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Commitments and Contingencies | 6 Months Ended
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Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Note 14. Commitments and Contingencies Operating Leases The Company leases office space and various equipment under non-cancelable operating leases, with the longest lease expiring in 2036. These lease agreements provide various renewal options. Rent expense for the various leased office space and equipment was approximately $1.4 million and $2.9 million for the three and six months ended June 30, 2026, respectively, and $1.3 million and $2.7 million for the three and six months ended June 30, 2025, respectively, which was included in general, administrative, and other expense on the Consolidated Statements of Operations. The Company leases an insignificant amount of office equipment under non-cancelable financing leases, with the longest lease expiring in 2030. The finance lease right-of-use asset is included in right-of-use assets and the finance lease liability is included in lease liabilities in the Consolidated Balance Sheets. Amortization and interest expense for the finance leased equipment are included in general, administrative, and other in the Consolidated Statements of Operations. The following table presents information regarding the Company’s operating leases as of June 30, 2026:
Operating lease right-of-use assets |  | $ | 21,555 |
Operating lease liabilities |  | $ | 28,218 |
Net cash paid during the six months ended June 30, 2026 for operating lease liabilities |  | $ | 2,265 |
Weighted-average remaining lease term (in years) |  |  | 6.07 |
Weighted-average discount rate |  |  | 6.10 | %
The future contractual lease payments as of June 30, 2026 are as follows:
2026 |  | $ | 3,011 |
2027 |  |  | 5,721 |
2028 |  |  | 5,196 |
2029 |  |  | 5,778 |
2030 |  |  | 5,432 |
Thereafter |  |  | 9,050 |
Total undiscounted lease payments |  |  | 34,188 |
Less imputed interest |  |  | (5,970 | )
Total operating lease liabilities |  | $ | 28,218 |
Earnout Payment With the acquisition of WTI, an earnout payment of up to $70.0 million of cash and common stock may be earned upon meeting certain performance metrics. Upon the achievement of $20.0 million, $22.5 million, and $25.0 million of EBITDA, $35.0 million, $17.5 million, and $17.5 million are earned, respectively. Of the total amount, $50.0 million can be earned by the sellers and the remaining $20.0 million would be allocated to employees of the Company at the time the earnout is earned. Payment to both sellers and employees is contingent on continued employment and, therefore, these earnout payments are recorded as compensation and benefits expense on the Consolidated Statements of Operations. Payments will be made in cash, with the option to pay up to 50.0% in units of Ridgepost, LLC, no later than 90 days following the last day of the calendar quarter in which a milestone payment is achieved. Total payments will not exceed $70.0 million and any amounts paid will be paid by October 2027. The Company will evaluate whether each earnout hurdle is probable of occurring and recognize an expense over the period the hurdle is expected to be achieved. As of June 30, 2026 and December 31, 2025, the first hurdle has been achieved; however, the Company does not expect the second or third EBITDA hurdles to be achieved. For the three and six months ended June 30, 2026, $0 of expense was recognized. For the three and six months ended June 30, 2025, $6.5 million and $3.5 million was recognized in compensation and benefits in the Consolidated Statements of Operations, respectively, which included a reversal of expense due to a change in estimate for the second EBITDA hurdle. As of December 31, 2025, the Company has paid $35.0 million for the achievement of the first EBITDA hurdle. As of June 30, 2026 and December 31, 2025, there was no remaining liability related to the WTI earnout. Bonus Payment In connection with the acquisition of WTI, certain employees entered into employment agreements. As part of these employment agreements, certain employees may receive a one-time bonus payment if the employee is employed by the Company as of the fifth anniversary of the effective date and the trailing twelve-month EBITDA of WTI at that time is equal to or greater than $20.0 million. Payment can be made in cash or stock of Ridgepost, provided that no more than $5.0 million will be payable in cash. Total payment will not exceed $10.0 million and any amounts will be paid in October 2027, the fifth anniversary of the effective date. As of June 30, 2026 and December 31, 2025, the Company does not expect the trailing twelve-month EBITDA target to be met. For the three and six months ended June 30, 2026, the Company recognized $0 of expense, and for the three and six months ended June 30, 2025, $0.5 million and $1.0 million was recognized, respectively, which is included in compensation and benefits on the Consolidated Statements of Operations. As of June 30, 2026 and December 31, 2025, there was no remaining liability related to the WTI Bonus on the Consolidated Balance Sheets. Revenue Share Arrangement The Company recognizes accrued contingent liabilities and contingent payments to customers assets in the Consolidated Balance Sheets for agreements that exist between ECG and third party customers ("Third Parties"). The agreements require ECG to share in certain revenues earned with the Third Parties and also include an option for the Third Parties to sell back the revenue share to ECG at a set multiple. Additionally, ECG holds the option to buy back 50% of the revenue share at a set multiple. The options to repurchase the revenue share initially became exercisable in July 2025. Some Third Parties extended their rights to sell back their revenues during 2025. The remaining Third Parties extended their participations and their options to sell back their revenues, which are not exercisable until July 1, 2029. The Company’s contingent liabilities and corresponding contingent payments to customers are recognized once determined to be probable and estimable. The contingent payments to customers are amortized and recorded within management and advisory fees on the Consolidated Statements of Operations over the estimated term of the underlying funds. As of June 30, 2026, the Company has determined that the put options are probable of being exercised and has accrued estimated contingent liabilities and contingent payments to customers. As of June 30, 2026 and December 31, 2025, the associated liabilities were $19.0 million and $20.4 million, respectively, and are included in accrued contingent liabilities on the Consolidated Balance Sheets. The associated contingent payments to customers assets were $16.0 million and $18.2 million as of June 30, 2026 and December 31, 2025, respectively. The Company recognized $0.4 million and $0.7 million of amortization of contingent payments to customers for the three and six months ended June 30, 2026, respectively, and $0.2 million and $0.3 million of amortization of contingent payments to customers for the three and six months ended June 30, 2025, respectively, which is included in management and advisory fees on the Consolidated Statements of Operations. The Company will reassess each period and recognize all changes, if necessary. On December 23, 2024, the Company became a guarantor for Clifford GP on a related but separate put option and call option with the Third Parties on related terms. The Company would be required to settle either the put or call option if either is exercised and Clifford GP does not have the means to settle itself. The Company records accrued contingent liabilities when it is probable and estimable that the Company would need to settle as guarantor. As of June 30, 2026 and December 31, 2025, the associated liabilities were $9.5 million and $9.7 million, respectively, and are included in accrued contingent liabilities on the Consolidated Balance Sheets. There was $0 and $0.2 million reversal of expense for the three and six months ended June 30, 2026, respectively, an d $0 and $0.3 million of expense rec ognized for both the three and six months ended June 30, 2025, which were included in other income on the Consolidated Statements of Operations. The Company will reassess each period and recognize changes when necessary. Contingencies We may be involved, either as plaintiff or defendant, in a variety of ongoing claims, demands, suits, investigations, tax matters and proceedings that arise from time to time in the ordinary course of our business. We evaluated all potentially significant litigation, government investigations, claims or assessments in which we are involved and disclosed anything more likely than not to be recognized below, if any are applicable. We do not believe that any of these matters, individually or in the aggregate, will result in losses that are materially in excess of amounts already recognized, if any. In August 2025, a contract dispute arose between a subsidiary of the Company and its former placement agent. Among other claims threatened, the placement agent contended a breach of contract based upon the subsidiary allegedly engaging investors sourced from the placement agent to make subsequent investments, but not working through the placement agent to do so. The placement agent sought compensation for fees associated with the placement of these investments and other damages. As of July 2026, settlement discussions are ongoing and the parties are exploring potential resolution through mediation. At this time, the Company cannot reasonably estimate a possible loss or range of loss because the matter remains subject to significant uncertainties, including the nature and timing of any potential resolution through mediation, settlement, arbitration, or judicial proceedings. As such, no liability has been recorded as of June 30, 2026.

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