
	March 31, 2026		December 31, 2025
Computer and communications equipment	$	129,539	$	126,476
Software, including software development costs	425,359		416,516
Leasehold improvements and other fixed assets	126,572		125,225
	681,470		668,217
Less: accumulated depreciation and amortization	(500,436)		(486,137)
Fixed assets, net	$	181,034	$	182,080

Depreciation expense was $6.2 million and $5.5 million for the three months ended March 31, 2026 and 2025, respectively. Depreciation is included as part of “Occupancy and equipment” in the Company’s unaudited Condensed Consolidated Statements of Operations.

The Company had approximately $6.0 million of asset retirement obligations related to certain of its leasehold improvements as of both March 31, 2026 and December 31, 2025. The associated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset. The liability is discounted and accretion expense is recognized using the credit adjusted risk-free interest rate in effect when the liability was initially recognized.

For the three months ended March 31, 2026 and 2025, software development costs totaling $9.9 million and $10.2 million, respectively, were capitalized. Amortization of software development costs totaled $9.5 million and $11.1 million for the three months ended March 31, 2026 and 2025, respectively. Amortization of software development costs is included as part of “Occupancy and equipment” in the Company’s unaudited Condensed Consolidated Statements of Operations.

Impairment charges of $0.1 million and $0.4 million were recorded for the three months ended March 31, 2026 and 2025, respectively, related to the evaluation of capitalized software projects for future benefit and for fixed assets no longer in service. Impairment charges related to capitalized software and fixed assets are reflected in “Occupancy and equipment” in the Company’s unaudited Condensed Consolidated Statements of Operations.