Leases

6 Months Ended

Jun. 30, 2025

Leases [Abstract]

Leases

Leases

We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have initial 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 June 30, 2025 and December 31, 2024 were as follows:

	Classification	June 30, 2025		December 31, 2024
		(in thousands)
Operating Leases
Operating lease right-of-use assets	Right-of-use assets	$	431,300	$	441,662
Operating lease liabilities	Lease liabilities	492,604		504,171
Finance Leases
Property and equipment, gross	Right-of-use assets	18,023		19,548
Amortization of right-of-use assets	Right-of-use assets	(12,370)		(11,333)
Property and equipment, net		5,653		8,215
Finance lease liabilities	Lease liabilities	7,442		8,444

The components of lease expense included in the condensed consolidated statement of income as of June 30, 2025 and June 30, 2024 were as follows:

		Three Months Ended June 30,				Six Months Ended June 30,
	Classification	2025		2024		2025		2024
		(in thousands)
Operating lease cost	General and administrative	$	16,226	$	27,584	$	32,238	$	55,520
Financing lease cost:
Amortization of right-of-use assets	General and administrative	1,502		1,047		2,641		2,099
Interest on lease liabilities	Interest expense	139		76		208		160
Total finance lease cost		1,641		1,123		2,849		2,259
Variable lease cost (1)	General and administrative	2,491		10,280		5,777		19,890
Sublease income	General and administrative	(738)		(8,746)		(1,265)		(16,469)
Net lease cost		$	19,620	$	30,241	$	39,599	$	61,200

(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)
2025 (excluding the six months ended June 30, 2025)	$	29,130	$	2,191	$	31,321
2026	64,580		3,666		68,246
2027	60,999		1,620		62,619
2028	53,706		297		54,003
2029	49,944		—		49,944
Thereafter	416,413		—		416,413
Total lease payments	674,772		7,774		682,546
Less interest	(182,168)		(332)
Present value of lease liabilities	$	492,604	$	7,442

Lease term and discount rate:
Weighted average remaining lease term (years):
Operating leases	13.24
Finance leases	1.98
Weighted average discount rate:
Operating leases	4.43	%
Finance leases	4.20	%

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

	Six Months Ended June 30,
	2025	2024
	(in thousands)
Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases	78	213,235
Finance leases	1,552	—

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

Leases

Leases

We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have initial 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 June 30, 2025 and December 31, 2024 were as follows:

	Classification	June 30, 2025		December 31, 2024
		(in thousands)
Operating Leases
Operating lease right-of-use assets	Right-of-use assets	$	431,300	$	441,662
Operating lease liabilities	Lease liabilities	492,604		504,171
Finance Leases
Property and equipment, gross	Right-of-use assets	18,023		19,548
Amortization of right-of-use assets	Right-of-use assets	(12,370)		(11,333)
Property and equipment, net		5,653		8,215
Finance lease liabilities	Lease liabilities	7,442		8,444

The components of lease expense included in the condensed consolidated statement of income as of June 30, 2025 and June 30, 2024 were as follows:

		Three Months Ended June 30,				Six Months Ended June 30,
	Classification	2025		2024		2025		2024
		(in thousands)
Operating lease cost	General and administrative	$	16,226	$	27,584	$	32,238	$	55,520
Financing lease cost:
Amortization of right-of-use assets	General and administrative	1,502		1,047		2,641		2,099
Interest on lease liabilities	Interest expense	139		76		208		160
Total finance lease cost		1,641		1,123		2,849		2,259
Variable lease cost (1)	General and administrative	2,491		10,280		5,777		19,890
Sublease income	General and administrative	(738)		(8,746)		(1,265)		(16,469)
Net lease cost		$	19,620	$	30,241	$	39,599	$	61,200

(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)
2025 (excluding the six months ended June 30, 2025)	$	29,130	$	2,191	$	31,321
2026	64,580		3,666		68,246
2027	60,999		1,620		62,619
2028	53,706		297		54,003
2029	49,944		—		49,944
Thereafter	416,413		—		416,413
Total lease payments	674,772		7,774		682,546
Less interest	(182,168)		(332)
Present value of lease liabilities	$	492,604	$	7,442

Lease term and discount rate:
Weighted average remaining lease term (years):
Operating leases	13.24
Finance leases	1.98
Weighted average discount rate:
Operating leases	4.43	%
Finance leases	4.20	%

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

	Six Months Ended June 30,
	2025	2024
	(in thousands)
Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases	78	213,235
Finance leases	1,552	—

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