Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Aug. 02, 2024 | Dec. 31, 2023 | |
Cover | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2024 | ||
Entity File Number | 001-33883 | ||
Entity Registrant Name | Stride, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-4774688 | ||
Entity Address, Address Line One | 11720 Plaza America 9th Floor | ||
Entity Address, City or Town | Reston | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 20190 | ||
City Area Code | 703 | ||
Local Phone Number | 483-7000 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | LRN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 43,278,384 | ||
Entity Public Float | $ 1,639,487,000 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001157408 | ||
Amendment Flag | false | ||
Auditor Name | BDO USA, P.C. | ||
Auditor Firm ID | 243 | ||
Auditor Location | Potomac, Maryland |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 500,614 | $ 410,807 |
Accounts receivable, net of allowance of $31,298 and $30,031 | 472,754 | 463,722 |
Inventories, net | 36,748 | 36,716 |
Prepaid expenses | 29,164 | 24,817 |
Marketable securities | 191,672 | 111,918 |
Other current assets | 14,494 | 17,219 |
Total current assets | 1,245,446 | 1,065,199 |
Operating lease right-of-use assets, net | 54,503 | 69,508 |
Property and equipment, net | 50,856 | 52,332 |
Capitalized software, net | 81,952 | 83,465 |
Capitalized curriculum development costs, net | 53,232 | 50,787 |
Intangible assets, net | 60,282 | 74,771 |
Goodwill | 246,676 | 246,676 |
Deferred tax asset | 7,200 | 8,776 |
Deposits and other assets | 120,318 | 109,152 |
Total assets | 1,920,465 | 1,760,666 |
Current liabilities | ||
Accounts payable | 40,970 | 48,854 |
Accrued liabilities | 60,796 | 76,626 |
Accrued compensation and benefits | 64,878 | 57,426 |
Deferred revenue | 35,742 | 76,159 |
Current portion of finance lease liability | 29,146 | 35,621 |
Current portion of operating lease liability | 12,748 | 14,449 |
Total current liabilities | 244,280 | 309,135 |
Long-term finance lease liability | 26,452 | 21,278 |
Long-term operating lease liability | 45,192 | 59,425 |
Long-term debt | 414,675 | 413,035 |
Other long-term liabilities | 13,841 | 10,497 |
Total liabilities | 744,440 | 813,370 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding | ||
Common stock, par value $0.0001; 100,000,000 shares authorized; 48,576,164 and 48,339,048 shares issued; and 43,241,421 and 43,004,305 shares outstanding, respectively | 4 | 4 |
Additional paid-in capital | 720,033 | 695,480 |
Accumulated other comprehensive loss | (42) | (35) |
Retained earnings | 558,512 | 354,329 |
Treasury stock of 5,334,743 shares at cost | (102,482) | (102,482) |
Total stockholders' equity | 1,176,025 | 947,296 |
Total liabilities and stockholders' equity | $ 1,920,465 | $ 1,760,666 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance (in dollars) | $ 31,298 | $ 30,031 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 48,576,164 | 48,339,048 |
Common stock, shares outstanding | 43,241,421 | 43,004,305 |
Treasury stock, shares | 5,334,743 | 5,334,743 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Revenues | $ 2,040,069 | $ 1,837,358 | $ 1,686,666 |
Instructional costs and services | 1,276,466 | 1,190,288 | 1,090,191 |
Gross margin | 763,603 | 647,070 | 596,475 |
Selling, general, and administrative expenses | 514,003 | 481,571 | 439,847 |
Income from operations | 249,600 | 165,499 | 156,628 |
Interest expense, net | (8,812) | (8,404) | (8,277) |
Other income (expense), net | 26,900 | 15,452 | (1,277) |
Income before income taxes and income (loss) from equity method investments | 267,688 | 172,547 | 147,074 |
Income tax expense | (64,482) | (45,346) | (40,088) |
Income (loss) from equity method investments | 977 | (334) | 144 |
Net income attributable to common stockholders | $ 204,183 | $ 126,867 | $ 107,130 |
Net income attributable to common stockholders per share: | |||
Basic (in dollars per share) | $ 4.79 | $ 3 | $ 2.58 |
Diluted (in dollars per share) | $ 4.69 | $ 2.97 | $ 2.52 |
Basic (in shares) | 42,626,588 | 42,286,392 | 41,451,101 |
Diluted (in shares) | 43,535,441 | 42,728,108 | 42,441,524 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 204,183 | $ 126,867 | $ 107,130 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | (7) | (178) | 617 |
Comprehensive income attributable to common stockholders | $ 204,176 | $ 126,689 | $ 107,747 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Treasury Stock | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance (ASU 2020-06) at Jun. 30, 2021 | $ (89,460) | $ 8,181 | $ (81,279) | ||||||
Balance at Jun. 30, 2021 | $ 4 | $ 795,449 | $ (474) | $ 112,151 | $ (102,482) | $ 804,648 | |||
Balance (in shares) at Jun. 30, 2021 | 46,911,527 | (5,334,743) | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net Income (Loss) | 107,130 | 107,130 | |||||||
Foreign currency translation adjustment | 617 | 617 | |||||||
Stock-based compensation expense | 19,021 | 19,021 | |||||||
Exercise of stock options | 414 | $ 414 | |||||||
Exercise of stock options (in shares) | 29,100 | 29,100 | |||||||
Vesting of performance share units, net of tax withholding (in shares) | 1,017,380 | ||||||||
Issuance of restricted stock awards (in shares) | 582,273 | ||||||||
Forfeiture of restricted stock awards (in shares) | (160,795) | ||||||||
Repurchase of restricted stock for tax withholding | (37,970) | $ (37,970) | |||||||
Repurchase of restricted stock for tax withholding (in shares) | (266,821) | ||||||||
Balance at Jun. 30, 2022 | $ 4 | 687,454 | 143 | 227,462 | $ (102,482) | 812,581 | |||
Balance (in shares) at Jun. 30, 2022 | 48,112,664 | (5,334,743) | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net Income (Loss) | 126,867 | 126,867 | |||||||
Foreign currency translation adjustment | (178) | (178) | |||||||
Stock-based compensation expense | 21,419 | 21,419 | |||||||
Exercise of stock options | 20 | $ 20 | |||||||
Exercise of stock options (in shares) | 1,350 | 1,350 | |||||||
Vesting of performance share units, net of tax withholding (in shares) | 80,004 | ||||||||
Issuance of restricted stock awards (in shares) | 595,818 | ||||||||
Forfeiture of restricted stock awards (in shares) | (137,134) | ||||||||
Repurchase of restricted stock for tax withholding | (13,413) | $ (13,413) | |||||||
Repurchase of restricted stock for tax withholding (in shares) | (313,654) | ||||||||
Balance at Jun. 30, 2023 | $ 4 | 695,480 | (35) | 354,329 | $ (102,482) | 947,296 | |||
Balance (in shares) at Jun. 30, 2023 | 48,339,048 | (5,334,743) | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net Income (Loss) | 204,183 | 204,183 | |||||||
Foreign currency translation adjustment | (7) | (7) | |||||||
Stock-based compensation expense | 32,810 | 32,810 | |||||||
Vesting of performance share units, net of tax withholding (in shares) | 31,426 | ||||||||
Issuance of restricted stock awards (in shares) | 507,443 | ||||||||
Forfeiture of restricted stock awards (in shares) | (153,728) | ||||||||
Repurchase of restricted stock for tax withholding | (8,257) | (8,257) | |||||||
Repurchase of restricted stock for tax withholding (in shares) | (148,025) | ||||||||
Balance at Jun. 30, 2024 | $ 4 | $ 720,033 | $ (42) | $ 558,512 | $ (102,482) | $ 1,176,025 | |||
Balance (in shares) at Jun. 30, 2024 | 48,576,164 | (5,334,743) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | |||
Net income | $ 204,183 | $ 126,867 | $ 107,130 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 109,683 | 110,358 | 97,914 |
Stock-based compensation expense | 31,462 | 20,320 | 18,570 |
Deferred income taxes | 2,890 | (10,373) | 1,190 |
Provision for credit losses | 22,844 | 9,158 | 15,673 |
Amortization of fees on debt | 1,640 | 1,597 | 1,573 |
Noncash operating lease expense | 14,246 | 14,728 | 19,810 |
Other | 849 | (1,966) | 9,949 |
Changes in assets and liabilities: | |||
Accounts receivable | (32,056) | (54,908) | (57,501) |
Inventories, prepaid expenses, deposits and other current and long-term assets | (8,877) | (19,389) | 4,798 |
Accounts payable | (6,844) | (11,999) | 11 |
Accrued liabilities | (16,556) | 24,132 | 7,598 |
Accrued compensation and benefits | 7,394 | (15,473) | (7,465) |
Operating lease liability | (14,990) | (12,243) | (20,742) |
Deferred revenue and other liabilities | (37,071) | 22,341 | 8,376 |
Net cash provided by operating activities | 278,797 | 203,150 | 206,884 |
Cash flows from investing activities | |||
Purchase of property and equipment | (2,270) | (4,336) | (9,748) |
Capitalized software development costs | (40,653) | (44,973) | (42,191) |
Capitalized curriculum development costs | (18,666) | (17,239) | (15,687) |
Sale of other investments | 60 | 5,261 | |
Acquisition of assets | (1,409) | ||
Other acquisitions, loans and investments, net of distributions | (5,196) | (1,652) | (3,899) |
Proceeds from the maturity of marketable securities | 204,487 | 91,879 | 40,163 |
Purchases of marketable securities | (277,573) | (140,570) | (84,657) |
Net cash used in investing activities | (139,871) | (118,240) | (110,758) |
Cash flows from financing activities | |||
Repayments on finance lease obligations | (40,919) | (42,956) | (33,011) |
Payments of contingent consideration | (7,024) | ||
Payments of deferred purchase consideration | (22,858) | ||
Proceeds from exercise of stock options | 20 | 414 | |
Repurchase of restricted stock for income tax withholding | (8,200) | (13,541) | (37,855) |
Net cash used in financing activities | (49,119) | (63,501) | (93,310) |
Net change in cash, cash equivalents and restricted cash | 89,807 | 21,409 | 2,816 |
Cash, cash equivalents and restricted cash, beginning of period | 410,807 | 389,398 | 386,582 |
Cash, cash equivalents and restricted cash, end of period | $ 500,614 | $ 410,807 | $ 389,398 |
Description of the Business
Description of the Business | 12 Months Ended |
Jun. 30, 2024 | |
Description of the Business | |
Description of the Business | 1. Description of the Business Stride, Inc., together with its subsidiaries (“Stride” or the “Company”) is a technology company providing an educational platform to deliver online learning to students throughout the U.S. The brand reflects the Company’s continued growth into lifelong learning, regardless of a student’s age or location. The Company’s platform hosts products and services to attract, enroll, educate, track progress, and support students. These products and services, spanning curriculum, systems, instruction, and support services are designed to help learners of all ages reach their full potential through inspired teaching and personalized learning. The Company’s clients are primarily public and private schools, school districts, and charter boards. Additionally, it provides solutions to employers, government agencies and consumers. These products and services are provided through two lines of revenue: ● Products and services for the General Education market are predominantly focused on core subjects, including math, English, science and history, for kindergarten through twelfth grade students to help build a common foundation of knowledge. These programs provide an alternative to traditional school options and address a range of student needs. Products and services are delivered as a comprehensive school-as-a-service offering for schools or as stand-alone products and services. A student enrolled in a school that offers Stride’s General Education program may elect to take career courses, but that student and the associated revenue is reported as a General Education enrollment and General Education revenue . ● Career Learning products and services are focused on developing skills to enter and succeed in careers in high-growth, in-demand industries—including information technology, healthcare and general business. The Company provides middle and high school students with Career Learning programs that complement their core general education coursework. Stride offers multiple career pathways through a diverse catalog of courses. The middle school program exposes students to a variety of career options and introduces career skill development. In high school, students may engage in industry content pathway courses, project-based learning in virtual teams, and career development services. High school students have the opportunity to progress toward certifications, connect with industry professionals, earn college credits while in high school, and participate in job shadowing and/or work-based learning experiences that facilitate success in today’s digital, tech-enabled economy. A student is reported as a Career Learning enrollment and associated Career Learning revenue only if the student is enrolled in a Career Learning program. Like General Education products and services, the products and services for Career Learning are sold as a comprehensive school-as-a-service offering or as stand-alone products and services. The Company also provides focused post-secondary career learning programs to adult learners, for the software engineering, healthcare, and medical fields. These programs are sold directly to consumers, employers and government agencies. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Jun. 30, 2024 | |
Basis of Presentation | |
Basis of Presentation | 2. Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. The Company operates in one operating and reportable |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies Recent Accounting Pronouncements Accounting Standards Adopted On July 1, 2021, the Company early adopted Accounting Standards Update (“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) (“ASU 2020-06”) which, among other things, simplifies the accounting for convertible instruments by eliminating the requirement to separate conversion features from the host contract. Consequently, a convertible debt instrument is accounted for as a single liability measured at its amortized cost and interest expense will be recognized at the coupon rate. The adoption resulted in the elimination of the debt discount (and related deferred tax liability) that had been recorded within equity. The net impact of the adjustments was recorded to the opening balance of retained earnings, as presented in the statement of stockholders’ equity. The impacts of adoption were the following: (1) increase of $110.6 million to long-term debt, (2) decrease of $89.5 million to additional paid-in capital, (3) decrease of $29.3 million to deferred tax liability, and (4) increase to retained earnings of $8.2 million. Accounting Standards Not Yet Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020 04”) which provides relief to companies that will be impacted by the cessation of reference rate reform, e.g. LIBOR, that was tentatively planned for the end of fiscal year 2023. The ASU permitted an entity to consider contract modifications due to reference rate reform to be an event that did not require contract remeasurement. This ASU was applicable from March 12, 2020 through December 31, 2022 and adoption was permitted at any time during the period on a prospective basis. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the provisions of Topic 848 to December 31, 2024. The Company’s senior secured revolving credit facility includes the use of alternate rates when LIBOR is not available. The Company does not expect the change from LIBOR to an alternate rate will have a material impact to the consolidated financial statements and, to the extent it enters into modifications of agreements that are impacted by the LIBOR phase-out, the Company will apply such guidance to those contract modifications. In November 2023, the FASB issued ASU 2023-07, Segment Reporting In December 2023, the FASB issued ASU 2023-09, Income Taxes Improvements to Income Tax Disclosures Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to the allowance for credit losses, inventory reserves, amortization periods, the allocation of purchase price to the fair value of net assets and liabilities acquired in business combinations, fair values used in asset impairment evaluations, valuation of long-lived assets, accrual for incurred but not reported (“IBNR”) claims, contingencies, income taxes, fair value of contingent consideration and stock-based compensation expense. The Company bases its estimates on historical experience and various assumptions that it believes are reasonable under the circumstances. The results of the analysis form the basis for making assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services using the following steps: ● identify the contract, or contracts, with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to the performance obligations in the contract; and ● recognize revenue when, or as, the Company satisfies a performance obligation. Revenues related to the products and services that the Company provides to students in kindergarten through twelfth grade or adult learners are considered to be General Education or Career Learning based on the school or adult program in which the student is enrolled. General Education products and services are focused on core subjects, including math, English, science and history, for kindergarten through twelfth grade students to help build a common foundation of knowledge. Career Learning products and services are focused on developing skills to enter and succeed in careers in high-growth, in-demand industries—including information technology, healthcare and general business, for students in middle school through high school and adult learners. The majority of the Company’s contracts are with the following types of customers: ● a virtual or blended school whereby the amount of revenue is primarily determined by funding the school receives; ● a school or individual who licenses certain curriculum on a subscription or course-by-course basis; or ● an enterprise who contracts with the Company to provide job training. Funding-based Contracts The Company provides an integrated package of systems, services, products, and professional expertise that is administered together to support a virtual or blended public school. Contractual agreements generally span multiple years with performance obligations being isolated to annual periods which generally coincide with the Company’s fiscal year. Customers of these programs can obtain administrative support, information technology, academic support services, online curriculum, learning systems platforms and instructional services under the terms of a negotiated service agreement. The schools receive funding on a per student basis from the state in which the public school or school district is located. Shipments of materials for schools that occur in the fourth fiscal quarter and for the upcoming school year are recorded in deferred revenue. The Company generates revenues under contracts with virtual and blended public schools and include the following components, where required: ● providing each of a school’s students with access to the Company’s online school and lessons; ● offline learning kits, which include books and materials to supplement the online lessons; ● the use of a personal computer and associated reclamation services; ● internet access and technology support services; ● instruction by a state-certified teacher; and ● management and technology services necessary to support a virtual or blended school. In certain contracts, revenues are determined directly by per enrollment funding. To determine the pro rata amount of revenue to recognize in a fiscal quarter, the Company estimates the total expected funds each school will receive in a particular school year. Total funds for a school are primarily a function of the number of students enrolled in the school and established per enrollment funding levels, which are generally published on an annual basis by the state or school district. The Company reviews its estimates of funding periodically, and updates as necessary, by adjusting its year-to-date earned revenues to be proportional to the total expected revenues to be earned during the fiscal year. Actual school funding may vary from these estimates and the impact of these differences could impact the Company’s results of operations. Since the end of the school year coincides with the end of the Company’s fiscal year, annual revenues are generally based on actual school funding and actual costs incurred (including costs for the Company’s services to the schools plus other costs the schools may incur). The Company’s reported results are subject to annual school district financial audits, which incorporate enrollment counts, funding and other routine financial audit considerations. The results of these audits are incorporated into the Company’s monthly funding estimates for the current and prior periods. Historically, aggregate funding estimates have differed from actual reimbursements, generally in the range of 2% of annual revenue or less, which may vary from year to year. For the years ended June 30, 2023, 2022 and 2021, the Company’s aggregate funding estimates differed from actual reimbursements impacting total reported revenue by approximately 2.8%, 1.6%, and 1.4%, respectively. Each state and/or school district has variations in the school funding formulas and methodologies that it uses to estimate funding for revenue recognition at its respective schools. As the Company estimates funding for each school, it takes into account the state definition for count dates on which reported enrollment numbers will be used for per pupil funding. The parameters the Company considers in estimating funding for revenue recognition purposes include school district count definitions, withdrawal rates, new registrations, average daily attendance, special needs enrollment, academic progress, historical completion, student location, funding caps and other state specified categorical program funding. Under the contracts where the Company provides products and services to schools, the Company is responsible for substantially all of the expenses incurred by the school and has generally agreed to absorb any operating losses of the schools in a given school year. These school operating losses represent the excess of costs incurred over revenues earned by the virtual or blended public school (the school’s expected funding), as reflected in its respective financial statements, including Company charges to the schools. To the extent a school does not receive sufficient funding for each student enrolled in the school, the school would still incur costs associated with serving the unfunded enrollment. If losses due to unfunded enrollments result in a net operating loss for the year that loss is reflected as a reduction in the revenues and net receivables that the Company collects from the school. A school net operating loss in one year does not necessarily mean the Company anticipates losing money on the entire contract with the school. However, a school’s net operating loss may reduce the Company’s ability to collect its management fees in full and recognized revenues are constrained to reflect the expected cash collections from such schools. The Company records the school’s estimated net operating loss against revenues based upon the percentage of actual revenues in the period to total estimated revenues for the fiscal year. Actual school net operating losses may vary from these estimates or revisions, and the impact of these differences could have a material impact on results of operations. For the years ended June 30, 2024, 2023 and 2022, the Company’s revenues included a reduction for net school operating losses at the schools of $17.0 million, $23.8 million, and $36.3 million, respectively. Because the Company has agreed to absorb any operating losses of the schools, the Company records the expenses incurred by the school as both revenue and expenses in the consolidated statements of operations. Amounts recorded as revenues and expenses for the years ended June 30, 2024, 2023 and 2022, were $576.4 million, $503.2 million and $460.5 million, respectively. Subscription-based Contracts The Company provides certain online curriculum and services to schools and school districts under subscription agreements. Revenues from the licensing of curriculum under subscription arrangements are recognized on a ratable basis over the subscription period. Revenues from professional consulting, training and support services are deferred and recognized ratably over the service period. In addition, the Company contracts with individual customers who have access for one Enterprise Contracts The Company provides job training over a specified contract period to enterprises. Each of these contracts are considered to be one performance obligation. The Company recognizes these revenues based on the number of students trained during the term of the contract based on the defined contract price. Disaggregated Revenues The revenue recognition related to the types of contracts discussed above can span both of the Company’s lines of revenue as shown below. For example, a funding-based contract may include both General Education and Career Learning students. In total, there is one performance obligation and revenue is recognized over the Company’s fiscal year. The revenue is then disaggregated between General Education and Career Learning based on the Company’s estimated full-year enrollment totals of each category. During the years ended June 30, 2024, 2023 and 2022, approximately 93%, 90%, and 89%, respectively, of the Company’s General Education revenues, and 100%, 99% and 99%, respectively, of the Company’s Middle – High School Career Learning revenues, were from funding-based contracts. The following table presents the Company’s revenues disaggregated based on its two lines of revenue for the years ended June 30, 2024, 2023 and 2022: Years Ended June 30, 2024 2023 2022 (In thousands) General Education $ 1,289,193 $ 1,131,391 $ 1,273,783 Career Learning Middle - High School 651,191 586,770 321,416 Adult 99,685 119,197 91,467 Total Career Learning 750,876 705,967 412,883 Total Revenues $ 2,040,069 $ 1,837,358 $ 1,686,666 Concentration of Customers During the years ended June 30, 2024, 2023 and 2022, the Company had no contracts that represented greater than 10% of total revenues. Contract Balances The timing of revenue recognition, invoicing, and cash collection results in accounts receivable, unbilled receivables (a contract asset) and deferred revenue (a contract liability) in the consolidated balance sheets. Accounts receivable are recorded when there is an executed customer contract and the customer is billed. An allowance is recorded to reflect expected losses at the time the receivable is recorded. The collectability of outstanding receivables is evaluated regularly by the Company to determine if additional allowances are needed. Unbilled receivables are created when revenue is earned prior to the customer being billed. Deferred revenue is recorded when customers are billed or cash is collected in advance of services being provided. The opening and closing balance of the Company’s accounts receivable, unbilled receivables and deferred revenue are as follows: June 30, 2024 2023 2022 (In thousands) Accounts receivable $ 472,754 $ 463,722 $ 418,558 Unbilled receivables (included in accounts receivable) 19,499 20,647 19,702 Deferred revenue 35,742 76,159 53,630 Deferred revenue, long-term (included in other long-term liabilities) 1,097 2,061 3,099 The difference between the opening and closing balance of the accounts receivable and unbilled receivables relates to the timing of the Company’s billing in relation to month end and contractual agreements. The difference between the opening and closing balance of the deferred revenue relates to the timing difference between billings to customers and the service periods under the contract, as well as changes in the estimates of variable consideration. Typically, each of these balances are at their highest during the first quarter of the fiscal year and lowest at the end of the fiscal year. The amount of revenue recognized during the years ended June 30, 2024, 2023 and 2022, that was included in the previous July 1 st Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For the majority of its contracts, the Company’s performance obligations are satisfied over time, as the Company delivers, and the customer receives the services, over the service period of the contract. The Company’s payment terms are generally net 30 or net 45, but can vary depending on the customer or when the school receives its funding from the state. Significant Judgments The Company has determined that the time elapsed method is the most appropriate measure of progress towards the satisfaction of the performance obligation. Generally, the Company delivers the integrated products and services package over the course of the Company’s fiscal year. This package includes enrollment, marketing, teacher training, etc. in addition to the core curriculum and instruction. All of these activities are necessary and contribute to the overall education of its students, which occurs evenly throughout the year. Accordingly, the Company recognizes revenue on a straight-line basis. and the amount of full-year school revenues and operating expenses to determine the amount of revenue the Company will recognize. Enrollment and state funding rates are key inputs to this estimate. The estimates are adjusted monthly, and a cumulative catch-up adjustment is recorded to revenue as necessary to reflect the total revenues earned to date to be proportional to the total revenues to be earned in the fiscal year. The Company builds in known constraints (i.e., enrollment, funding, net operating losses, etc.) into the estimate of the variable consideration to record the most probable amount. Sales Taxes Sales tax collected from customers is excluded from revenues. Collected but unremitted sales tax is included as part of accrued liabilities in the consolidated balance sheets. Revenues do not include sales tax as the Company considers itself a pass-through conduit for collecting and remitting sales tax. Shipping and Handling Costs Shipping and handling costs are expensed when incurred and are classified as instructional costs and services in the consolidated statements of operations. Shipping and handling charges invoiced to a customer are included in revenues. Research and Development Costs All research and development costs, including patent application costs, are expensed as incurred. Research and development costs totaled $16.7 million, $15.5 million and $7.5 million for the years ended June 30, 2024, 2023 and 2022, respectively, and are included within selling, general and administrative expenses in the consolidated statements of operations. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents generally consist of cash on hand and cash held in money market and demand deposit accounts. The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company periodically has cash balances which exceed federally insured limits. Investments in Marketable Securities The Company’s marketable securities generally consist of bonds and other securities which are classified as held-to-maturity. The securities with maturities between three months and one year are classified as short-term and are included in marketable securities on the consolidated balance sheets. The securities with maturities greater than one year are classified as long-term and are included in deposits and other assets on the consolidated balance sheets. Held-to-maturity securities are recorded at their amortized cost. The Company recorded interest income of $25.6 million, $13.6 million and $0.4 million for the years ended June 30, 2024, 2023 and 2022, respectively. This activity is recorded within other income (expense) within the consolidated statements of operations. The Company reviews the held-to-maturity debt securities for declines in fair value below the amortized cost basis under the credit loss model of Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments – Credit Losses As of June 30, 2024, the Company’s marketable securities consisted of investments in corporate bonds, U.S. treasury notes and commercial paper. The short-term and long-term portions were $191.7 million and $21.9 million, respectively. The maturities of the Company’s long-term marketable debt securities range from one two The following table summarizes the amortized cost, net carrying amount, and fair value disaggregated by class of instrument (in thousands). Allowance for Net Carrying Gross Unrealized Amortized Cost Credit Losses Amount Gains (Losses) Fair Value Corporate Bonds $ 45,752 $ - $ 45,752 $ (95) $ 45,657 U.S. Treasury Notes 46,760 - 46,760 (71) 46,689 Commercial Paper 121,077 - 121,077 2 121,079 Total $ 213,589 $ - $ 213,589 $ (164) $ 213,425 one two Allowance for Net Carrying Gross Unrealized Amortized Cost Credit Losses Amount Gains (Losses) Fair Value Corporate Bonds $ 52,567 $ - $ 52,567 $ (460) $ 52,107 U.S. Treasury Notes 46,156 - 46,156 (228) 45,928 Commercial Paper 35,949 - 35,949 - 35,949 Total $ 134,672 $ - $ 134,672 $ (688) $ 133,984 Allowance for Credit Losses The Company maintains an allowance for credit losses primarily for estimated losses resulting from the inability or failure of individual customers to make required payments. The Company maintains an allowance under ASC 326 based on historical losses, changes in payment history, customer-specific information, current economic conditions, and reasonable and supportable forecasts of future economic conditions. The allowance under ASC 326 is updated as additional losses are incurred or information becomes available related to the customer or economic conditions. The Company’s allowance for credit losses increased from $30.0 million as of June 30, 2023 to $31.3 million as of June 30, 2024. The increase of $1.3 million is due primarily to a $22.8 million current year provision, less $21.6 million in amounts written off. The Company’s allowance for credit losses increased from $27.0 million as of June 30, 2022 to $30.0 million as of June 30, 2023. The increase of $3.0 million is comprised of an $8.0 million provision, less $5.0 million of amounts recovered. The Company writes-off accounts receivable based on the age of the receivable and the facts and circumstances surrounding the customer and reasons for non-payment. Actual write-offs might differ from the recorded allowance. Inventories Inventories consist primarily of textbooks and curriculum materials, a majority of which are supplied to virtual and blended public schools, and utilized directly by students. Inventories represent items that are purchased and held for sale and are recorded at the lower of cost (first-in, first-out method) or net realizable value. The Company classifies its inventory as current or long-term based on the holding period. As of June 30, 2024 and 2023, $12.5 million and $13.2 million, respectively, of inventory, net of reserves, was deemed long-term and included in deposits and other assets on the consolidated balance sheets. The provision for excess and obsolete inventory is established based upon the evaluation of the quantity on hand relative to demand. The excess and obsolete inventory reserve was $5.9 million and $4.1 million at June 30, 2024 and 2023, respectively. Other Current Assets Other current assets primarily include textbooks, curriculum materials and other supplies which are expected to be returned upon the completion of the school year. Materials not returned are expensed as part of instructional costs and services. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is calculated using the straight-line method over the estimated useful life of the asset (or the lesser of the term of the lease and the estimated useful life of the asset under the finance lease). Amortization of assets capitalized under finance lease arrangements is included in depreciation expense. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the asset. The determination of the lease term is discussed below under “Leases.” Property and equipment are depreciated over the following useful lives: Useful Life Student and state testing computers and printers 3 Computer hardware 3 Computer software 3 Web site development 3 years Office equipment 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of useful life or term of the lease The Company makes an estimate of unreturned student computers and printers based on an analysis of recent trends of returns. The Company recorded accelerated depreciation of $4.0 million, $5.6 million and $3.8 million for the years ended June 30, 2024, 2023 and 2022, respectively, related to unreturned student computers and printers. The Company fully expenses computer peripheral equipment (e.g., keyboards, mouses) upon purchase as recovery has been determined to be uneconomical. These expenses totaled $4.0 million, $3.1 million and $8.6 million for the years ended June 30, 2024, 2023 and 2022, respectively, and are recorded as instructional costs and services. Capitalized Software Costs The Company develops software for internal use. Software development costs incurred during the application development stage are capitalized. The Company amortizes these costs over the estimated useful life of the software, which is generally three years. Capitalized software development costs are stated at cost less accumulated amortization. Capitalized software additions totaled $40.7 million, $45.0 million and $42.2 million for the years ended June 30, 2024, 2023 and 2022, respectively. There were no material write-downs of capitalized software projects for the years ended June 30, 2024, 2023 and 2022. Capitalized Curriculum Development Costs The Company internally develops curriculum, which is primarily provided as online content and accessed via the Internet. The Company also creates textbooks and other materials that are complementary to online content. The Company capitalizes curriculum development costs incurred during the application development stage, as well as the design and deployment phases of the project. As a result, a significant portion of the Company’s courseware development costs qualify for capitalization due to the concentration of its development efforts on the content of the courseware. Capitalization ends when a course is available for general release to its customers, at which time amortization of the capitalized costs begins. The period of time over which these development costs are amortized is generally five years. Total capitalized curriculum development additions were $18.7 million, $17.2 million and $15.7 million for the years ended June 30, 2024, 2023 and 2022, respectively. These amounts are recorded on the consolidated balance sheets, net of amortization charges. There were no material write-downs of capitalized curriculum development costs for the years ended June 30, 2024, 2023 and 2022. Leases The Company’s principal leasing activities include student computers and peripherals, classified as finance leases, and facilities, classified as operating leases. Leases are classified as operating leases unless they meet any of the criteria below to be classified as a finance lease: ● the lease transfers ownership of the asset at the end of the lease; ● the lease grants an option to purchase the asset which the lessee is expected to exercise; ● the lease term reflects a major part of the asset’s economic life; ● the present value of the lease payments equals or exceeds the fair value of the asset; or ● the asset is specialized with no alternative use to the lessor at the end of the term. Finance Leases The Company enters into agreements to finance the purchase of student computers and peripherals provided to students of its schools. Individual leases typically include 3-year payment terms. The Company pledges the assets financed to secure the outstanding leases. Operating Leases The Company enters into agreements for facilities that serve as offices for its headquarters and school operations. Lease terms vary between 1 Discount Rate The present value of the lease payments is calculated using either the rate implicit in the lease, or the lessee’s incremental borrowing rate, over the lease term. For the majority of the Company’s finance and operating leases, the stated rate is not defined within the lease terms. Therefore, the Company uses its incremental borrowing rate as the discount rate. The incremental borrowing rate is defined as the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment and is calculated using comparative credit ratings. Policy Elections Short-term Leases The Company has elected as an on-going accounting policy election not to record a right-of-use asset or lease liability on its short-term facility leases of 12 months or less, and will expense its lease payments on a straight-line basis over the lease term. The accounting policy election is made by class of underlying asset to which the right of use relates. The Company has elected to apply the accounting policy election only to operating leases. Goodwill and Intangible Assets The Company records as goodwill the excess of the purchase price over the fair value of the identifiable net assets acquired. Finite-lived intangible assets acquired in business combinations subject to amortization are recorded at their fair value. Finite-lived intangible assets include trade names, acquired customers and distributors, developed technology and non-compete agreements. Such intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense for the years ended June 30, 2024, 2023 and 2022 was $12.9 million, $15.2 million and $13.0 million, respectively, and is included within selling, general, and administrative expenses in the consolidated statements of operations. Future amortization of intangible assets is expected to be $9.9 million, $8.7 million, $7.1 million, $5.3 million and $4.5 million in the fiscal years ending June 30, 2025 through June 30, 2029, respectively and $24.6 million thereafter. The Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between fair value and the carrying value of the asset. The Company has one reporting unit. The process for testing goodwill and intangible assets with indefinite lives for impairment is performed annually, as well as when an event triggering impairment may have occurred. Companies are also allowed to qualitatively assess goodwill impairment through a screening process which would permit companies to forgo the quantitative impairment test as part of their annual goodwill impairment process. The Company performs its annual assessment on May 31 st th During the years ended June 30, 2024, 2023 and 2022, there were no events or changes in circumstances that would indicate that the carrying amount of the goodwill was impaired. The following table represents the balance of the Company’s goodwill for the years ended June 30, 2024, 2023 and 2022: ($ in millions) Amount Goodwill Balance as of June 30, 2022 $ 241.0 Acquisition of Tallo Assets 5.7 Balance as of June 30, 2023 $ 246.7 — Balance as of June 30, 2024 $ 246.7 |
Property and Equipment and Capi
Property and Equipment and Capitalized Software and Curriculum | 12 Months Ended |
Jun. 30, 2024 | |
Property and Equipment and Capitalized Software and Curriculum | |
Property and Equipment and Capitalized Software and Curriculum | 4. Property and Equipment and Capitalized Software and Curriculum Property and equipment consists of the following at: June 30, 2024 2023 (In thousands) Student computers $ 128,496 $ 114,064 Computer software 9,923 14,908 Computer hardware 6,698 8,867 Leasehold improvements 10,369 11,590 State testing computers 4,609 4,609 Furniture and fixtures 3,190 3,547 Office equipment 122 213 163,407 157,798 Less accumulated depreciation and amortization (112,551) (105,466) $ 50,856 $ 52,332 The Company recorded depreciation expense related to property and equipment reflected in selling, general, and administrative expenses of $3.8 million, $3.6 million and $3.9 million during the years ended June 30, 2024, 2023 and 2022, respectively. Depreciation expense of $32.9 million, $42.3 million and $37.6 million related to computers provided to students is reflected in instructional costs and services during the years ended June 30, 2024, 2023 and 2022, respectively. The Company incurs maintenance and repair expenses, which are expensed as incurred, and are generally recorded in selling, general, and administrative expenses. Capitalized software costs consist of the following at: June 30, 2024 2023 (In thousands) Capitalized software $ 330,054 $ 318,965 Less accumulated depreciation and amortization (248,102) (235,500) $ 81,952 $ 83,465 The Company recorded amortization expense of $34.4 million, $27.0 million and $22.9 million related to capitalized software reflected in instructional costs and services and $7.9 million, $5.6 million and $5.4 million reflected in selling, general, and administrative expenses during the years ended June 30, 2024, 2023 and 2022, respectively. Capitalized curriculum development costs consist of the following at: June 30, 2024 2023 (In thousands) Capitalized curriculum development costs $ 181,353 $ 183,597 Less accumulated depreciation and amortization (128,121) (132,810) $ 53,232 $ 50,787 The Company recorded amortization expense of $17.7 million, $16.7 million and $15.1 million related to capitalized curriculum development cost reflected in instructional costs and services during the years ended June 30, 2024, 2023 and 2022, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2024 | |
Income Taxes | |
Income Taxes | 5. Income Taxes The provision for income taxes is based on earnings reported in the consolidated financial statements. A deferred income tax asset or liability is determined by applying currently enacted tax laws and rates to the expected reversal of the cumulative temporary differences between the carrying value of assets and liabilities for financial statement and income tax purposes. Deferred income tax expense or benefit is measured by the change in the deferred income tax asset or liability during the year. Deferred tax assets and liabilities result primarily from temporary differences in book versus tax basis accounting. Deferred tax assets and liabilities consist of the following: June 30, 2024 2023 (In thousands) Deferred tax assets Net operating loss carryforward $ 15,553 $ 17,628 Reserves 9,031 7,850 Accrued expenses 13,290 10,868 Stock compensation expense 8,162 4,548 Other assets 2,180 3,212 Convertible debt 5,980 8,632 Deferred revenue 456 680 Lease liability 13,879 17,900 Total deferred tax assets 68,531 71,318 Deferred tax liabilities Capitalized curriculum development (9,466) (9,038) Capitalized software and website development costs (4,340) (2,987) Property and equipment (9,401) (8,438) Right-of-use assets (13,052) (16,837) Returned materials (2,858) (2,980) Purchased intangibles (14,827) (15,471) Total deferred tax liabilities (53,944) (55,751) Net deferred tax asset before valuation allowance 14,587 15,567 Valuation allowance (7,387) (6,791) Net deferred tax asset $ 7,200 $ 8,776 Reported as: Long-term deferred tax assets $ 7,200 $ 8,776 The Company maintained a valuation allowance on net noncurrent deferred tax assets of $7.4 million and $6.8 million as of June 30, 2024 and 2023, respectively, predominantly related to foreign and state income tax net operating losses ("NOL"). At June 30, 2024, the Company had approximately $33.6 million of available federal NOL carryforwards solely related to the acquisition of Galvanize in January 2020. The available federal NOL carryforwards were generated after 2017 and have an indefinite carryforward period due to the Tax Cuts and Jobs Act (the “Tax Act”). Section 382 of the Internal Revenue Code limits the utilization of NOL carryforwards following a change of control. The Company has performed an analysis of the Section 382 ownership changes and have determined that it will be able to fully utilize its available NOLs subject to the Section 382 limitation. At June 30, 2024, the Company had tax effected state NOL carryforwards of $1.1 million, net of valuation allowances, and will expire on various dates. The components of the income before income taxes for the years ended June 30, 2024, 2023 and 2022 were as follows: Years Ended June 30, 2024 2023 2022 (In thousands) Domestic $ 262,802 $ 161,270 $ 131,967 Foreign 5,863 10,943 15,251 Total income before income taxes $ 268,665 $ 172,213 $ 147,218 The components of the income tax expense (benefit) for the years ended June 30, 2024, 2023 and 2022 were as follows: Years Ended June 30, 2024 2023 2022 (In thousands) Current: Federal $ 52,678 $ 41,360 $ 27,969 State 7,660 12,032 7,550 Foreign 1,254 2,327 3,379 Total current 61,592 55,719 38,898 Deferred: Federal (667) (9,033) 1,743 State 3,557 (1,340) (553) Total deferred 2,890 (10,373) 1,190 Total income tax expense $ 64,482 $ 45,346 $ 40,088 The provision for income taxes can be reconciled to the income tax that would result from applying the statutory rate to the net income before income taxes as follows: Years Ended June 30, 2024 2023 2022 U.S. federal tax at statutory rates 21.0 % 21.0 % 21.0 % Permanent items - - 0.4 Lobbying 0.1 0.1 0.1 Non-deductible compensation 0.8 1.6 9.3 State taxes, net of federal benefit 3.2 4.4 3.5 Research and development tax credits (1.5) (1.4) (0.8) Change in valuation allowance - (0.4) 0.8 Effects of foreign operations 0.1 0.9 0.3 Reserve for unrecognized tax benefits 0.5 0.9 0.5 Other 0.1 (0.5) (1.2) Stock-based compensation (0.3) (0.3) (6.7) Provision for income taxes 24.0 % 26.3 % 27.2 % Tax Uncertainties The Company follows the provisions of ASC 740, Income Taxes (“ASC 740”) which applies to all tax positions related to income taxes. ASC 740 provides a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on a tax return. ASC 740 clarifies accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. If the probability for sustaining a tax position is greater than 50%, then the tax position is warranted and recognition should be at the highest amount which would be expected to be realized upon ultimate settlement related to unrecognized tax benefits. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As of June 30, 2024, 2023 and 2022, the Company had $0.4 million, $0.2 million and $0.1 million in accrued interest and penalties, respectively. The unrecognized tax benefits for the years ended June 30, 2024, 2023 and 2022 were as follows: Years Ended June 30, 2024 2023 2022 (In thousands) Balance at beginning of the year $ 3,156 $ 1,729 $ 1,057 Additions for prior year tax positions 591 568 364 Additions for current year tax positions 1,205 1,106 482 Reductions for prior year tax positions (666) (247) (173) Balance at end of the year $ 4,286 $ 3,156 $ 1,729 If recognized, all of the $4.3 million balance of unrecognized tax benefits as of June 30, 2024 would affect the effective tax rate. The Company does not anticipate a significant increase or decrease in unrecognized tax benefits in the next twelve months. The Company remains subject to audit by the Internal Revenue Service for federal tax purposes for tax years after June 30, 2020. Certain state and foreign tax jurisdictions are also either currently under audit or remain open under the statute of limitations for the tax years after June 30, 2018. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law. The Company has evaluated the business provisions in the CARES Act and adopted the deferral of the employer portion of the social security payroll tax (6.2%) outlined within. The deferral was effective from the enactment date through December 31, 2020. The deferred amount of $14.1 million was paid in two installments, $7.05 million of the deferred amount was paid in December 2021 and the remaining $7.05 million was paid in December 2022. |
Finance and Operating Leases
Finance and Operating Leases | 12 Months Ended |
Jun. 30, 2024 | |
Finance and Operating Leases | |
Finance and Operating Leases | 6. Finance and Operating Leases Finance Leases The Company is a lessee under finance leases for student computers and peripherals under agreements with Banc of America Leasing & Capital, LLC (“BALC”) and CSI Leasing, Inc. (“CSI Leasing”). As of June 30, 2024 and 2023, the finance lease liability was $55.6 million and $56.9 million, respectively, with lease interest rates ranging from 2.10% to 6.72%. As of June 30, 2024 and 2023, the balance of the associated right-of-use assets was $39.8 million and $36.3 million, respectively. The right-of-use asset is recorded within property and equipment, net on the consolidated balance sheets. Lease amortization expense associated with the Company’s finance leases is recorded within instructional costs and services on the consolidated statements of operations. The Company entered into an agreement with BALC in April 2020 for $25.0 million (increased to $41.0 million in July 2020) to provide financing for its leases through March 2021 at varying rates. The Company entered into additional agreements during fiscal year 2021 to provide financing of $54.0 million for its student computers and peripherals leases through October 2022 at varying rates. Individual leases with BALC include 36-month The Company entered into an agreement with CSI Leasing in August 2022 to provide financing for its leases. Individual leases under the agreement with CSI Leasing include 36-month The following is a summary, as of June 30, 2024 and June 30, 2023, respectively, of the present value of the net minimum lease payments under the Company’s finance leases: June 30, 2024 2023 (in thousands) 2024 $ — $ 37,056 2025 31,655 16,691 2026 19,880 5,457 2027 7,691 60 2028 82 — Total minimum payments 59,308 59,264 Less: imputed interest (3,710) (2,365) Finance lease liability 55,598 56,899 Less: current portion of finance lease liability (29,146) (35,621) Long-term finance lease liability $ 26,452 $ 21,278 Operating Leases The Company is a lessee under operating leases for various facilities to support the Company’s operations. As of June 30, 2024 and 2023, the operating lease liability was $57.9 million and $73.9 million, respectively. As of June 30, 2024 and 2023 the balance of the associated right-of-use assets was $54.5 million and $69.5 million, respectively. Lease expense associated with the Company’s operating leases is recorded within both instructional costs and services and selling, general, and administrative expenses on the consolidated statements of operations. Individual operating leases range in terms of 1 to 9 years and expire on various dates through fiscal year 2034 and the minimum lease payments are discounted using the Company’s incremental borrowing rate. The following is a summary as of June 30, 2024 and June 30, 2023, respectively, of the present value of the minimum lease payments under the Company’s operating leases: June 30, 2024 2023 (in thousands) 2024 $ — $ 16,341 2025 14,263 15,668 2026 12,361 12,290 2027 8,705 8,753 2028 7,713 7,727 2029 7,599 — Thereafter 12,381 19,975 Total minimum payments 63,022 80,754 Less: imputed interest (5,082) (6,880) Operating lease liability 57,940 73,874 Less: current portion of operating lease liability (12,748) (14,449) Long-term operating lease liability $ 45,192 $ 59,425 June 30, 2024 2023 (in thousands) 2024 $ — $ 836 2025 455 455 2026 139 139 Total sublease income $ 594 $ 1,430 Years Ended June 30, 2024 2023 2022 (in thousands) Lease cost Finance lease cost: Amortization of right-of-use assets $ 31,099 $ 39,312 $ 34,719 Interest on lease liabilities 2,639 2,080 1,769 Instructional costs and services: Operating lease cost 9,605 12,028 15,718 Short-term lease cost 56 103 67 Sublease income (328) (1,081) (955) Selling, general, and administrative expenses: Operating lease cost 6,019 4,616 6,253 Short-term lease cost 150 259 125 Sublease income (491) (406) (367) Total lease cost $ 48,749 $ 56,911 $ 57,329 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (14,990) $ (12,243) $ (20,742) Financing cash flows from finance leases (40,919) (42,956) (33,011) Right-of-use assets obtained in exchange for new finance lease liabilities 35,652 30,514 23,232 Right-of-use assets obtained in exchange for new operating lease liabilities 864 1,619 10,589 Weighted-average remaining lease term - finance leases 2.02 yrs. 1.72 yrs. 1.85 yrs. Weighted-average remaining lease term - operating leases 5.66 yrs. 6.10 yrs. 6.54 yrs. Weighted-average discount rate - finance leases 5.62 % 3.86 % 2.47 % Weighted-average discount rate - operating leases 2.92 % 2.81 % 2.75 % |
Debt
Debt | 12 Months Ended |
Jun. 30, 2024 | |
Debt | |
Debt | 7. Debt June 30, 2024 2023 (in thousands) Convertible Senior Notes due 2027 $ 420,000 $ 420,000 Less: unamortized debt issuance costs (5,325) (6,965) Total debt 414,675 413,035 Less: current portion of debt — — Long-term debt $ 414,675 $ 413,035 Convertible Senior Notes due 2027 Company and U.S. Bank National Association, as trustee. The net proceeds from the offering of the Notes were approximately $408.6 million after deducting the underwriting fees and other expenses paid by the Company. The Notes bear interest at a rate of 1.125% per annum, payable semi-annually in arrears on March 1 st st The Company incurred debt issuance costs of $11.4 million which are amortized over the contractual term of the Notes. The Company recorded interest expense related to the amortization of the debt issuance costs of $1.6 million, $1.6 million and $1.6 million respectively, during the years ended June 30, 2024 and 2023 and 2022. Before June 1, 2027, noteholders will have the right to convert their Notes only upon the occurrence of certain events. After June 1, 2027, noteholders may convert their Notes at any time at their election until two days prior to the maturity date. The Company will settle conversions by paying cash up to the outstanding principal amount, and at the Company’s election, will settle the conversion spread by paying or delivering cash or shares of its common stock, or a combination of cash and shares of its common stock. The initial conversion rate is 18.9109 shares of common stock per $1,000 principal amount of Notes, which represents an initial conversion price of approximately $52.88 per share of common stock (lower strike price). The Notes will be redeemable at the Company’s option at any time after September 6, 2024 at a cash redemption price equal to the principal amount of the Notes, plus accrued and unpaid interest, subject to certain stock price hurdles as discussed in the Indenture. In connection with the Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain counterparties. The Capped Call Transactions are expected to cover the aggregate number of shares of the Company’s common stock that initially underlie the Notes, and are expected to reduce potential dilution to the Company’s common stock upon any conversion of Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Notes. The upper strike price of the Capped Call Transactions is $86.174 per share. The cost of the Capped Call Transactions was $60.4 million and was recorded within additional paid-in capital. |
Credit Facility
Credit Facility | 12 Months Ended |
Jun. 30, 2024 | |
Credit Facility | |
Credit Facility | 8. Credit Facility |
Equity Incentive Plan
Equity Incentive Plan | 12 Months Ended |
Jun. 30, 2024 | |
Equity Incentive Plan | |
Equity Incentive Plan | 9. Equity Incentive Plan On December 9, 2022, the Company’s stockholders approved an amendment and restatement of the 2016 Equity Incentive Award Plan (the “amended and restated 2016 Plan”). The amended and restated 2016 Plan reflects an increase in the number of shares of common stock available for issuance by 1,045,000 shares, the removal of certain provisions that were otherwise required for awards to qualify as performance-based compensation under an exception to Section 162(m) of the Internal Revenue Code of 1986, as amended, prior to its repeal, an extension of the term of the amended and restated 2016 Plan to October 7, 2032, an increase to the limit on the number of shares that may be issued upon the exercise of incentive stock options, and a prohibition on the payment of dividends and dividend equivalents on unvested awards. The amended and restated 2016 Plan is designed to attract, retain and motivate employees who make important contributions to the Company by providing such individuals with equity ownership opportunities. Awards granted under the amended and restated 2016 Plan may include stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards. Under the amended and restated 2016 Plan, unissued shares related to forfeited or cancelled awards granted under the amended and restated 2016 Plan or awards granted under the Company’s 2007 Equity Incentive Award Plan (the “Prior Plan”) (to the extent such awards granted under the Prior Plan were outstanding as of December 15, 2016 and were forfeited or cancelled prior to September 19, 2022), will again be available for issuance under the amended and restated 2016 Plan. Notwithstanding the foregoing, shares tendered to pay the exercise price or tax withholding with respect to a stock option, or shares that are not issued in connection with the settlement of a stock appreciation right on exercise thereof, or shares purchased on the open market with the cash proceeds from the exercise of options will not again be available for issuance under the amended and restated 2016 Plan. At June 30, 2024, the remaining aggregate number of shares of the Company’s common stock authorized for future issuance under the amended and restated 2016 Plan was 2,066,665. At June 30, 2024, there were 1,587,359 shares of the Company’s common stock that remain outstanding or nonvested under the amended and restated 2016 Plan and Prior Plan. Compensation expense for all equity-based compensation awards is based on the grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The vesting of performance-based awards is contingent on the achievement of certain performance metrics. Compensation expense is recognized retroactively, through a cumulative catch-up adjustment, when the performance conditions are satisfied or when the Company determines that it is probable that the performance conditions will be satisfied. The amount of compensation expense recognized for a performance-based award is affected by the level of achievement attained. Management has established three levels of attainment: threshold, target, and outperform. Stock-based compensation expense is recorded within selling, general, and administrative expenses on the consolidated statements of operations. Stock Options Each stock option is exercisable pursuant to the vesting schedule set forth in the stock option agreement granting such stock option, generally over four years. No stock option shall be exercisable after the expiration of its option term. The Company has granted stock options under the Prior Plan and the Company has also granted stock options to executive officers under stand-alone agreements outside the Prior Plan. Stock option activity including stand alone agreements during the years ended June 30, 2024, 2023 and 2022 was as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life (Years) Value Outstanding, June 30, 2021 31,450 $ 16.58 0.82 $ 437,037 Granted — — Exercised (29,100) 16.14 Forfeited or canceled (1,000) 31.73 Outstanding, June 30, 2022 1,350 $ 14.77 0.98 $ 35,127 Granted — — Exercised (1,350) 14.77 Forfeited or canceled — — Outstanding, June 30, 2023 — $ — Granted — — Exercised — — Forfeited or canceled — — Outstanding and exercisable, June 30, 2024 — $ — — $ — The aggregate intrinsic value in the table above represents the total pre tax intrinsic value (the difference between the Company’s closing stock price on the last day of the period and the exercise price, multiplied by the number of in the money options) that would have been received by the option holders had all option holders exercised their options at the end of each fiscal year. The total intrinsic value of options exercised during the years ended June 30, 2024, 2023 and 2022 was zero, $0.0 million, and $0.5 million, respectively. As of June 30, 2024, there was no Restricted Stock Awards The Company has approved grants of restricted stock awards (“RSA”) pursuant to the amended and restated 2016 Plan and Prior Plan. Under the amended and restated 2016 Plan and Prior Plan, employees, outside directors and independent contractors are able to participate in the Company’s future performance through the awards of restricted stock. Each RSA vests pursuant to the vesting schedule set forth in the restricted stock agreement granting such RSAs, generally over three years. Restricted stock award activity during the years ended June 30, 2024, 2023 and 2022 was as follows: Weighted Average Grant-Date Shares Fair Value Nonvested, June 30, 2021 1,409,334 $ 30.26 Granted 582,273 35.27 Vested (699,346) 28.62 Canceled (160,795) 34.33 Nonvested, June 30, 2022 1,131,466 $ 33.27 Granted 595,818 37.90 Vested (774,917) 32.50 Canceled (137,134) 36.08 Nonvested, June 30, 2023 815,233 $ 36.91 Granted 507,443 43.43 Vested (437,724) 36.36 Canceled (153,728) 37.37 Nonvested, June 30, 2024 731,224 $ 40.60 Performance-Based Restricted Stock Awards (included above) During the year ended June 30, 2024, no new performance-based restricted stock awards were granted, and none remained nonvested as of June 30, 2024. During the year ended June 30, 2024, 27,234 performance-based restricted stock awards vested. Vesting of the performance-based restricted stock awards is contingent on the achievement of certain financial performance goals and service vesting conditions. one two one two Service-Based Restricted Stock Awards (included above) During the year ended June 30, 2024, 507,443 new service-based restricted stock awards were granted and in total, 731,224 remain nonvested at June 30, 2024. During the year ended June 30, 2024, 410,491 service-based restricted stock awards vested. Summary of All Restricted Stock Awards As of June 30, 2024, there was $21.2 million of total unrecognized compensation expense related to nonvested restricted stock awards. The cost is expected to be recognized over a weighted average period of 1.6 years. The fair value of restricted stock awards granted for the years ended June 30, 2024, 2023 and 2022, was $22.0 million, $22.6 million and $20.5 million, respectively. The total fair value of shares vested for the years ended June 30, 2024, 2023 and 2022, was $23.3 million, $29.6 million and $23.5 million, respectively. During the years ended June 30, 2024, 2023 and 2022, the Company recognized $16.0 million, $15.5 million and $18.4 million, respectively, of stock-based compensation expense related to restricted stock awards. Performance Share Units The Company has approved grants of performance share units (“PSUs”) pursuant to the amended and restated 2016 Plan. Each PSU is earned through the achievement of a performance-based metric, combined with the continuation of employee service over a defined period. The level of performance determines the number of PSUs earned, and is generally measured against threshold, target and outperform achievement levels of the award. Each PSU represents the right to receive one share of the Company’s common stock, or at the option of the Company, an equivalent amount of cash, and is classified as an equity or liability award. When the grant is a fixed monetary amount, and the number of shares is not determined until achievement and the value of the Company’s stock on that day, the PSU is a liability-classified award. Each PSU vests pursuant to the vesting schedule found in the respective PSU agreement. In addition to the performance conditions of the PSUs, there is a service vesting condition which is dependent upon continuing service by the grantee as an employee of the Company, unless the grantee is eligible for earlier vesting upon a change in control and qualifying termination, as defined by the PSU agreement. PSUs are generally subject to graduated vesting schedules and stock-based compensation expense is computed by tranche and recognized on a straight-line basis over the tranches’ applicable vesting period based on the expected achievement level. Performance share unit activity (excluding liability-classified awards) during the years ended June 30, 2024, 2023 and 2022 was as follows: Weighted Average Grant-Date Shares Fair Value Nonvested, June 30, 2021 2,878,044 $ 15.26 Granted 346,880 34.90 Vested (1,810,752) 9.95 Canceled (1,058,870) 24.95 Nonvested, June 30, 2022 355,302 $ 32.62 Granted 366,507 33.87 Vested (119,467) 30.48 Canceled (105,473) 28.22 Nonvested, June 30, 2023 496,869 $ 34.99 Granted 375,725 41.85 Vested (22,468) 49.62 Canceled (90,595) 36.94 Nonvested, June 30, 2024 759,531 $ 37.73 Fiscal Year 2024 LTIP During the year ended June 30, 2024, the Company granted 354,090 PSUs at target under a Long Term Fiscal Year 2023 LTIP continuing service by the grantee as an employee of the Company. The fair value of Tranche #2 was determined using a Monte Carlo simulation model and is amortized on a straight-line basis over the vesting period. Tranche #2 is a market-based award, and therefore is not subject to any probability assessment by the Company. The Company is currently amortizing Tranche #1 over the vesting period because it believes that it is probable that the metric will be achieved at outperform. Fiscal Year 2022 LTIP Fiscal Year 2021 Tech Elevator MIP During fiscal year 2021, the Company granted to the executive team of Tech Elevator a time-based award with a value of $4.0 million and a performance-based award with a target value of $4.0 million under a Management Incentive Plan (“MIP”). The time-based award vests equally over three years on the anniversary of the closing date of the acquisition of Tech Elevator which was November 30, 2020. During the second quarter of fiscal year 2022, one one Fiscal Year 2021 LTIP During fiscal year 2021, the Company granted 111,450 PSUs at target under an LTIP which are tied to the achievement of certain individualized financial and non-financial performance targets. These PSUs had a grant date fair value of $2.7 million, or a weighted average grant-date fair value of $24.15 per share. In December 2022, achievement was certified related to two metrics – one at threshold and one at 123% of target. Forty percent, or 4,533 shares vested immediately and an additional sixty percent, or 6,797 shares vested in December 2023. The remaining shares tied to metrics that were not achieved were forfeited. The fiscal year 2021 LTIP is an equity-classified award. Fiscal Year 2021 Career Learning PSUs During fiscal year 2021, the Company granted 366,250 PSUs at target which were tied to the achievement of Career Learning revenue targets for fiscal years 2021 – 2023. These PSUs had a grant date fair value of $16.5 million, or a weighted average grant-date fair value of $45.05 per share. The vesting is as follows: ● 77,690 PSUs relate to fiscal year 2021 revenues and if achieved, one -third of the award will vest immediately, and the remaining two -thirds will vest annually over two years ; ● 122,080 PSUs relate to fiscal year 2022 revenues and if achieved, two -thirds of the award will vest immediately, and the remaining one -third will vest the following year; and ● 166,480 PSUs relate to fiscal year 2023 revenues and if achieved, the award will vest immediately. The level of performance will determine the number of PSUs earned as measured against threshold, target and outperform achievement levels. In all cases, vesting is dependent upon continuing service by the grantee as an employee of the Company. The fiscal year 2021 Career Learning PSUs are equity-classified awards. In August 2021, the Company determined the performance condition of fiscal year 2021 revenues were not achieved resulting in a forfeiture of those shares. Additionally, in October 2021, the two remaining tranches were forfeited as the grantee of the PSUs separated from the Company. Fiscal Year 2020 Galvanize TRIP During fiscal year 2020, the Company granted to the executive team of Galvanize a target level of $12.3 million under a Transaction Related Incentive Plan (“TRIP”) which is tied to the achievement of certain revenue and EBITDA targets of Galvanize. Seventy percent of the earned award is based on the performance of Galvanize for the calendar year 2021 (“Tranche #1”) and thirty percent of the earned award is based on the performance of Galvanize for the calendar year 2022 (“Tranche #2”), both of which are expected to vest after achievement is certified in January following each of the calendar year ends. The revenue and EBITDA targets are split sixty percent and forty percent, respectively, for both tranches. In all cases, vesting is dependent upon continuing service by the grantee as an employee of the Company. The level of performance will determine the number of PSUs earned as measured against threshold, target and outperform achievement levels. In January 2022, the Company determined that the metrics for calendar year 2021 were not met and Tranche #1 was forfeited. In January 2023, the Company determined that the metrics for calendar year 2022 were not met and Tranche #2 was also forfeited. The TRIP was a liability-classified award. Fiscal Year 2019 LTIP During fiscal year 2019, the Company granted 263,936 PSUs at target under an LTIP which are tied to certain career learning revenue targets and enrollment levels, as well as students’ academic progress. These PSUs had a grant date fair value of $7.9 million, or a weighted average grant-date fair value of $30.05 per share. During fiscal year 2020, the Company granted an additional 34,030 PSUs at target with a grant date fair value of $0.8 million, or $23.51 per share. Forty-five percent of the earned award is based on students’ academic progress (“Tranche #1”) and twenty-five percent of the earned award is based on certain enrollment levels (“Tranche #2”). In October 2021, Tranche #2 achievement was certified at approximately 193% of target resulting in the vesting of 115,223 shares, while Tranche #1 was not achieved resulting in 107,397 forfeited shares. The remaining thirty percent of the earned award is based on certain revenue targets (“Tranche #3”). In August 2022, Tranche #3 achievement was certified at 200% of target resulting in the vesting of 77,048 shares. Fiscal Year 2019 SPP During fiscal year 2019, the Company adopted a new long-term shareholder performance plan (“2019 SPP”) that provides for incentive award opportunities to its key senior executives. The awards were granted in the form of PSUs and will be earned based on the Company’s market capitalization growth over a completed three-year performance period. The 2019 SPP was designed to provide the executives with a percentage of shareholder value growth. No amounts will be earned if total stock price growth over the three-year period is below 25% (7.6% annualized). An amount of 6% of total value growth will be earned based on achieving total stock price growth of 33% (10% annualized) and a maximum of 7.5% of total value growth will be earned if total stock price growth equals or exceeds 95% (25% annualized). During fiscal year 2019, the Company granted 2,108,305 PSUs at a weighted average grant-date fair value of $8.18 per share, based on the highest level of performance. During fiscal year 2020, the Company granted an additional 66,934 PSUs at a weighted average grant-date fair value of $12.56 per share, based on the highest level of performance. The final amount of PSUs was determined (and vesting occurred) based on the 30-day In October 2021, the Company certified achievement of the 2019 SPP based upon the 30-day Summary of All Performance Share Units As of June 30, 2024, there was $21.8 million of total unrecognized compensation expense related to nonvested PSUs that are expected to vest based on the Company’s probability assumptions discussed above. The cost is expected to be recognized over a weighted average period of 1.4 years. During the years ended June 30, 2024, 2023 and 2022 the Company recognized $15.4 million, $4.9 million and $0.1 million, respectively, of stock-based compensation expense related to PSUs. Included in the stock-based compensation expense above, for the years ended June 30, 2024 and 2023 and 2022 is $0.3 million, $1.0 million, and $1.3 million, respectively, related to the Tech Elevator time-based portion of the MIP. The time-based portion of the MIP fully vested during the second quarter of fiscal year 2024 and was settled with the issuance of PSUs. Therefore, the amount recorded in accrued liabilities for future issuances is zero. Deferred Stock Units (“DSUs”) The DSUs vest on the grant-date anniversary and are settled in the form of shares of common stock issued to the holder upon separation from the Company. DSUs are specific only to board members. Deferred stock unit activity during the years ended June 30, 2024, 2023 and 2022 was as follows: Weighted Average Grant-Date Shares Fair Value Nonvested, June 30, 2021 59,354 $ 22.01 Granted 14,769 33.24 Vested (5,006) 23.97 Canceled — — Nonvested, June 30, 2022 69,117 $ 24.27 Granted 30,418 34.43 Vested — — Canceled — — Nonvested, June 30, 2023 99,535 $ 27.38 Granted 13,171 59.43 Vested (16,102) 22.91 Canceled — — Nonvested, June 30, 2024 96,604 $ 32.49 Summary of All Deferred Stock Units As of June 30, 2024, there was $0.3 million of total unrecognized compensation expense related to nonvested DSUs. The cost is expected to be recognized over a weighted average period of 0.4 years. During the years ended June 30, 2024, 2023 and 2022, the Company recognized $0.9 million, $0.7 million and $0.5 million, respectively, of stock-based compensation expense related to DSUs. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies Litigation In the ordinary conduct of the Company’s business, the Company is subject to lawsuits, arbitrations and administrative proceedings from time to time. The Company vigorously defends these claims; however, no assurances can be given as to the outcome of any pending legal proceedings. The Company believes, based on currently available information, that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect on its business, financial condition, liquidity or results of operations. Employment Agreements The Company has entered into employment agreements with certain executive officers that provide for severance payments and, in some cases other benefits, upon certain terminations of employment. All agreements provide for employment on an “at-will” basis. If the employee resigns for “good reason” or is terminated without cause, the employee is entitled to salary continuation, and in some cases benefit continuation, for varying periods depending on the agreement. Off-Balance Sheet Arrangements As of June 30, 2024, the Company provided guarantees of approximately $0.2 million related to lease commitments on the buildings for certain of the Company’s schools. In addition, the Company contractually guarantees that certain schools under the Company’s management will not have annual operating deficits and the Company’s management fees from these schools may be reduced accordingly to cover any school operating deficits. Other than these lease and operating deficit guarantees, the Company did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. |
Severance
Severance | 12 Months Ended |
Jun. 30, 2024 | |
Severance | |
Severance | 11. Severance |
Acquisitions and Investments
Acquisitions and Investments | 12 Months Ended |
Jun. 30, 2024 | |
Acquisitions and Investments. | |
Acquisitions and Investments | 12. Acquisitions and Investments Investment in Tallo, Inc. and Acquisition of Assets In August 2018, the Company made an initial investment of $6.7 million for a 39.5% minority interest in Tallo, Inc. (“Tallo”). In August 2020, the Company invested an additional $2.3 million, which increased its minority interest to 46.1%. These investments in preferred stock, which contain additional rights over common stock and have no readily determinable fair value, were recorded at cost and will be adjusted, as necessary, for impairment. In the event Tallo issues equity at a materially different price than what the Company paid, the Company would also assess changing the carrying value. In conjunction with the Company’s initial investment in August 2018, Tallo also issued a convertible note to the Company for $5.0 million that is being accounted for as an available-for-sale debt security and adjusted to fair value quarterly. The note bears interest at the mid-term Applicable Federal Rate plus 25 bps per annum with a maturity of 48 months. The note is convertible at the Company’s option into 3.67 million Series D Preferred Shares that, combined with the shares resulting from the conversion of the accrued interest, would give the Company an effective ownership of 55% if exercised. In October 2021, the Company agreed to loan Tallo up to $3.0 million. This promissory note bears interest at 5% and has a maturity date of five years. The promissory note does not contain any means of conversion into additional ownership by the Company. During the second and third quarters of fiscal year 2022, the Company funded $3.0 million under the promissory note. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions | |
Related Party Transactions | 13. Related Party Transactions zero zero |
Employee Benefits
Employee Benefits | 12 Months Ended |
Jun. 30, 2024 | |
Employee Benefits | |
Employee Benefits | 14. Employee Benefits The Company maintains a 401(k) salary deferral plan (the “401(k) Plan”) for its employees. Employees who have been employed for at least 30 |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Jun. 30, 2024 | |
Supplemental Disclosure of Cash Flow Information | |
Supplemental Disclosure of Cash Flow Information | 15. Supplemental Disclosure of Cash Flow Information Years Ended June 30, 2024 2023 2022 (In thousands) Cash paid for interest $ 7,521 $ 6,946 $ 6,641 Cash paid for taxes $ 85,228 37,131 $ 35,972 Supplemental disclosure of non-cash financing activities: Right-of-use assets obtained from acquisitions $ — $ 385 $ — Right-of-use assets obtained in exchange for new finance lease liabilities 35,652 30,514 23,232 Supplemental disclosure of non-cash investing activities: Stock-based compensation expense capitalized on software development $ 816 $ 700 $ 374 Stock-based compensation expense capitalized on curriculum development 76 84 88 Non-cash purchase price related to business combinations — 5,861 1,145 Business combinations: Acquired assets $ — $ 1,132 $ 394 Intangible assets — 1,309 2,157 Goodwill — 5,655 600 Assumed liabilities — (385) (58) Deferred revenue — (441) (1,030) |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jun. 30, 2024 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II STRIDE, INC. VALUATION AND QUALIFYING ACCOUNTS Years Ending June 30, 2024, 2023 and 2022 1. ALLOWANCE FOR CREDIT LOSSES Additions Balance at Charged to Deductions from Beginning Cost and (Net Increases to) Balance at of Period Expenses Allowance End of Period June 30, 2024 $ 30,031,273 22,843,961 21,577,267 $ 31,297,967 June 30, 2023 $ 26,993,037 8,047,729 5,009,493 $ 30,031,273 June 30, 2022 $ 21,383,543 8,555,918 2,946,424 $ 26,993,037 2. INVENTORY RESERVES Balance at Charged to Deductions, Beginning Cost and Shrinkage and Balance at of Period Expenses Obsolescence End of Period June 30, 2024 $ 4,145,280 1,778,825 2,867 $ 5,921,239 June 30, 2023 $ 6,457,046 2,392,785 4,704,551 $ 4,145,280 June 30, 2022 $ 5,647,283 880,809 71,046 $ 6,457,046 3. COMPUTER RESERVE (1) Additions Balance at Charged to Deductions, Beginning Cost and Shrinkage and Balance at of Period Expenses Obsolescence End of Period June 30, 2024 $ 1,345,832 1,129,323 $ 688,930 $ 1,786,225 June 30, 2023 $ 2,039,771 332,197 1,026,136 $ 1,345,832 June 30, 2022 $ 2,273,372 135,948 369,549 $ 2,039,771 (1) A reserve account is maintained against potential obsolescence of, and damage beyond economic repair to, computers provided to the Company’s students. The reserve is calculated based upon several factors including historical percentages, the net book value and the remaining useful life. During fiscal years 2024, 2023 and 2022, certain computers were written off against the reserve. 4. INCOME TAX VALUATION ALLOWANCE Additions to Deductions in Balance at Net Deferred Net Deferred Beginning Tax Asset Tax Asset Balance at of Period Allowance Allowance End of Period June 30, 2024 $ 6,790,724 596,455 — $ 7,387,179 June 30, 2023 $ 6,677,352 113,372 — $ 6,790,724 June 30, 2022 $ 5,047,078 1,630,274 — $ 6,677,352 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 204,183 | $ 126,867 | $ 107,130 |
Insider Trading Arrangements
Insider Trading Arrangements - Mr. Rhyu | 3 Months Ended |
Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On May 23, 2024, Mr. Rhyu, the Company’s Chief Executive Officer and director, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act for the sale of up to 28,870 shares of the Company’s common stock until June 30, 2025, for a duration of 404 days. Other than as noted above for Mr. Rhyu, during the three months ended June 30, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K. |
Name | Mr. Rhyu |
Title | Chief Executive Officer and director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 23, 2024 |
Arrangement Duration | 404 days |
Aggregate Available | 28,870 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies | |
Recent Accounting Pronouncements | Accounting Standards Adopted On July 1, 2021, the Company early adopted Accounting Standards Update (“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) (“ASU 2020-06”) which, among other things, simplifies the accounting for convertible instruments by eliminating the requirement to separate conversion features from the host contract. Consequently, a convertible debt instrument is accounted for as a single liability measured at its amortized cost and interest expense will be recognized at the coupon rate. The adoption resulted in the elimination of the debt discount (and related deferred tax liability) that had been recorded within equity. The net impact of the adjustments was recorded to the opening balance of retained earnings, as presented in the statement of stockholders’ equity. The impacts of adoption were the following: (1) increase of $110.6 million to long-term debt, (2) decrease of $89.5 million to additional paid-in capital, (3) decrease of $29.3 million to deferred tax liability, and (4) increase to retained earnings of $8.2 million. Accounting Standards Not Yet Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020 04”) which provides relief to companies that will be impacted by the cessation of reference rate reform, e.g. LIBOR, that was tentatively planned for the end of fiscal year 2023. The ASU permitted an entity to consider contract modifications due to reference rate reform to be an event that did not require contract remeasurement. This ASU was applicable from March 12, 2020 through December 31, 2022 and adoption was permitted at any time during the period on a prospective basis. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the provisions of Topic 848 to December 31, 2024. The Company’s senior secured revolving credit facility includes the use of alternate rates when LIBOR is not available. The Company does not expect the change from LIBOR to an alternate rate will have a material impact to the consolidated financial statements and, to the extent it enters into modifications of agreements that are impacted by the LIBOR phase-out, the Company will apply such guidance to those contract modifications. In November 2023, the FASB issued ASU 2023-07, Segment Reporting In December 2023, the FASB issued ASU 2023-09, Income Taxes Improvements to Income Tax Disclosures |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to the allowance for credit losses, inventory reserves, amortization periods, the allocation of purchase price to the fair value of net assets and liabilities acquired in business combinations, fair values used in asset impairment evaluations, valuation of long-lived assets, accrual for incurred but not reported (“IBNR”) claims, contingencies, income taxes, fair value of contingent consideration and stock-based compensation expense. The Company bases its estimates on historical experience and various assumptions that it believes are reasonable under the circumstances. The results of the analysis form the basis for making assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services using the following steps: ● identify the contract, or contracts, with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to the performance obligations in the contract; and ● recognize revenue when, or as, the Company satisfies a performance obligation. Revenues related to the products and services that the Company provides to students in kindergarten through twelfth grade or adult learners are considered to be General Education or Career Learning based on the school or adult program in which the student is enrolled. General Education products and services are focused on core subjects, including math, English, science and history, for kindergarten through twelfth grade students to help build a common foundation of knowledge. Career Learning products and services are focused on developing skills to enter and succeed in careers in high-growth, in-demand industries—including information technology, healthcare and general business, for students in middle school through high school and adult learners. The majority of the Company’s contracts are with the following types of customers: ● a virtual or blended school whereby the amount of revenue is primarily determined by funding the school receives; ● a school or individual who licenses certain curriculum on a subscription or course-by-course basis; or ● an enterprise who contracts with the Company to provide job training. Funding-based Contracts The Company provides an integrated package of systems, services, products, and professional expertise that is administered together to support a virtual or blended public school. Contractual agreements generally span multiple years with performance obligations being isolated to annual periods which generally coincide with the Company’s fiscal year. Customers of these programs can obtain administrative support, information technology, academic support services, online curriculum, learning systems platforms and instructional services under the terms of a negotiated service agreement. The schools receive funding on a per student basis from the state in which the public school or school district is located. Shipments of materials for schools that occur in the fourth fiscal quarter and for the upcoming school year are recorded in deferred revenue. The Company generates revenues under contracts with virtual and blended public schools and include the following components, where required: ● providing each of a school’s students with access to the Company’s online school and lessons; ● offline learning kits, which include books and materials to supplement the online lessons; ● the use of a personal computer and associated reclamation services; ● internet access and technology support services; ● instruction by a state-certified teacher; and ● management and technology services necessary to support a virtual or blended school. In certain contracts, revenues are determined directly by per enrollment funding. To determine the pro rata amount of revenue to recognize in a fiscal quarter, the Company estimates the total expected funds each school will receive in a particular school year. Total funds for a school are primarily a function of the number of students enrolled in the school and established per enrollment funding levels, which are generally published on an annual basis by the state or school district. The Company reviews its estimates of funding periodically, and updates as necessary, by adjusting its year-to-date earned revenues to be proportional to the total expected revenues to be earned during the fiscal year. Actual school funding may vary from these estimates and the impact of these differences could impact the Company’s results of operations. Since the end of the school year coincides with the end of the Company’s fiscal year, annual revenues are generally based on actual school funding and actual costs incurred (including costs for the Company’s services to the schools plus other costs the schools may incur). The Company’s reported results are subject to annual school district financial audits, which incorporate enrollment counts, funding and other routine financial audit considerations. The results of these audits are incorporated into the Company’s monthly funding estimates for the current and prior periods. Historically, aggregate funding estimates have differed from actual reimbursements, generally in the range of 2% of annual revenue or less, which may vary from year to year. For the years ended June 30, 2023, 2022 and 2021, the Company’s aggregate funding estimates differed from actual reimbursements impacting total reported revenue by approximately 2.8%, 1.6%, and 1.4%, respectively. Each state and/or school district has variations in the school funding formulas and methodologies that it uses to estimate funding for revenue recognition at its respective schools. As the Company estimates funding for each school, it takes into account the state definition for count dates on which reported enrollment numbers will be used for per pupil funding. The parameters the Company considers in estimating funding for revenue recognition purposes include school district count definitions, withdrawal rates, new registrations, average daily attendance, special needs enrollment, academic progress, historical completion, student location, funding caps and other state specified categorical program funding. Under the contracts where the Company provides products and services to schools, the Company is responsible for substantially all of the expenses incurred by the school and has generally agreed to absorb any operating losses of the schools in a given school year. These school operating losses represent the excess of costs incurred over revenues earned by the virtual or blended public school (the school’s expected funding), as reflected in its respective financial statements, including Company charges to the schools. To the extent a school does not receive sufficient funding for each student enrolled in the school, the school would still incur costs associated with serving the unfunded enrollment. If losses due to unfunded enrollments result in a net operating loss for the year that loss is reflected as a reduction in the revenues and net receivables that the Company collects from the school. A school net operating loss in one year does not necessarily mean the Company anticipates losing money on the entire contract with the school. However, a school’s net operating loss may reduce the Company’s ability to collect its management fees in full and recognized revenues are constrained to reflect the expected cash collections from such schools. The Company records the school’s estimated net operating loss against revenues based upon the percentage of actual revenues in the period to total estimated revenues for the fiscal year. Actual school net operating losses may vary from these estimates or revisions, and the impact of these differences could have a material impact on results of operations. For the years ended June 30, 2024, 2023 and 2022, the Company’s revenues included a reduction for net school operating losses at the schools of $17.0 million, $23.8 million, and $36.3 million, respectively. Because the Company has agreed to absorb any operating losses of the schools, the Company records the expenses incurred by the school as both revenue and expenses in the consolidated statements of operations. Amounts recorded as revenues and expenses for the years ended June 30, 2024, 2023 and 2022, were $576.4 million, $503.2 million and $460.5 million, respectively. Subscription-based Contracts The Company provides certain online curriculum and services to schools and school districts under subscription agreements. Revenues from the licensing of curriculum under subscription arrangements are recognized on a ratable basis over the subscription period. Revenues from professional consulting, training and support services are deferred and recognized ratably over the service period. In addition, the Company contracts with individual customers who have access for one Enterprise Contracts The Company provides job training over a specified contract period to enterprises. Each of these contracts are considered to be one performance obligation. The Company recognizes these revenues based on the number of students trained during the term of the contract based on the defined contract price. Disaggregated Revenues The revenue recognition related to the types of contracts discussed above can span both of the Company’s lines of revenue as shown below. For example, a funding-based contract may include both General Education and Career Learning students. In total, there is one performance obligation and revenue is recognized over the Company’s fiscal year. The revenue is then disaggregated between General Education and Career Learning based on the Company’s estimated full-year enrollment totals of each category. During the years ended June 30, 2024, 2023 and 2022, approximately 93%, 90%, and 89%, respectively, of the Company’s General Education revenues, and 100%, 99% and 99%, respectively, of the Company’s Middle – High School Career Learning revenues, were from funding-based contracts. The following table presents the Company’s revenues disaggregated based on its two lines of revenue for the years ended June 30, 2024, 2023 and 2022: Years Ended June 30, 2024 2023 2022 (In thousands) General Education $ 1,289,193 $ 1,131,391 $ 1,273,783 Career Learning Middle - High School 651,191 586,770 321,416 Adult 99,685 119,197 91,467 Total Career Learning 750,876 705,967 412,883 Total Revenues $ 2,040,069 $ 1,837,358 $ 1,686,666 Concentration of Customers During the years ended June 30, 2024, 2023 and 2022, the Company had no contracts that represented greater than 10% of total revenues. Contract Balances The timing of revenue recognition, invoicing, and cash collection results in accounts receivable, unbilled receivables (a contract asset) and deferred revenue (a contract liability) in the consolidated balance sheets. Accounts receivable are recorded when there is an executed customer contract and the customer is billed. An allowance is recorded to reflect expected losses at the time the receivable is recorded. The collectability of outstanding receivables is evaluated regularly by the Company to determine if additional allowances are needed. Unbilled receivables are created when revenue is earned prior to the customer being billed. Deferred revenue is recorded when customers are billed or cash is collected in advance of services being provided. The opening and closing balance of the Company’s accounts receivable, unbilled receivables and deferred revenue are as follows: June 30, 2024 2023 2022 (In thousands) Accounts receivable $ 472,754 $ 463,722 $ 418,558 Unbilled receivables (included in accounts receivable) 19,499 20,647 19,702 Deferred revenue 35,742 76,159 53,630 Deferred revenue, long-term (included in other long-term liabilities) 1,097 2,061 3,099 The difference between the opening and closing balance of the accounts receivable and unbilled receivables relates to the timing of the Company’s billing in relation to month end and contractual agreements. The difference between the opening and closing balance of the deferred revenue relates to the timing difference between billings to customers and the service periods under the contract, as well as changes in the estimates of variable consideration. Typically, each of these balances are at their highest during the first quarter of the fiscal year and lowest at the end of the fiscal year. The amount of revenue recognized during the years ended June 30, 2024, 2023 and 2022, that was included in the previous July 1 st Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For the majority of its contracts, the Company’s performance obligations are satisfied over time, as the Company delivers, and the customer receives the services, over the service period of the contract. The Company’s payment terms are generally net 30 or net 45, but can vary depending on the customer or when the school receives its funding from the state. Significant Judgments The Company has determined that the time elapsed method is the most appropriate measure of progress towards the satisfaction of the performance obligation. Generally, the Company delivers the integrated products and services package over the course of the Company’s fiscal year. This package includes enrollment, marketing, teacher training, etc. in addition to the core curriculum and instruction. All of these activities are necessary and contribute to the overall education of its students, which occurs evenly throughout the year. Accordingly, the Company recognizes revenue on a straight-line basis. and the amount of full-year school revenues and operating expenses to determine the amount of revenue the Company will recognize. Enrollment and state funding rates are key inputs to this estimate. The estimates are adjusted monthly, and a cumulative catch-up adjustment is recorded to revenue as necessary to reflect the total revenues earned to date to be proportional to the total revenues to be earned in the fiscal year. The Company builds in known constraints (i.e., enrollment, funding, net operating losses, etc.) into the estimate of the variable consideration to record the most probable amount. Sales Taxes Sales tax collected from customers is excluded from revenues. Collected but unremitted sales tax is included as part of accrued liabilities in the consolidated balance sheets. Revenues do not include sales tax as the Company considers itself a pass-through conduit for collecting and remitting sales tax. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are expensed when incurred and are classified as instructional costs and services in the consolidated statements of operations. Shipping and handling charges invoiced to a customer are included in revenues. |
Research and Developments Costs | Research and Development Costs All research and development costs, including patent application costs, are expensed as incurred. Research and development costs totaled $16.7 million, $15.5 million and $7.5 million for the years ended June 30, 2024, 2023 and 2022, respectively, and are included within selling, general and administrative expenses in the consolidated statements of operations. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents generally consist of cash on hand and cash held in money market and demand deposit accounts. The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company periodically has cash balances which exceed federally insured limits. |
Investments in Marketable Securities | Investments in Marketable Securities The Company’s marketable securities generally consist of bonds and other securities which are classified as held-to-maturity. The securities with maturities between three months and one year are classified as short-term and are included in marketable securities on the consolidated balance sheets. The securities with maturities greater than one year are classified as long-term and are included in deposits and other assets on the consolidated balance sheets. Held-to-maturity securities are recorded at their amortized cost. The Company recorded interest income of $25.6 million, $13.6 million and $0.4 million for the years ended June 30, 2024, 2023 and 2022, respectively. This activity is recorded within other income (expense) within the consolidated statements of operations. The Company reviews the held-to-maturity debt securities for declines in fair value below the amortized cost basis under the credit loss model of Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments – Credit Losses As of June 30, 2024, the Company’s marketable securities consisted of investments in corporate bonds, U.S. treasury notes and commercial paper. The short-term and long-term portions were $191.7 million and $21.9 million, respectively. The maturities of the Company’s long-term marketable debt securities range from one two The following table summarizes the amortized cost, net carrying amount, and fair value disaggregated by class of instrument (in thousands). Allowance for Net Carrying Gross Unrealized Amortized Cost Credit Losses Amount Gains (Losses) Fair Value Corporate Bonds $ 45,752 $ - $ 45,752 $ (95) $ 45,657 U.S. Treasury Notes 46,760 - 46,760 (71) 46,689 Commercial Paper 121,077 - 121,077 2 121,079 Total $ 213,589 $ - $ 213,589 $ (164) $ 213,425 one two Allowance for Net Carrying Gross Unrealized Amortized Cost Credit Losses Amount Gains (Losses) Fair Value Corporate Bonds $ 52,567 $ - $ 52,567 $ (460) $ 52,107 U.S. Treasury Notes 46,156 - 46,156 (228) 45,928 Commercial Paper 35,949 - 35,949 - 35,949 Total $ 134,672 $ - $ 134,672 $ (688) $ 133,984 |
Allowance for Credit Losses | Allowance for Credit Losses The Company maintains an allowance for credit losses primarily for estimated losses resulting from the inability or failure of individual customers to make required payments. The Company maintains an allowance under ASC 326 based on historical losses, changes in payment history, customer-specific information, current economic conditions, and reasonable and supportable forecasts of future economic conditions. The allowance under ASC 326 is updated as additional losses are incurred or information becomes available related to the customer or economic conditions. The Company’s allowance for credit losses increased from $30.0 million as of June 30, 2023 to $31.3 million as of June 30, 2024. The increase of $1.3 million is due primarily to a $22.8 million current year provision, less $21.6 million in amounts written off. The Company’s allowance for credit losses increased from $27.0 million as of June 30, 2022 to $30.0 million as of June 30, 2023. The increase of $3.0 million is comprised of an $8.0 million provision, less $5.0 million of amounts recovered. The Company writes-off accounts receivable based on the age of the receivable and the facts and circumstances surrounding the customer and reasons for non-payment. Actual write-offs might differ from the recorded allowance. |
Inventories | Inventories Inventories consist primarily of textbooks and curriculum materials, a majority of which are supplied to virtual and blended public schools, and utilized directly by students. Inventories represent items that are purchased and held for sale and are recorded at the lower of cost (first-in, first-out method) or net realizable value. The Company classifies its inventory as current or long-term based on the holding period. As of June 30, 2024 and 2023, $12.5 million and $13.2 million, respectively, of inventory, net of reserves, was deemed long-term and included in deposits and other assets on the consolidated balance sheets. The provision for excess and obsolete inventory is established based upon the evaluation of the quantity on hand relative to demand. The excess and obsolete inventory reserve was $5.9 million and $4.1 million at June 30, 2024 and 2023, respectively. |
Other Current Assets | Other Current Assets Other current assets primarily include textbooks, curriculum materials and other supplies which are expected to be returned upon the completion of the school year. Materials not returned are expensed as part of instructional costs and services. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is calculated using the straight-line method over the estimated useful life of the asset (or the lesser of the term of the lease and the estimated useful life of the asset under the finance lease). Amortization of assets capitalized under finance lease arrangements is included in depreciation expense. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the asset. The determination of the lease term is discussed below under “Leases.” Property and equipment are depreciated over the following useful lives: Useful Life Student and state testing computers and printers 3 Computer hardware 3 Computer software 3 Web site development 3 years Office equipment 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of useful life or term of the lease The Company makes an estimate of unreturned student computers and printers based on an analysis of recent trends of returns. The Company recorded accelerated depreciation of $4.0 million, $5.6 million and $3.8 million for the years ended June 30, 2024, 2023 and 2022, respectively, related to unreturned student computers and printers. The Company fully expenses computer peripheral equipment (e.g., keyboards, mouses) upon purchase as recovery has been determined to be uneconomical. These expenses totaled $4.0 million, $3.1 million and $8.6 million for the years ended June 30, 2024, 2023 and 2022, respectively, and are recorded as instructional costs and services. |
Capitalized Software Costs | Capitalized Software Costs The Company develops software for internal use. Software development costs incurred during the application development stage are capitalized. The Company amortizes these costs over the estimated useful life of the software, which is generally three years. Capitalized software development costs are stated at cost less accumulated amortization. Capitalized software additions totaled $40.7 million, $45.0 million and $42.2 million for the years ended June 30, 2024, 2023 and 2022, respectively. There were no material write-downs of capitalized software projects for the years ended June 30, 2024, 2023 and 2022. |
Capitalized Curriculum Development Costs | Capitalized Curriculum Development Costs The Company internally develops curriculum, which is primarily provided as online content and accessed via the Internet. The Company also creates textbooks and other materials that are complementary to online content. The Company capitalizes curriculum development costs incurred during the application development stage, as well as the design and deployment phases of the project. As a result, a significant portion of the Company’s courseware development costs qualify for capitalization due to the concentration of its development efforts on the content of the courseware. Capitalization ends when a course is available for general release to its customers, at which time amortization of the capitalized costs begins. The period of time over which these development costs are amortized is generally five years. Total capitalized curriculum development additions were $18.7 million, $17.2 million and $15.7 million for the years ended June 30, 2024, 2023 and 2022, respectively. These amounts are recorded on the consolidated balance sheets, net of amortization charges. There were no material write-downs of capitalized curriculum development costs for the years ended June 30, 2024, 2023 and 2022. |
Leases | Leases The Company’s principal leasing activities include student computers and peripherals, classified as finance leases, and facilities, classified as operating leases. Leases are classified as operating leases unless they meet any of the criteria below to be classified as a finance lease: ● the lease transfers ownership of the asset at the end of the lease; ● the lease grants an option to purchase the asset which the lessee is expected to exercise; ● the lease term reflects a major part of the asset’s economic life; ● the present value of the lease payments equals or exceeds the fair value of the asset; or ● the asset is specialized with no alternative use to the lessor at the end of the term. Finance Leases The Company enters into agreements to finance the purchase of student computers and peripherals provided to students of its schools. Individual leases typically include 3-year payment terms. The Company pledges the assets financed to secure the outstanding leases. Operating Leases The Company enters into agreements for facilities that serve as offices for its headquarters and school operations. Lease terms vary between 1 Discount Rate The present value of the lease payments is calculated using either the rate implicit in the lease, or the lessee’s incremental borrowing rate, over the lease term. For the majority of the Company’s finance and operating leases, the stated rate is not defined within the lease terms. Therefore, the Company uses its incremental borrowing rate as the discount rate. The incremental borrowing rate is defined as the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment and is calculated using comparative credit ratings. Policy Elections Short-term Leases The Company has elected as an on-going accounting policy election not to record a right-of-use asset or lease liability on its short-term facility leases of 12 months or less, and will expense its lease payments on a straight-line basis over the lease term. The accounting policy election is made by class of underlying asset to which the right of use relates. The Company has elected to apply the accounting policy election only to operating leases. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company records as goodwill the excess of the purchase price over the fair value of the identifiable net assets acquired. Finite-lived intangible assets acquired in business combinations subject to amortization are recorded at their fair value. Finite-lived intangible assets include trade names, acquired customers and distributors, developed technology and non-compete agreements. Such intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense for the years ended June 30, 2024, 2023 and 2022 was $12.9 million, $15.2 million and $13.0 million, respectively, and is included within selling, general, and administrative expenses in the consolidated statements of operations. Future amortization of intangible assets is expected to be $9.9 million, $8.7 million, $7.1 million, $5.3 million and $4.5 million in the fiscal years ending June 30, 2025 through June 30, 2029, respectively and $24.6 million thereafter. The Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between fair value and the carrying value of the asset. The Company has one reporting unit. The process for testing goodwill and intangible assets with indefinite lives for impairment is performed annually, as well as when an event triggering impairment may have occurred. Companies are also allowed to qualitatively assess goodwill impairment through a screening process which would permit companies to forgo the quantitative impairment test as part of their annual goodwill impairment process. The Company performs its annual assessment on May 31 st th During the years ended June 30, 2024, 2023 and 2022, there were no events or changes in circumstances that would indicate that the carrying amount of the goodwill was impaired. The following table represents the balance of the Company’s goodwill for the years ended June 30, 2024, 2023 and 2022: ($ in millions) Amount Goodwill Balance as of June 30, 2022 $ 241.0 Acquisition of Tallo Assets 5.7 Balance as of June 30, 2023 $ 246.7 — Balance as of June 30, 2024 $ 246.7 June 30, 2024 June 30, 2023 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 70.6 $ (23.5) $ 47.1 $ 77.2 $ (23.0) $ 54.2 Customer and distributor relationships 37.1 (31.1) 6.0 38.4 (28.0) 10.4 Developed technology 21.7 (14.8) 6.9 22.0 (12.1) 9.9 Other 1.4 (1.1) 0.3 1.4 (1.1) 0.3 Total $ 130.8 $ (70.5) $ 60.3 $ 139.0 $ (64.2) $ 74.8 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets include property, equipment, right-of-use assets, capitalized curriculum and software developed or obtained for internal use. Management reviews the Company’s recorded long-lived assets for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company determines the extent to which an asset may be impaired based upon its expectation of the asset’s future usability as well as on a reasonable assurance that the future cash flows associated with the asset will be in excess of its carrying amount. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between fair value and the carrying value of the asset. During the years ended June 30, 2024, 2023 and 2022, there were no events or changes in circumstances that may indicate that the carrying amount of the long-lived assets may not be recoverable. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are computed based on the difference between the financial reporting and income tax bases of assets and liabilities using the enacted marginal tax rate. The net deferred tax asset is reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the net deferred tax asset will not be realized. |
Stock-Based Compensation | Stock-Based Compensation The Company estimates the fair value of share-based awards on the date of grant. The fair value of restricted stock awards is based on the closing price of the Company’s common stock on the date of grant. Certain restricted stock awards with a market-based performance component are valued using a Monte Carlo simulation model that considers a variety of factors including, but not limited to, the Company’s common stock price, risk-free rate, and expected stock price volatility over the expected life of awards. The Company recognizes forfeitures of share-based awards as they occur in the period of forfeiture. |
Advertising and Marketing Costs | Advertising and Marketing Costs Advertising and marketing costs consist primarily of internet advertising, online marketing, direct mail, print media and television commercials and are expensed when incurred. Advertising costs totaled $96.5 million, $96.8 million and $86.5 million for the years ended June 30, 2024, 2023 and 2022, respectively, and are included within selling, general, and administrative expenses in the consolidated statements of operations. |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. Measurements are described in a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs used to measure fair value are: Level 1: Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date. Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The carrying values reflected in the consolidated balance sheets for cash and cash equivalents, receivables, and short-term obligations approximate their fair values, as they are largely short-term in nature. The Tallo, Inc. convertible note is discussed in more detail in Note 12, “Acquisitions and Investments.” As of June 30, 2024, the estimated fair value of the long-term debt was $585.8 million. The Company estimated the fair value based on the quoted market prices in an inactive market (Level 2). The long-term debt, comprised of the Company’s convertible senior notes due 2027, is recorded at face value less the unamortized debt issuance costs on its consolidated balance sheet, and is discussed in more detail in Note 7, “Debt.” As of June 30, 2024, the estimated fair value of the Company’s marketable securities was $213.4 million. The Company estimated the fair value based on the quoted market prices in an inactive market (Level 2). The marketable securities are discussed in more detail in Note 3, “Summary of Significant Accounting Policies - Investments in Marketable Securities.” On November 30, 2020, the Company acquired 100% of MedCerts in exchange for $70.0 million and estimated contingent consideration of $10.8 million. During fiscal year 2021 and 2022, the Company recorded an aggregate expense of $0.5 million to adjust its estimate of the fair value of the contingent consideration to $11.3 million. During the fiscal year ended June 30, 2023, the Company paid $7.0 million to settle the contingent consideration and recorded a gain of $4.3 million. The gain is recorded within selling, general, and administrative expenses on the consolidated statements of operations. There were no assets or liabilities measured at fair value on a recurring basis as of June 30, 2024 and 2023. There was no activity related to the Company’s fair value measurements categorized as Level 3 in the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2024. The following table presents activity related to the Company’s fair value measurements categorized as Level 3 in the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2023. Year Ended June 30, 2023 Purchases, Fair Value Issuances, Realized Fair Value Description June 30, 2022 and Settlements Gain June 30, 2023 (In thousands) Contingent consideration associated with acquisitions $ 11,290 $ (7,024) $ (4,266) $ — Convertible note received in acquisition $ 889 $ (889) $ — $ — The following table presents activity related to the Company’s fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2022. Year Ended June 30, 2022 Purchases, Fair Value Issuances, Unrealized Fair Value Description June 30, 2021 and Settlements Losses June 30, 2022 (In thousands) Contingent consideration associated with acquisitions $ 11,082 $ — $ 208 $ 11,290 Convertible note received in acquisition $ 5,006 $ — $ (4,117) $ 889 |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The weighted average number of shares of common stock outstanding includes vested restricted stock awards. Diluted net income (loss) per share (“EPS”) reflects the potential dilution that could occur assuming conversion or exercise of all dilutive unexercised stock options and vesting of all dilutive unvested restricted stock awards. The dilutive effect of stock options and restricted stock awards was determined using the treasury stock method. Under the treasury stock method, the proceeds received from the exercise of stock options and restricted stock awards, the amount of compensation cost for future service not yet recognized by the Company and the amount of tax benefits that would be recorded as income tax expense when the stock options become deductible for income tax purposes are all assumed to be used to repurchase shares of the Company’s common stock. Stock options and restricted stock awards are not included in the computation of diluted net income (loss) per share when they are antidilutive. Common stock outstanding reflected in the Company’s consolidated balance sheets includes restricted stock awards outstanding. The dilutive effect of the Company’s convertible debt is determined using the if-converted method when the Company’s stock is trading above the conversion price. However, based on the structure of the instrument and how it is settled upon conversion, it would produce a similar result as the previously applied treasury stock method. The following schedule presents the calculation of basic and diluted net income (loss) per share: Years Ended June 30, 2024 2023 2022 (In thousands except share and per share data) Basic net income per share computation: Net income attributable to common stockholders $ 204,183 $ 126,867 $ 107,130 Weighted average common shares — basic 42,626,588 42,286,392 41,451,101 Basic net income per share $ 4.79 $ 3.00 $ 2.58 Diluted net income per share computation: Net income attributable to common stockholders $ 204,183 $ 126,867 $ 107,130 Share computation: Weighted average common shares — basic 42,626,588 42,286,392 41,451,101 Effect of dilutive stock options and restricted stock awards 908,853 441,716 990,423 Weighted average common shares — diluted 43,535,441 42,728,108 42,441,524 Diluted net income per share $ 4.69 $ 2.97 $ 2.52 For the years ended June 30, 2024, 2023 and 2022, shares issuable in connection with stock options, restricted stock, and convertible debt of 7,658, 21,854 and 4,939 respectively, were excluded from the diluted income per common share calculation because the effect would have been antidilutive. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies | |
Schedule of disaggregation of revenue | Years Ended June 30, 2024 2023 2022 (In thousands) General Education $ 1,289,193 $ 1,131,391 $ 1,273,783 Career Learning Middle - High School 651,191 586,770 321,416 Adult 99,685 119,197 91,467 Total Career Learning 750,876 705,967 412,883 Total Revenues $ 2,040,069 $ 1,837,358 $ 1,686,666 |
Schedule of accounts receivables, unbilled receivables and deferred revenue | June 30, 2024 2023 2022 (In thousands) Accounts receivable $ 472,754 $ 463,722 $ 418,558 Unbilled receivables (included in accounts receivable) 19,499 20,647 19,702 Deferred revenue 35,742 76,159 53,630 Deferred revenue, long-term (included in other long-term liabilities) 1,097 2,061 3,099 |
Schedule of investments in marketable securities | The following table summarizes the amortized cost, net carrying amount, and fair value disaggregated by class of instrument (in thousands). Allowance for Net Carrying Gross Unrealized Amortized Cost Credit Losses Amount Gains (Losses) Fair Value Corporate Bonds $ 45,752 $ - $ 45,752 $ (95) $ 45,657 U.S. Treasury Notes 46,760 - 46,760 (71) 46,689 Commercial Paper 121,077 - 121,077 2 121,079 Total $ 213,589 $ - $ 213,589 $ (164) $ 213,425 Allowance for Net Carrying Gross Unrealized Amortized Cost Credit Losses Amount Gains (Losses) Fair Value Corporate Bonds $ 52,567 $ - $ 52,567 $ (460) $ 52,107 U.S. Treasury Notes 46,156 - 46,156 (228) 45,928 Commercial Paper 35,949 - 35,949 - 35,949 Total $ 134,672 $ - $ 134,672 $ (688) $ 133,984 |
Schedule of useful lives of property and equipment | Useful Life Student and state testing computers and printers 3 Computer hardware 3 Computer software 3 Web site development 3 years Office equipment 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of useful life or term of the lease |
Schedule of goodwill activity | ($ in millions) Amount Goodwill Balance as of June 30, 2022 $ 241.0 Acquisition of Tallo Assets 5.7 Balance as of June 30, 2023 $ 246.7 — Balance as of June 30, 2024 $ 246.7 |
Schedule of intangible assets | June 30, 2024 June 30, 2023 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 70.6 $ (23.5) $ 47.1 $ 77.2 $ (23.0) $ 54.2 Customer and distributor relationships 37.1 (31.1) 6.0 38.4 (28.0) 10.4 Developed technology 21.7 (14.8) 6.9 22.0 (12.1) 9.9 Other 1.4 (1.1) 0.3 1.4 (1.1) 0.3 Total $ 130.8 $ (70.5) $ 60.3 $ 139.0 $ (64.2) $ 74.8 |
Schedule of activity related to fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis | The following table presents activity related to the Company’s fair value measurements categorized as Level 3 in the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2023. Year Ended June 30, 2023 Purchases, Fair Value Issuances, Realized Fair Value Description June 30, 2022 and Settlements Gain June 30, 2023 (In thousands) Contingent consideration associated with acquisitions $ 11,290 $ (7,024) $ (4,266) $ — Convertible note received in acquisition $ 889 $ (889) $ — $ — The following table presents activity related to the Company’s fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2022. Year Ended June 30, 2022 Purchases, Fair Value Issuances, Unrealized Fair Value Description June 30, 2021 and Settlements Losses June 30, 2022 (In thousands) Contingent consideration associated with acquisitions $ 11,082 $ — $ 208 $ 11,290 Convertible note received in acquisition $ 5,006 $ — $ (4,117) $ 889 |
Schedule of calculation of basic and diluted net income (loss) per share | Years Ended June 30, 2024 2023 2022 (In thousands except share and per share data) Basic net income per share computation: Net income attributable to common stockholders $ 204,183 $ 126,867 $ 107,130 Weighted average common shares — basic 42,626,588 42,286,392 41,451,101 Basic net income per share $ 4.79 $ 3.00 $ 2.58 Diluted net income per share computation: Net income attributable to common stockholders $ 204,183 $ 126,867 $ 107,130 Share computation: Weighted average common shares — basic 42,626,588 42,286,392 41,451,101 Effect of dilutive stock options and restricted stock awards 908,853 441,716 990,423 Weighted average common shares — diluted 43,535,441 42,728,108 42,441,524 Diluted net income per share $ 4.69 $ 2.97 $ 2.52 |
Property and Equipment and Ca_2
Property and Equipment and Capitalized Software and Curriculum (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Property and Equipment and Capitalized Software and Curriculum | |
Schedule of property and equipment | June 30, 2024 2023 (In thousands) Student computers $ 128,496 $ 114,064 Computer software 9,923 14,908 Computer hardware 6,698 8,867 Leasehold improvements 10,369 11,590 State testing computers 4,609 4,609 Furniture and fixtures 3,190 3,547 Office equipment 122 213 163,407 157,798 Less accumulated depreciation and amortization (112,551) (105,466) $ 50,856 $ 52,332 |
Schedule of capitalized software | June 30, 2024 2023 (In thousands) Capitalized software $ 330,054 $ 318,965 Less accumulated depreciation and amortization (248,102) (235,500) $ 81,952 $ 83,465 |
Schedule of capitalized curriculum development costs | June 30, 2024 2023 (In thousands) Capitalized curriculum development costs $ 181,353 $ 183,597 Less accumulated depreciation and amortization (128,121) (132,810) $ 53,232 $ 50,787 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Income Taxes | |
Schedule of deferred tax assets and liabilities | June 30, 2024 2023 (In thousands) Deferred tax assets Net operating loss carryforward $ 15,553 $ 17,628 Reserves 9,031 7,850 Accrued expenses 13,290 10,868 Stock compensation expense 8,162 4,548 Other assets 2,180 3,212 Convertible debt 5,980 8,632 Deferred revenue 456 680 Lease liability 13,879 17,900 Total deferred tax assets 68,531 71,318 Deferred tax liabilities Capitalized curriculum development (9,466) (9,038) Capitalized software and website development costs (4,340) (2,987) Property and equipment (9,401) (8,438) Right-of-use assets (13,052) (16,837) Returned materials (2,858) (2,980) Purchased intangibles (14,827) (15,471) Total deferred tax liabilities (53,944) (55,751) Net deferred tax asset before valuation allowance 14,587 15,567 Valuation allowance (7,387) (6,791) Net deferred tax asset $ 7,200 $ 8,776 Reported as: Long-term deferred tax assets $ 7,200 $ 8,776 |
Schedule of components of income before income taxes | Years Ended June 30, 2024 2023 2022 (In thousands) Domestic $ 262,802 $ 161,270 $ 131,967 Foreign 5,863 10,943 15,251 Total income before income taxes $ 268,665 $ 172,213 $ 147,218 |
Schedule of related components of the income tax expense | Years Ended June 30, 2024 2023 2022 (In thousands) Current: Federal $ 52,678 $ 41,360 $ 27,969 State 7,660 12,032 7,550 Foreign 1,254 2,327 3,379 Total current 61,592 55,719 38,898 Deferred: Federal (667) (9,033) 1,743 State 3,557 (1,340) (553) Total deferred 2,890 (10,373) 1,190 Total income tax expense $ 64,482 $ 45,346 $ 40,088 |
Schedule of reconciliation of provision for income taxes to the income tax from applying the statutory rate | Years Ended June 30, 2024 2023 2022 U.S. federal tax at statutory rates 21.0 % 21.0 % 21.0 % Permanent items - - 0.4 Lobbying 0.1 0.1 0.1 Non-deductible compensation 0.8 1.6 9.3 State taxes, net of federal benefit 3.2 4.4 3.5 Research and development tax credits (1.5) (1.4) (0.8) Change in valuation allowance - (0.4) 0.8 Effects of foreign operations 0.1 0.9 0.3 Reserve for unrecognized tax benefits 0.5 0.9 0.5 Other 0.1 (0.5) (1.2) Stock-based compensation (0.3) (0.3) (6.7) Provision for income taxes 24.0 % 26.3 % 27.2 % |
Schedule of unrecognized tax benefits | Years Ended June 30, 2024 2023 2022 (In thousands) Balance at beginning of the year $ 3,156 $ 1,729 $ 1,057 Additions for prior year tax positions 591 568 364 Additions for current year tax positions 1,205 1,106 482 Reductions for prior year tax positions (666) (247) (173) Balance at end of the year $ 4,286 $ 3,156 $ 1,729 |
Finance and Operating Leases (T
Finance and Operating Leases (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Finance and Operating Leases | |
Schedule of present value of the minimum lease payments on finance leases | June 30, 2024 2023 (in thousands) 2024 $ — $ 37,056 2025 31,655 16,691 2026 19,880 5,457 2027 7,691 60 2028 82 — Total minimum payments 59,308 59,264 Less: imputed interest (3,710) (2,365) Finance lease liability 55,598 56,899 Less: current portion of finance lease liability (29,146) (35,621) Long-term finance lease liability $ 26,452 $ 21,278 |
Schedule of future minimum lease payments under non-cancelable operating leases | June 30, 2024 2023 (in thousands) 2024 $ — $ 16,341 2025 14,263 15,668 2026 12,361 12,290 2027 8,705 8,753 2028 7,713 7,727 2029 7,599 — Thereafter 12,381 19,975 Total minimum payments 63,022 80,754 Less: imputed interest (5,082) (6,880) Operating lease liability 57,940 73,874 Less: current portion of operating lease liability (12,748) (14,449) Long-term operating lease liability $ 45,192 $ 59,425 |
Schedule of expected sublease income | June 30, 2024 2023 (in thousands) 2024 $ — $ 836 2025 455 455 2026 139 139 Total sublease income $ 594 $ 1,430 |
Schedule of lease cost, weighted-average remaining lease term, weighted-average discount rate | Years Ended June 30, 2024 2023 2022 (in thousands) Lease cost Finance lease cost: Amortization of right-of-use assets $ 31,099 $ 39,312 $ 34,719 Interest on lease liabilities 2,639 2,080 1,769 Instructional costs and services: Operating lease cost 9,605 12,028 15,718 Short-term lease cost 56 103 67 Sublease income (328) (1,081) (955) Selling, general, and administrative expenses: Operating lease cost 6,019 4,616 6,253 Short-term lease cost 150 259 125 Sublease income (491) (406) (367) Total lease cost $ 48,749 $ 56,911 $ 57,329 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (14,990) $ (12,243) $ (20,742) Financing cash flows from finance leases (40,919) (42,956) (33,011) Right-of-use assets obtained in exchange for new finance lease liabilities 35,652 30,514 23,232 Right-of-use assets obtained in exchange for new operating lease liabilities 864 1,619 10,589 Weighted-average remaining lease term - finance leases 2.02 yrs. 1.72 yrs. 1.85 yrs. Weighted-average remaining lease term - operating leases 5.66 yrs. 6.10 yrs. 6.54 yrs. Weighted-average discount rate - finance leases 5.62 % 3.86 % 2.47 % Weighted-average discount rate - operating leases 2.92 % 2.81 % 2.75 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Debt | |
Schedule of components of debt | June 30, 2024 2023 (in thousands) Convertible Senior Notes due 2027 $ 420,000 $ 420,000 Less: unamortized debt issuance costs (5,325) (6,965) Total debt 414,675 413,035 Less: current portion of debt — — Long-term debt $ 414,675 $ 413,035 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Schedule of stock option activity | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life (Years) Value Outstanding, June 30, 2021 31,450 $ 16.58 0.82 $ 437,037 Granted — — Exercised (29,100) 16.14 Forfeited or canceled (1,000) 31.73 Outstanding, June 30, 2022 1,350 $ 14.77 0.98 $ 35,127 Granted — — Exercised (1,350) 14.77 Forfeited or canceled — — Outstanding, June 30, 2023 — $ — Granted — — Exercised — — Forfeited or canceled — — Outstanding and exercisable, June 30, 2024 — $ — — $ — |
Schedule of restricted stock award activity | Weighted Average Grant-Date Shares Fair Value Nonvested, June 30, 2021 1,409,334 $ 30.26 Granted 582,273 35.27 Vested (699,346) 28.62 Canceled (160,795) 34.33 Nonvested, June 30, 2022 1,131,466 $ 33.27 Granted 595,818 37.90 Vested (774,917) 32.50 Canceled (137,134) 36.08 Nonvested, June 30, 2023 815,233 $ 36.91 Granted 507,443 43.43 Vested (437,724) 36.36 Canceled (153,728) 37.37 Nonvested, June 30, 2024 731,224 $ 40.60 |
Schedule of performance share units award activity | Weighted Average Grant-Date Shares Fair Value Nonvested, June 30, 2021 2,878,044 $ 15.26 Granted 346,880 34.90 Vested (1,810,752) 9.95 Canceled (1,058,870) 24.95 Nonvested, June 30, 2022 355,302 $ 32.62 Granted 366,507 33.87 Vested (119,467) 30.48 Canceled (105,473) 28.22 Nonvested, June 30, 2023 496,869 $ 34.99 Granted 375,725 41.85 Vested (22,468) 49.62 Canceled (90,595) 36.94 Nonvested, June 30, 2024 759,531 $ 37.73 |
Deferred Stock Units | |
Schedule of performance share units award activity | Weighted Average Grant-Date Shares Fair Value Nonvested, June 30, 2021 59,354 $ 22.01 Granted 14,769 33.24 Vested (5,006) 23.97 Canceled — — Nonvested, June 30, 2022 69,117 $ 24.27 Granted 30,418 34.43 Vested — — Canceled — — Nonvested, June 30, 2023 99,535 $ 27.38 Granted 13,171 59.43 Vested (16,102) 22.91 Canceled — — Nonvested, June 30, 2024 96,604 $ 32.49 |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Supplemental Disclosure of Cash Flow Information | |
Schedule of supplemental disclosure of cash flow information | Years Ended June 30, 2024 2023 2022 (In thousands) Cash paid for interest $ 7,521 $ 6,946 $ 6,641 Cash paid for taxes $ 85,228 37,131 $ 35,972 Supplemental disclosure of non-cash financing activities: Right-of-use assets obtained from acquisitions $ — $ 385 $ — Right-of-use assets obtained in exchange for new finance lease liabilities 35,652 30,514 23,232 Supplemental disclosure of non-cash investing activities: Stock-based compensation expense capitalized on software development $ 816 $ 700 $ 374 Stock-based compensation expense capitalized on curriculum development 76 84 88 Non-cash purchase price related to business combinations — 5,861 1,145 Business combinations: Acquired assets $ — $ 1,132 $ 394 Intangible assets — 1,309 2,157 Goodwill — 5,655 600 Assumed liabilities — (385) (58) Deferred revenue — (441) (1,030) |
Description of the Business (De
Description of the Business (Details) | Jun. 30, 2024 item |
Description of the Business | |
Number of lines of revenue | 2 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended |
Jun. 30, 2024 segment | |
Basis of Presentation | |
Number of operating segments | 1 |
Number of reportable business segments | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |||||
Revenues | $ 2,040,069 | $ 1,837,358 | $ 1,686,666 | ||
Percentage of impact on total revenue | 2.80% | 1.60% | 1.40% | ||
Estimate of Percentage of Impact on Total Revenue | 2% | ||||
School operating losses included in the entity's revenue | $ 17,000 | $ 23,800 | $ 36,300 | ||
Minimum | |||||
Summary of Significant Accounting Policies | |||||
Duration of contracts providing access to curriculum via the entity's Web site | 1 year | ||||
Maximum | |||||
Summary of Significant Accounting Policies | |||||
Duration of contracts providing access to curriculum via the entity's Web site | 2 years | ||||
Primary Obligor | |||||
Summary of Significant Accounting Policies | |||||
Revenues | $ 576,400 | $ 503,200 | $ 460,500 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Disaggregation of revenue (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 USD ($) item | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Summary of Significant Accounting Policies | |||
Number of lines of business | item | 2 | ||
Total Revenues | $ 2,040,069 | $ 1,837,358 | $ 1,686,666 |
General Education | |||
Summary of Significant Accounting Policies | |||
Percentage of revenues from funding-based contracts | 93% | 90% | 89% |
Total Revenues | $ 1,289,193 | $ 1,131,391 | $ 1,273,783 |
Career Learning | |||
Summary of Significant Accounting Policies | |||
Total Revenues | $ 750,876 | $ 705,967 | $ 412,883 |
Middle - High School | |||
Summary of Significant Accounting Policies | |||
Percentage of revenues from funding-based contracts | 100% | 99% | 99% |
Total Revenues | $ 651,191 | $ 586,770 | $ 321,416 |
Adult | |||
Summary of Significant Accounting Policies | |||
Total Revenues | $ 99,685 | $ 119,197 | $ 91,467 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Concentration of Customers (Details) - contract | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | Customer Concentration Risk | |||
Concentration of revenues | |||
Number of customers with concentration | 0 | 0 | 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts receivables, contract assets and deferred revenue | |||
Accounts receivable | $ 472,754 | $ 463,722 | $ 418,558 |
Unbilled receivables (included in accounts receivable) | 19,499 | 20,647 | 19,702 |
Deferred revenue | 35,742 | 76,159 | 53,630 |
Deferred revenue, long-term (included in other long-term liabilities) | 1,097 | 2,061 | 3,099 |
Revenue recognized that was included in opening deferred revenue balance | 74,400 | 53,100 | 38,900 |
Revenue recognized from performance obligation satisfied in prior periods | $ 51,000 | $ 26,800 | $ 20,800 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Performance Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |||
Minimum payment term | 30 days | ||
Maximum payment term | 45 days | ||
Practical expedient | |||
Unsatisfied performance obligations | true | ||
Unsatisfied performance obligations amount | $ 1.1 | ||
Research and development costs | $ 16.7 | $ 15.5 | $ 7.5 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Marketable securities | |||
Investment income, nonoperating | $ 25,600 | $ 13,600 | $ 400 |
Marketable securities, short-term portion | 191,700 | 111,900 | |
Marketable securities, long-term portion | $ 21,900 | $ 22,800 | |
Marketable Securities, Maturity Date, Start | 1 year | 1 year | |
Marketable Securities, Maturity Date, End | 2 years | 2 years | |
Amortized Cost | $ 213,589 | $ 134,672 | |
Allowance for Credit Losses | 0 | 0 | |
Net Carrying Amount | 213,589 | 134,672 | |
Gross Unrealized Gains (Losses) | (164) | (688) | |
Fair Value | 213,425 | 133,984 | |
Corporate Bonds | |||
Marketable securities | |||
Amortized Cost | 45,752 | 52,567 | |
Net Carrying Amount | 45,752 | 52,567 | |
Gross Unrealized Gains (Losses) | (95) | (460) | |
Fair Value | 45,657 | 52,107 | |
U.S. Treasury Notes | |||
Marketable securities | |||
Amortized Cost | 46,760 | 46,156 | |
Net Carrying Amount | 46,760 | 46,156 | |
Gross Unrealized Gains (Losses) | (71) | (228) | |
Fair Value | 46,689 | 45,928 | |
Commercial Paper | |||
Marketable securities | |||
Amortized Cost | 121,077 | 35,949 | |
Net Carrying Amount | 121,077 | 35,949 | |
Gross Unrealized Gains | 2 | ||
Fair Value | $ 121,079 | $ 35,949 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |||
Allowance for doubtful accounts | $ 31,298 | $ 30,031 | $ 27,000 |
Increase in allowance for doubtful accounts | 1,300 | 3,000 | |
Provision | 22,800 | 8,000 | |
Allowance for credit losses written off | $ 21,600 | $ 5,000 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Summary of Significant Accounting Policies | ||
Inventory deemed long-term and included in deposits and other assets | $ 12.5 | $ 13.2 |
Excess and obsolete inventory reserve | $ 5.9 | $ 4.1 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Property and Equipment and Leases (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property and equipment | |||
Equipment expense | $ 4,000,000 | $ 3,100,000 | $ 8,600,000 |
Capitalized software development costs | 40,653,000 | 44,973,000 | 42,191,000 |
Capitalized software written down | $ 0 | 0 | 0 |
Capitalized Curriculum Development Costs | |||
Estimated useful life of the software | 5 years | ||
Time for Short Term Leases | 12 months | ||
Capitalized curriculum development costs | $ 18,666,000 | 17,239,000 | 15,687,000 |
Capitalized curriculum development costs write down | $ 0 | 0 | 0 |
Minimum | |||
Operating Leases | |||
Operating leases initial term | 1 year | ||
Maximum | |||
Finance Leases | |||
Finance lease term | 3 years | ||
Operating Leases | |||
Operating leases initial term | 9 years | ||
Student and state testing computers and printers | |||
Property and equipment | |||
Accelerated depreciation | $ 4,000,000 | $ 5,600,000 | $ 3,800,000 |
Student and state testing computers and printers | Minimum | |||
Property and equipment | |||
Useful Life | 3 years | ||
Student and state testing computers and printers | Maximum | |||
Property and equipment | |||
Useful Life | 5 years | ||
Computer hardware | Minimum | |||
Property and equipment | |||
Useful Life | 3 years | ||
Computer hardware | Maximum | |||
Property and equipment | |||
Useful Life | 7 years | ||
Computer software | Minimum | |||
Property and equipment | |||
Useful Life | 3 years | ||
Computer software | Maximum | |||
Property and equipment | |||
Useful Life | 5 years | ||
Website development | |||
Property and equipment | |||
Useful Life | 3 years | ||
Office equipment | |||
Property and equipment | |||
Useful Life | 5 years | ||
Furniture and fixtures | |||
Property and equipment | |||
Useful Life | 7 years | ||
Software Development | |||
Property and equipment | |||
Useful Life | 3 years | ||
Building | Minimum | |||
Operating Leases | |||
Operating leases initial term | 1 year | ||
Building | Maximum | |||
Operating Leases | |||
Operating leases initial term | 9 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Intangible Assets: | |||
Amortization expense | $ 12,900 | $ 15,200 | $ 13,000 |
Number of reporting units | segment | 1 | ||
Future amortization of intangible assets | |||
Fiscal 2025 | $ 9,900 | ||
Fiscal 2026 | 8,700 | ||
Fiscal 2027 | 7,100 | ||
Fiscal 2028 | 5,300 | ||
Fiscal 2029 | 4,500 | ||
Thereafter | 24,600 | ||
Rollforward of Goodwill | |||
Balance at the beginning of the period | 246,676 | 241,000 | |
Acquisition | 5,655 | 600 | |
Balance at the end of the period | 246,676 | 246,676 | $ 241,000 |
Intangible Assets | |||
Gross Carrying Amount | 130,800 | 139,000 | |
Accumulated Amortization | (70,500) | (64,200) | |
Net Carrying Value | 60,300 | 74,800 | |
Trade names | |||
Intangible Assets | |||
Gross Carrying Amount | 70,600 | 77,200 | |
Accumulated Amortization | (23,500) | (23,000) | |
Net Carrying Value | 47,100 | 54,200 | |
Customer and distributor relationships | |||
Intangible Assets | |||
Gross Carrying Amount | 37,100 | 38,400 | |
Accumulated Amortization | (31,100) | (28,000) | |
Net Carrying Value | 6,000 | 10,400 | |
Developed technology | |||
Intangible Assets | |||
Gross Carrying Amount | 21,700 | 22,000 | |
Accumulated Amortization | (14,800) | (12,100) | |
Net Carrying Value | 6,900 | 9,900 | |
Other | |||
Intangible Assets | |||
Gross Carrying Amount | 1,400 | 1,400 | |
Accumulated Amortization | (1,100) | (1,100) | |
Net Carrying Value | $ 300 | 300 | |
Acquisition of Tallo Assets | |||
Rollforward of Goodwill | |||
Acquisition | $ 5,700 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Advertising and Marketing Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Advertising and Marketing Costs | |||
Advertising costs | $ 96.5 | $ 96.8 | $ 86.5 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Fair Value Measurement (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | 24 Months Ended | ||
Nov. 30, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2024 | Jun. 30, 2022 | |
Assets and liabilities measured at fair value | |||||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | ||||
Estimated fair value of long-term debt | $ 585,800 | ||||
Estimated fair value of marketable securities | 213,400 | ||||
Expense on estimate of fair value of contingent consideration | $ 500 | ||||
Fair value of the contingent consideration | $ 11,300 | 11,300 | |||
Payments of contingent consideration | $ 7,024 | ||||
MedCerts | |||||
Assets and liabilities measured at fair value | |||||
Ownership percentage acquired (as a percent) | 100% | ||||
Total consideration | $ 70,000 | ||||
Contingent consideration | $ 10,800 | ||||
Payments of contingent consideration | 7,000 | ||||
MedCerts | Selling, General, and Administrative Expenses | |||||
Assets and liabilities measured at fair value | |||||
Gain on contingent consideration | 4,300 | ||||
Measured on a recurring basis | |||||
Assets and liabilities measured at fair value | |||||
Assets, Fair Value Disclosure | 0 | 0 | |||
Liabilities, Fair Value Disclosure | 0 | 0 | |||
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Contingent Consideration | Acquisitions | |||||
Assets and liabilities measured at fair value | |||||
Fair Value Liability, beginning of period | 11,290 | 11,082 | 11,290 | ||
Purchases, Issuances and Settlements | (7,024) | ||||
Realized Liability Gains/(Losses) | (4,266) | 208 | |||
Fair Value Liability, ending of period | 11,290 | 11,290 | |||
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Convertible Note | Acquisitions | |||||
Assets and liabilities measured at fair value | |||||
Fair Value Asset, beginning of period | 889 | 5,006 | $ 889 | ||
Purchases, Issuances and Settlements | $ (889) | ||||
Realized Liability Gains/(Losses) | (4,117) | ||||
Fair Value Asset, ending of period | $ 889 | $ 889 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Weighted average shares used in computing per share amounts: | |||
Net income attributable to common stockholders | $ 204,183 | $ 126,867 | $ 107,130 |
Weighted average common shares-basic | 42,626,588 | 42,286,392 | 41,451,101 |
Basic net income per share (in dollars per share) | $ 4.79 | $ 3 | $ 2.58 |
Effect of dilutive stock options and restricted stock awards (in shares) | 908,853 | 441,716 | 990,423 |
Weighted average common shares-diluted | 43,535,441 | 42,728,108 | 42,441,524 |
Diluted net income per share (in dollars per share) | $ 4.69 | $ 2.97 | $ 2.52 |
Stock options and restricted stock | |||
Weighted average shares used in computing per share amounts: | |||
Anti-dilutive shares | 7,658 | 21,854 | 4,939 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - ASU (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 | Jul. 01, 2021 |
Summary of Significant Accounting Policies | |||
Long-term debt | $ 414,675 | $ 413,035 | |
Additional paid-in capital | 720,033 | 695,480 | |
Retained earnings | $ 558,512 | $ 354,329 | |
ASU 2020-06 | Adjustment | Cumulative Effect, Period of Adoption, Adjustment | |||
Summary of Significant Accounting Policies | |||
Long-term debt | $ 110,600 | ||
Additional paid-in capital | 89,500 | ||
Deferred tax liability | 29,300 | ||
Retained earnings | $ 8,200 |
Property and Equipment and Ca_3
Property and Equipment and Capitalized Software and Curriculum (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property and equipment, net | |||
Property and equipment, gross | $ 163,407,000 | $ 157,798,000 | |
Less accumulated depreciation and amortization | (112,551,000) | (105,466,000) | |
Property and equipment, Net | 50,856,000 | 52,332,000 | |
Capitalized Computer Software, Net [Abstract] | |||
Capitalized Computer Software, Gross | 330,054,000 | 318,965,000 | |
Less accumulated depreciation and amortization | (248,102,000) | (235,500,000) | |
Capitalized software, Net | 81,952,000 | 83,465,000 | |
Capitalized curriculum development costs, Gross | 181,353,000 | 183,597,000 | |
Less accumulated depreciation and amortization | (128,121,000) | (132,810,000) | |
Capitalized curriculum development costs, net | 53,232,000 | 50,787,000 | |
Capitalized software written down | 0 | 0 | $ 0 |
Selling, General and Administrative Expenses | |||
Capitalized Computer Software, Net [Abstract] | |||
Depreciation expense | 3,800,000 | 3,600,000 | 3,900,000 |
Student computers | |||
Property and equipment, net | |||
Property and equipment, gross | 128,496,000 | 114,064,000 | |
Student computers | Cost of Sales | |||
Capitalized Computer Software, Net [Abstract] | |||
Depreciation expense | 32,900,000 | 42,300,000 | 37,600,000 |
Computer software | |||
Property and equipment, net | |||
Property and equipment, gross | 9,923,000 | 14,908,000 | |
Computer hardware | |||
Property and equipment, net | |||
Property and equipment, gross | 6,698,000 | 8,867,000 | |
Leasehold improvements | |||
Property and equipment, net | |||
Property and equipment, gross | 10,369,000 | 11,590,000 | |
State testing computers | |||
Property and equipment, net | |||
Property and equipment, gross | 4,609,000 | 4,609,000 | |
Furniture and fixtures | |||
Property and equipment, net | |||
Property and equipment, gross | 3,190,000 | 3,547,000 | |
Office equipment | |||
Property and equipment, net | |||
Property and equipment, gross | 122,000 | 213,000 | |
Software Development | Selling, General and Administrative Expenses | |||
Capitalized Computer Software, Net [Abstract] | |||
Amortization expense | 7,900,000 | 5,600,000 | 5,400,000 |
Software Development | Cost of Sales | |||
Capitalized Computer Software, Net [Abstract] | |||
Amortization expense | 34,400,000 | 27,000,000 | 22,900,000 |
Capitalized curriculum | |||
Capitalized Computer Software, Net [Abstract] | |||
Amortization expense | $ 17,700,000 | $ 16,700,000 | $ 15,100,000 |
Income Taxes - Deferred (Detail
Income Taxes - Deferred (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 15,553 | $ 17,628 |
Reserves | 9,031 | 7,850 |
Accrued expenses | 13,290 | 10,868 |
Stock compensation expense | 8,162 | 4,548 |
Other assets | 2,180 | 3,212 |
Convertible debt | 5,980 | 8,632 |
Deferred revenue | 456 | 680 |
Lease liability | 13,879 | 17,900 |
Total deferred tax assets | 68,531 | 71,318 |
Deferred tax liabilities: | ||
Capitalized curriculum development | (9,466) | (9,038) |
Capitalized software and website development costs | (4,340) | (2,987) |
Property and equipment | (9,401) | (8,438) |
Right-of-use assets | (13,052) | (16,837) |
Returned materials | (2,858) | (2,980) |
Purchased intangibles | (14,827) | (15,471) |
Total deferred tax liabilities | (53,944) | (55,751) |
Net deferred tax asset before valuation allowance | 14,587 | 15,567 |
Valuation Allowance | (7,387) | (6,791) |
Net deferred tax asset | $ 7,200 | $ 8,776 |
Income Taxes - Carryforward (De
Income Taxes - Carryforward (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Income Taxes | |
NOL carryforward | $ 33.6 |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 1.1 |
Income Taxes - Other (Details)
Income Taxes - Other (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Taxes | |||
Domestic | $ 262,802 | $ 161,270 | $ 131,967 |
Foreign | 5,863 | 10,943 | 15,251 |
Total income before income taxes | 268,665 | 172,213 | 147,218 |
Current: | |||
Federal | 52,678 | 41,360 | 27,969 |
State | 7,660 | 12,032 | 7,550 |
Foreign | 1,254 | 2,327 | 3,379 |
Total current | 61,592 | 55,719 | 38,898 |
Deferred: | |||
Federal | (667) | (9,033) | 1,743 |
State | 3,557 | (1,340) | (553) |
Total deferred | 2,890 | (10,373) | 1,190 |
Total income tax expense | $ 64,482 | $ 45,346 | $ 40,088 |
Reconciliation to income tax at the statutory rate: | |||
U.S. Federal tax at statutory rates (as a percent) | 21% | 21% | 21% |
Permanent items (as a percent) | 0.40% | ||
Lobbying (as a percent) | 0.10% | 0.10% | 0.10% |
Non-deductible compensation | 0.80% | 1.60% | 9.30% |
State taxes, net of federal benefit (as a percent) | 3.20% | 4.40% | 3.50% |
Research and development tax credits (as a percent) | (1.50%) | (1.40%) | (0.80%) |
Change in valuation allowance (as a percent) | (0.40%) | 0.80% | |
Effects of foreign operations (as a percent) | 0.10% | 0.90% | 0.30% |
Reserve for unrecognized tax benefits (as a percent) | 0.50% | 0.90% | 0.50% |
Other (as a percent) | 0.10% | (0.50%) | (1.20%) |
Stock-based compensation (as a percent) | (0.30%) | (0.30%) | (6.70%) |
Provision for income taxes (as a percent) | 24% | 26.30% | 27.20% |
Income Taxes - Tax Uncertaintie
Income Taxes - Tax Uncertainties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Tax Uncertainties | |||
Interest and penalties accrued | $ 400 | $ 200 | $ 100 |
Balance at beginning of the year | 3,156 | 1,729 | 1,057 |
Additions for prior year tax positions | 591 | 568 | 364 |
Additions for current year tax positions | 1,205 | 1,106 | 482 |
Reductions for prior year tax positions | (666) | (247) | (173) |
Balance at end of the year | 4,286 | $ 3,156 | $ 1,729 |
Unrecognized tax benefits that would affect the effective tax rate | $ 4,300 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 1 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) installment | Mar. 27, 2020 | |
Reconciliation to income tax at the statutory rate: | ||||
Employer portion of social security payroll tax percentage | 6.20% | |||
Deferred amount of employer portion of social security payroll tax | $ 14,100 | |||
Number of installments that deferred employer social security payroll taxes will be repaid | installment | 2 | |||
Deferred amount paid | $ 7,050 | $ 7,050 |
Finance and Operating Leases (D
Finance and Operating Leases (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 | Aug. 31, 2022 | Dec. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2020 |
Finance and Operating Leases | ||||||
Finance lease liability | $ 55,598,000 | $ 56,899,000 | ||||
Maximum | ||||||
Finance and Operating Leases | ||||||
Finance lease term | 3 years | |||||
BALC | ||||||
Finance and Operating Leases | ||||||
Finance lease liability | $ 55,600,000 | 56,900,000 | ||||
Available line of credit | $ 41,000,000 | $ 25,000,000 | ||||
Finance lease right-of-use assets | $ 39,800,000 | $ 36,300,000 | ||||
Finance lease term | 36 months | |||||
Purchase option | $ 1 | |||||
Additional amount of borrowings as at the and of the reporting period | $ 54,000,000 | |||||
BALC | Minimum | ||||||
Finance and Operating Leases | ||||||
Fixed interest rate (as a percent) | 2.10% | |||||
BALC | Maximum | ||||||
Finance and Operating Leases | ||||||
Fixed interest rate (as a percent) | 6.72% | |||||
CSI Leasing | ||||||
Finance and Operating Leases | ||||||
Finance lease term | 36 months |
Finance and Operating Leases -
Finance and Operating Leases - Finance leases (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
Finance leases | ||
Remainder of fiscal year | $ 37,056 | |
Year 1 | $ 31,655 | 16,691 |
Year 2 | 19,880 | 5,457 |
Year 3 | 7,691 | 60 |
Year 4 | 82 | |
Total minimum payments | 59,308 | 59,264 |
Less: imputed interest | (3,710) | (2,365) |
Finance lease liability | 55,598 | 56,899 |
Less: current portion of finance lease liability | (29,146) | (35,621) |
Long-term finance lease liability | $ 26,452 | $ 21,278 |
Finance and Operating Leases _2
Finance and Operating Leases - Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
Operating Leases | ||
Remainder of fiscal year | $ 16,341 | |
Year 1 | $ 14,263 | 15,668 |
Year 2 | 12,361 | 12,290 |
Year 3 | 8,705 | 8,753 |
Year 4 | 7,713 | 7,727 |
Year 5 | 7,599 | |
Thereafter | 12,381 | 19,975 |
Total minimum payments | 63,022 | 80,754 |
Less: imputed interest | (5,082) | (6,880) |
Operating lease liability | 57,940 | 73,874 |
Less: current portion of operating lease liability | (12,748) | (14,449) |
Long-term operating lease liability | 45,192 | 59,425 |
Operating lease right-of-use assets, net | $ 54,503 | $ 69,508 |
Minimum | ||
Operating Leases | ||
Operating leases initial term | 1 year | |
Maximum | ||
Operating Leases | ||
Operating leases initial term | 9 years |
Finance and Operating Leases _3
Finance and Operating Leases - Sub Leases (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 USD ($) facility | Jun. 30, 2023 USD ($) | |
Finance and Operating Leases | ||
Remainder of current fiscal year | $ 836 | |
Year 1 | $ 455 | 455 |
Year 2 | 139 | 139 |
Total sublease income | $ 594 | $ 1,430 |
Number of entity's facilities that are being subleased through September 2024 | facility | 1 | |
Number of entity's facilities that are being subleased through November 2024 | facility | 1 | |
Number of entity's facilities that are being subleased through December 2025 | facility | 1 |
Finance and Operating Leases _4
Finance and Operating Leases - Lease cost and other information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Finance lease cost: | |||
Amortization of right-of-use assets | $ 31,099 | $ 39,312 | $ 34,719 |
Interest on lease liabilities | 2,639 | 2,080 | 1,769 |
Total lease cost | 48,749 | 56,911 | 57,329 |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | (14,990) | (12,243) | (20,742) |
Financing cash flows from finance leases | (40,919) | (42,956) | (33,011) |
Right-of-use assets obtained in exchange for new finance lease liabilities | 35,652 | 30,514 | 23,232 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 864 | $ 1,619 | $ 10,589 |
Weighted-average remaining lease term - finance leases | 2 years 7 days | 1 year 8 months 19 days | 1 year 10 months 6 days |
Weighted-average remaining lease term - operating leases | 5 years 7 months 28 days | 6 years 1 month 6 days | 6 years 6 months 14 days |
Weighted-average discount rate - finance leases | 5.62% | 3.86% | 2.47% |
Weighted-average discount rate - operating leases | 2.92% | 2.81% | 2.75% |
Instructional costs and services | |||
Finance lease cost: | |||
Operating lease cost | $ 9,605 | $ 12,028 | $ 15,718 |
Short-term lease cost | 56 | 103 | 67 |
Sublease income | (328) | (1,081) | (955) |
Selling, general and administrative expenses | |||
Finance lease cost: | |||
Operating lease cost | 6,019 | 4,616 | 6,253 |
Short-term lease cost | 150 | 259 | 125 |
Sublease income | $ (491) | $ (406) | $ (367) |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
Debt | ||
Less: unamortized debt issuance costs | $ (5,325) | $ (6,965) |
Total debt | 414,675 | 413,035 |
Long-term debt | 414,675 | 413,035 |
Convertible Senior Notes Due 2027 | ||
Debt | ||
Total debt | $ 420,000 | $ 420,000 |
Debt - Additional Information (
Debt - Additional Information (Details) | 2 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 USD ($) $ / shares | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Debt | ||||
Amortization of fees on debt | $ 1,640,000 | $ 1,597,000 | $ 1,573,000 | |
Convertible Senior Notes Due 2027 | ||||
Debt | ||||
Face amount | $ 420,000,000 | |||
Interest rate (as percent) | 1.125% | |||
Net proceeds | $ 408,600,000 | |||
Interest expense | 4,700,000 | 4,700,000 | 4,700,000 | |
Debt issuance costs | $ 11,400,000 | |||
Amortization of fees on debt | $ 1,600,000 | $ 1,600,000 | $ 1,600,000 | |
Period prior to maturity date where noteholders may convert their notes at their election prior to the maturity date | 2 days | |||
Conversion rate | 18.9109 | |||
Denomination of the Principal amount | $ 1,000 | |||
Conversion price (in dollars per share) | $ / shares | $ 52.88 | |||
Upper strike price (in dollars per share) | $ / shares | $ 86.174 | |||
Capped call transaction | $ 60,400,000 |
Credit Facility (Details)
Credit Facility (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Jan. 27, 2020 | Aug. 31, 2018 | Jun. 30, 2024 | |
Credit Facility | |||
Term of debt | 48 months | ||
Interest rate spread added to base rate (as a percent) | 25% | ||
Credit Facility | |||
Credit Facility | |||
Face amount | $ 100 | ||
Term of debt | 5 years | ||
Repayments on credit facility | $ 100 | ||
Amount outstanding | $ 0 | ||
Amount of accordion feature under the credit facility | $ 200 | ||
Credit Facility | LIBOR | Minimum | |||
Credit Facility | |||
Interest rate spread added to base rate (as a percent) | 0.875% | ||
Credit Facility | LIBOR | Maximum | |||
Credit Facility | |||
Interest rate spread added to base rate (as a percent) | 1.50% |
Equity Incentive Plan (Details)
Equity Incentive Plan (Details) - shares | Dec. 09, 2022 | Jun. 30, 2024 | Jun. 30, 2022 | Jun. 30, 2021 |
Equity Transactions | ||||
Options outstanding (in shares) | 1,350 | 31,450 | ||
2016 Plan | ||||
Equity Transactions | ||||
Additional shares available for issuance | 1,045,000 | |||
Shares reserved for issuance | 2,066,665 | |||
Number of stock awards outstanding (in shares) | 1,587,359 |
Equity Incentive Plan - Stock O
Equity Incentive Plan - Stock Options (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Shares | |||
Outstanding at the beginning of the period (in shares) | 1,350 | 31,450 | |
Exercised (in shares) | (1,350) | (29,100) | |
Forfeited or canceled (in shares) | (1,000) | ||
Outstanding at the end of the period (in shares) | 1,350 | 31,450 | |
Weighted-Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 14.77 | $ 16.58 | |
Exercised (in dollars per share) | $ 14.77 | 16.14 | |
Forfeited or canceled (in dollars per share) | 31.73 | ||
Outstanding at the end of the period (in dollars per share) | $ 14.77 | $ 16.58 | |
Additional information | |||
Weighted Average Remaining Contractual Life | 11 months 23 days | 9 months 25 days | |
Aggregate Intrinsic Value | $ 35,127 | $ 437,037 |
Equity Incentive Plan - Relatio
Equity Incentive Plan - Relationship (Details) - Employee and Non Employees Stock Option [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity Transactions | |||
Intrinsic value of options exercised | $ 0 | $ 0 | $ 0.5 |
Unrecognized compensation | 0 | ||
Stock based compensation expense | $ 0 | $ 0 | $ 0 |
Equity Incentive Plan - Restric
Equity Incentive Plan - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2022 | Aug. 31, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Sep. 17, 2021 | Aug. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Shares | |||||||||||||||
Vested (in shares) | (238,863) | ||||||||||||||
2019 SPP | |||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Vesting period | 3 years | ||||||||||||||
Fiscal Year 2021 LTIP | |||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Earned award vesting percentage | 123% | ||||||||||||||
Restricted Stock Awards | |||||||||||||||
Shares | |||||||||||||||
Nonvested at the beginning of the period (in shares) | 815,233 | 1,131,466 | 1,409,334 | ||||||||||||
Granted (in shares) | 507,443 | 595,818 | 582,273 | ||||||||||||
Vested (in shares) | (437,724) | (774,917) | (699,346) | ||||||||||||
Canceled (in shares) | (153,728) | (137,134) | (160,795) | ||||||||||||
Nonvested at the end of the period (in shares) | 731,224 | 815,233 | 1,131,466 | 1,409,334 | |||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Nonvested at the beginning of the period (in dollars per share) | $ 36.91 | $ 33.27 | $ 30.26 | ||||||||||||
Granted (in dollars per share) | 43.43 | 37.90 | 35.27 | ||||||||||||
Vested (in dollars per share) | 36.36 | 32.50 | 28.62 | ||||||||||||
Canceled (in dollars per share) | 37.37 | 36.08 | 34.33 | ||||||||||||
Nonvested at the end of the period (in dollars per share) | $ 40.60 | $ 36.91 | $ 33.27 | $ 30.26 | |||||||||||
Vesting period | 3 years | ||||||||||||||
Unrecognized compensation | $ 21.2 | ||||||||||||||
Weighted average period for recognition of total unrecognized compensation expense related to unvested stock options granted | 1 year 7 months 6 days | ||||||||||||||
Fair value of share-based compensation awards granted in period | $ 22 | $ 22.6 | $ 20.5 | ||||||||||||
Fair value of share-based compensation awards vested in period | 23.3 | 29.6 | 23.5 | ||||||||||||
Stock based compensation expense | $ 16 | $ 15.5 | $ 18.4 | ||||||||||||
Restricted Stock Awards | Vesting Based on Performance | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 0 | ||||||||||||||
Nonvested at the end of the period (in shares) | 0 | ||||||||||||||
Restricted Stock Awards | Vesting Based On Performance And Service | |||||||||||||||
Shares | |||||||||||||||
Vested (in shares) | (27,234) | ||||||||||||||
Restricted Stock Awards | Service based awards | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 507,443 | ||||||||||||||
Vested (in shares) | (410,491) | ||||||||||||||
Nonvested at the end of the period (in shares) | 731,224 | ||||||||||||||
Performance Share Units | |||||||||||||||
Shares | |||||||||||||||
Nonvested at the beginning of the period (in shares) | 496,869 | 355,302 | 2,878,044 | ||||||||||||
Granted (in shares) | 375,725 | 366,507 | 346,880 | ||||||||||||
Vested (in shares) | (22,468) | (119,467) | (1,810,752) | ||||||||||||
Canceled (in shares) | (90,595) | (105,473) | (1,058,870) | ||||||||||||
Nonvested at the end of the period (in shares) | 759,531 | 496,869 | 355,302 | 2,878,044 | |||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Nonvested at the beginning of the period (in dollars per share) | $ 34.99 | $ 32.62 | $ 15.26 | ||||||||||||
Granted (in dollars per share) | 41.85 | 33.87 | 34.90 | ||||||||||||
Vested (in dollars per share) | 49.62 | 30.48 | 9.95 | ||||||||||||
Canceled (in dollars per share) | 36.94 | 28.22 | 24.95 | ||||||||||||
Nonvested at the end of the period (in dollars per share) | $ 37.73 | $ 34.99 | $ 32.62 | $ 15.26 | |||||||||||
Unrecognized compensation | $ 21.8 | ||||||||||||||
Weighted average period for recognition of total unrecognized compensation expense related to unvested stock options granted | 1 year 4 months 24 days | ||||||||||||||
Stock based compensation expense | $ 15.4 | $ 4.9 | $ 0.1 | ||||||||||||
Performance Share Units | 2019 SPP | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 66,934 | 2,108,305 | |||||||||||||
Vested (in shares) | (1,656,594) | ||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Granted (in dollars per share) | $ 12.56 | $ 8.18 | |||||||||||||
Vesting period | 3 years | ||||||||||||||
Performance Share Units | Fiscal Year 2019 LTIP | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 34,030 | 263,936 | |||||||||||||
Vested (in shares) | (115,223) | ||||||||||||||
Canceled (in shares) | (107,397) | ||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Granted (in dollars per share) | $ 23.51 | $ 30.05 | |||||||||||||
Performance Share Units | Fiscal Year 2021 MIP | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 13,066 | 37,886 | 38,575 | ||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Earned award vesting percentage | 0.33% | 33.33% | |||||||||||||
Performance Share Units | Fiscal Year 2021 LTIP | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 111,450 | ||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Granted (in dollars per share) | $ 24.15 | ||||||||||||||
Performance Share Units | Fiscal Year 2022 LTIP | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 250,250 | ||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Granted (in dollars per share) | $ 36.30 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Performance Share Units | Fiscal Year 2023 LTIP | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 289,640 | ||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Granted (in dollars per share) | $ 34.41 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Performance Share Units | Fiscal Year 2024 LTIP | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 354,090 | ||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Granted (in dollars per share) | $ 40.84 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Performance Share Units | Senior Executives | 2019 SPP | |||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Market Capitalization Growth Performance Period | 3 years | ||||||||||||||
Performance Share Units | New Chief Executive Officer and Executive Chairman | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 358,294 | ||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Granted (in dollars per share) | $ 27.91 | ||||||||||||||
Performance Share Units | Vesting Based on Performance | Executive Officers | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 82,710 | ||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Granted (in dollars per share) | $ 45.33 | ||||||||||||||
Performance Share Units | Vesting Based on Performance | Chief Executive Officer | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 30,364 | ||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Granted (in dollars per share) | $ 24.70 | ||||||||||||||
Performance Share Units | Vest immediately upon achievement of the performance goals | Executive Officers | |||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Earned award vesting percentage | 33.33% | ||||||||||||||
Performance Share Units | Vest immediately upon achievement of the performance goals | Chief Executive Officer | |||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Earned award vesting percentage | 33.33% | ||||||||||||||
Performance Share Units | Vesting Based On Performance And Service | Executive Officers | |||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Certified achievement percentage | 133% | ||||||||||||||
Number Of Shares Earned Upon Reaching Performance Threshold | 27,293 | ||||||||||||||
Performance Share Units | Vesting Based On Performance And Service | Chief Executive Officer | |||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Certified achievement percentage | 133% | ||||||||||||||
Number Of Shares Earned Upon Reaching Performance Threshold | 10,020 | ||||||||||||||
Performance Share Units | Vest annually over two years | Executive Officers | |||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Earned award vesting percentage | 66.67% | ||||||||||||||
Performance Shares Tranche #2 | Fiscal Year 2019 LTIP | |||||||||||||||
Weighted-Average Grant Date Fair Value | |||||||||||||||
Certified achievement percentage | 193% | ||||||||||||||
Earned award vesting percentage | 25% | ||||||||||||||
Performance Shares Tranche #2 | New Chief Executive Officer and Executive Chairman | |||||||||||||||
Shares | |||||||||||||||
Granted (in shares) | 119,431 |
Equity Incentive Plan - Perform
Equity Incentive Plan - Performance Share Units ("PSU") (Details) - $ / shares | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Shares | ||||
Vested (in shares) | (238,863) | |||
Performance Share Units | ||||
Shares | ||||
Nonvested at the beginning of the period (in shares) | 496,869 | 355,302 | 2,878,044 | |
Granted (in shares) | 375,725 | 366,507 | 346,880 | |
Vested (in shares) | (22,468) | (119,467) | (1,810,752) | |
Canceled (in shares) | (90,595) | (105,473) | (1,058,870) | |
Nonvested at the end of the period (in shares) | 759,531 | 496,869 | 355,302 | |
Weighted-Average Grant Date Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $ 34.99 | $ 32.62 | $ 15.26 | |
Granted (in dollars per share) | 41.85 | 33.87 | 34.90 | |
Vested (in dollars per share) | 49.62 | 30.48 | 9.95 | |
Canceled (in dollars per share) | 36.94 | 28.22 | 24.95 | |
Nonvested at the end of the period (in dollars per share) | $ 37.73 | $ 34.99 | $ 32.62 | |
Number of shares of common stock each unit has the right to receive | 1 |
Equity Incentive Plan - Long Te
Equity Incentive Plan - Long Term Incentive Plan (LTIP) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 tranche | Aug. 31, 2022 shares | Jan. 31, 2022 shares | Oct. 31, 2021 item shares | Sep. 30, 2021 $ / shares | Sep. 17, 2021 employee shares | Aug. 31, 2021 shares | Dec. 31, 2023 shares | Dec. 31, 2022 tranche shares | Dec. 31, 2021 shares | Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Jun. 30, 2020 USD ($) $ / shares shares | Jun. 30, 2019 USD ($) $ / shares shares | |
Equity Transactions | ||||||||||||||||
Vested (in shares) | 238,863 | |||||||||||||||
Share based compensation, number of tranches forfeited | item | 2 | |||||||||||||||
2019 SPP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Vesting period | 3 years | |||||||||||||||
Fiscal Year 2021 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 123% | |||||||||||||||
Number of metrics assumed to be achieved | tranche | 2 | 2 | ||||||||||||||
Number of metrics assumed to be achieved at threshold | tranche | 1 | 1 | ||||||||||||||
Vest immediately | Fiscal Year 2022 | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 2% | |||||||||||||||
Vest immediately | Fiscal Year 2021 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 40% | |||||||||||||||
Vested (in shares) | 4,533 | |||||||||||||||
Vest annually over two years. | Fiscal Year 2021 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 60% | |||||||||||||||
Vested (in shares) | 6,797 | |||||||||||||||
Vest the following year | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Vested (in shares) | 77,048 | |||||||||||||||
Certified achievement percentage | 200% | |||||||||||||||
Career Learning Revenue Performance Based Share Units | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 366,250 | |||||||||||||||
Granted (in dollars per share) | $ / shares | $ 45.05 | |||||||||||||||
Fair value | $ | $ 16,500,000 | |||||||||||||||
Career Learning Revenue Performance Based Share Units | Fiscal Year 2021 | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 77,690 | |||||||||||||||
Vesting period | 2 years | |||||||||||||||
Career Learning Revenue Performance Based Share Units | Fiscal Year 2022 | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 122,080 | |||||||||||||||
Career Learning Revenue Performance Based Share Units | Fiscal Year 2023 | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 166,480 | |||||||||||||||
Career Learning Revenue Performance Based Share Units | Vest immediately | Fiscal Year 2021 | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 1% | |||||||||||||||
Career Learning Revenue Performance Based Share Units | Vest annually over two years. | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 1% | |||||||||||||||
Career Learning Revenue Performance Based Share Units | Vest annually over two years. | Fiscal Year 2021 | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 2% | |||||||||||||||
Performance Share Units | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 375,725 | 366,507 | 346,880 | |||||||||||||
Granted (in dollars per share) | $ / shares | $ 41.85 | $ 33.87 | $ 34.90 | |||||||||||||
Vested (in shares) | 22,468 | 119,467 | 1,810,752 | |||||||||||||
Canceled (in shares) | (90,595) | (105,473) | (1,058,870) | |||||||||||||
Unrecognized compensation | $ | $ 21,800,000 | |||||||||||||||
Weighted average period for recognition of total unrecognized compensation expense related to unvested stock options granted | 1 year 4 months 24 days | |||||||||||||||
Stock based compensation expense | $ | $ 15,400,000 | $ 4,900,000 | $ 100,000 | |||||||||||||
Performance Share Units | 2019 SPP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 66,934 | 2,108,305 | ||||||||||||||
Number of named executive officers | employee | 6 | |||||||||||||||
Granted (in dollars per share) | $ / shares | $ 12.56 | $ 8.18 | ||||||||||||||
Vesting period | 3 years | |||||||||||||||
Vested (in shares) | 1,656,594 | |||||||||||||||
Threshold period average price of stock to determine final amount | 30 days | |||||||||||||||
Average price of Company stock during the performance period (in dollars per share) | $ / shares | $ 34.13 | |||||||||||||||
Market capitalization growth (as a percent) | 112% | |||||||||||||||
Performance Share Units | 2019 SPP | Senior Executives | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Threshold period average price of stock to determine final amount | 30 days | |||||||||||||||
Threshold days after release of fiscal year 2021 results to calculate average price of stock | 7 days | |||||||||||||||
Performance Share Units | 2019 SPP | Total stock price growth less than 25% | Senior Executives | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Amount earned as percentage of total value growth | 0% | |||||||||||||||
Percentage of total stock price growth | 25% | |||||||||||||||
Annualized percentage of total stock price growth | 7.60% | |||||||||||||||
Performance Share Units | 2019 SPP | Total Stock Price Growth 33% | Senior Executives | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Amount earned as percentage of total value growth | 6% | |||||||||||||||
Percentage of total stock price growth | 33% | |||||||||||||||
Annualized percentage of total stock price growth | 10% | |||||||||||||||
Performance Share Units | 2019 SPP | Total Stock Price Growth Equals or Greater than 95% | Senior Executives | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Amount earned as percentage of total value growth | 7.50% | |||||||||||||||
Percentage of total stock price growth | 95% | |||||||||||||||
Annualized percentage of total stock price growth | 25% | |||||||||||||||
Performance Share Units | Fiscal Year 2019 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 34,030 | 263,936 | ||||||||||||||
Granted (in dollars per share) | $ / shares | $ 23.51 | $ 30.05 | ||||||||||||||
Fair value | $ | $ 800,000 | $ 7,900,000 | ||||||||||||||
Vested (in shares) | 115,223 | |||||||||||||||
Canceled (in shares) | (107,397) | |||||||||||||||
Performance Share Units | Fiscal Year 2020 TRIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Fair value | $ | $ 12,300,000 | |||||||||||||||
Performance Share Units | Fiscal Year 2021 MIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 13,066 | 37,886 | 38,575 | |||||||||||||
Earned award vesting percentage | 0.33% | 33.33% | ||||||||||||||
Performance Share Units | Fiscal Year 2021 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 111,450 | |||||||||||||||
Granted (in dollars per share) | $ / shares | $ 24.15 | |||||||||||||||
Fair value | $ | $ 2,700,000 | |||||||||||||||
Performance Share Units | Fiscal Year 2022 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 250,250 | |||||||||||||||
Granted (in dollars per share) | $ / shares | $ 36.30 | |||||||||||||||
Vesting period | 3 years | |||||||||||||||
Fair value | $ | $ 9,100,000 | |||||||||||||||
Performance Share Units | Fiscal Year 2023 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 289,640 | |||||||||||||||
Granted (in dollars per share) | $ / shares | $ 34.41 | |||||||||||||||
Vesting period | 3 years | |||||||||||||||
Fair value | $ | $ 10,000,000 | |||||||||||||||
Performance Share Units | Fiscal Year 2024 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 354,090 | |||||||||||||||
Granted (in dollars per share) | $ / shares | $ 40.84 | |||||||||||||||
Vesting period | 3 years | |||||||||||||||
Fair value | $ | $ 14,400,000 | |||||||||||||||
Performance Share Units | Tech Elevator | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Stock based compensation expense | $ | $ 300,000 | 1,000,000 | $ 1,300,000 | |||||||||||||
Performance Share Units | Tech Elevator | Fiscal Year 2021 MIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Intrinsic value of awards | $ | $ 4,000,000 | |||||||||||||||
Performance Share Units | Vest immediately upon achievement of the performance goals | Chief Executive Officer | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 33.33% | |||||||||||||||
Performance Share Units | Vest immediately upon achievement of the performance goals | Executive Officers | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 33.33% | |||||||||||||||
Performance Share Units | Vest annually over two years | Executive Officers | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 66.67% | |||||||||||||||
Performance Share Units | Vesting Based on Performance | Chief Executive Officer | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 30,364 | |||||||||||||||
Granted (in dollars per share) | $ / shares | $ 24.70 | |||||||||||||||
Performance Share Units | Vesting Based on Performance | Executive Officers | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Granted (in shares) | 82,710 | |||||||||||||||
Granted (in dollars per share) | $ / shares | $ 45.33 | |||||||||||||||
Performance Share Units | Revenue | Fiscal Year 2020 TRIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 60% | |||||||||||||||
Performance Share Units | EBITDA | Fiscal Year 2020 TRIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 40% | |||||||||||||||
Performance Share Units | Vest annually over two years. | Chief Executive Officer | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 66.67% | |||||||||||||||
Vesting period | 2 years | |||||||||||||||
Performance Share Units | Vest annually over two years. | Executive Officers | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Vesting period | 2 years | |||||||||||||||
Performance Share Units | Vesting Based On Performance And Service | Chief Executive Officer | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Number of shares earned upon reaching performance threshold | 10,020 | |||||||||||||||
Certified achievement percentage | 133% | |||||||||||||||
Performance Share Units | Vesting Based On Performance And Service | Executive Officers | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Number of shares earned upon reaching performance threshold | 27,293 | |||||||||||||||
Certified achievement percentage | 133% | |||||||||||||||
Performance Shares Tranche #1 | Fiscal Year 2019 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 45% | |||||||||||||||
Performance Shares Tranche #1 | Fiscal Year 2020 TRIP | Calendar Year 2021 | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 70% | |||||||||||||||
Performance Shares Tranche #1 | Fiscal Year 2022 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Probable Percentage of Metric Target will be Achieved | 70% | |||||||||||||||
Performance Shares Tranche #1 | Fiscal Year 2023 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Fair value | $ | 4,800,000 | |||||||||||||||
Share based payment award fair market value decrease | $ | $ 800,000 | |||||||||||||||
Performance Shares Tranche #1 | Vest immediately | Fiscal Year 2022 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 50% | |||||||||||||||
Performance Shares Tranche #1 | Vest immediately | Fiscal Year 2023 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 50% | |||||||||||||||
Performance Shares Tranche #1 | Vest immediately | Fiscal Year 2024 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 75% | |||||||||||||||
Performance Shares Tranche #1 | Vest annually over two years. | Fiscal Year 2023 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 50% | |||||||||||||||
Performance Shares Tranche #1 | Vest annually over two years. | Fiscal Year 2024 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 25% | |||||||||||||||
Performance Shares Tranche #2 | Fiscal Year 2019 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 25% | |||||||||||||||
Certified achievement percentage | 193% | |||||||||||||||
Performance Shares Tranche #2 | Fiscal Year 2020 TRIP | Calendar Year 2022 | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 30% | |||||||||||||||
Performance Shares Tranche #2 | Vest annually over two years. | Fiscal Year 2022 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 50% | |||||||||||||||
Performance Shares Tranche #3 | Fiscal Year 2019 LTIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 30% | |||||||||||||||
Time Based Award | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Deferred Compensation Liability | $ | $ 0 | |||||||||||||||
Time Based Award | Tech Elevator | Fiscal Year 2021 MIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Vesting period | 3 years | |||||||||||||||
Intrinsic value of awards | $ | $ 4,000,000 | |||||||||||||||
Time Based Award | Vest immediately | Tech Elevator | Fiscal Year 2021 MIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 70% | |||||||||||||||
Time Based Award | Vest annually over two years. | Tech Elevator | Fiscal Year 2021 MIP | ||||||||||||||||
Equity Transactions | ||||||||||||||||
Earned award vesting percentage | 30% |
Equity Incentive Plan - Deferre
Equity Incentive Plan - Deferred Stock Units ("DSU") (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Shares | ||||
Vested (in shares) | (238,863) | |||
Deferred Stock Units | ||||
Shares | ||||
Nonvested at the beginning of the period (in shares) | 99,535 | 69,117 | 59,354 | |
Granted (in shares) | 13,171 | 30,418 | 14,769 | |
Vested (in shares) | (16,102) | (5,006) | ||
Nonvested at the end of the period (in shares) | 96,604 | 99,535 | 69,117 | |
Weighted-Average Grant Date Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $ 27.38 | $ 24.27 | $ 22.01 | |
Granted (in dollars per share) | 59.43 | 34.43 | 33.24 | |
Vested (in dollars per share) | 22.91 | 23.97 | ||
Nonvested at the end of the period (in dollars per share) | $ 32.49 | $ 27.38 | $ 24.27 | |
Unrecognized compensation | $ 0.3 | |||
Weighted average period for recognition of total unrecognized compensation expense related to unvested stock options granted | 4 months 24 days | |||
Stock based compensation expense | $ 0.9 | $ 0.7 | $ 0.5 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Buildings | |
Commitments and contingencies | |
Guarantees related to lease commitments | $ 0.2 |
Severance (Details)
Severance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Severance | |||
Severance costs | $ 4.6 | $ 3.4 | $ 3.7 |
Executives and other employees | |||
Severance | |||
Costs associated with accelerated vesting of equity awards | $ 0.5 | $ 0.5 | $ 0.1 |
Acquisitions and Investments (D
Acquisitions and Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jul. 08, 2022 | Oct. 31, 2021 | Aug. 31, 2018 | Jun. 30, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2022 | Aug. 31, 2020 | |
Schedule of Equity Method Investments | ||||||||
Investment | $ 6,700 | $ 2,300 | ||||||
Ownership percentage | 39.50% | 46.10% | ||||||
Convertible note | $ 5,000 | |||||||
Ownership percentage on an if-converted basis | 55% | |||||||
Interest rate spread added to base rate (as a percent) | 25% | |||||||
Term of debt | 48 months | |||||||
Convertible into Series D Preferred shares | 3,670 | |||||||
Impairment loss | $ 4,500 | |||||||
Loans receivable | $ 3,000 | |||||||
Loans receivable interest rate | 5% | |||||||
Maturity term of loans receivable | 5 years | |||||||
Loans receivable funded amount | $ 3,000 | |||||||
Investment, Type [Extensible Enumeration] | lrn:TalloIncMember | |||||||
Credit loss expense on convertible note | 4,100 | |||||||
Credit loss expense on promissory note | 3,000 | |||||||
Reversal of accrued interest on convertible note and promissory note | 400 | |||||||
Goodwill | $ 241,000 | $ 246,676 | $ 246,676 | |||||
Intangible assets | $ 60,282 | $ 74,771 | ||||||
Acquisition of Tallo Assets | ||||||||
Schedule of Equity Method Investments | ||||||||
Cash purchase price | $ 1,000 | |||||||
Working capital | 400 | |||||||
Cash and contingent consideration paid | 7,300 | |||||||
Goodwill | 5,700 | |||||||
Intangible assets | $ 1,300 | |||||||
Acquisition of Tallo Assets | Customer relationships | ||||||||
Schedule of Equity Method Investments | ||||||||
Amortization period | 10 years |
Related Party Transactions (Det
Related Party Transactions (Details) - Future of School - USD ($) $ in Millions | 12 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2019 | |
Related Party Transactions | |||||
Contributions made to related party | $ 0 | $ 0 | $ 1.2 | ||
Accrued contributions to related party | $ 2.3 | $ 3.5 | $ 2.5 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Employee Benefits | |||
Minimum length of service for participation | 30 days | ||
Company match percentage of participant's compensation | 50% | ||
Percentage of participant's compensation that company matches on | 5% | ||
401(k) Plan expense | $ 7.7 | $ 7.7 | $ 6.1 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for interest | $ 7,521 | $ 6,946 | $ 6,641 |
Cash paid for taxes | 85,228 | 37,131 | 35,972 |
Supplemental disclosure of non-cash financing activities: | |||
Right-of-use assets obtained from acquisitions | 385 | ||
Right-of-use assets obtained in exchange for new finance lease liabilities | 35,652 | 30,514 | 23,232 |
Supplemental disclosure of non-cash investing activities: | |||
Stock-based compensation expense capitalized on software development | 816 | 700 | 374 |
Stock-based compensation expense capitalized on curriculum development | $ 76 | 84 | 88 |
Non-cash purchase price related to business combinations | 5,861 | 1,145 | |
Business Combinations: | |||
Acquired assets | 1,132 | 394 | |
Intangible assets, net | 1,309 | 2,157 | |
Goodwill | 5,655 | 600 | |
Assumed liabilities | (385) | (58) | |
Deferred revenue | $ (441) | $ (1,030) |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | |||
Valuation and Qualifying Account Activity | |||
Balance at Beginning of Period | $ 30,031,273 | $ 26,993,037 | $ 21,383,543 |
Additions (Deductions) Charged to Cost and Expenses | 22,843,961 | 8,047,729 | 8,555,918 |
Deductions from Allowance | 21,577,267 | 5,009,493 | 2,946,424 |
Balance at End of Period | 31,297,967 | 30,031,273 | 26,993,037 |
INVENTORY RESERVES | |||
Valuation and Qualifying Account Activity | |||
Balance at Beginning of Period | 4,145,280 | 6,457,046 | 5,647,283 |
Additions (Deductions) Charged to Cost and Expenses | 1,778,825 | 2,392,785 | 880,809 |
Deductions from Allowance | 2,867 | 4,704,551 | 71,046 |
Balance at End of Period | 5,921,239 | 4,145,280 | 6,457,046 |
COMPUTER RESERVE | |||
Valuation and Qualifying Account Activity | |||
Balance at Beginning of Period | 1,345,832 | 2,039,771 | 2,273,372 |
Additions (Deductions) Charged to Cost and Expenses | 1,129,323 | 332,197 | 135,948 |
Deductions from Allowance | 688,930 | 1,026,136 | 369,549 |
Balance at End of Period | 1,786,225 | 1,345,832 | 2,039,771 |
INCOME TAX VALUATION ALLOWANCE | |||
Valuation and Qualifying Account Activity | |||
Balance at Beginning of Period | 6,790,724 | 6,677,352 | 5,047,078 |
Additions to Net Deferred Tax Asset Allowance | 596,455 | 113,372 | 1,630,274 |
Balance at End of Period | $ 7,387,179 | $ 6,790,724 | $ 6,677,352 |