Acquisitions

12 Months Ended

Sep. 30, 2025

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

Acquisitions

NOTE 3: ACQUISITIONS

On June 17, 2025, we acquired 40 pawn stores across 13 states in Mexico from Monte Primavera, S.A. de C.V. and Valuer, S.A. de C.V. The stores, operating under the names “Monte Providencia” and “Tu Empeño Efectivo,” offer traditional pawn loans, as well as auto pawn transactions, some of which are in stand-alone auto pawn stores. During the fourth quarter of fiscal 2025, we closed on the remaining 7 stores in accordance with the purchase agreement.

The total consideration was $20.3 million in cash, of which, approximately $5.4 million was retained for standard indemnification purposes and is expected to be paid over the next five years. The retained payment is included in long-term restricted cash and the associated consideration payable is included in other long-term liabilities on our consolidated balance sheet as of September 30, 2025.

This transaction qualifies as a business combination under ASC 805 due to the acquisition of an integrated set of inputs and processes that are capable of generating outputs. Although the transaction includes tangible assets such as loans and inventory, the inclusion of operating infrastructure, licenses, and a functioning workforce supports the conclusion that a business, rather than a group of assets, was acquired.

The assets acquired and liabilities assumed are based upon the fair values at the date of acquisition. The excess purchase price over the estimated fair market value of the net assets acquired has been recorded as goodwill.

The final purchase price allocation is as follows (in thousands):

Assets acquired:
Cash and cash equivalents	$	39
Pawn loans	5,860
Pawn service charges receivable	354
Inventory	1,660
Prepaid expenses and other current assets	81
Property and equipment	507
Right-of-use assets	4,487
Goodwill	12,045
Total assets acquired	25,033
Liabilities assumed:
Customer layaway deposits	144
Operating lease liabilities	4,463
Other long-term liabilities	119
Total liabilities assumed	4,726
Total consideration	20,307
Retained Payment	(5,362)
Cash Paid	$	14,945

As a result of further refining our estimates and assumptions since the date of the acquisition, we recorded measurement period adjustments to the initial purchase price allocation. Adjustments were primarily made to goodwill, pawn service charges receivable, inventory and customer deposits. These measurement period adjustments resulted in an increase of approximately $0.5 million to goodwill.

The factors contributing to the recognition of goodwill, which is recorded in our Latin America Pawn segment, were based on several strategic benefits we expect to realize from the acquisition, including expansion of our store base and the ability to further leverage our pawn expertise. We expect none of the goodwill resulting from this business combination will be deductible for income tax purposes.

The results of this acquisition have been included in our consolidated financial statements from June 17, 2025 through September 30, 2025 and are reported in our Latin America Pawn segment. The acquired business contributed revenues of $4.8 million and income before tax of $0.9 million for the period from June 17, 2025 to September 30, 2025.

During the year ended September 30, 2025, we incurred total acquisition costs of approximately $0.3 million. The acquisition costs were primarily related to legal, accounting and consulting services, were expensed as incurred and are included in general and administrative expenses in the consolidated statements of operations.

Unaudited Supplementary Pro Forma Financial Information

The following unaudited pro forma summary presents consolidated information for us as if the business combination had occurred on October 1, 2023. The pro forma information is not necessarily indicative of our results of operations had the acquisitions been completed on the above date, nor is it necessarily indicative of our future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisitions, nor does it reflect additional revenues opportunities following the acquisition.

	Fiscal Year Ended September 30,
(in thousands)	2025		2024
Revenues	$	1,288,411	$	1,182,081
Income before income tax	$	147,725	$	117,585

We did not have any material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma net revenues and net income. These pro forma amounts have been calculated after applying the Company’s accounting policies.