XML 57 R35.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Information [Abstract]  
Segment Information

27. Segment Information

The Company, through its subsidiaries in the U.S. and Europe, is a global financial innovator, offering a diverse suite of ETPs, models, solutions and products leveraging blockchain technology. The Company conducts business as a single operating segment as an ETP sponsor and asset manager, which is based upon the Company’s current organizational and management structure, as well as information used by the CODM to allocate resources and assess performance and other factors. The accounting policies of the segment are the same as those described in Note 2.

The key measures of segment profit or loss that the CODM uses to allocate resources and assess performance are the Company’s consolidated net income, as reported on the Consolidated Statements of Operations, as well as adjusted operating income and adjusted operating income margin, which are exclusive of items that are non-recurring or not core to the Company’s operating business.

The table below discloses these key measures and is inclusive of a reconciliation of the Company’s operating income and operating income margin as computed under U.S. GAAP to the Company’s Non-GAAP adjusted operating income and adjusted operating income margin utilized by the CODM:

   2024  2023  2022
Net income  $66,693   $102,546   $50,684 
                
Adjusted Operating Income Margin               
Operating revenues  $427,737   $349,035   $301,345 
Less: Legal expenses expected to be covered by insurance   (4,306)   
—
    
—
 
Operating revenues, as adjusted  $423,431   $349,035   $301,345 
Operating income  $137,293   $87,492   $60,085 
Add back: Expenses incurred in response to an activist campaign   4,966    5,880    4,459 
Adjusted operating income  $142,259   $93,372   $64,544 
Operating income margin   32.1%    25.1%    19.9% 
Adjusted operating income margin   33.6%    26.8%    21.4% 

Expenses incurred in response to an activist campaign for the years ended December 31, 2024, 2023 and 2022 include $4,857, $5,734 and $4,187, respectively, of professional fees, and $109, $146 and $272, respectively, of other expenses.

All expense categories on the Consolidated Statements of Operations are significant and there are no other significant segment expenses that would require disclosure. Assets provided to the CODM are consistent with those reported on the Consolidated Balance Sheets with particular emphasis on the Company’s available liquidity, including its cash, cash equivalents and restricted cash, financial instruments owned, accounts receivable and securities held-to-maturity, reduced by current liabilities, seed capital and regulatory capital requirements.

There are no intra-entity sales or transfers and no significant expense categories regularly provided to the CODM beyond those disclosed in the Consolidated Statements of Operations. The CODM manages the business using consolidated expense information, adjusted for items that are non-recurring or not core to the Company’s operating business as disclosed in the table above, as well as regularly provided budgeted or forecasted expense information for the single operating segment.

Information related to the Company’s products and services and geographical distribution of revenues is disclosed in Note 16.