# Pruco Securities, LLC X-17A-5 (2026-02-23) — Broker-dealer annual report - Company: Pruco Securities, LLC - Form: X-17A-5 - Filed: 2026-02-23 - Period: 2025-12-31 - Accession: 0000080887-26-000010 - CIK: 80887 - File #: 8-16402 - Type: Broker-dealer - Material weakness: No - Auditor: PricewaterhouseCoopers, LLP - Auditor location: New York, NY - Contact: Robert Smit - Phone: 973-367-1238 - Signed by: Robert Smit (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/80887/000008088726000010/pruco2025sfconly.pdf --- {0}------------------------------------------------ # **Pruco Securities, LLC** **Statement of Financial Condition December 31, 2025** {1}------------------------------------------------ ## Page(s) | Report of Independent Registered Public Accounting Firm | | | | |---------------------------------------------------------|-------|--|--| | Statement of Financial Condition | | | | | Statement of Financial Condition | | | | | Notes to Statement of Financial Condition | 3 - 8 | | | {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) # Report of Independent Registered Public Accounting Firm To the Board of Managers and Member of Pruco Securities, LLC # Opinion on the Financial Statement – Statement of Financial Condition We have audited the accompanying statement of financial condition of Pruco Securities, LLC (the "Company") as of December 31, 2025, including the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. # Basis for Opinion The financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit of this financial statement in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. New York, New York February 23, 2026 We have served as the Company's auditor since 1996. {3}------------------------------------------------ # Pruco Securities, LLC Statement of Financial Condition December 31, 2025 (dollars in thousands) | Assets | | | |-----------------------------------------------------|-------|--------| | Cash and cash equivalents | ಿತ | 46,613 | | Receivable from broker-dealers | | 288 | | Prepaid expenses and other assets | | 575 | | Total assets | ಕ್ಕಾ | 47,476 | | Liabilities and Member's Equity | | | | Liabilities | | | | Payable to affiliates | ಕ್ಕಾ | 689 | | Accounts payable and other accrued liabilities | | 433 | | Federal income tax payable to Prudential | | 548 | | Total liabilities | | 1,670 | | Commitments and contingent liabilities (see Note 6) | | | | Member's Equity | | | | Contributed capital | | 26,500 | | Undistributed earnings | | 19,306 | | Total member's equity | | 45,806 | | Total liabilities and member's equity | સ્ત્ર | 47,476 | The accompanying notes are an integral part of this Statement of Financial Condition. {4}------------------------------------------------ ### 1. Organization and Nature of Business Pruco Securities, LLC (the "Company") is a wholly-owned subsidiary of The Prudential Insurance Company of America ("PICA" or the "Parent"), which is a subsidiary of Prudential Financial, Inc. ("Prudential"). The Company, with its principal offices in Newark, NJ, is a registered broker dealer subject to the rules and regulations of the Security and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company is the principal underwriter and broker dealer for SEC registered variable life insurance products issued by affiliated companies, Pruco Life Insurance Company ("PLAZ") and Pruco Life Insurance Company of New Jersey ("PLNJ"). The Company provides a limited range of financial services. The business is limited to variable life insurance and variable annuity contracts. The Company is also registered with the SEC as an investment advisor and conducts such business under the name Prudential Financial Planning Services PFPS. Pruco Securities does not engage in investment advisory services. ### 2. Summary of Significant Accounting Policies ### Basis of presentation and use of estimates The Statement of Financial Condition has been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Statement of Financial Condition. Actual results could differ from these estimates. #### Cash and cash equivalents The Company defines cash and cash equivalents as amounts due from banks and from money market mutual funds. Cash and cash equivalents of \$46,613 represents amounts on deposit in corporate accounts at commercial banks. The Company earned investment income of \$3,109 from these cash balances in 2025, which is included in Other Income. There were no investments in money market mutual funds as of December 31, 2025. #### Receivables and payables due from/to affiliates Receivables from affiliates and payables to affiliates are further detailed in Note 5. #### Accounts payable and other accrued liabilities Accounts payable and other accrued liabilities primarily includes legal reserves for pending litigation and remediation matters, which are further detailed in Note 6, as well as various accruals for general and administrative expenses. {5}------------------------------------------------ # Pruco Securities, LLC Notes to Statement of Financial Condition December 31, 2025 (dollars in thousands) #### Income Taxes In accordance with federal and applicable state tax laws, the Company is treated as a branch of its single member ultimate owner, Prudential. It is included in the consolidated federal income tax return and certain consolidated and combined state income tax returns of Prudential. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. The application of U.S. GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax assets to an amount that is more likely than not to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. Accounting Standards Codification ("ASC") 740 requires the Company to account for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by the Internal Revenue Service ("IRS") or other taxing jurisdictions. Audit periods remain open for review until the statute of limitations has passed. Generally, for tax years which produce net operating losses, capital losses or tax credit carry forwards ("tax attributes"), the statute of limitations does not close, to the extent of these tax attributes, until the expiration of the statute of limitations for the tax year in which they are fully utilized. The completion of review or the expiration of limitations for a given audit period could result in an adjustment to the liability for income taxes. See Note 4 for additional information regarding income taxes. ### Financials Instruments--Credit Losses The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off-balance sheet credit exposures in accordance with Financial Accounting Standards Board ("FASB") ASC 326, Financial Instruments - Credit Losses. FASB ASC 326 requires the Company to estimate expected credit losses over the life of its financial assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company may be exposed to credit risk regarding its receivables, which are primarily receivables from broker-dealers, clearing organizations and mutual funds. The Company evaluated the nature of the receivables, historical collection experience and duration and other specific data. The Company determined that due to the short duration of the receivables and history of collections that any current expected credit losses are immaterial to the financial statements. ### Accounting Pronouncements, Recently Adopted Changes to U.S. GAAP are established by the FASB in the form of accounting standards updates ("ASU") to the FASB ASC. #### ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU requires entities to provide additional information primarily related to the effective tax rate reconciliation and income taxes paid. The adoption of this ASU resulted in expanded disclosures in Note 4, and had no impact on the Company's financial statements. {6}------------------------------------------------ Accounting Pronouncements, Not Yet Adopted The FASB has recently issued several other standards not referenced above with varying effective dates. The Company is not aware of any pronouncements that will have a material impact if adopted. #### 3. Fair Value Assets and Liabilities Fair Value Measurement—Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value quidance establishes a framework for measuring fair value that includes a hierarchy used to classify the positions measured at fair value based on the level of observability of the inputs used in measuring fair value. The fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1-Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. The Company's Level 1 assets represent an investment in a non-proprietary money market mutual fund. Level 2—Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. Level 3-Fair value is based on at least one or more significant unobservable inputs for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company does not have any level 3 assets or liabilities. There were no assets measured at fair value on a recurring basis or financial instruments carried at fair value as of December 31, 2025. {7}------------------------------------------------ # Pruco Securities, LLC Notes to Statement of Financial Condition December 31, 2025 #### (dollars in thousands) The table below presents the carrying amount and fair value by hierarchy level of certain financial instruments that are not reported at fair value. The Company did not have any transfers between the levels. | | Fair Value | | | | | | Carrying
Amount | | | | | | | | |------------------------------------------------|------------|--|---------|-------|------|--|--------------------|-----------|---------|-----------|-------|--|--|-------| | | Level 1 | | Level 2 | | | | | | Level 3 | | Total | | | Total | | Assets: | | | | | | | | | | | | | | | | Cash | \$ 46,613 | | ക്ക | | ಕ್ಕಾ | | | \$ 46.613 | ದ | 46.613 | | | | | | Receivable from broker-dealers | | | | 288 | | | | 288 | | 288 | | | | | | Prepaid Expenses and other assets | | | | 575 | | | | 575 | | 575 | | | | | | Total Assets | \$ 46,613 | | ಳು | 863 | ಕೆ | | | \$ 47,476 | | \$ 47,476 | | | | | | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | Payable to affiliates | ಿ | | લ્ત્ર | 689 | ക്ക | | ಿ | 689 | ಕ್ಕಾ | 689 | | | | | | Accounts payable and other accrued liabilities | | | | 433 | | | | 433 | | 433 | | | | | | Federal income tax payable to Prudential | | | | 548 | | | | 548 | | 548 | | | | | | Total Liabilities | સ્ત્ર | | မွ | 1,670 | ಕ | | | \$ 1,670 | ಕೆ | 1,670 | | | | | Due to the short-term nature of the assets and liabilities listed above, the carrying amounts equal or approximate fair value. #### 4. Income Taxes The application of U.S. GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance, if necessary, to reduce the deferred tax asset to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carry back years as well as projected taxable earnings exclusive of reversing temporary differences and carry forwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized. As of December 31, 2025, the Company does not require a valuation allowance for its deferred tax assets. {8}------------------------------------------------ U.S. GAAP prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a company has taken or expects to take on its tax returns. The Company does not have any unrecognized tax benefits at December 31, 2025. The Company files a consolidated Federal income tax return with Prudential. The tax years that remain subject to examination by the Internal Revenue Service at December 31, 2025 are 2014 through 2025. The Company is participating in the IRS's Compliance Program ("CAP"). Under CAP, the IRS assigns an examination team to review completed transactions as they occur in order to reach agreement with the Company on how they should be reported in the relevant tax returns. If disagreements arise, accelerated resolution programs are available to resolve the disagreements in a timely manner before the tax return is filed. #### 5. Related Party Transactions Certain balances included in Payable to affiliates, on the Statement of Financial Condition have been recorded net in accordance with ASC 210-20 and there is no cross-netting between different affiliated entities. At December 31, 2025 and for the year then ended, the Company had the following Statement of Financial Condition related party balances: | Statement of Financial Condition | Receivable - | | Payable | | | |----------------------------------------|--------------|--|---------|-------|--| | Receivable from/payable to affiliates | | | A | 689 | | | Federal income taxes | | | | 548 | | | | | | | 1.237 | | It is noted that balances included above may not agree to the Statement of Financial Condition as these amounts are settled through our affiliated entitles, although the Company may be contractually liable to a third party. ### 6. Commitments and Contingent Liabilities The Company is subject to legal and regulatory actions in the ordinary course of its business. Management of the Company, after consultation with legal counsel, believes that the ultimate resolution of any pending litigation or regulatory matters should not have any material adverse effect on the Company's financial statements. The Company's internal supervisory and control functions review the quality of sales and other customer interface procedures and may recommend modifications or enhancements. In certain cases, if appropriate, the Company may offer customers remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines. {9}------------------------------------------------ At December 31, 2025, the Company had reserves of \$429, including a remediation reserve of \$379 due to uncashed checks distributed to customers from a 2020 advisory program analysis related to industry-wide regulatory share class and revenue sharing initiatives. This reserve is included in Accounts payable and other accrued liabilities in the Statement of Financial Condition. The Company has received regulatory inquiries and requests for information from state and federal regulators, including subpoenas from the SEC, concerning the appropriateness of variable product sales and replacement activity. The Company is cooperating with regulators and may become subject to additional regulatory inquiries and other actions related to this matter. #### 7. Segment Information The Company provides a limited range of financial services as described in Note 1. As such, it is organized as a single reportable segment and manages the business activities on a total entity basis. The accounting policies are the same as those described in Note 2. The Company has identified its President as the chief operating decision maker ("CODM"), who may use excess net capital (as described in Note 8) to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends, and manage the Company. The measure of segment assets is reported as Total assets on the Statement of Financial Condition. #### Requiatory Requirements 8. The Company is subject to the Uniform Net Capital Rule (Rule 15c3-1), pursuant to the Securities Exchange Act of 1934, which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2025, the Company had net capital of \$44,943, which was \$44,693 in excess of its required net capital of \$250. The Company's ratio of aggregate indebtedness to net capital was 0.04 to 1 . The Company claims exemption from 17 C.F.R. § 240.15c3-3 under Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 as the Company does not and will not, (1) directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (2) does not and will not carry accounts of or for customers and (3) does not and will not carry PAB accounts. #### 9. Subsequent Events The Company has evaluated and determined that no events or transactions occurred after December 31, 2025 and through the issuance date, February 23, 2026 of these financial statements that would require recognition or disclosure in these financial statements. {10}------------------------------------------------ -- This page is intentionally blank -- Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.