Strategic Investments

6 Months Ended

Mar. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

Strategic Investments

NOTE 5: STRATEGIC INVESTMENTS

Cash Converters International Limited

As of March 31, 2025, we owned 273,939,157 shares, or approximately 43.7%, of Cash Converters. We acquired our original investment in November 2009 and have increased our ownership through the acquisition of additional shares periodically since that time.

We received cash dividends from Cash Converters of $1.9 million and $1.7 million during the six months ended March 31, 2025 and 2024, respectively. In April 2025, we received a cash dividend of $1.7 million from Cash Converters.

The following tables present summary financial information for Cash Converters’ most recently reported results as applicable after translation to U.S. dollars:

	December 31,
(in thousands)	2024		2023
Current assets	$	171,745	$	186,572
Non-current assets	118,223		137,271
Total assets	$	289,968	$	323,843
Current liabilities	$	90,332	$	101,097
Non-current liabilities	63,455		79,926
Shareholders’ equity	136,181		142,820
Total liabilities and shareholders’ equity	$	289,968	$	323,843

	Half-Year Ended December 31,
(in thousands)	2024		2023
Gross revenues	$	126,947	$	124,874
Gross profit	$	81,456	$	73,675
Net profit	$	7,973	$	6,499

During the three and six months ended March 31, 2025, we recorded our share of income of $1.9 million and $3.5 million, respectively, from Cash Converters, included in “Equity in net income of unconsolidated affiliates” in the condensed consolidated statements of operations. During the three and six months ended March 31, 2024, we recorded our share of income of $1.7 million and $2.9 million, respectively, from Cash Converters.

See Note 6: Fair Value Measurements for the fair value and carrying value of our investment in Cash Converters.

Founders One, LLC

In fiscal 2022, we invested $15.0 million in exchange for a non-redeemable voting participating preferred equity interest in Founders One, LLC (“Founders”), a then newly-formed entity with one other member. In fiscal 2023, we contributed an additional $15.0 million associated with our preferred interest and loaned Founders $15.0 million in exchange for a Demand Promissory Note secured by the common interest held by the other member. In fiscal 2024, we contributed an additional $15.0 million associated with our preferred interest, bringing our total preferred equity investment in Founders to $45.0 million.

We have an interest in Founders, a variable interest entity, but because the Company is not the primary beneficiary, we do not consolidate Founders. Further, as we are not the appointed manager, we do not have the ability to direct the activities of the investment entity that most significantly impact its economic performance. Consequently, our preferred equity investment in Founders is accounted for utilizing the measurement alternative within ASC 321, Investments — Equity Securities. As of March 31, 2025, our $45.0 million carrying value of the preferred equity investment and $15.0 million Demand Promissory Note are included in “Other investments” and “Prepaid expenses and other current assets” in our condensed consolidated balance sheets, respectively. As of March 31, 2025, our maximum exposure for losses related to our investment in Founders was our $45.0 million preferred equity investment and $15.0 million Demand Promissory Note plus accrued and unpaid interest.

See Note 6: Fair Value Measurements for the fair value and carrying value of our loan to Founders.