0001628280-21-010407 | 10-Q | XBRL Viewer

213,770

743

(63,719)

(865)

9,323

Ending balance, Common Stock (in shares) at Sep. 30, 2019

(30,795)

47,228,259

Ending balance at Sep. 30, 2019

(284,983)

$ 0

64,890

(349,898)

Beginning balance, Redeemable Convertible Preferred Stock (in shares) at Jun. 30, 2019

122,653,704

Beginning balance, Redeemable Convertible Preferred Stock at Jun. 30, 2019

$ 798,074

Ending balance, Redeemable Convertible Preferred Stock (in shares) at Mar. 31, 2020

122,115,971

Ending balance, Redeemable Convertible Preferred Stock at Mar. 31, 2020

$ 804,170

Beginning balance, Common Stock (in shares) at Jun. 30, 2019

47,078,208

Beginning balance at Jun. 30, 2019

(263,414)

$ 0

54,824

(318,238)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

(864)

Ending balance, Common Stock (in shares) at Mar. 31, 2020

(147,411)

47,532,039

Ending balance at Mar. 31, 2020

(415,036)

$ 0

67,809

(481,981)

(864)

Beginning balance, Redeemable Convertible Preferred Stock (in shares) at Sep. 30, 2019

123,829,576

Beginning balance, Redeemable Convertible Preferred Stock at Sep. 30, 2019

$ 813,555

Increase (Decrease) in Temporary Equity [Roll Forward]

Repurchases of redeemable convertible preferred stock (in shares)

(1,713,605)

Repurchases of redeemable convertible preferred stock

$ (9,385)

Ending balance, Redeemable Convertible Preferred Stock (in shares) at Dec. 31, 2019

122,115,971

Ending balance, Redeemable Convertible Preferred Stock at Dec. 31, 2019

$ 804,170

Beginning balance, Common Stock (in shares) at Sep. 30, 2019

47,228,259

Beginning balance at Sep. 30, 2019

(284,983)

$ 0

64,890

(349,898)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

1,485,298

478

(1,385,879)

Repurchases of redeemable convertible preferred stock

(17,590)

(2,123)

(15,467)

(13,205)

9,155

(15)

Ending balance, Common Stock (in shares) at Dec. 31, 2019

(30,996)

47,327,678

Ending balance at Dec. 31, 2019

(337,156)

$ 0

59,195

(396,361)

Ending balance, Redeemable Convertible Preferred Stock (in shares) at Mar. 31, 2020

122,115,971

Ending balance, Redeemable Convertible Preferred Stock at Mar. 31, 2020

$ 804,170

Increase (Decrease) in Stockholders' Equity [Roll Forward]

249,861

552

(45,500)

(400)

8,462

(874)

Ending balance, Common Stock (in shares) at Mar. 31, 2020

(85,620)

47,532,039

Ending balance at Mar. 31, 2020

$ (415,036)

$ 0

67,809

(481,981)

(864)

Beginning balance, Redeemable Convertible Preferred Stock (in shares) at Jun. 30, 2020

122,115,971

Beginning balance, Redeemable Convertible Preferred Stock at Jun. 30, 2020

$ 804,170

Increase (Decrease) in Temporary Equity [Roll Forward]

Conversion of redeemable convertible preferred stock (in shares)

4,444,321

Conversion of redeemable convertible preferred stock

$ 88,559

Issuance of redeemable convertible preferred stock, net of issuance costs (in shares)

21,824,141

Issuance of redeemable convertible preferred stock, net of issuance costs

$ 434,434

Ending balance, Redeemable Convertible Preferred Stock (in shares) at Sep. 30, 2020

148,384,433

Ending balance, Redeemable Convertible Preferred Stock at Sep. 30, 2020

$ 1,327,163

Beginning balance, Common Stock (in shares) at Jun. 30, 2020

47,684,427

Beginning balance at Jun. 30, 2020

(367,096)

$ (9,980)

$ 0

80,373

(447,167)

$ (9,980)

(302)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of common stock upon exercise of stock options (in shares)

388,246

Issuance of common stock upon exercise of stock options

1,741

Vesting and exercise of warrants for common stock (in shares)

5,074,398

Vesting and exercise of warrants for common stock

67,645

(115,625)

(584)

Conversion of convertible debt

7,175

(42,124)

405

Ending balance, Common Stock (in shares) at Sep. 30, 2020

(3,946)

53,031,446

Ending balance at Sep. 30, 2020

$ (346,764)

$ 0

114,226

(461,093)

103

Beginning balance, Redeemable Convertible Preferred Stock (in shares) at Jun. 30, 2020

122,115,971

Beginning balance, Redeemable Convertible Preferred Stock at Jun. 30, 2020

$ 804,170

Ending balance, Redeemable Convertible Preferred Stock (in shares) at Mar. 31, 2021

Ending balance, Redeemable Convertible Preferred Stock at Mar. 31, 2021

$ 0

Beginning balance, Common Stock (in shares) at Jun. 30, 2020

47,684,427

Beginning balance at Jun. 30, 2020

$ (367,096)

$ (9,980)

$ 0

80,373

(447,167)

$ (9,980)

(302)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of common stock upon exercise of stock options (in shares)

11,213,678

Vesting and exercise of warrants for common stock (in shares)

20,651,583

$ 5,048

Ending balance, Common Stock (in shares) at Mar. 31, 2021

(277,715)

264,658,118

^[1]

Ending balance at Mar. 31, 2021

2,404,021

$ 3

3,134,145

(734,873)

4,746

Beginning balance, Redeemable Convertible Preferred Stock (in shares) at Sep. 30, 2020

148,384,433

Beginning balance, Redeemable Convertible Preferred Stock at Sep. 30, 2020

$ 1,327,163

Increase (Decrease) in Temporary Equity [Roll Forward]

Issuance of redeemable convertible preferred stock, net of issuance costs (in shares)

12,546

Issuance of redeemable convertible preferred stock, net of issuance costs

$ 108

Ending balance, Redeemable Convertible Preferred Stock (in shares) at Dec. 31, 2020

148,396,979

Ending balance, Redeemable Convertible Preferred Stock at Dec. 31, 2020

$ 1,327,271

Beginning balance, Common Stock (in shares) at Sep. 30, 2020

53,031,446

Beginning balance at Sep. 30, 2020

(346,764)

$ 0

114,226

(461,093)

103

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of common stock upon exercise of stock options (in shares)

6,220,024

Issuance of common stock upon exercise of stock options

21,676

(12,100)

(199)

6,774

1,814

Ending balance, Common Stock (in shares) at Dec. 31, 2020

(26,610)

^[1]

59,239,370

Ending balance at Dec. 31, 2020

$ (343,309)

$ 0

142,477

(487,703)

1,917

Increase (Decrease) in Temporary Equity [Roll Forward]

Conversion of redeemable convertible preferred stock (in shares)

(148,396,979)

Conversion of redeemable convertible preferred stock

$ (1,327,271)

Ending balance, Redeemable Convertible Preferred Stock (in shares) at Mar. 31, 2021

Ending balance, Redeemable Convertible Preferred Stock at Mar. 31, 2021

$ 0

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Conversion of redeemable convertible preferred stock (in shares)

^[1]

148,396,979

Conversion of redeemable convertible preferred stock

1,327,260

$ 2

1,327,269

(11)

^[1]

28,290,000

Issuance of common stock upon exercise of stock options (in shares)

1,305,302

$ 1

1,305,301

^[1]

4,721,033

Issuance of common stock upon exercise of stock options

19,819

Vesting and exercise of warrants for common stock (in shares)

^[1]

15,577,185

Vesting and exercise of warrants for common stock

203,511

Issuance of common stock for acquisition (in shares)

^[1]

6,209,806

Issuance of common stock for acquisition

117,023

Vesting of restricted stock units (in shares)

^[1]

2,225,411

^[1]

(1,666)

(3)

Tax withholding for stock-based compensation

146,314

(127,566)

2,829

Ending balance, Common Stock (in shares) at Mar. 31, 2021

(247,159)

264,658,118

^[1]

Ending balance at Mar. 31, 2021

$ 2,404,021

$ 3

$ 3,134,145

$ (734,873)

$ 4,746

[1]	The share amounts listed above combine common stock, Class A common stock and Class B common stock.

CONDENSED CONSOLIDATED STATEMENT OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]
Preferred stock issuance costs	$ 6,746	$ 143	$ 440	$ 20

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows from Operating Activities
Net Loss	$ (277,715)	$ (147,411)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for credit losses	40,389	137,238
Amortization of premiums and discounts on loans, net	(60,705)	(20,668)
Gain on sales of loans	(47,344)	(20,329)
Changes in fair value of servicing assets and liabilities	(2,733)	(706)
Changes in fair value and extinguishment of convertible debt derivative	(30,106)	0
Change in fair value of residual trust certificates	(350)	0
Change in fair value of contingent consideration	78,499	0
Amortization of commercial agreement assets	50,097	0
Amortization of debt issuance costs	3,675	1,661
Stock-based compensation	152,471	24,589
Depreciation and amortization	12,092	7,421
Income tax expense (benefit)	105	282
Impairment of right of use assets	11,141	0
Loss on disposal of property, equipment and software	4,563	0
Other	2,354	(862)
Purchases of loans held for sale	(1,640,672)	(1,635,950)
Proceeds from the sale of loans held for sale	1,599,554	1,575,767
Change in operating assets and liabilities:
Accounts receivable, net	(6,461)	(4,013)
Other assets	(208,798)	24,475
Accrued interest payable	2,535	793
Accounts payable	4,064	1,564
Accrued expenses and other liabilities	128,602	7,054
Payable to third-party loan owners	11,526	6,240
Net Cash Used in Operating Activities	(173,217)	(42,855)
Cash Flows from Investing Activities
Purchases of loans held for investment	(4,007,881)	(2,033,286)
Origination of loans	(305,953)	0
Proceeds from the sale of loans	348,195	211,703
Principal repayments of loans	3,002,351	1,607,887
Acquisition, net of cash and restricted cash acquired	(104,776)	0
Acquisition of commercial agreement assets	(25,900)	0
Additions to property, equipment and software	(12,414)	(18,704)
Net Cash Used in Investing Activities	(1,106,378)	(232,400)
Cash Flows from Financing Activities
Proceeds from funding debt	2,413,905	1,528,747
Payment of debt issuance costs	(11,266)	(1,383)
Principal repayments of funding debt	(2,555,699)	(1,329,160)
Proceeds from issuance of notes and residual trust certificates by securitization trusts	1,396,229	0
Principal repayments of notes issued by securitization trusts	(144,503)	0
Proceeds from issuance of redeemable convertible preferred stock, net	434,542	15,481
Repurchases of redeemable convertible preferred stock	0	(22,591)
Conversion of redeemable convertible preferred stock	(13)	0
Proceeds from initial public offering, net	1,305,301	0
Proceeds from exercise of common stock options and warrants	43,815	1,775
Repurchases of common stock	(786)	(18,854)
Payments of tax withholding for stock-based compensation	(127,566)	0
Net Cash Provided by Financing Activities	2,753,959	174,015
Effect of exchange rate changes on cash, cash equivalents and restricted cash	4,510	0
Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash	1,478,874	(101,240)
Cash and cash equivalents and restricted cash, beginning of period	328,128	357,771
Cash and Cash Equivalents and Restricted Cash, end of period	1,807,002	256,531
Supplemental Disclosures of Cash Flow Information
Cash payments for interest	28,575	22,072
Cash paid for income taxes	81	0
Cash paid for operating leases	9,726	7,302
Supplemental Disclosures of Non-Cash Investing and Financing Activities
Stock-based compensation included in capitalized internal-use software	7,792	2,350
Additions to property and equipment included in accrued expenses	24	2,213
Issuance of warrants in exchange for commercial agreement	270,579	0
Conversion of convertible debt	88,559	0
Issuance of common stock in connection with acquisition	117,023	0
Right of use assets obtained in exchange for operating lease liabilities	$ 78,421	$ 0

Business Description	9 Months Ended
Business Description	Mar. 31, 2021
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 technology-driven payments network and partnerships with originating banks, we enable consumers to confidently pay for a purchase over time, with terms ranging from one 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. The majority of loans are 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 solution. Consumers get the flexibility to buy now and make simple monthly payments for their purchases and merchants see increased average order value, repeat purchase rate, 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 penalties. On January 15, 2021, we closed our initial public offering ("IPO") of 28,290,000 shares of Class A common stock, including 3,690,000 shares pursuant to the option granted to the underwriters to purchase additional shares of Class A common stock, at an offering price of $49.00 per share. The proceeds from the IPO, before expenses, were approximately $1.3 billion.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2021
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, 2020. The balance sheet as of June 30, 2020 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. Certain prior period amounts have been reclassified to conform to the current period presentation. 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 Delaware business trust entities and limited partnerships established to enter into warehouse credit agreements with certain lenders for funding debt facilities and asset-backed securitization transactions. 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 variable consideration for revenue, the allowance for credit losses, capitalized software development costs, valuation allowance for deferred tax assets, convertible debt derivatives, loss on loan purchase commitment, discount on self-originated loans, the fair value and useful lives of tangible and intangible assets acquired and liabilities assumed resulting from business combinations, the evaluation for impairment of intangible assets and goodwill, the incremental borrowing rate used in discounting our lease liabilities, and stock-based compensation. 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. Business Combination We use the acquisition method of accounting for business combination transactions, and, accordingly, recognize the fair values of assets acquired and liabilities assumed in our interim condensed consolidated financial statements. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value. Transaction costs related to the acquisition of the acquired company are expensed as incurred. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The interim condensed consolidated financial statements include the results of operations of any acquired company since the acquisition date. Goodwill and Intangible Assets We recognize the excess of the purchase price over the fair value of identifiable net assets acquired at the acquisition date as goodwill. Goodwill is not amortized but is reviewed for impairment annually and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform a quantitative goodwill impairment test by determining the fair value of the reporting unit and comparing it to the carrying value of the reporting unit. If the fair value of the reporting unit is greater than the reporting unit’s carrying value, then the carrying value of the reporting unit is deemed to be recoverable. If the carrying value of the reporting unit is greater than the reporting unit’s fair value, goodwill is impaired and written down to the reporting unit’s fair value. Acquired intangible assets consisting of identifiable intangible assets are comprised of developed technology, merchant relationships, and trade names resulting from acquisitions. Acquired intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated economic lives following the pattern in which the economic benefits of the assets will be consumed, which is on a straight-line basis. Acquired intangible assets are presented net of accumulated amortization on the interim condensed consolidated balance sheets. We review the carrying amounts of intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. We measure the recoverability of intangible assets by comparing the carrying amount of each asset to the future undiscounted cash flows we expect the asset to generate. If we consider any of these assets to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. In addition, we periodically evaluate the estimated remaining useful lives of long-lived intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation or amortization. Revenue Recognition Merchant Network Revenue — Revenue from Contracts with Customers Merchant network revenue consists of merchant fees. Merchant partners (or merchants) are charged a fee on each transaction 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 terms of the executed merchant agreement have been fulfilled and the merchant successfully confirms the transaction. 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 promotional incentives to offer incentives to promote our platform to their customers, such as fee reductions or rebates. These amounts, as well as refunds, are recorded as a reduction of revenue and netted against 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, which we record as a reduction to merchant network revenue. In order to continue to expand our consumer base, we may originate loans under certain merchant arrangements that we do not expect to achieve positive revenue. In these instances, the loss is recorded as sales and marketing expense. On May 5, 2021, our largest merchant partner, Peloton, announced a voluntary recall of two of its products following a report by the U.S. Consumer Product Safety Commission released on April 17, 2021. Pursuant to ASC 606, we have revised our estimate of the variable consideration associated with revenue earned on the facilitation of transactions related to the recalled products and have recorded a reduction in revenue of $3.5 million in the current period. Virtual Card Network Revenue — Revenue from Contracts with Customers We have agreements with issuer processors to facilitate transactions through the issuance of virtual debit cards to be used by consumers at checkout. Consumers can apply for a virtual debit card through the Affirm app and, upon approval, receive a single-use virtual debit card to be used for their purchase online or offline at a non-integrated merchant. The non-integrated merchants are charged interchange fees by the issuer processor for virtual debit card transactions, as with all debit card purchases, and the issuer processor shares a portion of this revenue with us. We also leverage this issuer processor as a means of integrating certain merchants. Similarly, for these arrangements, the merchant is charged interchange fees by the issuer processor and the issuer processor shares a portion of this revenue with us. Our contracts with issuer processors are defined at the transaction level and do not extend beyond the service already provided. The fees collected from issuer processors 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 fees collected are presented in revenue, net of associated processing fees. As the issuer processors do not provide distinct services to us, any fees paid to the issuer processors are offset against collected fees. We have concluded that these fees do 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 issuer processors to facilitate transactions with consumers. Interest Income We accrue interest income using the effective interest method. Interest income on a loan is accrued daily, based on the finance charge disclosed to the consumer, over the term of the loan based upon the principal outstanding. The accrual of interest on a loan is suspended if a formal dispute with the borrower 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 June 30, 2020 and March 31, 2021, the balance of loans held for investment on non-accrual status was $0.3 million and $0.5 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. 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 are amortized into interest income over the life of the loan using the effective interest method. The amortization is presented together as interest income in the interim condensed consolidated statements of operations and comprehensive loss. Servicing Income Servicing fees are contractual fees specified in our servicing agreements with third-party loan owners 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. We recognize this revenue on a monthly basis. Customer Referral Partners From time to time, we make payments to customer referral partners providing lead generation services for each transaction processed through our technology platform. We first evaluate whether the customer referral partner is a customer or a vendor. We consider customer referral partners as customers if we determine they are the principal to eligible merchants in providing the facilitation of credit service. We consider customer referral partners as vendors if we determine that we are the principal to eligible merchants in providing the facilitation of credit service. Payments made to customer referral partners that are not considered to be our customers are expensed as over the period of benefit and recorded in processing and servicing within our interim condensed consolidated statements of operations and comprehensive loss. Stock-Based Compensation We account for stock-based compensation expense in accordance with the fair value recognition and measurement provisions of U.S. GAAP, which requires compensation cost for the grant date fair value of stock-based awards to be recognized over the requisite service period. In addition, we made an accounting policy election to estimate the expected forfeiture rate for service-based awards and only recognize expense for those stock-based awards expected to vest. We estimate the forfeiture rate based on our historical experience with stock-based awards that are granted and forfeited prior to vesting. The fair value of stock-based awards, granted or modified, is determined on the grant date (or modification or acquisition dates, if applicable) at fair value, using appropriate valuation techniques. Service-Based Awards We record stock-based compensation expense for service-based stock options and restricted stock units (“RSUs") on a straight-line basis over the requisite service period, which is generally four years. Stock-based compensation expense for all stock-based awards is based on the grant date fair value and is recognized on a straight-line basis over the requisite service period of the awards, which is generally the option vesting term of four years. The fair value of each option on the date of grant is determined using the Black Scholes-Merton option pricing model using the single-option award approach. Volatility is based on historical volatility rates obtained from comparable publicly-traded companies that operate in the same or related business as us, as there is no market or historical data for our common stock. The risk-free interest rate is determined using a U.S. Treasury rate for the period that coincides with the expected term set forth. We used the simplified method to determine an estimate of the expected term of an employee stock option. We account for stock-based awards to non-employees, including consultants, in accordance with ASC 718, in which equity-classified awards are measured at the grant date fair value and recognized as expense in the period and manner as though we had paid cash in exchange for goods or services instead of granting a stock-based award. Performance-Based Awards We have granted RSUs that vest upon the satisfaction of both service-based and performance-based conditions. The service-based condition for these awards generally is satisfied over four years. The performance-based condition is satisfied upon the occurrence of a qualifying event, defined as the earlier of (i) the closing of certain specific liquidation or change in control transactions, or (ii) an IPO. We record stock-based compensation expense for performance-based equity awards and stock on an accelerated attribution method over the requisite service period, which is generally four years, and only if performance-based conditions are considered probable of being satisfied. Prior to the IPO in January 2021, we had not recognized stock-based compensation expense as the qualifying event described above had not yet occurred and was not considered probable of occurring. With the completion of our IPO on January 15, 2021, we recognized a cumulative catch-up stock-based compensation charge of $65.1 million associated with the vesting of RSUs for which the service-based condition had been met prior to the IPO. Stock-based compensation expense related to remaining service-based awards after the IPO is recorded over the remaining requisite service period. Upon exercise or vesting of a stock-based award, if the tax deduction exceeds the compensation cost that was previously recorded for financial statement purposes, this will result in an excess tax benefit. Market-Based Awards We have granted stock option awards with service-based and performance-based vesting conditions, with market-based conditions that are incorporated into the grant date fair value. The stock option awards are earned as a result of satisfying the performance-based conditions and become vested and exercisable upon satisfying the service-based conditions. We determined the grant date fair value of these awards by utilizing a Monte Carlo simulation model that incorporates the possibility that the market-based conditions may not be satisfied. The Monte Carlo simulation also incorporates assumptions including expected stock price volatility, expected term, and risk-free interest rates. We estimate the volatility of common stock on the date of grant based on the weighted-average historical stock price volatility of comparable publicly-traded companies in our industry group. We estimate the expected term of the award based on various exercise scenarios. The risk-free interest rate is determined using a U.S. Treasury rate for the period that coincides with the expected term set forth. The grant date and service inception date of the stock option awards is the date of Affirm's IPO, or January 13, 2021. We record stock-based compensation expense for market-based equity awards such as RSUs and stock options on an accelerated attribution method over the requisite service period, and only if performance-based conditions are considered probable of being satisfied. Recently Adopted Accounting Standards As of March 31, 2021, we no longer qualify as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As such, we are no longer entitled to take advantage of the exemptions from various reporting requirements applicable to emerging growth companies, including extended transition periods for complying with new or revised accounting standards. Accordingly, as discussed more fully below, we adopted certain new or revised accounting standards in the third quarter of fiscal 2021 for which adoption previously had been deferred. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” ("ASC 606"). ASC 606 requires revenue to be recognized in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services and also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts. Subsequent to the issuance of ASU 2014-09, the FASB issued several amendments to ASC 606 to clarify or improve the revenue recognition standard such as principal versus agent considerations in ASU 2016-08, technical corrections and improvements to ASC 606 in ASU 2016-20, and clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial asset in ASU 2017-05. In June 2020, the FASB issued ASU 2020-05, “Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities” ("ASC 842"), which amends the effective dates of ASC 606 and ASC 842 to give immediate relief to certain entities as a result of the widespread adverse economic effects and business disruptions caused by the COVID-19 pandemic. ASU 2020-05 permits certain entities that have not yet made statements available for issuance to adopt ASC 606 for annual reporting periods beginning after December 15, 2019, and for interim reporting periods within annual reporting periods beginning after December 15, 2020. Under ASU 2020-05, we adopted ASC 606 on July 1, 2020 using the modified retrospective transition method. Under this method, we evaluated contracts that were not complete as of the date of adoption as if those contracts had been accounted for under ASC 606. Under the modified retrospective transition approach, periods prior to the adoption date were not adjusted and continue to be reported in accordance with revenue accounting literature in effect during those periods. The adoption of ASC 606 did not have a material impact on our revenue arrangements. ASC 606 explicitly excludes revenue generated in accordance with ASC 310, "Receivables" and ASC 860, "Transfers and Servicing." Accordingly, we have concluded that interest income, gains on loan sales and servicing income are not affected by the adoption of ASC 606 and its related amendments. Merchant network revenue and virtual card network revenue are within the scope of ASC 606. Stock-Based Compensation In June 2018, the FASB issued ASU 2018-07, “Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” that expands on the scope of ASC 718 to include stock-based payment transactions for acquiring goods and services from non-employees. For non-public business entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity’s adoption of ASC 606. We adopted ASC 606 effective July 1, 2020 and have correspondingly adopted ASU 2018-07 as of that date. There was no material impact to existing stock-based awards to non-employees. Income Taxes In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” ("ASC 740"), which removes certain exceptions related to the approach for intraperiod tax allocation, recognizing deferred tax liabilities for outside basis differences and calculating income taxes in interim periods. The guidance also reduces complexity in certain areas, including franchise taxes that are partially based on income and accounting for tax law changes in interim periods. We early adopted the new standard effective July 1, 2020 on a prospective basis. The adoption of the new standard did not have a material impact on our interim condensed consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” ("ASC 842") which substantially modifies lessee accounting for leases, and requires most leases to be recognized on the balance sheet with enhanced disclosures. ASC 842 provides that a contract is, or contains, a lease if it conveys the right to control the use of an identified asset and, accordingly, a lease liability and a related right-of-use ("ROU") asset is recognized at the commencement date. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Subsequent to the issuance of ASC 842, the FASB issued several amendments to ASC 842 to clarify or improve the new leases standard, including the codification and targeted improvements in ASUs 2018-10 and 2019-01 and the narrow-scope improvements for lessors in ASU 2018-20. In August 2018, the FASB issued ASU 2018-11, “Targeted Improvements to ASC 842,” which included an option to not restate comparative periods in transition and elect to use the effective date of ASU 2016-02 as the date of initial application (the “effective date” method). Following the loss of our emerging growth company status during the third quarter of fiscal 2021, we adopted ASC 842 with an effective date of July 1, 2020 using the modified retrospective transition approach by applying the standard to all leases existing at the date of initial application and not restating comparative periods. Refer to Note 7. Leases for further information on the implementation of the standard. We have elected the practical expedients permitted under the transition guidance, which allowed us not to reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) the accounting for any initial direct costs for any expired or existing leases. We also elected the practical expedients allowing the combination of lease and non-lease components by class of underlying asset. In addition, we have elected the short-term lease exception and will not recognize ROU assets or lease liabilities for qualifying leases (leases with a term of less than 12 months from lease commencement). As a result of the adoption of ASC 842, we recognized ROU assets included in other assets in the interim condensed consolidated balance sheets and lease liabilities for operating leases included in accrued expenses and other liabilities in the interim condensed consolidated balance sheets of $66.7 million and $71.2 million, respectively, as of July 1, 2020 with a $0.1 million in cumulative effect adjustment to accumulated deficit. The aggregate lease liability differs from the ROU asset primarily due the unamortized balance of deferred rent, which, prior to July 1, 2020, was included in accrued expenses and other liabilities in the interim condensed consolidated balance sheet. ROU assets are reviewed for impairment, consistent with other long-lived assets, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. After a ROU asset is impaired, any remaining balance of the ROU asset is amortized on a straight-line basis over the shorter of the remaining lease term or the estimated useful life. We currently have no finance leases. The adoption of the new lease accounting standard had no impact on cash provided by or used in operating, investing or financing activities in our interim condensed consolidated statements of cash flows. The adoption of the new lease accounting standard also did not have a material impact our interim condensed consolidated statements of operations and comprehensive loss. Financial Instruments — Credit Losses In June 2016, the FASB issued amendments on ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326)” ("ASC 326"). The amendments will replace the incurred loss impairment methodology in U.S. GAAP with a methodology that measures expected credit losses based on historical experience, current conditions and a reasonable and supportable forecast. This amendment is generally referred to as the current expected credit loss ("CECL") standard. The amendments in this standard will be recognized through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Subsequent to the issuance of ASU 2016-13, the FASB issued several amendments to ASC 326 to clarify or improve the financial instruments credit losses standard such as codification and targeted improvements in ASUs 2018-19, 2019-04, 2019-05, 2019-11 and 2020-03. Following the loss of our emerging growth company status, we adopted ASC 326 effective July 1, 2020 using the modified retrospective approach for our loans held for investment, which resulted in an increase in the allowance for credit losses of $10.1 million and a cumulative effect adjustment to the beginning balance of accumulated deficit of $10.1 million. Results for reporting periods beginning on or after July 1, 2020 will be presented under the new standard, while prior period amounts before the adoption of CECL on July 1, 2020, continue to be reported in accordance with previously applicable GAAP. Under ASC 326, we maintained our current allowance model and included credit loss allowance assumptions in compliance with ASC 326, which included forecasts for prepayments, recoveries, historical performance, credit rating, as well as current market conditions and expectations for future market conditions. We included the disclosures required by ASC 326 in Note 4. Loans Held for Investment and Allowance for Credit Losses. We have adopted all new accounting pronouncements that are in effect and applicable to us for the period ended March 31, 2021. Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” ("ASC 848"). Subject to meeting certain criteria, the new guidance provides optional expedients and exceptions to applying contract modification accounting under existing U.S. GAAP, to address the expected phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021. This ASU is effective for all entities upon issuance as of March 12, 2020 through December 31, 2022. We are in the process of reviewing our revolving credit agreements and loan sale agreements that utilize LIBOR as the reference rate and introducing new fallback language to these agreements. We are in the process of evaluating the impact of this amendment on our consolidated financial statements. Convertible Debt Instruments In August 2020, the FASB issued ASU 2020-06, "Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40),” which simplifies the accounting for convertible instruments. The guidance removes certain accounting models that separate the embedded conversion features from the host contract for convertible instruments. Either a modified retrospective method of transition or a fully retrospective method of transition is permissible for the adoption of this standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted no earlier than the fiscal year beginning after December 15, 2020. We are in the process of evaluating the impact of this amendment on our consolidated financial statements.

Interest Income

9 Months Ended

Mar. 31, 2021

Banking and Thrift, Interest [Abstract]

Interest Income

Interest income consisted of the following components (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Interest income on unpaid principal balance	$	46,444	$	65,921	$	121,179	$	162,666
Amortization of discount on loans held for investment	9,175		31,625		24,904		68,843
Amortization of premiums on loans held for investment	(1,701)		(2,373)		(4,236)		(6,449)
Interest receivable charged-off, net of recoveries	(1,546)		(643)		(4,234)		(2,436)
Total interest income	$	52,372	$	94,530	$	137,613	$	222,624

Loans Held for Investment and Allowance for Credit Losses

9 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Loans Held for Investment and Allowance for Credit Losses

Loans held for investment consisted of the following (in thousands):


	June 30, 2020		March 31, 2021
Unpaid principal balance	$	1,049,618	$	2,262,613
Accrued interest receivable	8,707		14,234
Premiums on loans held for investment	4,646		6,736
Less: Discount due to loan commitment liability	(28,659)		(81,883)
Less: Fair value adjustment on loans acquired through business combination	—		(6,306)
Total loans held for investment	$	1,034,312	$	2,195,394

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 $1,239.9 million and $3,463.5 million for the three and nine months ended March 31, 2020, respectively, and $2,031.2 million and $5,620.8 million for the three and nine months ended March 31, 2021, respectively.

These loans have a variety of lending terms as well as maturities ranging from one to sixty months. Given that our loan portfolio focuses on one product segment, point-of-sale unsecured installment loans, we evaluate the entire portfolio as a single homogeneous loan portfolio.

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 of our originating bank partners, 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 in turn 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 organization closely tracks the distribution

of a consumer ITACs as well as the ITACs of loans to monitor for signs of a changing credit profile within the portfolio. Repayment performance within each ITACs band is also monitored to ensure 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 by fiscal year of origination on loans held for investment (in thousands) as of March 31, 2021:


	Amortized Costs Basis by Fiscal Year of Origination
	2021		2020		2019		2018		2017		Prior		Total
96+	$	1,391,811	$	158,238	$	12,126	$	370	$	2	$	—	$	1,562,547
94 – 96	374,582		16,517		800		34		1		—		391,934
90 – 94	103,938		5,855		74		1		—		—		109,868
<90	28,570		872		2		—		—		—		29,444
No score(1)	78,995		18,384		2,262		463		36		1		100,141
Total loan receivables	$	1,977,896	$	199,866	$	15,264	$	868	$	39	$	1	$	2,193,934
Current period charge-offs	$	8,844	$	5,391	$	291	$	11	$	—	$	—	$	14,537
Current period recoveries	(394)		(1,344)		(1,369)		(653)		(479)		(53)		(4,292)
Current period net charge-offs	$	8,450	$	4,047	$	(1,078)	$	(642)	$	(479)	$	(53)	$	10,245

(1)This balance represents loan receivables in new markets without sufficient data currently available for use of the Affirm scoring methodology as well as loan receivables originated by PayBright Inc. ("PayBright").

Loan receivables are defined as past due if either the principal or interest have not been received within four calendars days of when they are due in accordance with the agreed upon contractual terms. The following table presents an aging analysis of the amortized cost basis on loans held for investment by delinquency status (in thousands):


	June 30, 2020		March 31, 2021
Non-delinquent loans	$	1,019,492	$	2,138,804
4 – 29 calendar days past due	16,765		24,766
30 – 59 calendar days past due	5,393		12,220
60 – 89 calendar days past due	6,268		10,640
90 – 119 calendar days past due	6,159		7,504
Total amortized cost basis	$	1,054,077	$	2,193,934

We maintain an allowance for credit losses at a level that is appropriate to absorb probable losses inherent in our loans. The allowance for credit losses covers estimated losses for individually assessed loans and includes estimates which rely on economic conditions, forecasts, and historical loan performance. When loans are charged off, we recognize this as a charge against the allowance for credit losses. We may continue to attempt to recover amounts from the respective consumers. The allowance for credit losses on loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. It is comprised of specific allowance for individually assessed loans which are regularly evaluated to maintain a level adequate to absorb expected losses inherent in the loan portfolio. Refer to Note 2. Summary of Significant Accounting Policies for additional information.

The following table details activity in the allowance for credit losses (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Balance at beginning of period	$	85,855	$	124,992	$	66,260	$	95,137
Adjustment due to adoption of new accounting standard	—		—		—		10,083
Provision for credit losses(1)	78,962		(993)		133,800		39,190
Charge-offs	(22,017)		(14,537)		(59,810)		(40,377)
Recoveries of charged-off receivables	2,130		4,292		4,680		9,721
Balance at end of period	$	144,930	$	113,754	$	144,930	$	113,754

(1)Excludes provision for merchant losses of $3.1 million for both the three and nine months ended March 31, 2020 and $(0.1) million and $0.9 million for the three and nine months ended March 31, 2021, respectively, and provision for repurchase of fraudulent loans sold of $0.2 million and $0.3 million for the three and nine months ended March 31, 2020 and $0.1 million and $0.4 million for the three and nine months ended March 31, 2021, respectively, which are included in provision for credit losses on the interim condensed consolidated statements of operations and comprehensive loss.

Business Combination

9 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Business Combination

On January 1, 2021, Affirm Canada Holdings Ltd. (“Affirm Canada”), a subsidiary of Affirm, and Affirm acquired all outstanding stock of PayBright, one of Canada’s leading buy now, pay later providers, for approximately $288.8 million. We have included the financial results of PayBright in our interim condensed consolidated financial statements from the date of acquisition.

The purchase price was comprised of (i) approximately $114.5 million in cash, (ii) 3,622,445 shares of our common stock issued to the shareholders of PayBright at closing and (iii) 2,587,362 shares of our common stock held in escrow and subject to forfeiture if certain revenue milestones are not met. On January 12, 2021, these shares were reclassified into an aggregate of 1,811,222 shares of our Class A common stock and 1,811,222 shares of our Class B common stock issued to the shareholders of PayBright at closing and an aggregate of 1,293,681 shares of our Class A common stock and 1,293,681 shares of our Class B common stock held in escrow.

The acquisition date fair value of the consideration transferred for PayBright was approximately $288.8 million, which consisted of the following (in thousands):


Cash	$	114,490
Fair value of common stock transferred	116,989
Fair value of contingent consideration	57,275
Total purchase price	$	288,754

For further details on our fair value methodology with respect to the contingent consideration, see Note 14. Fair Value of Financial Assets and Liabilities.

The acquisition of PayBright was accounted for as a business combination and reflects the application of acquisition accounting in accordance with ASC 805, "Business Combinations" ("ASC 805"). The acquired PayBright assets, including identifiable intangible assets and liabilities assumed, 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, new customer acquisitions, and the value of assembled workforce in Canada. Neither goodwill nor intangible assets are deductible for income tax purposes.

The following table summarizes the allocation of the consideration paid of approximately $288.8 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):


Cash and cash equivalents	$	8,219
Restricted cash	1,469
Loans held for investment	89,570


Accounts receivable	1,537
Property, equipment and software	586
Intangible assets	16,653
Other assets	5,651
Total assets acquired	$	123,685
Accounts payable	6,579
Accrued interest payable	23
Accrued expenses and other liabilities	193
Funding debt	85,310
Total liabilities assumed	$	92,105
Net assets acquired	$	31,580

Goodwill	257,174
Total purchase price	$	288,754

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 (Years)
Developed technology	$	6,127	3
Merchant relationships	9,505		4
Trade name	1,021		5
Total intangible assets	$	16,653

The transaction costs associated with the acquisition were approximately $0.4 million and $2.4 million for both the three and nine months ended March 31, 2021, respectively, which are included in general and administrative expense in the interim condensed consolidated statements of operations and comprehensive loss.

Unaudited Pro Forma Information

The following table reflects the pro forma consolidated total revenue and net loss for the periods presented as if the acquisition of PayBright had occurred on July 1, 2019 and combines the historical results of Affirm and PayBright. This supplemental unaudited pro forma information is based upon accounting estimates and judgments that we believe are reasonable and includes certain adjustments to conform accounting standards to U.S. GAAP. This supplemental unaudited pro forma financial information has been prepared for illustrative purposes only and is not necessarily indicative of what actual results would have occurred, or of results that may occur in the future.


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Revenue	$	142,385	$	230,665	$	366,233	$	625,157
Net loss	$	(91,307)	$	(246,747)	$	(160,506)	$	(294,297)

Balance Sheet Components

9 Months Ended

Mar. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill during the nine months ended March 31, 2021 were as follows (in thousands):


Balance as of June 30, 2020	$	1,255
Additions	257,174
Effect of foreign currency translation	2,619
Balance as of March 31, 2021	$	261,048

Intangible assets consisted of the following (in thousands):


	June 30, 2020
	Gross		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (in years)

Developed technology	$	790	$	(790)	$	—	—
Trademarks and domains	2,146		—		2,146		Indefinite
Other intangibles	350		—		350		Indefinite
Total intangible assets	$	3,286	$	(790)	$	2,496


	March 31, 2021
	Gross		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (in years)
Merchant relationships	$	9,601	$	(600)	$	9,001	3.8
Developed technology	6,979		(1,306)		5,673		2.8
Trademarks and domains	3,178		(52)		3,126		4.8
Other intangibles	350		—		350		Indefinite
Total intangible assets	$	20,108	$	(1,958)	$	18,150

Amortization expense for intangible assets was nil and $1.2 million for the three months ended March 31, 2020 and 2021, respectively, and nil and $1.2 million for the nine months ended March 31, 2020 and 2021, respectively.

The expected future amortization expense of these intangible assets as of March 31, 2021 is as follows (in thousands):


2021 (remaining three months)	$	1,167
2022	4,670
2023	4,670
2024	3,638
2025	1,407
2026 and thereafter	103
Total amortization expense	$	15,655

Commercial Agreement Assets

During the nine months ended March 31, 2021, we recognized an asset in connection with a commercial agreement with Shopify Inc., in which we granted warrants in exchange for the benefit of acquiring new merchant partners. This asset represents the probable future economic benefit to be realized over the four-year expected benefit period and is valued based on the fair value of the warrants on the grant date. Refer to Note 15. Redeemable Convertible Preferred Stock and Stockholders’ Deficit for further discussion of the warrants. We recognized an asset of $270.6 million associated with the fair value of the warrants, which were fully vested as of March 31, 2021. For the three and nine months ended March 31, 2021, we recorded amortization expense related to the commercial agreement asset of $16.7 million and $48.0 million, respectively, in our interim condensed consolidated statements of operations and comprehensive loss as a component of sales and marketing expense.

During the three months ended March 31, 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 March 31, 2021, we recorded amortization expense related to the asset of $2.1 million 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):


	June 30, 2020		March 31, 2021

Operating lease right-of-use assets	$	—	$	59,640

Prepaid payroll taxes for stock-based compensation	—		90,945
Prepaid expenses	6,406		20,725

Processing reserves	924		14,247
Other receivables	3,169		17,473
Other assets	9,098		16,838
Total other assets	$	19,597	$	219,868

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands)


	June 30, 2020		March 31, 2021
Contingent consideration liability	$	—	$	136,357
Operating lease liability	—		76,206
Deferred lease liability	4,492		—
Accrued expenses	16,088		35,974
Commercial agreement liability	—		25,140
Other liabilities	7,230		17,751
Total accrued expenses and other liabilities	$	27,810	$	291,428

During the three months ended March 31, 2021, we recognized a liability in connection with a commercial agreement with an enterprise partner of $25.1 million. Fifty percent of this liability is to be settled 180 days after the date of the final prospectus, or January 12, 2021, and the remaining 50 percent is to be settled on the first year anniversary of this date. The commercial agreement liability recognized represents the net present value of the payments to be made to the enterprise partner. The difference between the contractual settlement amount and the net present value of payments to be made is recognized as a discount. This discount will be expensed over the liability settlement period. During the three months ended March 31, 2021, we recorded an expense of $0.2 million related to accretion of the discount on the commercial agreement liability, which is recorded in our interim condensed consolidated statements of operations as a component of sales and marketing expense.

Leases

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

We lease facilities under operating leases with various expiration dates through 2030. Our corporate headquarters are located in San Francisco, California. We also lease office space in New York, New York; Pittsburgh, Pennsylvania; Salt Lake City, Utah; Chicago, Illinois; and Toronto, Canada.

We have the option to renew or extend our leases ranging from one month to ten years. Some lease agreements include the option to terminate the lease with prior written notice ranging from 180 days to one year. As of March 31, 2021 we have not elected to exercise renewal or termination options. Lease terms range from one year to ten years.

Several leases require us to obtain standby letters of credit, naming the lessor as a beneficiary. These letters of credit act as security for the faithful performance by us of all terms, covenants and conditions of the lease agreement. The cash collateral and deposits for the letters of credit have been recognized as restricted cash in the interim condensed consolidated balance sheets and totaled $9.7 million and $9.9 million as of June 30, 2020 and March 31, 2021, respectively.

The weighted average remaining lease term as of March 31, 2021 was 6.1 years. The discount rate used in determining the lease liability for each individual lease was derived from a corporate yield curve which corresponded with the remaining lease term as of July 1, 2020 for leases that existed at adoption and as of the lease commencement date for leases subsequently entered into after July 1, 2020.

As of March 31, 2021, right-of-use assets of $59.6 million were included in other assets, and the related lease liability totaled $76.2 million and was included in accrued expenses and other liabilities in the interim condensed consolidated balance sheet.

For the three and nine months ended March 31, 2021, we recognized impairment expense of $11.1 million for several of our operating lease right-of-use assets, included in general and administrative expense on our interim condensed consolidated statements of operations and comprehensive loss.

Total rent expense incurred for all locations totaled $3.5 million and $9.9 million for the three and nine months ended March 31, 2020, respectively, and $4.1 million and $12.0 million for the three and nine months ended March 31, 2021, respectively. Total lease expense incurred for short term leases with a term 12 months or less totaled $0.2 million and $1.1 million for the three and nine months ended March 31, 2021.

Lease term and discount rate information are summarized as follows:


												March 31, 2021
Weighted average remaining lease term (in years)												6.1
Weighted average discount rate												5.6%

Maturities of lease liabilities as of March 31, 2021 are as follows (in thousands) for the years ended:


2021 (remaining three months)	$	3,408
2022	14,812
2023	15,285
2024	15,520
2025	15,766
2026 and thereafter	25,986
Total lease payments	90,777
Less imputed interest	(14,571)
Present value of lease liabilities	$	76,206

Commitment and Contingencies	9 Months Ended
Commitment and Contingencies	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 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. All such liabilities arising from current legal and regulatory matters have been recorded in accrued expenses and other liabilities in our interim condensed consolidated balance sheets and these matters are immaterial. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents and restricted cash. We maintain our cash and cash equivalents and restricted cash in accounts at regulated domestic financial institutions and conduct ongoing evaluations of the creditworthiness of the financial institutions with which we do business. We are exposed to default risk on both loan receivables purchased from our originating bank partners and that are self-originated . The ultimate collectability of a substantial portion of the loan portfolio is susceptible to changes in economic and market conditions. As of June 30, 2020 and March 31, 2021, approximately 15%, of loan receivables related to customers residing in the state of California. No other states or provinces exceeded 10%. Concentrations of Revenue For the three and nine months ended March 31, 2020, approximately 28% and 25%, respectively, of total revenue was driven by one merchant. For the three and nine months ended March 31, 2021, approximately 20% and 31%, respectively, of total revenue was driven by one merchant

Transactions with Related Parties	9 Months Ended
Transactions with Related Parties	Mar. 31, 2021
Related Party Transactions [Abstract]
Transactions with Related Parties	Transactions with Related PartiesIn the ordinary course of business, we may enter into transactions with directors, principal officers, their immediate families and affiliated companies in which they are principal stockholders (commonly referred to as related parties). Some of our directors, principal officers, and their immediate families have received loans facilitated by us, in accordance with our regular consumer loan offerings. The outstanding balance and interest earned on such accounts is immaterial.

Funding Debt

9 Months Ended

Mar. 31, 2021

Funding Debt

Funding debt and its aggregate future maturities consists of the following (in thousands):


Final Maturity Year Ending	June 30, 2020		March 31, 2021
2021	$	—	$	81,064
2022	171,133		118,678
2023	653,447		295,956
2024	—		155,765
2025	—		—
Thereafter	—		117,787
Total	$	824,580	$	769,250
Deferred debt issuance costs	(6,654)		(8,855)
Total funding debt, net of deferred debt issuance costs	$	817,926	$	760,395

Warehouse Credit Facilities

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 these proceeds from the borrowings can only be used for the purposes of facilitating loan funding and origination, with advance rates ranging from 80% to 88% of the total collateralized balance. These trusts are bankruptcy-remote special-purpose vehicles in which creditors do not have recourse against the general credit of Affirm. These revolving facilities mature between 2022 and 2026, and subject to covenant compliance, generally permit borrowings up to 12 months prior to the final maturity date of each respective facility. As of March 31, 2021, the aggregate commitment amount of these facilities was $1,875.0 million on a revolving basis, of which $688.2 million was drawn, with $1,186.8 million remaining available. Some of the loans purchased from the originating bank partners are pledged as collateral for borrowings in our facilities. The unpaid principal balance of these loans totaled $990.7 million and $801.3 million as of June 30, 2020 and March 31, 2021, respectively.

Borrowings under these warehouse credit facilities bear interest at an annual benchmark rate of LIBOR (London Inter-bank Offered Rate) or at an alternative commercial paper rate (which is either (i) 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, or (ii) the daily weighted-average of LIBOR, as set forth in the

applicable credit agreement), plus a spread ranging from 1.75% to 5.50%. Interest is payable monthly. In addition, these agreements require payment of a monthly unused commitment fee ranging from 0.20% 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 liquidity, leverage, and tangible net worth. As of March 31, 2021, we were in compliance with all applicable covenants in the agreements.

Other Funding Facilities

Prior to our acquisition of PayBright on January 1, 2021, PayBright entered into 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 PayBright loan receivables pledged to the respective facility as collateral, mature in 2021, and bear interest based on a commercial paper rate plus a spread ranging from 1.25% to 4.25%.

As of March 31, 2021, the aggregate commitment amount of these facilities was $174.6 million on a revolving basis, of which $81.1 million was drawn, with $93.5 million remaining available. The unpaid principal balance of loans pledged to these facilities totaled $55.0 million as of March 31, 2021.

These agreements contain certain customary negative covenants and financial covenants including maintaining certain levels of liquidity, leverage, and tangible net worth at the PayBright subsidiary level. As of March 31, 2021, we were in compliance with all applicable covenants in the agreements.

Notes Issued by Securitization Trusts

In connection with asset-backed securitizations, we sponsor and establish trusts 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. The assets are transferred into a trust such that the assets are legally isolated from the creditors of Affirm and are not available to satisfy obligations of Affirm. These assets can only be used to settle obligations of the underlying trusts. During the nine months ended March 31, 2021, we sponsored and retained residual certificates in securitizations of loans facilitated by our platform through four consolidated securitization trusts: Affirm Asset Securitization Trust 2020-Z1 (“2020-Z1”), Affirm Asset Securitization Trust 2020-A (“2020-A”), Affirm Asset Securitization Trust 2020-Z2 ("2020-Z2") and Affirm Asset Securitization Trust 2021-A (“2021-A”). Each securitization trust issued senior notes and residual certificates to finance the purchase of the loans facilitated by our platform. At the closing of each securitization, we contributed loans, facilitated through our technology platform and purchased from our originating bank partners, with an aggregate outstanding principal balance of $1,505.8 million. The 2020-Z1 and 2020-Z2 securitizations are secured by static pools of loans contributed at closing, whereas the 2020-A and 2021-A securitization are revolving and we may contribute additional loans from time to time until the end of the revolving period. For the 2020-Z2 securitization, we purchased $27.9 million of loan receivables from our third-party loan buyers which were then contributed to the trust.

For each securitization, the residual certificates represent the right to receive all the residual cash collected on the loans held by the securitization trust after paying off the senior notes. All the senior notes were sold to third-party investors. For 2020-Z1, 2020-A and 2021-A, we retained 100% of the residual certificates issued by the securitization trusts. For 2020-Z2, we retained 93.3% of the residual certificates issued by the securitization trust, and a third-party investor holds the remaining 6.7% of the residual certificates in 2020-Z2 and the risk retention interest. The residual trust certificates held by third-party investors are measured at fair value, using a discounted cash flow model, and presented within accrued expenses and other liabilities on the interim condensed consolidated

balance sheets. In addition to the retained residual certificates, our continued involvement includes loan servicing responsibilities over the life of the underlying loans.

2020-Z1

The notes under the 2020-Z1 securitization were issued as a single class: Class A in the amount of $150.0 million (the “2020-Z1 notes”). The 2020-Z1 notes bear interest at a fixed rate of 3.46% and have a maturity date of October 15, 2024. Principal and interest payments began in September 2020 and are payable monthly. These 2021-Z1 notes are recorded at amortized cost on the interim condensed consolidated balance sheet. The associated debt issuance costs, which totaled $1.0 million as of March 31, 2021, are deferred and amortized into interest expense over the contractual life of the notes. The 2020-Z1 notes held by third-party investors and the unamortized debt issuance costs are included in notes issued by securitization trusts with a balance of $91.5 million on the interim condensed consolidated balance sheets at March 31, 2021 and are secured by loan receivables at amortized cost of $95.2 million included in loans held for investment on the interim condensed consolidated balance sheets at March 31, 2021.

2020-A

The notes under the 2020-A securitization were issued in three classes: Class A in the amount of $330.0 million, Class B in the amount of $16.2 million, and Class C in the amount of $22.1 million (collectively, the “2020-A notes”). The Class A, Class B, and Class C notes bear interest at a fixed rate of 2.10%, 3.54%, and 6.23%, respectively, and each class has a maturity date of February 18, 2025. Principal and interest payments began in September 2020 and are payable monthly. These notes are recorded at amortized cost on the interim condensed consolidated balance sheet. The associated debt issuance costs, which totaled $3.0 million as of March 31, 2021, are deferred and amortized into interest expense over the contractual life of the notes. The 2020-A notes held by third-party investors and the unamortized debt issuance costs are included in notes issued by securitization trusts with a balance of $368.2 million on the interim condensed consolidated balance sheets at March 31, 2021 and are secured by loan receivables at amortized cost of $397.4 million included in loans held for investment on the interim condensed consolidated balance sheets as of March 31, 2021.

2020-Z2

The notes under the 2020-Z2 securitization were issued as a single class: Class A in the amount of $375.0 million (the “2020-Z2 notes”). The 2020-Z2 notes bear interest at a fixed rate of 1.90% and have a maturity date of January 15, 2025. Principal and interest payments began in December 2020 and are payable monthly. These 2020-Z2 notes are recorded at amortized cost on the interim condensed consolidated balance sheet. The associated debt issuance costs, which totaled $1.6 million as of March 31, 2021, are deferred and amortized into interest expense over the contractual life of the notes. The notes held by third-party investors and the unamortized debt issuance costs are included in the 2020-Z2 notes issued by securitization trusts with a balance of $290.6 million on the interim condensed consolidated balance sheets at March 31, 2021 and are secured by loan receivables at amortized cost of $301.2 million included in loans held for investment on the interim condensed consolidated balance sheets at March 31, 2021.

2021-A

The notes under the 2021-A securitization were issued in five classes: Class A in the amount of $407.2 million, Class B in the amount of $30.3 million, Class C in the amount of $21.0 million, Class D in the amount of $22.5 million, and Class E in the amount of $19.0 million (collectively, the “2021-A notes”). The Class A, Class B, Class C, Class D, and Class E notes bear interest at a fixed rate of 0.88%, 1.06%, 1.66%, 3.49%, and 5.65%, respectively, and each class has a maturity date of August 15, 2025. Principal and interest payments began in March 2021 and are payable monthly. These notes are recorded at amortized cost on the interim condensed consolidated balance sheet. The associated debt issuance costs, which totaled $3.5 million as of March 31, 2021, are deferred and amortized into interest expense over the contractual life of the notes. The 2021-A notes held by third-party investors and the unamortized debt issuance costs are included in notes issued by securitization trusts with a balance of $499.9

million on the interim condensed consolidated balance sheets at March 31, 2021 and are secured by loan receivables at amortized cost of $499.9 million included in loans held for investment on the interim condensed consolidated balance sheets as of March 31, 2021.Debt

Convertible Debt

In April 2020, we entered into an agreement with various investors pursuant to which we issued convertible notes in an aggregate principal amount of $75.0 million with maturity dates in April 2021 and bearing interest at a rate of 1.00% per annum.

The principal and any unpaid accrued interest of each convertible note automatically converts into shares of redeemable convertible preferred stock upon the closing of financing in which we receive no less than $50.0 million in proceeds from the issuance of redeemable convertible preferred stock. Where an issuance of the redeemable convertible preferred stock results in proceeds of less than $50.0 million, the holders of a majority of the interest in the aggregate principal amount of the convertible notes may elect, at their option, to convert the principal amount and any unpaid accrued interest on each convertible note into shares of redeemable convertible preferred stock. In these situations, the conversion price is equal to the lesser of a discounted conversion price and a conversion price cap. The discounted conversion price varies depending on the time that has elapsed between the issuance of the convertible notes and the closing of the relevant financing. The conversion cap is determined based on a fixed valuation of the Company and on our capitalization determined immediately before the closing of the relevant financing on a fully diluted basis.

Upon completion of the Series G equity financing in September 2020, the convertible notes were redeemed under the next equity financing feature, in which the proceeds from the issuance of redeemable convertible preferred stock was not less than $50.0 million. The aggregate outstanding principal and accrued interest balance of the convertible notes of $75.5 million was converted into 4,444,321 shares of Series G-1 redeemable convertible preferred stock at a conversion price of $16.9374 per share. This conversion resulted in issuance of $88.6 million of Series G-1 redeemable convertible preferred stock at a fair value of $19.9263 per share. The total proceeds were allocated between the liability component of $46.5 million and equity component of $42.1 million. The conversion of the convertible notes was accounted for as a debt extinguishment, which resulted in a gain of $30.1 million. This gain represented the difference between the carrying value of the debt at the time of extinguishment and the allocated proceeds. This gain was recorded in other income, net on the interim condensed consolidated statements of operations and comprehensive loss. The reacquisition of the beneficial conversion feature was measured using the intrinsic value of the conversion option at the extinguishment date, which totaled $42.1 million, and was recorded in equity.

Revolving Credit Facility

On January 19, 2021, we entered into a revolving credit agreement with a syndicate of commercial banks for a $185.0 million unsecured revolving credit facility. This facility bears interest at a rate equal to, at our option, either (a) a Eurodollar rate determined by reference to adjusted LIBOR for the interest period, plus an applicable margin of 2.50% 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 adjusted LIBOR plus 1.00% per annum, in each case, plus an applicable margin of 1.50% per annum. The revolving credit agreement has a final maturity date of January 19, 2024. The facility contains certain covenants and restrictions, including certain financial maintenance covenants, and requires payment of a monthly unused commitment fee of 0.35% per annum on the undrawn balance available. There are no borrowings outstanding under the facility at March 31, 2021.

Notes Issued by Securitization Trusts

9 Months Ended

Mar. 31, 2021

Notes Issued by Securitization Trusts

Funding Debt

Funding debt and its aggregate future maturities consists of the following (in thousands):


Final Maturity Year Ending	June 30, 2020		March 31, 2021
2021	$	—	$	81,064
2022	171,133		118,678
2023	653,447		295,956
2024	—		155,765
2025	—		—
Thereafter	—		117,787
Total	$	824,580	$	769,250
Deferred debt issuance costs	(6,654)		(8,855)
Total funding debt, net of deferred debt issuance costs	$	817,926	$	760,395

Warehouse Credit Facilities

Other Funding Facilities

Notes Issued by Securitization Trusts

balance sheets. In addition to the retained residual certificates, our continued involvement includes loan servicing responsibilities over the life of the underlying loans.

2020-Z1

2020-A

2020-Z2

2021-A

Convertible Debt

Revolving Credit Facility

Debt

9 Months Ended

Mar. 31, 2021

Fair Value of Financial Assets and Liabilities

Debt

Funding Debt

Funding debt and its aggregate future maturities consists of the following (in thousands):


Final Maturity Year Ending	June 30, 2020		March 31, 2021
2021	$	—	$	81,064
2022	171,133		118,678
2023	653,447		295,956
2024	—		155,765
2025	—		—
Thereafter	—		117,787
Total	$	824,580	$	769,250
Deferred debt issuance costs	(6,654)		(8,855)
Total funding debt, net of deferred debt issuance costs	$	817,926	$	760,395

Warehouse Credit Facilities

Other Funding Facilities

Notes Issued by Securitization Trusts

balance sheets. In addition to the retained residual certificates, our continued involvement includes loan servicing responsibilities over the life of the underlying loans.

2020-Z1

2020-A

2020-Z2

2021-A

Convertible Debt

Revolving Credit Facility

Variable Interest Entities	9 Months Ended
Variable Interest Entities	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities We consolidate VIEs when we are deemed to be the primary beneficiary. 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. Refer to Note 10. Funding Debt for additional information. The creditors of the VIEs have no recourse to the general credit of the Company as the primary beneficiary of the VIEs and the liabilities of the VIEs can only be settled by the respective VIE’s assets. Affirm Asset Securitization Trust 2020-Z1, Affirm Asset Securitization Trust 2020-A, Affirm Asset Securitization Trust 2020-Z2, and Affirm Asset Securitization Trust 2021-A are deemed VIEs. We consolidated the VIEs as the primary beneficiary because we, through our role as the servicer, have both 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 VIEs through holding the retained residual certificates. 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. For these VIEs, the creditors have no recourse to the general credit of the Company 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. Because 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. We did not have any transactions with unconsolidated VIEs in the three and nine months ended March 31, 2020 and 2021.

Fair Value of Financial Assets and Liabilities

9 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

ASC 820, "Fair Value Measurement" ("ASC 820") establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

•Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.

•Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means.

•Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Financial Assets and Liabilities Recorded at Fair Value

The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2020 (in thousands):


	Level 1		Level 2		Level 3		Total
Assets:
Servicing assets	$	—	$	—	$	2,132	$	2,132
Total assets	$	—	$	—	$	2,132	$	2,132
Liabilities:
Constant maturity swaps	$	—	$	3,297	$	—	$	3,297
Servicing liabilities	—		—		1,540		1,540
Performance fee liability	—		—		875		875
Convertible debt derivative	—		—		6,607		6,607
Total liabilities	$	—	$	3,297	$	9,022	$	12,319

The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2021 (in thousands):


	Level 1		Level 2		Level 3		Total
Assets:
Servicing assets	$	—	$	—	$	2,120	$	2,120
Constant maturity swaps	—		3,178		—		3,178
Total assets	$	—	$	3,178	$	2,120	$	5,298
Liabilities:

Servicing liabilities	—		—		2,248		2,248
Performance fee liability	—		—		1,242		1,242
Residual trust certificates	—		—		1,118		1,118
Contingent consideration	—		—		136,357		136,357
Profit share liability	—		—		2,185		2,185
Total liabilities	$	—	$	—	$	143,150	$	143,150

During the year ended June 30, 2020, we acquired a series of constant maturity swaps from an institutional bank for the purpose of offsetting variable cash flows related to loan sale pricing fluctuations with a third-party loan buyer. These derivatives have not been designated as hedging instruments. The constant maturity swaps are recorded at fair value, based on prices quoted for similar financial instruments in markets that are not active, and are presented within other assets or accrued expenses and other liabilities on the interim condensed consolidated balance sheets, together with the collateral amount required by the agreements. Any changes in the fair value of these financial instruments are reflected in other income, net, on the interim condensed consolidated statements of operations and comprehensive loss.

There were no transfers between levels during the year ended June 30, 2020 and the nine months ended March 31, 2021.

Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3)

We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them each reporting period. Since our servicing assets and liabilities, performance fee liability, residual trust certificates, contingent consideration, and profit share liability do

not trade in an active market with readily observable prices, we use significant unobservable inputs to measure fair value. This determination requires significant judgments to be made.

Servicing Assets and Liabilities

We sold loans with an unpaid balance of $630.3 million and $2,087.7 million for the three and nine months ended March 31, 2020, respectively, and $756.7 million and $2,013.2 million for the three and nine months ended March 31, 2021, respectively, for which we retained servicing rights.

As of June 30, 2020 and March 31, 2021, we serviced loans which we sold with a remaining unpaid principal balance of $1,365.6 million and $1,752.7 million, respectively.

We use discounted cash flow models to arrive at an estimate of fair value. Significant assumptions used in the valuation of our servicing rights are as follows:

Adequate Compensation

We estimate adequate compensation as the rate a willing market participant would require for servicing loans with similar characteristics as those in the serviced portfolio.

Discount Rate

Estimated future payments to be received under servicing agreements are discounted as a part of determining the fair value of the servicing rights. For servicing rights on loans, the discount rate reflects the time value of money and a risk premium intended to reflect the amount of compensation market participants would require.

Net Default Rate

We estimate the timing and probability of early loan payoffs, loan defaults and write-offs, thus affecting the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenue and expenses.

We earned $2.8 million and $10.1 million of servicing income for the three and nine months ended March 31, 2020, respectively, and $8.0 million and $17.2 million of servicing income for the three and nine months ended March 31, 2021, respectively.

As of June 30, 2020 and March 31, 2021, the aggregate fair value of the servicing assets was measured at $2.1 million and $2.1 million, respectively, and presented within other assets on the interim condensed consolidated balance sheets. As of June 30, 2020 and March 31, 2021, the aggregate fair value of the servicing liabilities was measured at $1.5 million and $2.2 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):


	Servicing Assets
	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Fair value at beginning of period	$	1,207	$	1,923	$	1,680	$	2,132
Initial transfers of financial assets	895		202		915		1,732
Subsequent changes in fair value	(161)		(5)		(654)		(1,744)
Fair value at end of period	$	1,941	$	2,120	$	1,941	$	2,120

The following table summarizes the activity related to the aggregate fair value of our servicing liabilities (in thousands):


	Servicing Liabilities
	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Fair value at beginning of period	$	2,532	$	2,826	$	1,130	$	1,540
Initial transfers of financial assets	1,110		1,972		2,102		5,185
Subsequent changes in fair value	(1,770)		(2,550)		(1,360)		(4,477)
Fair value at end of period	$	1,872	$	2,248	$	1,872	$	2,248

The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of June 30, 2020:


	Unobservable Input	Minimum		Maximum		Weighted Average
Servicing assets	Discount rate	30.00	%	30.00	%	30.00	%
	Adequate compensation(1)	0.73	%	0.89	%	0.76	%
	Net default rate	0.81	%	0.82	%	0.82	%
Servicing liabilities	Discount rate	30.00	%	30.00	%	30.00	%
	Adequate compensation(1)	2.00	%	3.18	%	2.55	%
	Net default rate	6.45	%	10.99	%	9.16	%

(1)Estimated cost of servicing a loan as a percentage of unpaid principal balance

The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of March 31, 2021:


	Unobservable Input	Minimum		Maximum		Weighted Average
Servicing assets	Discount rate	30.00	%	30.00	%	30.00	%
	Adequate compensation (1)	0.70	%	1.64	%	0.91	%
	Net default rate	0.51	%	2.97	%	0.97	%
Servicing liabilities	Discount rate	30.00	%	30.00	%	30.00	%
	Adequate compensation (1)	1.16	%	3.61	%	2.66	%
	Net default rate	0.64	%	6.79	%	5.90	%

(1)Estimated cost of servicing a loan as a percentage of unpaid principal balance

The following table summarizes the effect that adverse changes in estimates would have on the fair value of the servicing assets and liabilities given hypothetical changes in significant unobservable inputs (in thousands):


	June 30, 2020		March 31, 2021
Servicing assets
Net default rate assumption:
Net default rate increase of 25%	$	(9)	$	(5)
Net default rate increase of 50%	$	(21)	$	(9)
Adequate compensation assumption:
Adequate compensation increase of 25%	$	(1,338)	$	(1,775)
Adequate compensation increase of 50%	$	(2,675)	$	(3,550)
Discount rate assumption:
Discount rate increase of 25%	$	(27)	$	(16)
Discount rate increase of 50%	$	(56)	$	(37)
Servicing liabilities
Net default rate assumption:
Net default rate increase of 25%	$	(8)	$	(9)
Net default rate increase of 50%	$	(12)	$	(18)
Adequate compensation assumption:
Adequate compensation increase of 25%	$	1,438	$	1,724
Adequate compensation increase of 50%	$	2,875	$	3,448
Discount rate assumption:
Discount rate increase of 25%	$	(48)	$	(83)
Discount rate increase of 50%	$	(91)	$	(159)

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, on the interim condensed consolidated statements of operations and comprehensive loss.

The following table summarizes the activity related to the fair value of the performance fee liability (in thousands):


	Performance Fee Liability
	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Fair value at beginning of period	$	211	$	1,205	$	488	$	875
Purchases of loans	278		349		779		1,070
Subsequent changes in fair value	(278)		(312)		(1,056)		(703)
Fair value at end of period	$	211	$	1,242	$	211	$	1,242

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 table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability as of June 30, 2020:


Unobservable Input	Minimum		Maximum		Weighted Average
Discount rate	10.00	%	10.00	%	10.00	%
Refund rate	4.50	%	4.50	%	4.50	%
Default rate	2.17	%	3.71	%	2.72	%

The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability as of March 31, 2021:


Unobservable Input	Minimum		Maximum		Weighted Average
Discount rate	10.00	%	10.00	%	10.00	%
Refund rate	4.50	%	4.50	%	4.50	%
Default rate	1.89	%	4.65	%	2.44	%

Convertible Debt Derivative

Refer to Note 12. Debt for a description of the convertible debt derivative liability. On September 11, 2020, the convertible notes were converted into 4,444,321 shares of Series G-1 redeemable convertible preferred stock. The conversion of the notes was accounted for as a debt extinguishment and as such the convertible debt derivative liability was extinguished.

Residual Trust Certificates

Refer to Note 11. Notes Issued by Securitization Trusts for a description of the 2020-Z2 securitization trust. The remaining 6.6% residual trust certificates held by third-party investor(s) is 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, on the interim condensed consolidated statements of operations and comprehensive loss. The following table summarizes the activity related to the fair value of the residual trust certificates (in thousands):


	Three Months Ended March 31, 2021		Nine Months Ended March 31, 2021
Fair value at beginning of period	$	1,348	$	—
Initial transfer of financial assets	—		1,622
Repayments	(154)		(154)
Subsequent changes in fair value	(76)		(350)
Fair value at end of period	$	1,118	$	1,118

Significant unobservable inputs used for our Level 3 fair value measurement of the 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 table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates as of March 31, 2021:


Unobservable Input	Minimum		Maximum		Weighted Average
Discount rate	10.00	%	10.00	%	10.00	%
Loss rate	0.75	%	0.75	%	0.75	%
Prepayment rate	8.00	%	8.00	%	8.00	%

Contingent Consideration

Our acquisition of PayBright included consideration transferred and shares held in escrow, contingent upon the achievement of future milestones. We classified the contingent consideration as a liability and will remeasure the liability to its fair value at each reporting date until the contingency is resolved. The acquisition date fair value of the contingent consideration liability was estimated using a Monte Carlo simulation. The number of shares released from escrow is determined based on simulated revenues, and the acquisition date fair value of the contingent consideration is equal to the number of shares released from escrow multiplied by the simulated share price, discounted at the risk-free rate. The change in fair value of the contingent consideration at each reporting date is recognized as a component of other income, net in the interim condensed consolidated statements of operations and comprehensive loss for the respective period.

The following table summarizes the activity related to the fair value of the contingent consideration during the three and nine months ended March 31, 2021 (in thousands):


	Three Months Ended March 31, 2021		Nine Months Ended March 31, 2021
Fair value at beginning of period	$	—	$	—
Acquisition date fair value	57,275		57,275
Subsequent changes in fair value	78,499		78,499
Effect of foreign currency translation	583		583
Fair value at end of period	$	136,357	$	136,357

Significant unobservable inputs used for our Level 3 fair value measurement of the contingent consideration are the discount rate, equity volatility, and revenue volatility. 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 presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the contingent consideration as of March 31, 2021:


Unobservable Input	Minimum	Maximum	Weighted Average
Discount rate	12.00%	12.00%	12.00%
Equity volatility	48.00%	78.00%	64.00%
Revenue volatility	21.00%	47.00%	44.00%

Profit Share Liability

During the three months ended March 31, 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 on their properties. 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 during the three and nine months ended March 31, 2021 (in thousands):


	Three Months Ended March 31, 2021		Nine Months Ended March 31, 2021
Fair value at beginning of period	$	—	$	—
Facilitation of loans	2,185		2,185

Fair value at end of period	$	2,185	$	2,185

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 table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the profit sharing liability as of March 31, 2021:


Unobservable Input	Minimum	Maximum	Weighted Average
Discount rate	30.00%	30.00%	30.00%
Program profitability	1.79%	3.75%	3.75%

Financial Assets and Liabilities Not Recorded at Fair Value

The following table presents the fair value hierarchy for financial assets and liabilities not recorded at fair value as of June 30, 2020 (in thousands):


	Carrying Amount		Level 1		Level 2		Level 3		Balance at Fair Value
Assets:
Cash and cash equivalents	$	267,059	$	267,059	$	—	$	—	$	267,059
Restricted cash	61,069		61,069		—		—		61,069
Loans held for sale	4,459		—		4,459		—		4,459
Loans held for investment, net	939,175		—		—		922,919		922,919
Accounts receivable, net	59,001		—		59,001		—		59,001
Other assets	7,984		—		7,984		—		7,984
Total assets	$	1,338,747	$	328,128	$	71,444	$	922,919	$	1,322,491
Liabilities:
Accounts payable	$	18,361	$	—	$	18,361	$	—	$	18,361
Payable to third-party loan owners	24,998		—		24,998		—		24,998
Accrued interest payable	1,860		—		1,860		—		1,860
Accrued expenses and other liabilities	25,395		—		25,395		—		25,395
Convertible debt	67,615		—		—		67,615		67,615
Funding debt	817,926		—		—		805,910		805,910
Total liabilities	$	956,155	$	—	$	70,614	$	873,525	$	944,139

The following table presents the fair value hierarchy for financial assets and liabilities not recorded at fair value as of March 31, 2021 (in thousands):


	Carrying Amount		Level 1		Level 2		Level 3		Balance at Fair Value
Assets:
Cash and cash equivalents	$	1,623,672	$	1,623,672	$	—	$	—	$	1,623,672
Restricted cash	183,330		183,330		—		—		183,330
Loans held for sale	12,774		—		12,774		—		12,774
Loans held for investment, net	2,081,640		—		—		2,063,882		2,063,882
Accounts receivable, net	66,080		—		66,080		—		66,080
Other assets	141,877		—		141,877		—		141,877
Total assets	$	4,109,373	$	1,807,002	$	220,731	$	2,063,882	$	4,091,615
Liabilities:
Accounts payable	$	29,005	$	—	$	29,005	$	—	$	29,005
Payable to third-party loan owners	36,523		—		36,523		—		36,523
Accrued interest payable	3,891		—		3,891		—		3,891
Accrued expenses and other liabilities	148,278		—		148,278		—		148,278
Notes issued by securitization trusts	1,241,126		—		—		1,250,285		1,250,285
Funding debt	769,250		—		—		769,250		769,250
Total liabilities	$	2,228,073	$	—	$	217,697	$	2,019,535	$	2,237,232

Redeemable Convertible Preferred Stock and Stockholders’ Deficit

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Redeemable Convertible Preferred Stock and Stockholders’ Deficit

9 Months Ended

Mar. 31, 2021

Equity [Abstract]

Redeemable Convertible Preferred Stock

On January 12, 2021, prior to our initial public offering, all outstanding shares of redeemable convertible preferred stock were converted into shares of our common stock on a one-to-one basis and their carrying value of $1.3 billion was reclassified into stockholders' deficit. Following this conversion, we amended and restated our certificate of incorporation to effect a reclassification of each share of our outstanding common stock into ½ share of Class A common stock and ½ share of Class B common stock, with cash paid for fractional shares. As of March 31, 2021, there were no shares of redeemable convertible preferred stock issued and outstanding.

A summary of the authorized, issued and outstanding redeemable convertible preferred stock as of June 30, 2020 is as follows:


	Shares		Carrying Value (in thousands)		Liquidation Preference (in thousands)
Series	Authorized	Issued and Outstanding
A	21,428,572	21,428,572	$	21,598	$	21,616
B	19,788,417	19,788,417	25,941		26,000
C	15,129,141	13,802,530	72,661		72,905
D	22,705,526	22,318,532	137,471		137,614
E	21,391,882	21,391,882	242,435		242,597
F	24,009,471	23,386,038	304,064		308,300
Total	124,453,009	122,115,971	$	804,170	$	809,032

In September 2020 and October 2020, we issued 21,836,687 shares of Series G redeemable convertible preferred stock at $19.93 per share for an aggregate purchase amount of $434.9 million. These shares had a liquidation preference of $435.1 million. As part of this equity financing round, the convertible notes issued in April 2020 converted into 4,444,321 shares of Series G-1 redeemable convertible preferred stock. These shares had a liquidation preference of $75.3 million.

Common Stock

The Company had shares of common stock reserved for issuance as follows:


	June 30, 2020	March 31, 2021
Conversion of redeemable convertible preferred stock	122,115,971	—
Exercise of warrants	706,065	—
Available outstanding under stock option plan	50,771,657	59,814,412
Available for future grant under stock option plan	4,904,531	30,158,763
Total	178,498,224	89,973,175

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 nine months ended March 31, 2021, we granted warrants to purchase 20,297,595 shares of common stock in connection with a commercial agreement with Shopify Inc. The exercise price was $0.01 per share, and the term of the warrants was 10 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 10 years, volatility of 52%, and a risk-free rate of 0.62%. In connection with these warrants, we recognized an asset of $270.6 million at March 31, 2021 associated with the fair value of the warrants, which were fully vested as of

March 31, 2021. This asset is recorded in our interim condensed consolidated balance sheets within other assets. Refer to Note 6. Balance Sheet Components for more information on the asset and related amortization.

The following table summarizes the warrant activity during the nine months ended March 31, 2021:


	Number of Shares	Weighted Average Exercise Price ($)	Weighted Average Remaining Life (years)
Warrants outstanding, June 30, 2020	706,065	$2.50	7.21
Granted	20,297,595	0.01	10.00
Exercised	(20,651,583)	0.04	9.18
Cancelled	(352,077)	3.80	8.52
Warrants outstanding, March 31, 2021	—	$—	0.00

Equity and Cash Incentive Plans

9 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Equity and Cash Incentive Plans

2012 Equity Incentive Plan

Under our 2012 Equity Incentive Plan (the “Plan”), we may grant incentive and nonqualified stock options, restricted stock, and RSUs to employees, officers, directors, and consultants. As of March 31, 2021, the maximum number of shares of common stock which may be issued under the Plan is 118,374,202 shares. As of June 30, 2020, and March 31, 2021, there were 4,904,531 and 30,158,763 shares of common stock, respectively, available for future grants under the Plan.

Stock Options

The following table summarizes our stock option activity for the nine months ended March 31, 2021:


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Balance, June 30, 2020	42,536,487	$	5.17	7.54
Granted	16,009,746	49.10
Exercised	(11,213,678)	4.07
Forfeited, expired or cancelled	(1,541,557)	7.22
Balance, March 31, 2021	45,790,998	20.73		7.97
Vested and exercisable, March 31, 2021	19,592,979	$	4.39	6.45	$	1,283,101
Vested and exercisable, and expected to vest thereafter(1) March 31, 2021	42,645,938	$	20.32	7.90	$	2,263,965

(1)Options expected to vest reflect the application of an estimated forfeiture rate.

Value Creation Award

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”). As discussed below, the Value Creation Award will only be earned, if at all, in the event the price of our Class A common stock attains stock price hurdles that are significantly in excess of the Company's IPO price per share, over a period of five years, subject to Mr. Levchin’s continued service to the Company.

The Value Creation Award is divided into ten tranches, each of which Mr. Levchin may earn by satisfying a performance condition within a five-year period following the IPO. The performance condition for each tranche will be satisfied on the date the 90 average trading day volume weighted share price of the Company’s Class A common stock exceeds certain specified stock price hurdles, presented in the table below, which were determined based on a target percentage of share price appreciation from the IPO price. Once earned as a result of satisfying the performance condition, the options will vest and become exercisable over a five-year period that commenced at the time of the IPO, subject to Mr. Levchin’s continued service to the Company, in annual amounts equal to 15%, 15%, 20%, 25% and 25%, respectively. The per share exercise price of the Value Creation Award is $49.00, the price to the public in the IPO.


Tranche	Stock Price Hurdle		Number of Options
1	$	65.66	1,000,000
2	$	82.32	1,000,000
3	$	98.98	1,000,000
4	$	115.64	1,000,000
5	$	132.30	1,000,000
6	$	148.47	1,000,000
7	$	165.13	1,000,000
8	$	181.79	1,000,000
9	$	247.94	2,250,000
10	$	371.91	2,250,000
Total			12,500,000

We estimated the fair value of the Value Creation Award granted with market conditions on the grant date using a Monte Carlo simulation model. We recognize stock-based compensation on these awards on an accelerated attribution method over the requisite service period, and only if performance-based conditions are considered probable of being satisfied. During both the three and nine months ended March 31, 2021, we incurred stock-based compensation expense of $38.5 million 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.

Restricted Stock Units

During the nine months ended March 31, 2021, we awarded 10,185,952 RSUs to certain employees under the Plan. 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. We record stock-based compensation expense for performance-based equity awards and stock on an accelerated attribution method over the requisite service period, which is generally four years, and only if performance-based conditions are considered probable of being satisfied. 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 four years.

The following table summarizes our RSU activity during the nine months ended March 31, 2021:


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested at June 30, 2020	8,235,170	$	7.95
Granted	10,185,952	35.25
Vested	(3,537,425)	98.55
Forfeited, expired or cancelled	(860,283)	9.95
Non-vested at March 31, 2021	14,023,414	$	27.96

Stock-Based Compensation Expense

The following table presents the components and classification of stock-based compensation (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
General and administrative	$	3,665	$	82,421	$	11,166	$	88,722
Technology and data analytics	3,360		45,980		10,297		50,749
Sales and marketing	918		9,933		3,172		11,274
Processing and servicing	27		1,413		54		1,726
Total stock-based compensation in operating expenses	7,970		139,747		24,689		152,471
Capitalized into property, equipment and software, net	667		6,567		2,350		7,792
Total stock-based compensation expense	$	8,637	$	146,314	$	27,039	$	160,263

Upon our IPO, we recognized $65.1 million of stock-based compensation expense for awards with a performance-based vesting condition satisfied at IPO. Shares were then issued related to the vesting of the RSUs with such performance-based vesting conditions. To meet the related tax withholding requirements, we withheld approximately 1.0 million of the 2.6 million shares of common stock issued. Based on the closing trading market price on the day of IPO of $97.24 per share, the tax withholding obligation was approximately $102.5 million. As a result of stock-based compensation expense for vested and unvested RSUs upon the IPO, we recorded an additional deferred tax asset that is offset by a full valuation allowance.

Cash Incentive Plan

On March 4, 2021, the Compensation Committee of the Board of Directors approved the terms of a cash incentive plan (the “Fiscal 2021 Cash Incentive Plan”) for its senior executives who do not participate in a Company sales incentive plan. The Fiscal 2021 Cash Incentive Plan provides such individuals with the opportunity to earn cash incentive plan awards based upon the achievement of Company performance goals during the second half of the Company’s 2021 fiscal year (the “Performance Period”). The target incentive plan award for each senior executive is determined by multiplying the senior executive’s target percentage by the total amount of his or her base pay received during the Performance Period. We recorded expense related to the cash incentive plan of $0.9 million for the three and nine months ended March 31, 2021, respectively. As of March 31, 2021, we had accrued $0.9 million related to the cash incentive plan.

Income Taxes	9 Months Ended
Income Taxes	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three and nine months ended March 31, 2020, we recorded income tax expense (benefit) of $0.1 million and $0.3 million, which was primarily attributable to various state income taxes. For the three and nine months ended March 31, 2021, we recorded income tax expense (benefit) of $(0.1) million and $0.1 million, which was primarily attributable to the effects of foreign income taxes and various state income taxes. As of March 31, 2021, we continue to recognize a full valuation allowance against net deferred tax assets. This determination was based on the assessment of the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. The amount of deferred tax assets considered realizable in future periods may change as management continues to reassess the underlying factors it uses in estimating future taxable income.

Net Loss per Share Attributable to Common Stockholders

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Net Loss per Share Attributable to Common Stockholders

9 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

On January 12, 2021, we amended and restated our certificate of incorporation to effect a reclassification of each share of our outstanding common stock into ½ share of Class A common stock and ½ share of Class B common stock, with cash paid for fractional shares. Therefore, we have two classes of common stock: Class A common stock and Class B common stock. The rights, including the dividends and distributions, of the holders of our Class A and Class B common stock are identical, except with respect to voting. Additionally, the conversion of all outstanding shares of redeemable convertible preferred stock into shares of our common stock occurred immediately prior to the reclassification.

The following table presents basic and diluted net loss per share attributable to common stockholders for Class A and Class B (in thousands, except share and per share data):


	Three Months Ended March 31, 2020		Nine Months Ended March 31, 2020
Numerator:
Basic
Net Loss	$	(85,620)		$	(147,411)
Excess return to preferred stockholders on repurchase	—			(13,205)
Net Loss Attributable to Common Stockholders	$	(85,620)		$	(160,616)
Diluted
Net Loss	$	(85,620)		$	(147,411)
Excess return to preferred stockholders on repurchase	—			(13,205)



Net Loss Attributable to Common Stockholders	$	(85,620)		$	(160,616)
Denominator:
Basic
Weighted average shares outstanding, basic	47,435,554			47,974,768
Total-basic	47,435,554			47,974,768
Diluted
Weighted average common shares outstanding, diluted	47,435,554			47,974,768

Total-diluted	47,435,554			47,974,768
Net loss per share attributable to common stockholders:
Basic	$	(1.80)		$	(3.35)
Diluted	$	(1.80)		$	(3.35)


	Three Months Ended March 31, 2021				Nine Months Ended March 31, 2021
	Class A		Class B		Class A		Class B
Numerator:
Basic
Net Loss	$	(129,975)	$	(117,184)	$	(133,038)	$	(144,677)

Net Loss Attributable to Common Stockholders	$	(129,975)	$	(117,184)	$	(133,038)	$	(144,677)
Diluted
Net Loss	$	(129,975)	$	(117,184)	$	(133,038)	$	(144,677)
Excess return to preferred stockholders on repurchase	—		—		(14,428)		(15,677)
Gain on conversion of convertible debt	—		—		191		207
Interest on convertible debt prior to conversion	—		—		859		933

Net Loss Attributable to Common Stockholders	$	(129,975)	$	(117,184)	$	(146,416)	$	(159,214)
Denominator:
Basic
Weighted average shares outstanding, basic	122,691,770		110,617,820		58,520,980		63,640,528
Total-basic	122,691,770		110,617,820		58,520,980		63,640,528
Diluted
Weighted average common shares outstanding, diluted	122,691,770		110,617,820		58,520,980		63,640,528
Weighted average common shares attributable to convertible debt prior to conversion	—		—		583,925		583,925
Total-diluted	122,691,770		110,617,820		59,104,905		64,224,453
Net loss per share attributable to common stockholders:
Basic	$	(1.06)	$	(1.06)	$	(2.27)	$	(2.27)
Diluted	$	(1.06)	$	(1.06)	$	(2.48)	$	(2.48)

The following common stock equivalents, presented based on amounts outstanding, were excluded from the calculation of diluted net loss per share attributable to common stockholders because their inclusion would have been anti-dilutive:


	As of March 31, 2021
	2020	2021
Redeemable convertible preferred stock	122,115,971	—
Stock options, including early exercise of options	43,224,565	33,342,527
Restricted stock units	5,916,547	13,975,457

Common stock warrants	706,065	350,000
Total	171,963,148	47,667,984

Segments and Geographical Information

9 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segments and Geographical Information

We conduct our operations through a single operating segment and, therefore, one reportable segment.

Revenue

Revenue by geography is based on the billing addresses of the borrower or the location of the merchant’s national headquarters. The following table sets forth revenue by geographic area (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
United States	$	137,198	$	224,863	$	354,394	$	603,048
Canada	1,075		5,802		1,802		5,636
Total	$	138,273	$	230,665	$	356,196	$	608,684

Long-Lived Assets

The following table sets forth our long-lived assets, consisting of property, equipment and software, net and operating lease right-of-use assets, by geographic area (in thousands):


	June 30, 2020		March 31, 2021
United States	$	48,140	$	111,416
Canada	—		1,668
Total	$	48,140	$	113,084

Banking and Thrift, Interest [Abstract]

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Subsequent Events	9 Months Ended
Subsequent Events	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events We have evaluated subsequent events through May 14, 2021, which is the date that these interim condensed consolidated financial statements were available to be issued. There were no significant subsequent events identified other than the matters described below. Business Combination On April 20, 2021, the Company entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with certain subsidiaries of the Company, Returnly Technologies, Inc. (“Returnly”), a Delaware corporation, and Shareholder Representative Services LLC, a Colorado limited liability company, solely in its capacity as the representative of the securityholders of Returnly. The transaction closed on May 1, 2021. At the closing of the transaction, all of the issued and outstanding shares of capital stock and warrants to purchase capital stock of Returnly were cancelled in exchange for merger consideration consisting of (a) 3,319,115 shares of the Company’s Class A common stock with an aggregate value of $238.1 million, and (b) $41.9 million in cash, subject to adjustment and escrows, in each case in the amounts and upon the terms and subject to the conditions as set forth in the Merger Agreement. In addition, issued and outstanding vested options to purchase Returnly common stock were cancelled in exchange for approximately $13.6 million in cash. Due to the limited time since the acquisition date, the initial accounting for the business combination is incomplete. As a result, the Company is unable to provide the amounts recognized as of the acquisition date for the major classes of assets acquired and liabilities assumed. 2021-Z1 Securitization On April 26, 2021, Affirm Asset Securitization Trust 2021-Z1 (“2021-Z1”) entered into a note purchase agreement with Barclays Capital Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, and Robert W. Baird & Co. Incorporated to issue $320.0 million of fixed rate asset-backed notes with a maturity date of August 15, 2025. The notes bear interest at a rate of 1.07% per year. On May 5, 2021, we contributed $351.0 million of loan receivables to the 2021-Z1 securitization. On May 12, 2021, we entered into an agreement to sell residual certificates issued by 2021-Z1 to third-party investors representing 95% of the residual certificates issued. We hold the remaining residual certificates and all the risk retention interests. Appointment of Libor Michalek to the Board of Directors On May 8, 2021, the Board of Directors (the “Board”) of the Company appointed Libor Michalek, the Company’s President, Technology, to the Board as a Class I director, with a term expiring at the Company’s 2021 annual meeting of stockholders. Resignation of Chief Legal Officer On May 10, 2021, Sharda Caro del Castillo notified the Company of her decision to resign as Chief Legal Officer of the Company effective as of June 30, 2021. In connection with Ms. Caro del Castillo’s resignation, and in recognition of Ms. Caro del Castillo’s prior service and contributions to the Company, the Company and Ms. Caro del Castillo entered into a Separation Agreement which provides that the vesting of 125,312 outstanding Company stock options and 26,428 outstanding Company restricted stock units held by Ms. Caro del Castillo will be accelerated to the effective date of her resignation. The Separation Agreement also provides for a customary release of claims in favor of the Company and certain other standard provisions.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	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, 2020. The balance sheet as of June 30, 2020 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. Certain prior period amounts have been reclassified to conform to the current period presentation.
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 Delaware business trust entities and limited partnerships established to enter into warehouse credit agreements with certain lenders for funding debt facilities and asset-backed securitization transactions. 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 variable consideration for revenue, the allowance for credit losses, capitalized software development costs, valuation allowance for deferred tax assets, convertible debt derivatives, loss on loan purchase commitment, discount on self-originated loans, the fair value and useful lives of tangible and intangible assets acquired and liabilities assumed resulting from business combinations, the evaluation for impairment of intangible assets and goodwill, the incremental borrowing rate used in discounting our lease liabilities, and stock-based compensation. 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.
Business Combination	We use the acquisition method of accounting for business combination transactions, and, accordingly, recognize the fair values of assets acquired and liabilities assumed in our interim condensed consolidated financial statements. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value. Transaction costs related to the acquisition of the acquired company are expensed as incurred. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The interim condensed consolidated financial statements include the results of operations of any acquired company since the acquisition date.
Goodwill and Intangible Assets	We recognize the excess of the purchase price over the fair value of identifiable net assets acquired at the acquisition date as goodwill. Goodwill is not amortized but is reviewed for impairment annually and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform a quantitative goodwill impairment test by determining the fair value of the reporting unit and comparing it to the carrying value of the reporting unit. If the fair value of the reporting unit is greater than the reporting unit’s carrying value, then the carrying value of the reporting unit is deemed to be recoverable. If the carrying value of the reporting unit is greater than the reporting unit’s fair value, goodwill is impaired and written down to the reporting unit’s fair value. Acquired intangible assets consisting of identifiable intangible assets are comprised of developed technology, merchant relationships, and trade names resulting from acquisitions. Acquired intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated economic lives following the pattern in which the economic benefits of the assets will be consumed, which is on a straight-line basis. Acquired intangible assets are presented net of accumulated amortization on the interim condensed consolidated balance sheets. We review the carrying amounts of intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. We measure the recoverability of intangible assets by comparing the carrying amount of each asset to the future undiscounted cash flows we expect the asset to generate. If we consider any of these assets to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. In addition, we periodically evaluate the estimated remaining useful lives of long-lived intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation or amortization.
Revenue Recognition	Merchant Network Revenue — Revenue from Contracts with Customers Merchant network revenue consists of merchant fees. Merchant partners (or merchants) are charged a fee on each transaction 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 terms of the executed merchant agreement have been fulfilled and the merchant successfully confirms the transaction. 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 promotional incentives to offer incentives to promote our platform to their customers, such as fee reductions or rebates. These amounts, as well as refunds, are recorded as a reduction of revenue and netted against 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, which we record as a reduction to merchant network revenue. In order to continue to expand our consumer base, we may originate loans under certain merchant arrangements that we do not expect to achieve positive revenue. In these instances, the loss is recorded as sales and marketing expense. On May 5, 2021, our largest merchant partner, Peloton, announced a voluntary recall of two of its products following a report by the U.S. Consumer Product Safety Commission released on April 17, 2021. Pursuant to ASC 606, we have revised our estimate of the variable consideration associated with revenue earned on the facilitation of transactions related to the recalled products and have recorded a reduction in revenue of $3.5 million in the current period. Virtual Card Network Revenue — Revenue from Contracts with Customers We have agreements with issuer processors to facilitate transactions through the issuance of virtual debit cards to be used by consumers at checkout. Consumers can apply for a virtual debit card through the Affirm app and, upon approval, receive a single-use virtual debit card to be used for their purchase online or offline at a non-integrated merchant. The non-integrated merchants are charged interchange fees by the issuer processor for virtual debit card transactions, as with all debit card purchases, and the issuer processor shares a portion of this revenue with us. We also leverage this issuer processor as a means of integrating certain merchants. Similarly, for these arrangements, the merchant is charged interchange fees by the issuer processor and the issuer processor shares a portion of this revenue with us. Our contracts with issuer processors are defined at the transaction level and do not extend beyond the service already provided. The fees collected from issuer processors 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 fees collected are presented in revenue, net of associated processing fees. As the issuer processors do not provide distinct services to us, any fees paid to the issuer processors are offset against collected fees. We have concluded that these fees do 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 issuer processors to facilitate transactions with consumers. Interest Income We accrue interest income using the effective interest method. Interest income on a loan is accrued daily, based on the finance charge disclosed to the consumer, over the term of the loan based upon the principal outstanding. The accrual of interest on a loan is suspended if a formal dispute with the borrower 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 June 30, 2020 and March 31, 2021, the balance of loans held for investment on non-accrual status was $0.3 million and $0.5 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. 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 are amortized into interest income over the life of the loan using the effective interest method. The amortization is presented together as interest income in the interim condensed consolidated statements of operations and comprehensive loss. Servicing Income Servicing fees are contractual fees specified in our servicing agreements with third-party loan owners 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. We recognize this revenue on a monthly basis.
Customer Referral Partners	From time to time, we make payments to customer referral partners providing lead generation services for each transaction processed through our technology platform. We first evaluate whether the customer referral partner is a customer or a vendor. We consider customer referral partners as customers if we determine they are the principal to eligible merchants in providing the facilitation of credit service. We consider customer referral partners as vendors if we determine that we are the principal to eligible merchants in providing the facilitation of credit service. Payments made to customer referral partners that are not considered to be our customers are expensed as over the period of benefit and recorded in processing and servicing within our interim condensed consolidated statements of operations and comprehensive loss.
Stock-Based Compensation	We account for stock-based compensation expense in accordance with the fair value recognition and measurement provisions of U.S. GAAP, which requires compensation cost for the grant date fair value of stock-based awards to be recognized over the requisite service period. In addition, we made an accounting policy election to estimate the expected forfeiture rate for service-based awards and only recognize expense for those stock-based awards expected to vest. We estimate the forfeiture rate based on our historical experience with stock-based awards that are granted and forfeited prior to vesting. The fair value of stock-based awards, granted or modified, is determined on the grant date (or modification or acquisition dates, if applicable) at fair value, using appropriate valuation techniques. Service-Based Awards We record stock-based compensation expense for service-based stock options and restricted stock units (“RSUs") on a straight-line basis over the requisite service period, which is generally four years. Stock-based compensation expense for all stock-based awards is based on the grant date fair value and is recognized on a straight-line basis over the requisite service period of the awards, which is generally the option vesting term of four years. The fair value of each option on the date of grant is determined using the Black Scholes-Merton option pricing model using the single-option award approach. Volatility is based on historical volatility rates obtained from comparable publicly-traded companies that operate in the same or related business as us, as there is no market or historical data for our common stock. The risk-free interest rate is determined using a U.S. Treasury rate for the period that coincides with the expected term set forth. We used the simplified method to determine an estimate of the expected term of an employee stock option. We account for stock-based awards to non-employees, including consultants, in accordance with ASC 718, in which equity-classified awards are measured at the grant date fair value and recognized as expense in the period and manner as though we had paid cash in exchange for goods or services instead of granting a stock-based award. Performance-Based Awards We have granted RSUs that vest upon the satisfaction of both service-based and performance-based conditions. The service-based condition for these awards generally is satisfied over four years. The performance-based condition is satisfied upon the occurrence of a qualifying event, defined as the earlier of (i) the closing of certain specific liquidation or change in control transactions, or (ii) an IPO. We record stock-based compensation expense for performance-based equity awards and stock on an accelerated attribution method over the requisite service period, which is generally four years, and only if performance-based conditions are considered probable of being satisfied. Prior to the IPO in January 2021, we had not recognized stock-based compensation expense as the qualifying event described above had not yet occurred and was not considered probable of occurring. With the completion of our IPO on January 15, 2021, we recognized a cumulative catch-up stock-based compensation charge of $65.1 million associated with the vesting of RSUs for which the service-based condition had been met prior to the IPO. Stock-based compensation expense related to remaining service-based awards after the IPO is recorded over the remaining requisite service period. Upon exercise or vesting of a stock-based award, if the tax deduction exceeds the compensation cost that was previously recorded for financial statement purposes, this will result in an excess tax benefit. Market-Based Awards We have granted stock option awards with service-based and performance-based vesting conditions, with market-based conditions that are incorporated into the grant date fair value. The stock option awards are earned as a result of satisfying the performance-based conditions and become vested and exercisable upon satisfying the service-based conditions. We determined the grant date fair value of these awards by utilizing a Monte Carlo simulation model that incorporates the possibility that the market-based conditions may not be satisfied. The Monte Carlo simulation also incorporates assumptions including expected stock price volatility, expected term, and risk-free interest rates. We estimate the volatility of common stock on the date of grant based on the weighted-average historical stock price volatility of comparable publicly-traded companies in our industry group. We estimate the expected term of the award based on various exercise scenarios. The risk-free interest rate is determined using a U.S. Treasury rate for the period that coincides with the expected term set forth. The grant date and service inception date of the stock option awards is the date of Affirm's IPO, or January 13, 2021. We record stock-based compensation expense for market-based equity awards such as RSUs and stock options on an accelerated attribution method over the requisite service period, and only if performance-based conditions are considered probable of being satisfied.
Recently Adopted Accounting Standards and Recent Accounting Pronouncements Not Yet Adopted	As of March 31, 2021, we no longer qualify as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As such, we are no longer entitled to take advantage of the exemptions from various reporting requirements applicable to emerging growth companies, including extended transition periods for complying with new or revised accounting standards. Accordingly, as discussed more fully below, we adopted certain new or revised accounting standards in the third quarter of fiscal 2021 for which adoption previously had been deferred. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” ("ASC 606"). ASC 606 requires revenue to be recognized in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services and also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts. Subsequent to the issuance of ASU 2014-09, the FASB issued several amendments to ASC 606 to clarify or improve the revenue recognition standard such as principal versus agent considerations in ASU 2016-08, technical corrections and improvements to ASC 606 in ASU 2016-20, and clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial asset in ASU 2017-05. In June 2020, the FASB issued ASU 2020-05, “Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities” ("ASC 842"), which amends the effective dates of ASC 606 and ASC 842 to give immediate relief to certain entities as a result of the widespread adverse economic effects and business disruptions caused by the COVID-19 pandemic. ASU 2020-05 permits certain entities that have not yet made statements available for issuance to adopt ASC 606 for annual reporting periods beginning after December 15, 2019, and for interim reporting periods within annual reporting periods beginning after December 15, 2020. Under ASU 2020-05, we adopted ASC 606 on July 1, 2020 using the modified retrospective transition method. Under this method, we evaluated contracts that were not complete as of the date of adoption as if those contracts had been accounted for under ASC 606. Under the modified retrospective transition approach, periods prior to the adoption date were not adjusted and continue to be reported in accordance with revenue accounting literature in effect during those periods. The adoption of ASC 606 did not have a material impact on our revenue arrangements. ASC 606 explicitly excludes revenue generated in accordance with ASC 310, "Receivables" and ASC 860, "Transfers and Servicing." Accordingly, we have concluded that interest income, gains on loan sales and servicing income are not affected by the adoption of ASC 606 and its related amendments. Merchant network revenue and virtual card network revenue are within the scope of ASC 606. Stock-Based Compensation In June 2018, the FASB issued ASU 2018-07, “Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” that expands on the scope of ASC 718 to include stock-based payment transactions for acquiring goods and services from non-employees. For non-public business entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity’s adoption of ASC 606. We adopted ASC 606 effective July 1, 2020 and have correspondingly adopted ASU 2018-07 as of that date. There was no material impact to existing stock-based awards to non-employees. Income Taxes In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” ("ASC 740"), which removes certain exceptions related to the approach for intraperiod tax allocation, recognizing deferred tax liabilities for outside basis differences and calculating income taxes in interim periods. The guidance also reduces complexity in certain areas, including franchise taxes that are partially based on income and accounting for tax law changes in interim periods. We early adopted the new standard effective July 1, 2020 on a prospective basis. The adoption of the new standard did not have a material impact on our interim condensed consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” ("ASC 842") which substantially modifies lessee accounting for leases, and requires most leases to be recognized on the balance sheet with enhanced disclosures. ASC 842 provides that a contract is, or contains, a lease if it conveys the right to control the use of an identified asset and, accordingly, a lease liability and a related right-of-use ("ROU") asset is recognized at the commencement date. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Subsequent to the issuance of ASC 842, the FASB issued several amendments to ASC 842 to clarify or improve the new leases standard, including the codification and targeted improvements in ASUs 2018-10 and 2019-01 and the narrow-scope improvements for lessors in ASU 2018-20. In August 2018, the FASB issued ASU 2018-11, “Targeted Improvements to ASC 842,” which included an option to not restate comparative periods in transition and elect to use the effective date of ASU 2016-02 as the date of initial application (the “effective date” method). Following the loss of our emerging growth company status during the third quarter of fiscal 2021, we adopted ASC 842 with an effective date of July 1, 2020 using the modified retrospective transition approach by applying the standard to all leases existing at the date of initial application and not restating comparative periods. Refer to Note 7. Leases for further information on the implementation of the standard. We have elected the practical expedients permitted under the transition guidance, which allowed us not to reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) the accounting for any initial direct costs for any expired or existing leases. We also elected the practical expedients allowing the combination of lease and non-lease components by class of underlying asset. In addition, we have elected the short-term lease exception and will not recognize ROU assets or lease liabilities for qualifying leases (leases with a term of less than 12 months from lease commencement). As a result of the adoption of ASC 842, we recognized ROU assets included in other assets in the interim condensed consolidated balance sheets and lease liabilities for operating leases included in accrued expenses and other liabilities in the interim condensed consolidated balance sheets of $66.7 million and $71.2 million, respectively, as of July 1, 2020 with a $0.1 million in cumulative effect adjustment to accumulated deficit. The aggregate lease liability differs from the ROU asset primarily due the unamortized balance of deferred rent, which, prior to July 1, 2020, was included in accrued expenses and other liabilities in the interim condensed consolidated balance sheet. ROU assets are reviewed for impairment, consistent with other long-lived assets, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. After a ROU asset is impaired, any remaining balance of the ROU asset is amortized on a straight-line basis over the shorter of the remaining lease term or the estimated useful life. We currently have no finance leases. The adoption of the new lease accounting standard had no impact on cash provided by or used in operating, investing or financing activities in our interim condensed consolidated statements of cash flows. The adoption of the new lease accounting standard also did not have a material impact our interim condensed consolidated statements of operations and comprehensive loss. Financial Instruments — Credit Losses In June 2016, the FASB issued amendments on ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326)” ("ASC 326"). The amendments will replace the incurred loss impairment methodology in U.S. GAAP with a methodology that measures expected credit losses based on historical experience, current conditions and a reasonable and supportable forecast. This amendment is generally referred to as the current expected credit loss ("CECL") standard. The amendments in this standard will be recognized through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Subsequent to the issuance of ASU 2016-13, the FASB issued several amendments to ASC 326 to clarify or improve the financial instruments credit losses standard such as codification and targeted improvements in ASUs 2018-19, 2019-04, 2019-05, 2019-11 and 2020-03. Following the loss of our emerging growth company status, we adopted ASC 326 effective July 1, 2020 using the modified retrospective approach for our loans held for investment, which resulted in an increase in the allowance for credit losses of $10.1 million and a cumulative effect adjustment to the beginning balance of accumulated deficit of $10.1 million. Results for reporting periods beginning on or after July 1, 2020 will be presented under the new standard, while prior period amounts before the adoption of CECL on July 1, 2020, continue to be reported in accordance with previously applicable GAAP. Under ASC 326, we maintained our current allowance model and included credit loss allowance assumptions in compliance with ASC 326, which included forecasts for prepayments, recoveries, historical performance, credit rating, as well as current market conditions and expectations for future market conditions. We included the disclosures required by ASC 326 in Note 4. Loans Held for Investment and Allowance for Credit Losses. We have adopted all new accounting pronouncements that are in effect and applicable to us for the period ended March 31, 2021. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” ("ASC 848"). Subject to meeting certain criteria, the new guidance provides optional expedients and exceptions to applying contract modification accounting under existing U.S. GAAP, to address the expected phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021. This ASU is effective for all entities upon issuance as of March 12, 2020 through December 31, 2022. We are in the process of reviewing our revolving credit agreements and loan sale agreements that utilize LIBOR as the reference rate and introducing new fallback language to these agreements. We are in the process of evaluating the impact of this amendment on our consolidated financial statements. Convertible Debt Instruments In August 2020, the FASB issued ASU 2020-06, "Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40),” which simplifies the accounting for convertible instruments. The guidance removes certain accounting models that separate the embedded conversion features from the host contract for convertible instruments. Either a modified retrospective method of transition or a fully retrospective method of transition is permissible for the adoption of this standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted no earlier than the fiscal year beginning after December 15, 2020. We are in the process of evaluating the impact of this amendment on our consolidated financial statements.

Interest Income (Tables)

9 Months Ended

Mar. 31, 2021

Schedule of Interest Income

Interest income consisted of the following components (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Interest income on unpaid principal balance	$	46,444	$	65,921	$	121,179	$	162,666
Amortization of discount on loans held for investment	9,175		31,625		24,904		68,843
Amortization of premiums on loans held for investment	(1,701)		(2,373)		(4,236)		(6,449)
Interest receivable charged-off, net of recoveries	(1,546)		(643)		(4,234)		(2,436)
Total interest income	$	52,372	$	94,530	$	137,613	$	222,624

Loans Held for Investment and Allowance for Credit Losses (Tables)

9 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Schedule of Loans Held for Investment and Allowance for Credit Loss

Loans held for investment consisted of the following (in thousands):


	June 30, 2020		March 31, 2021
Unpaid principal balance	$	1,049,618	$	2,262,613
Accrued interest receivable	8,707		14,234
Premiums on loans held for investment	4,646		6,736
Less: Discount due to loan commitment liability	(28,659)		(81,883)
Less: Fair value adjustment on loans acquired through business combination	—		(6,306)
Total loans held for investment	$	1,034,312	$	2,195,394

Schedule of Credit Quality by ITACs Score


	Amortized Costs Basis by Fiscal Year of Origination
	2021		2020		2019		2018		2017		Prior		Total
96+	$	1,391,811	$	158,238	$	12,126	$	370	$	2	$	—	$	1,562,547
94 – 96	374,582		16,517		800		34		1		—		391,934
90 – 94	103,938		5,855		74		1		—		—		109,868
<90	28,570		872		2		—		—		—		29,444
No score(1)	78,995		18,384		2,262		463		36		1		100,141
Total loan receivables	$	1,977,896	$	199,866	$	15,264	$	868	$	39	$	1	$	2,193,934
Current period charge-offs	$	8,844	$	5,391	$	291	$	11	$	—	$	—	$	14,537
Current period recoveries	(394)		(1,344)		(1,369)		(653)		(479)		(53)		(4,292)
Current period net charge-offs	$	8,450	$	4,047	$	(1,078)	$	(642)	$	(479)	$	(53)	$	10,245

Schedule of Delinquent Financing Receivables

The following table presents an aging analysis of the amortized cost basis on loans held for investment by delinquency status (in thousands):


	June 30, 2020		March 31, 2021
Non-delinquent loans	$	1,019,492	$	2,138,804
4 – 29 calendar days past due	16,765		24,766
30 – 59 calendar days past due	5,393		12,220
60 – 89 calendar days past due	6,268		10,640
90 – 119 calendar days past due	6,159		7,504
Total amortized cost basis	$	1,054,077	$	2,193,934

Schedule of Loans Held for Investment and Allowance for Credit Loss

The following table details activity in the allowance for credit losses (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Balance at beginning of period	$	85,855	$	124,992	$	66,260	$	95,137
Adjustment due to adoption of new accounting standard	—		—		—		10,083
Provision for credit losses(1)	78,962		(993)		133,800		39,190
Charge-offs	(22,017)		(14,537)		(59,810)		(40,377)
Recoveries of charged-off receivables	2,130		4,292		4,680		9,721
Balance at end of period	$	144,930	$	113,754	$	144,930	$	113,754

Business Combination (Tables)

9 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Schedule of Acquisition Consideration Transferred

The acquisition date fair value of the consideration transferred for PayBright was approximately $288.8 million, which consisted of the following (in thousands):


Cash	$	114,490
Fair value of common stock transferred	116,989
Fair value of contingent consideration	57,275
Total purchase price	$	288,754

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed


Cash and cash equivalents	$	8,219
Restricted cash	1,469
Loans held for investment	89,570


Accounts receivable	1,537
Property, equipment and software	586
Intangible assets	16,653
Other assets	5,651
Total assets acquired	$	123,685
Accounts payable	6,579
Accrued interest payable	23
Accrued expenses and other liabilities	193
Funding debt	85,310
Total liabilities assumed	$	92,105
Net assets acquired	$	31,580

Goodwill	257,174
Total purchase price	$	288,754

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 (Years)
Developed technology	$	6,127	3
Merchant relationships	9,505		4
Trade name	1,021		5
Total intangible assets	$	16,653

Schedule of Pro Forma Consolidated Total Revenues and Net Loss


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Revenue	$	142,385	$	230,665	$	366,233	$	625,157
Net loss	$	(91,307)	$	(246,747)	$	(160,506)	$	(294,297)

Balance Sheet Components (Tables)

9 Months Ended

Mar. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Schedule of Goodwill

The changes in the carrying amount of goodwill during the nine months ended March 31, 2021 were as follows (in thousands):


Balance as of June 30, 2020	$	1,255
Additions	257,174
Effect of foreign currency translation	2,619
Balance as of March 31, 2021	$	261,048

Schedule of Finite-Lived Intangible Assets

Intangible assets consisted of the following (in thousands):


	June 30, 2020
	Gross		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (in years)

Developed technology	$	790	$	(790)	$	—	—
Trademarks and domains	2,146		—		2,146		Indefinite
Other intangibles	350		—		350		Indefinite
Total intangible assets	$	3,286	$	(790)	$	2,496


	March 31, 2021
	Gross		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (in years)
Merchant relationships	$	9,601	$	(600)	$	9,001	3.8
Developed technology	6,979		(1,306)		5,673		2.8
Trademarks and domains	3,178		(52)		3,126		4.8
Other intangibles	350		—		350		Indefinite
Total intangible assets	$	20,108	$	(1,958)	$	18,150

Schedule of Indefinite-Lived Intangible Assets

Intangible assets consisted of the following (in thousands):


	June 30, 2020
	Gross		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (in years)

Developed technology	$	790	$	(790)	$	—	—
Trademarks and domains	2,146		—		2,146		Indefinite
Other intangibles	350		—		350		Indefinite
Total intangible assets	$	3,286	$	(790)	$	2,496


	March 31, 2021
	Gross		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (in years)
Merchant relationships	$	9,601	$	(600)	$	9,001	3.8
Developed technology	6,979		(1,306)		5,673		2.8
Trademarks and domains	3,178		(52)		3,126		4.8
Other intangibles	350		—		350		Indefinite
Total intangible assets	$	20,108	$	(1,958)	$	18,150

Schedule of Intangible Assets, Future Amortization Expense

The expected future amortization expense of these intangible assets as of March 31, 2021 is as follows (in thousands):


2021 (remaining three months)	$	1,167
2022	4,670
2023	4,670
2024	3,638
2025	1,407
2026 and thereafter	103
Total amortization expense	$	15,655

Schedule of Other Assets

Other assets consisted of the following (in thousands):


	June 30, 2020		March 31, 2021

Operating lease right-of-use assets	$	—	$	59,640

Prepaid payroll taxes for stock-based compensation	—		90,945
Prepaid expenses	6,406		20,725

Processing reserves	924		14,247
Other receivables	3,169		17,473
Other assets	9,098		16,838
Total other assets	$	19,597	$	219,868

Schedule of Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands)


	June 30, 2020		March 31, 2021
Contingent consideration liability	$	—	$	136,357
Operating lease liability	—		76,206
Deferred lease liability	4,492		—
Accrued expenses	16,088		35,974
Commercial agreement liability	—		25,140
Other liabilities	7,230		17,751
Total accrued expenses and other liabilities	$	27,810	$	291,428

Leases (Tables)

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Schedule of Lease Term and Discount Rate

Lease term and discount rate information are summarized as follows:


												March 31, 2021
Weighted average remaining lease term (in years)												6.1
Weighted average discount rate												5.6%

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities as of March 31, 2021 are as follows (in thousands) for the years ended:


2021 (remaining three months)	$	3,408
2022	14,812
2023	15,285
2024	15,520
2025	15,766
2026 and thereafter	25,986
Total lease payments	90,777
Less imputed interest	(14,571)
Present value of lease liabilities	$	76,206

Funding Debt (Tables)

9 Months Ended

Mar. 31, 2021

Schedule of Funding Debt and Aggregate Future Maturities

Funding debt and its aggregate future maturities consists of the following (in thousands):


Final Maturity Year Ending	June 30, 2020		March 31, 2021
2021	$	—	$	81,064
2022	171,133		118,678
2023	653,447		295,956
2024	—		155,765
2025	—		—
Thereafter	—		117,787
Total	$	824,580	$	769,250
Deferred debt issuance costs	(6,654)		(8,855)
Total funding debt, net of deferred debt issuance costs	$	817,926	$	760,395

Fair Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Mar. 31, 2021

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 June 30, 2020 (in thousands):


	Level 1		Level 2		Level 3		Total
Assets:
Servicing assets	$	—	$	—	$	2,132	$	2,132
Total assets	$	—	$	—	$	2,132	$	2,132
Liabilities:
Constant maturity swaps	$	—	$	3,297	$	—	$	3,297
Servicing liabilities	—		—		1,540		1,540
Performance fee liability	—		—		875		875
Convertible debt derivative	—		—		6,607		6,607
Total liabilities	$	—	$	3,297	$	9,022	$	12,319

The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2021 (in thousands):


	Level 1		Level 2		Level 3		Total
Assets:
Servicing assets	$	—	$	—	$	2,120	$	2,120
Constant maturity swaps	—		3,178		—		3,178
Total assets	$	—	$	3,178	$	2,120	$	5,298
Liabilities:

Servicing liabilities	—		—		2,248		2,248
Performance fee liability	—		—		1,242		1,242
Residual trust certificates	—		—		1,118		1,118
Contingent consideration	—		—		136,357		136,357
Profit share liability	—		—		2,185		2,185
Total liabilities	$	—	$	—	$	143,150	$	143,150

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):


	Servicing Assets
	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Fair value at beginning of period	$	1,207	$	1,923	$	1,680	$	2,132
Initial transfers of financial assets	895		202		915		1,732
Subsequent changes in fair value	(161)		(5)		(654)		(1,744)
Fair value at end of period	$	1,941	$	2,120	$	1,941	$	2,120

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):


	Servicing Liabilities
	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Fair value at beginning of period	$	2,532	$	2,826	$	1,130	$	1,540
Initial transfers of financial assets	1,110		1,972		2,102		5,185
Subsequent changes in fair value	(1,770)		(2,550)		(1,360)		(4,477)
Fair value at end of period	$	1,872	$	2,248	$	1,872	$	2,248

Schedule of Significant Unobservable Inputs for Level 3 Fair Value Measurement

The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of June 30, 2020:


	Unobservable Input	Minimum		Maximum		Weighted Average
Servicing assets	Discount rate	30.00	%	30.00	%	30.00	%
	Adequate compensation(1)	0.73	%	0.89	%	0.76	%
	Net default rate	0.81	%	0.82	%	0.82	%
Servicing liabilities	Discount rate	30.00	%	30.00	%	30.00	%
	Adequate compensation(1)	2.00	%	3.18	%	2.55	%
	Net default rate	6.45	%	10.99	%	9.16	%

(1)Estimated cost of servicing a loan as a percentage of unpaid principal balance

The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of March 31, 2021:


	Unobservable Input	Minimum		Maximum		Weighted Average
Servicing assets	Discount rate	30.00	%	30.00	%	30.00	%
	Adequate compensation (1)	0.70	%	1.64	%	0.91	%
	Net default rate	0.51	%	2.97	%	0.97	%
Servicing liabilities	Discount rate	30.00	%	30.00	%	30.00	%
	Adequate compensation (1)	1.16	%	3.61	%	2.66	%
	Net default rate	0.64	%	6.79	%	5.90	%

(1)Estimated cost of servicing a loan as a percentage of unpaid principal balance

The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability as of June 30, 2020:


Unobservable Input	Minimum		Maximum		Weighted Average
Discount rate	10.00	%	10.00	%	10.00	%
Refund rate	4.50	%	4.50	%	4.50	%
Default rate	2.17	%	3.71	%	2.72	%

The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability as of March 31, 2021:


Unobservable Input	Minimum		Maximum		Weighted Average
Discount rate	10.00	%	10.00	%	10.00	%
Refund rate	4.50	%	4.50	%	4.50	%
Default rate	1.89	%	4.65	%	2.44	%

The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates as of March 31, 2021:


Unobservable Input	Minimum		Maximum		Weighted Average
Discount rate	10.00	%	10.00	%	10.00	%
Loss rate	0.75	%	0.75	%	0.75	%
Prepayment rate	8.00	%	8.00	%	8.00	%

The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the contingent consideration as of March 31, 2021:


Unobservable Input	Minimum	Maximum	Weighted Average
Discount rate	12.00%	12.00%	12.00%
Equity volatility	48.00%	78.00%	64.00%
Revenue volatility	21.00%	47.00%	44.00%

The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the profit sharing liability as of March 31, 2021:


Unobservable Input	Minimum	Maximum	Weighted Average
Discount rate	30.00%	30.00%	30.00%
Program profitability	1.79%	3.75%	3.75%

Schedule of Sensitivity Analysis of Fair Value, Servicing Assets and Liabilities


	June 30, 2020		March 31, 2021
Servicing assets
Net default rate assumption:
Net default rate increase of 25%	$	(9)	$	(5)
Net default rate increase of 50%	$	(21)	$	(9)
Adequate compensation assumption:
Adequate compensation increase of 25%	$	(1,338)	$	(1,775)
Adequate compensation increase of 50%	$	(2,675)	$	(3,550)
Discount rate assumption:
Discount rate increase of 25%	$	(27)	$	(16)
Discount rate increase of 50%	$	(56)	$	(37)
Servicing liabilities
Net default rate assumption:
Net default rate increase of 25%	$	(8)	$	(9)
Net default rate increase of 50%	$	(12)	$	(18)
Adequate compensation assumption:
Adequate compensation increase of 25%	$	1,438	$	1,724
Adequate compensation increase of 50%	$	2,875	$	3,448
Discount rate assumption:
Discount rate increase of 25%	$	(48)	$	(83)
Discount rate increase of 50%	$	(91)	$	(159)

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):


	Performance Fee Liability
	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Fair value at beginning of period	$	211	$	1,205	$	488	$	875
Purchases of loans	278		349		779		1,070
Subsequent changes in fair value	(278)		(312)		(1,056)		(703)
Fair value at end of period	$	211	$	1,242	$	211	$	1,242

The following table summarizes the activity related to the fair value of the residual trust certificates (in thousands):


	Three Months Ended March 31, 2021		Nine Months Ended March 31, 2021
Fair value at beginning of period	$	1,348	$	—
Initial transfer of financial assets	—		1,622
Repayments	(154)		(154)
Subsequent changes in fair value	(76)		(350)
Fair value at end of period	$	1,118	$	1,118

The following table summarizes the activity related to the fair value of the contingent consideration during the three and nine months ended March 31, 2021 (in thousands):


	Three Months Ended March 31, 2021		Nine Months Ended March 31, 2021
Fair value at beginning of period	$	—	$	—
Acquisition date fair value	57,275		57,275
Subsequent changes in fair value	78,499		78,499
Effect of foreign currency translation	583		583
Fair value at end of period	$	136,357	$	136,357

The following table summarizes the activity related to the fair value of the profit share liability during the three and nine months ended March 31, 2021 (in thousands):


	Three Months Ended March 31, 2021		Nine Months Ended March 31, 2021
Fair value at beginning of period	$	—	$	—
Facilitation of loans	2,185		2,185

Fair value at end of period	$	2,185	$	2,185

Fair Value Hierarchy for Financial Assets and Liabilities Not Recorded at Fair Value

The following table presents the fair value hierarchy for financial assets and liabilities not recorded at fair value as of June 30, 2020 (in thousands):


	Carrying Amount		Level 1		Level 2		Level 3		Balance at Fair Value
Assets:
Cash and cash equivalents	$	267,059	$	267,059	$	—	$	—	$	267,059
Restricted cash	61,069		61,069		—		—		61,069
Loans held for sale	4,459		—		4,459		—		4,459
Loans held for investment, net	939,175		—		—		922,919		922,919
Accounts receivable, net	59,001		—		59,001		—		59,001
Other assets	7,984		—		7,984		—		7,984
Total assets	$	1,338,747	$	328,128	$	71,444	$	922,919	$	1,322,491
Liabilities:
Accounts payable	$	18,361	$	—	$	18,361	$	—	$	18,361
Payable to third-party loan owners	24,998		—		24,998		—		24,998
Accrued interest payable	1,860		—		1,860		—		1,860
Accrued expenses and other liabilities	25,395		—		25,395		—		25,395
Convertible debt	67,615		—		—		67,615		67,615
Funding debt	817,926		—		—		805,910		805,910
Total liabilities	$	956,155	$	—	$	70,614	$	873,525	$	944,139

The following table presents the fair value hierarchy for financial assets and liabilities not recorded at fair value as of March 31, 2021 (in thousands):


	Carrying Amount		Level 1		Level 2		Level 3		Balance at Fair Value
Assets:
Cash and cash equivalents	$	1,623,672	$	1,623,672	$	—	$	—	$	1,623,672
Restricted cash	183,330		183,330		—		—		183,330
Loans held for sale	12,774		—		12,774		—		12,774
Loans held for investment, net	2,081,640		—		—		2,063,882		2,063,882
Accounts receivable, net	66,080		—		66,080		—		66,080
Other assets	141,877		—		141,877		—		141,877
Total assets	$	4,109,373	$	1,807,002	$	220,731	$	2,063,882	$	4,091,615
Liabilities:
Accounts payable	$	29,005	$	—	$	29,005	$	—	$	29,005
Payable to third-party loan owners	36,523		—		36,523		—		36,523
Accrued interest payable	3,891		—		3,891		—		3,891
Accrued expenses and other liabilities	148,278		—		148,278		—		148,278
Notes issued by securitization trusts	1,241,126		—		—		1,250,285		1,250,285
Funding debt	769,250		—		—		769,250		769,250
Total liabilities	$	2,228,073	$	—	$	217,697	$	2,019,535	$	2,237,232

Redeemable Convertible Preferred Stock and Stockholders’ Deficit (Tables)

9 Months Ended

Mar. 31, 2021

Equity [Abstract]

Schedule of Redeemable Convertible Preferred Stock and Common Stock

A summary of the authorized, issued and outstanding redeemable convertible preferred stock as of June 30, 2020 is as follows:


	Shares		Carrying Value (in thousands)		Liquidation Preference (in thousands)
Series	Authorized	Issued and Outstanding
A	21,428,572	21,428,572	$	21,598	$	21,616
B	19,788,417	19,788,417	25,941		26,000
C	15,129,141	13,802,530	72,661		72,905
D	22,705,526	22,318,532	137,471		137,614
E	21,391,882	21,391,882	242,435		242,597
F	24,009,471	23,386,038	304,064		308,300
Total	124,453,009	122,115,971	$	804,170	$	809,032

Schedule of Common Stock, Reserved for Future Issuance

The Company had shares of common stock reserved for issuance as follows:


	June 30, 2020	March 31, 2021
Conversion of redeemable convertible preferred stock	122,115,971	—
Exercise of warrants	706,065	—
Available outstanding under stock option plan	50,771,657	59,814,412
Available for future grant under stock option plan	4,904,531	30,158,763
Total	178,498,224	89,973,175

Schedule of Warrant Activity

The following table summarizes the warrant activity during the nine months ended March 31, 2021:


	Number of Shares	Weighted Average Exercise Price ($)	Weighted Average Remaining Life (years)
Warrants outstanding, June 30, 2020	706,065	$2.50	7.21
Granted	20,297,595	0.01	10.00
Exercised	(20,651,583)	0.04	9.18
Cancelled	(352,077)	3.80	8.52
Warrants outstanding, March 31, 2021	—	$—	0.00

Equity and Cash Incentive Plans (Tables)

9 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

The following table summarizes our stock option activity for the nine months ended March 31, 2021:


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Balance, June 30, 2020	42,536,487	$	5.17	7.54
Granted	16,009,746	49.10
Exercised	(11,213,678)	4.07
Forfeited, expired or cancelled	(1,541,557)	7.22
Balance, March 31, 2021	45,790,998	20.73		7.97
Vested and exercisable, March 31, 2021	19,592,979	$	4.39	6.45	$	1,283,101
Vested and exercisable, and expected to vest thereafter(1) March 31, 2021	42,645,938	$	20.32	7.90	$	2,263,965

(1)Options expected to vest reflect the application of an estimated forfeiture rate.


Tranche	Stock Price Hurdle		Number of Options
1	$	65.66	1,000,000
2	$	82.32	1,000,000
3	$	98.98	1,000,000
4	$	115.64	1,000,000
5	$	132.30	1,000,000
6	$	148.47	1,000,000
7	$	165.13	1,000,000
8	$	181.79	1,000,000
9	$	247.94	2,250,000
10	$	371.91	2,250,000
Total			12,500,000

Schedule of Restricted Stock Unit Activity

The following table summarizes our RSU activity during the nine months ended March 31, 2021:


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested at June 30, 2020	8,235,170	$	7.95
Granted	10,185,952	35.25
Vested	(3,537,425)	98.55
Forfeited, expired or cancelled	(860,283)	9.95
Non-vested at March 31, 2021	14,023,414	$	27.96

Schedule of Components and Classification of Stock-based Compensation

The following table presents the components and classification of stock-based compensation (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
General and administrative	$	3,665	$	82,421	$	11,166	$	88,722
Technology and data analytics	3,360		45,980		10,297		50,749
Sales and marketing	918		9,933		3,172		11,274
Processing and servicing	27		1,413		54		1,726
Total stock-based compensation in operating expenses	7,970		139,747		24,689		152,471
Capitalized into property, equipment and software, net	667		6,567		2,350		7,792
Total stock-based compensation expense	$	8,637	$	146,314	$	27,039	$	160,263

Net Loss per Share Attributable to Common Stockholders (Tables)

9 Months Ended

Mar. 31, 2021

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 (in thousands, except share and per share data):


	Three Months Ended March 31, 2020		Nine Months Ended March 31, 2020
Numerator:
Basic
Net Loss	$	(85,620)		$	(147,411)
Excess return to preferred stockholders on repurchase	—			(13,205)
Net Loss Attributable to Common Stockholders	$	(85,620)		$	(160,616)
Diluted
Net Loss	$	(85,620)		$	(147,411)
Excess return to preferred stockholders on repurchase	—			(13,205)



Net Loss Attributable to Common Stockholders	$	(85,620)		$	(160,616)
Denominator:
Basic
Weighted average shares outstanding, basic	47,435,554			47,974,768
Total-basic	47,435,554			47,974,768
Diluted
Weighted average common shares outstanding, diluted	47,435,554			47,974,768

Total-diluted	47,435,554			47,974,768
Net loss per share attributable to common stockholders:
Basic	$	(1.80)		$	(3.35)
Diluted	$	(1.80)		$	(3.35)


	Three Months Ended March 31, 2021				Nine Months Ended March 31, 2021
	Class A		Class B		Class A		Class B
Numerator:
Basic
Net Loss	$	(129,975)	$	(117,184)	$	(133,038)	$	(144,677)

Net Loss Attributable to Common Stockholders	$	(129,975)	$	(117,184)	$	(133,038)	$	(144,677)
Diluted
Net Loss	$	(129,975)	$	(117,184)	$	(133,038)	$	(144,677)
Excess return to preferred stockholders on repurchase	—		—		(14,428)		(15,677)
Gain on conversion of convertible debt	—		—		191		207
Interest on convertible debt prior to conversion	—		—		859		933

Net Loss Attributable to Common Stockholders	$	(129,975)	$	(117,184)	$	(146,416)	$	(159,214)
Denominator:
Basic
Weighted average shares outstanding, basic	122,691,770		110,617,820		58,520,980		63,640,528
Total-basic	122,691,770		110,617,820		58,520,980		63,640,528
Diluted
Weighted average common shares outstanding, diluted	122,691,770		110,617,820		58,520,980		63,640,528
Weighted average common shares attributable to convertible debt prior to conversion	—		—		583,925		583,925
Total-diluted	122,691,770		110,617,820		59,104,905		64,224,453
Net loss per share attributable to common stockholders:
Basic	$	(1.06)	$	(1.06)	$	(2.27)	$	(2.27)
Diluted	$	(1.06)	$	(1.06)	$	(2.48)	$	(2.48)

Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share


	As of March 31, 2021
	2020	2021
Redeemable convertible preferred stock	122,115,971	—
Stock options, including early exercise of options	43,224,565	33,342,527
Restricted stock units	5,916,547	13,975,457

Common stock warrants	706,065	350,000
Total	171,963,148	47,667,984

Segments and Geographical Information (Tables)

9 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of Revenue by Geographical Area

The following table sets forth revenue by geographic area (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
United States	$	137,198	$	224,863	$	354,394	$	603,048
Canada	1,075		5,802		1,802		5,636
Total	$	138,273	$	230,665	$	356,196	$	608,684

Long-lived Assets by Geographic Areas

The following table sets forth our long-lived assets, consisting of property, equipment and software, net and operating lease right-of-use assets, by geographic area (in thousands):


	June 30, 2020		March 31, 2021
United States	$	48,140	$	111,416
Canada	—		1,668
Total	$	48,140	$	113,084

Business Description (Details) - USD ($) $ / shares in Units, $ in Thousands		9 Months Ended
	Jan. 15, 2021	Mar. 31, 2021	Mar. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Proceeds from IPO		$ 1,305,301	$ 0
Class A common stock \| IPO
Financing Receivable, Allowance for Credit Loss [Line Items]
Issuance of common stock (in shares)	28,290,000
Common stock offering price (in USD per share)	$ 49.00
Proceeds from IPO	$ 1,300,000
Class A common stock \| Over-Allotment Option
Financing Receivable, Allowance for Credit Loss [Line Items]
Issuance of common stock (in shares)	3,690,000
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

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 15, 2021	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Sep. 30, 2020	Jul. 01, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Revenue		$ (111,808)	$ (73,280)	$ (321,481)	$ (188,144)
Period of suspended accrued interest past due				120 days
Non-accrued loans held for investment		500		$ 500					$ 300
Service period				4 years
Stock-based compensation expense	$ 65,100	139,747	7,970	$ 152,471	24,689
Right-of-use assets		59,640		59,640				$ 66,700	0
Operating lease liability		76,206		76,206				$ 71,200	0
Cumulative effect adjustment to beginning balance accumulated deficit		2,404,021	(415,036)	2,404,021	(415,036)	$ (343,309)	$ (346,764)		(367,096)	$ (337,156)	$ (284,983)	$ (263,414)
Allowance for credit losses		113,754	144,930	113,754	144,930	124,992			95,137	85,855		66,260
Merchant network revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Revenue		(97,999)	(67,350)	(290,894)	(171,503)
Merchant network revenue \| Revision of estimate of variable consideration
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Revenue		3,500
Accumulated Deficit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative effect adjustment to beginning balance accumulated deficit		(734,873)	$ (481,981)	$ (734,873)	$ (481,981)	$ (487,703)	$ (461,093)		(447,167)	$ (396,361)	$ (349,898)	$ (318,238)
Cumulative Effect, Period of Adoption, Adjustment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative effect adjustment to beginning balance accumulated deficit									(9,980)
Allowance for credit losses									10,083
Cumulative Effect, Period of Adoption, Adjustment \| Accumulated Deficit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative effect adjustment to beginning balance accumulated deficit									(9,980)
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-13
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allowance for credit losses									10,100
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-13 \| Accumulated Deficit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative effect adjustment to beginning balance accumulated deficit									(10,100)
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-02 \| Accumulated Deficit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative effect adjustment to beginning balance accumulated deficit									$ 100
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period				4 years
Vesting period				4 years
Stock-based compensation expense		$ 65,100
Stock options, including early exercise of options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				4 years

Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Interest Income (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Banking and Thrift, Interest [Abstract]
Interest income on unpaid principal balance	$ 65,921	$ 46,444	$ 162,666	$ 121,179
Amortization of discount on loans held for investment	31,625	9,175	68,843	24,904
Amortization of premiums on loans held for investment	(2,373)	(1,701)	(6,449)	(4,236)
Interest receivable charged-off, net of recoveries	(643)	(1,546)	(2,436)	(4,234)
Interest income	$ 94,530	$ 52,372	$ 222,624	$ 137,613

Loans Held for Investment and Allowance for Credit Losses - Loans Held for Investment (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Receivables [Abstract]
Unpaid principal balance	$ 2,262,613	$ 1,049,618
Accrued interest receivable	14,234	8,707
Premiums on loans held for investment	6,736	4,646
Less: Discount due to loan commitment liability	(81,883)	(28,659)
Less: Fair value adjustment on loans acquired through business combination	(6,306)	0
Loans held for investment	$ 2,195,394	$ 1,034,312

Loans Held for Investment and Allowance for Credit Losses - Additional Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans purchased	$ 2,031.2	$ 1,239.9	$ 5,620.8	$ 3,463.5
Threshold period for delinquent loans past due	4 days		4 days
Minimum
Financing Receivable, Allowance for Credit Loss [Line Items]
Loan lending terms			1 month
Proprietary credit quality score	0		0
Maximum
Financing Receivable, Allowance for Credit Loss [Line Items]
Loan lending terms			60 months
Proprietary credit quality score	100		100

Loans Held for Investment and Allowance for Credit Losses - Credit Quality by ITACs Score (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 1,977,896
2020	199,866
2019	15,264
2018	868
2017	39
Prior	1
Loans held for investment	2,193,934	$ 1,054,077
2021 Current period charge-offs	8,844
2020 Current period charge-offs	5,391
2019 Current period charge-offs	291
2018 Current period charge-offs	11
2017 Current period charge-offs	0
Prior current period charge-offs	0
Total current period charge-offs	14,537
2021 Current period recoveries	(394)
2020 Current period recoveries	(1,344)
2019 Current period recoveries	(1,369)
2018 Current period recoveries	(653)
2017 Current period recoveries	(479)
Prior current period recoveries	(53)
Total current period recoveries	(4,292)
2021 Current period net charge-offs	8,450
2020 Current period net charge-offs	4,047
2019 Current period net charge-offs	(1,078)
2018 Current period net charge-offs	(642)
2017 Current period net charge-offs	(479)
Prior current period net charge-offs	(53)
Total current period net charge-offs	10,245
96+
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,391,811
2020	158,238
2019	12,126
2018	370
2017	2
Prior	0
Loans held for investment	1,562,547
94 – 96
Financing Receivable, Credit Quality Indicator [Line Items]
2021	374,582
2020	16,517
2019	800
2018	34
2017	1
Prior	0
Loans held for investment	391,934
90 – 94
Financing Receivable, Credit Quality Indicator [Line Items]
2021	103,938
2020	5,855
2019	74
2018	1
2017	0
Prior	0
Loans held for investment	109,868
Less than 90
Financing Receivable, Credit Quality Indicator [Line Items]
2021	28,570
2020	872
2019	2
2018	0
2017	0
Prior	0
Loans held for investment	29,444
No score
Financing Receivable, Credit Quality Indicator [Line Items]
2021	78,995
2020	18,384
2019	2,262
2018	463
2017	36
Prior	1
Loans held for investment	$ 100,141

Loans Held for Investment and Allowance for Credit Losses - Unpaid Principal Balance for Loans Held for Investment (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Financing Receivable, Past Due [Line Items]
Non-delinquent loans	$ 2,138,804	$ 1,019,492
Loans held for investment	2,193,934	1,054,077
4 – 29 calendar days past due
Financing Receivable, Past Due [Line Items]
Delinquent loans	24,766	16,765
30 – 59 calendar days past due
Financing Receivable, Past Due [Line Items]
Delinquent loans	12,220	5,393
60 – 89 calendar days past due
Financing Receivable, Past Due [Line Items]
Delinquent loans	10,640	6,268
90 – 119 calendar days past due
Financing Receivable, Past Due [Line Items]
Delinquent loans	$ 7,504	$ 6,159

Loans Held for Investment and Allowance for Credit Losses - Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	$ 124,992	$ 85,855	$ 95,137	$ 66,260
Provision for credit losses	(993)	78,962	39,190	133,800
Charge-offs	(14,537)	(22,017)	(40,377)	(59,810)
Recoveries of charged-off receivables	4,292	2,130	9,721	4,680
Ending balance	113,754	144,930	113,754	144,930
Provision for repurchase of merchant loss	(100)	3,100	900	3,100
Provision for repurchase of fraudulent loans	$ 100	$ 200	400	$ 300
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance			$ 10,083

Business Combination - Additional Information (Details) - PayBright - USD ($) $ in Thousands			3 Months Ended	9 Months Ended
	Jan. 12, 2021	Jan. 01, 2021	Mar. 31, 2021	Mar. 31, 2021
Business Acquisition [Line Items]
Purchase price		$ 288,754
Cash		$ 114,490
Common stock issued (in shares)		3,622,445
Common stock issued in escrow, subject to forfeiture (in shares)		2,587,362
Transaction costs			$ 400	$ 2,400
Class A common stock
Business Acquisition [Line Items]
Common stock issued (in shares)	1,811,222
Common stock issued in escrow, subject to forfeiture (in shares)	1,293,681
Class B common stock
Business Acquisition [Line Items]
Common stock issued (in shares)	1,811,222
Common stock issued in escrow, subject to forfeiture (in shares)	1,293,681

Business Combination - Fair Value of Consideration Transferred (Details) - PayBright $ in Thousands	Jan. 01, 2021 USD ($)
Business Acquisition [Line Items]
Cash	$ 114,490
Fair value of common stock transferred	116,989
Fair value of contingent consideration	57,275
Total purchase price	$ 288,754

Business Combination - Allocation of Consideration Paid to Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jan. 01, 2021	Jun. 30, 2020
Business Acquisition [Line Items]
Goodwill	$ 261,048		$ 1,255
PayBright
Business Acquisition [Line Items]
Cash and cash equivalents		$ 8,219
Restricted cash		1,469
Loans held for investment		89,570
Accounts receivable		1,537
Property, equipment and software		586
Intangible assets		16,653
Other assets		5,651
Total assets acquired		123,685
Accounts payable		6,579
Accrued interest payable		23
Accrued expenses and other liabilities		193
Funding debt		85,310
Total liabilities assumed		92,105
Net assets acquired		31,580
Goodwill		257,174
Total purchase price		$ 288,754

Business Combination - Identifiable Intangible Assets Acquired (Details) - PayBright $ in Thousands	Jan. 01, 2021 USD ($)
Business Acquisition [Line Items]
Fair Value	$ 16,653
Developed technology
Business Acquisition [Line Items]
Fair Value	$ 6,127
Useful Life (Years)	3 years
Merchant relationships
Business Acquisition [Line Items]
Fair Value	$ 9,505
Useful Life (Years)	4 years
Trade name
Business Acquisition [Line Items]
Fair Value	$ 1,021
Useful Life (Years)	5 years

Business Combination - Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Business Combinations [Abstract]
Revenue	$ 230,665	$ 142,385	$ 625,157	$ 366,233
Net loss	$ (246,747)	$ (91,307)	$ (294,297)	$ (160,506)

Balance Sheet Components - Goodwill and Intangible Assets (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2021 USD ($)
Offsetting [Abstract]
Beginning balance	$ 1,255
Additions	257,174
Effect of foreign currency translation	2,619
Ending balance	$ 261,048

Balance Sheet Components - Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ (1,958)	$ (790)
Total amortization expense	15,655
Total intangible assets, gross	20,108	3,286
Total intangible assets, net	18,150	2,496
Trademarks and domains
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangibles		2,146
Other intangibles
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangibles	350	350
Merchant relationships
Finite-Lived Intangible Assets [Line Items]
Gross	9,601
Accumulated Amortization	(600)
Total amortization expense	$ 9,001
Weighted Average Remaining Useful Life (in years)	3 years 9 months 18 days
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross	$ 6,979	790
Accumulated Amortization	(1,306)	(790)
Total amortization expense	$ 5,673	$ 0
Weighted Average Remaining Useful Life (in years)	2 years 9 months 18 days
Trademarks and domains
Finite-Lived Intangible Assets [Line Items]
Gross	$ 3,178
Accumulated Amortization	(52)
Total amortization expense	$ 3,126
Weighted Average Remaining Useful Life (in years)	4 years 9 months 18 days

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 1,200	$ 0	$ 1,200	$ 0
Amortization of commercial agreement assets			50,097	$ 0
Contingent consideration	136,357		136,357		$ 0
Commercial agreement liability	25,140		$ 25,140		$ 0
Commercial agreement liability, percentage settled after 180 days			50.00%
Commercial agreement liability, percentage settled on first year anniversary			50.00%
Liability accretion, recorded expense			$ 200
Commercial Agreement Asset, Shopify Inc, Warrants
Finite-Lived Intangible Assets [Line Items]
Commercial agreement asset, gross	270,600		270,600
Amortization of commercial agreement assets	16,700		$ 48,000
Asset amortization period			4 years
Commercial Agreement Asset, Enterprise Partner, Stock Appreciation Rights
Finite-Lived Intangible Assets [Line Items]
Commercial agreement asset, gross	25,900		$ 25,900
Amortization of commercial agreement assets	$ 2,100
Asset amortization period			3 years

Balance Sheet Components - Expected Future Amortization Expense (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Balance Sheet Related Disclosures [Abstract]
2021 (remaining three months)	$ 1,167
2022	4,670
2023	4,670
2024	3,638
2025	1,407
2026 and thereafter	103
Total amortization expense	$ 15,655

Balance Sheet Components - Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jul. 01, 2020	Jun. 30, 2020
Balance Sheet Related Disclosures [Abstract]
Operating lease right-of-use assets	$ 59,640	$ 66,700	$ 0
Prepaid payroll taxes for stock-based compensation	90,945		0
Prepaid expenses	20,725		6,406
Processing reserves	14,247		924
Other receivables	17,473		3,169
Other assets	16,838		9,098
Total other assets	$ 219,868		$ 19,597

Balance Sheet Components - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jul. 01, 2020	Jun. 30, 2020
Offsetting [Abstract]
Contingent consideration	$ 136,357		$ 0
Operating lease liability	76,206	$ 71,200	0
Deferred lease liability	0		4,492
Accrued expenses	35,974		16,088
Commercial agreement liability	25,140		0
Other liabilities	17,751		7,230
Total accrued expenses and other liabilities	$ 291,428		$ 27,810

Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jul. 01, 2020	Jun. 30, 2020
Lessee, Lease, Description [Line Items]
Restricted cash	$ 183,330		$ 183,330			$ 61,069
Weighted average remaining lease term	6 years 1 month 6 days		6 years 1 month 6 days
Right-of-use assets	$ 59,640		$ 59,640		$ 66,700	0
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssets		us-gaap:OtherAssets
Present value of lease liabilities	$ 76,206		$ 76,206		$ 71,200	0
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesAndOtherLiabilities		us-gaap:AccruedLiabilitiesAndOtherLiabilities
Impairment of right of use assets	$ 11,100		$ 11,141	$ 0
Rent expense incurred		$ 3,500		$ 9,900
Rent expense incurred	4,100		12,000
Short-term lease expense	$ 200		$ 1,100
Minimum
Lessee, Lease, Description [Line Items]
Lessee renewal term	1 month		1 month
Lease termination notice period			180 days
Remaining lease term	1 year		1 year
Maximum
Lessee, Lease, Description [Line Items]
Lessee renewal term	10 years		10 years
Lease termination notice period			1 year
Remaining lease term	10 years		10 years
Cash collateral and deposits for letters of credit
Lessee, Lease, Description [Line Items]
Restricted cash	$ 9,900		$ 9,900			$ 9,700

Leases - Schedule of Lease Term and Discount Rate (Details)	Mar. 31, 2021
Leases [Abstract]
Weighted average remaining lease term (in years)	6 years 1 month 6 days
Weighted average discount rate	5.60%

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jul. 01, 2020	Jun. 30, 2020
Leases [Abstract]
2021 (remaining three months)	$ 3,408
2022	14,812
2023	15,285
2024	15,520
2025	15,766
2026 and thereafter	25,986
Total lease payments	90,777
Less imputed interest	(14,571)
Present value of lease liabilities	$ 76,206	$ 71,200	$ 0

Commitment and Contingencies - Additional Information (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Customer Concentration Risk \| Revenue \| Largest merchant partner
Other Commitments [Line Items]
Revenue concentration percent	20.00%	28.00%	31.00%	25.00%
CALIFORNIA \| Geographic Concentration Risk \| Loan receivable
Other Commitments [Line Items]
Revenue concentration percent			15.00%		15.00%

Funding Debt - Aggregate Future Maturities of Funding Debt 2020 (Details) - Revolving facilities - USD ($)	Mar. 31, 2021	Jun. 30, 2020
Line of Credit Facility [Line Items]
Borrowings outstanding	$ 0
Funding debt
Line of Credit Facility [Line Items]
2021	118,678,000	$ 0
2022	295,956,000	171,133,000
2023	155,765,000	653,447,000
2024	0	0
2025		0
Thereafter		0
Borrowings outstanding	769,250,000	824,580,000
Deferred debt issuance costs	(8,855,000)	(6,654,000)
Total funding debt, net of deferred debt issuance costs	$ 760,395,000	$ 817,926,000

Funding Debt - Aggregate Future Maturities of Funding Debt 2021 (Details) - Revolving facilities - USD ($)	Mar. 31, 2021	Jun. 30, 2020
Line of Credit Facility [Line Items]
Borrowings outstanding	$ 0
Funding debt
Line of Credit Facility [Line Items]
2021	81,064,000
2022	118,678,000	$ 0
2023	295,956,000	171,133,000
2024	155,765,000	653,447,000
2025	0	0
Thereafter	117,787,000
Borrowings outstanding	769,250,000	824,580,000
Deferred debt issuance costs	(8,855,000)	(6,654,000)
Total funding debt, net of deferred debt issuance costs	$ 760,395,000	$ 817,926,000

Funding Debt - Additional Information (Details) - USD ($)		9 Months Ended
	Jan. 19, 2021	Mar. 31, 2021	Jun. 30, 2020
Funding debt \| Warehouse Credit Facilities
Line of Credit Facility [Line Items]
Unpaid principal balance of loans pledged as collateral		$ 801,300,000	$ 990,700,000
Funding debt \| PayBright Funding Facilities
Line of Credit Facility [Line Items]
Unpaid principal balance of loans pledged as collateral		55,000,000.0
Revolving facilities
Line of Credit Facility [Line Items]
Aggregate commitment amount of credit facility	$ 185,000,000.0
Funding debt		0
Unused commitment fee percentage	0.35%
Revolving facilities \| LIBOR
Line of Credit Facility [Line Items]
Basis spread	2.50%
Revolving facilities \| Funding debt
Line of Credit Facility [Line Items]
Funding debt		$ 769,250,000	$ 824,580,000
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		$ 1,875,000,000.0
Funding debt		688,200,000
Remaining amount available of credit facility		1,186,800,000
Revolving facilities \| Funding debt \| PayBright Funding Facilities
Line of Credit Facility [Line Items]
Aggregate commitment amount of credit facility		174,600,000
Funding debt		81,100,000
Remaining amount available of credit facility		$ 93,500,000
Minimum \| Revolving facilities \| Warehouse Credit Facilities
Line of Credit Facility [Line Items]
Unused commitment fee percentage		0.20%
Minimum \| Revolving facilities \| Funding debt \| Warehouse Credit Facilities
Line of Credit Facility [Line Items]
Advance rate percentage		80.00%
Minimum \| Revolving facilities \| Funding debt \| LIBOR \| Warehouse Credit Facilities
Line of Credit Facility [Line Items]
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		88.00%
Maximum \| Revolving facilities \| Funding debt \| LIBOR \| Warehouse Credit Facilities
Line of Credit Facility [Line Items]
Basis spread		5.50%
Maximum \| Revolving facilities \| Funding debt \| Commercial paper rate \| PayBright Funding Facilities
Line of Credit Facility [Line Items]
Basis spread		4.25%

Notes Issued by Securitization Trusts (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2021 USD ($) securitized_trust class
Debt Instrument [Line Items]
Number of securitization trusts \| securitized_trust	4
Securitized loans outstanding	$ 1,505,800
2020-Z1
Debt Instrument [Line Items]
Percentage of residual certificates retained	100.00%
2020-Z1 \| Secured debt
Debt Instrument [Line Items]
Securitization issued	$ 150,000
Fixed interest rate	0.0346%
Debt issuance costs	$ 1,000
Total funding debt, net of deferred debt issuance costs	91,500
Loans pledged as collateral at amortized cost	$ 95,200
Number of classes of securitization trusts \| class	1
2020-A
Debt Instrument [Line Items]
Percentage of residual certificates retained	100.00%
2020-A \| Secured debt
Debt Instrument [Line Items]
Debt issuance costs	$ 3,000
Total funding debt, net of deferred debt issuance costs	368,200
Loans pledged as collateral at amortized cost	$ 397,400
Number of classes of securitization trusts \| class	3
2020-A Notes, Class A \| Secured debt
Debt Instrument [Line Items]
Securitization issued	$ 330,000
Fixed interest rate	210.00%
2020-A Notes, Class B \| Secured debt
Debt Instrument [Line Items]
Securitization issued	$ 16,200
Fixed interest rate	354.00%
2020-A Notes, Class C \| Secured debt
Debt Instrument [Line Items]
Securitization issued	$ 22,100
Fixed interest rate	623.00%
2020-Z2
Debt Instrument [Line Items]
Securitized loans outstanding	$ 27,900
Percentage of residual certificates retained	93.30%
2020-Z2 \| Secured debt
Debt Instrument [Line Items]
Securitization issued	$ 375,000
Fixed interest rate	0.019%
Debt issuance costs	$ 1,600
Total funding debt, net of deferred debt issuance costs	290,600
Loans pledged as collateral at amortized cost	$ 301,200
Number of classes of securitization trusts \| class	1
2021-A
Debt Instrument [Line Items]
Percentage of residual certificates retained	100.00%
2021-A \| Secured debt
Debt Instrument [Line Items]
Debt issuance costs	$ 3,500
Total funding debt, net of deferred debt issuance costs	499,900
Loans pledged as collateral at amortized cost	$ 499,900
Number of classes of securitization trusts \| class	5
2021-A Notes, Class A \| Secured debt
Debt Instrument [Line Items]
Securitization issued	$ 407,200
Fixed interest rate	88.00%
2021-A Notes, Class B \| Secured debt
Debt Instrument [Line Items]
Securitization issued	$ 30,300
Fixed interest rate	106.00%
2021-A Notes, Class C \| Secured debt
Debt Instrument [Line Items]
Securitization issued	$ 21,000
Fixed interest rate	166.00%
2021-A Notes, Class D \| Secured debt
Debt Instrument [Line Items]
Securitization issued	$ 22,500
Fixed interest rate	349.00%
2021-A Notes, Class E \| Secured debt
Debt Instrument [Line Items]
Securitization issued	$ 19,000
Fixed interest rate	565.00%
Third party loan buyer
Debt Instrument [Line Items]
Percentage of residual certificates retained	6.60%
Third party loan buyer \| 2020-Z2
Debt Instrument [Line Items]
Percentage of residual certificates retained	6.70%

Debt (Details) - USD ($)			1 Months Ended		2 Months Ended	3 Months Ended
Debt (Details) - USD ($)	Jan. 19, 2021	Sep. 11, 2020	Sep. 30, 2020	Apr. 30, 2020	Oct. 31, 2020	Sep. 30, 2020	Mar. 31, 2021
Temporary Equity [Line Items]
Conversion threshold for proceeds from issuance of redeemable convertible preferred stock			$ 50,000,000.0
Equity component of total proceeds			42,100,000			$ 42,100,000
Conversion of convertible debt			42,100,000			42,124,000
Revolving facilities
Temporary Equity [Line Items]
Aggregate commitment amount of credit facility	$ 185,000,000.0
Unused commitment fee percentage	0.35%
Borrowings outstanding							$ 0
Revolving facilities \| Fed Funds Effective Rate Overnight Index Swap Rate
Temporary Equity [Line Items]
Basis spread	0.50%
Revolving facilities \| One Month London Interbank Offered Rate (LIBOR)
Temporary Equity [Line Items]
Basis spread	1.00%
Revolving facilities \| Base Rate
Temporary Equity [Line Items]
Basis spread	1.50%
Revolving facilities \| LIBOR
Temporary Equity [Line Items]
Basis spread	2.50%
Convertible Debt
Temporary Equity [Line Items]
Convertible debt				$ 75,000,000.0
Fixed interest rate				1.00%
Conversion threshold for proceeds from issuance of redeemable convertible preferred stock				$ 50,000,000.0
Threshold for proceeds from conversion				$ 50,000,000.0
Amount of debt conversion			75,500,000
Liability component of total proceeds			46,500,000			$ 46,500,000
Gain on debt extinguishment			$ 30,100,000
Series G-1 Preferred Stock
Temporary Equity [Line Items]
Conversion of convertible debt (in shares)		4,444,321	4,444,321
Conversion price of redeemable convertible preferred stock (in USD per share)			$ 16.9374			$ 16.9374
Series G Preferred Stock
Temporary Equity [Line Items]
Conversion of convertible debt			$ 88,600,000
Redeemable convertible preferred stock per share (in USD per shares)			$ 19.9263		$ 19.93

Fair Value of Financial Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets	$ 2,100		$ 2,100
Servicing liabilities	2,248	$ 2,826	1,540	$ 1,872	$ 2,532	$ 1,130
Contingent consideration	136,357		0
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets	2,120		2,132
Constant maturity swaps	3,178
Total assets	5,298		2,132
Constant maturity swaps			3,297
Servicing liabilities	2,248		1,540
Performance fee liability	1,242		875
Convertible debt derivative			6,607
Residual trust certificates	1,118
Contingent consideration	136,357
Profit share liability	2,185
Total liabilities	143,150		12,319
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	1,807,002		328,128
Total liabilities	0		0
Level 1 \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets	0		0
Constant maturity swaps	0
Total assets	0		0
Constant maturity swaps			0
Servicing liabilities	0		0
Performance fee liability	0		0
Convertible debt derivative			0
Residual trust certificates	0
Contingent consideration	0
Profit share liability	0
Total liabilities	0		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	220,731		71,444
Total liabilities	217,697		70,614
Level 2 \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets	0		0
Constant maturity swaps	3,178
Total assets	3,178		0
Constant maturity swaps			3,297
Servicing liabilities	0		0
Performance fee liability	0		0
Convertible debt derivative			0
Residual trust certificates	0
Contingent consideration	0
Profit share liability	0
Total liabilities	0		3,297
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	2,063,882		922,919
Total liabilities	2,019,535		873,525
Level 3 \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets	2,120		2,132
Constant maturity swaps	0
Total assets	2,120		2,132
Constant maturity swaps			0
Servicing liabilities	2,248		1,540
Performance fee liability	1,242		875
Convertible debt derivative			6,607
Residual trust certificates	1,118
Contingent consideration	136,357
Profit share liability	2,185
Total liabilities	$ 143,150		$ 9,022

Fair Value of Financial Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 11, 2020	Sep. 30, 2020	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unpaid balance on loans sold with retained servicing rights			$ 756,700	$ 630,300	$ 2,013,200	$ 2,087,700
Unpaid principal balance on serviced sold loans			1,752,700		1,752,700		$ 1,365,600
Servicing income			7,977	$ 2,755	17,235	$ 10,110
Servicing assets			2,100		2,100		2,100
Servicing liabilities			$ 2,200		$ 2,200		$ 1,500
Third party loan buyer
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of residual certificates retained			6.60%		6.60%
Series G-1 Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Conversion of redeemable convertible preferred stock (in shares)	4,444,321	4,444,321

Fair Value of Financial Assets and Liabilities - Fair Value of Servicing Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Servicing Asset at Fair Value, Amount [Roll Forward]
Fair value at beginning of period	$ 1,923	$ 1,207	$ 2,132	$ 1,680
Initial transfers of financial assets	202	895	1,732	915
Subsequent changes in fair value	(5)	(161)	(1,744)	(654)
Fair value at end of period	$ 2,120	$ 1,941	$ 2,120	$ 1,941

Fair Value of Financial Assets and Liabilities - Fair Value of Servicing Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Servicing Liability at Fair Value, Amount [Roll Forward]
Fair value at beginning of period	$ 2,826	$ 2,532	$ 1,540	$ 1,130
Initial transfers of financial assets	1,972	1,110	5,185	2,102
Subsequent changes in fair value	(2,550)	(1,770)	(4,477)	(1,360)
Fair value at end of period	$ 2,248	$ 1,872	$ 2,248	$ 1,872

Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Servicing Assets and Liabilities (Details)	Mar. 31, 2021	Jun. 30, 2020
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	0.0070	0.0073
Servicing liability, measurement input	0.0116	0.0200
Adequate compensation \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing asset, measurement input	0.0164	0.0089
Servicing liability, measurement input	0.0361	0.0318
Adequate compensation \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing asset, measurement input	0.0091	0.0076
Servicing liability, measurement input	0.0266	0.0255
Net default rate \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing asset, measurement input	0.0051	0.0081
Servicing liability, measurement input	0.0064	0.0645
Net default rate \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing asset, measurement input	0.0297	0.0082
Servicing liability, measurement input	0.0679	0.1099
Net default rate \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing asset, measurement input	0.0097	0.0082
Servicing liability, measurement input	0.0590	0.0916

Fair Value of Financial Assets and Liabilities - Summary of Adverse Changes in Estimates for Servicing Assets and Liabilities Inputs (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Net default rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing asset, effect of 25% increase in measurement input	$ (5)	$ (9)
Servicing asset, effect of 50% increase in measurement input	(9)	(21)
Servicing liability, effect of 25% increase in measurement input	(9)	(8)
Servicing liability, effect of 50% increase in measurement input	(18)	(12)
Adequate compensation
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing asset, effect of 25% increase in measurement input	(1,775)	(1,338)
Servicing asset, effect of 50% increase in measurement input	(3,550)	(2,675)
Servicing liability, effect of 25% increase in measurement input	1,724	1,438
Servicing liability, effect of 50% increase in measurement input	3,448	2,875
Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing asset, effect of 25% increase in measurement input	(16)	(27)
Servicing asset, effect of 50% increase in measurement input	(37)	(56)
Servicing liability, effect of 25% increase in measurement input	(83)	(48)
Servicing liability, effect of 50% increase in measurement input	$ (159)	$ (91)

Fair Value of Financial Assets and Liabilities - Fair Value of Performance Fee Liability (Details) - Performance Fee Liability - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 1,205	$ 211	$ 875	$ 488
Purchases of loans	349	278	1,070	779
Subsequent changes in fair value	(312)	(278)	(703)	(1,056)
Fair value at end of period	$ 1,242	$ 211	$ 1,242	$ 211

Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Performance Fee Liability (Details)	Mar. 31, 2021	Jun. 30, 2020
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	0.0189	0.0217
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	0.0465	0.0371
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	0.0244	0.0272

Fair Value of Financial Assets and Liabilities - Fair Value of Residual Trust Certificates (Details) - Residual Trust Certificates - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 1,348	$ 0
Initial transfer of financial assets	0	1,622
Repayments	(154)	(154)
Subsequent changes in fair value	(76)	(350)
Fair value at end of period	$ 1,118	$ 1,118

Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Residual Trust Certificates (Details) - Residual Trust Certificates	Mar. 31, 2021
Minimum \| Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residual trust certificates, measurement input	0.1000
Minimum \| Loss rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residual trust certificates, measurement input	0.0075
Minimum \| Prepayment rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residual trust certificates, measurement input	0.0800
Maximum \| Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residual trust certificates, measurement input	0.1000
Maximum \| Loss rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residual trust certificates, measurement input	0.0075
Maximum \| Prepayment rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residual trust certificates, measurement input	0.0800
Weighted Average \| Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residual trust certificates, measurement input	0.1000
Weighted Average \| Loss rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residual trust certificates, measurement input	0.0075
Weighted Average \| Prepayment rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residual trust certificates, measurement input	0.0800

Fair Value of Financial Assets and Liabilities - Fair Value of Contingent Consideration (Details) - Contingent Consideration - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 0	$ 0
Acquisition date fair value	57,275	57,275
Subsequent changes in fair value	78,499	78,499
Effect of foreign currency translation	583	583
Fair value at end of period	$ 136,357	$ 136,357

Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Contingent Consideration (Details) - Contingent Consideration	Mar. 31, 2021
Minimum \| Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.1200
Minimum \| Equity volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.4800
Minimum \| Revenue volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.2100
Maximum \| Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.1200
Maximum \| Equity volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.7800
Maximum \| Revenue volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.4700
Weighted Average \| Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.1200
Weighted Average \| Equity volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.6400
Weighted Average \| Revenue volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.4400

Fair Value of Financial Assets and Liabilities - Fair Value of Profit Share Liability (Details) - Commercial Agreement, Profit Share Liability - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 0	$ 0
Facilitation of loans	2,185	2,185
Fair value at end of period	$ 2,185	$ 2,185

Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Profit Share Liability (Details) - Commercial Agreement, Profit Share Liability	Mar. 31, 2021
Minimum \| Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Commercial agreement, profit share liability, measurement input	0.3000
Minimum \| Program profitability
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Commercial agreement, profit share liability, measurement input	0.0179
Maximum \| Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Commercial agreement, profit share liability, measurement input	0.3000
Maximum \| Program profitability
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Commercial agreement, profit share liability, measurement input	0.0375
Weighted Average \| Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Commercial agreement, profit share liability, measurement input	0.3000
Weighted Average \| Program profitability
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Commercial agreement, profit share liability, measurement input	0.0375

Fair Value of Financial Assets and Liabilities - Financial Assets and Liabilities Not Recorded at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Level 1
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Cash and cash equivalents	$ 1,623,672	$ 267,059
Restricted cash	183,330	61,069
Loans held for sale	0	0
Loans held for investment, net	0	0
Accounts receivable, net	0	0
Other assets	0	0
Total assets	1,807,002	328,128
Accounts payable	0	0
Payable to third-party loan owners	0	0
Accrued interest payable	0	0
Accrued expenses and other liabilities	0	0
Convertible debt		0
Notes issued by securitization trusts	0
Funding debt	0	0
Total liabilities	0	0
Level 2
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Cash and cash equivalents	0	0
Restricted cash	0	0
Loans held for sale	12,774	4,459
Loans held for investment, net	0	0
Accounts receivable, net	66,080	59,001
Other assets	141,877	7,984
Total assets	220,731	71,444
Accounts payable	29,005	18,361
Payable to third-party loan owners	36,523	24,998
Accrued interest payable	3,891	1,860
Accrued expenses and other liabilities	148,278	25,395
Convertible debt		0
Notes issued by securitization trusts	0
Funding debt	0	0
Total liabilities	217,697	70,614
Level 3
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Cash and cash equivalents	0	0
Restricted cash	0	0
Loans held for sale	0	0
Loans held for investment, net	2,063,882	922,919
Accounts receivable, net	0	0
Other assets	0	0
Total assets	2,063,882	922,919
Accounts payable	0	0
Payable to third-party loan owners	0	0
Accrued interest payable	0	0
Accrued expenses and other liabilities	0	0
Convertible debt		67,615
Notes issued by securitization trusts	1,250,285
Funding debt	769,250	805,910
Total liabilities	2,019,535	873,525
Carrying Amount
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Cash and cash equivalents	1,623,672	267,059
Restricted cash	183,330	61,069
Loans held for sale	12,774	4,459
Loans held for investment, net	2,081,640	939,175
Accounts receivable, net	66,080	59,001
Other assets	141,877	7,984
Total assets	4,109,373	1,338,747
Accounts payable	29,005	18,361
Payable to third-party loan owners	36,523	24,998
Accrued interest payable	3,891	1,860
Accrued expenses and other liabilities	148,278	25,395
Convertible debt		67,615
Notes issued by securitization trusts	1,241,126
Funding debt	769,250	817,926
Total liabilities	2,228,073	956,155
Balance at Fair Value
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Cash and cash equivalents	1,623,672	267,059
Restricted cash	183,330	61,069
Loans held for sale	12,774	4,459
Loans held for investment, net	2,063,882	922,919
Accounts receivable, net	66,080	59,001
Other assets	141,877	7,984
Total assets	4,091,615	1,322,491
Accounts payable	29,005	18,361
Payable to third-party loan owners	36,523	24,998
Accrued interest payable	3,891	1,860
Accrued expenses and other liabilities	148,278	25,395
Convertible debt		67,615
Notes issued by securitization trusts	1,250,285
Funding debt	769,250	805,910
Total liabilities	$ 2,237,232	$ 944,139

Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Additional Information (Details) $ / shares in Units, $ in Thousands		1 Months Ended	2 Months Ended	3 Months Ended
	Sep. 11, 2020 shares	Sep. 30, 2020 USD ($) $ / shares shares	Oct. 31, 2020 USD ($) $ / shares shares	Mar. 31, 2021 USD ($) yr $ / shares shares	Dec. 31, 2020 USD ($) shares	Sep. 30, 2020 USD ($) shares	Sep. 30, 2019 USD ($) shares	Jun. 30, 2020 USD ($) shares	Mar. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($) shares	Jun. 30, 2019 USD ($) shares
Temporary Equity [Line Items]
Carrying Value				$ 0				$ 804,170
Redeemable convertible preferred stock, issued (in shares) \| shares				0				122,115,971
Redeemable convertible preferred stock, outstanding (in shares) \| shares				0				122,115,971
Redeemable convertible preferred stock, liquidation preference				$ 0				$ 809,032
Shares purchased by warrants (in shares) \| shares				20,297,595
Exercise price of warrants (in USD per share) \| $ / shares				$ 0.01
Maturity term for warrants				10 years
Commercial Agreement Asset, Shopify Inc, Warrants
Temporary Equity [Line Items]
Commercial agreement asset, gross				$ 270,600
Dividend yield
Temporary Equity [Line Items]
Warrants, measurement input				0
Maturity
Temporary Equity [Line Items]
Warrants, measurement input \| yr				10
Volatility
Temporary Equity [Line Items]
Warrants, measurement input				0.52
Risk-free rate
Temporary Equity [Line Items]
Warrants, measurement input				0.0062
Redeemable convertible preferred stock
Temporary Equity [Line Items]
Carrying Value		$ 1,327,163		$ 0	$ 1,327,271	$ 1,327,163	$ 813,555	$ 804,170	$ 804,170	$ 804,170	$ 798,074
Redeemable convertible preferred stock, outstanding (in shares) \| shares		148,384,433		0	148,396,979	148,384,433	123,829,576	122,115,971	122,115,971	122,115,971	122,653,704
Redeemable convertible preferred stock, aggregate purchase amount					$ 108	$ 434,434	$ 15,481
Conversion of redeemable convertible preferred stock (in shares) \| shares				(148,396,979)		4,444,321
Series G Preferred Stock
Temporary Equity [Line Items]
Redeemable convertible preferred stock issued (in shares) \| shares			21,836,687
Redeemable convertible preferred stock per share (in USD per shares) \| $ / shares		$ 19.9263	$ 19.93
Redeemable convertible preferred stock, aggregate purchase amount			$ 434,900
Redeemable convertible preferred stock, liquidation preference			435,100
Series G-1 Preferred Stock
Temporary Equity [Line Items]
Redeemable convertible preferred stock, liquidation preference			$ 75,300
Conversion of redeemable convertible preferred stock (in shares) \| shares	4,444,321	4,444,321

Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Schedule of Redeemable Convertible Preferred Stock (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Temporary Equity [Line Items]
Shares, Authorized (in shares)	30,000,000	124,453,009
Shares, Issued (in shares)	0	122,115,971
Shares, Outstanding (in shares)	0	122,115,971
Carrying Value	$ 0	$ 804,170
Liquidation Preference	$ 0	$ 809,032
Series A Preferred Stock
Temporary Equity [Line Items]
Shares, Authorized (in shares)		21,428,572
Shares, Issued (in shares)		21,428,572
Shares, Outstanding (in shares)		21,428,572
Carrying Value		$ 21,598
Liquidation Preference		$ 21,616
Series B Preferred Stock
Temporary Equity [Line Items]
Shares, Authorized (in shares)		19,788,417
Shares, Issued (in shares)		19,788,417
Shares, Outstanding (in shares)		19,788,417
Carrying Value		$ 25,941
Liquidation Preference		$ 26,000
Series C Preferred Stock
Temporary Equity [Line Items]
Shares, Authorized (in shares)		15,129,141
Shares, Issued (in shares)		13,802,530
Shares, Outstanding (in shares)		13,802,530
Carrying Value		$ 72,661
Liquidation Preference		$ 72,905
Series D Preferred Stock
Temporary Equity [Line Items]
Shares, Authorized (in shares)		22,705,526
Shares, Issued (in shares)		22,318,532
Shares, Outstanding (in shares)		22,318,532
Carrying Value		$ 137,471
Liquidation Preference		$ 137,614
Series E Preferred Stock
Temporary Equity [Line Items]
Shares, Authorized (in shares)		21,391,882
Shares, Issued (in shares)		21,391,882
Shares, Outstanding (in shares)		21,391,882
Carrying Value		$ 242,435
Liquidation Preference		$ 242,597
Series F Preferred Stock
Temporary Equity [Line Items]
Shares, Authorized (in shares)		24,009,471
Shares, Issued (in shares)		23,386,038
Shares, Outstanding (in shares)		23,386,038
Carrying Value		$ 304,064
Liquidation Preference		$ 308,300

Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Common Stock Reserved for Issuance (Details) - shares	Mar. 31, 2021	Jun. 30, 2020
Class of Stock [Line Items]
Total common stock reserved for future issuance (in shares)	89,973,175	178,498,224
Available outstanding under stock option plan
Class of Stock [Line Items]
Total common stock reserved for future issuance (in shares)	59,814,412	50,771,657
Future stock options grant
Class of Stock [Line Items]
Total common stock reserved for future issuance (in shares)	30,158,763	4,904,531
Conversion of redeemable convertible preferred stock
Class of Stock [Line Items]
Total common stock reserved for future issuance (in shares)	0	122,115,971
Exercise of warrants
Class of Stock [Line Items]
Total common stock reserved for future issuance (in shares)	0	706,065

Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Warrant Activity (Details) - $ / shares	9 Months Ended	12 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Number of Shares
Number of Shares, Beginning Balance, Warrants outstanding (in shares)	706,065
Number of Shares, Granted (in shares)	20,297,595
Number of Shares, Exercised (in shares)	(20,651,583)
Number of Shares, Cancelled (in shares)	(352,077)
Number of Shares, Ending Balance, Warrants outstanding (in shares)	0	706,065
Weighted Average Exercise Price ($)
Weighted Average Exercise Price, Beginning Balance, Warrants outstanding (in USD per share)	$ 2.50
Weighted Average Exercise Price, Granted (in USD per share)	0.01
Weighted Average Exercise Price, Exercised (in USD per share)	0.04
Weighted Average Exercise Price, Cancelled (in USD per share)	3.80
Weighted Average Exercise Price, Ending Balance, Warrants outstanding (in USD per share)	$ 0	$ 2.50
Weighted Average Remaining Life (years)
Weighted Average Remaining Life, Warrants outstanding	0 years	7 years 2 months 15 days
Weighted Average Remaining Life, Granted	10 years
Weighted Average Remaining Life, Exercised	9 years 2 months 4 days
Weighted Average Remaining Life, Cancelled	8 years 6 months 7 days

Equity and Cash Incentive Plans - Additional Information (Details) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 15, 2021 USD ($) $ / shares shares	Mar. 31, 2021 USD ($) shares	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($) tranche $ / shares shares	Mar. 31, 2020 USD ($)	Jan. 14, 2021 segment	Jun. 30, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of common stock available for issuance (in shares)		89,973,175		89,973,175			178,498,224
Number of common stock available for issuance (in shares)		30,158,763		30,158,763			4,904,531
Right to purchase shares (in shares)				16,009,746
Exercise price (in USD per share) \| $ / shares				$ 49.10
Stock-based compensation expense \| $	$ 65,100	$ 139,747	$ 7,970	$ 152,471	$ 24,689
Shares withheld for tax withholding requirements (in shares)	1,000,000.0
Issuance of common stock (in shares)	2,600,000
Common stock share price (in USD per share) \| $ / shares	$ 97.24
Tax witholding obligation \| $	$ 102,500	127,566
Cash incentive plan expense \| $		900		900
Cash incentive plan liability \| $		900		$ 900
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				4 years
Stock-based compensation expense \| $		65,100
RSUs awarded (in shares)				10,185,952
Number of vesting conditions \| segment						2
Performance Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Right to purchase shares (in shares)				12,500,000
Number of tranches \| tranche				10
Vesting period				5 years
Average trading day				90 days
Exercise price (in USD per share) \| $ / shares				$ 49.00
Stock-based compensation expense \| $		$ 38,500		$ 38,500
Performance Based Stock Options \| Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Right to purchase shares (in shares)				1,000,000
RSU vesting rights percentage				15.00%
Performance Based Stock Options \| Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Right to purchase shares (in shares)				1,000,000
RSU vesting rights percentage				15.00%
Performance Based Stock Options \| Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Right to purchase shares (in shares)				1,000,000
RSU vesting rights percentage				20.00%
Performance Based Stock Options \| Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Right to purchase shares (in shares)				1,000,000
RSU vesting rights percentage				25.00%
Performance Based Stock Options \| Tranche Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Right to purchase shares (in shares)				1,000,000
RSU vesting rights percentage				25.00%
2012 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of common stock available for issuance (in shares)		118,374,202		118,374,202

Equity and Cash Incentive Plans - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2021 USD ($) $ / shares shares	Jun. 30, 2020 $ / shares shares
Number of Options
Beginning balance (in shares) \| shares	42,536,487
Granted (in shares) \| shares	16,009,746
Exercised (in shares) \| shares	(11,213,678)
Forfeited, expired or cancelled (in shares) \| shares	(1,541,557)
Ending balance (in shares) \| shares	45,790,998	42,536,487
Vested and exercisable (in shares) \| shares	19,592,979
Vested and exercisable, and expected to vest thereafter (in shares) \| shares	42,645,938
Weighted Average Exercise Price
Beginning balance (in USD per share) \| $ / shares	$ 5.17
Granted (in USD per share) \| $ / shares	49.10
Exercised (in USD per share) \| $ / shares	4.07
Forfeited, expired or cancelled (in USD per share) \| $ / shares	7.22
Ending balance (in USD per share) \| $ / shares	20.73	$ 5.17
Vested and exercisable (in USD per share) \| $ / shares	4.39
Vested and exercisable, and expected to vest thereafter (in USD per share) \| $ / shares	$ 20.32
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Term	7 years 11 months 19 days	7 years 6 months 14 days
Weighted Average Remaining Contractual Term, Vested and exercisable	6 years 5 months 12 days
Weighted Average Remaining Contractual Term, Vested and exercisable, and expected to vest	7 years 10 months 24 days
Aggregate Intrinsic Value, Vested and exercisable \| $	$ 1,283,101
Aggregate Intrinsic Value, Vested and exercisable, and expected to vest \| $	$ 2,263,965

Equity and Cash Incentive Plans - Value Creation Award (Details)	9 Months Ended
	Mar. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options (in shares)	16,009,746
Performance Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options (in shares)	12,500,000
Performance Based Stock Options \| Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Hurdle (in USD per share) \| $ / shares	$ 65.66
Number of Options (in shares)	1,000,000
Performance Based Stock Options \| Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Hurdle (in USD per share) \| $ / shares	$ 82.32
Number of Options (in shares)	1,000,000
Performance Based Stock Options \| Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Hurdle (in USD per share) \| $ / shares	$ 98.98
Number of Options (in shares)	1,000,000
Performance Based Stock Options \| Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Hurdle (in USD per share) \| $ / shares	$ 115.64
Number of Options (in shares)	1,000,000
Performance Based Stock Options \| Tranche Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Hurdle (in USD per share) \| $ / shares	$ 132.30
Number of Options (in shares)	1,000,000
Performance Based Stock Options \| Tranche Six
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Hurdle (in USD per share) \| $ / shares	$ 148.47
Number of Options (in shares)	1,000,000
Performance Based Stock Options \| Tranche Seven
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Hurdle (in USD per share) \| $ / shares	$ 165.13
Number of Options (in shares)	1,000,000
Performance Based Stock Options \| Tranche Eight
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Hurdle (in USD per share) \| $ / shares	$ 181.79
Number of Options (in shares)	1,000,000
Performance Based Stock Options \| Tranche Nine
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Hurdle (in USD per share) \| $ / shares	$ 247.94
Number of Options (in shares)	2,250,000
Performance Based Stock Options \| Tranche Ten
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Hurdle (in USD per share) \| $ / shares	$ 371.91
Number of Options (in shares)	2,250,000

Equity and Cash Incentive Plans - RSU Activity (Details)	9 Months Ended
	Mar. 31, 2021 $ / shares shares
Number of Shares
Vested (in shares) \| shares	(3,537,425)
Weighted Average Grant Date Fair Value
Vested (in USD per share) \| $ / shares	$ 98.55
Restricted stock units
Number of Shares
Beginning balance, Non-vested (in shares) \| shares	8,235,170
Granted (in shares) \| shares	10,185,952
Forfeited, expired or cancelled (in shares) \| shares	(860,283)
Ending balance, Non-vested (in shares) \| shares	14,023,414
Weighted Average Grant Date Fair Value
Beginning balance, Non-vested (in USD per share) \| $ / shares	$ 7.95
Granted (in USD per share) \| $ / shares	35.25
Forfeited, expired or cancelled (in USD per share) \| $ / shares	9.95
Ending balance, Non-vested (in USD per share) \| $ / shares	$ 27.96

Equity and Cash Incentive Plans - Components and Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 15, 2021	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation in operating expenses	$ 65,100	$ 139,747	$ 7,970	$ 152,471	$ 24,689
Capitalized into property, equipment and software, net		6,567	667	7,792	2,350
Total stock-based compensation expense		146,314	8,637	160,263	27,039
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation in operating expenses		82,421	3,665	88,722	11,166
Technology and data analytics
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation in operating expenses		45,980	3,360	50,749	10,297
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation in operating expenses		9,933	918	11,274	3,172
Processing and servicing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation in operating expenses		$ 1,413	$ 27	$ 1,726	$ 54

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (70)	$ 93	$ 105	$ 282

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Net Loss per Share Attributable to Common Stockholders - Additional Information (Details)	Jan. 12, 2021
Class A common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, stock split	0.5
Class B common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, stock split	0.5

Net Loss per Share Attributable to Common Stockholders - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Mar. 31, 2021	Mar. 31, 2020
Numerator, Basic
Net Loss	$ (247,159)	$ (26,610)	$ (3,946)	$ (85,620)	$ (30,996)	$ (30,795)	$ (277,715)	$ (147,411)
Excess return to preferred stockholders on repurchase	0			0			0	(13,205)
Net Loss Attributable to Common Stockholders	$ (247,159)			(85,620)			$ (277,715)	(160,616)
Numerator, Diluted
Net Loss Attributable to Common Stockholders				$ (85,620)				$ (160,616)
Denominator, Basic
Basic weighted average common shares outstanding (in shares)	233,309,590			47,435,554			122,161,508	47,974,768
Denominator, Diluted
Total-diluted (in shares)	233,309,590			47,435,554			123,329,359	47,974,768
Net loss per share attributable to common stockholders:
Basic (in USD per share)	$ (1.06)			$ (1.80)			$ (2.27)	$ (3.35)
Diluted (in USD per share)	$ (1.06)			$ (1.80)			$ (2.48)	$ (3.35)
Class A common stock
Numerator, Basic
Net Loss	$ (129,975)						$ (133,038)
Excess return to preferred stockholders on repurchase	0						(14,428)
Net Loss Attributable to Common Stockholders	(129,975)						(133,038)
Numerator, Diluted
Gain on conversion of convertible debt	0						191
Interest on convertible debt prior to conversion	0						859
Net Loss Attributable to Common Stockholders	$ (129,975)						$ (146,416)
Denominator, Basic
Basic weighted average common shares outstanding (in shares)	122,691,770						58,520,980
Denominator, Diluted
Total-diluted (in shares)	122,691,770						59,104,905
Weighted average common shares attributable to convertible debt prior to conversion (in shares)	0						583,925
Net loss per share attributable to common stockholders:
Basic (in USD per share)	$ (1.06)						$ (2.27)
Diluted (in USD per share)	$ (1.06)						$ (2.48)
Class B common stock
Numerator, Basic
Net Loss	$ (117,184)						$ (144,677)
Excess return to preferred stockholders on repurchase	0						(15,677)
Net Loss Attributable to Common Stockholders	(117,184)						(144,677)
Numerator, Diluted
Gain on conversion of convertible debt	0						207
Interest on convertible debt prior to conversion	0						933
Net Loss Attributable to Common Stockholders	$ (117,184)						$ (159,214)
Denominator, Basic
Basic weighted average common shares outstanding (in shares)	110,617,820						63,640,528
Denominator, Diluted
Total-diluted (in shares)	110,617,820						64,224,453
Weighted average common shares attributable to convertible debt prior to conversion (in shares)	0						583,925
Net loss per share attributable to common stockholders:
Basic (in USD per share)	$ (1.06)						$ (2.27)
Diluted (in USD per share)	$ (1.06)						$ (2.48)

Net Loss per Share Attributable to Common Stockholders - Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares)	47,667,984	171,963,148
Redeemable convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares)	0	122,115,971
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)	33,342,527	43,224,565
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)	13,975,457	5,916,547
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)	350,000	706,065

Segments and Geographical Information - Additional Information (Details)	9 Months Ended
	Mar. 31, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	1
Number of operating segments	1

Segments and Geographical Information - Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenue, net	$ 230,665	$ 138,273	$ 608,684	$ 356,196
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenue, net	224,863	137,198	603,048	354,394
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenue, net	$ 5,802	$ 1,075	$ 5,636	$ 1,802