What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-07 compared with 2025-08-07 · 76 added, 73 removed, 310 unchanged (32% of the section changed)

55 unchanged sentences

Financial Highlights

▪ Total revenues were $210.5 million in the second quarter of 2025, a decrease of $13.9 million, or 6.2%, compared to total revenues of $224.4 million in the second quarter of 2024.

▪ Operating income was $45.2 million in the second quarter of 2025, an increase of $1.0 million, or 2.3%, compared to $44.2 million in the second quarter of 2024.

▪ Net income per diluted share was $6.12 in the second quarter of 2025, an increase of $3.69, or 151.9%, compared to net income per diluted share of $2.43 in the second quarter of 2024.

▪ Total revenues were $216.4 million in the third quarter of 2025, a decrease of $10.6 million, or 4.7%, compared to total revenues of $227.0 million in the third quarter of 2024.

▪ Operating income was $47.1 million in the third quarter of 2025, a decrease of $8.2 million, or 14.8%, compared to $55.3 million in the third quarter of 2024.

▪ Net income per diluted share was $4.65 in the third quarter of 2025, a decrease of $1.06, or 18.6%, compared to net income per diluted share of $5.71 in the third quarter of 2024.

Assets Under Management

Total sales were $5.6 billion in the second quarter of 2025, a decrease of $0.6 billion, or 9.1%, from $6.1 billion in the second quarter of 2024.

Net flows were $(3.9) billion in the second quarter of 2025 compared to net flows of $(2.6) billion in the second quarter of 2024.

At June 30, 2025, total assets under management were $170.7 billion, representing a decrease of $2.9 billion, or 1.7%, from June 30, 2024, and a decrease of $4.3 billion, or 2.5%, from December 31, 2024.

The decrease in total assets under management from June 30, 2024 included $13.5 billion from net outflows and $2.7 billion from other activity partially offset by $13.3 billion from positive market performance.

Total sales were $6.3 billion in the third quarter of 2025, a decrease of $0.3 billion, or 4.9%, from $6.6 billion in the third quarter of 2024.

Net flows were $(3.9) billion in the third quarter of 2025 compared to net flows of $(1.7) billion in the third quarter of 2024.

At September 30, 2025, total assets under management were $169.3 billion, representing a decrease of $14.4 billion, or 7.8%, from September 30, 2024, and a decrease of $5.7 billion, or 3.2%, from December 31, 2024.

The decrease in total assets under management from September 30, 2024 primarily included $15.6 billion from net outflows partially offset by $3.8 billion from positive market performance.

The decrease in total assets under management from December 31, 2024 included $10.8 billion from net outflows partially offset by $6.6 billion from positive market performance.

1 unchanged sentence

The following table summarizes our assets under management by product:

As of June 30, Change

As of September 30, Change

(in millions) 2025 2024 $ %

9 unchanged sentences

(3) Represents assets under management of institutional separate and commingled accounts including structured products.

(4) Calculated according to revenue earning basis that includes average daily, weekly, monthly beginning balance, monthly ending

balance, or quarter beginning and ending balance, as well as quarter beginning or ending spot balance.

(4) Calculated according to revenue earning basis that includes average daily, weekly, monthly beginning balance, monthly ending balance, or quarter beginning and ending balance, as well as quarter beginning or ending spot balance.

Asset Flows by Product

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2025 2024 2025 2024

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retail funds, global funds and ETFs.

(2) Represents open-end and closed-end fund distributions net of reinvestments, the impact of non-sales related activities such as asset acquisitions/(dispositions), seed capital investments/(withdrawals), current income or capital returned by structured

products, and the use of leverage.

(2) Represents open-end and closed-end fund distributions net of reinvestments, the impact of non-sales related activities such as

asset acquisitions/(dispositions), seed capital investments/(withdrawals), current income or capital returned by structured products and the use of leverage.

(3) Includes investment models provided to managed account sponsors.

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The following table summarizes assets under management by asset class:

As of June 30, Change % of Total

As of September 30, Change % of Total

(in millions) 2025 2024 $ % 2025 2024

8 unchanged sentences

The following tables summarize the average management fees earned in basis points and average assets under management:

Three Months Ended June 30,

Three Months Ended September 30,

Average Fee Earned

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All Products 41.2 41.9 $ 170,276 $ 175,990

Six Months Ended June 30,

Nine Months Ended September 30,

Average Fee Earned

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Revenue-related adjustments are based on specific agreements and reflect the portion of investment management fees passed-through to third-party client intermediaries for services to investors in sponsored investment products.

Fund fees are calculated based on average daily or weekly net assets.

Retail separate account fees, which includes wealth management accounts, are calculated based on the end

of the preceding or current quarter’s asset values or on an average of month-end balances.

Fund fees are calculated based on average daily or

weekly net assets.

Retail separate account fees, which include wealth management accounts, are calculated based on the end of the preceding or current quarter’s asset values or on an average of month-end balances.

Institutional account fees are calculated based on an average of month-end balances, an average of current quarter’s asset values or on a combination of the underlying cash flows and the principal value of the product.

Average fees earned will vary based on several factors, including the asset mix and expense reimbursements to the funds.

The average fee rate earned decreased for the three and six months ended June 30, 2025 compared to the same periods in the prior year primarily due to a shift in the asset mix in our open-end funds to certain strategies, which have a lower fee rate, partially offset by an increase in average fee rates of our institutional accounts due to the redemptions of lower fee earning assets.

The average fee rate earned decreased for the three and nine months ended September 30, 2025 compared to the same periods in the prior year primarily due to a shift in the asset mix in our open-end funds to certain strategies, which have a lower fee rate, partially offset by an increase in average fee rates of our institutional accounts due to the redemptions of lower fee earning assets.

Results of Operations

1 unchanged sentence

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

(in thousands) 2025 2024 $ % 2025 2024 $ %

4 unchanged sentences

Operating income (loss) 47,060 55,258 (8,198) (14.8) % 128,865 131,769 (2,904) (2.2) %

Other income (expense), net (96) (13,892) 13,796 (99.3) % (7,738) (8,391) 653 (7.8) %

Other income (expense), net (12,120) (28) (12,092) N/M (19,858) (8,419) (11,439) 135.9 %

Interest income (expense), net 9,509 9,671 (162) (1.7) % 30,990 26,019 4,971 19.1 %

6 unchanged sentences

Earnings (loss) per share-diluted $ 4.65 $ 5.71 $ (1.06) (18.6) % $ 14.81 $ 12.23 $ 2.58 21.1 %

In the second quarter of 2025, total revenues decreased 6.2% to $210.5 million from $224.4 million in the second quarter of 2024, primarily as a result of decreased average assets under management.

Operating income increased $1.0 million to $45.2 million in the second quarter of 2025 compared to $44.2 million in the second quarter of 2024, due primarily to decreased employment expenses and amortization expense.

N/M = Not Meaningful

In the third quarter of 2025, total revenues decreased 4.7% to $216.4 million from $227.0 million in the third quarter of 2024, primarily as a result of decreased average assets under management.

Operating income decreased by $8.2 million to $47.1 million in the third quarter of 2025 compared to $55.3 million in the third quarter of 2024, due primarily to decreased revenues as mentioned above.

Revenues by source were as follows:

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

(in thousands) 2025 2024 $ % 2025 2024 $ %

11 unchanged sentences

Investment management fees are earned based on a percentage of assets under management and are paid pursuant to the terms of the respective investment management agreements, which generally require monthly or quarterly payments.

Investment management fees decreased by $12.2 million, or 6.4%, and $14.4 million, or 3.8%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to decreased average assets under management.

Investment management fees decreased by $10.1 million, or 5.2%, and $24.5 million, or 4.3%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year primarily due to decreased average assets under management.

Distribution and Service Fees

Distribution and service fees are sales- and asset-based fees earned from open-end funds for marketing and distribution services.

Distribution and service fees decreased by $1.4 million, or 10.8%, and $2.7 million, or 9.9%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to lower sales and average assets under management for open-end funds in share classes that have sales- and asset-based distribution and service fees.

Distribution and service fees decreased by $1.1 million, or 7.7%, and $3.8 million, or 9.2%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year primarily due to lower sales and average assets under management for open-end funds in share classes that have sales- and asset-based distribution and service fees.

Administration and Shareholder Service Fees

1 unchanged sentence

retail funds, ETFs and closed-end funds.

Fund administration and shareholder service fees decreased by $0.3 million, or 1.4%, and $0.9 million, or 2.5%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year due to the decrease in average assets under management of our U.S.

retail funds.

Fund administration and shareholder service fees remained consistent during the three and nine months ended September 30, 2025 compared to the same periods in the prior year.

Other Income and Fees

Other income and fees primarily represent fees related to other fee-earning assets and certain ETFs.

Other income and fees remained consistent during the three and six months ended June 30, 2025 compared to the same periods in the prior year.

Other income and fees increased $0.3 million, or 10.0%, for the nine months ended September 30, 2025, compared to the same period in the prior year primarily due to increased marketing fees earned during the current year period.

Operating Expenses

1 unchanged sentence

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

(in thousands) 2025 2024 $ % 2025 2024 $ %

11 unchanged sentences

Employment expenses consist of fixed and variable compensation and related employee benefit costs.

Employment expenses decreased by $7.6 million, or 7.2%, and $13.7 million, or 6.2%, for the three and six months ended June 30, 2025, respectively, primarily due to a decrease in profit- and sales-based compensation.

Employment expenses decreased by $6.7 million, or 6.4%, and $20.5 million, or 6.3%, for the three and nine months ended September 30, 2025, respectively, primarily due to a decrease in profit- and sales-based compensation and stock-based compensation expense.

Distribution and Other Asset-Based Expenses

1 unchanged sentence

These payments are primarily based on assets under management.

Distribution and other asset-based expenses decreased $1.7 million, or 7.3%, and $3.2 million, or 6.6%, for the three and six months ended June 30, 2025, respectively, primarily due to decreases in assets under management in share classes that have asset-based distribution and other asset-based expenses.

Distribution and other asset-based expenses decreased $2.1 million, or 8.9%, and $5.3 million, or 7.4%, for the three and nine months ended September 30, 2025, respectively, primarily due to decreases in assets under management in share classes that have asset-based distribution and other asset-based expenses.

Other Operating Expenses

Other operating expenses primarily consist of investment research and technology costs, software application and development expenses, professional fees, travel and distribution-related costs, rent and occupancy expenses, and other business costs.

Other operating expenses decreased $0.5 million, or 1.5% for the three months ended June 30, 2025 primarily as a result of lower rent expense.

Other operating expenses increased by $1.2 million, or 1.9%, for the six months ended June 30, 2025 compared to the same period in the prior year primarily due to costs associated with lease terminations during the first quarter of 2025.

Other operating expenses increased $2.1 million, or 6.8%, and $3.3 million, or 3.4%, for the three and nine months ended September 30, 2025 compared to the same periods in the prior year primarily due to increased legal and professional fees associated with the refinancing of the Company's credit facility and discrete business initiatives.

Other Operating Expenses of CIP

Other operating expenses of CIP decreased by $2.1 million, or 72.2%, and $1.8 million, or 49.7%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to refinancing activities associated with two CLO's in the prior year periods.

Other operating expenses of CIP decreased by $1.8 million, or 43.3%, for the nine months ended September 30, 2025, compared to the same period in the prior year primarily due to refinancing activities associated with two CLO's in the prior year period.

Change in Fair Value of Contingent Consideration

1 unchanged sentence

The change in fair value is recorded in the current period as a gain or loss.

The change in fair value of contingent consideration for the three and six months ended June 30, 2025 was primarily attributable to changes in underlying performance estimates and the passage of time.

The change in fair value of contingent consideration for the nine months ended September 30, 2025 was primarily attributable to changes in underlying performance estimates and the passage of time.

Depreciation Expense

Depreciation expense consists primarily of the straight-line depreciation of furniture, equipment and leasehold improvements.

Depreciation expense decreased by $0.3 million, or 11.6%, for the three months ended June 30, 2025 and

remained consistent for the six months ended June 30, 2025, compared to the same periods in the prior year.

The decrease in the three month period is primarily due to the prior year acceleration of depreciation on leasehold improvements associated with a terminated lease, partially offset by an increase as a result of software and equipment purchases.

Depreciation expense decreased by $0.4 million, or 17.5%, and $0.4 million, or 5.4% for the three and nine

months ended September 30, 2025, compared to the same periods in the prior year primarily due to the prior year acceleration of depreciation on leasehold improvements associated with a terminated lease, partially offset by an increase as a result of software and equipment purchases.

Amortization Expense

Amortization expense consists of the amortization of definite-lived intangible assets over their estimated useful lives.

Amortization expense decreased $2.3 million, or 14.8%, and $4.6 million, or 15.2%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year, primarily due to intangible assets becoming fully amortized.

Amortization expense decreased by $4.6 million, or 10.6%, for the nine months ended September 30, 2025, compared to the same period in the prior year, primarily due to intangible assets becoming fully amortized.

Other Income (Expense)

1 unchanged sentence

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

(in thousands) 2025 2024 $ % 2025 2024 $ %

3 unchanged sentences

Other income (expense), net 536 548 (12) (2.2) % 2,671 1,695 976 57.6 %

Total Other Income (Expense), net $ (96) $ (13,892) $ 13,796 (99.3) % $ (7,738) $ (8,391) $ 653 (7.8) %

Total Other Income (Expense), net $ (12,120) $ (28) $ (12,092) N/M $ (19,858) $ (8,419) $ (11,439) 135.9 %

N/M = Not Meaningful

Realized and unrealized gain (loss) on investments, net

Realized and unrealized gain (loss) on investments, net changed during the three and six months ended June 30, 2025 by $5.5 million and $1.1 million, respectively, compared to the same periods in the prior year.

The realized and unrealized gains and losses reflect changes in overall market conditions for the respective periods.

Realized and unrealized gain (loss) on investments, net changed during the three and nine months ended September 30, 2025 by $(2.3) million and $(1.2) million, respectively, compared to the same periods in the prior year.

The change for the three and nine months ended September 30, 2025 is primarily attributable to a decrease in unrealized gains due to changes in market values of our investments.

Realized and unrealized gain (loss) of CIP, net

Realized and unrealized gain (loss) of CIP, net changed by $7.7 million and $(1.5) million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year.

The change for the three months ended June 30, 2025 consisted primarily of changes in net unrealized gains of $14.2 million related to the value of the notes payable, partially offset by net unrealized and realized losses of $6.4 million due to changes in market values of leveraged loans.

The change for the six months ended June 30, 2025 consisted primarily of changes in net unrealized and realized losses of $45.7 million, due to changes in market values of leveraged loans, partially offset by net unrealized gains of $44.2 million related to the value of the notes payable.

Realized and unrealized gain (loss) of CIP, net changed by $(9.8) million and $(11.2) million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year.

The change for the three months ended September 30, 2025 consisted primarily of changes in net unrealized losses of $21.8 million related to the value of the notes payable, partially offset by net unrealized and realized gains of $12.0 million due to changes in market values of leveraged loans.

The change for the nine months ended September 30, 2025 consisted primarily of changes in net unrealized and realized losses of $33.7 million, due to changes in market values of leveraged loans, partially offset by net unrealized gains of $22.5 million related to the value of the notes payable.

Other income (expense), net

Other income (expense), net changed by $0.5 million and $1.0 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year due to changes in the gains and losses on our equity method investments, as well as foreign currency gains and losses.

Other income (expense), net changed by $1.0 million for the nine months ended September 30, 2025, compared to the same period in the prior year due to changes in the gains and losses on our equity method investments, as well as foreign currency gains and losses.

Interest Income (Expense)

1 unchanged sentence

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

(in thousands) 2025 2024 $ % 2025 2024 $ %

6 unchanged sentences

Interest Expense

Interest expense decreased $1.0 million, or 18.3%, and $2.1 million, or 19.0%, for the three and six months ended June 30, 2025, respectively, primarily due to lower average debt outstanding and lower average interest rates during the current year periods.

Interest expense decreased $0.5 million, or 8.7%, and $2.7 million, or 15.5%, for the three and nine months ended September 30, 2025, respectively, primarily due to lower average debt outstanding and lower average interest rates during the current year periods.

Interest and Dividend Income

Interest and dividend income is earned on cash equivalents and our marketable securities.

Interest and dividend income decreased $0.6 million, or 22.3%, and $1.0 million, or 17.0%, during the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to lower average interest rates and average investments in the current year period.

Interest and dividend income decreased $0.7 million, or 24.5%, and $1.8 million, or 19.4%, during the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year primarily due to lower average interest rates and average investments in the current year period.

Interest and Dividend Income of Investments of CIP

Interest and dividend income of investments of CIP decreased $6.3 million, or 12.1%, and $9.9 million, or 9.6%, for the three and six months ended June 30, 2025, respectively, compared to the same period in the prior year primarily due to lower average interest rates in the current year period.

Interest and dividend income of investments of CIP decreased $4.7 million, or 9.3%, and $14.6 million, or 9.5%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year primarily due to lower average interest rates in the current year period.

Interest Expense of CIP

Interest expense of CIP represents interest expense on the notes payable of CIP.

Interest expense of CIP decreased by $8.5 million, or 20.2%, and $13.9 million, or 17.0%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year, primarily due to lower average interest rates in the current year period.

Interest expense of CIP decreased by $4.8 million, or 12.5%, and $18.7 million, or 15.6%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year, primarily due to lower average interest rates in the current year period.

Income Tax Expense (Benefit)

The provision for income taxes reflected U.S.

federal, state and local taxes at an estimated effective tax rate of 25.9% and 24.4% for the six months ended June 30, 2025 and 2024, respectively.

The higher estimated effective tax rate for the six months ended June 30, 2025 was primarily due to a change in valuation allowances in the current year related to the tax effects of lower realized and unrealized gains on Company investments compared to the prior year.

federal, state and local taxes at an estimated effective tax rate of 27.0% and 24.4% for the nine months ended September 30, 2025 and 2024, respectively.

The higher estimated effective tax rate for the nine months ended September 30, 2025 was primarily due to a change in valuation allowances in the current year related to the tax effects of lower realized and unrealized gains on Company investments compared to the prior year.

Liquidity and Capital Resources

1 unchanged sentence

The following table summarizes certain financial data relating to our liquidity and capital resources:

September 30,

2025 December 31, 2024 Change

7 unchanged sentences

Total equity 919,777 901,636 18,141 2.0 %

Six Months Ended

June 30, Change

Nine Months Ended

September 30, Change

(in thousands, Provided by (Used in);

4 unchanged sentences

Financing activities (114,246) (129,506) 15,260 (11.8) %

At June 30, 2025, we had $172.2 million of cash and cash equivalents and $120.6 million of investments, which included $82.9 million of investment securities, compared to $265.9 million of cash and cash equivalents and $119.2 million of investments, which included $83.8 million of investment securities, at December 31, 2024.

At September 30, 2025, we had $370.6 million of cash and cash equivalents and $149.5 million of investments, which included $110.6 million of investment securities, compared to $265.9 million of cash and cash equivalents and $119.2 million of investments, which included $83.8 million of investment securities, at December 31, 2024.

Uses of Capital

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Failure to meet these requirements could result in adverse consequences to us, including additional reporting requirements, or interruption of our business.

At June 30, 2025, these subsidiaries were in compliance with all minimum net capital requirements.

At September 30, 2025, these subsidiaries were in compliance with all minimum net capital requirements.

Balance Sheet

4 unchanged sentences

Operating Cash Flow

Net cash provided by operating activities of $72.0 million for the six months ended June 30, 2025 increased by $36.5 million from net cash provided by operating activities of $35.4 million for the same period in the prior year primarily due to an increase of $36.4 million in net sales of investments by CIP in the current year period.

Net cash provided by operating activities of $180.2 million for the nine months ended September 30, 2025 increased by $75.7 million from net cash provided by operating activities of $104.6 million for the same period in the prior year primarily due to an increase of $78.0 million in net sales of investments by CIP in the current year period.

Investing Cash Flow

Cash flows from investing activities consist primarily of capital expenditures and other investing activities related to our business operations.

Net cash used in investing activities of $4.0 million for the six months ended June 30, 2025 was consistent with net cash used in investing activities of $3.8 million for the same period in the prior year.

Net cash used in investing activities of $5.4 million for the nine months ended September 30, 2025 increased by $0.6 million from net cash used in investing activities of $4.8 million for the same period in the prior year primarily due to increased capital expenditures in the current year period.

Financing Cash Flow

Cash flows from financing activities consist primarily of transactions related to our common shares, issuance and repayment of debt by us and CIP, payments of contingent consideration and purchases and sales of noncontrolling interests.

Net cash used in financing activities of $226.5 million for the six months ended June 30, 2025 increased by $204.7 million from net cash used of $21.8 million for the same period in the prior year primarily due to a $173.9 million decrease in net borrowings of CIP and an increase of $32.5 million in repurchases of our common shares during the current year period.

Net cash used in financing activities of $114.2 million for the nine months ended September 30, 2025 decreased by $15.3 million from net cash used of $129.5 million for the same period in the prior year primarily due to a $179.0 million increase in net borrowings as a result of the refinancing of our credit facility partially offset by $136.4 million decrease in net borrowings of CIP and a $17.6 million increase in repurchases of our common shares during the current year period.

Credit Agreement

The Company's credit agreement, as amended (the "Credit Agreement"), comprises (i) a $275.0 million term loan with a seven-year term (the "Term Loan") expiring in September 2028, and (ii) a $175.0 million revolving credit facility with a five-year term expiring in September 2026.

The Company repaid $1.4 million outstanding under the Term Loan during the six months ended June 30, 2025 and had $234.7 million outstanding under the Term Loan at June 30, 2025.

In accordance with ASC 835, Interest , the amounts outstanding under the Company's Term Loan are presented on the Condensed Consolidated Balance Sheets net of related debt issuance costs, which were $3.4 million as of June 30, 2025.

On September 26, 2025, the Company refinanced its existing credit agreement by entering into a new credit agreement (the “Credit Agreement”).

The Credit Agreement provides for (i) a $400.0 million term loan for the Company with a seven-year term (the "Term Loan") expiring in September 2032, and (ii) a $250.0 million revolving credit facility with a five-year term expiring in September 2030.

A portion of the proceeds of the refinancing have been used to repay the $234.7 million outstanding on the previous term loan.

The Company has the right, subject to customary conditions specified in the Credit Agreement, to request additional revolving credit facility commitments and additional term loans to be made under the Credit Agreement.

At September 30, 2025, $400.0 million was outstanding under the Term Loan, and there were no outstanding borrowings under the revolving credit facility.

In accordance with Accounting Standards Codification 835, Interest , the amounts outstanding under the Term Loan are presented on the Condensed Consolidated Balance Sheet net of related debt issuance costs, which were $9.4 million as of September 30, 2025.

Critical Accounting Policies and Estimates

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A complete description of our significant accounting policies is included in our 2024 Annual Report on Form 10-K.

There were no material changes in our critical accounting policies and estimates in the three months ended June 30, 2025.

There were no material changes in our critical accounting policies and estimates in the three months ended September 30, 2025.

Recently Issued Accounting Pronouncements

2 unchanged sentences

The Company is primarily exposed to market risk associated with unfavorable movements in interest rates and securities prices.

During the three and six months ended June 30, 2025, there were no material changes to the information contained in Part II, Item 7A of the Company's 2024 Annual Report on Form 10-K.

During the three and nine months ended September 30, 2025, there were no material changes to the information contained in Part II, Item 7A of the Company's 2024 Annual Report on Form 10-K.

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 2. Management’s Discussion and Analysis