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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s reportable segments offer different products and services and are managed separately, as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed by the Chief Operating Decision Maker (the “CODM”) to determine the allocation of resources and to assess its performance. The Company’s reportable segments are Financial Advisory, Asset Management, and Corporate, which are described in Note 1. The Company’s CODM is the Company’s Chief Executive Officer. The CODM assesses the segments’ performance by each segment’s adjusted operating income (loss) attributable to each of the segments. The Company previously disclosed each segment’s U.S. GAAP operating income (loss) as the segment’s measure of profit or loss. Comparable prior year information has been recast to reflect the updated measure. Adjusted operating income (loss) is also used by the CODM to allocate compensation and non-compensation related resources to each segment. The table below provides selected financial information about the Company’s segments, including adjusted compensation and benefits expense and adjusted non-compensation expense (both of which are significant expense categories on which the CODM is regularly provided information), other segment items, and adjusted operating income (loss). Adjusted compensation and benefits expense and adjusted non-compensation expense include costs directly incurred by each segment, with certain adjustments. Adjusted non-compensation expense includes expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services. Other segment items include certain adjustments to calculate adjusted operating income (loss), including: •Noncontrolling interests; •Certain distribution, introducer and management fees paid to third parties and reimbursable deal costs; •Provision for credit losses; •Changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements; •Interest expense, excluding interest expense incurred by LFB; •Losses associated with the closing of certain offices as part of the cost-saving initiatives, representing the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss; and •The gain on sale of an owned office building. Inter-segment revenues are not material for all periods presented. The CODM does not regularly receive asset information by segment and does not use segment asset information to assess performance or allocate resources.
| Three Months Ended September 30, 2025
| Financial Advisory |  | Asset Management |  | Corporate |  | Total
Net Revenue (Loss) - U.S. GAAP Basis | $ | 427,335 |  |  | $ | 327,029 |  |  | $ | (6,286) |  |  | $ | 748,078 |
Adjusted Compensation and Benefits Expense | 273,214 |  |  | 155,920 |  |  | 45,513 |  |  | 474,647 |
Adjusted Non-compensation Expense | 52,098 |  |  | 64,513 |  |  | 32,054 |  |  | 148,665 |
Other Segment Items | (5,056) |  |  | (32,840) |  |  | 14,471 |  |  | (23,425) |
Adjusted Operating Income (Loss) | $ | 96,967 |  |  | $ | 73,756 |  |  | $ | (69,382) |  |  | $ | 101,341 |
Other Segment Disclosures: |  |  |  |  |  |  |
Interest income (included in net revenue) | $ | 618 |  |  | $ | 2,161 |  |  | $ | 4,881 |  |  | $ | 7,660 |
Depreciation and amortization of property (included in adjusted non-compensation expense) | $ | 1,805 |  |  | $ | 1,564 |  |  | $ | 5,096 |  |  | $ | 8,465 |
| Nine Months Ended September 30, 2025
| Financial Advisory |  | Asset Management |  | Corporate |  | Total
Net Revenue (Loss) - U.S. GAAP Basis | $ | 1,292,000 |  |  | $ | 907,607 |  |  | $ | (7,481) |  |  | $ | 2,192,126 |
Adjusted Compensation and Benefits Expense | 830,218 |  |  | 438,402 |  |  | 131,576 |  |  | 1,400,196 |
Adjusted Non-compensation Expense | 157,085 |  |  | 187,321 |  |  | 109,512 |  |  | 453,918 |
Other Segment Items | (8,819) |  |  | (80,433) |  |  | 34,830 |  |  | (54,422) |
Adjusted Operating Income (Loss) | $ | 295,878 |  |  | $ | 201,451 |  |  | $ | (213,739) |  |  | $ | 283,590 |
Other Segment Disclosures: |  |  |  |  |  |  |
Interest income (included in net revenue) | $ | 3,718 |  |  | $ | 6,744 |  |  | $ | 18,067 |  |  | $ | 28,529 |
Depreciation and amortization of property (included in adjusted non-compensation expense) | $ | 5,980 |  |  | $ | 4,352 |  |  | $ | 15,177 |  |  | $ | 25,509 |
| Three Months Ended September 30, 2024
| Financial Advisory |  | Asset Management |  | Corporate |  | Total
Net Revenue - U.S. GAAP Basis | $ | 370,917 |  |  | $ | 293,878 |  |  | $ | 120,071 |  |  | $ | 784,866 |
Adjusted Compensation and Benefits Expense | 238,360 |  |  | 145,695 |  |  | 42,248 |  |  | 426,303 |
Adjusted Non-compensation Expense | 49,333 |  |  | 58,058 |  |  | 30,848 |  |  | 138,239 |
Other Segment Items | (2,110) |  |  | (22,368) |  |  | (114,474) |  |  | (138,952) |
Adjusted Operating Income (Loss) | $ | 81,114 |  |  | $ | 67,757 |  |  | $ | (67,499) |  |  | $ | 81,372 |
Other Segment Disclosures: |  |  |  |  |  |  |
Interest income (included in net revenue) | $ | 1,167 |  |  | $ | 3,803 |  |  | $ | 10,035 |  |  | $ | 15,005 |
Depreciation and amortization of property (included in adjusted non-compensation expense) | $ | 2,007 |  |  | $ | 1,410 |  |  | $ | 5,536 |  |  | $ | 8,953 |
| Nine Months Ended September 30, 2024
| Financial Advisory |  | Asset Management |  | Corporate |  | Total
Net Revenue - U.S. GAAP Basis | $ | 1,235,732 |  |  | $ | 874,841 |  |  | $ | 124,395 |  |  | $ | 2,234,968 |
Adjusted Compensation and Benefits Expense | 815,764 |  |  | 430,711 |  |  | 124,425 |  |  | 1,370,900 |
Adjusted Non-compensation Expense | 148,310 |  |  | 169,320 |  |  | 103,514 |  |  | 421,144 |
Other Segment Items | (12,355) |  |  | (62,178) |  |  | (83,314) |  |  | (157,847) |
Adjusted Operating Income (Loss) | $ | 259,303 |  |  | $ | 212,632 |  |  | $ | (186,858) |  |  | $ | 285,077 |
Other Segment Disclosures: |  |  |  |  |  |  |
Interest income (included in net revenue) | $ | 3,443 |  |  | $ | 11,323 |  |  | $ | 24,564 |  |  | $ | 39,330 |
Depreciation and amortization of property (included in adjusted non-compensation expense) | $ | 6,422 |  |  | $ | 4,091 |  |  | $ | 16,733 |  |  | $ | 27,246 |
The table below provides a reconciliation of the Company's consolidated adjusted operating income to the Company’s consolidated U.S. GAAP operating income.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Adjusted Operating Income | $ | 101,341 |  |  | $ | 81,372 |  |  | $ | 283,590 |  |  | $ | 285,077 |
Adjustments: |  |  |  |  |  |  |
Operating income related to noncontrolling interests and similar arrangements (a) | 2,252 |  |  | 8,192 |  |  | 9,835 |  |  | 14,803 |
Interest expense (b) | (22,634) |  |  | (22,474) |  |  | (64,698) |  |  | (65,724) |
Amortization and other acquisition-related costs | (27) |  |  | (53) |  |  | (79) |  |  | (189) |
Expenses associated with senior management transition (c) | (6,148) |  |  | – |  |  | (6,148) |  |  | – |
Losses associated with cost-saving initiatives (d) | – |  |  | – |  |  | – |  |  | (587) |
Expenses associated with cost-saving initiatives | – |  |  | – |  |  | – |  |  | (48,142) |
Gain on sale of property (e) | – |  |  | 114,271 |  |  | – |  |  | 114,271 |
Expenses associated with sale of property (f) | – |  |  | (20,121) |  |  | – |  |  | (20,121) |
Benefit pursuant to tax receivable obligation ("TRA") (g) | 20,146 |  |  | – |  |  | 20,146 |  |  | – |
Operating Income - U.S. GAAP Basis | $ | 94,930 |  |  | $ | 161,187 |  |  | $ | 242,646 |  |  | $ | 279,388 |
_____________________ (a)Revenue and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts. (b)Interest expense (excluding interest expense incurred by LFB) is added back in determining adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business. (c)Represents expenses associated with the upcoming departure of an executive officer. (d)Represents the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss in the nine month period ended September 30, 2024. (e)Represents gain on the sale of an owned office building. (f)Represents estimated statutory profit sharing expenses associated with the sale of an owned office building. (g)Represents the effect of the periodic valuation of the TRA liability.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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