v3.26.1
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The following tables present information on the financial assets and liabilities measured and recorded at fair value on a recurring basis as of December 31, 2025 and 2024.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2025 Using
Fair value at December 31,
2025		Quoted prices in active markets
for identical assets
 (Level 1)		Other observable inputs
 (Level 2)		Significant unobservable inputs
 (Level 3)
Assets:
Securities and other investments owned:
Equity securities$304,422 $233,199 $— $71,223 
Partnership interests and other investments40,082 — — 40,082 
Corporate bonds31,751 — 31,751 — 
Other fixed income securities4,373 2,957 1,416 — 
Total securities and other investments owned380,628 236,156 33,167 111,305 
Loans receivable, at fair value26,303 — — 26,303 
Total assets measured at fair value$406,931 $236,156 $33,167 $137,608 
Liabilities:
Securities sold not yet purchased:
Equity securities$9,342 $9,342 $— $— 
Corporate bonds467 — 467 — 
Total securities sold not yet purchased9,809 9,342 467 — 
Liability-classified warrants6,400 — — 6,400 
Total liabilities measured at fair value$16,209 $9,342 $467 $6,400 
Financial Assets and Liabilities Measured at Fair Value on a
Recurring Basis at December 31, 2024 Using
Fair value at December 31,
2024		Quoted prices in active markets
for identical assets
 (Level 1)		Other observable inputs
 (Level 2)		Significant unobservable inputs
 (Level 3)
Assets:
Securities and other investments owned:
Equity securities$165,408 $124,892 $— $40,516 
Corporate bonds29,027 25,461 3,566 — 
Other fixed income securities4,923 — 4,923 — 
Total securities and other investments owned199,358 150,353 8,489 40,516 
Loans receivable, at fair value90,103 — — 90,103 
Total assets measured at fair value$289,461 $150,353 $8,489 $130,619 
Liabilities:
Securities sold not yet purchased:
Corporate bonds$1,891 $— $1,891 $— 
Other fixed income securities3,784 — 3,784 — 
Total securities sold not yet purchased5,675 — 5,675 — 
Contingent consideration4,538 — — 4,538 
Total liabilities measured at fair value$10,213 $— $5,675 $4,538 
As of December 31, 2025 and 2024, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $137,608 and $130,619, respectively, or 8.1% and 7.3%, respectively, of the Company’s total assets. In determining the fair value for these Level 3 financial assets, the Company analyzes various financial, performance and market factors to estimate the value, including where applicable, over-the-counter market trading activity. The fair value for individual Level 3 financial assets and liabilities have various financial inputs which include multiple of sales, the market price of related securities, annualized volatility, discount rates, recovery rates and expected term inputs that may change at each reporting period and result in an increase or decrease in the valuation of Level 3 financial assets and liabilities.
The following table summarizes the significant unobservable inputs in the fair value measurement of Level 3 financial assets and liabilities by category of investment and valuation technique as of December 31, 2025 and 2024:
Fair value at
December 31,
2025
Valuation
Technique		Unobservable
Input		Range
Weighted
Average(1)
Assets:
Equity securities$25,572 Market approachMultiple of Sales
0.7x - 6.0x
2.3x
Market price of related security
$2.14 - $12.01
$10.97
43,101 Monte Carlo simulationAnnualized volatility
120.0% - 148.0%
121.0%
2,550 Option pricing modelAnnualized volatility
46.0% - 115.0%
57.0%
Partnership interests and other investments40,082 Market approachDiscount rate
—% - 3.5%
0.5%
Market price of related security
$421.00
$421.00
Loans receivable at fair value24,468 Discounted cash flowDiscount rate
6.8% - 56.5%
21.0%
1,835 Market approachMarket price of related security
$8.56
$8.56
Total Level 3 assets measured at fair value$137,608 
Liabilities:
Liability-classified warrants$6,400 Monte Carlo simulation and Black-Scholes option pricing modelAnnualized volatility
85.0%
85.0%
Discount for lack of marketability
14.7%
14.7%
Total Level 3 liabilities measured at fair value$6,400 
(1) Unobservable inputs were weighted by the relative fair value of the financial instruments.
The following table summarizes the significant unobservable inputs in the fair value measurement of Level 3 financial assets and liabilities by category of investment and valuation technique as of December 31, 2024:
Fair value at December 31,
2024		Valuation TechniqueUnobservable InputRange
Weighted
Average(1)
Assets:
Equity securities$34,654 Market approach
Multiple of EBITDA(2)
6.3x
6.3x
Multiple of Sales
2.1x - 8.0x
3.1x
Market price of related security
$9.97 - $11.10
$10.76
5,862 Option pricing modelAnnualized volatility
47.0% - 171.0%
87.0%
Loans receivable at fair value86,150 Discounted cash flowDiscount rate
7.3% - 69.1%
19.7%
3,953 Market approachMarket price of related security
$9.60 - $16.48
$12.90
Total Level 3 assets measured at fair value$130,619 
Liabilities:
Contingent consideration$4,538 Discounted cash flowDiscount rate
5.0% - 7.5%
5.0%
Total Level 3 liabilities measured at fair value$4,538 
(1) Unobservable inputs were weighted by the relative fair value of the financial instruments.
(2) Multiple of earnings before interest, taxes, depreciation, and amortization (“EBITDA”).
The changes in Level 3 fair value hierarchy during the year ended December 31, 2025 and 2024 are as follows:
Equity SecuritiesPartnership Interests And Other InvestmentsLoans Receivable at Fair ValueContingent ConsiderationLiability-Classified WarrantsEmbedded Derivatives
Year Ended December 31, 2025
Level 3 Balance at Beginning of Year$40,516 $— $90,103 $4,538 $— $— 
Fair Value Adjustments(1)
(362)— (448)(4,394)(1,460)(8,119)
Relating to Undistributed Earnings— — 16 — — — 
Purchases/Originations372,104 — 117,714 — 7,860 11,244 
Sales(10,586)— (10,415)— — — 
Settlements / Repayments(330,449)— (170,667)(144)— (3,125)
Transfers in and /or out of Level 3(2)
— 40,082 — — — — 
Level 3 Balance at End of Period$71,223 $40,082 $26,303 $— $6,400 $— 
Change in unrealized gains (losses)(3)
$(339)$— $(1,985)$— $1,460 $— 
Year Ended December 31, 2024
Level 3 Balance at Beginning of Year$452,581 $— $532,419 $25,194 $— $— 
Fair Value Adjustments(4)
(349,918)— (325,499)850 — — 
Relating to Undistributed Earnings20 — 5,420 — — — 
Purchases/Originations3,862 — 107,025 — — — 
Sales(78,197)— (30,936)— — — 
Settlements / Repayments13,245 — (198,326)(10,693)— — 
Transfers in and /or out of Level 3(5)
(1,077)— — (10,813)— — 
Level 3 Balance at End of Period$40,516 $— $90,103 $4,538 $— $— 
Change in unrealized gains (losses)(3)
$(65,839)$— $(335,295)$— $— $— 
(1)
Fair value adjustments during the year ended December 31, 2025 includes the following: $(362) of realized and unrealized gains (losses) on equity securities is comprised of $(1,493) included in “Trading gains (losses), net” and $1,131 included in “Realized and unrealized gains (losses) on investments”, $(448) of fair value adjustments on loans included in “Fair value adjustments on loans”, $4,394 of realized and unrealized gains related to contingent consideration included in “Selling, general and administrative expenses”, $1,460 of realized and unrealized gains related to liability-classified warrants included in “Change in fair value of financial instruments and other”, and $8,119 of unrealized gains related to embedded derivatives included in “Change in fair value of financial instruments and other” line items in the accompanying consolidated statements of operations.
(2)
At December 31, 2025, investments in certain funds with a fair value of $40,082 was transferred from NAV to Level 3. The transfer occurred because NAV no longer represented fair value due to adjustments implemented by the fund managers. The investment is now valued using a market approach based on recent observable transactions adjusted for specific risk factors.
(3)
For the years ended December 31, 2025 and 2024, the change in unrealized gains (losses) is related to financial instruments held at the end of each respective reporting period.
(4)
Fair value adjustments during the year ended December 31, 2024 includes the following: $(349,918) of realized and unrealized gains (losses) on equity securities is comprised of $(70,437) included in “Trading gains (losses), net” and $(279,481) included in “Realized and unrealized gains (losses) on investments”, $(325,499) of fair value adjustments on loans included in “Fair value adjustments on loans”, and $(850) realized and unrealized losses related to contingent consideration included in “Selling, general and administrative expenses” line items in the accompanying consolidated statements of operations.
(5)
The $10,813 transfer out of Level 3 represents the reclassification of contingent consideration associated with Atlantic Coast Recycling to liabilities held for sale during the year ended December 31, 2024. Refer to Note 5 for more information.
Partnership and investment fund interests valued at NAV were $1,833 and $15,867 as of December 31, 2025 and 2024, respectively.
Beginning in April 2025, the Company entered into purchase agreements with public companies that allow the counterparties to put their convertible preferred stock to the Company from time to time at its discretion (the “Written Puts”) (see Note 30 – Commitments and Contingencies). The Written Puts are recognized at fair value on a recurring basis within the “Accrued expenses and other liabilities” line item on the consolidated balance sheet, with changes in fair value recognized in earnings.
At inception and as of December 31, 2025, the Company determined that the fair value of the Written Put liability is de minimis due to its discount to market prices being advantageous to the Company, and no liability or changes in earnings were recorded on the consolidated balance sheets or consolidated statements of operations, respectively. The Company holds the Written Puts as investments to advantageously monetize the underlying stock and provide capital raising activities for customers. The Company’s exposure is driven primarily by movements in the Issuer’s common stock price, the put writer’s credit, and by assumptions regarding the likelihood and timing of exercise.
Assets and Liabilities Not Measured at Fair Value
The carrying amounts reported in the consolidated financial statements for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and other liabilities approximate fair value based on the short-term maturity of these instruments.
December 31, 2025December 31, 2024
Fair Value Hierarchy LevelCarrying AmountFair ValueCarrying AmountFair Value
Notes payableLevel 2$— $— $28,021 $28,021 
Revolving credit facilityLevel 2$6,638 $6,638 $16,329 $16,329 
Term loans, netLevel 2$119,297 $120,931 $199,429 $199,429 
Senior notes payableLevel 2$1,033,782 $681,890 $1,530,561 $769,476 
New Notes payableLevel 3$268,016 $166,796 $— $— 

The carrying values of the Company’s notes payable, revolving credit facility, and term loans approximate their respective estimated fair values because the effective yield of such instrument is consistent with current market rates of interest for instruments of comparable credit risk. The Company used a market approach for estimating the fair value of senior notes payable as they are listed and actively traded on the Nasdaq with sufficient frequency and volume to utilize quoted market prices.
Nonrecurring Fair Value Measurement
The following table presents the carrying amounts of equity securities valued under the measurement alternative that were still held as of the balance sheet date for which a nonrecurring fair value measurement was recorded during the period:
Fair ValueLevel 2Level 3
As of December 31, 2025
Non-marketable equity securities measured using the measurement alternative$13,867 $13,739 $128 
As of December 31, 2024
Non-marketable equity securities measured using the measurement alternative$7,294 $7,294 $—