Annual report [Section 13 and 15(d), not S-K Item 405]

INVESTMENTS

v3.25.3
INVESTMENTS
12 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS:
At September 30, 2025 and 2024, non-current investments were as follows:
  2025 2024
Equity and fixed income mutual funds $ 859  $ 839 
Life insurance policies 5,239  5,493 
Equity-method investments 214,133  349 
Preferred equity investment 52,086  — 
Other (primarily cost-method) investments 16,320  16,395 
  $ 288,637  $ 23,076 

On May 1, 2025, the Company contributed its SGK Business to a newly-formed entity, Propelis, in exchange for consideration which included 40% of the common equity of Propelis and a $50,000 preferred equity investment in Propelis. The Company initially recognized these investments at fair value, which totaled $263,000 ($213,000 equity-method and $50,000 preferred equity investment). The Company will subsequently adjust the carrying amount of its equity-method investment for its share of earnings and losses reported by the investee, distributions received, and other-than-temporary impairments. The preferred equity investment accrues paid-in-kind interest at a rate of 10% per annum.

The Company recognizes its portion of the earnings or losses for its equity-method investment in Propelis on a three-month lag to ensure consistency and timely filing of the Company’s financial statements. Consequently, in fiscal 2025, the Company's portion of earnings for its equity-method investment in Propelis only includes the months of May and June 2025. For the year ended September 30, 2025, the Company recognized $1,132 of equity-method income for its equity-method investment in Propelis, which has been recorded as a component of administrative expense. Equity-method income in fiscal 2025 included $1,937 of income, representing the Company's portion of the investee's earnings, and $805 of expense, reflecting the amortization of the Company's portion of the basis difference of the amortizable assets contributed from SGS & Co. ("SGS") to Propelis. The Company also recognized $2,086 of paid-in-kind interest income in fiscal 2025 related to the Company's preferred equity investment in Propelis, which was included as a component of other income (deductions), net.
The following table presents summarized financial information for Propelis:
 
June 30, 2025 (1)
(unaudited)
Current assets $ 262,475 
Non-current assets 735,522 
Current liabilities 176,838 
Non-current liabilities 346,485 
Noncontrolling interests 214,938 

 
May 1, 2025 -
June 30, 2025 (1)
(unaudited)
Sales $ 159,648 
Gross profit 40,161 
Operating loss (1,250)
Net income 4,843 
Net income attributable to Propelis 2,906 
(1) The Company recognizes its portion of the earnings or losses for its equity-method investment in Propelis on a three-month lag. The summarized financial information for Propelis has been presented for the months of May and June 2025 to coincide with the amounts reflected in the Company's consolidated financial statements.

As of September 30, 2024, the Company had an investment in Liquid X Printed Metals Inc. (“Liquid X”), a private company specializing in ink technologies. The President and CEO of Liquid X is a former executive officer of the Company and a former member of Matthews' Board of Directors. During the fourth quarter of fiscal 2024, in anticipation of a disposal transaction, the Company recognized a non-cash impairment charge of $3,131, representing a full write-down of its cost-method investment in Liquid X. This write-down was recorded as a component of other income (deductions), net, for the year ended September 30, 2024. The disposal transaction was completed in October 2024.