Leases

9 Months Ended

Sep. 30, 2026

We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have remaining lease terms of one year to 20 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year.

Leases included in the condensed consolidated statement of financial condition as of September 30, 2026 and December 31, 2025 were as follows:


	Classification	September 30, 2026		December 31, 2025
		(in thousands)
Operating Leases
Operating lease right-of-use assets	Right-of-use assets	$	439,680	$	448,177
Operating lease liabilities	Lease liabilities	503,570		511,308

Finance Leases
Property and equipment, gross	Right-of-use assets	28,686		21,070
Amortization of right-of-use assets	Right-of-use assets	(11,161)		(14,259)
Property and equipment, net		17,525		6,811
Finance lease liabilities	Lease liabilities	17,983		7,270

The components of lease expense included in the condensed consolidated statement of income as of September 30, 2026 and September 30, 2025 were as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,
	Classification	2026		2025		2026		2025
		(in thousands)
Operating lease cost	General and administrative	$	17,149	$	16,673	$	51,458	$	48,911
Financing lease cost:
Amortization of right-of-use assets	General and administrative	1,613		1,230		4,212		3,871
Interest on lease liabilities	Interest expense	202		90		407		298
Total finance lease cost		1,815		1,320		4,619		4,169
Variable lease (income) cost (1)	General and administrative	(3,569)		3,738		3,991		9,515
Sublease income	General and administrative	(1,092)		(716)		(3,280)		(1,981)
Net lease cost		$	14,303	$	21,015	$	56,788	$	60,614

(1) Variable lease expense includes operating expenses, real estate taxes and employee parking.

The sub-lease income represents all revenues received from sub-tenants. It is primarily fixed base rental payments combined with variable reimbursements such as operating expenses, real estate taxes and employee parking. The vast majority of sub-tenant income is derived from our New York metro sub-tenant agreements. Sub-tenant income related to base rent is recorded on a straight-line basis.

Maturities of lease liabilities were as follows:


	Operating Leases		Financing Leases		Total
Year ending December 31,	(in thousands)
2026 (excluding the nine months ended September 30, 2026)	$	12,344	$	1,646	$	13,990
2027	66,184		5,818		72,002
2028	60,517		4,497		65,014
2029	57,052		3,627		60,679
2030	56,037		2,821		58,858
Thereafter	444,154		1,045		445,199
Total lease payments	696,288		19,454		715,742
Less interest	(192,718)		(1,471)
Present value of lease liabilities	$	503,570	$	17,983


Lease term and discount rate:
Weighted average remaining lease term (years):
Operating leases	12.99
Finance leases	3.80
Weighted average discount rate:
Operating leases	4.66	%
Finance leases	4.39	%

Supplemental non-cash activity related to leases was as follows:


	Nine Months Ended September 30,
	2026	2025
	(in thousands)




Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases	132	29,984
Finance leases	13,870	1,661

(1) Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statement of cash flows.

Leases