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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
The following tables present revenue disaggregated by segment on an adjusted operating basis with a reconciliation of segment revenues to those reported on the Consolidated Statements of Operations:
Three Months Ended September 30, 2025
Advice & Wealth ManagementAsset ManagementRetirement & Protection SolutionsCorporate & OtherTotal SegmentsNon-operating
Revenue		Total
(in millions)
Management and financial advice fees:
Asset management fees:
Retail$— $557 $— $— $557 $— $557 
Institutional— 140 — — 140 — 140 
Model delivery— 24 — — 24 — 24 
Advisory fees1,664 — — — 1,664 — 1,664 
Financial planning fees120 — — — 120 — 120 
Transaction and other fees102 52 17 — 171 — 171 
Total management and financial advice fees1,886 773 17 — 2,676 — 2,676 
Distribution fees:
Mutual funds227 58 — — 285 — 285 
Insurance and annuity268 40 87 — 395 — 395 
Off-balance sheet brokerage cash21 — — — 21 — 21 
Other products126 — — — 126 — 126 
Total distribution fees642 98 87 — 827 — 827 
Other revenues67 3 — — 70 — 70 
Total revenue from contracts with customers2,595 874 104 — 3,573 — 3,573 
Revenue from other sources (1)
497 32 998 113 1,640 61 1,701 
Total segment gross revenues3,092 906 1,102 113 5,213 61 5,274 
Banking and deposit interest expense(102)— — (9)(111)— (111)
Total segment net revenues2,990 906 1,102 104 5,102 61 5,163 
Elimination of intersegment revenues(239)(27)(113)10 (369)(3)(372)
Total net revenues$2,751 $879 $989 $114 $4,733 $58 $4,791 
Three Months Ended September 30, 2024
Advice & Wealth ManagementAsset ManagementRetirement & Protection SolutionsCorporate & OtherTotal SegmentsNon-operating
Revenue		Total
(in millions)
Management and financial advice fees:
Asset management fees:
Retail$— $540 $— $— $540 $— $540 
Institutional— 143 — — 143 — 143 
Model delivery
— 21 — — 21 — 21 
Advisory fees1,451 — — — 1,451 — 1,451 
Financial planning fees111 — — — 111 — 111 
Transaction and other fees97 52 14 — 163 — 163 
Total management and financial advice fees1,659 756 14 — 2,429 — 2,429 
Distribution fees:
Mutual funds209 57 — — 266 — 266 
Insurance and annuity266 41 87 — 394 — 394 
Off-balance sheet brokerage cash
32 — — — 32 — 32 
Other products107 — — — 107 — 107 
Total distribution fees614 98 87 — 799 — 799 
Other revenues66 5 — (1)70 — 70 
Total revenue from contracts with customers2,339 859 101 (1)3,298 — 3,298 
Revenue from other sources (1)
566 23 872 123 1,584 56 1,640 
Total segment gross revenues2,905 882 973 122 4,882 56 4,938 
Banking and deposit interest expense(163)— — (7)(170)— (170)
Total segment net revenues2,742 882 973 115 4,712 56 4,768 
Elimination of intersegment revenues(237)(24)(113)7 (367)(4)(371)
Total net revenues$2,505 $858 $860 $122 $4,345 $52 $4,397 
Nine Months Ended September 30, 2025
Advice & Wealth ManagementAsset ManagementRetirement & Protection SolutionsCorporate & OtherTotal SegmentsNon-operating
Revenue		Total
(in millions)
Management and financial advice fees:
Asset management fees:
Retail$— $1,602 $— $— $1,602 $— $1,602 
Institutional— 405 — — 405 — 405 
Model delivery— 69 — — 69 — 69 
Advisory fees4,696 — — — 4,696 — 4,696 
Financial planning fees350 — — — 350 — 350 
Transaction and other fees296 152 44 — 492 — 492 
Total management and financial advice fees5,342 2,228 44 — 7,614 — 7,614 
Distribution fees:
Mutual funds653 166 — — 819 — 819 
Insurance and annuity769 117 250 — 1,136 — 1,136 
Off-balance sheet brokerage cash82 — — — 82 — 82 
Other products354 — — — 354 — 354 
Total distribution fees1,858 283 250 — 2,391 — 2,391 
Other revenues207 11 — 1 219 — 219 
Total revenue from contracts with customers7,407 2,522 294 1 10,224 — 10,224 
Revenue from other sources (1)
1,516 60 2,670 348 4,594 154 4,748 
Total segment gross revenues8,923 2,582 2,964 349 14,818 154 14,972 
Banking and deposit interest expense(344)— — (25)(369)— (369)
Total segment net revenues8,579 2,582 2,964 324 14,449 154 14,603 
Elimination of intersegment revenues(689)(78)(330)25 (1,072)(11)(1,083)
Total net revenues$7,890 $2,504 $2,634 $349 $13,377 $143 $13,520 
Nine Months Ended September 30, 2024
Advice & Wealth ManagementAsset ManagementRetirement & Protection SolutionsCorporate & OtherTotal SegmentsNon-operating
Revenue		Total
(in millions)
Management and financial advice fees:
Asset management fees:
Retail$— $1,592 $— $— $1,592 $— $1,592 
Institutional— 424 — — 424 — 424 
Model delivery
— 60 — — 60 — 60 
Advisory fees4,115 — — — 4,115 — 4,115 
Financial planning fees333 — — — 333 — 333 
Transaction and other fees291 154 44 — 489 — 489 
Total management and financial advice fees4,739 2,230 44 — 7,013 — 7,013 
Distribution fees:
Mutual funds604 169 — — 773 — 773 
Insurance and annuity773 120 255 — 1,148 — 1,148 
Off-balance sheet brokerage cash
122 — — — 122 — 122 
Other products321 — — — 321 — 321 
Total distribution fees1,820 289 255 — 2,364 — 2,364 
Other revenues192 10 — — 202 — 202 
Total revenue from contracts with customers6,751 2,529 299 — 9,579 — 9,579 
Revenue from other sources (1)
1,709 56 2,514 369 4,648 156 4,804 
Total segment gross revenues8,460 2,585 2,813 369 14,227 156 14,383 
Banking and deposit interest expense(514)— — (22)(536)— (536)
Total segment net revenues7,946 2,585 2,813 347 13,691 156 13,847 
Elimination of intersegment revenues(698)(71)(327)21 (1,075)(9)(1,084)
Total net revenues$7,248 $2,514 $2,486 $368 $12,616 $147 $12,763 
(1) Revenues not included in the scope of the revenue from contracts with customers standard. The amounts primarily consist of revenue associated with insurance and annuity products and investment income from financial instruments.

The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers on a consolidated basis.
Management and Financial Advice Fees
Asset Management Fees
The Company earns revenue for performing asset management services for retail and institutional clients (assets under management). The Company also earns revenue for performing advisory services for model portfolios that the Company does not have full discretionary investment authority (assets under advisement). The revenue is earned based on a fixed or tiered rate applied, as a percentage, to assets under management or advisement. Assets under management and advisement vary with market fluctuations and client behavior. The asset management and advisement performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Asset management fees are accrued, invoiced and collected on a monthly or quarterly basis.
The Company’s asset management contracts for Open Ended Investment Companies (“OEICs”) in the United Kingdom (“U.K.”) and Société d'Investissement à Capital Variable (“SICAVs”) in Europe include performance obligations for asset management and fund distribution services. The amounts received for these services are reported as Management and financial advice fees. The revenue recognition pattern is the same for both performance obligations as the fund distribution services revenue is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment) and not recognized until assets under management are known.
The Company may also earn performance-based management fees on institutional accounts, hedge funds, collateralized loan obligations (“CLOs”), OEICs, SICAVs and property and other funds based on a percentage of account returns in excess of either a
benchmark index or a contractually specified level. This revenue is variable and impacted primarily by the performance of the assets being managed compared to the benchmark index or contractually specified level. The revenue is not recognized until it is probable that a significant reversal will not occur. Performance-based management fees are invoiced on a quarterly or annual basis.
Advisory Fees
The Company earns revenue for performing investment advisory services for certain brokerage customer’s discretionary and non-discretionary managed accounts. The revenue is earned based on a contractual fixed rate applied, as a percentage, to the market value of assets held in the account. The investment advisory performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Advisory fees are billed on a monthly basis on the prior month end assets.
Financial Planning Fees
The Company earns revenue for providing financial plans to its clients. The revenue earned for each financial plan is either a fixed fee (received monthly, quarterly or annually) or a variable fee (received monthly) based on a contractual fixed rate applied, as a percentage, to the prior month end assets held in a client’s investment advisory account. The financial planning fee is based on the complexity of a client’s financial and life situation and his or her advisor’s experience. The performance obligation is satisfied at the time the financial plan is delivered to the customer. The Company records a contract liability for the unearned revenue when cash is received before the plan is delivered. The financial plan contracts with clients are annual contracts. Amounts recorded as a contract liability are recognized as revenue when the financial plan is delivered, which occurs within the annual contract period.
For fixed fee arrangements, revenue is recognized when the financial plan is delivered. The Company accrues revenue for any amounts that have not been received at the time the financial plan is delivered.
For variable fee arrangements, revenue is recognized for cash that has been received when the financial plan is delivered. The amount received after the plan is delivered is variably constrained due to factors outside the Company’s control including market volatility and client behavior. The revenue is recognized when it is probable that a significant reversal will not occur and is generally each month end as the advisory account balance uncertainty is resolved.
Contract liabilities for financial planning fees, which are included in Other liabilities, were $175 million and $181 million as of September 30, 2025 and December 31, 2024, respectively.
The Company pays sales commissions to advisors when a new financial planning contract is obtained or when an existing contract is renewed. The sales commissions paid to the advisors prior to financial plan delivery are considered costs to obtain a contract with a customer and are initially capitalized. When the performance obligation to deliver the financial plan is satisfied, the commission is recognized as distribution expense. Capitalized costs to obtain these contracts are reported in Other assets and was $140 million and $145 million as of September 30, 2025 and December 31, 2024, respectively.
Transaction and Other Fees
The Company earns revenue for providing customer support, shareholder and administrative services (including transfer agent services) for affiliated mutual funds and networking, sub-accounting and administrative services for unaffiliated mutual funds. The Company also receives revenue for providing custodial services and account maintenance services on brokerage and retirement accounts that are not included in an advisory relationship. Transfer agent and administrative revenue is earned based on either a fixed rate applied, as a percentage, to assets under management or an annual fixed fee for each fund position. Networking and sub-accounting revenue is earned based on either an annual fixed fee for each account or an annual fixed fee for each fund position. Custodial and account maintenance revenue is generally earned based on a quarterly or annual fixed fee for each account. Each of the customer support and administrative services performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Transaction and other fees (other than custodial service fees) are invoiced or charged to brokerage accounts on a monthly or quarterly basis. Custodial service fees are invoiced or charged to brokerage accounts on an annual basis. Contract liabilities for custodial service fees, which are included in Other liabilities, were $12 million and nil as of September 30, 2025 and December 31, 2024, respectively.
The Company earns revenue for providing trade execution services to franchise advisors. The trade execution performance obligation is satisfied at the time of each trade and the revenue is primarily earned based on a fixed fee per trade. These fees are invoiced and collected on a semi-monthly basis.
Distribution Fees
Mutual Funds and Insurance and Annuity Products
The Company earns revenue for selling affiliated and unaffiliated mutual funds, fixed and variable annuities and insurance products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment or holds the contract and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the
fund, or the value of the insurance policy or annuity contract. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment, insurance policy or annuity contract). This ongoing revenue may be recognized for many years after the initial sale. The revenue will not be recognized until it is probable that a significant reversal will not occur.
The Company earns revenue for providing unaffiliated partners an opportunity to educate the Company’s advisors or to support availability and distribution of their products on the Company’s platforms. These payments allow the outside parties to train and support the advisors, explain the features of their products and distribute marketing and educational materials, and support trading and operational systems necessary to enable the Company’s client servicing and production distribution efforts. The Company earns revenue for placing and maintaining unaffiliated fund partners and insurance companies’ products on the Company’s sales platform (subject to the Company’s due diligence standards). The revenue is primarily earned based on a fixed fee or a fixed rate applied, as a percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are invoiced and collected on monthly basis.
Off-Balance Sheet Brokerage Cash
The Company earns revenue for placing clients’ deposits in its brokerage sweep program with third-party banks. The amount received from the third-party banks is impacted by short-term interest rates. The performance obligation with the financial institutions that participate in the sweep program is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. The revenue is earned daily and settled monthly based on a rate applied, as a percentage, to the deposits placed.
Other Products
The Company earns revenue for selling unaffiliated alternative products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment and is earned generally based on a fixed rate applied, as a percentage, to the market value of the investment. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment). The revenue will not be recognized until it is probable that a significant reversal will not occur.
The Company earns revenue from brokerage clients for the execution of requested trades. The performance obligation is satisfied at the time of trade execution and amounts are received on the settlement date. The revenue varies for each trade based on various factors that include the type of investment, dollar amount of the trade and how the trade is executed (online or broker assisted).
Other Revenues
The Company earns revenue from fees charged to franchise advisors for providing various services the advisors need to manage and grow their practices. The primary services include: licensing of intellectual property and software, compliance supervision, insurance coverage, technology services and support, consulting and other services. The services are either provided by the Company or third- party providers. The Company controls the services provided by third parties as it has the right to direct the third parties to perform the services, is primarily responsible for performing the services and sets the prices the advisors are charged. The Company recognizes revenue for the gross amount of the fees received from the advisors. The fees are primarily collected monthly as a reduction of commission payments.
Intellectual property and software licenses, along with compliance supervision, insurance coverage, and technology services and support are primarily earned based on a monthly fixed fee. These services are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. The consulting and other services performance obligations are satisfied as the services are delivered and revenue is earned based upon the level of service requested.
Receivables
Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue. Receivables related to revenues from contracts with customers were $476 million and $538 million as of September 30, 2025 and December 31, 2024, respectively.