v3.25.1
Business Segment and Geographic Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Business Segment and Geographic Information Business Segment and Geographic Information
The Company operates electronic marketplaces for the trading of products across the rates, credit, equities and money markets asset classes and provides related pre-trade and post-trade services. Through its electronic marketplaces, the Company facilitates trading by clients across the institutional, wholesale, retail and corporates client sectors and builds comprehensive market data sets that it is able to separately sell to clients, primarily LSEG, as incremental market data revenue. Because of the highly integrated nature of these marketplaces and services and the global financial markets in which the Company competes, the Chief Operating Decision Maker (the “CODM”) reviews financial information on a global consolidated basis for purposes of making operating decisions, allocating resources and evaluating financial performance. As such, the Company has determined it operates as one operating segment and one reportable segment.
Consolidated net income is the measure of segment profit most consistent with U.S. GAAP that is regularly reviewed by the CODM to allocate resources and assess performance. Significant expense categories included in consolidated net income that are regularly provided to the CODM include employee compensation and benefits, technology and communications, general and administrative, professional fees and occupancy, each as presented on the accompanying condensed consolidated statements of income.
Information regarding revenue from external clients by client sector, significant segment expenses and consolidated net income is as follows:
Three Months Ended
March 31,
20252024
(dollars in thousands)
Revenues
Institutional$308,071 $247,337 
Wholesale102,287 97,211 
Retail35,895 35,169 
Corporates24,717 — 
Market Data38,707 29,022 
Total revenue509,677 408,739 
Less:
Employee compensation and benefits176,877 143,087 
Technology and communications28,728 21,310 
General and administrative19,740 10,854 
Professional fees12,458 11,800 
Occupancy5,074 4,673 
Other segment items (1)
98,495 73,633 
Net income$168,305 $143,382 
(1)Other segment items include depreciation and amortization, the tax receivable agreement liability adjustment, interest income, interest expense, other (income) loss, net and provision for income taxes, each as presented on the accompanying condensed consolidated statements of income.
The Company operates in the U.S. and internationally, primarily in the Europe, Asia and Australia regions. Variable revenues are generally attributed to geographic area based on the jurisdiction where the underlying transactions take place. The attribution of fixed revenues may vary by revenue and contract type. Given the global nature of the financial markets in which we operate and our clients’ worldwide businesses and contracts, the results by geographic region and allocation of revenues to individual countries are not necessarily meaningful in understanding the Company’s business.
The measure of segment assets is reported on the accompanying consolidated statements of financial condition as total consolidated assets. Total expenditures for additions to long-lived assets are as reported on the accompanying consolidated statements of cash flows. Long-lived assets are attributed to the geographic area based on the location of the particular subsidiary.
The following table provides revenue by geographic area:
Three Months Ended
March 31,
20252024
(dollars in thousands)
Revenues
U.S.$297,881 $254,098 
International211,796 154,641 
Total revenue$509,677 $408,739 
The following table provides information on the attribution of long-lived assets by geographic area:
March 31,December 31,
20252024
(dollars in thousands)
Long-lived assets
U.S.$4,731,389 $4,777,770 
International27,036 29,478 
Total$4,758,425 $4,807,248