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Leases | 9 Months Ended
--- | ---
Sep. 30, 2025
Leases [Abstract] |
Leases | Leases The Company, acting as a lessee, has operating leases and finance leases primarily relating to office space, data centers and office equipment. The leases have remaining lease terms of 0.1 years to 18.4 years, some of which include options to extend the leases in 1 to 5 year increments for up to 5 years. Renewal periods are included in the lease term only when renewal is reasonably certain, which is a high threshold and requires management to apply judgment to determine the appropriate lease term. Certain leases also include periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the termination option. The Company measures its lease payments by including fixed rental payments and, where relevant, variable rental payments tied to an index, such as the Consumer Price Index. Payments for leases in place before the date of adoption of ASC 842, Leases, were determined based on previous lease guidance. The Company recognizes lease expense for its operating leases on a straight-line basis over the lease term and variable lease expense not included in the lease payment measurement is recognized as incurred. Interest expense on finance leases is recognized using the effective interest method over the lease term. Pursuant to the accounting policy election, leases with an initial term of twelve months or less are not recognized on the balance sheet. The short-term lease expense over the period reasonably reflects the Company’s short-term lease commitments. ASC 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or cancellation provisions, and determining the discount rate. The Company determines whether an arrangement is a lease or includes a lease at the contract inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If the Company has the right to obtain substantially all of the economic benefits from, and can direct the use of, the identified asset for a period of time, the Company accounts for the identified asset as a lease. The Company has elected the practical expedient to not separate lease and non-lease components for all leases other than real estate leases. The primary non-lease component that is combined with a lease component represents operating expenses, such as utilities, maintenance or management fees. As the rate implicit in the lease is not usually available, the Company used an incremental borrowing rate based on the information available at the adoption of ASC 842 in determining the present value of lease payments for existing leases. The Company has elected to use a portfolio approach for the incremental borrowing rate, applying corporate bond rates to the leases. The Company calculated the appropriate rates with reference to the lease term and lease currency. The Company uses information available at the lease commencement date to determine the incremental borrowing rate for any new leases. The Company subleases certain real estate to its affiliates and to third parties. The value of these commitments is not material to the Company’s unaudited Condensed Consolidated Financial Statements. As of September 30, 2025, the Company did not have any leases that have not yet commenced but that create significant rights and obligations. Supplemental information related to the Company’s operating and financing leases is as follows (in thousands):
| Classification in Unaudited Condensed Consolidated Statements of Financial Condition |  | September 30, 2025 |  | December 31, 2024
Assets |  |  |  |  |
Operating lease ROU assets | Other assets |  | $ | 161,744 |  |  | $ | 114,456 |
Finance lease ROU assets | Fixed assets, net |  | $ | 1,990 |  |  | $ | 2,959 |
Liabilities |  |  |  |  |
Operating lease liabilities | Accounts payable, accrued and other liabilities |  | $ | 191,390 |  |  | $ | 135,825 |
Finance lease liabilities | Accounts payable, accrued and other liabilities |  | $ | 2,254 |  |  | $ | 3,249 |
| September 30, 2025 |  | December 31, 2024
Weighted-average remaining lease term |  |  |
Operating leases (years) | 8.8 |  | 6.8
Finance leases (years) | 1.7 |  | 2.4
Weighted-average discount rate |  |  |
Operating leases | 6.0 | % |  | 5.5 | %
Finance leases | 4.5 | % |  | 4.4 | %
The components of lease expense are as follows (in thousands):
| Classification in Unaudited Condensed Consolidated Statements of Operations |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Operating lease cost 1 | Occupancy and equipment |  | $ | 10,684 |  |  | $ | 9,547 |  |  | $ | 29,268 |  |  | $ | 26,145 |
Finance lease cost |  |  |  |  |  |  |  |  |
Amortization on ROU assets | Occupancy and equipment |  | $ | 326 |  |  | $ | 326 |  |  | $ | 979 |  |  | $ | 979 |
Interest on lease liabilities | Interest expense |  | $ | 67 |  |  | $ | 40 |  |  | $ | 226 |  |  | $ | 131 |
__________________________ 1 Short-term lease expense was not material for the three and nine months ended September 30, 2025 and 2024. The following table shows the Company’s maturity analysis of its lease liabilities as of September 30, 2025 (in thousands):
| September 30, 2025
| Operating leases |  | Finance leases
2025 (excluding the nine months ended September 30, 2025) | $ | 7,902 |  |  | $ | 433 |
2026 | 31,278 |  |  | 1,290 |
2027 | 28,492 |  |  | 627 |
2028 | 25,743 |  |  | — |
2029 | 20,980 |  |  | — |
Thereafter | 120,917 |  |  | — |
Total | $ | 235,312 |  |  | $ | 2,350 |
Interest | (43,922) |  |  | (96) |
Total | $ | 191,390 |  |  | $ | 2,254 |
The following table shows cash flow information related to lease liabilities (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
Cash paid for amounts included in the measurement of lease liabilities | 2025 |  | 2024 |  | 2025 |  | 2024
Operating cash flows from operating lease liabilities | $ | 11,022 |  |  | $ | 9,305 |  |  | $ | 31,211 |  |  | $ | 27,518 |
Operating cash flows from finance lease liabilities | $ | 27 |  |  | $ | 40 |  |  | $ | 91 |  |  | $ | 131 |
Financing cash flows from finance lease liabilities | $ | 326 |  |  | $ | 322 |  |  | $ | 979 |  |  | $ | 955 |
Leases | Leases The Company, acting as a lessee, has operating leases and finance leases primarily relating to office space, data centers and office equipment. The leases have remaining lease terms of 0.1 years to 18.4 years, some of which include options to extend the leases in 1 to 5 year increments for up to 5 years. Renewal periods are included in the lease term only when renewal is reasonably certain, which is a high threshold and requires management to apply judgment to determine the appropriate lease term. Certain leases also include periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the termination option. The Company measures its lease payments by including fixed rental payments and, where relevant, variable rental payments tied to an index, such as the Consumer Price Index. Payments for leases in place before the date of adoption of ASC 842, Leases, were determined based on previous lease guidance. The Company recognizes lease expense for its operating leases on a straight-line basis over the lease term and variable lease expense not included in the lease payment measurement is recognized as incurred. Interest expense on finance leases is recognized using the effective interest method over the lease term. Pursuant to the accounting policy election, leases with an initial term of twelve months or less are not recognized on the balance sheet. The short-term lease expense over the period reasonably reflects the Company’s short-term lease commitments. ASC 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or cancellation provisions, and determining the discount rate. The Company determines whether an arrangement is a lease or includes a lease at the contract inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If the Company has the right to obtain substantially all of the economic benefits from, and can direct the use of, the identified asset for a period of time, the Company accounts for the identified asset as a lease. The Company has elected the practical expedient to not separate lease and non-lease components for all leases other than real estate leases. The primary non-lease component that is combined with a lease component represents operating expenses, such as utilities, maintenance or management fees. As the rate implicit in the lease is not usually available, the Company used an incremental borrowing rate based on the information available at the adoption of ASC 842 in determining the present value of lease payments for existing leases. The Company has elected to use a portfolio approach for the incremental borrowing rate, applying corporate bond rates to the leases. The Company calculated the appropriate rates with reference to the lease term and lease currency. The Company uses information available at the lease commencement date to determine the incremental borrowing rate for any new leases. The Company subleases certain real estate to its affiliates and to third parties. The value of these commitments is not material to the Company’s unaudited Condensed Consolidated Financial Statements. As of September 30, 2025, the Company did not have any leases that have not yet commenced but that create significant rights and obligations. Supplemental information related to the Company’s operating and financing leases is as follows (in thousands):
| Classification in Unaudited Condensed Consolidated Statements of Financial Condition |  | September 30, 2025 |  | December 31, 2024
Assets |  |  |  |  |
Operating lease ROU assets | Other assets |  | $ | 161,744 |  |  | $ | 114,456 |
Finance lease ROU assets | Fixed assets, net |  | $ | 1,990 |  |  | $ | 2,959 |
Liabilities |  |  |  |  |
Operating lease liabilities | Accounts payable, accrued and other liabilities |  | $ | 191,390 |  |  | $ | 135,825 |
Finance lease liabilities | Accounts payable, accrued and other liabilities |  | $ | 2,254 |  |  | $ | 3,249 |
| September 30, 2025 |  | December 31, 2024
Weighted-average remaining lease term |  |  |
Operating leases (years) | 8.8 |  | 6.8
Finance leases (years) | 1.7 |  | 2.4
Weighted-average discount rate |  |  |
Operating leases | 6.0 | % |  | 5.5 | %
Finance leases | 4.5 | % |  | 4.4 | %
The components of lease expense are as follows (in thousands):
| Classification in Unaudited Condensed Consolidated Statements of Operations |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Operating lease cost 1 | Occupancy and equipment |  | $ | 10,684 |  |  | $ | 9,547 |  |  | $ | 29,268 |  |  | $ | 26,145 |
Finance lease cost |  |  |  |  |  |  |  |  |
Amortization on ROU assets | Occupancy and equipment |  | $ | 326 |  |  | $ | 326 |  |  | $ | 979 |  |  | $ | 979 |
Interest on lease liabilities | Interest expense |  | $ | 67 |  |  | $ | 40 |  |  | $ | 226 |  |  | $ | 131 |
__________________________ 1 Short-term lease expense was not material for the three and nine months ended September 30, 2025 and 2024. The following table shows the Company’s maturity analysis of its lease liabilities as of September 30, 2025 (in thousands):
| September 30, 2025
| Operating leases |  | Finance leases
2025 (excluding the nine months ended September 30, 2025) | $ | 7,902 |  |  | $ | 433 |
2026 | 31,278 |  |  | 1,290 |
2027 | 28,492 |  |  | 627 |
2028 | 25,743 |  |  | — |
2029 | 20,980 |  |  | — |
Thereafter | 120,917 |  |  | — |
Total | $ | 235,312 |  |  | $ | 2,350 |
Interest | (43,922) |  |  | (96) |
Total | $ | 191,390 |  |  | $ | 2,254 |
The following table shows cash flow information related to lease liabilities (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
Cash paid for amounts included in the measurement of lease liabilities | 2025 |  | 2024 |  | 2025 |  | 2024
Operating cash flows from operating lease liabilities | $ | 11,022 |  |  | $ | 9,305 |  |  | $ | 31,211 |  |  | $ | 27,518 |
Operating cash flows from finance lease liabilities | $ | 27 |  |  | $ | 40 |  |  | $ | 91 |  |  | $ | 131 |
Financing cash flows from finance lease liabilities | $ | 326 |  |  | $ | 322 |  |  | $ | 979 |  |  | $ | 955 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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