Leases

9 Months Ended

Sep. 30, 2025

Operating Leases – The Company leases office space under non-cancelable lease agreements, which expire on various dates through 2035. The Company reflects lease expense over the lease terms on a straight-line basis, which include options to extend the lease when it is reasonably certain that the Company will exercise that option. Occupancy lease agreements, in addition to base rentals, generally are subject to escalation provisions based on certain costs incurred by the landlord. The Company does not have any leases with variable lease payments. Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office space of $18,317 and $53,709 for the three and nine months ended September 30, 2025, respectively, and $15,060 and $43,899 for the three and nine months ended September 30, 2024, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses of $1,409 and $5,115 for the three and nine months ended September 30, 2025, respectively, and $1,662 and $4,566 for the three and nine months ended September 30, 2024, respectively.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $5,987 and $5,886 as of September 30, 2025 and December 31, 2024, respectively, which are secured by cash that is included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

The Company has entered into various operating leases for the use of office equipment (primarily computers, printers, copiers and other information technology related equipment). Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office equipment of $1,681 and $5,067 for the three and nine months ended September 30, 2025, respectively, and $1,657 and $4,699 for the three and nine months ended September 30, 2024, respectively.

The Company uses its secured incremental borrowing rate to determine the present value of its right-of-use assets and lease liabilities. The determination of an appropriate incremental borrowing rate requires significant assumptions and judgment. The Company's incremental borrowing rate was calculated based on the Company's recent debt issuances and current market conditions. The Company scales the rates appropriately depending on the life of the leases.

The Company incurred net operating cash outflows of $57,596 and $34,150 for the nine months ended September 30, 2025 and 2024, respectively, related to its operating leases, which was net of cash received from lease incentives of $5,098 and $1,684 for the nine months ended September 30, 2025 and 2024, respectively.

Other information as it relates to the Company's operating leases is as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025			2024
New Right-of-Use Assets obtained in exchange for new operating lease liabilities	$	6,684	$	18,731	$	30,767		$	20,730


					September 30, 2025			September 30, 2024
Weighted-average remaining lease term - operating leases					9.5 years			10.2 years
Weighted-average discount rate - operating leases					4.81		%	4.67		%

As of September 30, 2025, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:


2025 (October 1 through December 31)	$	21,671
2026	86,565
2027	77,107
2028	67,255
2029	56,061
Thereafter	389,844
Total lease payments	698,503
Less: Tenant Improvement Allowances	(16,975)
Less: Imputed Interest	(136,878)
Present value of lease liabilities	544,650
Less: Current lease liabilities	(61,759)
Long-term lease liabilities	$	482,891

The Company has entered into certain lease agreements, primarily for office space, which have not yet commenced and thus are not yet included on the Company's Unaudited Condensed Consolidated Statements of Financial Condition as right-of-use assets and lease liabilities. The Company anticipates that these leases will commence in 2025 and 2026 and will have lease terms of 3 to 6 years once they have commenced. The additional future payments under these arrangements are $2,974 as of September 30, 2025.

In September 2024, the Company entered into a binding agreement affirming its intent to lease office space in London, United Kingdom. The Company anticipates signing the lease in 2026, following construction of the building, and anticipates

that it will take possession of this space by the end of 2026. The lease term will end in 2041. The expected approximate additional annual expense under this lease agreement, net of certain lease incentives, is £12,000, and the aggregate expected additional future payments under this arrangement are £175,000.