# LEERINK PARTNERS LLC X-17A-5 (2026-02-27) — Broker-dealer annual report - Company: LEERINK PARTNERS LLC - Form: X-17A-5 - Filed: 2026-02-27 - Period: 2025-12-31 - Accession: 0000949896-26-000002 - CIK: 949896 - File #: 8-48535 - Type: Broker-dealer - Material weakness: No - Auditor: BDO USA, P.C. - Auditor location: Boston, MA - Contact: Andrea Siciliano - Phone: 617-918-4548 - Email: joe.gentile@leerink.com - Website: leerink.com - Signed by: Joseph Gentile (Chief Administrative Officer) Original filing: https://www.sec.gov/Archives/edgar/data/949896/000094989626000002/public_x17a-5.pdf --- {0}------------------------------------------------ #### **S TATEMENT OF F INANCIA L C ONDITION** **Leerink Partners LLC Year Ended December 31, 2025 Filed Pursuant to Rule 17a-5(e)(3) as a Public Document** {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # ANNUAL REPORTS FORM X-17A-5 PART II ![](_page_1_Picture_3.jpeg) FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FILING FOR THE PERIOD BEGINNING | 01/01/25 | AND ENDING | 12/31/25
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A. REGISTRANT IDENTIFICATION | | | | NAME OF FIRM: Leerink Partners LLC | | | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | Broker-dealer
Check here if respondent is also an OTC derivatives dealer | Security-based swap dealer | Major security-based swap participant | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 53 State Street, 40th Floor | | | | | (No. and Street) | | | | | MA | | | | Boston
(City) | (State) | | 02109
(Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING
Joseph Gentile | 212-277-6042 | | joe.gentile@leerink.com | | (Name) | (Area Code -Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | BDO USA, P.C. | | | | | (Name- if individual, state last, first, and middle name) | | | | One International Place | Boston | MA | 02110 | | (Address) | (City) | (State) | (Zip Code) | | October 8, 2003 | 243 | | | | (Date of Registration with PCAOB) (if applicable) | | | (PCAOB Registration Number, if applicable) | | | FOR OFFICIAL USE ONLY | | | | | | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {2}------------------------------------------------ | l, Joseph Gentile | , swear (or affirm) that, to the best of my knowledge and belief, the financial | | |-------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | report pertaining to the firm of Leerink Partners LLC | | ______________________________________________________________________________________________________________________________________________________________________________ | | | December 31, 2025, is true and correct. I further swear (or affirm) that neither the company nor any partner, director, | | | | or equivalent person, as the case may proprietary interest in any account classified solely as that of a customer. | | | | | | | | Signature: | | | | | | - - - - - - - - - - - - - - - - - - - - - - - - - - - {3}------------------------------------------------ # Leerink Partners LLC Statement of Financial Condition December 31, 2025 # **Contents** | Report of Independent Registered Public Accounting Firm1 | | |----------------------------------------------------------|--| | | | | Statement of Financial Condition
2 | | | Notes
to
Statement of Financial Condition3 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Tel: 617-422-0700 Fax: 617-422-0909 **www.bdo.com** One International Place Boston, MA 02110 #### **Report of Independent Registered Public Accounting Firm** Leerink Intermediate Holdings LLC, the sole member of Leerink Partners LLC and the Board of Directors of Leerink Holdings LLC Boston, Massachusetts #### **Opinion on Financial Statement** We have audited the accompanying statement of financial condition of Leerink Partners LLC (the "Broker-Dealer") as of December 31, 2025, and 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 Broker-Dealer at December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of the Broker-Dealer's management. Our responsibility is to express an opinion on the Broker-Dealer'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 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. We have served as the Broker-Dealer's auditor since 2013. February 27, 2026 BDO is the brand name for the BDO network and for each of the BDO Member Firms. BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. {5}------------------------------------------------ #### **Assets** | Cash and cash equivalents | \$400,541,179 | |------------------------------------------------------------------------|---------------| | Certificates of deposit | 7,485,702 | | Receivable from and deposit with clearing organization | 9,757,688 | | Receivable from clients, net of allowance for expected credit | | | losses of \$412,697 | 98,576,820 | | Due from employees | 697,940 | | Notes receivable from employees, net of
accumulated amortization of | | | \$14,786,694 | 15,863,341 | | Marketable securities, at fair value | 36,185,569 | | Due from affiliate | 54,938 | | Prepaid expenses | 4,784,728 | | Right-of-use assets, net | 48,387,921 | | Furniture, equipment, and leasehold improvements, net of | | | accumulated depreciation of \$18,431,727 | 36,167,865 | | Other assets | 11,625,353 | | Total assets | \$670,129,044 | | Liabilities and member's equity | | | Liabilities: | | | Accrued compensation
and
employee benefits | \$290,149,805 | | Accounts payable
and
accrued expenses | 14,895,331 | | Lease liabilities | 60,393,972 | | Payable to broker-dealers | 67,592,248 | | Due to affiliate | 5,600,061 | | Total liabilities | 438,631,417 | | Commitments and contingencies (Note 9) | | | Member's equity | 231,497,627 | | Total liabilities and member's equity | \$670,129,044 | *The accompanying notes are an integral part of this financial statement.* *.* {6}------------------------------------------------ #### **1. Organization and Nature of Business** ## **Nature of Business** Leerink Partners LLC (the "Company") is an investment bank focused on providing companies with capital-raising services, financial advice on mergers and acquisitions, sales and trading services and equity research. The Company is registered with the Securities and Exchange Commission ("SEC") as a securities broker-dealer under Section 15(b) of the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company has claimed an exemption from SEC Rule 15c3-3 ("Customer Protection Rule") under section (k)(2)(ii) of that rule for the portion of its business activities cleared via a clearing broker ("Pershing LLC") on a fully disclosed basis. For the remaining business activities, the Company does not claim exemption from the Customer Protection Rule but limits its business activities to those specified in Footnote 74 of SEC Release No. 34-70073. The Company operates in one reporting segment and earns corporate finance fees and commission income **(**See Note 2 for a detailed description of the services the Company provides). The Company has identified its Chief Executive Officer and Chief Administrative Officer as the chief operating decision makers ("CODM"), who use the net income to evaluate the results of the business. Additionally, the CODM uses excess net capital (see Note 10), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. ### **Ownership** The Company is a wholly-owned subsidiary of Leerink Intermediate Holdings LLC ("LIH"), which is a wholly-owned subsidiary of Leerink Holdings LLC ("Leerink Holdings"). The members of Leerink Holdings include funds managed by The Baupost Group LLC ("Baupost") and Leerink Aggregator LP ("Leerink Aggregator"), an entity which is owned by employees and management of the Company. ### **2. Significant Accounting Policies** ### **Basis of Presentation** The financial statements are presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). {7}------------------------------------------------ #### **Use of Estimates** The preparation of the Company's 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 financial statements and the reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from those estimates. #### **Cash and Cash Equivalents** The Company has defined cash and cash equivalents as cash held at financial institutions and highly liquid investments with original maturities of less than three months that are not held for sale in the ordinary course of business. Cash and cash equivalents held at financial institutions, at times, may exceed the amount insured by the Federal Deposit Insurance Corporation. #### **Receivable from Clients** Receivable from clients consists primarily of corporate finance fees and expense reimbursements charged to the Company's clients. The Company records Receivable from clients, net of any allowance for expected credit losses, when relevant revenue recognition criteria has been achieved, and payment is conditioned on the passage of time. The Company maintains an allowance for expected credit losses to provide coverage for estimated losses from its client receivables. The Company determines the adequacy of the allowance by estimating the probability of loss based on the Company's analysis of historical credit loss experience of its client receivables and by taking into consideration current market conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company has determined that long-term forecasted information is not relevant to its client receivables, which are primarily short-term. The Company updates its average credit loss rates annually and maintains an annual allowance review process to consider current factors that would require an adjustment to the credit loss allowance. In addition, the Company periodically performs a qualitative assessment to monitor risks associated with current and forecasted conditions that may require an adjustment to the expected credit loss rates. #### **Notes Receivable from Employees** Notes receivable from employees represent loans to employees in anticipation of their continued employment in accordance with each specific agreement. Notes may be forgiven at some future date, typically ranging from one to five years, and they provide for interest at a fair market rate. These forgivable notes are amortized over time, and the amortization is included in Employee compensation and benefits within the Statement of Income. Accumulated amortization represents the cumulative amortization on loans outstanding at the balance sheet date. Accumulated amortization in relation to a fully amortized loan is reversed out of the accumulated amortization balance as and when such loan is fully amortized. The Company establishes a bad debt reserve for notes receivable from employees when collection is considered by management to be doubtful, {8}------------------------------------------------ primarily in cases when the employee has left the Company before the note had been fully forgiven. Notes receivable from employees also includes loans to employees that are due back to the Company at a specified future date per the loan agreement and are not forgivable. ## **Securities** The Company measures its securities at fair value in accordance with Accounting Standards Codification ("ASC") Topic 820 – *Fair Value Measurement* ("ASC 820"). ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. It also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The three levels of the fair value hierarchy under ASC 820 are described below: Level 1: Financial assets and liabilities are classified as Level 1 if their value is observable in an active market for identical assets or liabilities. Level 2: Financial assets and liabilities are classified as Level 2 if they are valued using quoted prices for identical instruments in markets that are not active, quoted prices of similar instruments, or for which all significant inputs, other than Level 1, are observable, either directly or indirectly. Level 3: Financial assets and liabilities are classified as Level 3 if their valuation incorporates significant inputs that are unobservable or supported by little or no market activity. Marketable securities are carried at fair value based upon quoted market prices. Securities transactions are recorded on a trade date basis. Changes in unrealized and realized gains and losses on securities are included within Net investment income in the Statement of Income. Certificates of deposit are highly liquid investments with original maturities of greater than three months. {9}------------------------------------------------ ### *Valuation Methodologies* The following are types of financial instruments the Company held as of December 31, 2025, as well as their valuation methodologies: ## *Exchange-traded funds and common stock of publicly-traded companies* Equity securities consists of investments in exchange-traded funds ("ETFs") and common stock of publicly-traded corporations. Equity securities that are not subject to certain sales restrictions are valued based upon the reported quoted market prices and are classified as Level 1 within the fair value hierarchy. Fair value measurements of equity securities of public companies are priced based on quoted market prices less a discount if the securities are subject to certain sales restrictions and are classified as Level 2 within the fair value hierarchy. #### **Furniture, Equipment and Leasehold Improvements** Furniture, equipment, and leasehold improvements are carried at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets ranging from three to seven years for furniture and equipment. Leasehold improvements are amortized over the lesser of the estimated useful life or the remaining lease term, using the straight-line method. Certain internal and external costs incurred as a result of developing or obtaining software for internal use are capitalized and amortized on a straight-line basis over the shorter of the estimated useful life of the software or three years beginning when the software project is complete, and the application is put into production. Furniture, equipment, and leasehold improvements and capitalized costs for developing internal use software are tested for impairment whenever changes in facts or circumstances indicate that the carrying amount of the asset may not be recoverable and it exceeds fair value. #### **Leases** The Company enters into leasing arrangements for certain offices and equipment. The Company determines if an arrangement is, or contains, a lease at its inception and reevaluates the arrangement if the terms are modified. Operating lease right-of-use assets ("ROU assets") represent the right to use an underlying asset for the lease term and operating lease liabilities reflect the obligation to make lease payments arising from the lease. At any given time during the lease term, the operating lease liability represents the present value of the remaining lease payments, and the operating lease ROU asset is measured at the amount of the lease liability, adjusted for rent prepayments, unamortized initial direct costs and lease incentives received. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. Both the operating lease ROU asset and the operating lease liability are reduced to zero at the end of the lease. {10}------------------------------------------------ For leases with an original term of more than twelve months, the Company recognizes a ROU asset and a lease liability. Short-term leases with a term of twelve months or less are not recorded on the Statement of Financial Condition and the related expense is recognized on a straight-line basis over the term of the lease. Lease liabilities are recognized at the commencement date based on the present value of the remaining lease payments over the lease terms, which include any noncancellable lease terms and any renewal periods that the Company is reasonably certain to exercise. A portion of the Company's leases includes an option or options to extend the lease term. As the implicit rates in the Company's leases generally cannot be readily determined, the Company uses estimates of its incremental borrowing rate as the discount rates to determine the lease liabilities. Variable lease payments are expensed as incurred. In order to secure certain office leases, the Company is required to hold standby letters of credit whereby the assets are held in certificates of deposit at a commercial bank and are legally restricted as to withdrawal or usage. The amount of these letters of credit as of December 31, 2025 is \$5,637,864 and is included in Other assets in the Statement of Financial Condition. ### **Payable to Broker-Dealers** Payable to broker-dealers includes amounts payable to other broker-dealers arising from unsettled equity underwriting transactions whereby the Company acted as the lead underwriter for the transaction. Such amounts are typically settled within ninety days following the closing of a corporate finance transaction. #### **Share-Based Compensation** Share-based compensation is recorded based upon the fair value of the share-based payment as of the grant date. For awards that vest upon achievement of only a service condition, the fair value as of the grant date is recognized as compensation expense on a straight-line basis over the period during which an employee is required to provide service in exchange for the award, referred to as the requisite service period (usually the vesting period). For awards that vest upon the achievement of only a performance condition, the fair value as of the grant date is recognized as compensation expense if it is probable that the performance condition will be achieved. No compensation cost is recognized for equity instruments for which employees do not render the requisite service. If vesting is based solely on one or more service, or performance conditions, any previously recognized compensation cost is reversed if the award does not vest (that is, the requisite service is not rendered, or the performance condition may not be achieved). This would include instances when previously issued awards are forfeited by the employee. Costs not paid to LIH or Leerink Holdings in exchange for the awards are recorded as capital contributions. {11}------------------------------------------------ #### **Guarantees** In the normal course of business, the Company indemnifies and guarantees certain service providers, such as clearing and custody agents, against specified potential losses in connection with their acting as an agent of, or providing services to, the Company or its affiliates. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, there are no claims currently pending for which indemnification could be sought and, accordingly, the Company has not recorded any contingent liability in the financial statements for these indemnifications. #### **Income Taxes** The Company is a single-member limited liability company treated as a disregarded entity for income tax purposes. With the exception of certain state and local taxes assessed at the entity level, the Company does not recognize income taxes in its financial statements as the Company's taxable income and expenses are included in the federal and applicable state and local income tax returns filed by Leerink Holdings, which is treated as a partnership for federal income tax purposes and is not liable for federal, state or local income taxes. #### **Accounting Standards to be Adopted in Future Periods** *Expenses*. In November 2024, the Financial Accounting Standards Board ("FASB") issued ASU No. 2024-03 ("ASU 2024-03"), *Disaggregation of Income Statement Expenses*. The guidance primarily will require enhanced disclosures about certain types of expenses. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027 and may be applied either on a prospective or retrospective basis. The Company is evaluating the impact of the standard on its disclosures. *Credit Losses*. In July 2025, the FASB issued ASU No. 2025-05 ("ASU 2025-05"), *Financial Instruments–Credit Losses*. The guidance provides an optional practical expedient when applying the guidance related to the estimation of expected credit losses for current accounts receivable and current contract assets resulting from transactions arising from contracts with customers. The amendments in ASU 2025-05 are effective for fiscal years beginning after December 15, 2025, and interim reporting periods, with early adoption permitted. The Company is evaluating the impact of the standard on its financial statements. *Internal-Use Software*. In September 2025, the FASB issued ASU No. 2025-06 ("ASU 2025-06"), *Intangibles–Goodwill and Other–Internal-Use Software*. The guidance modernizes and clarifies the threshold for when an entity is required to start capitalizing software costs and is based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in ASU 2025-06 are effective for fiscal years beginning after December {12}------------------------------------------------ 15, 2027, and interim reporting periods, with early adoption permitted. The Company is evaluating the impact of the standard on its financial statements. ## **3. Significant Risk Factors** In the normal course of business, the Company enters into transactions in various financial instruments. The Company's financial instruments are subject to, but are not limited to, the following risks: #### *Market risk* The Company's revenue is subject to substantial fluctuations due to a variety of factors that cannot be predicted with great certainty, including the overall condition of the economy and the securities markets. Fluctuations also occur due to the change in the fair value of the marketable securities owned by the Company. As a result, revenue and net income may vary significantly from yearto-year. #### *Credit risk* The Company is engaged in various trading and brokerage activities in which counterparties primarily include broker-dealers, banks and investment companies. Credit risk represents the potential loss that the Company would incur if the counterparties failed to perform pursuant to the terms of their obligations to the Company. The Company minimizes its exposure to credit risk by conducting transactions with established and reputable financial institutions. Counterparty exposure is monitored on a regular basis. ### *Operational risk* Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The Company outsources a portion of its critical business functions to third-party firms. Accordingly, the Company negotiates its agreements with these firms with attention focused not only on the delivery of core services but also on the safeguards afforded by back-up systems and disaster recovery capabilities. #### *Cyber-security risk* Cyber-security risk is the risk that the Company's computer systems, software and networks may be vulnerable to unauthorized access, computer viruses or other malicious code and other events that could have a security impact. To mitigate the risks related to cyber-attacks on the Company's critical data, the Company takes protective measures and devotes significant resources to maintaining and upgrading its systems and networks. Such measures include intrusion and detection prevention systems, monitoring firewalls to safeguard critical business applications, monitoring third parties that the Company does business with and employee training. {13}------------------------------------------------ #### **4. Receivable from and Deposit with Clearing Organization** Receivable from and deposit with clearing organization is comprised of amounts receivable or payable for unsettled transactions, presented net, as well as a minimum deposit. As part of the Company's clearing agreement with Pershing LLC, a minimum deposit of \$250,000 is always to be maintained. The minimum deposit balance held at Pershing LLC is subject to withdrawal restrictions such that the Company would be prohibited from doing business with Pershing LLC if the minimum cash balance on deposit is not maintained. ## **5. Notes Receivable from Employees** The Company holds notes receivable from employees that are forgivable over a period of up to five years and accrue interest at prevailing market rates. The outstanding notes receivable balance for the forgivable loans, including accrued interest, was \$12,248,788 as of December 31, 2025 and is included in Notes receivable from employees in the Statement of Financial Condition. In 2024, the Company established a promissory note with an employee. The principal amount of the note was \$3,800,000, with an interest rate of 3.98%, with all outstanding principal and interest due on March 16, 2027. As of December 31, 2025, the outstanding note receivable for this loan, including accrued interest, was \$3,614,553, which is included in Notes receivable from employees in the Statement of Financial Condition. #### **6. Fair Value Measurements** The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis at December 31, 2025: | | Level 1 | Level 2 | Level 3 | Total | |----------------------------------------------------------|--------------|---------|---------|--------------| | Marketable securities owned:
ETFs
and common stock | \$36,185,569 | - | - | \$36,185,569 | | Certificates of deposit | 7,485,702 | - | - | 7,485,702 | | Total assets in the fair value hierarchy | \$43,671,271 | - | - | \$43,671,271 | ### **Fair Value Measurements on a Recurring Basis** The Company did not own any investments classified as Level 2 or 3 as of December 31, 2025. ### *Transfers in and/or out of Levels* During the year ended December 31, 2025, there were no transfers between Level 1, Level 2 and Level 3. The Company's policy is to transfer assets between Levels using the carrying value at the beginning of the year. {14}------------------------------------------------ #### *Fair value of other financial instruments* The fair values of the Company's other assets and liabilities which qualify as financial instruments approximate the carrying amounts presented on the Statement of Financial Condition. ### **7. Furniture, Equipment, and Leasehold Improvements** As of December 31, 2025, furniture, equipment, and leasehold improvements, net, consists of the following: | | Estimated Useful Life | Amount | |--------------------------------------------------------------------------------------|-----------------------|-----------------| | Furniture | Seven Years | \$
8,086,734 | | Machinery, equipment, and software | Three to Five Years | 10,609,064 | | Leasehold improvements | Lease term | 35,903,794 | | Total cost | | 54,599,592 | | Less: accumulated depreciation | | (18,431,727) | | Furniture, equipment, and leasehold improvements, net of
accumulated depreciation | | \$36,167,865 | #### **8. Employee Compensation and Benefits** ## **Defined Contribution Plan** The Company maintains a qualified defined contribution profit sharing plan for essentially all fulltime employees which the Company may contribute to out of available profits. Contributions made by the Company to the defined contribution profit sharing plan are discretionary and are not made to employees who are managing directors. As of December 31, 2025, the liability accrued for the profit-sharing plan contribution was \$339,697. #### **Deferred Compensation Plan** The Company maintains a deferred compensation plan (the "Plan"). This is a non-qualified plan under Internal Revenue Code Section 409A. The Plan requires employees who exceed certain compensation levels to defer a portion of their compensation into the Plan which vests over a period of up to three years. The Plan was unfunded by the Company as of December 31, 2025. #### **Class B-1 Units** Class B-1 Units represent a common ownership class of equity at the Leerink Aggregator level. Leerink Holdings also issued mirroring shares of Class B-1 Units to Leerink Aggregator to {15}------------------------------------------------ effectively provide the owners of the Class B-1 Units with an ownership interest at Leerink Holdings. The repurchase provisions within the Class B-1 Units that have been purchased at the Leerink Aggregator level by employees of the Company create a service period, which implies there is a compensatory element to the purchased Class B-1 Units. The number of Class B-1 Units issued by Leerink Holdings as of December 31, 2025 is as follows: | | Class B-1 Units | |---------------------------------|-----------------| | Balance as of December 31, 2024 | 73,327.63 | | Purchased Units | 5,022.43 | | Forfeited
Units | (867.92) | | Balance as of December 31, 2025 | 77,482.14 | During the year ended December 31, 2025, 4,605.16 Class B-1 Units of Leerink Aggregator were purchased by employees of the Company. ### **Class B-2 Units** Class B-2 Units also represent a common ownership class of equity at the Leerink Aggregator level. Leerink Holdings also issued mirroring shares of Class B-2 Units to Leerink Aggregator to effectively provide the grantees of the Class B-2 Units with an ownership interest at Leerink Holdings. Since the Company is a subsidiary of Leerink Aggregator, and the employees who received the Class B-2 Units are employees of Leerink Partners LLC who provide services to the Company, the Company recognized the compensation expense associated with the issuance of the awards at the Company. All of the Class B-2 Units vested immediately upon issuance. There were no Class B-2 Units purchased, granted or forfeited during the year ended December 31, 2025. The total amount of Class B-2 Units outstanding as of December 31, 2025 is 32,555.47. #### **9. Commitments and Contingencies** #### *Operating leases* The Company leases office space under various non-cancelable operating leases. The leases for the office space require minimum annual rental payments and clauses for operating cost adjustments. ## *New York leases* The Company leases office space on Avenue of the Americas in New York, New York. The lease has an initial term through August 31, 2036. The lease has a fixed stated monthly rent that escalates after year six of the lease to a new fixed amount for the remainder of the term. The lease also provided the Company with a tenant improvement allowance of \$8,863,790. The Company determined that it is the accounting owner of the tenant improvements under the lease. Therefore, the amounts received associated with the tenant improvement allowance were accounted for as a {16}------------------------------------------------ reduction to the lease costs. The Company also leases office space on Park Avenue in New York, New York. The lease has an initial term through October 31, 2031. The lease has a fixed stated monthly rent over the term of the lease. ### *Boston lease* The Company leases office space on State Street in Boston, Massachusetts. The lease has an initial term through April 30, 2031. The lease provides for a six-month abatement of rent after the lease commencement date. Upon the rent commencement date, the lease has a fixed stated monthly rent that escalates every twelve months to a new fixed amount over the term of the lease. ### *Charlotte lease* The Company leases office space on Hawkins Street in Charlotte, North Carolina. The lease has an initial term through May 31, 2030. The lease has a fixed stated monthly rent that escalates annually to a new fixed amount over the term of the lease. #### *San Francisco lease* LIH leases office space on California Street in San Francisco (the "San Francisco Lease"). The lease for the office space requires minimum annual rental payments and clauses for operating cost adjustments. The San Francisco Lease has an initial term through April 30, 2031. LIH has elected to allocate the full expense associated with the San Francisco Lease to the Company. #### *Short-term leases* The Company has leases in Nashville, Chicago, Miami and Santa Monica. Each of these leases has a term of less than one year and are for small offices with immaterial costs. The Company is accounting for these leases as short-term leases. The weighted average remaining lease term and weighted average discount rate of our operating leases are as follows: | Weighted-average remaining term (in years) | 8.8 | |--------------------------------------------|------| | Weighted-average discount rate | 6.5% | {17}------------------------------------------------ The following table presents our undiscounted future cash payments for our operating lease liabilities: | | Year Ending December 31, | |-----------------------------|--------------------------| | 2026 | \$
9,421,603 | | 2027 | 9,400,988 | | 2028 | 9,472,518 | | 2029 | 9,545,674 | | 2030 | 9,447,951 | | Beyond | 32,066,640 | | Total future lease payments | 79,355,374 | | Less: imputed interest | (18,961,402) | | Operating lease liabilities | \$60,393,972 | ### *Other Contingencies* Certain lawsuits and claims arising in the ordinary course of business have been filed or are pending against the Company, and the Company may from time to time be involved in other legal or regulatory proceedings. In accordance with applicable accounting guidance, the Company establishes an accrual and disclosure when required. For all such matters, including expected settlements, when it believes that it is probable that a loss has been incurred, and the amount of the loss is reasonably estimable, an accrual is established. When a loss contingency is not both probable and estimable, no accrual is established. However, the outcome of litigation and other legal and regulatory matters is inherently uncertain, and it is possible that one or more of such matters currently pending or threatened could have an unanticipated material adverse effect on our financial position and/or results of operations. #### **10. Regulatory Net Capital Requirements** The Company is subject to the SEC Uniform Net Capital Rule, SEC Rule 15c3-1 (the "Rule"), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, should not exceed 15 to 1. Under the basic method permitted by the Rule, the Company is required to maintain minimum net capital, as defined, equivalent to the greater of \$1,000,000 or 6-2/3% of aggregate indebtedness. The Company is not permitted to withdraw equity if certain minimum net capital requirements, as defined, are not met. At December 31, 2025, the Company had net capital of \$256,338,735, which was \$243,453,792 in excess of its required net capital of \$12,884,943. The Company's aggregate indebtedness to net capital ratio was 0.75 to 1 at December 31, 2025. In accordance with the exemptive provisions of SEC Rule 15c3-3, especially exemption k(2)(ii), the Company is exempt from computation for determination of reserve requirements and the information relating to the possession or control requirements. {18}------------------------------------------------ #### **11. Revenue from Contracts with Customers** #### *Contract Balances* The timing of revenue recognition may differ from the timing of payment by customers. The Company records a receivable when revenue is recognized prior to payment, and it has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue (contract liability) until the performance obligations are satisfied. The Company had receivables related to revenue from contracts with customers of \$98,576,820 as of December 31, 2025. The Company had no deferred revenue at December 31, 2025 and December 31, 2024. #### *Contract Costs* The Company capitalizes costs to fulfill contracts associated with investment banking engagements 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. At December 31, 2025, the Company's capitalized costs to fulfill a contract were \$978,173 which are recorded in Receivable from clients in the Statement of Financial Condition. ### **12. Related Party Transactions** ## *Due from Affiliate and Due to Affiliate* Amounts receivable and payable between the Company and its affiliates arise primarily from the receipts and payments of cash on behalf of either Leerink Aggregator, Leerink Holdings, Leerink Partners UK Limited ("Leerink UK"), MEDACorp LLC ("MEDACorp"), as well as amounts due to LIH related to rental costs from the San Francisco Lease (Note 9). ### *Other* MEDACorp is a wholly-owned subsidiary of LIH. Amounts receivable from MEDACorp were \$54,938 as of December 31, 2025, which is primarily related to certain payments made on behalf of MEDACorp. These balances are periodically settled. Leerink UK is a wholly-owned subsidiary of LIH. Amounts payable to Leerink UK were \$5,600,061 as of December 31, 2025, which primarily related to mergers and acquisitions advisory services and client development provided by employees of Leerink UK on behalf of the Company. Additionally, an employee of Leerink UK is providing equity research services solely on behalf of the Company. These balances are periodically settled. {19}------------------------------------------------ #### **13. Subsequent Events** Management has evaluated the possibility of subsequent events existing in the Company's financial statements through February 27, 2026, the date the Company's financial statements were issued. Management has determined that there are no material events that would require adjustments to, or additional disclosures in, the Company's financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.