# THOROUGHBRED FINANCIAL SERVICES, LLC X-17A-5 (2026-02-26) — Broker-dealer annual report - Company: THOROUGHBRED FINANCIAL SERVICES, LLC - Form: X-17A-5 - Filed: 2026-02-26 - Period: 2025-12-31 - Accession: 0001091370-26-000003 - CIK: 1091370 - File #: 8-51944 - Type: Broker-dealer - Material weakness: No - Auditor: Cherry Bekaert LLP - Auditor location: Richmond, VA - Contact: Daniel Kelly - Phone: 615-371-0001 - Email: djkelly@thoroughbredfinancial.com - Website: thoroughbredfinancial.com - Signed by: Daniel Kelly (VP Operations) Original filing: https://www.sec.gov/Archives/edgar/data/1091370/000109137026000003/47893TFSAudit.pdf --- {0}------------------------------------------------ ## **THOROUGHBRED FINANCIAL SERVICES, LLC** ### **FINANCIAL STATEMENTS** **December 31, 2025** {1}------------------------------------------------ # **THOROUGHBRED FINANCIAL SERVICES, LLC TABLE OF CONTENTS** | Facing Page – Form X-17A-5, Part III 1– 2 | |--------------------------------------------------------------------------------------------------------------------------------------------------------| | Report of Independent Registered Public Accounting Firm 3 | | Financial Statements:
Statement of Financial Condition 4 | | Statement of Operations 5 | | Statement of Changes in Members' Equity 6 | | Statement of Cash Flows 7 | | Notes to Financial Statements 8–1 | | Supplementary Information:
Computation of Net Capital Under Rule 15c3-1
of the Securities and Exchange Commission 1 | | Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3 1 | | Information Relating to the Possession or Control Requirements Under Rule 15c3-3 1 | | Reconciliation of Net Capital Under Rule 15c3-1 and the Computation for
Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3 1 | | Reconciliation Between the Audited and Unaudited Statements of Financial
Condition with Respect to Methods of Consolidation 1 | | Material Inadequacies Found to Exist or Found to Have Existed Since the
Date of the Previous Audit | | Other Reports:
Report of Independent Registered Public Accounting Firm 2 | | Exemption Report 2 | | Independent Accountant's Agreed-Upon Procedures Report on Schedule of
Assessments and Payments (Form SIPC-7) 2 | | Schedule of Assessment and Payments [Transitional Assessment
Reconciliation (Form SIPC-7) 2-2 | {2}------------------------------------------------ 8-51944 | | | 01/01/2025 | | 12/31/2025 | | |---------------------------|---------------|------------------------|-----|-----------------------------------|--| | | | | | | | | | | | | | | | Thoroughbred | | Financial
Services, | LLC | | | | ■ | | | | | | | | | | | | | | 5110
Maryland
Way, | Suite | 300 | | | | | | | | | | | | Brentwood | | TN | | 37027 | | | | | | | | | | | | | | | | | Daniel
Kelly | | 615-371-0001 | | djkelly@thoroughbredfinancial.com | | | | | | | | | | | | | | | | | | | | | | | | Cherry
Bekaert,
LLP | | | | | | | | | | | | | | 222
Second
Avenue, | Suite
1240 | Nashville | TN | 37201 | | | | | | | | | | 10/20/2003 | | | 677 | | | | | | | | | | | | | | | | | | | | | | | | {3}------------------------------------------------ | Daniel Kelly | swear (or affirm) that, to the best of my knowledge and belief, the | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------| | tinancial report pertaining to the firm of Thoroughbred Financial Services, LLC
12/31 | as of | | 2 025
partner, officer, director, or equivalent person, and be, has any proprietary interest in any account classified solely
as that of a customer. | sistrue and correct. I further swear (or affirm) that neither the company nor any | | STATE
OF
TEMMESSEE
NOTARY
PUBLIC
My Commission Expires
January 23, 2027 | Signature)
Title:
VP Operations | | This filing** contains (check all applicable boxes): | | | a) Statement of financial condition.
@ (b) Notes to consolidated statement of financial condition.
(c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of
comprehensive income (as defined in § 210.1-02 of Regulation S-X).
(d) Statement of cash flows. | | | = (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
[f] Statement of changes in liabilities subordinated to claims of creditors.
= (g) Notes to consolidated financial statements.
[h] Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. | | | (i) Computation of tangible net worth under 17 CFR 240.18a-2.
@ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
[ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or
Exhibit A to 17 CFR 240.18a-4, as applicable. | | | [1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3.
(m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
(n) Information relating to possession or control requirements for security-based swap customers under 17 CFR
240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. | | | □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net
worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17
CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences
exist. | | | (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
(q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.
[r] Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
(s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | | (t) Independent public accountant's report based on an examination of the statement of financial condition.
Independent public accountant's report based on an examination of the financial statements under 17
CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
O (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 | | | CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
@ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17
CFR 240.18a-7, as applicable. | | | x Supplemental reports on applying agreed upon procedures, in accordance with 17 CFR 240.17a-12. | | - - - - {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm** To the Members Thoroughbred Financial Services, LLC Brentwood, Tennessee #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Thoroughbred Financial Services, LLC (the "Company") as of December 31, 2025, the related statements of operations, changes in members' equity, and cash flows for the year then ended, and the related notes. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements 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 statements are 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 statements, 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 statements. 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 statements. We believe our audit provides a reasonable basis for our opinion. #### **Auditor's Report on Supplemental Information** The supplemental information contained in the *Computation of Net Capital and Aggregate Indebtedness under Rule 15c3-1 of the Securities and Exchange Commission* has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. Section 240.17a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2017. Nashville, Tennessee February 24, 2026 Company's Nashville Tennessee {5}------------------------------------------------ ## **THOROUGHBRED FINANCIAL SERVICES, LLC STATEMENT OF FINANCIAL CONDITION December 31, 2025** #### **Assets** | Cash and cash equivalents | \$
4,975,737 | | |--------------------------------------------|-----------------|--| | Deposits with clearing organizations | 50,000 | | | Commissions and other receivables | 151,667 | | | Property and equipment, net of accumulated | | | | depreciation of \$82,109 | 7,322 | | | Lease right of use asset | 410,217 | | | Total assets | \$
5,594,943 | | | Liabilities and Members' Equity | | | | Accounts payable and accrued expenses | \$
981,034 | | | Accrued compensation, taxes, and benefits | 960,489 | | | Current portion of lease liability | 373,401 | | | Total current liabilities | 2,314,924 | | | Lease liability, net of current portion | 64,563 | | | Total liabilities | 2,379,487 | | | Members' equity | 3,215,456 | | | Total liabilities and members' equity | \$
5,594,943 | | {6}------------------------------------------------ ## **THOROUGHBRED FINANCIAL SERVICES, LLC STATEMENT OF OPERATIONS For the Year Ended December 31, 2025** | Revenues: | | |--------------------------------------------|------------------| | Fees and commissions income | \$
28,762,344 | | Other fees and investments | 2,151,728 | | Management fees from related company | 750,000 | | Total revenues | 31,664,072 | | Expenses: | | | Commissions expense | 22,479,930 | | Employee compensation, taxes, and benefits | 4,769,553 | | Management fees | 1,012,108 | | Other | 934,879 | | Trade fees and confirmations | 422,862 | | Facility rent | 383,041 | | Legal and professional | 166,552 | | Total expenses | 30,168,925 | | Net income | \$
1,495,147 | | | | {7}------------------------------------------------ ## **THOROUGHBRED FINANCIAL SERVICES, LLC STATEMENT OF CHANGES IN MEMBERS' EQUITY For the Year Ended December 31, 2025** | | Member
Contributions | | Retained
Earnings | | Total
Members'
Equity | | |-------------------------------|-------------------------|---------|----------------------|-------------|-----------------------------|--| | Balances at December 31, 2024 | \$ | 300,000 | \$ | 2,420,309 | \$
2,720,309 | | | Distributions to members | | - | | (1,000,000) | (1,000,000) | | | Net income | | - | | 1,495,147 | 1,495,147 | | | Balances at December 31, 2025 | \$ | 300,000 | \$ | 2,915,456 | \$
3,215,456 | | {8}------------------------------------------------ ## **THOROUGHBRED FINANCIAL SERVICES, LLC For the Year Ended December 31, 2025 STATEMENT OF CASH FLOWS** | Cash flows from operating activities: | | |-------------------------------------------------------------------|-----------------| | Net income | \$
1,495,147 | | Adjustments to reconcile net income to net cash | | | provided by operating activities: | | | Depreciation and amortization | 1,824 | | Non-cash lease expense | (16,459) | | Changes in operating assets and liabilities: | | | Commissions and other receivables | 22,624 | | Accounts payable and accrued expenses | 78,756 | | Accrued compensation, taxes, and benefits | 208,998 | | Net cash provided by operating activities | 1,790,890 | | Cash flows from financing activities:
Distributions to members | (1,000,000) | | Net cash used in investing activities | (1,000,000) | | Net increase in cash and cash equivalents | 790,890 | | Cash and cash equivalents, beginning of year | 4,184,847 | | Cash and cash equivalents, end of year | \$
4,975,737 | | Supplemental disclosure:
State income taxes paid | \$
94,284 | {9}------------------------------------------------ ## **NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS** Thoroughbred Financial Services, LLC (the "Company") was formed effective June 24, 1999 to operate as a broker-dealer on an introducing firm basis in accordance with the rules and regulations set forth by the Financial Industry Regulatory Authority ("FINRA") and is registered with the Securities and Exchange Commission ("SEC"). The Company also acts as an investment advisor and sells insurance products. It operates as a limited liability company ("LLC"), and its members have limited personal liability for the obligations or debts of the entity. The term of the LLC shall continue until June 24, 2039, unless earlier terminated in accordance with the provisions of the operating agreement. ## **NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### **Basis of Presentation** The accounting policies and reporting practices of the Company conform to the practices in the brokerdealer industry and are in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). #### **Use of Estimates** 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 financial statements and the reported revenues and expenses during the reporting period. Actual results could differ from those estimates. ### **Revenue Recognition** Commission income and related expenses from customers' securities transactions are recorded on a trade date basis. Insurance commissions are recognized at the time the underwriting is completed and the income is reasonably determinable. The Company provides investment advisory services on a daily basis. Fee arrangements for investment advisory services are based on a percentage applied to the customer's assets under management. Fees are received typically monthly and are recognized as revenue at that time as they relate specifically to the services provided in that period. | Revenue from contracts with customers | | |---------------------------------------------|--------------------| | Brokerage commissions and fees | \$ 2,970,439 | | Insurance products | 1,357,606 | | Investment advisory fees | 2
4
,434,299 | | Total revenue from contracts with customers | \$ 28,762,344 | The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). ASC Topic 606 revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. {10}------------------------------------------------ ## **NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. ## **Cash and Cash Equivalents** The Company considers all short-term, highly liquid investments with an original maturity date of three months or less when purchased to be cash and cash equivalents. The Company maintains its cash in financial institutions at balances which, at times may exceed federally insured limits of \$250,000. At December 31, 2025, the Company's uninsured cash balances total \$85,405. #### **Commissions Receivable** Commissions receivable are stated net of an allowance for credit losses. The allowance for credit losses is based on the Company's expectation of the collectability of fees utilizing the Current Expected Credit Losses ("CECL") framework. The Company's expectation is that the credit risk associated with receivables due from client with which it conducts business are that the client will not fulfill its contractual obligation. Management monitors the credit risk of clients and currently there is not a foreseeable expectation of an event or change which could result in a fee receivable being unpaid based on individual facts and circumstances. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. The Company has no allowance for credit losses as of December 31, 2025. While management uses the best information available to make such evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the assumptions used in making the evaluations. #### **Property and Equipment** Expenditures for property and equipment are recorded at cost. Expenditures for ordinary repairs and maintenance are expensed. Depreciation is provided over the estimated useful lives of the respective assets using straight line and accelerated methods. #### **Lease Accounting** The lease standard establishes a right-of-use model that requires a lessee to recognize a right-of-use "ROU" asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition on the income statement. Upon implementation of the lease standard, the Company elected the package of practical expedients permitted under the transition {11}------------------------------------------------ ## **NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification of those leases in place. The Company determines if an arrangement is a lease at inception. The operating lease agreements are primarily for office space and are included within operating lease ROU assets and lease liabilities on the Statement of Financial Condition as of December 31, 2025. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Our variable lease payments consist of non-lease services related to the lease. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets also include any lease payments made and exclude lease incentives, if any. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. ## **Income Taxes** Effective January 1, 2002, the Company has elected to be taxed under the provisions of Subchapter S of the Internal Revenue Code. Under those provisions, the Company does not pay federal corporate income taxes on its taxable income. Instead, its earnings and losses are included in the personal returns of the members and taxed depending on their personal tax situations. The financial statements do not reflect a provision for federal income taxes. The Company follows Financial Accounting Standards Board Accounting Standard Codification guidance clarifying the accounting for the recording of uncertain tax positions. The benefits of uncertain tax positions are recorded in the financial statements only after determining a more-likelythan-not probability that the uncertain tax position will withstand challenge, if any, from taxing authorities. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Company has no accrued tax penalties or interest in the accompanying financial statements. {12}------------------------------------------------ ## **NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** #### **Subsequent Events** The Company evaluated subsequent events through February 24, 2026 when these financial statements were available to be issued. The Company is not aware of any significant events that occurred subsequent to the statement of financial position date but prior to the filing of this report that would have a material impact on the financial statements. ## **NOTE 3 – PROPERTY AND EQUIPMENT** Property and equipment at December 31 consists of the following: | | 2025 | |--------------------------------|--------------| | Furniture and fixtures | \$
77,520 | | Computer equipment | 11,911 | | | 89,431 | | Less: Accumulated depreciation | (82,109) | | | \$
7,322 | Depreciation expense on property and equipment for the year ended December 31, 2025 was \$1,824. ### **NOTE 4 – LEASE RIGHT OF USE** The Company has obligations as a lessee for office spaces and an equipment lease with initial noncancelable terms in excess of one year. The Company classified these leases as operating leases. The Company's leases do not include termination options for either party to the lease or restrictive financial or other covenants. Payment due under the lease contracts include fixed payments plus, for many of the Company's leases, variable payments. The Company's office space leases require it to make variable payments for the Company's proportionate share of the building's property taxes, insurance, and common area maintenance. These variable lease payments are not included in lease payments used to determine lease liability and are recognized as variable costs when incurred. The leases expire at varying dates through March 31, 2029. Amounts reported in the balance sheet as of December 31, 2025 were as follows: Operating Leases: Operating lease Right-of-Use assets \$410,217 Operating lease liabilities \$437,964 {13}------------------------------------------------ ## **NOTE 4 – LEASE RIGHT OF USE (Continued)** Other information related to leases as of December 31, 2025 was as follows: Amounts disclosed for ROU assets obtained in exchange for lease obligations and reductions to ROU assets resulting from reductions to lease obligations include amounts added to or reduced from the carrying amount of ROU assets resulting from new leases, lease modifications or reassessments. The company has elected to utilize the incremental borrowing rate of 4.03% as of December 31, 2025 to calculate lease assets and liabilities. Maturities of non-cancelable operating lease liabilities, included in accrued expenses and other liabilities on the statement of financial conditions were as follows at December 31, 2025: | Maturity Analysis | Operating | |-------------------------------|-----------| | 2026-12 | 383,482 | | 2027-12 | 32,149 | | 2028-12 | 29,220 | | 2029-12 | 7,304 | | 2030-12 | 0 | | Thereafter | 0 | | Total undiscounted cash flows | 452,155 | | Less: present value discount | (14,191) | | Total lease liabilities | 437,964 | Cash paid pursuant to operating lease liabilities was \$411,185 and \$405,267 for the years ended December 31, 2025 and December 31, 2024, respectively, and reported as cash flows used in operating activities in the statement of cash flows. The following table summarizes the weighted average remaining lease term and discount rate for operating leases at December 31, 2025: | Weighted average remaining lease term (years) | December 31, 2025 | |-----------------------------------------------|-------------------| | Operating Leases | 1.46 years | | Weighted average discount rate | December 31, 2025 | | Operating Leases | 4.03% | {14}------------------------------------------------ ## **NOTE 5 – NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, not to exceed 15 to 1. At December 31, 2025, the Company had net capital of \$2,915,685 which was \$2,784,400 in excess of its required net capital of \$131,285. ## **NOTE 6 – RELATED PARTY TRANSACTIONS** The Company earns management fees from a related party in exchange for the use of office space, personnel and administrative services. Management fees income for the year ending December 31, 2025 totaled \$750,000. The Company also earns commissions on investments of an affiliated entity. Commission income recognized under this arrangement totaled \$1,221,386 for the year ending December 31, 2025. ## **NOTE 7 – EMPLOYEE BENEFIT PLAN** The Company maintains a 401(k) plan (the "Plan") for its employees. The Plan covers all employees who have completed minimum service requirements. The Plan provides for employer safe harbor contributions and discretionary profit sharing contributions. Contributions to the Plan by the Company totaled \$333,696 for the year ending December 31, 2025. ## **NOTE 8 – COMMITMENTS AND CONTINGENT LIABILITIES** Liabilities for loss contingencies arising from claims, assessments, litigation, guarantees, and other sources are recorded when it is probable that a liability has been incurred, and the amount of the assessment and /or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. There were no matters existing that required the Company to record or disclose such a liability in the financial statements. ## **NOTE 9 – SEGMENT REPORTING** The Company follows Segment Reporting (Topic 280). The guidance primarily requires all public entities, including those with a single reportable segment to disclose additional information about a reportable segment's expenses and enhanced disclosures about significant segment expenses. The Company operates in a single line of business as a securities broker-dealer, which is comprised of underwriting and financial advisory services. Refer to primary financial statements for further information as the single operating segment is the entire entity of the Company. The Company has identified its President as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 5), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such {15}------------------------------------------------ #### **NOTE 9 – SEGMENT REPORTING (Continued)** as whether to reinvest profits or pay dividends. 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. {16}------------------------------------------------ ## SUPPLEMENTARY INFORMATION {17}------------------------------------------------ ## **THOROUGHBRED FINANCIAL SERVICES, LLC COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION December 31, 2025** ### **Schedule I** | Computation of basic net capital requirement: | | |----------------------------------------------------------------------------------------|-----------------| | Members' equity per financial statement | \$
3,215,456 | | Total nonallowable assets | (7,464) | | Haircuts on securities included in cash equivalents | (292,307) | | Net capital | \$
2,915,685 | | Minimum net capital requirement | \$
131,285 | | Minimum dollar net capital requirement of
reporting broker | \$
50,000 | | Greater of above amounts | \$
131,285 | | Excess net capital | \$
2,784,400 | | Net capital less 120% of minimum dollar
net capital requirement of reporting broker | \$
2,718,758 | | Computation of aggregate indebtedness: | | | Aggregate indebtedness liabilities | \$
1,969,270 | | Percentage of aggregate indebtedness to net capital | 68% | {18}------------------------------------------------ ## **THOROUGHBRED FINANCIAL SERVICES, LLC COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS PURSUANT TO RULE 15c3-3 December 31, 2025** **The Company is exempt from the requirements of Rule 15c3-3 under Section K(2)(ii) of the Rule.** {19}------------------------------------------------ ## **THOROUGHBRED FINANCIAL SERVICES, LLC INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 December 31, 2025** **The Company is exempt from the requirements of Rule 15c3-3 under Section K(2)(ii) of the Rule.** {20}------------------------------------------------ ## **THOROUGHBRED FINANCIAL SERVICES, LLC RECONCILIATION OF NET CAPITAL UNDER RULE 15c3-1 AND THE COMPUTATION FOR DETERMINATION OF THE RESERVE REQUIREMENTS UNDER EXHIBIT A OF RULE 15c3-3 December 31, 2025** **The net capital computed on page 13 and the Company's computation of net capital on its December 31, 2025 Focus Report – Part IIA agree. As a result, no reconciliation is necessary.** {21}------------------------------------------------ ## **THOROUGHBRED FINANCIAL SERVICES, LLC RECONCILIATION BETWEEN THE AUDITED AND UNAUDITED STATEMENTS OF FINANCIAL CONDITION WITH RESPECT TO METHODS OF CONSOLIDATION December 31, 2025** **Not Applicable** {22}------------------------------------------------ ## **THOROUGHBRED FINANCIAL SERVICES, LLC MATERIAL INADEQUACIES FOUND TO EXIST OR FOUND TO HAVE EXISTED SINCE THE DATE OF THE PREVIOUS AUDIT December 31, 2025** **None** {23}------------------------------------------------ ### OTHER REPORTS {24}------------------------------------------------ ![](_page_24_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm** To the Members Thoroughbred Financial Services, LLC Brentwood, Tennessee We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Thoroughbred Financial Services, LLC (the "Company"), identified the following provision of 17 C.F.R. Section15c3-3(k) under which the Company claimed an exemption from 17 C.F.R. §240.15c3-3(k)(2)(i) (the "exemption provision") and (2) the Company stated the Company met the identified exemption provision throughout the most recent fiscal year without exception. The Company's management is responsible for compliance with the exemption provision and its statements. The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the Securities and Exchange Commission ("SEC") Release No. 34-70073 adopting amendments to 17 C.F.R. Section 240.17a-5 are limited to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company. In addition, the Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. The Company's management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about the Company's compliance with the exemption provision. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provision set forth in paragraph(s) (k)(2)(i) of Rule 15c3-3 under the Securities Exchange Act of 1934 and the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. Section 240.17a-5, and related SEC Staff Frequently Asked Questions. 17 C.F.R. Section 240.17a 5, and re Nashville, Tennessee February 24, 2026 Tennessee F b 24 2026 {25}------------------------------------------------ ![](_page_25_Picture_0.jpeg) - - - {26}------------------------------------------------ ![](_page_26_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm on Applying Agreed-Upon Procedures** To the Members Thoroughbred Financial Services, LLC Brentwood, Tennessee We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation ("SIPC") Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation ("Form SIPC-7") for the year ended December 31, 2025. Management of Thoroughbred Financial Services, LLC (the "Company") is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2025. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our associated findings are as follows: - 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2) Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2025 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2025, noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and - 5) Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2025. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. {27}------------------------------------------------ We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the Company and SIPC and is not intended to be and should not be used by anyone other than these specified parties. y y Nashville, Tennessee February 24, 2026 Nashville, Tennessee February 24 2026 {28}------------------------------------------------ | | Determination of "SIPC NET Operating Revenues" and General Assessment for:
MEMBER NAME
THOROUGHBRED FINANCIAL SERVICES LLC | SEC No.
8-51944 | | |---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|------------------| | | For the fiscal period beginning 11/1/2025 and ending 12/31/2025 | | | | 1 | Total Revenue (FOCUS Report - Statement of Income (Loss) - Code 4030) | | \$ 31,664,072.00 | | 2 | Additions: | | | | | a Total revenues from the securities business of subsidiaries (except foreign
subsidiaries) and predecessors not included above. | | | | | b Net loss from principal transactions in securities in trading accounts. | | | | | c Net loss from principal transactions in commodities in trading accounts. | 120 103 | | | | d Interest and dividend expense deducted in determining item 1. | | | | | e Net loss from management of or participation in the underwriting on
distribution of securities, | | | | | f Expenses other than advertising, printing, registration fees and legal fees
deducted in determining net profit management of or participation in
underwriting or distribution of securities. | | | | | g Net loss from securities in investment accounts. | | | | | h Add lines 2a through 2g. This is your total additions. | | \$ 0.00 | | 3 | Add lines 1 and 2h | | \$ 31,664,072.00 | | 4 | Deductions: | | | | | a Revenues from the distribution of shares of a registered open end investment
company or unit investment trust, from the sale of variable annuities, from the
business of insurance, from investment advisory services rendered to
registered investment companies or insurance company separate accounts
and from transactions in security futures products. | \$ 3,065,676.00 | | | | b Revenues from commodity transactions. | | | | | c Commissions, floor brokerage and clearance paid to other SIPC members
in connection with securities transactions. | \$ 692,062.00 | | | | d Reimbursements for postage in connection with proxy solicitations. | | | | | e Net gain from securities in investment accounts. | \$ 8,214.00 | | | | f 100% commissions and markups earned from transactions in (1) certificates
of deposit and (ii) Treasury bills, bankers acceptances or commercial paper
that mature nine months or less from issuance date. | ം പുറത്തിനു ഇവിടെ അത | | | | g Direct expenses of printing, advertising, and legal fees incurred in connection
with other revenue related to the securities business (revenue defined by
Section 16(9)(L) of the Act). | | | | | h Other revenue not related either directly or indirectly to the securities business.
Deductions in excess of \$100,000 require documentation | | | | 5 | a Total Interest and dividend expense (FOCUS Report - Statement
of Income (Loss) - Code 4075 plus line 2d above) but
not in excess of total interest and dividend income | | | | | b 40% of margin interest earned on customers securities accounts
(40% of FOCUS Report - Statement of Income (Loss) -
Code 3960) | | | | | c Enter the greater of line 5a or 5b | \$ 0.00 | | | | | | | {29}------------------------------------------------ | SIPC-7 | | SECURITIES INVESTOR PROTECTION CORPORATION | | | SIPC-7
37 REV 0722 | | |-------------|--|------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|-----------------------------------------|--------------| | 37 REV 0722 | | | | GENERAL ASSESSMENT FORM | | | | | | | | For the fiscal year ended 12/31/2025 | | | | 7 | | Subtract line 6 from line 3. This is your SIPC Net Operating Revenues. | \$ 27,898,120.00 | | | | | 8 | | Multiply line 7 by .0015. This is your General Assessment. | | | | \$ 41,847.00 | | ರ | | | Current overpayment/credit balance, if any | | | 03 \$ 0.00 | | 10 | | | General assessment from last filed 2025 SIPC-6 or 6A | | : \$ 20,029.00 | | | | | d Add lines 11a through 11c | 11 a Overpayment(s) applied on all 2025 SIPC-6 and 6A(s)
b Any other overpayments applied
c All payments applied for 2025 SIPC-6 and 6A(s) | \$ 0.00
\$ 20,029.00 | \$ 0.00
\$ 20,029.00
( | | | 12 | | LESSER of line 10 or 11d. | | | | \$ 20,029.00 | | 13 | | a Amount from line 8
b Amount from line 9
c Amount from line 12 | d Subtract lines 13b and 13c from 13a. This is your assessment balance due. | | \$ 41,847.00
\$ 0.00
\$ 20,029.00 | \$ 21,818.00 | | | | 14 Interest (see instructions) for 0 days late at 20% per annum | | | | \$ 0.00 | | 15 | | | Amount you owe SIPC. Add lines 13d and 14. | | | \$ 21,818.00 | | 16 | | Overpayment/credit carried forward (if applicable) | \$ 0.00 | | | | | SEC No. | | 8-51944 - 3-6-11
MEMBER NAME | Designated Examining Authority
DEA: FINRA
THOROUGHBRED FINANCIAL SERVICES LLC
MAILING ADDRESS 5110 MARYLAND WAY STE 300
BRENTWOOD, TN 37027 | | FYE
Month
2025
Dec | | | | | | UNITED STATES
Subsidiaries (S) and predecessors (P) included in the form (give name and SEC number) | | | | | | | | By checking this box, you certify that you have the authority of the SIPC member to sign this
form; that all information in this form is true and complete; and that on behalf of the SIPC
member, you are authorized, and do hereby consent, to the storage and handling by SIPC of
the data in accordance with SIPC's Privacy Policy | | | | | | | | THOROUGHBRED FINANCIAL SERVICES LLC | | Kayla Downing | | | | | | (Name of SIPC Member) | | (Authorized Signatory) | | | | | | 2/11/2026 | | kdowning@thoroughbredfinancial.com | | | | | | (Date) | | (e-mail address) | | | | | | Completion of the "Authorized Signatory" line will be deemed a signature.
This form and the assessment payment are due 60 days after the end of the fiscal year. | | | | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.