# ENVESTNET SECURITIES, INC. X-17A-5 (2026-03-30) — Broker-dealer annual report - Company: ENVESTNET SECURITIES, INC. - Form: X-17A-5 - Filed: 2026-03-30 - Period: 2025-12-31 - Accession: 0001974486-26-000001 - CIK: 1974486 - File #: 8-71093 - Type: Broker-dealer - Material weakness: No - Auditor: KPMG, LLP - Auditor location: Columbus, OH - Contact: Michael Lugowski - Phone: 312-827-7055 - Signed by: Kathryn Evans (President-ESI) Original filing: https://www.sec.gov/Archives/edgar/data/1974486/000197448626000001/public.pdf --- {0}------------------------------------------------ Doc:uSign Envelope ID. 224F4E47-8D03-4F99-9755-1B01A698A1D4 UNITED STATES SECURmES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL REPORTS FORM X-17A-5 PART Ill | 0MB Number: 32JS.-OID | | |--------------------------|--| | Expires: Nov. 30, 2026 | | | Est)mated aveng,: burden | | | hours per response: 12 | | SEC FIi.£ NUM8£R 8-71093 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 0 1/01 /25 MM/DD/YY AND ENDING 12/31 /25 MM/00/YY A. REGISTRANT IDENTIFICATION NAME oF FIRM: Envestnet Securities, Inc. TYPE OF REGISTRANT (check all applicable boxes): 0 Broker-dealer O Security-based swap dealer D Major security-based swap participant 0 Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINOPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 1000 Chesterbrook Blvd., Suite 250 (No. and Street) Berwyn PA (Oty) (State) PERSON TO CONTACT WITH REGARD TO THIS FILING 19312 (Zip Code) Kathryn Evans 617.692.9737 katie.evans@envestnetcom (Name) (Area Code - Telephone Number) (Email **Address)** B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained In this filing• KPMG LLP (Name - if indiV1dual, state last, first, and middle name) 191 w Nationwide Blvd, Suite 500 Columbus OH 43215 (Address) (City) (State) (Zip Code) 10/20/2003 185 (Date of R 'stratlon with PCAOB if a 'cable PCAOB R 'stntlon Number if a itab1e FOR OFFIOAL USE ONLY • Oaims for exemption from the requirement that the annual reports be covered **by the** rll\$)0rls of an independent public KCpartner, officer, director, or equivalent person, as the case m.ay be, has any proprietary interest in any account classified solely | | | as that of a customer. | | | | | | | | Signature: | | Title: Presodent #### This **filing•• contains (check all applicable boxes):** - ~ (a) Statement of financial condition. - ii (bl Notes to consohdated statement of financial condition. - D (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 (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f} Statement of changes in liabilities subordinated to daims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CfR 240. lSa-2. - D 0) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (k} Computation for determination of security-based swap reserve requirements pursU.ll\t to £xhibit B to 17 CfR 240.lScl-3 or Exhibit A to 17 CfR 240.18a-4, as applicable. - O (I} Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - O (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR - 240.15c3-3(p)(2) or 17 CTR 240. tSa-4, as applicable. - O (o) Reconciliations, induding appropriate explanations, of the FOCUS Report with computation of net capital **or tangible** net worth under 17 GR 240.15c3·1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2. as applicable, and the reserve requirements under 17 OR 240.15c3-3 or 17 CfR 240.18a-4, as applicable, if material differences exist, or a statement that no material **differences** exist. - D (p) summary of financial data for subsidiaries not consolida,ted in the statement of financial condition. - ii (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as **applk.lble.** - D (r) Compliance report in accordance with 17 CFR 240.17.a-S or 17 CfR 240.tSa-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - ~ (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial report or flNndal st.ltements under 17 CFR 240.17a-5, 17CfR 240.1.Sa-7, or 17 OR 240.17a-12, **asappliUble.** - D (v) Independent public accountant's report based on an examioaUon of ceruJn st~ements In the complwnce report undft 17 CFR 240.17 a-5 or 17 O R 240.18.i-7, as appllc.able. - D(w) Independent public .accountant's report based on a review of the eumption ~ under 17 UR 240.17.a-5 or 17 CTR 240.lSa-7, as appllc.able. - 0 (x} Supplemental reports on applying agreed-upon procedu,es, In ac:co,dance with 17 CfR 240. lSCl-1• or 17 Cfll 240.17~ u. as applicable. - 0 (y) Report describing any material lll.ldequacles found to emt or found to~ existed since the d.11• of the **prNCM audit\_ or** a statement that no material inadequacies exist, under 17 CFR 240.17a-12(kt. - D (z) Other: - --------------------------------- 0*To request confidential treatmrnt of* cmaln portions *of this* flllntJ, *SH* 11 altl«l.JJ'o.S(•XJ) *tw* 11 CfltUCUIG-1(dH1). GI applicable. {2}------------------------------------------------ # **ENVESTNET SECURITIES, INC.** (An indirect wholly owned subsidiary of Envestnet, Inc.) Statement of Financial Condition Pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 December 31, 2025 (With Report of Independent Registered Public Accounting Firm Thereon) {3}------------------------------------------------ ## ENVESTNET SECURITIES, INC. #### **Table of Contents** | | Page(s) | |---------------------------------------------------------|---------| | Report of Independent Registered Public Accounting Firm | 1 | | Statement of Financial Condition | 3 | | Notes to Financial Statements | 4 – 8 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) KPMG LLP Suite 500 191 West Nationwide Blvd. Columbus, OH 43215-2568 #### **Report of Independent Registered Public Accounting Firm** To the Member and the Board of Directors Envestnet Securities, Inc.: #### *Opinion on the Financial Statements* We have audited the accompanying statement of financial condition of Envestnet Securities, Inc. (the Company) as of December 31, 2025, the related statements of operations, changes in member's equity, and cash flows for the year then ended, and the related notes (collectively, the financial statements). 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 U.S. generally accepted accounting principles. #### *Basis for Opinion* These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these 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 that our audit provides a reasonable basis for our opinion. #### *Accompanying Supplemental Information* The supplemental information contained in Schedules I, II, and III 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. § {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) 240.17a-5. In our opinion, the supplemental information contained in Schedules I, II, and III 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 2023. Columbus, Ohio March 27, 2026 {6}------------------------------------------------ #### **INTENTIONALLY LEFT BLANK** {7}------------------------------------------------ #### **ENVESTNET SECURITIES,** INC. ## Statement of Financial Condition As of December 3 !, 2025 | Assets | | |----------------------------------------|-----------------| | Cash | \$
1,306,337 | | Prepaid expenses and other assets | 11,852 | | Total assets | \$
1,318,189 | | Liabilities and l\iember's Equity | | | Liabilities | | | Payable to affiliate | \$
547,637 | | Accrued expenses and other liabilities | 17,500 | | Total liabilities | 565,137 | | Member's equity: | | | Additional paid-in capital | 1,455,000 | | Accumulated deficit | (70
1,948) | | Total member's equity | 753,052 | | Total liabilities and member's equity | \$
1,318,189 | *See accompanying notes to .financial statements.* {8}------------------------------------------------ ### **(1) Nature of Business and Significant Accounting Policies** Envestnet Securities, Inc. (the Company or ESI) is a registered broker dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority, Inc. (FINRA). The Company is a wholly-owned subsidiary of Envestnet Security Holdings, LLC, which is a wholly owned subsidiary of Envestnet, Inc. (the Parent). The Company's primary business is to identify and solicit investment advisors, dual registrants, and broker-dealers on behalf of registered clearing and custodian firms. The Company operates solely as a promoter and marketing agent of the clearing and custody firms and only engages with other regulated entities/institutions in the custodial referral. The Company does not hold customer funds or securities. The Company does not claim an exemption under Rule 15c3-3 but instead relies on the "non-covered firm" provision under Footnote 74 of SEC Release No. 34-70073 because the Company does not directly or indirectly receive or hold customer funds or securities. The following is a summary of the Company's significant accounting policies: ### *(a) Basis of Presentation* The Company follows accounting standards established by the Financial Accounting Standards Board (the FASB) to ensure consistent reporting of financial condition. References to Generally Accepted Accounting Principles (GAAP) in these footnotes are to the FASB Accounting Standards Codification, sometimes referred to as the Codification or ASC. #### *(b) Use of Estimates* The preparation of financial statements in conformity with 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. Actual results could differ from those estimates. #### *(c) Cash* Cash includes funds held in bank accounts for firm operating activities. #### *(d) Income Taxes* The Company is included in the consolidated federal and state income tax returns filed by the Parent. Deferred income taxes are provided using the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the change in tax laws and rates as of the date of enactment. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit {9}------------------------------------------------ of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. #### **(2) Fair Value Measurements** Management estimates the fair value of financial instruments recognized in the statement of financial condition (including cash, prepaid expenses and other assets, payable to affiliate, and accrued expenses and other liabilities) to approximate their fair value, as such financial instruments are either reported at fair value or are short-term in nature, bear interest at current market rates or are subject to frequent repricing. ASC 820-10, *Fair Value Measurements* establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. This guidance also addresses fair value of an instrument when the volume and level of activity for an asset or liability have decreased significantly and provides guidance for determining the concurrent weighting of the transaction price relative to fair value indications from other valuation techniques when estimating 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). The three levels of the fair value hierarchy are as follows: - Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; - Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and Level 3 Inputs that are unobservable. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, and liquidity statistics, among other factors. 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 Company assesses its financial instruments on a quarterly basis to determine their appropriate classification within the fair value hierarchy. Transfers between fair value classifications occur when there are changes in pricing observability levels. Transfers of financial instruments among the levels are deemed to occur at the end of the reporting period. There were no transfers between the Company's Level 1, Level 2 and Level 3 classified instruments during the year ended December 31, 2025. The Company did not own any financial assets or liabilities that would be considered Level 3 within the fair value hierarchy as of December 31, 2025 or during the year ended December 31, 2025. #### **(3) Prepaid Expenses and Other Assets** Prepaid expenses and other assets as of December 31, 2025 primarily consists of a deposit with FINRA of \$11,589, which will be used to fund future regulatory charges. {10}------------------------------------------------ #### **(4) Related Party Transactions** The Company has management service agreements with its affiliaties, Envestnet Asset Management, Inc. (EAM) and Envestnet Financial Technologies (EFT), whereby such affiliates provide the Company with various services, including certain compensation and related benefits, occupancy and equipment costs, and telephone and communications costs. As of December 31, 2025, the payable to EAM of \$547,637, which is included in payable to affiliate on the statement of financial condition, represents the payable to ESI's affiliates for cash payments made on behalf of the Company that have been allocated per the management service agreement for which ESI has not yet paid as of December 31, 2025. #### **(5) Income Taxes** In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures. " This update enhances the requirements for income tax disclosures. The Company adopted this standard retrospectively for the year ended December 31, 2025, in accordance with its required effective date. Adoption of this ASU did not have a material impact on the Company's consolidated financial position, as the amendments primarily affect disclosure requirements rather than recognition or measurement. {11}------------------------------------------------ As of December 31, 2025, net deferred tax assets consist of the following: | Future deductible expenses and net operating loss carryforwards:
Net operating loss carryforwards
Future deductible expenses | \$
174,575 | |------------------------------------------------------------------------------------------------------------------------------------|------------------| | Total deferred tax assets | 174,575 | | Future taxable income arising from:
Unrealized gainlloss on FX
Prepaid expenses | | | Total deferred tax liabilities | | | Net deferred tax assets | \$
1745 75 | | Valuation Allowance | \$
(1 74,575) | | Total deferred tax assets after valuation allowance | \$ | The consolidated tax return with the Parent's tax return for the years ended December 31, 2023 and 2024 remain open to examination by the Internal Revenue Service in its entirety. The returns also remain open with respect to state taxing jurisdictions. As of December 31, 2025, the Company has no uncertain tax positions, and accordingly, has not recorded a liability for the payment of interest or penalties. #### **(6) Net Capital Requirements** The Company is a broker-dealer subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital requirement of the greater of \$5,000 or 6- 2/3% of aggregate indebtedness. The rule also requires that the ratio of aggregate indebtedness to net capital under the basic aggregate indebtedness method shall not exceed 15 to 1. As of December 31, 2025, the Company had net capital of \$741,200 which was \$703,524 in excess of its required net capital of \$37,676. As of December 31, 2025, the Company's ratio of aggregate indebtedness to net capital ratio was .76 to 1. ### **(7) Off-Balance Sheet Risk, Commitments and Contingencies, and Concentration of Credit Risk** From time to time, the Company may become involved in legal proceedings arising in the ordinary course of its business. Legal fees and other costs associated with such actions are expensed as incurred. The Company will record a provision for these claims when it is both probable that a liability has been incurred and the amount of the loss, or a range of the potential loss, can be reasonably estimated. These provisions are reviewed regularly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information or events pertaining to a particular case. For litigation matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but if the matter is material, it is subject to disclosures. As of December 31, 2025 there are neither claims nor proceedings against the Company and therefore no accrual is deemed necessary. Further, while any possible range of loss cannot be reasonably estimated at this time, the Company does not believe that the outcome of any of these proceedings, {12}------------------------------------------------ individually or in the aggregate, would, if determined adversely to it, have a material adverse effect on its financial condition or business. The Company's financial instruments that are exposed to concentrations of credit risk consist primarily of cash. The Company maintains its cash accounts with creditworthy financial institutions. The total cash balances of the Company are insured by the Federal Deposit Insurance Corporation (FDIC) up to \$250,000 per depositor, per bank. The Company had cash as of December 31, 2025, that exceeded the balance insured by the FDIC. The Company monitors such credit risk and has not experienced any losses related to such risks. #### **(8) Segment Information** The Company operates under a single operating and reportable segment that constitutes all of the consolidated entity. The description of the types of products and services from which the reportable segment derives its revenues as well as the accounting policies of the reportable segment are the same as those described in Note 1 "Nature of Business and Significant Accounting Policies." The Company has identified the President of the Company as the chief operating decision maker who uses total assets, which is reported on the consolidated Statement of Financial Condition to assess the performance and allocate resources on a consolidated basis. #### **(9) Subsequent Events** The Company has performed an evaluation of subsequent events through March 27, 2026 which is the date the financial statements were available to be issued, and did not identify any subsequent events. {13}------------------------------------------------ ![](_page_13_Picture_0.jpeg) KPMG LLP Suite 500 191 West Nationwide Blvd. Columbus, OH 43215-2568 #### **Report of Independent Registered Public Accounting Firm** To the Board of Directors Envestnet Securities, Inc.: We have reviewed management's statements, included in the accompanying Envestnet Securities, Inc. Exemption Report (the Exemption Report), in which (1) Envestnet Securities, Inc. (the Company) did not claim an exemption under paragraph (k) of 17 C.F.R. § 240.15c3-3 and (2) is filing the Exemption Report pursuant to footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to referral business, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) (together, the exemption provisions). We have also reviewed management's statements, included in the Exemption Report, in which the Company stated that it met the identified exemption provisions throughout the year ended December 31, 2025 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 provisions. 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, pursuant to footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5. ![](_page_13_Picture_7.jpeg) Columbus, Ohio March 27, 2026 {14}------------------------------------------------ ![](_page_14_Picture_1.jpeg) # **EXEMPTION REPORT ENVESTNET SECURITIES, INC.** Envestnet Securities, Inc. (the "Company") Is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F .R. *§* 240.17a-5, •Reports to be made by certain brokers and dealers"). This Exemption Report was prepared *as* required by 17 C.F.R. § 240.17a-S(d)(l) and **(4).** To the best of its knowledge and belief, the Company states the following: - 1. The Company does not claim an exemption under paragraph (k) of 17 C.F.R. § 240.lScJ-3, and - 2. The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R.§ 240.17a-5 because the Company limits its business activities exclusively to receiving referral fees, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of or for customers, and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the year ended December 31, 2025 without exception. Envestnet Securities. Jnc, I, Kathryn Evans, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. §i.~ s By: **.,5\_** President-ESI March 27, 2026 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.