What changed in this filing

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Item 1. Financial Statements

2026-07-31 compared with 2026-04-28 · 118 added, 76 removed, 570 unchanged (25% of the section changed)

3 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

(in millions, except per share data) 2026 2025 2026 2025

21 unchanged sentences

Expenses of consolidated investment products ( 7.2 ) ( 11.0 ) ( 31.4 ) ( 29.8 )

Other income (expenses), net 122.4 ( 102.9 ) 293.2 ( 8.7 )

Other income, net 155.1 22.5 448.3 13.8

Income before taxes 370.9 176.6 1,268.4 532.5

13 unchanged sentences

(in millions) Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2026 2025 2026 2025

3 unchanged sentences

Net unrealized losses on defined benefit plans, net of tax — ( 2.7 ) — ( 5.5 )

Net unrealized gains (losses) on investments, net of tax ( 1.4 ) 0.1 ( 1.4 ) 0.1

Total other comprehensive income (loss) ( 4.7 ) 85.7 ( 46.6 ) 6.3

8 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data) March 31,

(in millions, except share and per share data) June 30,

2026 September 30,

1 unchanged sentence

Receivables 1,566.9 1,541.7

Investments (including $ 1,118.3 and $ 1,179.5 at fair value at March 31, 2026 and September 30, 2025)

Investments (including $ 1,047.7 and $ 1,179.5 at fair value at June 30, 2026 and September 30, 2025)

2,706.9 2,374.0

23 unchanged sentences

Common stock, $ 0.10 par value, 1,000,000,000 shares authorized;

519,620,511 and 520,951,796 shares issued and outstanding at March 31, 2026 and September 30, 2025

507,507,250 and 520,951,796 shares issued and outstanding at June 30, 2026 and September 30, 2025

Capital in excess of par

17 unchanged sentences

(in millions)

for the six months ended

March 31, 2026 Shares Amount

for the nine months ended

June 30, 2026 Shares Amount

Balance at October 1, 2025 521.0 $ 52.1 $ 956.8 $ 11,516.0 $ ( 447.1 ) $ 12,077.8 $ 929.0 $ 13,006.8

25 unchanged sentences

Balance at March 31, 2026 519.6 $ 52.0 $ 999.9 $ 11,560.9 $ ( 489.0 ) $ 12,123.8 $ 1,012.6 $ 13,136.4

Net income 171.5 171.5 65.3 236.8

Other comprehensive loss ( 4.7 ) ( 4.7 ) ( 4.7 )

Dividends declared on common stock ($ 0.33 per share)

( 173.4 ) ( 173.4 ) ( 173.4 )

Repurchase of common stock ( 10.4 ) ( 1.0 ) ( 347.1 ) — ( 348.1 ) ( 348.1 )

(Forfeiture) issuance of common stock, net ( 1.7 ) ( 0.2 ) 4.2 4.0 4.0

Stock-based compensation 3.5 13.5 17.0 17.0

Net subscriptions and other 103.8 103.8

Adjustment to fair value of redeemable noncontrolling interests ( 51.9 ) ( 51.9 ) ( 51.9 )

Balance at June 30, 2026 507.5 $ 50.8 $ 660.5 $ 11,520.6 $ ( 493.7 ) $ 11,738.2 $ 1,181.7 $ 12,919.9

See Notes to Consolidated Financial Statements.

7 unchanged sentences

(in millions)

for the six months ended

March 31, 2025 Shares Amount

for the nine months ended

June 30, 2025 Shares Amount

Balance at October 1, 2024 523.6 $ 52.4 $ 947.6 $ 11,927.6 $ ( 419.5 ) $ 12,508.1 $ 734.9 $ 13,243.0

22 unchanged sentences

Balance at March 31, 2025 525.4 $ 52.5 $ 1,062.4 $ 11,730.0 $ ( 498.9 ) $ 12,346.0 $ 815.1 $ 13,161.1

Net income 92.3 92.3 4.4 96.7

Other comprehensive income 85.7 85.7 85.7

Dividends declared on common stock ($ 0.32 per share)

( 171.0 ) ( 171.0 ) ( 171.0 )

Repurchase of common stock ( 7.3 ) ( 0.7 ) ( 156.7 ) — ( 157.4 ) ( 157.4 )

Issuance of common stock 0.3 — 6.7 6.7 6.7

Stock-based compensation 42.6 42.6 42.6

Net subscriptions and other 28.1 28.1

Net consolidation of investment products 2.9 2.9

Adjustment to fair value of redeemable noncontrolling interests ( 41.0 ) ( 41.0 ) ( 41.0 )

Balance at June 30, 2025 518.4 $ 51.8 $ 955.0 $ 11,610.3 $ ( 413.2 ) $ 12,203.9 $ 850.5 $ 13,054.4

See Notes to Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended

Nine Months Ended

(in millions) 2026 2025

Net Income $ 948.7 $ 360.4

Adjustments to reconcile net income to net cash used in operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Stock-based compensation 151.0 170.0

3 unchanged sentences

Impairment of intangible assets

Net losses on investments 29.3 10.3

Net (gains) losses on investments ( 32.8 ) 41.7

Income from investments in equity method investees ( 58.6 ) ( 38.5 )

4 unchanged sentences

Changes in operating assets and liabilities:

Increase in receivables and other assets ( 330.6 ) ( 48.2 )

Decrease (increase) in receivables and other assets ( 309.9 ) 24.3

Decrease (increase) in investments, net ( 12.3 ) 15.5

Decrease in accrued compensation and benefits ( 36.0 ) ( 183.7 )

Decrease in accounts payable, accrued expenses and other liabilities ( 149.3 ) ( 300.1 )

Decrease in accounts payable and accrued expenses of consolidated investment products ( 0.1 ) ( 40.3 )

Net cash used in operating activities ( 282.7 ) ( 195.3 )

Increase (decrease) in accounts payable, accrued expenses and other liabilities ( 137.0 ) 63.7

Increase (decrease) in accounts payable and accrued expenses of consolidated investment products 17.0 ( 7.5 )

Net cash provided by operating activities 298.5 1,086.8

Purchase of investments ( 970.0 ) ( 904.4 )

4 unchanged sentences

Acquisition, net of cash acquired ( 78.6 ) —

Net consolidation (deconsolidation) of investment products 0.9 ( 4.1 )

Payments of deferred consideration liability — ( 90.5 )

Net consolidation of investment products 13.8 0.2

Net cash used in investing activities ( 3,336.5 ) ( 1,901.3 )

4 unchanged sentences

[Table continued from previous page]

Six Months Ended

Nine Months Ended

(in millions) 2026 2025

13 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents ( 28.0 ) ( 1.3 )

Decrease in cash and cash equivalents ( 4.9 ) ( 869.8 )

Increase (decrease) in cash and cash equivalents 187.0 ( 451.9 )

Cash and cash equivalents, beginning of period 3,573.9 4,408.9

8 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

Note 1 – Basis of Presentation

9 unchanged sentences

Revision to previously issued financial statements

During the quarter ended March 31, 2026, the Company identified that the amount reported in the supplemental disclosure of cash flow information in its consolidated statement of cash flows for cash paid for income taxes for the six month period ended March 31, 2025 was understated by $ 185.2 million, and the correct amount for that period was $ 402.3 million.

During the quarter ended March 31, 2026, the Company identified that the amount reported in the supplemental disclosure of cash flow information in its consolidated statement of cash flows for cash paid for income taxes was understated for the nine month period ended June 30, 2025 by $ 185.2 million, and the revised amount for that period was $ 417.3 million.

There is no impact on net income attributable to the Company, earnings per share, total assets, total liabilities, retained earnings, total shareholders’ equity or operating cash flow activities.

12 unchanged sentences

(in millions, except per share data) Three Months Ended

Six Months Ended

Nine Months Ended

2026 2025 2026 2025

11 unchanged sentences

Diluted 0.31 0.15 1.26 0.70

There were no nonparticipating nonvested stock unit awards excluded from the calculation of diluted earnings per share because their effect would have been antidilutive for the three and six months ended March 31, 2026 and 2025.

Note 4 – Revenues

3 unchanged sentences

Luxembourg Total

for the three months ended March 31, 2026

for the three months ended June 30, 2026

Investment management fees

9 unchanged sentences

Luxembourg Total

for the six months ended March 31, 2026

for the nine months ended June 30, 2026

Investment management fees

9 unchanged sentences

Luxembourg Total

for the three months ended March 31, 2025

for the three months ended June 30, 2025

Investment management fees

9 unchanged sentences

Luxembourg Total

for the six months ended March 31, 2025

for the nine months ended June 30, 2025

Investment management fees

7 unchanged sentences

Operating revenues are attributed to geographic areas based on the jurisdiction of the subsidiaries that provide the services, which may differ from the regions in which the related investment products are sold and domicile of the fund vehicle or client.

Revenues earned from sponsored funds were 84 % of the Company’s total operating revenues for the three and six months ended March 31, 2026 and 83 % for the three and six months ended March 31, 2025.

Revenues earned from sponsored funds were 84 % of the Company’s total operating revenues for the three and nine months ended June 30, 2026 and 83 % for the three and nine months ended June 30, 2025.

Note 5 – Investments

2 unchanged sentences

Investments consisted of the following:

(in millions) March 31,

(in millions) June 30,

2026 September 30,

8 unchanged sentences

The Company has entered into repurchase agreements with a third-party financing company for certain investments held by the Company.

As of March 31, 2026 and September 30, 2025, other liabilities includes repurchase agreements of $ 189.4 million and $ 200.5 million with investments of $ 191.8 million and $ 206.4 million in carrying value pledged as collateral.

As of June 30, 2026 and September 30, 2025, other liabilities includes repurchase agreements of $ 195.6 million and $ 200.5 million with investments of $ 198.9 million and $ 206.4 million in carrying value pledged as collateral.

The repurchase agreements have contractual maturity dates ranging between 2030 to 2039.

5 unchanged sentences

Expedient Total

as of March 31, 2026

as of June 30, 2026

Investments, at fair value

18 unchanged sentences

Total Liabilities Measured at Fair Value $ 193.7 $ — $ 20.4 $ — $ 214.1

As of March 31, 2026 and September 30, 2025, there were $ 45.1 million and $ 29.0 million of other investments which were adjusted to fair value on a nonrecurring basis and excluded from the tables above.

As of June 30, 2026 and September 30, 2025, there were $ 5.0 million and $ 29.0 million of other investments which were adjusted to fair value on a nonrecurring basis and excluded from the tables above.

Investments for which fair value was estimated using reported NAV as a practical expedient primarily consist of nonredeemable private equity, debt and infrastructure funds, and redeemable alternative credit, global equity and private real estate funds.

These investments were as follows:

(in millions) March 31,

(in millions) June 30,

2026 September 30,

6 unchanged sentences

1 The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets.

Investments with known liquidation periods have an expected weighted-average life of 2.1 years and 2.2 years at March 31, 2026 and September 30, 2025.

Investments with known liquidation periods have an expected weighted-average life of 1.8 years and 2.2 years at June 30, 2026 and September 30, 2025.

2 Investments are redeemable on a semi-monthly, monthly and quarterly basis.

1 unchanged sentence

(in millions) Fair Value

Level March 31, 2026 September 30, 2025

Level June 30, 2026 September 30, 2025

Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value

9 unchanged sentences

The balances related to CIPs included in the Company’s consolidated balance sheets were as follows:

(in millions) March 31,

(in millions) June 30,

2026 September 30,

14 unchanged sentences

$ 16,855.9 $ 13,077.7

The consolidation of CIPs did not have a significant impact on net income attributable to the Company during the three and six months ended March 31, 2026 and 2025.

The consolidation of CIPs did not have a significant impact on net income attributable to the Company during the three and nine months ended June 30, 2026 and 2025.

The Company has no right to the CIPs’ assets, other than its direct equity investments in them and investment management and other fees earned from them.

5 unchanged sentences

Expedient Total

as of March 31, 2026

as of June 30, 2026

Cash and cash equivalents of CLOs $ 1,008.0 $ — $ — $ — $ 1,008.0

13 unchanged sentences

These investments were as follows:

(in millions) March 31,

(in millions) June 30,

2026 September 30,

7 unchanged sentences

2 The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets.

3 Of the total unfunded commitments, the Company was contractually obligated to fund $ 6.7 million and $ 5.3 million based on its ownership percentage in the CIPs at March 31, 2026 and September 30, 2025.

3 Of the total unfunded commitments, the Company was contractually obligated to fund $ 6.7 million and $ 5.3 million based on its ownership percentage in the CIPs at June 30, 2026 and September 30, 2025.

Changes in Level 3 assets of equity and debt securities were as follows:

Three Months Ended

Six Months Ended

Nine Months Ended

(in millions)

2 unchanged sentences

$ 673.3 $ 545.0 $ 601.0 $ 550.1

Gains included in investment and other income (losses) of consolidated investment products, net 66.9 2.3 95.7 24.3

Gains (losses) included in investment and other income (losses) of consolidated investment products, net 48.7 ( 4.6 ) 144.4 19.7

Purchases 30.6 19.1 75.2 39.2

8 unchanged sentences

(in millions)

as of March 31, 2026 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average 1 )

as of June 30, 2026 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average 1 )

Equity and debt securities $ 532.4 Market pricing Private sale pricing $ 0.01 –$ 5,265.90 ($ 655.33 ) per share

20 unchanged sentences

(in millions) Fair Value

Level March 31, 2026 September 30, 2025

Level June 30, 2026 September 30, 2025

Value Estimated

8 unchanged sentences

1 Substantially all was Level 2.

Debt of CLOs totaled $ 12,153.1 million and $ 9,937.3 million at March 31, 2026 and September 30, 2025.

The debt had fixed and floating interest rates based on Secured Overnight Financing Rate (“SOFR”) ranging from 2.39 % to 11.90 % with a weighted-average effective interest rate of 5.58 % at March 31, 2026, and from 2.39 % to 12.26 % based on SOFR and Euro Interbank Offered Rate with a weighted-average effective interest rate of 6.00 % at September 30, 2025.

The contractual maturities for the debt of CLOs at March 31, 2026 were as follows:

Debt of CLOs totaled $ 13,333.5 million and $ 9,937.3 million at June 30, 2026 and September 30, 2025.

The debt had fixed and floating interest rates based on Secured Overnight Financing Rate (“SOFR”) ranging from 2.39 % to 11.67 % with a weighted-average effective interest rate of 5.32 % at June 30, 2026, and from 2.39 % to 12.26 % based on SOFR and Euro Interbank Offered Rate with a weighted-average effective interest rate of 6.00 % at September 30, 2025.

The contractual maturities for the debt of CLOs at June 30, 2026 were as follows:

(in millions)

5 unchanged sentences

The unpaid principal balance and fair value of the investments of CLOs were as follows:

(in millions) March 31,

(in millions) June 30,

2026 September 30,

2 unchanged sentences

Fair Value $ 13,742.0 $ 10,597.7

Investments 90 days or more past due were immaterial at March 31, 2026 and September 30, 2025.

The Company recognized $ 3.7 million and $ 14.9 million of net gains during the three and six months ended March 31, 2026 and $ 15.6 million and $ 27.3 million of net gains during the three and six months ended March 31, 2025, related to its own economic interests in the CLOs.

The aggregate principal related to the debt of CLOs was $ 12,258.5 million and $ 9,958.6 million at March 31, 2026 and September 30, 2025.

Investments 90 days or more past due were immaterial at June 30, 2026 and September 30, 2025.

The Company recognized $ 2.7 million and $ 17.5 million of net gains during the three and nine months ended June 30, 2026 and $ 14.0 million and $ 41.3 million of net gains during the three and nine months ended June 30, 2025, related to its own economic interests in the CLOs.

The aggregate principal related to the debt of CLOs was $ 13,700.1 million and $ 9,958.6 million at June 30, 2026 and September 30, 2025.

Note 8 – Redeemable Noncontrolling Interests

2 unchanged sentences

CIPs Minority Interests Total CIPs Minority Interests Total

for the three months ended March 31,

for the three months ended June 30,

Balance at beginning of period $ 397.0 $ 1,081.9 $ 1,478.9 $ 1,196.1 $ 820.8 $ 2,016.9

Net income (loss) 12.2 11.7 23.9 ( 167.4 ) 9.0 ( 158.4 )

Net income 2.2 16.3 18.5 9.0 11.0 20.0

Net subscriptions (distributions) and other 149.6 ( 12.8 ) 136.8 22.1 ( 33.4 ) ( 11.3 )

4 unchanged sentences

CIPs Minority Interests Total CIPs Minority Interests Total

for the six months ended March 31,

for the nine months ended June 30,

Balance at beginning of period $ 289.6 $ 892.4 $ 1,182.0 $ 687.8 $ 634.0 $ 1,321.8

1 unchanged sentence

Net subscriptions (distributions) and other 641.5 ( 30.4 ) 611.1 147.2 ( 31.8 ) 115.4

Net consolidations (deconsolidations) ( 422.8 ) — ( 422.8 ) 511.7 — 511.7

Net deconsolidations ( 628.1 ) — ( 628.1 ) ( 174.4 ) — ( 174.4 )

— 32.8 32.8 — — —

4 unchanged sentences

The Company’s maximum exposure to loss from these VIEs consists of equity investments, investment management and other fee receivables as follows:

(in millions) March 31,

(in millions) June 30,

2026 September 30,

4 unchanged sentences

As it has done in the past, the Company also may voluntarily elect to provide its sponsored funds with additional direct or indirect financial support based on its business objectives.

The Company did not provide additional financial or other support to its sponsored funds assessed as VIEs during the six months ended March 31, 2026 or fiscal year 2025.

The Company did not provide additional financial or other support to its sponsored funds assessed as VIEs during the nine months ended June 30, 2026 or fiscal year 2025.

Note 10 – Commitments and Contingencies

1 unchanged sentence

India Credit Fund Closure Matters .

During the six months ended March 31, 2026, there were no significant changes from the disclosure in the Form 10‑K for the fiscal year ended September 30, 2025.

The previously reported “first information report” (the preliminary step in an investigation) registered by the Economic Offences Wing of the Chennai police department in or around September 2020, was closed by the relevant court on July 17, 2026, with no action taken against the Company Respondents.

During the nine months ended June 30, 2026, there were no other significant changes from the disclosure in the Form 10‑K for the fiscal year ended September 30, 2025.

Western Asset Management Investigations and Litigation.

As previously disclosed, the Company launched an internal investigation into certain trade allocations of treasury derivatives in select Western Asset Management (“WAM”) managed accounts.

As previously disclosed, the Company launched an internal investigation into certain trade allocations of treasury derivatives in select Western Asset Management (“WAM”) managed accounts by its then-co-Chief Investment Officer, Ken Leech.

WAM received notification of parallel investigations by the SEC and the U.S.

1 unchanged sentence

WAM also received notice of an investigation into these trading activities by the CFTC.

The Company and WAM have fully cooperated with these investigations.

The Company and WAM fully cooperated with these investigations.

As previously disclosed, the CFTC informed WAM that it closed its investigation.

The Company has also previously disclosed that it was informed by the DOJ that it is prepared to resolve its investigation through a disposition that does not require the filing of any criminal charges against WAM.

The DOJ further informed the Company that as it continues the ongoing resolution discussions, which, as the DOJ noted, has required additional time to complete due to circumstances not attributable to WAM, it appreciates WAM’s commitment to full cooperation with the investigation.

The Company continues to cooperate with the SEC investigation, which remains ongoing.

Ken Leech, the former co-Chief Investment Officer of WAM, received a “Wells Notice” from the staff of the SEC in August 2024, and was placed on administrative leave at that time.

On June 3, 2026, the DOJ notified WAM that it is no longer a subject of the DOJ investigation and that it will take no further action.

On June 5, 2026, the SEC issued an order resolving its investigation of WAM in its entirety (the “Settlement”).

Under the Settlement, WAM, without admitting any wrongdoing, agreed to pay a civil penalty of $ 100.0 million to be paid into a Fair Fund for the benefit of investors.

These outcomes end the investigations of WAM by the DOJ and the SEC.

Leech received a “Wells Notice” from the staff of the SEC in August 2024, and was placed on administrative leave at that time.

Leech retired and is no longer with the Company, as previously disclosed.

3 unchanged sentences

Leech for similar allegations and for false statements made to the SEC.

The trial is scheduled to begin on June 15, 2026.

On July 3, 2025, Franklin, WAM and Ken Leech were named as defendants in a lawsuit filed by the Western PA Electrical Employees Insurance Trust Fund in the U.S.

On June 12, 2026, all criminal charges against Mr.

Leech alleging unlawful trade allocations were dismissed and Mr.

Leech and the DOJ reached a plea agreement on one charge of obstruction of a pending proceeding.

The SEC case against Mr.

Leech remains pending.

On July 3, 2025, Franklin, WAM and Mr.

Leech were named as defendants in a lawsuit filed by the Western PA Electrical Employees Insurance Trust Fund in the U.S.

District Court for the Western District of Pennsylvania seeking class certification on behalf of shareholders of two funds managed by WAM for the period January 1, 2021 through October 31, 2023.

3 unchanged sentences

The plaintiffs are pursuing claims under the Securities Exchange Act of 1934 against all defendants in connection with trade allocations made by Mr.

Leech in that period that are also the subject of the investigations reported above.

Leech in that period that were also the subject of the investigations reported above.

The plaintiffs are seeking, among other things, damages, interest, and costs and expenses, including attorneys’ fees.

7 unchanged sentences

On April 17, 2026, the court denied the Franklin defendants’ motion to dismiss.

Putnam Mutual Fund Litigation .

On June 22, 2026, two Putnam U.S.

trusts and certain current and former trustees, as well as Franklin and certain Franklin investment adviser and distributor subsidiaries were named as defendants in a lawsuit filed in the Massachusetts Superior Court, Suffolk County.

The plaintiffs allege they are fund shareholders and seek to represent a class of investors who purchased shares of certain Putnam U.S.

mutual funds on or after June 22, 2023.

The plaintiffs are pursuing claims under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, for allegedly false and misleading statements, or material omissions, in fund disclosures that relate to the treatment of accrued income as assets of the funds in the calculation of fund net asset values.

The plaintiffs are seeking, among other things, damages, rescission, injunctive relief, attorneys’ fees and costs, and pre- and post-judgment interest.

The lawsuits reported above against the Company are in their early stages.

4 unchanged sentences

Management is of the opinion that the ultimate resolution of such claims will not materially affect the Company’s business, financial position, results of operations or liquidity.

In management’s opinion, an adequate accrual has been made as of March 31, 2026 to provide for any probable losses that may arise from such matters for which the Company could reasonably estimate an amount.

In management’s opinion, an adequate accrual has been made as of June 30, 2026 to provide for any probable losses that may arise from such matters for which the Company could reasonably estimate an amount.

Indemnifications and Guarantees

4 unchanged sentences

Future payments for claims against the Company under these indemnities or guarantees could negatively impact the Company’s financial condition.

In management’s opinion, an adequate accrual has been made as of March 31, 2026 to provide for any probable losses pursuant to such indemnification agreements and/or guarantees.

In management’s opinion, an adequate accrual has been made as of June 30, 2026 to provide for any probable losses pursuant to such indemnification agreements and/or guarantees.

Other Commitments and Contingencies

At March 31, 2026, there were no other material changes in the other commitments and contingencies as reported in the Company’s Annual Report on Form 10-K for fiscal year 2025.

At June 30, 2026, there were no other material changes in the other commitments and contingencies as reported in the Company’s Annual Report on Form 10-K for fiscal year 2025.

Note 11 – Stock-Based Compensation

4 unchanged sentences

Shares Weighted-

for the six months ended March 31, 2026

for the nine months ended June 30, 2026

Nonvested balance at October 1, 2025 14,959 353 15,312 $ 22.81

2 unchanged sentences

Forfeited/canceled ( 2,353 ) — ( 2,353 ) 20.76

Nonvested Balance at March 31, 2026 21,371 349 21,720 $ 22.42

Total unrecognized compensation expense related to nonvested stock and stock unit awards was $ 248.6 million at March 31, 2026.

Nonvested Balance at June 30, 2026 19,045 349 19,394 $ 22.57

Total unrecognized compensation expense related to nonvested stock and stock unit awards was $ 200.0 million at June 30, 2026.

This expense is expected to be recognized over a remaining weighted-average vesting period of 1.7 years.

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

(in millions) 2026 2025 2026 2025

7 unchanged sentences

Investment and other income, net $ 131.0 $ 23.4 $ 267.3 $ 128.0

Net gains (losses) recognized on equity securities measured at fair value and trading debt securities that were held by the Company were $( 43.4 ) million and $( 55.4 ) million for the three and six months ended March 31, 2026 and $ 82.7 million and $( 1.0 ) million for the three and six months ended March 31, 2025.

Net gains (losses) recognized on equity securities measured at fair value and trading debt securities that were held by the Company were $ 68.9 million and $ 23.1 million for the three and nine months ended June 30, 2026 and $ 56.3 million and $( 3.6 ) million for the three and nine months ended June 30, 2025.

Note 13 – Segment and Geographic Information

4 unchanged sentences

Total assets on the consolidated balance sheets is the measure of segment assets.

Note 14 - Subsequent Event

On July 30, 2026, the Company entered into an amendment and restatement of its Amended and Restated Credit Agreement (the “Second Amended and Restated Credit Agreement”).

The Second Amended and Restated Credit Agreement amends and restates the Company’s existing revolving credit agreement to, among other things, increase the aggregate commitments and extend its maturity to July 30, 2031.

The Second Amended and Restated Credit Agreement provides for a five-year revolving credit facility with $ 1.5 billion of aggregate commitments with the option to increase the aggregate commitments by a maximum of $ 500.0 million.

As of July 30, 2026, there was $ 700.0 million outstanding under the Second Amended and Restated Credit Agreement.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements