v3.25.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Disclosure, Measurement of Contingent Consideration Using Monte-Carlo Simulation Model
The following tables summarize inputs used in the measurement of contingent consideration (dollars in thousands):
Quantitative Information About Level 3 Fair Value Measurements
June 30, 2025TypeValuation TechniquesUnobservable InputsRange
$106,034 Contingent Consideration
Monte-Carlo Simulation Model
Forecasted Growth Rates3.0 %-26.0 %
Discount Rate12.0 %-19.1 %
Equivalency Rate(1)
4.8 %-6.1 %
18,815 
Contingent Consideration
Probability Weighted Expected Return Method
Equivalency Rate(1)
5.3 %-5.3 %
Conversion Rate
— %-100.0 %
$124,849 
____________________
(1)Equivalency rate is defined as the prevailing market interest rate used to discount future payments.
Quantitative Information About Level 3 Fair Value Measurements
December 31, 2024TypeValuation TechniquesUnobservable InputsRange
$170,343 Contingent Consideration
Monte-Carlo Simulation Model
Forecasted Growth Rates2.0 %-29.5 %
Discount Rate10.5 %-18.0 %
Equivalency Rate(1)
4.9 %-5.8 %
26,555 
Contingent Consideration
Probability Weighted Expected Return Method
Equivalency Rate(1)
5.7 %-5.7 %
Conversion Rate
— %-100.0 %
$196,898 
____________________
(1)Equivalency rate is defined as the prevailing market interest rate used to discount future payments.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table summarizes the changes in fair value for the Company’s Level 3 liabilities during the periods presented (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Balance - Beginning of period
$161,372 $87,262 $196,898 $118,844 
Additions and purchase accounting adjustments
(9,374)20,462 (9,245)40,380 
Payments
(27,458)(2,500)(69,707)(54,000)
Fair value adjustments
309 24,624 6,903 24,624 
Balance - End of period
$124,849 $129,848 $124,849 $129,848 
Financial assets and financial liabilities measured at fair value on a recurring basis
The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
June 30, 2025Level 1Level 2Level 3Total
Assets    
Cash equivalents$802,440 $— $— $802,440 
Cash equivalents segregated under federal or other regulations647,455 — — 647,455 
Restricted cash
111,713 — — 111,713 
Investment securities — trading:    
U.S. treasury obligations109,419 — — 109,419 
Mutual funds14,900 — — 14,900 
Money market funds123 — — 123 
Equity securities168 — — 168 
Debt securities— 29 — 29 
Total investment securities — trading124,610 29 — 124,639 
Other assets:
Deferred compensation plan956,489 — — 956,489 
Fractional shares — investment(1)
313,399 — — 313,399 
Other investments— 2,313 — 2,313 
Total other assets:1,269,888 2,313 — 1,272,201 
Total assets at fair value$2,956,106 $2,342 $— $2,958,448 
Liabilities    
Other liabilities:
Securities sold, but not yet purchased:    
Equity securities$181 $— $— $181 
Mutual funds
17 — — 17 
Debt securities
— 12 — 12 
Total securities sold, but not yet purchased198 12 — 210 
Fractional shares — repurchase obligation(1)
313,399 — — 313,399 
Contingent consideration
— — 124,849 124,849 
Total other liabilities313,597 12 124,849 438,458 
Total liabilities at fair value$313,597 $12 $124,849 $438,458 
____________________
(1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s dividend reinvestment program (“DRIP”).
The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
December 31, 2024Level 1Level 2Level 3Total
Assets
Cash equivalents$53,672 $— $— $53,672 
Cash equivalents segregated under federal or other regulations672,164 — — 672,164 
Restricted cash
100,368 — — 100,368 
Investment securities — trading:
Mutual funds13,627 — — 13,627 
U.S. treasury obligations28,511 — — 28,511 
Money market funds110 — — 110 
Equity securities8 — — 8 
Debt securities— 11 — 11 
Total investment securities — trading42,256 11 — 42,267 
Other assets:
Deferred compensation plan856,843 — — 856,843 
Fractional shares — investment(1)
278,683 — — 278,683 
Other investments— 3,989 — 3,989 
Total other assets1,135,526 3,989 — 1,139,515 
Total assets at fair value$2,003,986 $4,000 $— $2,007,986 
Liabilities
Other liabilities:
Securities sold, but not yet purchased:
Equity securities$151 $— $— $151 
Debt Securities
— 18— 18
Total securities sold, but not yet purchased151 18 — 169 
Fractional shares — repurchase obligation(1)
278,683 — — 278,683 
    Contingent consideration
— — 196,898 196,898 
Total other liabilities278,834 18 196,898 475,750 
Total liabilities at fair value$278,834 $18 $196,898 $475,750 
____________________
(1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP.
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value
The following tables summarize the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not measured at fair value (in thousands):
June 30, 2025Carrying ValueLevel 1Level 2Level 3Total Fair Value
Assets    
Cash$3,382,897 $3,382,897 $— $— $3,382,897 
Cash segregated under federal or other regulations963,745 963,745 — — 963,745 
Restricted cash4,962 4,962 — — 4,962 
Receivables from clients, net710,463 — 710,463 — 710,463 
Receivables from brokers, dealers and clearing organizations129,490 — 129,490 — 129,490 
Advisor repayable loans, net(1)
374,346 — — 300,384 300,384 
Other receivables, net951,063 — 951,063 — 951,063 
Investment securities — held-to-maturity securities15,323 — 15,395 — 15,395 
Other assets:
Securities borrowed8,146 — 8,146 — 8,146 
Deferred compensation plan(2)
10,404 10,404 — — 10,404 
Other investments(3)
8,332 — 8,332 — 8,332 
Total other assets26,882 10,404 16,478 — 26,882 
Liabilities
Client payables$2,090,520 $— $2,090,520 $— $2,090,520 
Payables to brokers, dealers and clearing organizations273,593 — 273,593 — 273,593 
Corporate debt and other borrowings, net7,175,032 — 7,284,719 — 7,284,719 
December 31, 2024Carrying ValueLevel 1Level 2Level 3Total Fair Value
Assets
Cash$913,407 $913,407 $— $— $913,407 
Cash segregated under federal or other regulations925,085 925,085 — — 925,085 
Restricted cash19,356 19,356 — — 19,356 
Receivables from clients, net633,834 — 633,834 — 633,834 
Receivables from brokers, dealers and clearing organizations76,545 — 76,545 — 76,545 
Advisor repayable loans, net(1)
360,760 — — 281,146 281,146 
Other receivables, net902,777 — 902,777 — 902,777 
Investment securities - held-to-maturity securities15,214 — 15,190 — 15,190 
Other assets:
Deferred compensation plan(2)
8,742 8,742 — — 8,742 
Securities borrowed4,811 — 4,811 — 4,811 
Other investments(3)
7,706 — 7,706 — 7,706 
Total other assets21,259 8,742 12,517 — 21,259 
Liabilities
Client payables$1,898,665 $— $1,898,665 $— $1,898,665 
Payables to brokers, dealers and clearing organizations129,228 — 129,228 — 129,228 
Corporate debt and other borrowings, net5,494,724 — 5,480,389 — 5,480,389 
__________________
(1)Includes repayable loans and forgivable loans which have converted to repayable upon advisor termination or change in agreed upon terms.
(2)Includes cash balances awaiting investment or distribution to plan participants.
(3)Other investments include Depository Trust Company common shares and Federal Reserve stock.