Investments

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Note 6—Investments

Investments are as follows (in millions):


	December 31,
	2025		2024
Non-marketable equity securities	$	124.1	$	124.1
Seed capital investments		26.4		23.1
Marketable equity securities		19.6		21.6
Partnership interests in private equity funds		4.3		8.6
Total investments	$	174.4	$	177.4

Realized and unrealized gains and losses for our equity securities are as follows (in millions):


	Year Ended December 31,
	2025			2024		2023
Unrealized (losses) gains on equity securities held as of the end of the period	$	(3.3	)	$	2.6	$	2.9
Realized gains for equity securities sold during the period		-			0.3		0.7
Total (losses) gains recognized in other (expense) income, net	$	(3.3	)	$	2.9	$	3.6

Fair Value Measurement

Authoritative accounting guidance on fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of December 31, 2025 and 2024, we held certain investment assets and certain liabilities that are required to be measured at fair value on a recurring basis. These investments include money market funds, marketable equity securities and seed capital investments, each of which determines fair value using quoted prices in active markets. Accordingly, the fair value measurements of these investments have been classified as Level 1 in the tables below. Investments for which we elected net asset value as a practical expedient for fair value and investments measured using the fair value measurement alternative are excluded from the table below. Fair value for deferred compensation liabilities that are credited with deemed gains or losses of the underlying hypothetical investments, primarily equity securities, have been classified as Level 1 in the tables below. The fair values of cash, accounts receivable, net, short-term borrowings, and accounts payable approximate the carrying amounts due to the short-term maturities of these instruments.

The following tables present assets and liabilities measured at fair value on a recurring basis (in millions):


				Fair Value Measurements at Reporting Date Using
	December 31, 2025			Quoted prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds (1)	$	2,759.2		$	2,759.2		$	—	$	—
Seed capital investments (2)		26.4			26.4			—		—
Marketable equity securities (2)		19.6			19.6			—		—
Deferred compensation liabilities (3)		(9.4	)		(9.4	)		—		—
Total	$	2,795.8		$	2,795.8		$	—	$	—


				Fair Value Measurements at Reporting Date Using
	December 31, 2024			Quoted prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds (1)	$	2,637.5		$	2,637.5		$	—	$	—
Seed capital investments (2)		23.1			23.1			—		—
Marketable equity securities (2)		21.6			21.6			—		—
Deferred compensation liabilities (3)		(11.5	)		(11.5	)		—		—
Total	$	2,670.7		$	2,670.7		$	—	$	—

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(1)

As of December 31, 2025, included $76.6 million of cash and cash equivalents, $1.3 million of restricted cash and cash equivalents and $2,681.3 million of funds receivable and funds held on behalf of clients on the Consolidated Balance Sheet. As of December 31, 2024, included $184.2 million of cash and cash equivalents, $2.5 million of restricted cash and cash equivalents and $2,450.8 million of funds receivable and funds held on behalf of clients on the Consolidated Balance Sheet.

(2)

Included in investments on the Consolidated Balance Sheet.

(3)

Included in other long-term liabilities on the Consolidated Balance Sheet.

During the year ended December 31, 2024, we redeemed $3.6 million of our seed capital investments.

In February 2020, we entered into a Series A Convertible Share Purchase Agreement with SILAC, Inc. (“SILAC”), pursuant to which we acquired 40 million shares of Series A convertible preferred stock of SILAC for a purchase price of $40 million. The investment is classified as a non-marketable equity security without a readily determinable fair value. Mr. William C. Stone, our Chairman of the Board of Directors and Chief Executive Officer, has an economic interest in SILAC and is a member of its board of

directors. Accordingly, SILAC is considered a related party. In each of the years ended December 31, 2025, 2024 and 2023, we received a preferred stock dividend from SILAC of $8.0 million which is recorded in other (expense) income, net on our Consolidated Statements of Comprehensive Income.

We have partnership interests in various private equity funds that are not included in the table above. Our investments in private equity funds were $4.3 million and $8.6 million at December 31, 2025 and 2024, respectively, of which $3.1 million and $7.3 million, respectively, were measured using net asset value as a practical expedient for fair value and $1.2 million and $1.3 million, respectively, were accounted for under the equity method of accounting. The investments in private equity funds represent underlying investments in domestic and international markets across various industry sectors.

Generally, our investments in private equity funds are non-transferable or are subject to long holding periods, and withdrawals from the private equity firm partnerships are typically not permitted. The maximum risk of loss related to our private equity fund investments is limited to the carrying value of our investments in the entities.

We add new investment products such as mutual funds and exchange traded funds, through our subsidiary, ALPS Advisors, from time to time by providing the initial cash investments as seed capital.