v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

4. Fair Value Measurements

The following table summarizes the valuation of the Company’s assets and liabilities measured at fair value as categorized based on the hierarchy described in Note 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

(In thousands)

 

As of March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

17,196

 

 

$

—

 

 

$

—

 

 

$

17,196

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

Corporate debt

 

—

 

 

 

60,063

 

 

 

—

 

 

 

60,063

 

Trading securities

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

 

—

 

 

 

100,019

 

 

 

—

 

 

 

100,019

 

Mutual funds held in rabbi trust

 

—

 

 

 

10,726

 

 

 

—

 

 

 

10,726

 

Interest rate swaps

 

—

 

 

 

319

 

 

 

—

 

 

 

319

 

Total assets

$

17,196

 

 

$

171,127

 

 

$

—

 

 

$

188,323

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward position

 

—

 

 

 

1,580

 

 

 

—

 

 

 

1,580

 

Total liabilities

$

—

 

 

$

1,580

 

 

$

—

 

 

$

1,580

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

23,355

 

 

$

—

 

 

$

—

 

 

$

23,355

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

Corporate debt

 

—

 

 

 

58,440

 

 

 

—

 

 

 

58,440

 

Trading securities

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

 

—

 

 

 

100,772

 

 

 

—

 

 

 

100,772

 

Mutual funds held in rabbi trust

 

—

 

 

 

11,465

 

 

 

—

 

 

 

11,465

 

Foreign currency forward position

 

—

 

 

 

1,847

 

 

 

—

 

 

 

1,847

 

Total assets

$

23,355

 

 

$

172,524

 

 

$

—

 

 

$

195,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds are included in cash and cash equivalents on the Consolidated Statements of Financial Condition. Securities available-for-sale and trading securities are included in investments, at fair value on the Consolidated Statements of Financial Condition. Securities classified within Level 2 were valued using a market approach utilizing prices and other relevant information generated by market transactions involving comparable assets. The foreign currency forward and interest rate swap contracts are included in either other assets or accounts payable, accrued expenses and other liabilities on the Consolidated Statements of Financial Condition, and are classified within Level 2 as the valuation inputs are based on quoted market prices. The mutual funds held in a rabbi trust represent investments associated with the Company’s deferred cash incentive plan.

During each of the three months ended March 31, 2026 and 2025, there were no transfers of financial assets or liabilities between Level 1, Level 2 and Level 3.

The table below presents the carrying value, fair value and fair value hierarchy category of the Company’s financial assets and liabilities that are not measured at fair value on the Consolidated Statements of Financial Condition. The carrying values of the Company’s financial assets and liabilities not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximate fair value due to the short-term nature of the underlying assets and liabilities.

 

Carrying Value

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

(In thousands)

 

As of March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets not measured at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

360,106

 

 

$

360,106

 

 

$

360,106

 

 

$

—

 

 

$

—

 

 

$

360,106

 

Cash segregated under federal regulations

 

49,053

 

 

 

49,053

 

 

 

49,053

 

 

 

—

 

 

 

—

 

 

 

49,053

 

Accounts receivable, net of allowance

 

128,171

 

 

 

128,171

 

 

 

—

 

 

 

128,171

 

 

 

—

 

 

 

128,171

 

Receivables from broker-dealers, clearing
   organizations and customers

 

977,049

 

 

 

977,049

 

 

 

120,471

 

 

 

856,578

 

 

 

—

 

 

 

977,049

 

Total assets

$

1,514,379

 

 

$

1,514,379

 

 

$

529,630

 

 

$

984,749

 

 

$

—

 

 

$

1,514,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities not measured at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payables to broker-dealers, clearing
   organizations and customers

$

696,302

 

 

$

696,302

 

 

$

—

 

 

$

696,302

 

 

$

—

 

 

$

696,302

 

Borrowings

 

228,250

 

 

 

228,250

 

 

 

—

 

 

 

228,250

 

 

 

—

 

 

 

228,250

 

Total liabilities

$

924,552

 

 

$

924,552

 

 

$

—

 

 

$

924,552

 

 

$

—

 

 

$

924,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets not measured at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

496,379

 

 

$

496,379

 

 

$

496,379

 

 

$

—

 

 

$

—

 

 

$

496,379

 

Cash segregated under federal regulations

 

48,722

 

 

 

48,722

 

 

 

48,722

 

 

 

—

 

 

 

—

 

 

 

48,722

 

Accounts receivable, net of allowance

 

100,989

 

 

 

100,989

 

 

 

—

 

 

 

100,989

 

 

 

—

 

 

 

100,989

 

Receivables from broker-dealers, clearing
   organizations and customers

 

489,211

 

 

 

489,211

 

 

 

107,223

 

 

 

381,988

 

 

 

—

 

 

 

489,211

 

Total assets

$

1,135,301

 

 

$

1,135,301

 

 

$

652,324

 

 

$

482,977

 

 

$

—

 

 

$

1,135,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities not measured at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payables to broker-dealers, clearing
   organizations and customers

$

325,959

 

 

$

325,959

 

 

$

—

 

 

$

325,959

 

 

$

—

 

 

$

325,959

 

Borrowings

 

220,000

 

 

 

220,000

 

 

 

—

 

 

 

220,000

 

 

 

—

 

 

 

220,000

 

Total liabilities

$

545,959

 

 

$

545,959

 

 

$

—

 

 

$

545,959

 

 

$

—

 

 

$

545,959

 

 

The Company enters into foreign currency forward contracts as an economic hedge against certain foreign currency transaction gains and losses in the Consolidated Statements of Operations. These forward contracts are for three-month periods and are used to limit exposure to foreign currency exchange rate fluctuations. The Company also enters into interest rate swap agreements to manage its exposure to the effect of interest rate changes on its unrealized gains and losses on U.S. Treasury investments. For both foreign currency forward contracts and interest rate swaps, the Company records the fair values of the asset in prepaid expenses and other assets or the fair value of the liability in accounts payable, accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. The following table summarizes the Company’s foreign currency forward positions and interest rate swaps:

 

As of

 

 

March 31, 2026

 

 

December 31, 2025

 

 

(In thousands)

 

Foreign currency forwards

 

 

 

 

 

Notional value

$

96,317

 

 

$

94,197

 

Fair value of notional

 

94,737

 

 

 

96,044

 

Fair value of the (liability)/asset

$

(1,580

)

 

$

1,847

 

 

 

 

 

 

 

Interest rate swaps

 

 

 

 

 

Notional value

$

100,000

 

 

$

—

 

Fair value of notional

 

100,319

 

 

 

—

 

Fair value of the asset/(liability)

$

319

 

 

$

—

 

 

 

 

 

 

 

Realized and unrealized gains and losses on foreign currency forward contracts and interest rate swaps are included in other, net in the Consolidated Statements of Operations. The following table summarizes the realized and unrealized gains and losses on foreign currency forward contracts and interest rate swaps:

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2026

 

 

2025

 

 

(In thousands)

 

Foreign currency forwards

 

 

 

 

 

Unrealized gain/(loss)

$

(3,426

)

 

$

3,556

 

Realized gain/(loss)

 

2,051

 

 

 

(1,693

)

Total gain/(loss)

$

(1,375

)

 

$

1,863

 

 

 

 

 

 

 

Interest rate swaps

 

 

 

 

 

Unrealized gain/(loss)

$

319

 

 

$

—

 

Realized gain/(loss)

 

3

 

 

 

—

 

Total gain/(loss)

$

322

 

 

$

—

 

The Company records restricted cash collateral deposits with its counterparty bank in prepaid expenses and other assets on the Consolidated Statements of Financial Condition. As of March 31, 2026, the Company maintained a cash collateral deposit of $1.2 million with its counterparty bank.

The following table summarizes the Company’s investments:

 

Amortized
cost

 

 

Gross
unrealized gains

 

 

Gross
unrealized losses

 

 

Fair
value

 

 

 

(In thousands)

 

As of March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt

$

 

60,076

 

 

 $

 

115

 

 

 $

 

(128

)

 

 $

 

60,063

 

Trading securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

 

 

100,447

 

 

 

 

—

 

 

 

 

(428

)

 

 

 

100,019

 

Mutual funds held in rabbi trust

 

 

10,070

 

 

 

 

701

 

 

 

 

(45

)

 

 

 

10,726

 

Total investments

$

 

170,593

 

 

 $

 

816

 

 

 $

 

(601

)

 

 $

 

170,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt

$

 

58,110

 

 

 $

 

333

 

 

 $

 

(3

)

 

 $

 

58,440

 

Trading securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

 

 

100,487

 

 

 

 

329

 

 

 

 

(44

)

 

 

 

100,772

 

Mutual funds held in rabbi trust

 

 

10,563

 

 

 

 

926

 

 

 

 

(24

)

 

 

 

11,465

 

Total investments

$

 

169,160

 

 

 $

 

1,588

 

 

 $

 

(71

)

 

 $

 

170,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of investments during the three months ended March 31, 2026 and 2025 were $6.2 million and $5.5 million, respectively. Proceeds from the sales and maturities of investments during the three months ended March 31, 2026 and 2025 were $4.3 million and $5.3 million, respectively.

The following table summarizes the Company’s unrealized and realized gains and losses on investments:

 

Three Months Ended March 31,

 

 

2026

 

 

2025

 

 

(In thousands)

 

Unrealized gains/(losses)

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

Corporate debt

$

 

(343

)

 

$

 

307

 

Trading securities

 

 

 

 

 

 

 

U.S. Treasuries

 

 

(761

)

 

 

 

1,066

 

Mutual funds held in rabbi trust

 

 

(245

)

 

 

 

(493

)

Total investments

$

 

(1,349

)

 

$

 

880

 

 

 

 

 

 

 

 

 

Realized gains/(losses)

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

Corporate debt

$

 

4

 

 

$

 

—

 

Trading securities

 

 

 

 

 

 

 

Mutual funds held in rabbi trust

 

 

61

 

 

 

 

47

 

Total investments

$

 

65

 

 

$

 

47

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on securities available-for-sale are included in accumulated other comprehensive loss on the Consolidated Statements of Financial Condition. Realized gains and losses on securities available-for-sale and realized and unrealized gains and losses on trading securities are included in other, net on the Consolidated Statements of Operations.

The following table summarizes the fair value of the Company’s corporate debt and U.S. Treasury investments based upon the contractual maturities:

 

Less than one year

 

 

Due in 1 - 5 years

 

 

Total

 

 

(In thousands)

 

As of March 31, 2026

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

Corporate debt

$

14,013

 

 

$

46,050

 

 

$

60,063

 

Trading securities

 

 

 

 

 

 

 

 

U.S. Treasuries

 

—

 

 

 

100,019

 

 

 

100,019

 

Total

$

14,013

 

 

$

146,069

 

 

$

160,082

 

 

 

 

 

 

 

 

 

As of December 31, 2025

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

Corporate debt

$

8,400

 

 

$

50,040

 

 

$

58,440

 

Trading securities

 

 

 

 

 

 

 

 

U.S. Treasuries

 

—

 

 

 

100,772

 

 

 

100,772

 

Total

$

8,400

 

 

$

150,812

 

 

$

159,212

 

 

 

 

 

 

 

 

 

 

The following table provides fair values and unrealized losses on the Company’s available-for-sale investments and the aging of securities’ continuous unrealized loss positions:

 

Less than Twelve Months

 

 

Twelve Months or More

 

 

Total

 

 

Fair value

 

 

Gross unrealized losses

 

 

Fair value

 

 

Gross unrealized losses

 

 

Fair value

 

 

Gross unrealized losses

 

 

(In thousands)

 

As of March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt

$

32,202

 

 

$

(128

)

 

$

—

 

 

$

—

 

 

$

32,202

 

 

$

(128

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt

$

3,506

 

 

$

(3

)

 

$

—

 

 

$

—

 

 

$

3,506

 

 

$

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During each of the three months ended March 31, 2026 and 2025, the Company did not recognize any credit losses on its available-for-sale securities. The unrealized losses on securities are due to changes in interest rates and market liquidity.