Revenues from Contracts with Customers
The following table presents the Company’s total revenues separated between revenues from contracts with customers and other sources of revenues (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Revenues from contracts with customers: | | | | | | |
| Commissions | | $ | 2,257,553 | | | $ | 1,648,817 | | | $ | 1,464,524 | |
Data, network and post-trade | | 138,980 | | | 126,963 | | | 111,470 | |
| Fees from related parties | | 18,713 | | | 20,728 | | | 15,968 | |
| Other revenues | | 26,745 | | | 16,104 | | | 15,417 | |
| Total revenues from contracts with customers | | 2,441,991 | | | 1,812,612 | | | 1,607,379 | |
| Other sources of revenues: | | | | | | |
| Principal transactions | | 440,830 | | | 389,429 | | | 368,100 | |
| Interest and dividend income | | 53,825 | | | 56,223 | | | 45,422 | |
| Other revenues | | 4,814 | | | 4,554 | | | 4,500 | |
| Total revenues | | $ | 2,941,460 | | | $ | 2,262,818 | | | $ | 2,025,401 | |
See Note 3—“Summary of Significant Accounting Policies” for detailed information on the recognition of the Company’s revenues from contracts with customers.
Disaggregation of Revenue
See Note 22—“Segment and Geographic Information” for a further discussion on the allocation of revenues to geographic regions.
Contract Balances
The timing of the Company’s revenue recognition may differ from the timing of payment by its customers. The Company records a receivable when revenue is recognized prior to payment and the Company has an unconditional right to payment. 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 revenues from contracts with customers of $482.0 million and $324.2 million at December 31, 2025 and 2024, respectively. The Company performs quarterly reviews of its receivables from contracts with customers for credit impairment. Refer to Note 25—“Current Expected Credit Losses (CECL)” for additional information.
The Company’s deferred revenue primarily relates to customers paying in advance or billed in advance where the performance obligation has not yet been satisfied. Deferred revenue at December 31, 2025 and 2024 was $17.9 million and $20.0 million, respectively. During the years ended December 31, 2025 and 2024, the Company recognized revenue of $18.6 million and $12.9 million, respectively, that was recorded as deferred revenue at the beginning of the period.
Contract Costs
The Company capitalizes costs to fulfill contracts associated with different lines of its business 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. The Company did not have any capitalized costs to fulfill a contract as of December 31, 2025 and 2024.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.