Revenues from Contracts with Customers

9 Months Ended

Aug. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

Revenues from Contracts with Customers

	Three Months Ended  August 31,				Nine Months Ended  August 31,
$ in thousands	2024		2023		2024		2023
Investment banking	$	925,635	$	600,190	$	2,343,284	$	1,595,463
Commissions and other fees	270,643		223,712		787,968		672,294
Asset management fees	7,189		5,344		43,539		27,965
Oil and gas revenues	358		228		799		25,997
Real estate revenues	4,038		1,902		10,727		12,105
Other contracts with customers	14,782		13,583		43,091		39,544
Total revenue from contracts with customers	1,222,645		844,959		3,229,408		2,373,368
Other sources of revenue:
Principal transactions	324,501		353,373		1,381,432		1,171,578
Revenues from affiliates	6,256		9,468		32,046		39,766
Interest	936,786		898,040		2,636,002		2,062,104
Other	105,401		(64,925)		384,939		(174,155)
Total revenues	$	2,595,589	$	2,040,915	$	7,663,827	$	5,472,661

Disaggregation of Revenue

	Three Months Ended August 31, 2024
$ in thousands	Investment Banking and Capital Markets		Asset Management		Total
Major business activity:
Investment banking - Advisory	$	592,462	$	—	$	592,462
Investment banking - Underwriting	333,173		—		333,173
Equities (1)	267,697		—		267,697
Fixed income (1)	2,486		—		2,486
Asset management	—		7,189		7,189
Other investments	—		19,638		19,638
Total	$	1,195,818	$	26,827	$	1,222,645
Primary geographic region:
Americas	$	885,377	$	24,858	$	910,235
Europe and the Middle East	223,570		1,040		224,610
Asia-Pacific	86,871		929		87,800
Total	$	1,195,818	$	26,827	$	1,222,645

	Three Months Ended August 31, 2023
$ in thousands	Investment Banking and Capital Markets		Asset Management		Total
Major business activity:
Investment banking - Advisory	$	335,271	$	—	$	335,271
Investment banking - Underwriting	264,919		—		264,919
Equities (1)	221,191		—		221,191
Fixed income (1)	2,521		—		2,521
Asset management	—		5,344		5,344
Other investments	—		15,713		15,713
Total	$	823,902	$	21,057	$	844,959
Primary geographic region:
Americas	$	648,511	$	19,769	$	668,280
Europe and the Middle East	100,419		631		101,050
Asia-Pacific	74,972		657		75,629
Total	$	823,902	$	21,057	$	844,959

	Nine Months Ended August 31, 2024
$ in thousands	Investment Banking and Capital Markets		Asset Management		Total
Major business activity:
Investment banking - Advisory	$	1,214,927	$	—	$	1,214,927
Investment banking - Underwriting	1,128,356		—		1,128,356
Equities (1)	779,462		—		779,462
Fixed income (1)	7,036		—		7,036
Asset management	—		43,539		43,539
Other investments	—		56,088		56,088
Total	$	3,129,781	$	99,627	$	3,229,408
Primary geographic region:
Americas	$	2,351,130	$	93,626	$	2,444,756
Europe and the Middle East	518,916		3,192		522,108
Asia-Pacific	259,735		2,809		262,544
Total	$	3,129,781	$	99,627	$	3,229,408

	Nine Months Ended August 31, 2023
$ in thousands	Investment Banking and Capital Markets		Asset Management		Total
Major business activity:
Investment banking - Advisory	$	886,606	$	—	$	886,606
Investment banking - Underwriting	708,857		—		708,857
Equities (1)	663,957		—		663,957
Fixed income (1)	8,337		—		8,337
Asset management	—		27,965		27,965
Other investments	—		77,646		77,646
Total	$	2,267,757	$	105,611	$	2,373,368
Primary geographic region:
Americas	$	1,744,439	$	101,996	$	1,846,435
Europe and the Middle East	338,551		1,804		340,355
Asia-Pacific	184,767		1,811		186,578
Total	$	2,267,757	$	105,611	$	2,373,368

(1)Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue.

Information on Remaining Performance Obligations and Revenue Recognized from Past Performance

We do not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at August 31, 2024. Investment banking advisory fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price.

During the three and nine months ended August 31, 2024, we recognized $39.2 million and $39.7 million, respectively, compared with $13.2 million and $32.7 million, during the three and nine months ended August 31, 2023, respectively, of revenue related to performance obligations satisfied (or partially satisfied) in previous periods, mainly due to resolving uncertainties in variable consideration that was constrained in prior periods. In addition, during the three and nine months ended August 31, 2024, we recognized $8.6 million and $23.8 million, respectively, compared with $8.1 million and $23.6 million, during the three and nine months ended August 31, 2023, respectively, of revenues primarily associated with distribution services, a portion of which relates to prior periods.

Contract Balances

The timing of our revenue recognition may differ from the timing of payment by our customers. We record a receivable when revenue is recognized prior to payment and we have an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, we record deferred revenue until the performance obligations are satisfied.

Our deferred revenue primarily relates to retainer and milestone fees received in investment banking advisory engagements where the performance obligation has not yet been satisfied. Deferred revenue at August 31, 2024 and November 30, 2023 were $55.6 million and $48.3 million, respectively, which are recorded in Accrued expenses and other liabilities. During the three and nine months ended August 31, 2024, we recognized revenues of $35.0 million and $33.2 million, respectively, compared with $12.5 million and $19.2 million during the three and nine months ended August 31, 2023, respectively, that were recorded as deferred revenue at the beginning of the periods.

We had receivables related to revenues from contracts with customers of $256.8 million and $248.2 million at August 31, 2024 and November 30, 2023, respectively.

Contract Costs

We capitalize costs to fulfill contracts associated with investment banking advisory engagements where the revenue is recognized at a point in time and the costs are determined to be recoverable. Capitalized costs to fulfill a contract are recognized at the point in time that the related revenue is recognized.

At August 31, 2024 and November 30, 2023, capitalized costs to fulfill a contract were $6.1 million and $5.3 million, respectively, which are recorded in Receivables—Fees, interest and other. For the three and nine months ended August 31, 2024, we recognized expenses of $2.4 million and $2.7 million, respectively, compared with $1.2 million and $1.9 million, during the three and nine months ended August 31, 2023, respectively, related to costs to fulfill a contract that were capitalized as of the beginning of the period. There were no significant impairment charges recognized in relation to these capitalized costs during the three and nine months ended August 31, 2024 and August 31, 2023.