v3.26.3
FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The following tables present information on the financial assets and liabilities measured and recorded at fair value on a recurring basis as of September 30, 2026 and December 31, 2025.
Financial Assets and Liabilities Measured at Fair Value on a
Recurring Basis as of September 30, 2026 Using
Fair value as of September 30, 2026
Quoted prices in active markets
for identical assets
 (Level 1)		Other observable inputs
 (Level 2)		Significant unobservable inputs
 (Level 3)
Assets:
Securities and other investments owned:
Equity securities$217,393 $185,838 $1,159 $30,396 
Partnership interests and other investments71,341 — — 71,341 
Corporate bonds11,909 — 1,909 10,000 
Other fixed income securities4,845 2,717 2,128 — 
Total securities and other investments owned305,488 188,555 5,196 111,737 
Loans receivable, at fair value10,798 — — 10,798 
Total assets measured at fair value$316,286 $188,555 $5,196 $122,535 
Liabilities:
Securities sold not yet purchased:
Equity securities$6,829 $6,829 $— $— 
Corporate bonds241 — 241 — 
Other fixed income securities827 — 827 — 
Total securities sold not yet purchased7,897 6,829 1,068 — 
Embedded derivatives, included in accrued expenses and other liabilities190 — — 190 
Total liabilities measured at fair value$8,087 $6,829 $1,068 $190 
Financial Assets and Liabilities Measured at Fair Value on a
Recurring Basis at December 31, 2025 Using
Fair value at December 31, 2025
Quoted prices in active markets
for identical assets
 (Level 1)		Other observable inputs
 (Level 2)		Significant unobservable inputs
 (Level 3)
Assets:
Securities and other investments owned:
Equity securities$304,422 $233,199 $— $71,223 
Partnership interests and other investments40,082 — — 40,082 
Corporate bonds31,751 — 31,751 — 
Other fixed income securities4,373 2,957 1,416 — 
Total securities and other investments owned380,628 236,156 33,167 111,305 
Loans receivable, at fair value26,303 — — 26,303 
Total assets measured at fair value$406,931 $236,156 $33,167 $137,608 
Liabilities:
Securities sold not yet purchased:
Equity securities$9,342 $9,342 $— $— 
Corporate bonds467 — 467 — 
Total securities sold not yet purchased9,809 9,342 467 — 
Liability-classified warrants6,400 — — 6,400 
Total liabilities measured at fair value$16,209 $9,342 $467 $6,400 
As of September 30, 2026 and December 31, 2025, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $122,535 and $137,608, respectively, or 7.8% and 8.1%, respectively, of the Company’s total assets. In determining the fair value for these Level 3 financial assets, the Company analyzes various financial, performance and market factors to estimate the value, including where applicable, over-the-counter market trading activity. The fair values for individual Level 3 financial assets and liabilities have various financial inputs which include multiple of sales, multiple of EBITDA and indexes, the market price of related securities, discount for lack of marketability, annualized volatility, transaction price (% of par), carried interest sharing, discount rates, recovery rates, and probability of scenario inputs that may change at each reporting period and result in an increase or decrease in the valuation of Level 3 financial assets and liabilities.
The following tables summarize the significant unobservable inputs in the fair value measurement of Level 3 financial assets and liabilities by category of investment and valuation technique as of September 30, 2026 and December 31, 2025:
Fair value at September 30,
2026		Valuation
Technique		Unobservable
Input		Range
Weighted
Average(1)
Assets:
Equity securities$29,846 Market approachMultiple of EBITDA and indexes
1.9x - 7.5x
4.5x
Multiple of sales
0.7x - 8.6x
2.1x
Market price of related security
$0.10 - $12.01
$10.81
Discount for lack of marketability12.7%12.7%
550 Option pricing modelAnnualized volatility
45% - 299%
45.0%
Corporate bonds10,000 Market approachTransaction price (% of par)
70.0%
70.0%
Partnership interests and other investments71,341 Market approachCarried interest sharing
15.0% - 46.3%
33.5%
Loans receivable at fair value10,798 Discounted cash flowDiscount rate
6.8% - 93.7%
28.5%
Recovery rate
35.9%
35.9%
Total Level 3 assets measured at fair value$122,535 
Liabilities:
Embedded derivatives, included in accrued expenses and other liabilities$190 Hull-White lattice, with/without differential, probability-weightedProbability of scenario20.0%20.0%
Total Level 3 liabilities measured at fair value$190 
(1)
Unobservable inputs were weighted by the relative fair value of the financial instruments.
Fair value at December 31,
2025		Valuation TechniqueUnobservable InputRange
Weighted
Average(1)
Assets:
Equity securities$25,572 Market approachMultiple of sales
0.7x - 6.0x
2.3x
Market price of related security
$2.14 - $12.01
$10.97
43,101Monte Carlo simulationAnnualized volatility
120.0% - 148.0%
121.0%
2,550 Option pricing modelAnnualized volatility
46.0% - 115.0%
57.0%
Partnership interests and other investments40,082Market approachDiscount rate
—% - 3.5%
0.5%
Market price of related security
$421.00
$421.00
Loans receivable at fair value24,468 Discounted cash flowDiscount rate
6.8% - 56.5%
21.0%
1,835 Market approachMarket price of related security
$8.56
$8.56
Total Level 3 assets measured at fair value$137,608 
Liabilities:
Liability-classified warrants$6,400 Monte Carlo simulation and Black-Scholes option pricing modelAnnualized volatility
85.0%
85.0%
Discount for lack of marketability
14.7%
14.7%
Total Level 3 liabilities measured at fair value$6,400 
(1)
Unobservable inputs were weighted by the relative fair value of the financial instruments.
The changes in Level 3 fair value hierarchy during the three months ended September 30, 2026 and 2025 were as follows:
Equity SecuritiesPartnership Interests And Other InvestmentsLoans Receivable at Fair ValueCorporate BondsContingent ConsiderationLiability-Classified WarrantsEmbedded Derivatives
Three Months Ended September 30, 2026
Level 3 balance at beginning of period$109,048 $83,026 $38,802 $— $— $— $797 
Fair value adjustments(1)
(11,791)— 1,215 (7,582)— — 47 
Relating to undistributed earnings— (11,685)367 — — — — 
Purchases/originations129,162 — 6,689 — — — 190 
Sales— — — (13,076)— — — 
Settlements/repayments(196,023)— (36,275)— — — (844)
Transfers in and/or out of Level 3(4)
— — — 30,658 — — — 
Level 3 balance at end of period$30,396 $71,341 $10,798 $10,000 $— $— $190 
Change in unrealized gains (losses)(2)
$(2,746)$— $(156)$(5,444)$— $— $(47)
Three Months Ended September 30, 2025
Level 3 balance at beginning of period$27,726 $1,029 $48,980 $— $4,608 $4,160 $— 
Fair value adjustments(3)
645 (1,029)1,299 — (4,560)4,340 — 
Purchases/originations175,599 — 47,580 — — — — 
Settlements/repayments(174,993)— (42,841)— (48)— — 
Level 3 balance at end of period$28,977 $— $55,018 $— $— $8,500 $— 
Change in unrealized gains (losses)(2)
$644 $(1,029)$1,183 — $4,560 $(4,340)$— 
(1)
Fair value adjustments during the three months ended September 30, 2026 include the following: $(11,791) of realized and unrealized losses on equity securities, comprised of $(6,363) included in “Trading (losses) gains, net” and $(5,428) included in “Realized and unrealized (losses) gains on investments”, $1,215 of fair value adjustments on loans included in “Fair value adjustments on loans”, and $(7,582) of realized and unrealized losses related to corporate bonds, comprised of $(2,138) included in “Trading (losses) gains, net”, $(5,444) included in “Realized and unrealized (losses) gains on investments”, and $47 of unrealized losses related to embedded derivatives included in “Change in fair value of financial instruments and other” line items in the accompanying unaudited condensed consolidated statements of operations.
(2)
For the three months ended September 30, 2026 and 2025, the change in unrealized gains (losses) is related to financial instruments held at the end of each respective reporting period.
(3)
Fair value adjustments during the three months ended September 30, 2025 include the following: $645 of realized and unrealized gains (losses) on equity securities, comprised of $(37) included in “Trading (losses) gains, net” and $682 included in “Realized and unrealized (losses) gains on investments”, $1,299 of fair value adjustments on loans included in “Fair value adjustments on loans”, $(1,029) of realized and unrealized losses related to other assets which is comprised of $(127) recorded to “Trading (losses) gains, net” and $(902) recorded to “Realized and unrealized (losses) gains on investments”, $4,560 of realized and unrealized gains related to contingent consideration included in “Selling, general and administrative expenses”, $(4,340) of unrealized losses related to liability-classified warrants included in “Change in fair value of financial instruments and other”.
(4)
Transfers into Level 3 during the three months ended September 30, 2026 include corporate bonds of $30,658. The transfer into Level 3 was due to an exchange of senior notes in August 2026, for which the exchanged notes received had no public market.
The changes in Level 3 fair value hierarchy during the nine months ended September 30, 2026 and 2025 were as follows:
Equity SecuritiesPartnership Interests And Other InvestmentsLoans Receivable at Fair ValueCorporate BondsContingent Consideration
Liability-Classified Warrants(5)
Embedded Derivatives
Nine Months Ended September 30, 2026
Level 3 balance at beginning of period$71,223 $40,082 $26,303 $— $— $6,400 $— 
Fair value adjustments(1)
(5,822)— 12,005 (7,582)— 9,410 844 
Relating to undistributed earnings— 31,259 1,084 — — — — 
Purchases/originations504,913 — 50,886 — — — 190 
Sales— — — (13,076)— — — 
Settlements/repayments(539,918)— (79,480)— — (15,810)(844)
Transfers in and/or out of Level 3(4)
— — — 30,658 — — — 
Level 3 balance at end of period$30,396 $71,341 $10,798 $10,000 $— $— $190 
Change in unrealized gains (losses)(2)
$(2,171)$— $301 $(5,444)$— $— $844 
Nine Months Ended September 30, 2025
Level 3 balance at beginning of period$40,516 $— $90,103 $— $4,538 $— $— 
Fair value adjustments(3)
(3,003)— (5,997)— (4,394)640 (8,119)
Purchases/originations201,466 — 106,212 — — 7,860 11,244 
Sales(10,000)— (10,415)— — — — 
Settlements/repayments(200,002)— (124,885)— (144)— (3,125)
Level 3 balance at end of period$28,977 $— $55,018 $— $— $8,500 $— 
Change in unrealized gains (losses)(2)
$(3,655)$— $(8,834)$— $4,394 $(640)$8,119 
(1)
Fair value adjustments during the nine months ended September 30, 2026 include the following: $(5,822) of realized and unrealized losses on equity securities, comprised of $(2,342) included in “Trading (losses) gains, net” and $(3,480) included in “Realized and unrealized (losses) gains on investments”, $12,005 of fair value adjustments on loans included in “Fair value adjustments on loans”, $(7,582) of realized and unrealized losses related to corporate bonds, comprised of $(2,138) included in “Trading (losses) gains, net” and $(5,444) included in “Realized and unrealized (losses) gains on investments”, $9,410 of realized losses related to liability-classified warrants included in “Change in fair value of financial instruments and other”, and $844 of unrealized losses related to embedded derivatives included in “Change in fair value of financial instruments and other” line items in the accompanying unaudited condensed consolidated statements of operations.
(2)
For the nine months ended September 30, 2026 and 2025, the change in unrealized gains (losses) is related to financial instruments held at the end of each respective reporting period.
(3)
Fair value adjustments during the nine months ended September 30, 2025 include the following: $(3,003) of realized and unrealized losses on equity securities comprised of $(1,212) included in “Trading (losses) gains, net” and $(1,791) included in “Realized and unrealized (losses) gains on investments”, $(5,997) of fair value adjustments on loans included in “Fair value adjustments on loans”, $4,394 of realized and unrealized gains related to contingent consideration included in “Selling, general and administrative expenses”, $(640) of unrealized losses related to liability-classified warrants included in “Change in fair value of financial instruments and other”, and $8,119 of unrealized gains related to embedded derivatives included in “Change in fair value of financial instruments and other” line items in the accompanying unaudited condensed consolidated statements of operations.
(4)
Transfers into Level 3 during the nine months ended September 30, 2026 include corporate bonds of $30,658. The transfer into Level 3 was due to an exchange of senior notes in August 2026, for which the exchanged notes received had no public market.
(5)
On May 28, 2026, immediately prior to exercise and settlement, the Oaktree Warrants were remeasured to fair value, resulting in a fair value of $15,810 (see Note 23 - Stockholders’ Equity).
Partnership and investment fund interests valued at NAV were $2,342 and $1,833 as of September 30, 2026 and December 31, 2025, respectively.
Beginning in April 2025, the Company entered into purchase agreements with public companies that allow the counterparties to put their convertible preferred stock to the Company from time to time at its discretion (the “Written Puts”) (see Note 27 - Commitments and Contingencies). The Written Puts are recognized at fair value on a recurring basis within the “Accrued expenses and other liabilities” line item on the accompanying unaudited condensed consolidated balance sheets, with changes in fair value recognized in earnings.
As of September 30, 2026 and December 31, 2025, the Company determined that the fair value of the Written Put liability was de minimis due to its discount to market prices being advantageous to the Company, and no liability or changes in earnings were recorded on the accompanying unaudited condensed consolidated balance sheets or the accompanying unaudited condensed consolidated statements of operations. The Company holds the Written Puts as investments to advantageously monetize the underlying stock and provide capital raising activities for customers. The Company’s exposure is driven primarily by movements in the Issuer’s common stock price, the put writer’s timing of exercise and the April 2026 agreement, which was amended to allow for the Issuer’s creditor to exercise the Written Put upon the Issuer’s Event of Default under the terms of its credit agreement. The amendment had a de minimis impact on the fair value of the Written Put.
Assets and Liabilities Not Measured at Fair Value
The carrying amounts reported in the unaudited condensed consolidated financial statements for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and other liabilities approximate fair value based on the short-term maturity of these instruments.
September 30, 2026December 31, 2025
Fair Value Hierarchy LevelCarrying AmountFair ValueCarrying AmountFair Value
Revolving credit facilitiesLevel 2$32,285 $32,082 $6,638 $6,638 
Term loans, netLevel 2$115,421 $118,961 $119,297 $120,931 
Senior notes payableLevel 2$729,398 $623,264 $1,033,782 $681,890 
New Notes payableLevel 3$258,930 $209,868 $268,016 $166,796 
The fair value of the Company’s revolving credit facilities and term loans was estimated using a discounted cash flow approach, whereby contractual cash flows were discounted using current market interest rates and applicable credit spreads. The Company used a market approach for estimating the fair value of senior notes payable as they are listed and actively traded on Nasdaq with sufficient frequency and volume to utilize quoted market prices. The fair value of the Company’s New Notes payable was estimated using a discounted cash flow approach, whereby contractual cash flows were discounted using a credit spread based on significant unobservable inputs, including the Company’s estimated cost of borrowing of approximately 15.2%.
Nonrecurring Fair Value Measurement
The following table presents the carrying amounts of equity securities valued under the measurement alternative that were still held as of the balance sheet date for which a nonrecurring fair value measurement was recorded during the period:
Fair ValueLevel 2Level 3
As of September 30, 2026
Non-marketable equity securities measured using the measurement alternative$17,193 $17,193 $— 
As of December 31, 2025
Non-marketable equity securities measured using the measurement alternative$13,867 $13,739 $128 
The Company’s equity method investment in GA Holdings was measured at fair value on a nonrecurring basis as of September 30, 2026, in connection with the impairment described in Note 11 - Equity Method Investments, reducing the carrying value from $76,802 to its estimated fair value of $62,250. The fair value was determined using a market approach based on the negotiated price in the Company’s agreement to sell the GA Holdings investment. This is a nonrecurring fair value measurement classified within Level 3 of the fair value hierarchy because the price was negotiated with a single counterparty and is not corroborated by observable market data. In accordance with ASC 820, quantitative information about significant unobservable inputs is not presented because the Company did not develop those inputs; the fair value reflects the transaction price without adjustment.