Fair Value Measurements
The tables below show the fair value of items that are measured at fair value using the fair value hierarchy:
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| | | Fair Value as of | | Level within the Fair Value Hierarchy as of December 31, 2025 |
| (in millions) | | December 31, 2025 | | Level 1 | | Level 2 | | Level 3 |
| Cash equivalents | | $ | 40.1 | | | $ | 40.1 | | | $ | — | | | $ | — | |
| Investments: | | | | | | | | |
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| Marketable equity investments, exchange-traded funds, and mutual funds | | 50.0 | | | 50.0 | | | — | | | — | |
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| Marketable debt securities | | 1.5 | | | 1.5 | | | — | | | — | |
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| Total | | $ | 91.6 | | | $ | 91.6 | | | $ | — | | | $ | — | |
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| | | Fair Value as of | | Level within the Fair Value Hierarchy as of December 31, 2024 |
| (in millions) | | December 31, 2024 | | Level 1 | | Level 2 | | Level 3 |
| Cash equivalents | | $ | 43.5 | | | $ | 43.5 | | | $ | — | | | $ | — | |
| Investments: | | | | | | | | |
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| Marketable equity investments, exchange-traded funds, and mutual funds | | 42.3 | | | 42.3 | | | — | | | — | |
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| Marketable debt securities | | 2.4 | | | 2.4 | | | — | | | — | |
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| Investments in unconsolidated entities: | | | | | | | | |
| Investment in SmartX Advisory Solutions | | 24.7 | | | — | | | — | | | 24.7 | |
| Non-current investment in Wealth Advisors | | 24.9 | | | 24.9 | | | — | | | — | |
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| Total | | $ | 137.8 | | | $ | 113.1 | | | $ | — | | | $ | 24.7 | |
In 2024, our investment in SmartX Advisory Solutions was measured at fair value on a nonrecurring basis due to the identification of an impairment trigger, leading to $12.4 million of impairment losses. The fair value was estimated using an income approach with significant, unobservable inputs, which include the extent and timing of future cash flows, revenue growth rates, and discount rates. Refer to Note 11 for more information about our investment in SmartX Advisory Solutions.
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.