Fixed Assets, Net

9 Months Ended

Sep. 30, 2025

Property, Plant and Equipment [Abstract]

Fixed assets, net consisted of the following (in thousands):


	September 30, 2025		December 31, 2024
Computer and communications equipment	$	122,549	$	112,463
Software, including software development costs	432,634		401,040
Leasehold improvements and other fixed assets	124,306		108,303
	679,489		621,806
Less: accumulated depreciation and amortization	(486,910)		(431,794)
Fixed assets, net	$	192,579	$	190,012

Depreciation expense was $6.3 million and $5.7 million for the three months ended September 30, 2025 and 2024, respectively. Depreciation expense was $17.8 million and $16.4 million for the nine months ended September 30, 2025 and 2024, respectively. Depreciation is included as part of “Occupancy and equipment” in the Company’s unaudited Condensed Consolidated Statements of Operations.

The Company has $5.1 million and $4.6 million of asset retirement obligations related to certain of its leasehold improvements as of September 30, 2025 and December 31, 2024, respectively. The associated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset. The liability is discounted and accretion expense is recognized using the credit adjusted risk-free interest rate in effect when the liability was initially recognized.

For the three months ended September 30, 2025 and 2024, software development costs totaling $13.7 million and $11.0 million, respectively, were capitalized. For the nine months ended September 30, 2025 and 2024, software development costs totaling $32.1 million and $31.4 million, respectively, were capitalized. Amortization of software development costs totaled $10.8 million and $9.6 million for the three months ended September 30, 2025 and 2024, respectively. Amortization of software development costs totaled $32.1 million and $30.2 million for the nine months ended September 30, 2025 and 2024, respectively. Amortization of software development costs is included as part of “Occupancy and equipment” in the Company’s unaudited Condensed Consolidated Statements of Operations.

Impairment charges of $0.1 million and $0.2 million were recorded for the three months ended September 30, 2025 and 2024, respectively, related to the evaluation of capitalized software projects for future benefit and for fixed assets no longer in service. Impairment charges of $1.7 million and $0.5 million were recorded for the nine months ended September 30, 2025 and 2024, respectively, related to the evaluation of capitalized software projects for future benefit and for fixed assets no longer in service. Impairment charges related to capitalized software and fixed assets are reflected in “Occupancy and equipment” in the Company’s unaudited Condensed Consolidated Statements of Operations.