Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

13.INCOME TAXES

The Company’s operations are generally comprised of entities that are organized as limited liability companies and limited partnerships. For U.S. federal income tax purposes, taxes related to income earned by these entities generally represent obligations of their interest holders. The Company is subject to certain foreign, state, and local entity-level taxes (for example, the New York City Unincorporated Business Tax (“UBT”)). In addition, the Company is subject to U.S. corporate federal, state, and local income tax on its allocable share of results of operations from Group LP.

The Company’s provisions for income taxes were an expense of $17,384 and an expense of $6,855 for the three months ended June 30, 2025 and 2024, respectively. The Company's provisions for income taxes were an expense of $6,662 and a benefit of $599 for the six months ended June 30, 2025 and 2024, respectively. The income taxes for the aforementioned periods primarily reflects the Company’s allocable share of operating results from Group LP at the prevailing U.S. federal, state, and local corporate income tax rates and the effect of certain non-tax-deductible items, offset by the effect of the excess tax benefit recognized in connection with the delivery of equity-based compensation at an appreciated price above the grant date price for such equity. The excess tax benefits for the three months ended June 30, 2025 and 2024 were $37 and $38, respectively, and $22,452 and $10,674 for the six months ended June 30, 2025 and 2024, respectively.

Group LP is currently under examination by the Internal Revenue Service for the tax year ended December 31, 2020. The Company’s tax years for 2023, 2022, 2021 and 2020 are generally subject to examination by the tax authorities. Tax examinations are monitored on an ongoing basis and adjustments to tax liabilities are made as appropriate.

On July 4, 2025, the U.S. enacted “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14”, commonly referred to as One Big Beautiful Bill Act (“OBBBA”). The OBBBA contains a number of tax legislative changes, some of which take effect in 2025. Upon initial evaluation, the Company does not expect the OBBBA to have significant impact to the Company’s tax provisions on its condensed consolidated financial statements.