Employee Compensation and Benefit Plan

6 Months Ended

Jun. 30, 2026

Compensation payable includes accrued performance bonuses payable. Performance bonus payable to employees may be subject to forfeiture if, among other things, the employee’s employment terminates prior to the payment date. This compensation is expensed over the period that future service is provided. The annual performance bonus, subject to certain conditions, is fully paid within two years after the grant date of the award. The Company may also award cash bonuses to new employees as an incentive to join the Company. These bonuses may be paid over time, up to a maximum of two years following the end of the applicable performance year. Future payments related to these awards are generally subject to the same forfeiture provisions as the annual performance bonuses. Amounts related to estimated annual performance bonuses are allocated to interim periods in proportion to the revenue earned in such periods. Compensation payable, excluding accrued profit sharing payable, at June 30, 2026 and December 31, 2025 was $121.9 million and $134.6 million, respectively.

The Company maintains a qualified profit sharing and 401(k) plan for the benefit of U.S. employees (excluding interns) who have enrolled in the Company's 401(k) plan. Effective January 1, 2017, the Company makes a 3% safe harbor non-elective contribution with immediate vesting for Non-Highly Compensated Employees (as defined by the IRS). The Company also makes a discretionary profit-sharing contribution to Highly Compensated Employees, subject to vesting over a six-year period. The Company accrued expenses relating to employer contributions of $1.2 million and $2.1 million for the three and six months ended June 30, 2026. The Company accrued expenses relating to employer contributions of $1.0 million and $1.9 million for the three and six months ended June 30, 2025. No employer contributions were paid during the six months ended June 30, 2026 and 2025.

The following table reconciles compensation payable and accrued profit sharing to compensation payable on the condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively.


($ in thousands)	June 30, 2026		December 31, 2025
Compensation payable	$	121,874	$	134,648
Accrued profit sharing payable	5,893		3,756
Total compensation payable	$	127,767	$	138,404