Fair Value Measurements

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

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 September 30, 2025
Assets
Money market funds	$	27,464	$	—	$	—	$	27,464
Securities available-for-sale
Corporate debt		—		56,748		—		56,748
Trading securities
U.S. Treasuries		—		100,503		—		100,503
Mutual funds held in rabbi trust		—		11,221		—		11,221
Total assets	$	27,464	$	168,472	$	—	$	195,936
Liabilities
Foreign currency forward position		—		499		—		499
Total liabilities	$	—	$	499	$	—	$	499
As of December 31, 2024
Assets
Money market funds	$	55,473	$	—	$	—	$	55,473
Securities available-for-sale
Corporate debt		—		55,108		—		55,108
Trading securities
U.S. Treasuries		—		99,045		—		99,045
Mutual funds held in rabbi trust		—		11,107		—		11,107
Total assets	$	55,473	$	165,260	$	—	$	220,733
Liabilities
Foreign currency forward position		—		936		—		936
Total liabilities	$	—	$	936	$	—	$	936

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 contracts are included in either 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 nine months ended September 30, 2025 and 2024, there were no transfers of securities 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 September 30, 2025
Financial assets not measured at fair value:
Cash	$	445,835	$	445,835	$	445,835	$	—	$	—	$	445,835
Cash segregated under federal regulations		48,351		48,351		48,351		—		—		48,351
Accounts receivable, net of allowance		110,519		110,519		—		110,519		—		110,519
Receivables from broker-dealers, clearing    organizations and customers		606,667		606,667		119,942		486,725		—		606,667
Total	$	1,211,372	$	1,211,372	$	614,128	$	597,244	$	—	$	1,211,372
Financial liabilities not measured at fair value:
Payables to broker-dealers, clearing    organizations and customers	$	365,828	$	365,828	$	—	$	365,828	$	—	$	365,828
As of December 31, 2024
Financial assets not measured at fair value:
Cash	$	489,005	$	489,005	$	489,005	$	—	$	—	$	489,005
Cash segregated under federal regulations		47,107		47,107		47,107		—		—		47,107
Accounts receivable, net of allowance		91,845		91,845		—		91,845		—		91,845
Receivables from broker-dealers, clearing    organizations and customers		357,728		357,728		107,652		250,076		—		357,728
Total	$	985,685	$	985,685	$	643,764	$	341,921	$	—	$	985,685
Financial liabilities not measured at fair value:
Payables to broker-dealers, clearing    organizations and customers	$	218,845	$	218,845	$	—	$	218,845	$	—	$	218,845

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 records the fair value 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 position:

	As of
	September 30, 2025			December 31, 2024
	(In thousands)
Notional value	$	67,723		$	64,454
Fair value of notional		67,224			63,518
Fair value of the (liability)	$	(499	)	$	(936	)

Realized and unrealized gains and losses on foreign currency forward contracts 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:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2025			2024		2025		2024
	(In thousands)
Unrealized gain/(loss)	$	(2,202	)	$	2,270	$	438	$	868
Realized gain/(loss)		600			1,195		3,690		1,808
Total gain/(loss)	$	(1,602	)	$	3,465	$	4,128	$	2,676

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 September 30, 2025, the Company maintained a restricted cash collateral deposit of $1.0 million with its counterparty bank.

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. As of September 30, 2025, the notional value of the Company’s interest rate swap outstanding was $25.0 million and the fair value of the liability was immaterial.

The following table summarizes the Company’s investments:

	Amortized cost			Gross unrealized gains		Gross unrealized losses			Fair value
		(In thousands)
As of September 30, 2025
Securities available-for-sale
Corporate debt	$		56,460	$	300	$	(12	)	$	56,748
Trading securities
U.S. Treasuries			100,270		254		(21	)		100,503
Mutual funds held in rabbi trust			10,237		984		—			11,221
Total investments	$		166,967	$	1,538	$	(33	)	$	168,472
As of December 31, 2024
Securities available-for-sale
Corporate debt	$		55,447	$	88	$	(427	)	$	55,108
Trading securities
U.S. Treasuries			100,484		86		(1,525	)		99,045
Mutual funds held in rabbi trust			10,212		900		(5	)		11,107
Total investments	$		166,143	$	1,074	$	(1,957	)	$	165,260

Purchases of investments during the nine months ended September 30, 2025 and 2024 were $59.0 million and $89.4 million, respectively. Proceeds from the sales and maturities of investments during the nine months ended September 30, 2025 and 2024 were $58.4 million and $58.9 million, respectively.

The following table summarizes the Company’s unrealized and realized gains and losses on investments:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025		2024
	(In thousands)
Unrealized gains/(losses)
Securities available-for-sale
Corporate debt	$	124		$	324		$	626	$	233
Trading securities
U.S. Treasuries		(166	)		845			1,113		852
Mutual funds held in rabbi trust		(487	)		505			90		1,850
Total investments	$	(529	)	$	1,674		$	1,829	$	2,935
Liabilities:
Securities sold, not yet purchased	$	—		$	(44	)	$	—	$	—
Realized gains/(losses)
Securities available-for-sale
Corporate debt	$	—		$	2		$	—	$	4
Trading securities
Mutual funds held in rabbi trust		1,161			30			1,255		(347	)
Total investments	$	1,161		$	32		$	1,255	$	(343	)
Liabilities:
Securities sold, not yet purchased	$	—		$	174		$	—	$	174

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 September 30, 2025
Securities available-for-sale
Corporate debt	$	9,484	$	47,264	$	56,748
Trading securities
U.S. Treasuries		24,920		75,583		100,503
Total	$	34,404	$	122,847	$	157,251
As of December 31, 2024
Securities available-for-sale
Corporate debt	$	9,346	$	45,762	$	55,108
Trading securities
U.S. Treasuries		49,978		49,067		99,045
Total	$	59,324	$	94,829	$	154,153

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 September 30, 2025
Corporate debt	$	11,467	$	(11	)	$	753	$	(1	)	$	12,220	$	(12	)
As of December 31, 2024
Corporate debt	$	38,041	$	(426	)	$	1,226	$	(1	)	$	39,267	$	(427	)

During each of the three and nine months ended September 30, 2025 and 2024, 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.