability | 471,000 | |||
Level 3 | Recurring | Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative instruments | $ 3,814,000 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unpaid balance on loans sold with retained servicing rights | $ 2,200,000,000 | $ 2,000,000,000 | ||
Unpaid principal balance on serviced sold loans | 4,300,000,000 | $ 4,100,000,000 | ||
Servicing income | 20,157,000 | 21,370,000 | ||
Servicing assets | 600,000 | 900,000 | ||
Servicing liabilities | $ 1,900,000 | 1,400,000 | ||
Economic risk retention | 5% | |||
Fair value, liability, recurring basis, unobservable input reconciliation, gain (loss), statement of income or comprehensive income | Other income, net | |||
Notional Amount | $ 2,394,613,000 | 2,902,944,000 | ||
Derivative Assets | 41,216,000 | 50,545,000 | ||
Derivative Liabilities | 0 | 0 | ||
Credit Risk Contract | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notional Amount | 1,300,000,000 | |||
Loss sharing arrangement, maximum exposure to losses | 27,100,000 | |||
Risk Sharing Assets & Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loss sharing arrangement, maximum exposure to losses | 3,800,000 | |||
Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Assets | 3,800,000 | 0 | ||
Senior Notes and Residual Trust Certificates | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Aggregate fair value | 13,983,000 | $ 41,503,000 | 18,913,000 | $ 51,678,000 |
Risk Sharing Arrangement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Aggregate fair value | 471,000 | 0 | ||
Derivative Liabilities | $ 500,000 | $ 0 |
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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Fair value at beginning of period | $ 880 | $ 1,192 |
Initial transfers of financial assets | 0 | 29 |
Subsequent changes in fair value | (311) | (79) |
Fair value at end of period | $ 569 | $ 1,142 |
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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing Liability at Fair Value, Amount [Roll Forward] | ||
Fair value at beginning of period | $ 1,392 | $ 2,673 |
Initial transfers of financial assets | 1,389 | 1,988 |
Subsequent changes in fair value | (930) | (1,509) |
Fair value at end of period | $ 1,851 | $ 3,152 |
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) | Sep. 30, 2023 | Jun. 30, 2023 |
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 | 0.0092 | 0.0092 |
Servicing liability, measurement input | 0.0092 | 0.0092 |
Adequate compensation | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0231 | 0.0231 |
Servicing liability, measurement input | 0.0231 | 0.0231 |
Adequate compensation | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0092 | 0.0093 |
Servicing liability, measurement input | 0.0229 | 0.0227 |
Gross default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0244 | 0.0215 |
Servicing liability, measurement input | 0.0602 | 0.0950 |
Gross default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.1259 | 0.1120 |
Servicing liability, measurement input | 0.1932 | 0.2154 |
Gross default rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0381 | 0.0336 |
Servicing liability, measurement input | 0.1300 | 0.1364 |
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 | Sep. 30, 2023 | Jun. 30, 2023 |
Gross default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, effect of 25% increase in measurement input | $ 0 | $ 0 |
Servicing asset, effect of 50% increase in measurement input | 0 | (1) |
Servicing liability, effect of 25% increase in measurement input | 6 | (9) |
Servicing liability, effect of 50% increase in measurement input | (5) | (19) |
Adequate compensation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, effect of 10% increase in measurement input | (266) | (382) |
Servicing asset, effect of 20% increase in measurement input | (531) | (764) |
Servicing liability, effect of 10% increase in measurement input | 3,313 | 2,798 |
Servicing liability, effect of 20% increase in measurement input | 6,608 | 5,597 |
Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, effect of 25% increase in measurement input | (18) | (29) |
Servicing asset, effect of 50% increase in measurement input | (34) | (55) |
Servicing liability, effect of 25% increase in measurement input | (15) | (19) |
Servicing liability, effect of 50% increase in measurement input | $ (45) | $ (38) |
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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 1,581 | $ 1,710 |
Purchases of loans | 376 | 479 |
Settlements paid | (484) | 0 |
Subsequent changes in fair value | (46) | (426) |
Fair value at end of period | $ 1,427 | $ 1,763 |
Fair Value of Financial Asse_10
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Performance Fee Liability (Details) | Sep. 30, 2023 | Jun. 30, 2023 |
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 | 0.0450 | 0.0450 |
Minimum | Default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0179 | 0.0179 |
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 | 0.0450 | 0.0450 |
Maximum | Default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0371 | 0.0334 |
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 | 0.0450 | 0.0450 |
Weighted Average | Default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0289 | 0.0286 |
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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 125 | $ 377 |
Repayments | (38) | (99) |
Subsequent changes in fair value | 6 | 30 |
Fair value at end of period | $ 93 | $ 308 |
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 | Sep. 30, 2023 | Jun. 30, 2023 |
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 | 0.0077 | 0.0092 |
Minimum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.1890 | 0.0770 |
Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.1000 | 0.1000 |
Maximum | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0077 | 0.0092 |
Maximum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.1890 | 0.0770 |
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 | 0.0077 | 0.0092 |
Weighted Average | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.1890 | 0.0770 |
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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 18,913 | $ 51,678 |
Cash received (due to payments or sales) | (5,261) | (9,772) |
Change in unrealized gain (loss) | 185 | (648) |
Accrued interest | 172 | 453 |
Reversal of (impairment on) securities available for sale | (26) | (208) |
Fair value at end of period | $ 13,983 | $ 41,503 |
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 | Sep. 30, 2023 | Jun. 30, 2023 |
Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0621 | 0.0572 |
Minimum | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0091 | 0.0125 |
Minimum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0670 | 0.0590 |
Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.2984 | 0.2984 |
Maximum | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.1461 | 0.1496 |
Maximum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.2860 | 0.2990 |
Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0734 | 0.0730 |
Weighted Average | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.0263 | 0.0302 |
Weighted Average | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual trust certificates, measurement input | 0.1759 | 0.1810 |
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 | Sep. 30, 2023 | Jun. 30, 2023 |
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 | $ (156) | $ (218) |
Securitization notes and residual trust certificates, effect of 50% increase (decrease) in measurement input | (306) | (429) |
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 | (108) | (165) |
Securitization notes and residual trust certificates, effect of 50% increase (decrease) in measurement input | (157) | (243) |
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 | (20) | (30) |
Securitization notes and residual trust certificates, effect of 50% increase (decrease) in measurement input | $ (40) | $ (59) |
Fair Value of Financial Asse_16
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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 1,832 | $ 1,987 |
Facilitation of loans | 928 | 1,133 |
Actual performance | 1,672 | (2,876) |
Subsequent changes in fair value | (3,353) | 1,632 |
Fair value at end of period | $ 1,079 | $ 1,876 |
Fair Value of Financial Asse_17
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Profit Share Liability (Details) - Commercial Agreement, Profit Share Liability | Sep. 30, 2023 | Jun. 30, 2023 |
Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Commercial agreement, profit share liability, measurement input | 0.3000 | 0.3000 |
Minimum | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Commercial agreement, profit share liability, measurement input | 0.0073 | 0.0113 |
Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Commercial agreement, profit share liability, measurement input | 0.3000 | 0.3000 |
Maximum | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Commercial agreement, profit share liability, measurement input | 0.0073 | 0.0113 |
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 | Loss rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Commercial agreement, profit share liability, measurement input | 0.0073 | 0.0113 |
Fair Value of Financial Asse_18
Fair Value of Financial Assets and Liabilities - Financial Assets and Liabilities Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Revolving facilities | Funding debt | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Debt issuance cost | $ 15,260 | $ 10,900 |
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 | 145 | 76 |
Loans held for investment, net | 0 | 0 |
Other assets | 8,995 | 9,325 |
Total assets | 9,140 | 9,401 |
Convertible senior notes, net | 1,074,772 | 1,053,866 |
Notes issued by securitization trusts | 0 | 0 |
Funding debt | 0 | 0 |
Total liabilities | 1,074,772 | 1,053,866 |
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 | 4,482,857 | 4,397,931 |
Other assets | 0 | 0 |
Total assets | 4,482,857 | 4,397,931 |
Convertible senior notes, net | 0 | 0 |
Notes issued by securitization trusts | 2,383,850 | 1,748,772 |
Funding debt | 1,725,027 | 1,777,635 |
Total liabilities | 4,108,877 | 3,526,407 |
Carrying Amount | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | 145 | 76 |
Loans held for investment, net | 4,317,354 | 4,198,431 |
Other assets | 8,995 | 9,325 |
Total assets | 4,326,494 | 4,207,832 |
Convertible senior notes, net | 1,415,080 | 1,414,208 |
Notes issued by securitization trusts | 2,398,758 | 2,165,577 |
Funding debt | 1,725,011 | 1,775,698 |
Total liabilities | 5,538,849 | 5,355,483 |
Balance at Fair Value | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | 145 | 76 |
Loans held for investment, net | 4,482,857 | 4,397,931 |
Other assets | 8,995 | 9,325 |
Total assets | 4,491,996 | 4,407,332 |
Convertible senior notes, net | 1,074,772 | 1,053,866 |
Notes issued by securitization trusts | 2,383,850 | 1,748,772 |
Funding debt | 1,725,027 | 1,777,635 |
Total liabilities | $ 5,183,649 | $ 4,580,273 |
Fair Value of Financial Asse_19
Fair Value of Financial Assets and Liabilities - Fair Value Activity for Risk Sharing Arrangements (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Risk Sharing Arrangement | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value at beginning of period | $ 0 |
Initial transfers of financial assets | 3,814 |
Subsequent changes in fair value | 0 |
Fair value at end of period | 3,814 |
Risk Sharing Arrangement | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value at beginning of period | 0 |
Initial transfers of financial liabilities | 0 |
Subsequent changes in fair value | 471 |
Fair value at end of period | $ 471 |
Fair Value of Financial Asse_20
Fair Value of Financial Assets and Liabilities - Significant Unobservable Inputs Used in Risk Sharing Arrangement (Details) | Sep. 30, 2023 |
Minimum | Discount rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing assets | 0.2000 |
Minimum | Discount rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing liabilities | 0.2000 |
Minimum | Loss rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing assets | 0.0936 |
Minimum | Loss rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing liabilities | 0.0400 |
Minimum | Prepayment rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing assets | 0.3190 |
Maximum | Discount rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing assets | 0.2000 |
Maximum | Discount rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing liabilities | 0.2000 |
Maximum | Loss rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing assets | 0.0936 |
Maximum | Loss rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing liabilities | 0.0516 |
Maximum | Prepayment rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing assets | 0.3190 |
Weighted Average | Discount rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing assets | 0.2000 |
Weighted Average | Discount rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing liabilities | 0.2000 |
Weighted Average | Loss rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing assets | 0.0936 |
Weighted Average | Loss rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing liabilities | 0.0435 |
Weighted Average | Prepayment rate | Risk Sharing Arrangement | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk sharing assets | 0.3190 |
Fair Value of Financial Asse_21
Fair Value of Financial Assets and Liabilities - Effect of Adverse Changes in Estimates on Risk Sharing Arrangements (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Risk Sharing Arrangement | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Loss rate increase of 25% | $ 9,908,013 |
Loss rate increase of 50% | 16,992,497 |
Discount rate increase of 25% | (23,519) |
Discount rate increase of 50% | (45,008) |
Risk Sharing Arrangement | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Prepayment rate increase of 25% | (243,524) |
Prepayment rate increase of 50% | (477,053) |
Loss rate increase of 25% | (1,330,723) |
Loss rate increase of 50% | (2,642,491) |
Discount rate increase of 25% | (273,602) |
Discount rate increase of 50% | $ (516,753) |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Issuance (Details) - shares | Sep. 30, 2023 | Jun. 30, 2023 |
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 100,509,344 | 89,817,462 |
Available outstanding under equity compensation plans | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 53,347,042 | 52,572,230 |
Available for future grant under equity compensation plans | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 47,162,302 | 37,245,232 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2021 USD ($) | Sep. 30, 2023 USD ($) vote class | Sep. 30, 2022 USD ($) | Jun. 30, 2022 $ / shares shares | |
Class of Stock [Line Items] | ||||
Number of classes of common stock | class | 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 | $ 106.3 | $ 119.1 | ||
Amortization expense of warrants sold | 10.4 | 10.4 | ||
Expenses on sale of warrants | $ 95.9 | $ 108.7 | ||
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 | |||
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 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 34 Months Ended | ||||
Nov. 18, 2020 shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) shares | Jun. 30, 2023 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) | 100,509,344 | 100,509,344 | 89,817,462 | |||
Weighted-average fair value of employee options granted (in USD per share) | $ / shares | $ 16.10 | |||||
Right to purchase shares (in shares) | 1,743,514 | |||||
Stock-based compensation expense | $ | $ 112,359 | $ 119,808 | ||||
Class A common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of common stock available for issuance (in shares) | 47,162,302 | 47,162,302 | 37,245,232 | |||
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) | 53,347,042 | 53,347,042 | 52,572,230 | |||
Vesting period | 4 years | |||||
Non-vested stock options, unrecognized compensation cost | $ | $ 56,100 | $ 56,100 | ||||
Weighted-average compensation expense recognition period | 2 years 8 months 12 days | |||||
Equity exercise taxes payable | $ | $ 5,800 | 5,800 | $ 3,400 | |||
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 | $ | $ 93,300 | 93,300 | ||||
Weighted-average compensation expense recognition period | 2 years 3 months 18 days | |||||
Right to purchase shares (in shares) | 12,500,000 | |||||
Stock-based compensation expense | $ | $ 19,600 | $ 27,500 | ||||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted-average compensation expense recognition period | 1 year 10 months 24 days | |||||
Number of vesting conditions | vestingCondition | 2 | |||||
Non-vested RSUs, unrecognized compensation cost | $ | $ 447,700 | $ 447,700 | ||||
Number of awards with modified vesting terms (in shares) | 5,300 | |||||
Modified vesting term expense | $ | $ 28,100 | |||||
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) | 161,051,508 | 161,051,508 | ||||
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) | 13,800,000 | |||||
Number of common stock issued (in shares) | 1,100,000 |
Equity Incentive Plans - Stock
Equity Incentive Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Jun. 30, 2023 | |
Number of Options | ||
Beginning balance (in shares) | 18,505,138 | |
Granted (in shares) | 1,743,514 | |
Exercised (in shares) | (496,213) | |
Forfeited, expired or cancelled (in shares) | (637,348) | |
Ending balance (in shares) | 19,115,091 | 18,505,138 |
Vested and exercisable (in shares) | 14,503,031 | |
Vested and exercisable, and expected to vest thereafter (in shares) | 18,565,399 | |
Weighted Average Exercise Price | ||
Beginning balance (in USD per share) | $ 14.34 | |
Granted (in USD per share) | 23.35 | |
Exercised (in USD per share) | 7.45 | |
Forfeited, expired or cancelled (in USD per share) | 30.13 | |
Ending balance (in USD per share) | 14.81 | $ 14.34 |
Vested and exercisable (in USD per share) | 11.31 | |
Vested and exercisable, and expected to vest thereafter (in USD per share) | $ 14.11 | |
Weighted Average Remaining Contractual Term [Abstract] | ||
Weighted Average Remaining Contractual Term (Years) | 6 years 1 month 13 days | 6 years 25 days |
Vested and exercisable | 5 years 3 months 29 days | |
Vested and exercisable, and expected to vest | 6 years 18 days | |
Aggregate Intrinsic Value [Abstract] | ||
Vested and exercisable | $ 182,338 | |
Vested and exercisable, and expected to vest | $ 187,952 |
Equity Incentive Plans - RSU Ac
Equity Incentive Plans - RSU Activity (Details) - Restricted stock units | 3 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Shares | |
Beginning balance, Non-vested (in shares) | shares | 21,653,196 |
Granted (in shares) | shares | 6,626,710 |
Vested (in shares) | shares | (5,719,367) |
Forfeited, expired or cancelled (in shares) | shares | (828,588) |
Ending balance, Non-vested (in shares) | shares | 21,731,951 |
Weighted Average Grant Date Fair Value | |
Beginning balance, Non-vested (in USD per share) | $ / shares | $ 26.99 |
Granted (in USD per share) | $ / shares | 18.25 |
Vested (in USD per share) | $ / shares | 27.65 |
Forfeited, expired or cancelled (in USD per share) | $ / shares | 26.23 |
Ending balance, Non-vested (in USD per share) | $ / shares | $ 24.18 |
Equity Incentive Plans - Compon
Equity Incentive Plans - Components and Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation in operating expenses | $ 112,359 | $ 119,808 |
Capitalized into property, equipment and software, net | 38,803 | 21,204 |
Total stock-based compensation | 151,162 | 141,012 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation in operating expenses | 70,184 | 67,340 |
Technology and data analytics | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation in operating expenses | 35,135 | 43,428 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation in operating expenses | 5,465 | 8,128 |
Processing and servicing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation in operating expenses | $ 1,575 | $ 912 |
Restructuring and other - Addit
Restructuring and other - Additional Details (Details) $ in Thousands | 3 Months Ended | ||
Feb. 08, 2023 employee | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other | $ 1,665 | $ 0 | |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other | $ 1,700 | ||
Office Closure | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated | employee | 500 | ||
Number of positions eliminated, percent | 19% |
Restructuring and other - Sched
Restructuring and other - Schedule of Restructuring Accrual Activity (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
2023 Restructuring Plan | |
Restructuring Reserve [Roll Forward] | |
Accrued restructuring costs, June 30, 2023 | $ 308 |
Additions | 200 |
Cash paid | (168) |
Adjustments | (90) |
Accrued restructuring costs, September 30, 2023 | 250 |
Other Exit and Disposal Activities | |
Restructuring Reserve [Roll Forward] | |
Accrued restructuring costs, June 30, 2023 | 2,116 |
Additions | 1,633 |
Cash paid | 0 |
Adjustments | 0 |
Accrued restructuring costs, September 30, 2023 | $ 3,749 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax (benefit) expense | $ 1,043 | $ (180) |
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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||
Net loss | $ (171,783) | $ (251,269) |
Denominator: | ||
Basic weighted average common shares outstanding (in shares) | 303,839,670 | 290,929,270 |
Diluted weighted average common shares outstanding (in shares) | 303,839,670 | 290,929,270 |
Net loss per share: | ||
Basic (in USD per share) | $ (0.57) | $ (0.86) |
Diluted (in USD per share) | $ (0.57) | $ (0.86) |
Class A common stock | ||
Numerator: | ||
Net loss | $ (138,078) | $ (199,355) |
Net loss attributable to common stockholders | (138,078) | (199,355) |
Net loss attributable to common stockholders | $ (138,078) | $ (199,355) |
Denominator: | ||
Basic weighted average common shares outstanding (in shares) | 244,224,777 | 230,821,045 |
Diluted weighted average common shares outstanding (in shares) | 244,224,777 | 230,821,045 |
Net loss per share: | ||
Basic (in USD per share) | $ (0.57) | $ (0.86) |
Diluted (in USD per share) | $ (0.57) | $ (0.86) |
Class B common stock | ||
Numerator: | ||
Net loss | $ (33,705) | $ (51,914) |
Net loss attributable to common stockholders | (33,705) | (51,914) |
Net loss attributable to common stockholders | $ (33,705) | $ (51,914) |
Denominator: | ||
Basic weighted average common shares outstanding (in shares) | 59,614,893 | 60,108,225 |
Diluted weighted average common shares outstanding (in shares) | 59,614,893 | 60,108,225 |
Net loss per share: | ||
Basic (in USD per share) | $ (0.57) | $ (0.86) |
Diluted (in USD per share) | $ (0.57) | $ (0.86) |
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 | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 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) | 47,066,721 | 49,971,438 |
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) | 21,731,951 | 23,341,125 |
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) | 19,115,091 | 20,235,040 |
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) | 5,743,523 | 5,870,677 |
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) | 476,156 | 524,596 |