v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting NOTE 5. SEGMENT REPORTING

ASU 2023-07, which is based on a management approach to segment reporting, establishes requirements to report segment revenue and significant expenses reported in net income, the primary measurement used by our Chief Operating Decision Maker ("CODM") in evaluating segment performance.

The Company provides investment management services and products to institutional, intermediary, retirement platforms and individual investors. The presentation of financial results as one reportable segment is consistent with the way discrete financial information is available that is regularly provided to our Chief Executive Officer, the CODM. When making decisions about allocating resources, assessing performance, and understanding how our long-term organic revenue growth is driven by investment decisions our CODM uses net income and considers the impact on consolidated, entity-wide performance and financial results.

Significant segment expenses are presented in the unaudited Condensed Consolidated Statements of Operations. Additional disaggregated significant segment expenses that are not separately presented in the unaudited Condensed Consolidated Statements of Operations are presented below:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Salaries, payroll related taxes and employee benefits

 

$

39,267

 

 

$

41,407

 

 

$

77,942

 

 

$

63,152

 

Incentive compensation

 

 

55,692

 

 

 

38,116

 

 

 

99,382

 

 

 

61,783

 

Sales-based compensation(1)

 

 

10,071

 

 

 

10,612

 

 

 

21,798

 

 

 

17,832

 

Equity awards granted to employees and directors(2)

 

 

15,776

 

 

 

5,658

 

 

 

23,188

 

 

 

9,162

 

Acquisition and transaction-related compensation

 

 

4,694

 

 

 

13,125

 

 

 

9,045

 

 

 

13,125

 

  Total personnel compensation and benefits expense

 

$

125,500

 

 

$

108,918

 

 

$

231,355

 

 

$

165,054

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Broker-dealer distribution fees

 

$

22,862

 

 

$

20,833

 

 

$

45,120

 

 

$

25,633

 

Platform distribution fees

 

 

34,552

 

 

 

31,444

 

 

 

69,094

 

 

 

53,055

 

Sub-administration

 

 

5,855

 

 

 

5,274

 

 

 

11,527

 

 

 

9,664

 

Sub-advisory

 

 

2,187

 

 

 

1,678

 

 

 

4,196

 

 

 

3,550

 

Middle-office

 

 

3,134

 

 

 

2,810

 

 

 

6,063

 

 

 

5,614

 

  Total distribution and other asset-based expenses

 

$

68,590

 

 

$

62,039

 

 

$

136,000

 

 

$

97,516

 

 

(1)
Represents sales-based commissions paid to our distribution teams. Sales-based compensation varies based on gross and net client cash flows and revenue earned on sales.
(2)
Equity awards typically vest over several years based on service and the achievement of specific business and financial targets. The value of the equity awards is recognized as compensation expense over the vesting period.