# CONDUENT SECURITIES, LLC X-17A-5 (2026-02-27) — Broker-dealer annual report - Company: CONDUENT SECURITIES, LLC - Form: X-17A-5 - Filed: 2026-02-27 - Period: 2025-12-31 - Accession: 0001325847-26-000002 - CIK: 1325847 - File #: 8-66927 - Type: Broker-dealer - Material weakness: No - Auditor: Nawrocki & Smith, LLP - Auditor location: Hauppauge, NY - Contact: Steven C Bender - Phone: 646.290.7248 - Signed by: Gregory Levine (President) Original filing: https://www.sec.gov/Archives/edgar/data/1325847/000132584726000002/CPUB.pdf --- {0}------------------------------------------------ | 8-66927 | |---------| | 1/1/25
12/31/25 | | | | | | | | |-----------------------------------|------------------|------|----|-------|--|--|--| | | | | | | | | | | | | | | | | | | | Conduent
Securities,
LLC | | | | | | | | | ■ | | | | | | | | | | | | | | | | | | 100
Campus
Drive,
Suite | 200E | | | | | | | | | | | | | | | | | Florham
Park | NJ | | | 07932 | | | | | | | | | | | | | | | | | | | | | | | Steven
C
Bender | 646.290.7248 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nawrocki
&
Smith,
LLP | | | | | | | | | 100
Motor
Parkway,
Suite | Hauppauge
580 | | NY | 11788 | | | | | | | | | | | | | | 3/4/2009 | | 3370 | | | | | | | | | | | | | | | {1}------------------------------------------------ | Gregory Levine | | | |----------------|--------------------------|--| | | Conduent Securities, LLC | | December 31 025 President - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Conduent Securities, LLC: # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Conduent Securities, LLC (the "Company") 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 Conduent Securities, LLC as of 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 Company's management. Our responsibility is to express an opinion on Conduent Securities, LLC'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 U.S. Securities and Exchange Commission ("SEC") 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 Conduent Securities, LLC's auditor since 2022. Hauppauge, New York February 27, 2026 {3}------------------------------------------------ # **CONDUENT SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025** ### **ASSETS** | Cash
Segregated cash
Accrued fees receivable
Due from related party
Prepaid expenses | \$ | 2,746,314
225,000
240,245
196,238
1,000 | |--------------------------------------------------------------------------------------------------|----|-----------------------------------------------------| | TOTAL ASSETS | \$ | 3,408,797 | | LIABILITIES AND MEMBER'S EQUITY | | | | Liabilities: | | | | Accounts payable and accrued expenses | \$ | 351,730 | | Total Liabilities | | 351,730 | | Member's equity | | | | Member's contributions | | 1,411,198 | | Accumulated earnings | | 1,645,869 | | Member's Equity | | 3,057,067 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$ | 3,408,797 | The accompanying notes are an integral part of these financial statements and should be read in conjunction herewith. {4}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS** #### **December 31, 2025** #### **(1) Nature of Business and Summary of Significant Accounting Policies** #### *(a) Organization* Conduent Securities, LLC (the "Company") is a Delaware Limited Liability Company formed on February 11, 2005, and is engaged in the general business of distributing securities of open-end investment companies on a subscription order basis and engaging in non-securities insurance sales. The Company is a broker-dealer registered with the U.S. Securities and Exchange Commission ("SEC") and the Financial Industry Regulatory Authority ("FINRA"). The Company is a wholly-owned subsidiary of Conduent Business Services, LLC (the "Parent"), and an indirect wholly-owned subsidiary of Conduent Incorporated ("CNDT"). The Company's continuing membership application was approved by FINRA on June 21, 2010. This approval allows the Company to expand its business to act as introducing broker and to take custody of customer funds. The Company is registered and has the ability to hold custody of customer funds. For the year ended December 31, 2024, the Company held no customer accounts or funds. #### *(b) Basis in Presentation* The financial statements are presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). #### *(c) Use of Estimates* The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts therein. Actual results may differ from these estimates. #### *(d) Cash* The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. At December 31, 2024, the Company had no such investments. The Company maintains cash balances at multiple financial institutions. At times, the amount on deposit at these institutions may exceed amounts covered by insurance provided by the Federal Deposit Insurance Corporation ("FDIC"). The Company has not experienced any losses related to amounts in excess of FDIC limits. At December 31, 2025, cash balances in excess of FDIC limits was \$2,496,314. #### *(e) Segregated Cash* Segregated cash at December 31, 2025, is held in a reserve bank account. {5}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS** *(continued)* #### *(f) Revenue Recognition* **Commissions:** Commissions are from 12b-1 fees and non-securities insurance commissions. The Company enters into contracts with mutual funds and other asset management platforms. Fees are calculated as a percentage of the total value of the customers' funds. 12b-1 and other asset-based fees are recognized in the period that they are realized since the revenue cannot be accurately predicted at the time the policy becomes effective. The revenue is calculated as a fixed percentage of the value of the shares, and is received on an ongoing periodic basis so long as the investor remains invested in the fund. The Company receives non-securities insurance commissions from employee benefit plans. Fee arrangements are based on contractual agreements between the Company and the insurance carrier and can be fixed in nature or a percentage of the premium. The performance obligation for receiving these commissions is satisfied at the execution of the insurance product, since there is no further obligation required by the Company. Significant judgement is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the related agreement; and whether constraints on variable consideration should be applied due to uncertain future events. #### *(g) Accrued Fees Receivable and Allowance for Doubtful Accounts* Accrued fees receivable are recorded at face amounts less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accrued fees receivable and establishes the allowance for doubtful accounts by calculating and recording a specified percentage of the individual open receivable balances. Specific allowances are also recorded based on historical experience, analysis of past due accounts, client creditworthiness and other currently available information. Accrued fees receivable are recorded net of allowance for doubtful accounts. At December 31, 2025, the allowance for doubtful accounts was \$0. #### *(h) Allocated Expenses* The Company receives some of its services from its Parent, which provides the use of its employees, facilities and utilities. Effective on August 13, 2018, the expense sharing agreement with the Company's Parent was amended to remove the obligation of the Company to reimburse the Parent for allocated expenses. {6}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS** *(continued)* #### *(i) Fair Value of Financial Instruments* The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this information in the notes to financial statements when the fair value is different than the carrying value of those financial instruments. The estimated fair value of accrued fees receivable, prepaid expenses and accrued expenses approximate the carrying amounts due to the relatively short maturity of these instruments. None of these instruments are held for trading purposes. #### *(j) Income Taxes* The Company complies with FASB ASC Topic 740, Income Taxes. The Company is a single member, limited liability company, which is treated as a disregarded entity for federal tax purposes. Generally, disregarded entities are not subject to entity-level federal or state income taxation. The Parent's ultimate owner, CNDT, files consolidated federal, state, and city tax returns, which include the Company. However, the Parent does not allocate any tax expense or tax benefit to the Company. Accordingly, these financial statements do not contain a provision for federal or state income taxes. #### *(k) Current Expected Credit Losses ("CECL")* The Company adopted complies with FASB ASC Topic 326, *Financial Instruments – Credit Losses* ("ASC 326"). ASC 326 impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset. Under the accounting update, the Company could determine there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the customer). The Company identified accrued fees receivables as impacted by the new guidance. The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments, including fees and other receivables utilizing the CECL framework. 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's expectation is that the credit risk associated with accrued fees receivables is not significant. Accordingly, the Company has not provided an allowance for credit losses at December 31, 2025. {7}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS** *(continued)* #### **(2) Regulatory Net Capital Requirements** The Company is subject to the SEC's Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum regulatory net capital and requires that the ratio of aggregate indebtedness to regulatory net capital, both as defined, shall not exceed 15 to 1. The Company had regulatory net capital of \$2,619,584 and a regulatory net capital requirement of \$250,000 as of December 31, 2025. The Company's percentage of aggregate indebtedness to regulatory net capital was 13.43% at December 31, 2025. #### **(3) Related Party Transactions** #### *(a) Expenses* Pursuant to an expense sharing agreement (the "ESA") amended May, 27, 2022, Parent provides support services for the Company, including personnel compensation and office space in the normal course of business. For the year ended December 31, 2025 fees charged by the Parent totaled \$162,072. These expenses have been reflected in the Statement of Income in the appropriate categories. There were no amounts due to the Parent associated with the expense sharing agreement at December 31, 2025. #### *(b) Insurance Contracts* During 2021, certain insurance contracts were assigned from Conduent HR, an affiliate of the Company to the Company. At December 31, 2025 there is a receivable from the Parent of \$196,238 for the processing of certain of the assigned insurance contracts. #### **(4) Fair Value Measurements** ASC 820-10 defines fair value, establishes a framework for measuring fair value, and expands disclosures about assets and liabilities measured at fair value. ASC 820-10 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 market participants at the measurement date and establishes a three-tier hierarchy that is used to identify assets and liabilities measured at fair value. The hierarchy focuses on the inputs used to measure fair value and requires that the lowest level input be used. The three levels defined are as follows: - Level 1 observable inputs that are based upon quoted market prices for identical assets or liabilities within active markets. - Level 2 observable inputs other than Level 1 that are based upon quoted market prices for similar assets or liabilities, based upon quoted prices within inactive markets, or inputs other than quoted market prices that are observable through market data for substantially the full term of the asset or liability. - Level 3 inputs that are unobservable for the particular asset or liability due to little or no market activity and are significant to the fair value of the asset or liability. These inputs reflect assumptions that market participants would use when valuing the particular asset or liability. {8}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS** *(continued)* ### **(5) Concentrations** For the year ended December 31, 2025, the Company had one customer that accounted for approximately 90% of the Company's revenues. #### **(6) Subsequent Events** In preparing the financial statements, the Company has evaluated all subsequent events and transactions for potential recognition or disclosure through February 27, 2026, the date the financial statements were available for issuance, noting no matters requiring disclosure or recognition in the financial statements. #### **(7) Commitments and Contingencies** The Company had no commitments, no contingent liabilities and has not been named as a defendant in any lawsuit at December 31, 2025, or during the year then ended. #### **(8) Segment Reporting** The Company follows Accounting Standards Updated 2023-07 – Segment Reporting (Topic 280); Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which expands reportable segment information by requiring companies to disclose, on an annual and interim basis, significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM") and included within each reported measure of a segment's profit or loss. ASU 2023-07 also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM makes decisions about allocating resources to segments and evaluating performance. The Company conducts its business activities and reports financial results as a single reportable brokerage services segment. The CODM title and position is the President who makes decisions about allocating resources and assessing performance in a manner consistent with the way the Company operates its business and presents their financial results. The nature of business and accounting policies of the brokerage services segment are the same as described in the nature of business and summary of significant accounting policies note. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.