Paycor HCM (PYCR) 10-Q 6 Feb 25 2025 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Dec. 31, 2024	Jan. 29, 2025
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2024
Document Transition Report	false
Entity File Number	001-40640
Entity Registrant Name	PAYCOR HCM, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-1813909
Entity Address, Address Line One	4811 Montgomery Road
Entity Address, City or Town	Cincinnati
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45212
City Area Code	800
Local Phone Number	381-0053
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PYCR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		181,771,948
Entity Central Index Key	0001839439
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2025

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Current assets:
Cash and cash equivalents	$ 114,569	$ 117,958
Accounts receivable, net allowance for credit losses	58,252	48,164
Deferred contract costs	75,440	70,377
Prepaid expenses	13,284	12,749
Other current assets	9,397	3,458
Current assets before funds held for clients	270,942	252,706
Funds held for clients	1,333,368	1,109,136
Total current assets	1,604,310	1,361,842
Property and equipment, net	34,087	35,220
Operating lease right-of-use assets	14,308	14,417
Goodwill	765,904	766,653
Intangible assets, net	137,327	171,493
Capitalized software, net	72,046	67,376
Long-term deferred contract costs	199,450	189,826
Other long-term assets	2,770	2,566
Total assets	2,830,202	2,609,393
Current liabilities:
Accounts payable	21,327	27,309
Accrued expenses and other current liabilities	24,851	26,450
Accrued payroll and payroll related expenses	36,190	44,923
Deferred revenue	13,395	13,600
Current liabilities before client fund obligations	95,763	112,282
Client fund obligations	1,333,944	1,111,373
Total current liabilities	1,429,707	1,223,655
Deferred income taxes	10,726	16,019
Long-term operating leases	12,765	13,447
Other long-term liabilities	67,986	69,346
Total liabilities	1,521,184	1,322,467
Commitments and contingencies (Note 13)
Stockholders' equity:
Common stock $0.001 par value per share, 500,000,000 shares authorized, 181,251,037 shares outstanding at December 31, 2024 and 178,210,263 shares outstanding at June 30, 2024	181	178
Treasury stock, at cost, 10,620,260 shares at December 31, 2024 and June 30, 2024	(245,074)	(245,074)
Preferred stock, $0.001 par value, 50,000,000 shares authorized, — shares outstanding at December 31, 2024 and June 30, 2024	0	0
Additional paid-in capital	2,111,961	2,081,668
Accumulated deficit	(557,769)	(548,437)
Accumulated other comprehensive loss	(281)	(1,409)
Total stockholders' equity	1,309,018	1,286,926
Total liabilities and stockholders' equity	$ 2,830,202	$ 2,609,393

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2024	Jun. 30, 2024
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares outstanding (in shares)	181,251,037	178,210,263
Treasury stock (in shares)	10,620,260	10,620,260
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares outstanding (in shares)	0	0

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Revenues:
Recurring and other revenue	$ 167,388	$ 147,232	$ 321,387	$ 279,940
Interest income on funds held for clients	13,050	12,309	26,527	23,189
Total revenues	180,438	159,541	347,914	303,129
Cost of revenues	62,186	55,125	121,403	106,503
Gross profit	118,252	104,416	226,511	196,626
Operating expenses:
Sales and marketing	60,137	57,753	116,926	110,531
General and administrative	38,554	56,173	86,850	104,922
Research and development	18,369	16,665	35,797	30,720
Total operating expenses	117,060	130,591	239,573	246,173
Income (loss) from operations	1,192	(26,175)	(13,062)	(49,547)
Other (expense) income:
Interest expense	(1,135)	(1,153)	(2,273)	(2,397)
Other	780	(1,745)	2,450	(814)
Income (loss) before benefit for income taxes	837	(29,073)	(12,885)	(52,758)
Income tax expense (benefit)	2,885	(2,824)	(3,553)	(5,913)
Net loss	$ (2,048)	$ (26,249)	$ (9,332)	$ (46,845)
Basic net loss (in dollars per share)	$ (0.01)	$ (0.15)	$ (0.05)	$ (0.26)
Diluted net loss (in dollars per share)	$ (0.01)	$ (0.15)	$ (0.05)	$ (0.26)
Weighted average common shares outstanding:
Basic (in shares)	179,592,666	177,567,397	179,161,188	177,260,396
Diluted (in shares)	179,592,666	177,567,397	179,161,188	177,260,396

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (2,048)	$ (26,249)	$ (9,332)	$ (46,845)
Other comprehensive income (loss), net of tax:
Unrealized (loss) gain on foreign currency translation	(434)	183	(324)	15
Unrealized (loss) gain on available-for-sale securities, net of tax	(2,642)	3,273	1,452	3,099
Total other comprehensive income (loss)	(3,076)	3,456	1,128	3,114
Comprehensive loss	$ (5,124)	$ (22,793)	$ (8,204)	$ (43,731)

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Preferred stock, beginning balance (in shares) at Jun. 30, 2023		0
Stockholders' equity, beginning balance at Jun. 30, 2023	$ 1,273,684	$ 0	$ 177	$ (245,074)	$ 2,011,194	$ (489,495)	$ (3,118)
Common stock, beginning balance (in shares) at Jun. 30, 2023			176,535,236
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(46,845)					(46,845)
Stock-based compensation expense	35,964				35,964
Net settlement for taxes	(1,829)				(1,829)
Issuance of common stock under employee stock plans (in shares)			1,099,060
Issuance of common stock under employee stock plans	4,173		$ 1		4,172
Other comprehensive income (loss)	3,114						3,114
Preferred stock, ending balance (in shares) at Dec. 31, 2023		0
Stockholders' equity, ending balance at Dec. 31, 2023	1,268,261	$ 0	$ 178	(245,074)	2,049,501	(536,340)	(4)
Common stock, ending balance (in shares) at Dec. 31, 2023			177,634,296
Preferred stock, beginning balance (in shares) at Sep. 30, 2023		0
Stockholders' equity, beginning balance at Sep. 30, 2023	1,269,415	$ 0	$ 177	(245,074)	2,027,863	(510,091)	(3,460)
Common stock, beginning balance (in shares) at Sep. 30, 2023			177,104,017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(26,249)					(26,249)
Stock-based compensation expense	23,049				23,049
Net settlement for taxes	(1,411)				(1,411)
Issuance of common stock under employee stock plans (in shares)			530,279
Issuance of common stock under employee stock plans	1		$ 1
Other comprehensive income (loss)	3,456						3,456
Preferred stock, ending balance (in shares) at Dec. 31, 2023		0
Stockholders' equity, ending balance at Dec. 31, 2023	$ 1,268,261	$ 0	$ 178	(245,074)	2,049,501	(536,340)	(4)
Common stock, ending balance (in shares) at Dec. 31, 2023			177,634,296
Preferred stock, beginning balance (in shares) at Jun. 30, 2024	0	0
Stockholders' equity, beginning balance at Jun. 30, 2024	$ 1,286,926	$ 0	$ 178	(245,074)	2,081,668	(548,437)	(1,409)
Common stock, beginning balance (in shares) at Jun. 30, 2024	178,210,263		178,210,263
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (9,332)					(9,332)
Stock-based compensation expense	28,806				28,806
Net settlement for taxes	(1,957)				(1,957)
Issuance of common stock under employee stock plans (in shares)			3,040,774
Issuance of common stock under employee stock plans	3,447		$ 3		3,444
Other comprehensive income (loss)	$ 1,128						1,128
Preferred stock, ending balance (in shares) at Dec. 31, 2024	0	0
Stockholders' equity, ending balance at Dec. 31, 2024	$ 1,309,018	$ 0	$ 181	(245,074)	2,111,961	(557,769)	(281)
Common stock, ending balance (in shares) at Dec. 31, 2024	181,251,037		181,251,037
Stockholders' equity, beginning balance at Sep. 30, 2024	$ 1,299,633		$ 179	(245,074)	2,097,454	(555,721)	2,795
Common stock, beginning balance (in shares) at Sep. 30, 2024			178,821,615
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(2,048)					(2,048)
Stock-based compensation expense	16,141				16,141
Net settlement for taxes	(1,634)				(1,634)
Issuance of common stock under employee stock plans (in shares)			2,429,422
Issuance of common stock under employee stock plans	2		$ 2
Other comprehensive income (loss)	$ (3,076)						(3,076)
Preferred stock, ending balance (in shares) at Dec. 31, 2024	0	0
Stockholders' equity, ending balance at Dec. 31, 2024	$ 1,309,018	$ 0	$ 181	$ (245,074)	$ 2,111,961	$ (557,769)	$ (281)
Common stock, ending balance (in shares) at Dec. 31, 2024	181,251,037		181,251,037

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities:
Net loss	$ (9,332)	$ (46,845)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	2,848	2,997
Amortization of intangible assets and software	57,533	68,312
Amortization of deferred contract costs	38,638	29,876
Stock-based compensation expense	28,806	35,964
Deferred tax benefit	(6,040)	(5,937)
Bad debt expense	3,301	2,870
Loss on sale of investments	147	142
Loss on foreign currency exchange	442	4
Gain on lease exit	0	(29)
Naming rights accretion expense	2,012	2,061
Change in fair value of deferred consideration	(112)	2,816
Other	44	44
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable	(11,689)	(17,003)
Prepaid expenses and other assets	(6,055)	(7,487)
Accounts payable	(5,824)	(3,207)
Accrued liabilities and other	(12,757)	(10,892)
Deferred revenue	112	255
Deferred contract costs	(53,325)	(53,904)
Net cash provided by operating activities	28,749	37
Cash flows from investing activities:
Purchases of client funds available-for-sale securities	(114,162)	(151,939)
Proceeds from sale and maturities of client funds available-for-sale securities	106,052	103,453
Purchase of property and equipment	(1,756)	(2,068)
Acquisition of intangible assets	(1,553)	(4,133)
Acquisition of businesses, net of cash acquired	0	(28)
Internally developed software costs	(26,484)	(25,308)
Net cash used in investing activities	(37,903)	(80,023)
Cash flows from financing activities:
Net change in cash and cash equivalents held to satisfy client funds obligations	221,962	270,540
Payment of contingent consideration	(1,329)	0
Payment of capital expenditure financing	0	(3,689)
Repayments of debt and finance lease obligations	(597)	(536)
Withholding taxes paid related to net share settlements	(1,957)	(1,829)
Proceeds from employee stock purchase plan	3,444	4,172
Net cash provided by financing activities	221,523	268,658
Impact of foreign exchange on cash and cash equivalents	21	11
Net change in cash, cash equivalents, restricted cash and short-term investments, and funds held for clients	212,390	188,683
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, beginning of period	910,580	879,046
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, end of period	1,122,970	1,067,729
Supplemental disclosure of non-cash investing, financing and other cash flow information:
Capital expenditures in accounts payable	54	39
Cash paid for interest	0	145
Capital lease asset obtained in exchange for capital lease liabilities	0	3,393
Reconciliation of cash, cash equivalents, restricted cash and short-term investments, and funds held for clients to the Consolidated Balance Sheets
Cash and cash equivalents	114,569	61,719
Funds held for clients	1,008,401	1,006,010
Total cash, cash equivalents, restricted cash and short-term investments, and funds held for clients	$ 1,122,970	$ 1,067,729

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	6 Months Ended
	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	ORGANIZATION AND DESCRIPTION OF BUSINESS: Paycor HCM, Inc. (“Paycor HCM” or the “Company”) is a leading provider of human capital management (“HCM”) software located primarily in the United States (“U.S.”). The Company’s solutions target mid-market businesses with tens to thousands of employees. Solutions provided include payroll, human resources (“HR”) services, talent acquisition, talent management, workforce management, benefits administration, reporting and analytics, and other payroll-related services. Services are generally provided in a Software-as-a-Service (“SaaS”) delivery model utilizing a cloud-based platform.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of presentation and consolidation The accompanying interim unaudited condensed consolidated financial statements of the Company were prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim reporting. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2024 in the Company’s Annual Report on Form 10-K filed with the SEC on August 22, 2024. The unaudited condensed consolidated financial statements for interim periods do not include all disclosures required by U.S. GAAP for annual financial statements and are not necessarily indicative of results for any future interim periods and the full fiscal year ending June 30, 2025. Adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the unaudited condensed consolidated financial position, results of operations and cash flows at the dates and for the periods presented have been included. All intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the evaluation of potential impairment of goodwill and intangible assets and the valuation of stock-based compensation. The Company’s results of operations and financial condition can also be affected by economic, political, legislative, regulatory and legal actions, including but not limited to health epidemics and pandemics and their resulting economic impact. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, and government fiscal policies can have a significant effect on the Company’s results of operations and financial condition. While the Company maintains reserves for anticipated liabilities and carries various levels of insurance, the Company could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings. Accounts receivable, net of allowance for credit losses Accounts receivable balances are shown on the unaudited condensed consolidated balance sheets net of the allowance for credit losses of $7,087 and $6,358 as of December 31, 2024 and June 30, 2024, respectively. The allowance for credit losses considers factors such as historical experience, credit quality, age of the accounts receivable balance and current and forecasted economic conditions that may affect a client’s ability to pay. The Company performs ongoing credit evaluations and generally requires no collateral from clients. Management reviews individual accounts as they become past due to determine collectability. The allowance for credit losses is adjusted periodically based on management’s consideration of past due accounts as well as current and forecasted economic conditions. Individual accounts are charged against the allowance when all reasonable collection efforts have been exhausted. Sales and marketing Sales and marketing expenses consist of costs associated with the Company’s direct sales and marketing staff, including employee-related costs, marketing, advertising and promotion expenses, and other related costs. Advertising and promotion costs are expensed as incurred. Advertising and promotion expenses totaled approximately $9,125 and $8,440 for the three months ended December 31, 2024 and 2023, respectively. Advertising and promotion expenses totaled approximately $17,606 and $16,271 for the six months ended December 31, 2024 and 2023, respectively. Stock-based compensation The Company recognizes all employee and director stock-based compensation as a cost in the unaudited condensed consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of actual forfeitures, on a straight-line basis over the requisite service period for the award. On October 1, 2024, the Company granted performance-based restricted stock units (“PSUs”) to certain executive officers and other employees. The PSUs are subject to both time-based and performance-based vesting and are eligible to performance vest based on the achievement of specific revenue and net retention performance goals, each as measured over a one-year performance period commencing on the grant date. One-third of the PSUs that performance-vest at the end of such one-year performance period will be deemed fully vested, subject to continued employment through such date, and the remaining performance-vested PSUs will be subject to continued time-vesting, with such performance-vested PSUs time-vesting quarterly over the two year period following the performance period, subject to continued employment through each such time-vesting date. The total number of shares underlying the PSUs granted on October 1, 2024 was 806,455, with a target grant date fair value of $11,444 which was based on the Company’s stock price as of September 30, 2024. The Company will recognize compensation expense related to the PSUs granted over the three-year vesting period. On December 30, 2024, the Compensation and Benefits Committee approved a conversion of 1,592,220 RSUs, which has been previously granted on October 1, 2024 to certain Company employees, into the same number of shares of restricted stock. The shares of restricted stock issued upon conversion are subject to the same terms and conditions, including as to vesting, as the original RSU awards. As a result, no incremental fair value was recorded in connection with the modification of the original RSU awards. The Company establishes the grant date fair value of RSUs and PSUs based on the fair value of the Company's underlying common stock. The Company estimates the grant date fair value of stock options, including common stock purchased as a part of the Company's Employee Stock Purchase Plan (the “ESPP”), using the Black-Scholes option pricing model, which requires management to make assumptions with respect to the fair value of the Company's award on the grant date, including the expected term of the award, the expected volatility of the Company's stock calculated based on a period of time generally commensurate with the expected term of the award, the expected risk-free rate of return, and expected dividend yields of the Company's stock. The Company recognized stock-based compensation expense for the three months ended December 31, 2024 and 2023 of $16,141 and $23,049, respectively. The Company recognized stock-based compensation expense for the six months ended December 31, 2024 and 2023 of $28,806 and $35,964, respectively.

REVENUE

REVENUE	6 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE: The following table disaggregates revenue from contracts by recurring fees and implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Recurring fees $ 163,145 $ 143,330 $ 312,700 $ 272,511 Implementation services and other 4,243 3,902 8,687 7,429 Recurring and other revenue $ 167,388 $ 147,232 $ 321,387 $ 279,940 The Company recognizes deferred revenue for nonrefundable upfront fees as well as for subscription services related to certain ancillary products invoiced prior to the satisfaction of the performance obligation. The nonrefundable upfront fees related to implementation services are typically included on the client’s first invoice. Implementation fees are deferred and recognized as revenue over an estimated 24-month period to which the material right exists, which is the period the client is expected to benefit from not having to pay an additional nonrefundable implementation fee upon renewal of the service. The following table summarizes the changes in deferred revenue related to the nonrefundable upfront fees and recurring subscription services: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Balance, beginning of period $ 18,701 $ 18,712 $ 19,318 $ 18,697 Deferral of revenue 5,266 5,165 9,430 10,053 Revenue recognized (4,539) (4,950) (9,328) (9,794) Impact of foreign exchange (30) 25 (22) (4) Balance, end of period $ 19,398 $ 18,952 $ 19,398 $ 18,952 Deferred revenue is recorded within deferred revenue and other long-term liabilities on the unaudited condensed consolidated balance sheets. The Company will recognize deferred revenue of $7,787 in fiscal year 2025, $9,313 in fiscal year 2026, and $2,298 in fiscal year 2027. Deferred contract costs The following table presents the deferred contract costs balance and related amortization expense for these deferred contract costs. As of and for the Three Months Ended December 31, 2024 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 111,616 $ 10,197 $ (8,401) $ 113,412 Costs to fulfill a contract 156,453 16,428 (11,403) 161,478 Total $ 268,069 $ 26,625 $ (19,804) $ 274,890 As of and for the Three Months Ended December 31, 2023 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 97,749 $ 10,152 $ (6,666) $ 101,235 Costs to fulfill a contract 132,076 16,666 (8,844) 139,898 Total $ 229,825 $ 26,818 $ (15,510) $ 241,133 As of and for the Six Months Ended December 31, 2024 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 108,583 $ 21,249 $ (16,420) $ 113,412 Costs to fulfill a contract 151,620 32,076 (22,218) 161,478 Total $ 260,203 $ 53,325 $ (38,638) $ 274,890 As of and for the Six Months Ended December 31, 2023 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 93,317 $ 20,805 $ (12,887) $ 101,235 Costs to fulfill a contract 123,788 33,099 (16,989) 139,898 Total $ 217,105 $ 53,904 $ (29,876) $ 241,133

FUNDS HELD FOR CLIENTS

FUNDS HELD FOR CLIENTS	6 Months Ended
	Dec. 31, 2024
Funds Held For Clients [Abstract]
FUNDS HELD FOR CLIENTS	FUNDS HELD FOR CLIENTS: Funds held for clients are as follows: December 31, 2024 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 1,008,401 $ — $ — $ 1,008,401 U.S. Treasury and direct obligations of U.S. government agencies 73,075 14 (11) 73,078 Corporate bonds 227,877 71 (48) 227,900 Other securities 23,979 12 (2) 23,989 $ 1,333,332 $ 97 $ (61) $ 1,333,368 June 30, 2024 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 792,622 $ — $ — $ 792,622 U.S. Treasury and direct obligations of U.S. government agencies 91,378 18 (413) 90,983 Corporate bonds 206,981 123 (1,178) 205,926 Other securities 19,783 9 (187) 19,605 $ 1,110,764 $ 150 $ (1,778) $ 1,109,136 Other securities are primarily comprised of municipal obligations. Proceeds from sales and maturities of investment securities for the three months ended December 31, 2024 and 2023 were approximately $27,917 and $79,801, respectively. Proceeds from sales and maturities of investment securities for the six months ended December 31, 2024 and 2023 were approximately $106,052 and $103,453, respectively. The Company is exposed to interest rate risk as rate volatility will cause fluctuations in the earnings potential of future investments. The Company does not utilize derivative financial instruments to manage interest rate risk. The Company reviews its investments on an ongoing basis to determine if any allowance for credit loss is warranted due to changes in credit risk or other potential valuation concerns. The Company has no material individual securities that have been in a continuous unrealized loss position greater than twelve months. The Company believes unrealized losses, to the extent they exist, generally result from changes in interest rates rather than credit risk, and therefore does not believe the related investments need to be assessed to determine whether an allowance for the credit loss is warranted. Additionally, the Company believes it will recover its cost basis in the securities with unrealized losses and has the ability to hold the securities until they recover in value and had no intent to sell them at December 31, 2024. Expected maturities as of December 31, 2024 for client fund assets are as follows: Due within fiscal year 2025 $ 1,036,828 Due within fiscal year 2026 83,243 Due within fiscal year 2027 118,298 Due within fiscal year 2028 56,941 Due within fiscal year 2029 23,014 Thereafter 15,044 Total $ 1,333,368

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	6 Months Ended
	Dec. 31, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET: A summary of the Company’s property and equipment, net is as follows: December 31, June 30, Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 25,439 23,824 Furniture and fixtures 2,246 2,249 Office equipment 2,942 2,902 Leasehold improvements 5,241 5,205 Construction in progress 169 174 63,472 61,789 Accumulated depreciation and amortization (29,385) (26,569) Property and equipment, net $ 34,087 $ 35,220

CAPITALIZED SOFTWARE, NET

CAPITALIZED SOFTWARE, NET	6 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
CAPITALIZED SOFTWARE, NET	CAPITALIZED SOFTWARE, NET: A summary of the Company’s capitalized software, net is as follows: December 31, June 30, Capitalized software $ 203,003 $ 176,519 Accumulated amortization (130,957) (109,143) Capitalized software, net $ 72,046 $ 67,376 Amortization expense for capitalized software was approximately $11,169 and $9,166 for the three months ended December 31, 2024 and 2023, respectively. Amortization expense for capitalized software was approximately $21,814 and $17,639 for the six months ended December 31, 2024 and 2023, respectively. The following is a schedule of future amortization expense as of December 31, 2024: 2025 (remaining six months) $ 30,571 2026 28,916 2027 12,227 2028 332 $ 72,046

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	6 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS: Changes in the carrying amount of goodwill are presented below: Balance at June 30, 2024 $ 766,653 Foreign currency translation (749) Balance at December 31, 2024 $ 765,904 Components of intangible assets were as follows: December 31, June 30, Cost: Technology $ 153,854 $ 153,562 Customer relationships 470,844 469,583 Trade name 105,670 105,670 Naming rights 66,698 66,698 Total cost $ 797,066 $ 795,513 Accumulated amortization: Technology $ (146,659) $ (144,870) Customer relationships (459,392) (431,101) Trade name (43,454) (39,932) Naming rights (10,234) (8,117) Total accumulated amortization $ (659,739) $ (624,020) Intangible assets, net $ 137,327 $ 171,493 Amortization expense for intangible assets was approximately $12,023 and $24,963 for the three months ended December 31, 2024 and 2023, respectively. Amortization expense for intangible assets was approximately $35,719 and $50,673 for the six months ended December 31, 2024 and 2023, respectively. The following is a schedule of future amortization expense as of December 31, 2024: 2025 (remaining six months) $ 11,919 2026 19,650 2027 12,897 2028 12,368 2029 12,244 Thereafter 68,249 $ 137,327

DEBT AGREEMENTS AND LETTERS OF

DEBT AGREEMENTS AND LETTERS OF CREDIT	6 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
DEBT AGREEMENTS AND LETTERS OF CREDIT	DEBT AGREEMENTS AND LETTERS OF CREDIT: Credit Agreement Paycor is party to a credit agreement (as amended, the “Credit Agreement”) with PNC Bank, National Association (“PNC”), Fifth Third, National Association, and other lenders, providing a $200,000 senior secured revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility includes an “accordion feature” that allows the Company, under certain circumstances, to increase the size of the Revolving Credit Facility by an additional principal amount of up to $200,000, with a resulting maximum principal amount of $400,000, subject to the participating lenders electing to increase their commitments or new lenders being added to the Credit Agreement. The Revolving Credit Facility will mature on June 11, 2026. The Company had no outstanding borrowings under the Revolving Credit Facility as of December 31, 2024 and June 30, 2024. Additionally, the Company had no outstanding letters of credit as of December 31, 2024 and June 30, 2024.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Dec. 31, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS: U.S. GAAP defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company can access. Level 2 inputs are inputs (other than quoted prices included within Level 1) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability and rely on management’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. The fair value of certain assets, such as nonfinancial assets, primarily long-lived assets, goodwill, intangible assets and certain other assets, are recognized or disclosed in connection with impairment evaluations. All non-recurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, and accounts payable approximated fair value as of December 31, 2024 and June 30, 2024, because of the relatively short maturity of these instruments. The following table presents information on the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 and June 30, 2024: December 31, 2024 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 1,008,401 $ — $ — $ 1,008,401 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 73,078 — 73,078 Corporate bonds — 227,900 — 227,900 Other securities — 23,989 — 23,989 $ 1,008,401 $ 324,967 $ — $ 1,333,368 June 30, 2024 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 792,622 $ — $ — $ 792,622 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 90,983 — 90,983 Corporate bonds — 205,926 — 205,926 Other securities — 19,605 — 19,605 $ 792,622 $ 316,514 $ — $ 1,109,136 Cash and cash equivalents included in Level 1 are valued using closing prices for identical instruments that are traded on active exchanges. Available-for-sale securities included in Level 2 are valued by reference to quoted prices of similar assets in active markets, adjusted for any terms specific to that asset.

CAPITAL STOCK

CAPITAL STOCK	6 Months Ended
	Dec. 31, 2024
Equity [Abstract]
CAPITAL STOCK	CAPITAL STOCK: The Company’s Second Amended and Restated Certificate of Incorporation authorizes the issuance of up to 500,000,000 shares of common stock with a par value of $0.001 per share and 50,000,000 shares of preferred stock with a par value of $0.001 per share. As of December 31, 2024 and June 30, 2024, there were 181,251,037 and 178,210,263 shares of common stock outstanding, respectively, and no shares of preferred stock outstanding.

NET LOSS PER SHARE

NET LOSS PER SHARE	6 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NET LOSS PER SHARE: Basic net loss per share is calculated by dividing net loss by the weighted average shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) adjusted as necessary for the impact of potentially dilutive securities, by the weighted average shares outstanding during the period and the impact of securities that would have a dilutive effect. Potentially dilutive securities during the three and six months ended December 31, 2024 and 2023 included RSUs, PSUs, stock options and ESPP purchase rights. Due to the net loss for both the three and six months ended December 31, 2024 and 2023, any potentially dilutive securities were excluded from the denominator in calculating diluted net loss per share because including them would have had an anti-dilutive effect. Additionally, the Company excluded the impact of stock-based compensation awards held by certain employees consisting of membership interest units in Pride Aggregator for both the three and six months ended December 31, 2024 and 2023. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended December 31, Six Months Ended December 31, (in thousands, except per share data) 2024 2023 2024 2023 Net loss $ (2,048) $ (26,249) $ (9,332) $ (46,845) Weighted average common shares outstanding: Basic and diluted 179,592,666 177,567,397 179,161,188 177,260,396 Basic and diluted net loss per share $ (0.01) $ (0.15) $ (0.05) $ (0.26)

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES: The Company’s effective income tax rate was 27.6% and 11.2% for the six months ended December 31, 2024 and 2023, respectively. The effective tax rate for the six months ended December 31, 2024 was higher compared to the prior year period and is primarily attributable to a lower loss before benefit for income taxes recognized for the current period, nondeductible equity compensation, and a valuation allowance primarily driven by Internal Revenue Code Section 174 amortization of research and development expenses.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES: The Company is subject to various claims, litigation and regulatory compliance matters in the normal course of business. When a loss is considered probable and reasonably estimable, the Company records a liability in the amount of its best estimate for the ultimate loss. The resolution of these claims, litigation and regulatory compliance matters, individually or in the aggregate, is not expected to have a material adverse impact on the Company’s unaudited condensed consolidated statements of operations, balance sheets or statements of cash flows. These matters are subject to inherent uncertainties and management’s view of these matters may change in the future.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Dec. 31, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT: On January 7, 2025, the Company entered into the Merger Agreement with Paychex and Merger Sub. Pursuant to the Merger Agreement, Merger Sub will be merged with and into the Company, with the Company surviving as a wholly owned subsidiary of Paychex. Subject to the terms and conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of the Company’s common stock (other than shares of common stock (i) held by the Company as treasury stock or owned by Paychex or Merger Sub immediately prior to the Effective Time or (ii) held by any subsidiary of either the Company or Paychex (other than Merger Sub) immediately prior to the Effective Time (in each case, other than shares of common stock held by any such person in a trustee, custodian or nominee capacity for the account of clients or customers of such persons)) issued and outstanding immediately prior to the Effective Time (other than shares held by any holder who is entitled to appraisal rights and has properly exercised such rights under Delaware law) will be converted into the right to receive $22.50 in cash, without interest. Completion of the Merger is subject to certain customary closing conditions.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Pay vs Performance Disclosure
Net loss	$ (2,048)	$ (26,249)	$ (9,332)	$ (46,845)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation and consolidation
Consolidation	Adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the unaudited condensed consolidated financial position, results of operations and cash flows at the dates and for the periods presented have been included. All intercompany transactions and balances have been eliminated in consolidation.
Use of estimates	Use of estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the evaluation of potential impairment of goodwill and intangible assets and the valuation of stock-based compensation.
Accounts receivable, net of allowance for credit losses	Accounts receivable, net of allowance for credit losses
Sales and marketing	Sales and marketing
Stock-based compensation	Stock-based compensation The Company recognizes all employee and director stock-based compensation as a cost in the unaudited condensed consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of actual forfeitures, on a straight-line basis over the requisite service period for the award.

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregated Revenues	The following table disaggregates revenue from contracts by recurring fees and implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Recurring fees $ 163,145 $ 143,330 $ 312,700 $ 272,511 Implementation services and other 4,243 3,902 8,687 7,429 Recurring and other revenue $ 167,388 $ 147,232 $ 321,387 $ 279,940 The following table summarizes the changes in deferred revenue related to the nonrefundable upfront fees and recurring subscription services: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Balance, beginning of period $ 18,701 $ 18,712 $ 19,318 $ 18,697 Deferral of revenue 5,266 5,165 9,430 10,053 Revenue recognized (4,539) (4,950) (9,328) (9,794) Impact of foreign exchange (30) 25 (22) (4) Balance, end of period $ 19,398 $ 18,952 $ 19,398 $ 18,952
Schedule of Capitalized Contract Costs	The following table presents the deferred contract costs balance and related amortization expense for these deferred contract costs. As of and for the Three Months Ended December 31, 2024 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 111,616 $ 10,197 $ (8,401) $ 113,412 Costs to fulfill a contract 156,453 16,428 (11,403) 161,478 Total $ 268,069 $ 26,625 $ (19,804) $ 274,890 As of and for the Three Months Ended December 31, 2023 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 97,749 $ 10,152 $ (6,666) $ 101,235 Costs to fulfill a contract 132,076 16,666 (8,844) 139,898 Total $ 229,825 $ 26,818 $ (15,510) $ 241,133 As of and for the Six Months Ended December 31, 2024 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 108,583 $ 21,249 $ (16,420) $ 113,412 Costs to fulfill a contract 151,620 32,076 (22,218) 161,478 Total $ 260,203 $ 53,325 $ (38,638) $ 274,890 As of and for the Six Months Ended December 31, 2023 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 93,317 $ 20,805 $ (12,887) $ 101,235 Costs to fulfill a contract 123,788 33,099 (16,989) 139,898 Total $ 217,105 $ 53,904 $ (29,876) $ 241,133

FUNDS HELD FOR CLIENTS (Tables)

FUNDS HELD FOR CLIENTS (Tables)	6 Months Ended
	Dec. 31, 2024
Funds Held For Clients [Abstract]
Schedule of Investments	Funds held for clients are as follows: December 31, 2024 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 1,008,401 $ — $ — $ 1,008,401 U.S. Treasury and direct obligations of U.S. government agencies 73,075 14 (11) 73,078 Corporate bonds 227,877 71 (48) 227,900 Other securities 23,979 12 (2) 23,989 $ 1,333,332 $ 97 $ (61) $ 1,333,368 June 30, 2024 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 792,622 $ — $ — $ 792,622 U.S. Treasury and direct obligations of U.S. government agencies 91,378 18 (413) 90,983 Corporate bonds 206,981 123 (1,178) 205,926 Other securities 19,783 9 (187) 19,605 $ 1,110,764 $ 150 $ (1,778) $ 1,109,136
Schedule of Investments Classified by Contractual Maturity Date	Expected maturities as of December 31, 2024 for client fund assets are as follows: Due within fiscal year 2025 $ 1,036,828 Due within fiscal year 2026 83,243 Due within fiscal year 2027 118,298 Due within fiscal year 2028 56,941 Due within fiscal year 2029 23,014 Thereafter 15,044 Total $ 1,333,368

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	6 Months Ended
	Dec. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment at Cost and Accumulated Depreciation	A summary of the Company’s property and equipment, net is as follows: December 31, June 30, Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 25,439 23,824 Furniture and fixtures 2,246 2,249 Office equipment 2,942 2,902 Leasehold improvements 5,241 5,205 Construction in progress 169 174 63,472 61,789 Accumulated depreciation and amortization (29,385) (26,569) Property and equipment, net $ 34,087 $ 35,220

CAPITALIZED SOFTWARE, NET (Tabl

CAPITALIZED SOFTWARE, NET (Tables)	6 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Components of Capitalized Software	A summary of the Company’s capitalized software, net is as follows: December 31, June 30, Capitalized software $ 203,003 $ 176,519 Accumulated amortization (130,957) (109,143) Capitalized software, net $ 72,046 $ 67,376 Components of intangible assets were as follows: December 31, June 30, Cost: Technology $ 153,854 $ 153,562 Customer relationships 470,844 469,583 Trade name 105,670 105,670 Naming rights 66,698 66,698 Total cost $ 797,066 $ 795,513 Accumulated amortization: Technology $ (146,659) $ (144,870) Customer relationships (459,392) (431,101) Trade name (43,454) (39,932) Naming rights (10,234) (8,117) Total accumulated amortization $ (659,739) $ (624,020) Intangible assets, net $ 137,327 $ 171,493
Schedule of Future Amortization Expense	The following is a schedule of future amortization expense as of December 31, 2024: 2025 (remaining six months) $ 30,571 2026 28,916 2027 12,227 2028 332 $ 72,046 The following is a schedule of future amortization expense as of December 31, 2024: 2025 (remaining six months) $ 11,919 2026 19,650 2027 12,897 2028 12,368 2029 12,244 Thereafter 68,249 $ 137,327

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	6 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Goodwill	Changes in the carrying amount of goodwill are presented below: Balance at June 30, 2024 $ 766,653 Foreign currency translation (749) Balance at December 31, 2024 $ 765,904
Schedule of Components of Intangible Assets	A summary of the Company’s capitalized software, net is as follows: December 31, June 30, Capitalized software $ 203,003 $ 176,519 Accumulated amortization (130,957) (109,143) Capitalized software, net $ 72,046 $ 67,376 Components of intangible assets were as follows: December 31, June 30, Cost: Technology $ 153,854 $ 153,562 Customer relationships 470,844 469,583 Trade name 105,670 105,670 Naming rights 66,698 66,698 Total cost $ 797,066 $ 795,513 Accumulated amortization: Technology $ (146,659) $ (144,870) Customer relationships (459,392) (431,101) Trade name (43,454) (39,932) Naming rights (10,234) (8,117) Total accumulated amortization $ (659,739) $ (624,020) Intangible assets, net $ 137,327 $ 171,493
Schedule of Future Amortization Expense	The following is a schedule of future amortization expense as of December 31, 2024: 2025 (remaining six months) $ 30,571 2026 28,916 2027 12,227 2028 332 $ 72,046 The following is a schedule of future amortization expense as of December 31, 2024: 2025 (remaining six months) $ 11,919 2026 19,650 2027 12,897 2028 12,368 2029 12,244 Thereafter 68,249 $ 137,327

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Dec. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis	The following table presents information on the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 and June 30, 2024: December 31, 2024 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 1,008,401 $ — $ — $ 1,008,401 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 73,078 — 73,078 Corporate bonds — 227,900 — 227,900 Other securities — 23,989 — 23,989 $ 1,008,401 $ 324,967 $ — $ 1,333,368 June 30, 2024 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 792,622 $ — $ — $ 792,622 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 90,983 — 90,983 Corporate bonds — 205,926 — 205,926 Other securities — 19,605 — 19,605 $ 792,622 $ 316,514 $ — $ 1,109,136

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	6 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
Schedule of Earnings (Loss) Per Share	The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended December 31, Six Months Ended December 31, (in thousands, except per share data) 2024 2023 2024 2023 Net loss $ (2,048) $ (26,249) $ (9,332) $ (46,845) Weighted average common shares outstanding: Basic and diluted 179,592,666 177,567,397 179,161,188 177,260,396 Basic and diluted net loss per share $ (0.01) $ (0.15) $ (0.05) $ (0.26)

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Oct. 01, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023	Dec. 30, 2024	Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accounts receivable, allowance for credit loss		$ 7,087		$ 7,087			$ 6,358
Advertising and promotion expense		9,125	$ 8,440	17,606	$ 16,271
Stock-based compensation expense		$ 16,141	$ 23,049	$ 28,806	$ 35,964
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award performance period	1 year
Award vesting period	3 years
Granted (in shares)	806,455
Shares granted, target value	$ 11,444
Performance Shares | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	33.33%
Performance Shares | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	2 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Approved conversion (in shares)						1,592,220

REVENUE - Contract with Custome

REVENUE - Contract with Customer (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Recurring and other revenue	$ 167,388	$ 147,232	$ 321,387	$ 279,940
Recurring fees
Disaggregation of Revenue [Line Items]
Recurring and other revenue	163,145	143,330	312,700	272,511
Implementation services and other
Disaggregation of Revenue [Line Items]
Recurring and other revenue	$ 4,243	$ 3,902	$ 8,687	$ 7,429

REVENUE - Narrative (Details)

REVENUE - Narrative (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Implementation fee recognition period	24 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Implementation services, remaining performance obligation, period	6 months
Revenue, remaining performance obligation, amount	$ 7,787
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Implementation services, remaining performance obligation, period	1 year
Revenue, remaining performance obligation, amount	$ 9,313
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Implementation services, remaining performance obligation, period	1 year
Revenue, remaining performance obligation, amount	$ 2,298

REVENUE - Deferred Revenue (Det

REVENUE - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Contract with Customer, Liability Activity [Roll Forward]
Balance, beginning of period	$ 18,701	$ 18,712	$ 19,318	$ 18,697
Deferral of revenue	5,266	5,165	9,430	10,053
Revenue recognized	(4,539)	(4,950)	(9,328)	(9,794)
Impact of foreign exchange	(30)	25	(22)	(4)
Balance, end of period	$ 19,398	$ 18,952	$ 19,398	$ 18,952

REVENUE - Deferred Contract Cos

REVENUE - Deferred Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Capitalized Contract Cost, Activity [Roll Forward]
Beginning Balance	$ 268,069	$ 229,825	$ 260,203	$ 217,105
Capitalization of Costs	26,625	26,818	53,325	53,904
Amortization	(19,804)	(15,510)	(38,638)	(29,876)
Ending Balance	$ 274,890	241,133	$ 274,890	241,133
Capitalized contract cost, amortization period	6 years		6 years
Costs to obtain a contract
Capitalized Contract Cost, Activity [Roll Forward]
Beginning Balance	$ 111,616	97,749	$ 108,583	93,317
Capitalization of Costs	10,197	10,152	21,249	20,805
Amortization	(8,401)	(6,666)	(16,420)	(12,887)
Ending Balance	113,412	101,235	113,412	101,235
Costs to fulfill a contract
Capitalized Contract Cost, Activity [Roll Forward]
Beginning Balance	156,453	132,076	151,620	123,788
Capitalization of Costs	16,428	16,666	32,076	33,099
Amortization	(11,403)	(8,844)	(22,218)	(16,989)
Ending Balance	$ 161,478	$ 139,898	$ 161,478	$ 139,898

FUNDS HELD FOR CLIENTS - Schedu

FUNDS HELD FOR CLIENTS - Schedule of Funds Held for Clients (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Demand deposit accounts and other cash equivalents, Amortized Cost	$ 114,569	$ 117,958	$ 61,719
Funds held for clients, Amortized Cost	1,333,332	1,110,764
Funds held for clients, Gross Unrealized Gains	97	150
Funds held for clients, Gross Unrealized Losses	(61)	(1,778)
Funds held for clients	1,333,368	1,109,136
U.S. Treasury and direct obligations of U.S. government agencies
Schedule of Investments [Line Items]
Debt securities, available-for-sale, Amortized Cost	73,075	91,378
Debt securities, available-for-sale, Gross Unrealized Gains	14	18
Debt securities, available-for-sale, Gross Unrealized Losses	(11)	(413)
Debt securities, available-for-sale, Fair Value	73,078	90,983
Corporate bonds
Schedule of Investments [Line Items]
Debt securities, available-for-sale, Amortized Cost	227,877	206,981
Debt securities, available-for-sale, Gross Unrealized Gains	71	123
Debt securities, available-for-sale, Gross Unrealized Losses	(48)	(1,178)
Debt securities, available-for-sale, Fair Value	227,900	205,926
Other securities
Schedule of Investments [Line Items]
Debt securities, available-for-sale, Amortized Cost	23,979	19,783
Debt securities, available-for-sale, Gross Unrealized Gains	12	9
Debt securities, available-for-sale, Gross Unrealized Losses	(2)	(187)
Debt securities, available-for-sale, Fair Value	23,989	19,605
Demand deposit accounts and other cash equivalents
Schedule of Investments [Line Items]
Demand deposit accounts and other cash equivalents, Amortized Cost	1,008,401	792,622
Demand deposit accounts and other cash equivalents, Gross Unrealized Gains	0	0
Demand deposit accounts and other cash equivalents, Gross Unrealized Losses	0	0
Demand deposit accounts and other cash equivalents, Fair Value	$ 1,008,401	$ 792,622

FUNDS HELD FOR CLIENTS - Narrat

FUNDS HELD FOR CLIENTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Funds Held For Clients [Abstract]
Proceeds from sales and maturities of investment securities	$ 27,917	$ 79,801	$ 106,052	$ 103,453

FUNDS HELD FOR CLIENTS - Sche_2

FUNDS HELD FOR CLIENTS - Schedule of Expected Maturities (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Funds Held For Clients [Abstract]
Due within fiscal year 2025	$ 1,036,828
Due within fiscal year 2026	83,243
Due within fiscal year 2027	118,298
Due within fiscal year 2028	56,941
Due within fiscal year 2029	23,014
Thereafter	15,044
Total	$ 1,333,368

PROPERTY AND EQUIPMENT, NET - S

PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment at Cost and Accumulated Depreciation (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Property, Plant and Equipment [Line Items]
Property and equipment and finance lease right-of-use asset, gross	$ 63,472	$ 61,789
Accumulated depreciation and amortization	(29,385)	(26,569)
Property and equipment, net	34,087	35,220
Land
Property, Plant and Equipment [Line Items]
Property and equipment and finance lease right-of-use asset, gross	3,680	3,680
Land improvements
Property, Plant and Equipment [Line Items]
Property and equipment and finance lease right-of-use asset, gross	910	910
Building and improvements
Property, Plant and Equipment [Line Items]
Property and equipment and finance lease right-of-use asset, gross	22,845	22,845
Computer, equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment and finance lease right-of-use asset, gross	25,439	23,824
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment and finance lease right-of-use asset, gross	2,246	2,249
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment and finance lease right-of-use asset, gross	2,942	2,902
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment and finance lease right-of-use asset, gross	5,241	5,205
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment and finance lease right-of-use asset, gross	$ 169	$ 174

PROPERTY AND EQUIPMENT, NET - N

PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,397	$ 1,486	$ 2,848	$ 2,997

CAPITALIZED SOFTWARE, NET - Sch

CAPITALIZED SOFTWARE, NET - Schedule of Components of Capitalized Software (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized software	$ 203,003	$ 176,519
Accumulated amortization	(130,957)	(109,143)
Capitalized software, net	$ 72,046	$ 67,376

CAPITALIZED SOFTWARE, NET - Nar

CAPITALIZED SOFTWARE, NET - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized computer software, amortization	$ 11,169	$ 9,166	$ 21,814	$ 17,639

CAPITALIZED SOFTWARE, NET - S_2

CAPITALIZED SOFTWARE, NET - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
2025 (remaining six months)	$ 30,571
2026	28,916
2027	12,227
2028	332
Capitalized software, net	$ 72,046	$ 67,376

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Schedule of Changes in Goodwill (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2024 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 766,653
Foreign currency translation	(749)
Goodwill, ending balance	$ 765,904

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets, excluding software	$ 12,023	$ 24,963	$ 35,719	$ 50,673

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS - Schedule of Components of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 797,066	$ 795,513
Accumulated amortization:	(659,739)	(624,020)
Intangible assets, net	137,327	171,493
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	153,854	153,562
Accumulated amortization:	(146,659)	(144,870)
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	470,844	469,583
Accumulated amortization:	(459,392)	(431,101)
Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	105,670	105,670
Accumulated amortization:	(43,454)	(39,932)
Naming rights
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	66,698	66,698
Accumulated amortization:	$ (10,234)	$ (8,117)

GOODWILL AND INTANGIBLE ASSET_5

GOODWILL AND INTANGIBLE ASSETS - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
2025 (remaining six months)	$ 11,919
2026	19,650
2027	12,897
2028	12,368
2029	12,244
Thereafter	68,249
Intangible assets, net	$ 137,327	$ 171,493

DEBT AGREEMENTS AND LETTERS O_2

DEBT AGREEMENTS AND LETTERS OF CREDIT - Narrative (Details) - USD ($)	Dec. 31, 2024	Jun. 30, 2024
Debt Instrument [Line Items]
Long-term debt, net	$ 0	$ 0
Letters of credit outstanding, amount	0	$ 0
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Line of credit facility, current borrowing capacity	200,000,000
Line of credit, maximum increase	200,000,000
Line of credit, maximum borrowing capacity	$ 400,000,000

FAIR VALUE MEASUREMENTS - Sched

FAIR VALUE MEASUREMENTS - Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
U.S. Treasury and direct obligations of U.S. government agencies
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	$ 73,078	$ 90,983
Corporate bonds
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	227,900	205,926
Other securities
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	23,989	19,605
Fair Value, Recurring
Funds held for clients—available-for-sale:
Assets, fair value disclosure	1,333,368	1,109,136
Fair Value, Recurring | U.S. Treasury and direct obligations of U.S. government agencies
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	73,078	90,983
Fair Value, Recurring | Corporate bonds
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	227,900	205,926
Fair Value, Recurring | Other securities
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	23,989	19,605
Fair Value, Recurring | Level 1
Funds held for clients—available-for-sale:
Assets, fair value disclosure	1,008,401	792,622
Fair Value, Recurring | Level 1 | U.S. Treasury and direct obligations of U.S. government agencies
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	0	0
Fair Value, Recurring | Level 1 | Corporate bonds
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	0	0
Fair Value, Recurring | Level 1 | Other securities
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	0	0
Fair Value, Recurring | Level 2
Funds held for clients—available-for-sale:
Assets, fair value disclosure	324,967	316,514
Fair Value, Recurring | Level 2 | U.S. Treasury and direct obligations of U.S. government agencies
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	73,078	90,983
Fair Value, Recurring | Level 2 | Corporate bonds
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	227,900	205,926
Fair Value, Recurring | Level 2 | Other securities
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	23,989	19,605
Fair Value, Recurring | Level 3
Funds held for clients—available-for-sale:
Assets, fair value disclosure	0	0
Fair Value, Recurring | Level 3 | U.S. Treasury and direct obligations of U.S. government agencies
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	0	0
Fair Value, Recurring | Level 3 | Corporate bonds
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	0	0
Fair Value, Recurring | Level 3 | Other securities
Funds held for clients—available-for-sale:
Debt securities, available-for-sale	0	0
Demand deposit accounts and other cash equivalents
Funds held for clients—cash and cash equivalents:
Demand deposit accounts and other cash equivalents	1,008,401	792,622
Demand deposit accounts and other cash equivalents | Fair Value, Recurring
Funds held for clients—cash and cash equivalents:
Demand deposit accounts and other cash equivalents	1,008,401	792,622
Demand deposit accounts and other cash equivalents | Fair Value, Recurring | Level 1
Funds held for clients—cash and cash equivalents:
Demand deposit accounts and other cash equivalents	1,008,401	792,622
Demand deposit accounts and other cash equivalents | Fair Value, Recurring | Level 2
Funds held for clients—cash and cash equivalents:
Demand deposit accounts and other cash equivalents	0	0
Demand deposit accounts and other cash equivalents | Fair Value, Recurring | Level 3
Funds held for clients—cash and cash equivalents:
Demand deposit accounts and other cash equivalents	$ 0	$ 0

CAPITAL STOCK - Narrative (Deta

CAPITAL STOCK - Narrative (Details) - $ / shares	Dec. 31, 2024	Jun. 30, 2024
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares outstanding (in shares)	181,251,037	178,210,263
Preferred stock, shares outstanding (in shares)	0	0
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares outstanding (in shares)	0	0

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Earnings Per Share [Abstract]
Net loss	$ (2,048)	$ (26,249)	$ (9,332)	$ (46,845)
Weighted average common shares outstanding:
Basic (in shares)	179,592,666	177,567,397	179,161,188	177,260,396
Diluted (in shares)	179,592,666	177,567,397	179,161,188	177,260,396
Basic net loss (in dollars per share)	$ (0.01)	$ (0.15)	$ (0.05)	$ (0.26)
Diluted net loss (in dollars per share)	$ (0.01)	$ (0.15)	$ (0.05)	$ (0.26)

INCOME TAXES - 10Q Narrative (D

INCOME TAXES - 10Q Narrative (Details)	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	27.60%	11.20%

SUBSEQUENT EVENT - Narrative (D

SUBSEQUENT EVENT - Narrative (Details)	Jan. 07, 2025 $ / shares
Paychex Inc. And Merger Sub. | Subsequent Event
Subsequent Event [Line Items]
Business acquisition, share price (in dollars per share)	$ 22.50