v3.26.3
Note 9 - Fair Value Measurements
 12 Months Ended
Jul. 31, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 9—Fair Value Measurements

 

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis:

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

July 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

$

25,942

 

 

$

12,670

 

 

$

—

 

 

$

38,612

 

Equity investments included in current assets

 

 

12,642

 

 

 

—

 

 

 

—

 

 

 

12,642

 

Equity investments included in noncurrent assets

 

 

—

 

 

 

500

 

 

 

383

 

 

 

883

 

TOTAL

 

$

38,584

 

 

$

13,170

 

 

$

383

 

 

$

52,137

 

Acquisition consideration included in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

—

 

 

$

—

 

 

$

323

 

 

$

323

 

Other noncurrent liabilities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

TOTAL

 

$

—

 

 

$

—

 

 

$

323

 

 

$

323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

$

12,926

 

 

$

8,723

 

 

$

—

 

 

$

21,649

 

Equity investments included in current assets

 

 

5,637

 

 

 

—

 

 

 

—

 

 

 

5,637

 

Equity investments included in noncurrent assets

 

 

—

 

 

 

2,500

 

 

 

902

 

 

 

3,402

 

TOTAL

 

$

18,563

 

 

$

11,223

 

 

$

902

 

 

$

30,688

 

Acquisition consideration included in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Other noncurrent liabilities

 

 

—

 

 

 

—

 

 

 

(610

)

 

 

(610

)

TOTAL

 

$

—

 

 

$

—

 

 

$

(610

)

 

$

(610

)

 

At  July 31, 2026 and 2025, the Company had $4.3 million and $3.0 million, respectively, in investments in hedge funds, which were included in noncurrent “Equity investments” in the accompanying consolidated balance sheets. The Company’s investments in hedge funds were accounted for using the equity method and were therefore not measured at fair value.

 

The following tables summarize the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

(in thousands)

 

 

 

​

 

 

 

​

 

 

 

​

Year ended July 31,

 

2026

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

902

 

 

$

695

 

 

$

1,263

 

Redemption for Visa mandatory release assessment

 

 

—

 

 

 

—

 

 

 

(877

)

Total (losses) gains included in “Other expense, net”

 

 

(519

)

 

 

207

 

 

 

309

 

BALANCE, END OF PERIOD

 

$

383

 

 

$

902

 

 

$

695

 

 

 

 

 

​

 

 

 

​

 

 

 

​

Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period

 

$

—

 

 

$

—

 

 

$

—

 

 

The following tables summarize the change in the balance of the Company’s liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

(in thousands)

 

 

 

​

 

 

 

​

 

 

 

​

Year ended July 31,

 

2026

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

610

 

 

$

906

 

 

$

4,805

 

Payments

 

 

(287

)

 

 

(296

)

 

 

(2,104

)

Total (gains) losses included in:

 

 

 

​

 

 

 

​

 

 

 

​

“Other operating expense, net”

 

 

—

 

 

 

—

 

 

 

(1,838

)

Interest expense included in “Interest income, net”

 

 

—

 

 

 

—

 

 

 

44

 

“Foreign currency translation adjustments”

 

 

—

 

 

 

—

 

 

 

(1

)

BALANCE, END OF PERIOD

 

$

323

 

 

$

610

 

 

$

906

 

 

 

 

 

​

 

 

 

​

 

 

 

​

Change in unrealized gains or losses for the period included in earnings for liabilities at the end of the period

 

$

—

 

 

$

—

 

 

$

—

 

 

In fiscal 2026, fiscal 2025, and fiscal 2024, the Company paid an aggregate of $0.3 million, $0.3 million, and $2.1 million, respectively, for contingent consideration related to prior acquisitions, which included 2,679 shares in fiscal 2024, of the Company’s Class B common stock with an issue date value of $0.1 million. In addition, the Company recorded gains of $1.8 million in fiscal 2024, on the write-off of contingent consideration payment obligations. These write-offs of contingent consideration were included in “Other operating expense, net” in the accompanying consolidated statements of income.

 

Fair Value of Other Financial Instruments

 

The estimated fair value of the Company’s other financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting these data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

 

Cash and cash equivalents, restricted cash and cash equivalents, settlement assets, disbursement prefunding, other current assets, customer funds deposits, settlement liabilities, and other current liabilities. At  July 31, 2026 and 2025, the carrying amount of these assets and liabilities approximated fair value because of the short period of time to maturity. The fair value estimates for cash, cash equivalents, and restricted cash and cash equivalents were classified as Level 1 and settlement assets, disbursement prefunding, other current assets, customer funds deposits, settlement liabilities, and other current liabilities were classified as Level 2 of the fair value hierarchy.

 

Other assets and other liabilities. At  July 31, 2026 and 2025, the carrying amount of these assets and liabilities approximated fair value. The fair values were estimated based on the Company’s assumptions, which were classified as Level 3 of the fair value hierarchy.