| 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 June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Money market funds |
$ |
3,314 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,314 |
|
Securities available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
Corporate debt |
|
— |
|
|
|
59,472 |
|
|
|
— |
|
|
|
59,472 |
|
Trading securities |
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasuries |
|
— |
|
|
|
99,551 |
|
|
|
— |
|
|
|
99,551 |
|
Mutual funds held in rabbi trust |
|
— |
|
|
|
12,044 |
|
|
|
— |
|
|
|
12,044 |
|
Interest rate swaps |
|
— |
|
|
|
967 |
|
|
|
— |
|
|
|
967 |
|
Total assets |
$ |
3,314 |
|
|
$ |
172,034 |
|
|
$ |
— |
|
|
$ |
175,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency forward position |
|
— |
|
|
|
1,613 |
|
|
|
— |
|
|
|
1,613 |
|
Total liabilities |
$ |
— |
|
|
$ |
1,613 |
|
|
$ |
— |
|
|
$ |
1,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 prepaid expenses and 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 and six months ended June 30, 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 June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets not measured at fair value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
$ |
242,480 |
|
|
$ |
242,480 |
|
|
$ |
242,480 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
242,480 |
|
Cash segregated under federal regulations |
|
49,390 |
|
|
|
49,390 |
|
|
|
49,390 |
|
|
|
— |
|
|
|
— |
|
|
|
49,390 |
|
Accounts receivable, net of allowance |
|
133,786 |
|
|
|
133,786 |
|
|
|
— |
|
|
|
133,786 |
|
|
|
— |
|
|
|
133,786 |
|
Receivables from broker-dealers, clearing
organizations and customers |
|
1,228,453 |
|
|
|
1,228,453 |
|
|
|
122,677 |
|
|
|
1,105,776 |
|
|
|
— |
|
|
|
1,228,453 |
|
Total assets |
$ |
1,654,109 |
|
|
$ |
1,654,109 |
|
|
$ |
414,547 |
|
|
$ |
1,239,562 |
|
|
$ |
— |
|
|
$ |
1,654,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payables to broker-dealers, clearing
organizations and customers |
$ |
863,546 |
|
|
$ |
863,546 |
|
|
$ |
— |
|
|
$ |
863,546 |
|
|
$ |
— |
|
|
$ |
863,546 |
|
Borrowings |
|
115,914 |
|
|
|
115,914 |
|
|
|
— |
|
|
|
115,914 |
|
|
|
— |
|
|
|
115,914 |
|
Total liabilities |
$ |
979,460 |
|
|
$ |
979,460 |
|
|
$ |
— |
|
|
$ |
979,460 |
|
|
$ |
— |
|
|
$ |
979,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
(In thousands) |
|
Foreign currency forwards |
|
|
|
|
|
Notional value |
$ |
145,454 |
|
|
$ |
94,197 |
|
Fair value of notional |
|
143,841 |
|
|
|
96,044 |
|
Fair value of the (liability)/asset |
$ |
(1,613 |
) |
|
$ |
1,847 |
|
|
|
|
|
|
|
Interest rate swaps |
|
|
|
|
|
Notional value |
$ |
100,000 |
|
|
$ |
— |
|
Fair value of notional |
|
100,967 |
|
|
|
— |
|
Fair value of the asset/(liability) |
$ |
967 |
|
|
$ |
— |
|
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 June 30, |
|
|
Six Months Ended June 30, |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
|
|
|
|
|
|
(In thousands) |
|
Foreign currency forwards |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
Unrealized gain/(loss) |
$ |
(33 |
) |
|
$ |
(916 |
) |
|
$ |
(3,459 |
) |
|
$ |
2,640 |
|
Realized gain/(loss) |
|
(325 |
) |
|
|
4,783 |
|
|
|
1,726 |
|
|
|
3,090 |
|
Total gain/(loss) |
$ |
(358 |
) |
|
$ |
3,867 |
|
|
$ |
(1,733 |
) |
|
$ |
5,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain/(loss) |
$ |
648 |
|
|
$ |
— |
|
|
$ |
967 |
|
|
$ |
— |
|
Realized gain/(loss) |
|
26 |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
Total gain/(loss) |
$ |
674 |
|
|
$ |
— |
|
|
$ |
996 |
|
|
$ |
— |
|
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 June 30, 2026, the Company maintained a cash collateral deposit of $1.7 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 June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt |
$ |
|
59,593 |
|
|
$ |
|
60 |
|
|
$ |
|
(181 |
) |
|
$ |
|
59,472 |
|
Trading securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasuries |
|
|
100,408 |
|
|
|
|
— |
|
|
|
|
(857 |
) |
|
|
|
99,551 |
|
Mutual funds held in rabbi trust |
|
|
10,103 |
|
|
|
|
1,941 |
|
|
|
|
— |
|
|
|
|
12,044 |
|
Total investments |
$ |
|
170,104 |
|
|
$ |
|
2,001 |
|
|
$ |
|
(1,038 |
) |
|
$ |
|
171,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 six months ended June 30, 2026 and 2025 were $8.3 million and $34.3 million, respectively. Proceeds from the sales and maturities of investments during the six months ended June 30, 2026 and 2025 were $6.9 million and $32.2 million, respectively. The following table summarizes the Company’s unrealized and realized gains and losses on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
(In thousands) |
|
Unrealized gains/(losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt |
$ |
|
(109 |
) |
|
$ |
|
195 |
|
|
$ |
|
(452 |
) |
|
$ |
|
502 |
|
Trading securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasuries |
|
|
(405 |
) |
|
|
|
213 |
|
|
|
|
(1,166 |
) |
|
|
|
1,279 |
|
Mutual funds held in rabbi trust |
|
|
1,284 |
|
|
|
|
1,070 |
|
|
|
|
1,039 |
|
|
|
|
577 |
|
Total investments |
$ |
|
770 |
|
|
$ |
|
1,478 |
|
|
$ |
|
(579 |
) |
|
$ |
|
2,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold, not yet purchased |
$ |
|
(1 |
) |
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains/(losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt |
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
4 |
|
|
$ |
|
— |
|
Trading securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual funds held in rabbi trust |
|
|
16 |
|
|
|
|
47 |
|
|
|
|
77 |
|
|
|
|
94 |
|
Total investments |
$ |
|
16 |
|
|
$ |
|
47 |
|
|
$ |
|
81 |
|
|
$ |
|
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2026 |
|
|
|
|
|
|
|
|
Securities available-for-sale |
|
|
|
|
|
|
|
|
Corporate debt |
$ |
24,951 |
|
|
$ |
34,521 |
|
|
$ |
59,472 |
|
Trading securities |
|
|
|
|
|
|
|
|
U.S. Treasuries |
|
— |
|
|
|
99,551 |
|
|
|
99,551 |
|
Total |
$ |
24,951 |
|
|
$ |
134,072 |
|
|
$ |
159,023 |
|
|
|
|
|
|
|
|
|
|
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 June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt |
$ |
39,468 |
|
|
$ |
(181 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
39,468 |
|
|
$ |
(181 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt |
$ |
3,506 |
|
|
$ |
(3 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,506 |
|
|
$ |
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During each of the three and six months ended June 30, 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.
|