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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Summary of provision for income taxes | The components of the provision for income taxes were as follows (in thousands):
| Years Ended December 31,
| 2025 | 2024 | 2023
Current provision for income taxes: |  |  |
Federal | $ | 158,426 |  | $ | 325,858 |  | $ | 355,393 |
State | 75,122 |  | 84,662 |  | 91,586 |
Total current provision for income taxes | 233,548 |  | 410,520 |  | 446,979 |
Deferred provision (benefit) for income taxes: |  |  |
Federal | 66,574 |  | (66,056) |  | (56,539) |
State | (13,639) |  | (10,188) |  | (11,915) |
Total deferred provision (benefit) for income taxes | 52,935 |  | (76,244) |  | (68,454) |
Provision for income taxes | $ | 286,483 |  | $ | 334,276 |  | $ | 378,525 |
Summary of effective income tax rate reconciliation | The following table reflects a reconciliation of the U.S. federal statutory income tax rates to the Company’s effective income tax rates:
| Year Ended December 31, 2025
| Amount | %
Federal at statutory income tax rates | $ | 241,413 |  | 21.0 | %
State income taxes, net of federal benefit (1) | 47,832 |  | 4.2 |
Tax credits: |  |
General business credits | (9,914) |  | (0.9) |
Changes in unrecognized tax benefits | 9,717 |  | 0.8 |
Nontaxable or nondeductible items: |  |
Share-based payment awards | (4,163) |  | (0.4) |
Other | 1,598 |  | 0.2 |
Effective income tax rate | $ | 286,483 |  | 24.9 | %
(1) State taxes in California, Illinois, New York, Pennsylvania, New Jersey, and Minnesota made up the majority (greater than 50%) of the tax effect in this category. The following table reflects a reconciliation of the U.S. federal statutory income tax rates to the Company’s effective income tax rates in accordance with the guidance in effect prior to the adoption of the new income tax disclosure requirements during the year ended December 31, 2025:
| Years Ended December 31,
| 2024 | 2023
Federal statutory income tax rates | 21.0 | % | 21.0 | %
State income taxes, net of federal benefit | 4.2 |  | 5.0 |
Non-deductible expenses | 0.2 |  | 0.9 |
Federal research and development credits | (0.7) |  | (0.6) |
Share-based compensation | (0.8) |  | (0.2) |
Other | 0.1 |  | 0.1 |
Effective income tax rates | 24.0 | % | 26.2 | %
Components of the net deferred income taxes | The components of the net deferred income taxes included in the consolidated statements of financial condition were as follows (in thousands):
| December 31,
| 2025 | 2024
Deferred tax assets: |  |
Deferred compensation | $ | 290,055 |  | $ | 230,757 |
Operating lease liabilities | 55,072 |  | 40,240 |
Tax credit carryforwards | 28,999 |  | 24,244 |
Finance lease liabilities | — |  | 28,383 |
Forgivable loans | 89,783 |  | 41,003 |
Capitalized research and development expenditures | 2,062 |  | 22,164 |
Accrued liabilities | 33,369 |  | 29,813 |
Share-based compensation | 17,433 |  | 15,323 |
Other | 14,290 |  | 19,329 |
Deferred tax assets | 531,063 |  | 451,256 |
Less: valuation allowance | (24,131) |  | (23,215) |
Total deferred tax assets | 506,932 |  | 428,041 |
Deferred tax liabilities: |  |
Internally developed software | (201,680) |  | (43,053) |
Depreciation of property and equipment | (33,901) |  | (55,334) |
Amortization of other intangibles | (110,091) |  | (147,574) |
Operating lease assets | (47,019) |  | (32,167) |
Unrealized gains and losses | (31,276) |  | (15,842) |
Other | (4,743) |  | (4,169) |
Total deferred tax liabilities | (428,710) |  | (298,139) |
Deferred tax assets, net | $ | 78,222 |  | $ | 129,902 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table reflects a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits (in thousands):
| December 31,
| 2025 | 2024 | 2023
Balance — beginning of year | $ | 46,519 |  | $ | 61,592 |  | $ | 52,270 |
Increases for tax positions taken during the current year | 5,384 |  | 7,795 |  | 10,433 |
Increases for tax positions taken in the prior years | 10,074 |  | 2,950 |  | 10,606 |
Reductions as a result of a lapse of the applicable statute of limitations and decreases in prior-year tax positions | (9,223) |  | (25,818) |  | (11,717) |
Balance — end of year | $ | 52,754 |  | $ | 46,519 |  | $ | 61,592 |
Schedule of Cash Flow, Supplemental Disclosures | Net cash paid (refunds received) for income taxes consisted of the following (in thousands):
| Year Ended December 31, 2025
Federal | $ | 257,101 |
Aggregated state and local jurisdictions (1) | 71,459 |
Net cash paid for income taxes | $ | 328,560 |
(1) No individual state taxing jurisdiction comprised more than 5% of net cash paid (refunds received).

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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