Leases

12 Months Ended

Dec. 31, 2025

Operating Leases – The Company leases office space under non-cancelable lease agreements, which expire on various dates through 2035. The Company reflects lease expense over the lease terms on a straight-line basis, which include options to extend the lease when it is reasonably certain that the Company will exercise that option. Occupancy lease agreements, in addition to base rentals, generally are subject to escalation provisions based on certain costs incurred by the landlord. The Company does not have any leases with variable lease payments. Occupancy and Equipment Rental on the Consolidated Statements of Operations includes operating lease cost for office space of $72,250, $60,159 and $56,202 for the years ended December 31, 2025, 2024 and 2023, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses of $7,322, $5,815 and $5,548 for the years ended December 31, 2025, 2024 and 2023, respectively.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $6,037 and $5,886 as of December 31, 2025 and 2024, respectively, which are secured by cash that is included in Other Assets on the Consolidated Statements of Financial Condition.

The Company has entered into various operating leases for the use of office equipment (primarily computers, printers, copiers and other information technology related equipment). Occupancy and Equipment Rental on the Consolidated Statements of Operations includes operating lease cost for office equipment of $6,537, $6,372 and $5,663 for the years ended December 31, 2025, 2024 and 2023, respectively.

The Company uses its secured incremental borrowing rate to determine the present value of its right-of-use assets and lease liabilities. The determination of an appropriate incremental borrowing rate requires significant assumptions and judgment. The Company's incremental borrowing rate was calculated based on the Company's recent debt issuances and current market conditions. The Company scales the rates appropriately depending on the life of the leases.

The Company incurred net operating cash outflows of $76,086, $45,572 and $46,030 for the years ended December 31, 2025, 2024 and 2023, respectively, related to its operating leases, which was net of cash received from lease incentives of $8,128, $2,666 and $5,599 for the years ended December 31, 2025, 2024 and 2023, respectively.

Other information as it relates to the Company's operating leases is as follows:


	For the Years Ended December 31,
		2025			2024
New Right-of-Use Assets obtained in exchange for new operating lease liabilities		$	64,644		$	104,203

		December 31,
		2025			2024
Weighted-average remaining lease term - operating leases		9.4 years			10.2 years
Weighted-average discount rate - operating leases		4.85		%	4.77		%

As of December 31, 2025, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:


2026	$	85,053
2027	82,488
2028	73,163
2029	61,499
2030	72,197
Thereafter	350,095
Total lease payments	724,495
Less: Tenant Improvement Allowances	(15,232)
Less: Imputed Interest	(142,406)
Present value of lease liabilities	566,857
Less: Current lease liabilities	(58,666)
Long-term lease liabilities	$	508,191

The Company has entered into certain lease agreements, primarily for office space, which have not yet commenced and thus are not yet included on the Company's Consolidated Statements of Financial Condition as right-of-use assets and lease liabilities. The Company anticipates that these leases will commence in 2026 and will have lease terms of 1 to 8 years once they have commenced. The additional future payments under these arrangements are $4,956 as of December 31, 2025.

In September 2024, the Company entered into a binding agreement affirming its intent to lease office space in London, United Kingdom. The Company anticipates signing the lease in 2026, following construction of the building, and anticipates that it will take possession of this space by the end of 2026. The lease term will end in 2041. The expected approximate additional annual expense under this lease agreement, net of certain lease incentives, is £12,000, and the aggregate expected additional future payments under this arrangement are £175,000.