Leases

9 Months Ended

Sep. 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 September 30, 2025 and December 31, 2024 were as follows:

	Classification	September 30, 2025		December 31, 2024
		(in thousands)
Operating Leases
Operating lease right-of-use assets	Right-of-use assets	$	447,915	$	441,662
Operating lease liabilities	Lease liabilities	510,558		504,171
Finance Leases
Property and equipment, gross	Right-of-use assets	21,222		19,548
Amortization of right-of-use assets	Right-of-use assets	(13,591)		(11,333)
Property and equipment, net		7,631		8,215
Finance lease liabilities	Lease liabilities	7,982		8,444

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

		Three Months Ended September 30,				Nine Months Ended September 30,
	Classification	2025		2024		2025		2024
		(in thousands)
Operating lease cost	General and administrative	$	16,673	$	32,154	$	48,911	$	87,674
Financing lease cost:
Amortization of right-of-use assets	General and administrative	1,230		1,141		3,871		3,240
Interest on lease liabilities	Interest expense	90		85		298		245
Total finance lease cost		1,320		1,226		4,169		3,485
Variable lease cost (1)	General and administrative	3,738		12,563		9,515		32,453
Sublease income	General and administrative	(716)		(7,938)		(1,981)		(24,407)
Net lease cost		$	21,015	$	38,005	$	60,614	$	99,205

(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. 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 nine months ended September 30, 2025)	$	12,918	$	1,212	$	14,130
2026	64,484		4,120		68,604
2027	63,240		2,075		65,315
2028	56,054		753		56,807
2029	52,309		228		52,537
Thereafter	460,129		—		460,129
Total lease payments	709,134		8,388		717,522
Less interest	(198,576)		(406)
Present value of lease liabilities	$	510,558	$	7,982

Lease term and discount rate:
Weighted average remaining lease term (years):
Operating leases	13.50
Finance leases	2.18
Weighted average discount rate:
Operating leases	4.51	%
Finance leases	4.39	%

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

	Nine Months Ended September 30,
	2025	2024
	(in thousands)
Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases	29,984	214,349
Finance leases	1,661	—

(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 September 30, 2025 and December 31, 2024 were as follows:

	Classification	September 30, 2025		December 31, 2024
		(in thousands)
Operating Leases
Operating lease right-of-use assets	Right-of-use assets	$	447,915	$	441,662
Operating lease liabilities	Lease liabilities	510,558		504,171
Finance Leases
Property and equipment, gross	Right-of-use assets	21,222		19,548
Amortization of right-of-use assets	Right-of-use assets	(13,591)		(11,333)
Property and equipment, net		7,631		8,215
Finance lease liabilities	Lease liabilities	7,982		8,444

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

		Three Months Ended September 30,				Nine Months Ended September 30,
	Classification	2025		2024		2025		2024
		(in thousands)
Operating lease cost	General and administrative	$	16,673	$	32,154	$	48,911	$	87,674
Financing lease cost:
Amortization of right-of-use assets	General and administrative	1,230		1,141		3,871		3,240
Interest on lease liabilities	Interest expense	90		85		298		245
Total finance lease cost		1,320		1,226		4,169		3,485
Variable lease cost (1)	General and administrative	3,738		12,563		9,515		32,453
Sublease income	General and administrative	(716)		(7,938)		(1,981)		(24,407)
Net lease cost		$	21,015	$	38,005	$	60,614	$	99,205

(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. 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 nine months ended September 30, 2025)	$	12,918	$	1,212	$	14,130
2026	64,484		4,120		68,604
2027	63,240		2,075		65,315
2028	56,054		753		56,807
2029	52,309		228		52,537
Thereafter	460,129		—		460,129
Total lease payments	709,134		8,388		717,522
Less interest	(198,576)		(406)
Present value of lease liabilities	$	510,558	$	7,982

Lease term and discount rate:
Weighted average remaining lease term (years):
Operating leases	13.50
Finance leases	2.18
Weighted average discount rate:
Operating leases	4.51	%
Finance leases	4.39	%

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

	Nine Months Ended September 30,
	2025	2024
	(in thousands)
Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases	29,984	214,349
Finance leases	1,661	—

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