Revenue from contracts with customers

9 Months Ended

Sep. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue from contracts with customers

Revenue from contracts with customers

Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised goods or services to customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised good or service.

The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, the Company considers the range of possible outcomes, the predictive value of its past experiences, the time period during which uncertainties are expected to be resolved and the amount of consideration that is susceptible to factors outside of the Company's influence, such as market volatility or the judgment and actions of third parties.

The Company earns revenue from contracts with customers and other sources (principal transactions, interest and other). The following provides detailed information on the recognition of the Company's revenue from contracts with customers:

Commissions

Commissions from Sales and Trading — The Company earns commission revenue by executing, settling and clearing transactions with clients primarily in exchange-traded and over-the-counter corporate equity and debt securities, money market instruments and exchange-traded options and futures contracts. A substantial portion of the Company's revenue is derived from commissions from private clients through accounts with transaction-based pricing. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenue associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, is recognized at a point in time on trade date when the performance obligation is satisfied.

Commission revenue is generally paid on settlement date, which is generally one business day after trade date. The Company records a receivable on the trade date and receives a payment on the settlement date.

Mutual Fund Income — The Company earns mutual fund income for sales and distribution of mutual fund shares, which consists of a fixed fee amount and a variable amount. The Company recognizes mutual fund income at a point in time on the trade date when the performance obligation is satisfied which is when the mutual fund interest is sold to the investor. The ongoing distribution fees for distributing investment products from mutual fund companies are generally considered variable consideration because they are based on the value of AUM and are uncertain on trade date. The Company recognizes distribution fees over the investment period as the amounts become known and the portion recognized in the current period may relate to distribution services performed in prior periods. Mutual fund income is generally received within 90 days.

Advisory Fees

The Company earns management and performance (or incentive) fees in connection with the advisory and asset management services it provides to various types of funds, asset-based programs and investment vehicles through its subsidiaries. Management fees are generally based on the account value at the valuation date per the respective asset management agreements and are recognized over time as the customer receives the benefits of the services evenly throughout the term of the contract. Performance fees are recognized when the return on client AUM exceeds a specified benchmark return or other performance targets over a 12-month measurement period are met. Performance fees are considered variable as they are subject to fluctuation and/or are contingent on a future event over the measurement period and are not subject to adjustment once the measurement period ends. Such fees are computed as of the fund's year-end when the measurement period ends and generally are recorded as earned in the fourth quarter of the Company's fiscal year. Both management and performance fees are generally received within 90 days.

Investment Banking

The Company earns underwriting revenue by providing capital raising solutions for corporate clients through initial public offerings, follow-on offerings, equity-linked offerings, private investments in public entities, and private placements. Underwriting revenue is recognized at a point in time on trade date, as the client obtains the control and benefit of the capital markets offering at that time. These fees are generally received within 90 days after the transactions are completed. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenue. Underwriting revenue and related expenses are presented gross on the condensed consolidated income statements.

Revenue from financial advisory services includes fees generated in connection with mergers, acquisitions and restructuring transactions. Such revenue and fees are primarily recorded at a point in time when services for the performance obligations have been completed and income is reasonably determinable, generally as set forth under the terms of the engagement. Payment for advisory services is generally due upon a completion of the transaction or milestone. Retainer fees and fees earned from certain advisory services are recognized ratably over the service period as the customer receives the benefit of the services throughout the term of the contracts, and such fees are collected based on the terms of the contracts.

Bank Deposit Sweep Income

Bank deposit sweep income consists of revenue earned from the FDIC-insured bank deposit program. Under this program, client funds are swept into deposit accounts at participating banks and are eligible for FDIC deposit insurance up to FDIC standard maximum deposit insurance amounts. Fees are earned over time and are generally received within 30 days.

Disaggregation of Revenue

The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the three and nine months ended September 30, 2025 and 2024:

(Expressed in thousands)	For the Three Months Ended September 30, 2025
	Reportable Segments
	Wealth Management		Capital Markets		Corporate/Other		Total
Revenue from contracts with customers:
Commissions from sales and trading	$	53,511	$	58,807	$	8	$	112,326
Mutual fund and insurance income	8,350		1		7		8,358
Advisory fees	134,397		—		7		134,404
Investment banking - capital markets	3,042		52,143		—		55,185
Investment banking - advisory	438		21,865		—		22,303
Bank deposit sweep income	28,349		—		—		28,349
Other	7,809		84		1,397		9,290
Total revenue from contracts with customers	235,896		132,900		1,419		370,215
Other sources of revenue:
Interest	22,381		14,785		1,693		38,859
Principal transactions, net	1,254		14,194		(546)		14,902
Other	195		266		1		462
Total other sources of revenue	23,830		29,245		1,148		54,223
Total revenue	$	259,726	$	162,145	$	2,567	$	424,438

(Expressed in thousands)	For the Three Months Ended September 30, 2024
	Reportable Segments
	Wealth Management		Capital Markets		Corporate/Other		Total
Revenue from contracts with customers:
Commissions from sales and trading	$	46,641	$	48,195	$	6	$	94,842
Mutual fund and insurance income	8,231		1		5		8,237
Advisory fees	121,620		—		11		121,631
Investment banking - capital markets	2,410		16,977		—		19,387
Investment banking - advisory	—		32,798		—		32,798
Bank deposit sweep income	34,875		—		—		34,875
Other	2,993		896		981		4,870
Total revenue from contracts with customers	216,770		98,867		1,003		316,640
Other sources of revenue:
Interest	24,331		11,847		1,856		38,034
Principal transactions, net	977		13,034		353		14,364
Other	3,971		282		61		4,314
Total other sources of revenue	29,279		25,163		2,270		56,712
Total revenue	$	246,049	$	124,030	$	3,273	$	373,352

(Expressed in thousands)	For the Nine Months Ended September 30, 2025
	Reportable Segments
	Wealth Management		Capital Markets		Corporate/Other		Total
Revenue from contracts with customers:
Commissions from sales and trading	$	149,481	$	167,973	$	32	$	317,486
Mutual fund and insurance income	24,079		3		19		24,101
Advisory fees	388,799		—		36		388,835
Investment banking - capital markets	8,762		89,129		—		97,891
Investment banking - advisory	438		70,315		—		70,753
Bank deposit sweep income	87,078		—		—		87,078
Other	15,779		1,737		4,109		21,625
Total revenue from contracts with customers	674,416		329,157		4,196		1,007,769
Other sources of revenue:
Interest	65,808		42,492		4,945		113,245
Principal transactions, net	2,640		36,040		(271)		38,409
Other	5,269		698		51		6,018
Total other sources of revenue	73,717		79,230		4,725		157,672
Total revenue	$	748,133	$	408,387	$	8,921	$	1,165,441

(Expressed in thousands)	For the Nine Months Ended September 30, 2024
	Reportable Segments
	Wealth Management		Capital Markets		Corporate/Other		Total
Revenue from contracts with customers:
Commissions from sales and trading	$	136,337	$	135,414	$	14	$	271,765
Mutual fund and insurance income	24,201		3		15		24,219
Advisory fees	353,644		—		31		353,675
Investment banking - capital markets	8,238		46,626		(1)		54,863
Investment banking - advisory	21		76,957		—		76,978
Bank deposit sweep income	106,407		—		(1)		106,406
Other	9,576		1,796		3,903		15,275
Total revenue from contracts with customers	638,424		260,796		3,961		903,181
Other sources of revenue:
Interest	66,153		27,560		5,892		99,605
Principal transactions, net	3,089		39,333		250		42,672
Other	10,870		565		186		11,621
Total other sources of revenue	80,112		67,458		6,328		153,898
Total revenue	$	718,536	$	328,254	$	10,289	$	1,057,079

Contract Assets and Liabilities

The timing of the Company's revenue recognition may differ from the timing of payment by its customers. The Company records contract assets when payment is due from a client conditioned on future performance or the occurrence of other events. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied.

The Company had receivables related to revenue from contracts with customers of $47.5 million and $46.2 million at September 30, 2025 and December 31, 2024, respectively. The Company had no significant impairments related to these receivables during the three and nine months ended September 30, 2025.

Deferred revenue relates to IRA fees received annually in advance on customers' IRA accounts managed by the Company, software license fees received upfront from customers and retainer fees and other fees earned from certain advisory transactions where the performance obligations have not yet been satisfied. Total deferred revenue was $2.9 million and $0.9 million at September 30, 2025 and December 31, 2024, respectively.

The following presents the Company's receivables and deferred revenue balances from contracts with customers, which are included in other assets and other liabilities, respectively, on the condensed consolidated balance sheet:

(Expressed in thousands)	As of
	September 30, 2025		December 31, 2024
Receivables
Commission (1)	$	6,736	$	4,408
Mutual fund and insurance income (2)	5,757		5,838
Advisory fees (3)	7,005		11,271
Bank deposit sweep income (4)	4,123		4,748
Investment banking fees (5)	15,868		14,798
Other	8,019		5,124
Total receivables	$	47,508	$	46,187
Deferred revenue (payables):
Investment Banking fees (6)	$	257	$	28
Software license fees (7)	2,073		902
IRA fees (8)	600		—
	$	2,930	$	930

(1)Commissions earned but not yet received.

(2)Mutual fund and insurance income earned but not yet received.

(3)Management and performance fees earned but not yet received.

(4)Fees earned from FDIC-insured bank deposit program but not yet received.

(5)Underwriting revenue and advisory fees earned but not yet received.

(6)Retainer fees and fees received from certain advisory transactions where the performance obligations have not yet been satisfied.

(7)Software license fees received upfront from customers and recognized ratably over the contract period.

(8)Fees received in advance on an annual basis.