Putnam Variable Trust
02/26/2026 | Press release | Distributed by Public on 02/26/2026 05:21
Annual Report by Investment Company (Form N-CSR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05346
Putnam Variable Trust
(Exact name of registrant as specified in charter)
100 Federal Street, Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Stephen Tate, Vice President
100 Federal Street,
Boston, Massachusetts 02110
Copy to:
Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, NY 10036
James E. Thomas, Esq.
Ropes & Gray LLP
800 Boylston Street
Boston, Massachusetts 02199
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 292-1000
Date of fiscal year end: December 31
Date of reporting period: December 31, 2025
| ITEM 1. | REPORT TO STOCKHOLDERS. |
(a) The Report to Shareholders is filed herewith
|
Putnam VT Small Cap Growth Fund
|
|
|
Class IA
|
Annual Shareholder Report | December 31, 2025
|
This annual shareholder reportcontains important information about Putnam VT Small Cap Growth Fund for the period January 1, 2025, to December 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class IA1
|
$91
|
0.87%
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| 1 | Does not reflect expenses incurred from investing through variable annuity or variable life insurance products. |
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended December 31, 2025, Class IA shares of Putnam VT Small Cap Growth Fund returned 9.07%. The Fund compares its performance to the Russell 2000 Growth Index, which returned 13.01% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
Out-of-benchmark position in Comfort Systems USA, an HVAC company
|
|
↑
|
Out-of-benchmark position in Verona Pharma, a biopharmaceutical company
|
|
↑
|
Overweight position in Kratos Defense & Security Solutions, a technology company
|
|
Top detractors from performance:
|
|
|
↓
|
Overweight position in Vertex, a provider of tax compliance software and services
|
|
↓
|
Out-of-benchmark position in Bellring Brands, a provider of nutrition products
|
|
↓
|
Underweight exposure to Bloom Energy, a clean energy company
|
| Putnam VT Small Cap Growth Fund | PAGE 1 | 38948-ATSIA-0226 |
HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?
The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
VALUE OF A $10,000 INVESTMENT - Class IA 12/31/2015 - 12/31/2025
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2025
|
1 Year
|
5 Year
|
10 Year
|
|
|
Class IA
|
9.07
|
6.45
|
11.72
|
|
Russell 3000 Index
|
17.15
|
13.15
|
14.29
|
|
Russell 2000 Growth Index
|
13.01
|
3.18
|
9.57
|
Performance does not reflect expenses incurred from investing through variable annuity or variable life insurance products, which if reflected, would reduce performance of the Fund.
Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.
Effective September 17, 2018, the Fund adopted its current investment strategy.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of December 31, 2025)
|
Total Net Assets
|
$37,618,163
|
|
Total Number of Portfolio Holdings
|
99
|
|
Total Management Fee Paid
|
$197,681
|
|
Portfolio Turnover Rate
|
62%
|
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| Putnam VT Small Cap Growth Fund | PAGE 2 | 38948-ATSIA-0226 |
HOW HAS THE FUND CHANGED?
Effective January 15, 2025, the Fund is open for purchases and incoming exchanges only by the categories of investors described in a supplement to the summary prospectus and prospectus dated October 30, 2024.
This is a summary of certain changes to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documentsor upon request at (800) 225-1581or
[email protected].
[email protected].
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| Putnam VT Small Cap Growth Fund | PAGE 3 | 38948-ATSIA-0226 |
|
Putnam VT Small Cap Growth Fund
|
|
|
Class IB
|
Annual Shareholder Report | December 31, 2025
|
This annual shareholder reportcontains important information about Putnam VT Small Cap Growth Fund for the period January 1, 2025, to December 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class IB1
|
$117
|
1.12%
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| 1 | Does not reflect expenses incurred from investing through variable annuity or variable life insurance products. |
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended December 31, 2025, Class IB shares of Putnam VT Small Cap Growth Fund returned 8.80%. The Fund compares its performance to the Russell 2000 Growth Index, which returned 13.01% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
Out-of-benchmark position in Comfort Systems USA, an HVAC company
|
|
↑
|
Out-of-benchmark position in Verona Pharma, a biopharmaceutical company
|
|
↑
|
Overweight position in Kratos Defense & Security Solutions, a technology company
|
|
Top detractors from performance:
|
|
|
↓
|
Overweight position in Vertex, a provider of tax compliance software and services
|
|
↓
|
Out-of-benchmark position in Bellring Brands, a provider of nutrition products
|
|
↓
|
Underweight exposure to Bloom Energy, a clean energy company
|
| Putnam VT Small Cap Growth Fund | PAGE 1 | 38948-ATSIB-0226 |
HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?
The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
VALUE OF A $10,000 INVESTMENT - Class IB 12/31/2015 - 12/31/2025
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2025
|
1 Year
|
5 Year
|
10 Year
|
|
|
Class IB
|
8.80
|
6.18
|
11.45
|
|
Russell 3000 Index
|
17.15
|
13.15
|
14.29
|
|
Russell 2000 Growth Index
|
13.01
|
3.18
|
9.57
|
Performance does not reflect expenses incurred from investing through variable annuity or variable life insurance products, which if reflected, would reduce performance of the Fund.
Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.
Effective September 17, 2018, the Fund adopted its current investment strategy.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of December 31, 2025)
|
Total Net Assets
|
$37,618,163
|
|
Total Number of Portfolio Holdings
|
99
|
|
Total Management Fee Paid
|
$197,681
|
|
Portfolio Turnover Rate
|
62%
|
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| Putnam VT Small Cap Growth Fund | PAGE 2 | 38948-ATSIB-0226 |
HOW HAS THE FUND CHANGED?
Effective January 15, 2025, the Fund is open for purchases and incoming exchanges only by the categories of investors described in a supplement to the summary prospectus and prospectus dated October 30, 2024.
This is a summary of certain changes to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documentsor upon request at (800) 225-1581or
[email protected].
[email protected].
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| Putnam VT Small Cap Growth Fund | PAGE 3 | 38948-ATSIB-0226 |
(b) Not applicable
| ITEM 2. | CODE OF ETHICS. |
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 19(a) (1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
The Board of Trustees of the Registrant has determined that Gregory G. McGreevey and Manoj P. Singh possess the technical attributes identified in Item 3 to Form N-CSR to qualify as "audit committee financial experts," and has designated Gregory G. McGreevey and Manoj P. Singh as the Audit Committee's financial experts. Gregory G. McGreevey and Manoj P. Singh are "independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
(a) Audit Fees. The aggregate fees billed in the last two fiscal years ending December 31, 2024 and December 31, 2025 (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $1,105,519 in December 31, 2024 and $1,138,734 in December 31, 2025.
(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $0 in December 31, 2024 and $0 in December 31, 2025.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $140,446 in December 31, 2024 and $195,135 in December 31, 2025. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.
There were no fees billed for tax services by the Registrant's investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates") during the Reporting Periods that required pre-approval by the Audit Committee.
(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in December 31, 2024 and $0 in December 31, 2025.
There were no other non-audit services rendered by the Auditor to the Service Affiliates requiring pre-approval by the Audit Committee in the Reporting Periods.
(e) Audit Committee's pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.
Pre-Approval Policies of the Audit, Compliance and Risk Committee. The Audit, Compliance and Risk Committee of the Putnam funds has determined that, as a matter of policy, all work performed for the funds by the funds' independent auditors will be pre-approved by the Committee itself and thus will generally not be subject to pre-approval procedures.
The Audit, Compliance and Risk Committee also has adopted a policy to pre-approve the engagement by the fund's investment manager and certain of its affiliates of the fund's independent auditors, even in circumstances where pre-approval is not required by applicable law. Any such requests by the fund's investment manager or certain of its affiliates are typically submitted in writing to the Committee and explain, among other things, the nature of the proposed engagement, the estimated fees, and why this work should be performed by that particular audit firm as opposed to another one. In reviewing such requests, the Committee considers, among other things, whether the provision of such services by the audit firm are compatible with the independence of the audit firm.
(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $864,236 in December 31, 2024 and $1,655,229 in December 31, 2025.
(h) Yes. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence. All services provided by the Auditor to the Registrant or to the Service Affiliates, which were required to be pre-approved, were pre-approved as required.
(i) Not applicable.
(j) Not applicable
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
| (a) | Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR. |
| (b) | Not applicable. |
| ITEM 7. | FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Putnam
VT
Small
Cap
Growth
Fund
Financial
Statements
and
Other
Important
Information
Annual
|
December 31, 2025
Table
of
Contents
franklintempleton.com
Financial
Statements
and
Other
Important
Information-Annual
1
Financial
Highlights
and
Schedule
of
Investments
2
Financial
Statements
8
Notes
to
Financial
Statements
12
Report
of
Independent
Registered
Public
Accounting
Firm
21
Tax
Information
22
Changes
In
and
Disagreements
with
Accountants
23
Results
of
Meeting(s)
of
Shareholders
23
Remuneration
Paid
to
Directors,
Officers
and
Others
23
Board
Approval
of
Management
and
Subadvisory
Agreements
23
Putnam
Variable
Trust
Financial
Highlights
Putnam
VT
Small
Cap
Growth
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
a
Year
Ended
December
31,
2025
2024
2023
2022
2021
Class
IA
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$22.26
$18.00
$14.58
$24.48
$23.26
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.11)
(0.11)
(0.05)
(0.06)
(0.15)
Net
realized
and
unrealized
gains
(losses)
...........
1.81
4.37
3.47
(6.25)
3.22
Total
from
investment
operations
....................
1.70
4.26
3.42
(6.31)
3.07
Less
distributions
from:
Net
investment
income
..........................
(0.13)
-
-
-
-
Net
realized
gains
.............................
(1.41)
-
-
(3.55)
(1.85)
Tax
return
of
capital
............................
-
-
-
(0.04)
-
Total
distributions
...............................
(1.54)
-
-
(3.59)
(1.85)
Net
asset
value,
end
of
year
.......................
$22.42
$22.26
$18.00
$14.58
$24.48
Total
return
c
...................................
9.07%
23.67%
23.46%
(28.11)%
14.18%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.92%
0.93%
0.99%
0.99%
0.85%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.87%
0.88%
0.89%
0.89%
0.85%
Net
investment
(loss)
............................
(0.53)%
(0.54)%
(0.31)%
(0.36)%
(0.65)%
Supplemental
data
Net
assets,
end
of
year
(000's)
.....................
$15,706
$16,929
$14,339
$12,540
$19,208
Portfolio
turnover
rate
............................
62%
61%
58%
58%
53%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
include
fees,
charges
or
expenses
imposed
by
the
variable
annuity
and
life
insurance
contracts
for
which
Putnam
Variable
Trust
serves
as
an
underlying
investment
vehicle.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Variable
Trust
Financial
Highlights
Putnam
VT
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
3
a
Year
Ended
December
31,
2025
2024
2023
2022
2021
Class
IB
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$21.46
$17.40
$14.13
$23.91
$22.81
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.16)
(0.16)
(0.09)
(0.10)
(0.21)
Net
realized
and
unrealized
gains
(losses)
...........
1.74
4.22
3.36
(6.09)
3.16
Total
from
investment
operations
....................
1.58
4.06
3.27
(6.19)
2.95
Less
distributions
from:
Net
investment
income
..........................
(0.08)
-
-
-
-
Net
realized
gains
.............................
(1.41)
-
-
(3.55)
(1.85)
Tax
return
of
capital
............................
-
-
-
(0.04)
-
Total
distributions
...............................
(1.49)
-
-
(3.59)
(1.85)
Net
asset
value,
end
of
year
.......................
$21.55
$21.46
$17.40
$14.13
$23.91
Total
return
c
...................................
8.80%
23.33%
23.14%
(28.30)%
13.92%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.17%
1.18%
1.24%
1.24%
1.10%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
1.12%
1.13%
1.14%
1.14%
1.10%
Net
investment
(loss)
............................
(0.78)%
(0.79)%
(0.56)%
(0.61)%
(0.90)%
Supplemental
data
Net
assets,
end
of
year
(000's)
.....................
$21,912
$17,716
$14,183
$12,600
$19,376
Portfolio
turnover
rate
............................
62%
61%
58%
58%
53%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
include
fees,
charges
or
expenses
imposed
by
the
variable
annuity
and
life
insurance
contracts
for
which
Putnam
Variable
Trust
serves
as
an
underlying
investment
vehicle.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Variable
Trust
Schedule
of
Investments,
December
31,
2025
Putnam
VT
Small
Cap
Growth
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
97.7%
Aerospace
&
Defense
7.5%
a
AeroVironment,
Inc.
.................................
United
States
985
$
238,262
Carpenter
Technology
Corp.
...........................
United
States
2,963
932,871
a
Kratos
Defense
&
Security
Solutions,
Inc.
.................
United
States
7,865
597,032
a
Mercury
Systems,
Inc.
................................
United
States
1,635
119,371
a
Rocket
Lab
Corp.
...................................
United
States
3,770
262,995
VSE
Corp.
........................................
United
States
3,795
655,662
2,806,193
Automobile
Components
1.2%
Patrick
Industries,
Inc.
................................
United
States
4,327
469,177
Banks
2.0%
a
Axos
Financial,
Inc.
..................................
United
States
2,760
237,801
a
Bancorp,
Inc.
(The)
..................................
United
States
7,330
494,922
732,723
Biotechnology
9.4%
a
ADMA
Biologics,
Inc.
.................................
United
States
21,845
398,453
a
Arcus
Biosciences,
Inc.
...............................
United
States
3,700
88,171
a
Ascendis
Pharma
A/S
,
ADR
...........................
Denmark
1,372
292,565
a
Bridgebio
Pharma,
Inc.
...............................
United
States
5,580
426,814
a
CG
oncology,
Inc.
...................................
United
States
1,550
64,356
a
Halozyme
Therapeutics,
Inc.
...........................
United
States
7,625
513,163
a
Insmed,
Inc.
.......................................
United
States
2,175
378,537
a
Kymera
Therapeutics,
Inc.
.............................
United
States
2,865
222,926
a
Madrigal
Pharmaceuticals,
Inc.
.........................
United
States
675
393,079
a
Nuvalent,
Inc.
,
A
....................................
United
States
1,761
177,139
a
Rhythm
Pharmaceuticals,
Inc.
..........................
United
States
3,605
385,879
a
Xenon
Pharmaceuticals,
Inc.
...........................
Canada
4,296
192,547
3,533,629
Broadline
Retail
0.8%
a
Ollie's
Bargain
Outlet
Holdings,
Inc.
......................
United
States
2,745
300,879
Capital
Markets
3.1%
Perella
Weinberg
Partners
,
A
...........................
United
States
10,715
185,369
Piper
Sandler
Cos.
..................................
United
States
1,045
354,997
StepStone
Group,
Inc.
,
A
..............................
United
States
9,935
637,529
1,177,895
Commercial
Services
&
Supplies
0.6%
a
Casella
Waste
Systems,
Inc.
,
A
.........................
United
States
2,271
222,422
Construction
&
Engineering
7.9%
Comfort
Systems
USA,
Inc.
............................
United
States
1,060
989,287
a
Construction
Partners,
Inc.
,
A
..........................
United
States
4,740
514,527
a
Dycom
Industries,
Inc.
................................
United
States
1,465
495,024
a
IES
Holdings,
Inc.
...................................
United
States
1,265
492,110
a
Legence
Corp.
,
A
...................................
United
States
6,131
263,878
a
Sterling
Infrastructure,
Inc.
............................
United
States
660
202,112
2,956,938
Consumer
Finance
2.3%
a
Dave,
Inc.
.........................................
United
States
1,010
223,624
a
Enova
International,
Inc.
..............................
United
States
4,003
629,272
852,896
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
5
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Diversified
Consumer
Services
1.3%
a
Adtalem
Global
Education,
Inc.
.........................
United
States
4,752
$
491,689
Electrical
Equipment
1.4%
a
Bloom
Energy
Corp.
,
A
...............................
United
States
6,180
536,980
Electronic
Equipment,
Instruments
&
Components
5.0%
Advanced
Energy
Industries,
Inc.
.......................
United
States
3,937
824,290
a
Fabrinet
..........................................
Thailand
1,375
626,010
a
Itron,
Inc.
.........................................
United
States
2,520
234,007
a
Mirion
Technologies,
Inc.
,
A
............................
United
States
8,896
208,344
1,892,651
Energy
Equipment
&
Services
1.6%
Archrock,
Inc.
......................................
United
States
14,260
371,045
CES
Energy
Solutions
Corp.
...........................
Canada
26,604
237,828
608,873
Health
Care
Equipment
&
Supplies
2.0%
a
Establishment
Labs
Holdings,
Inc.
.......................
Costa
Rica
1,260
91,829
a
iRhythm
Technologies,
Inc.
............................
United
States
895
158,808
a
Merit
Medical
Systems,
Inc.
............................
United
States
3,470
305,846
a
UFP
Technologies,
Inc.
...............................
United
States
861
191,168
747,651
Health
Care
Providers
&
Services
7.1%
Encompass
Health
Corp.
.............................
United
States
6,755
716,976
Ensign
Group,
Inc.
(The)
..............................
United
States
4,215
734,253
a
GeneDx
Holdings
Corp.
,
A
.............................
United
States
2,865
372,622
a
Guardant
Health,
Inc.
................................
United
States
3,655
373,322
a,b
Hims
&
Hers
Health,
Inc.
..............................
United
States
4,955
160,889
a
RadNet,
Inc.
.......................................
United
States
4,510
321,788
2,679,850
Health
Care
Technology
1.1%
a
Doximity,
Inc.
,
A
....................................
United
States
6,560
290,477
a
Waystar
Holding
Corp.
...............................
United
States
3,728
122,092
412,569
Hotels,
Restaurants
&
Leisure
1.7%
a
Planet
Fitness,
Inc.
,
A
................................
United
States
3,540
383,984
Texas
Roadhouse,
Inc.
,
A
.............................
United
States
1,595
264,770
648,754
Household
Durables
2.0%
a
Cavco
Industries,
Inc.
................................
United
States
345
203,805
Installed
Building
Products,
Inc.
.........................
United
States
2,130
552,501
756,306
Independent
Power
and
Renewable
Electricity
Producers
0.5%
a
Talen
Energy
Corp.
..................................
United
States
505
189,294
Insurance
1.3%
Kinsale
Capital
Group,
Inc.
............................
United
States
540
211,205
a
Skyward
Specialty
Insurance
Group,
Inc.
..................
United
States
5,285
270,116
481,321
IT
Services
1.0%
a,b
Applied
Digital
Corp.
.................................
United
States
7,240
177,525
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
IT
Services
(continued)
a
DigitalOcean
Holdings,
Inc.
............................
United
States
3,885
$
186,946
364,471
Life
Sciences
Tools
&
Services
1.6%
a
Medpace
Holdings,
Inc.
...............................
United
States
1,070
600,966
Machinery
7.5%
a
CECO
Environmental
Corp.
...........................
United
States
2,010
120,299
Crane
Co.
.........................................
United
States
2,480
457,386
Federal
Signal
Corp.
.................................
United
States
4,697
510,047
JBT
Marel
Corp.
....................................
United
States
1,370
206,418
a
RBC
Bearings,
Inc.
..................................
United
States
1,881
843,497
a
SPX
Technologies,
Inc.
...............................
United
States
3,327
665,600
2,803,247
Metals
&
Mining
0.4%
a
Coeur
Mining,
Inc.
...................................
United
States
9,205
164,125
Oil,
Gas
&
Consumable
Fuels
0.8%
a,b
Centrus
Energy
Corp.
,
A
..............................
United
States
775
188,139
a
Energy
Fuels,
Inc.
...................................
United
States
7,530
109,486
297,625
Pharmaceuticals
1.3%
a
Axsome
Therapeutics,
Inc.
............................
United
States
2,325
424,638
a
Tarsus
Pharmaceuticals,
Inc.
...........................
United
States
890
72,873
497,511
Professional
Services
2.9%
a
Huron
Consulting
Group,
Inc.
..........................
United
States
5,200
899,132
a
Parsons
Corp.
......................................
United
States
3,055
188,799
1,087,931
Real
Estate
Management
&
Development
1.5%
Colliers
International
Group,
Inc.
........................
Canada
3,780
555,592
Semiconductors
&
Semiconductor
Equipment
7.3%
a,b
Camtek
Ltd.
.......................................
Israel
3,660
389,223
a
Credo
Technology
Group
Holding
Ltd.
....................
United
States
4,350
625,922
a
FormFactor,
Inc.
....................................
United
States
2,400
133,872
a
Nova
Ltd.
.........................................
Israel
2,965
973,676
a
Rambus,
Inc.
......................................
United
States
3,300
303,237
a
SiTime
Corp.
.......................................
United
States
950
335,530
2,761,460
Software
7.1%
a
ACI
Worldwide,
Inc.
..................................
United
States
13,160
629,180
a
Agilysys,
Inc.
.......................................
United
States
3,620
430,201
a
Commvault
Systems,
Inc.
.............................
United
States
1,930
241,945
a
Descartes
Systems
Group,
Inc.
(The)
....................
Canada
6,280
550,505
InterDigital,
Inc.
.....................................
United
States
664
211,404
Pegasystems,
Inc.
...................................
United
States
8,715
520,460
a
Vertex,
Inc.
,
A
......................................
United
States
4,089
81,657
2,665,352
Specialty
Retail
3.3%
a
Aritzia,
Inc.
........................................
Canada
7,720
660,043
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
7
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Specialty
Retail
(continued)
a
Boot
Barn
Holdings,
Inc.
..............................
United
States
3,255
$
574,410
1,234,453
Technology
Hardware,
Storage
&
Peripherals
0.8%
a,b
IonQ,
Inc.
.........................................
United
States
6,715
301,302
Trading
Companies
&
Distributors
2.4%
Applied
Industrial
Technologies,
Inc.
.....................
United
States
2,259
580,043
FTAI
Aviation
Ltd.
...................................
United
States
1,690
332,677
912,720
Total
Common
Stocks
(Cost
$
24,906,844
)
....................................
36,745,445
Rights
Rights
0.0%
†
Biotechnology
0.0%
†
a,c
Blueprint
Medicines
Corp.,
CVR
,
12/31/28
.................
United
States
961
442
Total
Rights
(Cost
$
442
)
....................................................
442
Total
Long
Term
Investments
(Cost
$
24,907,286
)
..............................
36,745,887
a
Short
Term
Investments
5.5%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Management
Investment
Companies
2.5%
d,e
Putnam
Short
Term
Investment
Fund
,
Class
P
,
3.967
%
.......
United
States
944,059
944,059
Total
Management
Investment
Companies
(Cost
$
944,059
)
.....................
944,059
f
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
3.0%
Money
Market
Funds
3.0%
d,e
Putnam
Cash
Collateral
Pool,
LLC
,
4.044
%
................
United
States
1,124,149
1,124,149
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$
1,124,149
)
..........................................................
1,124,149
Total
Short
Term
Investments
(Cost
$
2,068,208
)
...............................
2,068,208
a
Total
Investments
(Cost
$
26,975,494
)
103.2
%
.................................
$38,814,095
Other
Assets,
less
Liabilities
(
3.2
)
%
.........................................
(1,195,932)
Net
Assets
100.0%
.........................................................
$37,618,163
a
a
a
See
Abbreviations
on
page
20
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
December
31,
2025.
See
Note
1(c).
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
8
regarding
fair
value
measurements.
d
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
f
See
Note
1(c)
regarding
securities
on
loan.
Putnam
Variable
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
December
31,
2025
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
Putnam
VT
Small
Cap
Growth
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$24,907,286
Cost
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
2,068,208
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$
1,087,060
)
..................................
$36,745,887
Value
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
2,068,208
Cash
....................................................................................
843
Receivables:
Capital
shares
sold
........................................................................
8,471
Dividends
...............................................................................
6,263
Prepaid
expenses
..........................................................................
11,261
Total
assets
..........................................................................
38,840,933
Liabilities:
Payables:
Capital
shares
redeemed
...................................................................
3,185
Management
fees
.........................................................................
6,347
Administrative
fees
........................................................................
308
Distribution
fees
..........................................................................
4,734
Transfer
agent
fees
........................................................................
4,516
Trustees'
fees
and
expenses
.................................................................
19,737
Payable
upon
return
of
securities
loaned
(Note
1
c
)
..................................................
1,124,149
Accrued
expenses
and
other
liabilities
...........................................................
59,794
Total
liabilities
.........................................................................
1,222,770
Net
assets,
at
value
.................................................................
$37,618,163
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$23,725,350
Total
distributable
earnings
(losses)
.............................................................
13,892,813
Net
assets,
at
value
.................................................................
$37,618,163
Putnam
Variable
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
December
31,
2025
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
9
Putnam
VT
Small
Cap
Growth
Fund
Class
IA:
Net
assets,
at
value
.......................................................................
$15,706,301
Shares
outstanding
........................................................................
700,564
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$22.42
Class
IB:
Net
assets,
at
value
.......................................................................
$21,911,862
Shares
outstanding
........................................................................
1,016,793
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$21.55
a
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Putnam
Variable
Trust
Financial
Statements
Statement
of
Operations
for
the
year
ended
December
31,
2025
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
Putnam
VT
Small
Cap
Growth
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$1,081)
Unaffiliated
issuers
........................................................................
$84,880
Non-controlled
affiliates
(Note
3
f
)
.............................................................
29,188
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
(26,091)
Non-controlled
affiliates
(Note
3
f
)
.............................................................
35,434
Total
investment
income
...................................................................
123,411
Expenses:
Management
fees
(Note
3
a
)
...................................................................
214,737
Administrative
fees
(Note
3
b
)
..................................................................
637
Distribution
fees:
(Note
3c
)
Class
IB
................................................................................
48,844
Transfer
agent
fees:
(Note
3d
)
Class
IA
................................................................................
11,188
Class
IB
................................................................................
13,857
Custodian
fees
(Note
4
)
......................................................................
13,254
Reports
to
shareholders
fees
..................................................................
19,806
Professional
fees
...........................................................................
48,885
Trustees'
fees
and
expenses
(Note
3
e
)
...........................................................
1,145
Other
....................................................................................
6,018
Total
expenses
.........................................................................
378,371
Expense
reductions
(Note
4
)
...............................................................
(1,083)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(17,056)
Net
expenses
.........................................................................
360,232
Net
investment
income
(loss)
............................................................
(236,821)
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
2,584,670
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
681,540
Net
realized
and
unrealized
gain
(loss)
............................................................
3,266,210
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$3,029,389
Putnam
Variable
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
11
Putnam
VT
Small
Cap
Growth
Fund
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
............................................
$(236,821)
$(214,402)
Net
realized
gain
(loss)
.................................................
2,584,670
4,928,941
Net
change
in
unrealized
appreciation
(depreciation)
...........................
681,540
1,722,588
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
3,029,389
6,437,127
Distributions
to
shareholders:
Class
IA
............................................................
(1,116,442)
-
Class
IB
............................................................
(1,286,626)
-
Total
distributions
to
shareholders
..........................................
(2,403,068)
-
Capital
share
transactions:
(Note
2
)
Class
IA
............................................................
(1,503,461)
(731,036)
Class
IB
............................................................
3,850,707
416,167
Total
capital
share
transactions
............................................
2,347,246
(314,869)
Net
increase
(decrease)
in
net
assets
...................................
2,973,567
6,122,258
Net
assets:
Beginning
of
year
.......................................................
34,644,596
28,522,338
End
of
year
...........................................................
$37,618,163
$34,644,596
Putnam
Variable
Trust
Notes
to
Financial
Statements
Putnam
VT
Small
Cap
Growth
Fund
12
franklintempleton.com
Annual
Report
1.
Organization
and
Significant
Accounting
Policies
Putnam
Variable
Trust
(Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of twenty separate
funds.
The Trust
follows the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
-
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
Putnam
VT
Small
Cap
Growth
Fund
(Fund)
is
included
in
this
report.
Shares
of
the
Fund
are
generally
sold
only
to
insurance
company
separate
accounts
to
fund
the
benefits
of
variable
life
insurance
policies
or
variable
annuity
contracts. At
December
31,
2025,
49.3%
of
the
Fund's
shares
were
held
through
one
insurance
company.
Investment
activities
of
these
insurance
company
separate
accounts
could
have
a
material
impact
on
the
Fund.
The
Fund
offers two classes
of
shares:
Class
IA
and
Class
IB.
Each
class
of
shares
may
differ
by
its
distribution
fees,
voting
rights
on
matters
affecting
a
single
class
and
its
exchange
privilege.
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the Trust's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund's
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund's
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
Putnam
Variable
Trust
Notes
to
Financial
Statements
13
franklintempleton.com
Annual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
the
Putnam
Cash
Collateral
Pool,
LLC,
a
limited
liability
company,
an
affiliate
of
Putnam
Management. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statement of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
Securities
on
loan
outstanding
at
period
end,
if
any,
are
listed
in
the
Fund's
Schedule
of
Investments.
d.
Income
and
Deferred
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and if
applicable,
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
14
franklintempleton.com
Annual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
The Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
December
31,
2025, the Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
The
Fund's
federal
and
state
income
and
federal
excise
tax
returns
for
the
prior
three
fiscal
years
are
subject
to
examination
by
the
Internal
Revenue
Service
and
state
departments
of
revenue.
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Estimated
expenses
are
accrued
daily.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the Trust's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the Trust against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the Trust,
on
behalf
of
the
Fund, enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Trust
that
have
not
yet
occurred.
Currently,
the Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Income
and
Deferred
Taxes
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
15
franklintempleton.com
Annual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
2.
Shares
of
Beneficial
Interest
At
December
31,
2025,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and trustees
of
the Fund are
also
officers
and/or directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
Putnam
Management
a
management
fee
(based
on
the
Fund's
average
net
assets
and
computed
and
paid
monthly)
at
annual
rates
that
may
vary
based
on
the
average
of
the
aggregate
net
assets
of
all
open-end
mutual
funds
sponsored
by
Putnam
Management
(including
open-end
funds
managed
by
affiliates
of
Putnam
Management
that
have
been
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Shares
Amount
Shares
Amount
Class
IA
Shares:
Shares
sold
...................................
46,304
$980,886
72,394
$1,558,478
Shares
issued
in
reinvestment
of
distributions
..........
60,348
1,116,442
-
-
Shares
redeemed
...............................
(166,577)
(3,600,789)
(108,681)
(2,289,514)
Net
increase
(decrease)
..........................
(59,925)
$(1,503,461)
(36,287)
$(731,036)
Class
IB
Shares:
Shares
sold
...................................
241,897
$5,055,785
118,673
$2,608,304
Shares
issued
in
reinvestment
of
distributions
..........
72,202
1,286,626
-
-
Shares
redeemed
...............................
(122,761)
(2,491,704)
(108,553)
(2,192,137)
Net
increase
(decrease)
..........................
191,338
$3,850,707
10,120
$416,167
Subsidiary
Affiliation
Putnam
Investment
Management,
LLC
(Putnam
Management)
Investment
manager
Franklin
Advisers,
Inc.
(Advisers)
Subadvisor
Franklin
Templeton
Investment
Management
Limited
(FTIML)
Subadvisor
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Putnam
Investor
Services,
Inc.
(PSERV)
Transfer
agent
Putnam
Variable
Trust
Notes
to
Financial
Statements
16
franklintempleton.com
Annual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
deemed
to
be
sponsored
by
Putnam
Management
for
this
purpose)
(excluding
net
assets
of
such
funds
that
are
invested
in,
or
that
are
invested
in
by,
other
such
funds
to
the
extent
necessary
to
avoid
"double
counting"
of
those
assets).
Such
annual
rates
may
vary
as
follows:
For
the
year
ended
December
31,
2025,
the
gross
effective
investment
management
fee
rate
was 0.601%
of
the
Fund's
average daily
net
assets.
Putnam
Management
retained
Advisers
as
subadvisor
for
the
Fund.
Pursuant
to
the
agreement,
Advisers
provides
certain
advisory
and
related
services
to
the
Fund.
Putnam
Management
pays
a
monthly
fee
to
Advisers
based
on
the
costs
of
Advisers
in
providing
these
services
to
the
Fund,
which
may
include
a
mark-up
not
to
exceed
15%
over
such
costs.
Under
a
subadvisory
agreement,
FTIML
provides
subadvisory
services
to
the
Fund.
The
subadvisory
fee
is
paid by Putnam
Management
based
on
the
average
net
assets
managed
by
FTIML,
and
is
not
an
additional
expense
of
the
Fund.
b.
Administrative
Fees
Under
an
agreement
with
Putnam
Management,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by Putnam
Management
based
on
the Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
The
Fund
reimburses
Putnam
Management
an
allocated
amount
for
the
compensation
and
related
expenses
of
certain
officers
of
the
Fund
and
their
staff
who
provide
administrative
services
to
the
Fund.
The
aggregate
amount
of
all
such
reimbursements
is
determined
annually
by
the
Trustees.
c.
Distribution
Fees
The
Fund
has
adopted
distribution
plans
(the
Plans)
with
respect
to
the
following
share
classes
pursuant
to
Rule
12b-1
under
the
1940
Act.
The
purpose
of
the
Plans
is
to
compensate
Distributors
for
services
provided
and
expenses
incurred
in
distributing
shares
of
the
Fund.
The
Plans
provide
payments
by
the
Fund
to
Distributors
at
an
annual
rate
of
up
to
the
following
amounts
(Maximum
%)
of
the
average
net
assets
attributable
to
each
class.
The
Trustees
have
approved
payment
by
the
Fund
at
the
following
annual
rate
(Approved
%)
of
the
average
net
assets
attributable
to
each
class.
d.
Transfer
Agent
Fees
PSERV,
an
affiliate
of
Putnam
Management,
provides
investor
servicing
agent
functions
to
the
Fund.
PSERV
was
paid
a
monthly
fee
for
investor
servicing
at
an
annual
rate
of
0.07%
of
the
Fund's
average
daily
net
assets.
Annualized
Fee
Rate
Net
Assets
0.780%
of
the
first
$5
billion,
0.730%
of
the
next
$5
billion,
0.680%
of
the
next
$10
billion,
0.630%
of
the
next
$10
billion,
0.580%
of
the
next
$50
billion,
0.560%
of
the
next
$50
billion,
0.550%
of
the
next
$100
billion
and
0.545%
of
any
excess
thereafter.
Maximum
%
Approved
%
Class
IB
..................................................................
0.35%
0.25%
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
17
franklintempleton.com
Annual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
e.
Trustee
Fees
The
Fund
has
adopted
a
Trustee
Fee
Deferral
Plan
(the
Deferral
Plan)
which
allows
the
Trustees to
defer
the
receipt
of
all
or
a
portion
of
Trustees'
fees
payable
from
July
1,
1995
through
December
31,
2023.
The
deferred
fees
remain
invested
in
certain
Putnam
funds
until
distribution
in
accordance
with
the
Deferral
Plan.
The
Fund
has
adopted
an
unfunded
noncontributory
defined
benefit
pension
plan
(the
Pension
Plan)
covering
all
Trustees
of
the
Fund
who
have
served
as
a
Trustee
for
at
least
five
years
and
were
first
elected
prior
to
2004.
Benefits
under
the
Pension
Plan
are
equal
to
50%
of
the
Trustee's
average
annual
attendance
and
retainer
fees
for
the
three
years
ended
December
31,
2005.
The
retirement
benefit
is
payable
during
a
Trustee's
lifetime,
beginning
the
year
following
retirement,
for
the
number
of
years
of
service
through
December
31,
2006.
Pension
expense
for
the
Fund
is
included
in
the
Trustees' fees
and
expenses
in
the
Statement
of
Operations.
Accrued
pension
liability
is
included
in
Payable
for
Trustees' fees
and
expenses
in
the
Statement
of
Assets
and
Liabilities.
The
Trustees
have
terminated
the
Pension
Plan
with
respect
to
any
Trustee
first
elected
after
2003.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
"Controlled
Affiliate"
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund's
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees,
if
applicable, paid
directly
or
indirectly
by
each
affiliate.
During
the
year
ended
December
31,
2025,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
g.
Waiver
and
Expense
Reimbursements
Putnam
Management has
contractually
agreed,
through
April
30,
2027,
to
waive
fees
and/or
reimburse
the
Fund's
expenses
to
the
extent
necessary
to
limit
the
cumulative
expenses
of
the
Fund,
exclusive
of
brokerage,
interest,
taxes,
investment-related
expenses,
extraordinary
expenses,
acquired
fund
fees
and
expenses
and
payments
under
the
Fund's
investor
servicing
contract,
investment
management
contract
and
distribution
plans,
on
a
fiscal
year-to-date
basis
to
an
annual
rate
of
0.20%
of
the
Fund's
average
net
assets
over
such
fiscal
year-to-date
period.
aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a
a
a
a
a
a
a
a
Putnam
VT
Small
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Putnam
Short
Term
Investment
Fund,
Class
P,
3.967%
......
$314,756
$8,406,638
$(7,777,335)
$-
$-
$944,059
944,059
$29,188
Non-Controlled
Affiliates
Income
from
securities
loaned
Putnam
Cash
Collateral
Pool,
LLC,
4.044%
.............
$356,305
$14,911,105
$(14,143,261)
$-
$-
$1,124,149
1,124,149
$35,434
Total
Affiliated
Securities
...
$671,061
$23,317,743
$(21,920,596)
$-
$-
$2,068,208
$64,622
3.
Transactions
with
Affiliates
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
18
franklintempleton.com
Annual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
4.
Expense
Offset
Arrangement
The Fund has entered
into arrangements
with PSERV
and
its
custodian whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
transfer
agent
and
custodian
fees,
respectively.
During
the
year
ended
December
31,
2025,
the
fees
were
reduced
as
noted
in
the
Statement
of
Operations. Effective
April
14,
2025,
earned
credits
on
custodian
fees,
if
any,
are
recognized
as
income.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
During
the
year
ended
December
31,
2025,
the
Fund
utilized
$51,729
of
capital
loss
carryforwards.
The
tax
character
of
distributions
paid
during
the
years
ended
December
31,
2025
and
2024,
was
as
follows:
At
December
31,
2025,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
and
undistributed
long
term
capital
gains for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
wash
sales,
passive
foreign
investment
company
shares
and
net
operating
losses.
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
year
ended
December
31,
2025,
aggregated
$21,912,357 and
$22,255,778,
respectively.
At
December
31,
2025,
in
connection
with
securities
lending
transactions,
the
Fund
loaned
equity
investments
and
received
$1,124,149
of
cash
collateral.
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statement
of
Assets
and
Liabilities.
The
agreements
can
be
terminated
at
any
time.
7.
Credit
Facility
Effective
January
31,
2025,
the
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers)
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.995
billion
(Global
Credit
Facility)
which
matured
on
January
30,
2026.
This
Global
Credit
Facility
provides
a
source
of
funds
to
2025
2024
Distributions
paid
from:
Ordinary
income
..........................................................
$157,351
-
Long
term
capital
gain
......................................................
2,245,717
-
$2,403,068
-
Cost
of
investments
..........................................................................
$27,186,476
Unrealized
appreciation
........................................................................
$12,685,730
Unrealized
depreciation
........................................................................
(1,058,111)
Net
unrealized
appreciation
(depreciation)
..........................................................
$11,627,619
Distributable
earnings:
Undistributed
long
term
capital
gains
..............................................................
$2,265,195
Putnam
Variable
Trust
Notes
to
Financial
Statements
19
franklintempleton.com
Annual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Effective
January
30,
2026,
the
Borrowers
renewed
the
Global
Credit
Facility
for
a
one-year
term,
maturing
January
29,
2027,
for
a
total
of
$2.995
billion.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
reporting
period,
the
Fund
did
not
use
the
Global
Credit
Facility.
Prior
to
January
31,
2025,
the
Fund
participated,
along
with
other
Putnam
funds,
in
a
$320
million
syndicated
unsecured
committed
line
of
credit,
provided
by
State
Street
($160
million)
and
JPMorgan
($160
million),
and
a
$235.5
million
unsecured
uncommitted
line
of
credit,
provided
by
State
Street.
Borrowings
may
have
been
made
for
temporary
or
emergency
purposes,
including
the
funding
of
shareholder
redemption
requests
and
trade
settlements.
Interest
was
charged
to
the
Fund
based
on
the
Fund's
borrowings.
A
closing
fee
equal
to
0.04%
of
the
committed
line
of
credit
and
0.04%
of
the
uncommitted
line
of
credit
was
paid
by
the
participating
funds
and
a
$75,000
fee
was
paid
by
the
participating
funds
to
State
Street
as
agent
of
the
syndicated
committed
line
of
credit.
In
addition,
a
commitment
fee
of
0.21%
per
annum
on
any
unutilized
portion
of
the
committed
line
of
credit
was
allocated
to
the
participating
funds
based
on
their
relative
net
assets
and
paid
quarterly.
During
the
reporting
period,
the
Fund
had
no
borrowings
against
these
arrangements.
8.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
-
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
-
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
-
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
December
31,
2025,
in
valuing
the
Fund's assets carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Putnam
VT
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
.........................
$
36,745,445
$
-
$
-
$
36,745,445
Rights
.................................
-
-
442
442
Short
Term
Investments
...................
944,059
1,124,149
-
2,068,208
Total
Investments
in
Securities
...........
$37,689,504
$1,124,149
$442
$38,814,095
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
7.
Credit
Facility
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
20
franklintempleton.com
Annual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the year.
9.
Operating
Segments
The Fund operates
as
a
single
operating
segment,
which
is
an
investment
portfolio.
A
management
group
of
the
Fund's
Investment
manager serves
as
the
Chief
Operating
Decision
Maker
("CODM")
and
is
responsible
for
evaluating
the
Fund's
operating
results
and
allocating
resources
in
accordance
with
the
Fund's
investment
strategy.
Internal
reporting
provided
to
the
CODM
aligns
with
the
accounting
policies
and
measurement
principles
used
in
the financial
statements.
For
information
regarding
segment
assets,
segment
profit
or
loss,
and
significant
expenses,
refer
to
the Statement
of
Assets
and
Liabilities
and
the Statement
of
Operations,
along
with
the
related
notes
to
the financial
statements.
The Schedule
of
Investments
provides
details
of
the Fund's investments
that
generate
returns
such
as
interest,
dividends,
and
realized
and
unrealized
gains
or
losses.
Performance
metrics,
including
portfolio
turnover
and
expense
ratios,
are
disclosed
in
the Financial
Highlights.
10.
Subsequent
Events
The Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
Selected
Portfolio
ADR
American
Depositary
Receipt
CVR
Contingent
Voting
Rights
8.
Fair
Value
Measurements
(continued)
Putnam
Variable
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
21
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
of
Putnam
Variable
Trust
and
Shareholders
of
Putnam
VT
Small
Cap
Growth
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Putnam
VT
Small
Cap
Growth
Fund
(one
of
the
funds
constituting
Putnam
Variable
Trust,
referred
to
hereafter
as
the
"Fund")
as
of
December
31,
2025,
the
related
statement
of
operations
for
the
year
ended
December
31,
2025,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2025,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2025
(collectively
referred
to
as
the
"financial
statements").
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
December
31,
2025,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2025
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2025
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund's
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund's
financial
statements
based
on
our
audits.
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
Fund
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
audits
of
these
financial
statements
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
audits
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
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
December
31,
2025
by
correspondence
with
the
custodian
and
transfer
agent.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
/s/
PricewaterhouseCoopers
LLP
Boston,
Massachusetts
February
19,
2026
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Putnam
Funds
family
of
funds
since
at
least
1957.
We
have
not
been
able
to
determine
the
specific
year
we
began
serving
as
auditor.
Putnam
Variable
Trust
Tax
Information
(unaudited)
22
franklintempleton.com
Annual
Report
Putnam
VT
Small
Cap
Growth
Fund
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
The
Fund
hereby
reports
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
December
31,
2025:
Pursuant
to:
Amount
Reported
Long-Term
Capital
Gain
Dividends
Distributed
§852(b)(3)(C)
$2,245,717
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$72,925
Putnam
Variable
Trust
23
franklintempleton.com
Annual
Report
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Remuneration
to
officers
is
paid
by
the
Fund's
investment
manager
according
to
the
terms
of
the
agreement.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
Not
applicable.
38948-AFSOI
02/26
©
2026
Franklin
Templeton.
All
rights
reserved.
| ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 9. | PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 10. | REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 11. | STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.
| ITEM 12. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 13. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 14. | PURCHASES OF SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
| ITEM 15. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
| ITEM 16. | CONTROLS AND PROCEDURES. |
| (a) | The Registrant's principal executive officer and principal financial officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
| (b) | During the period covered by this report, the Registrant transitioned to a new third-party service provider who performs certain accounting and administrative services for the Registrant that are subject to Franklin Templeton's oversight. |
| ITEM 17. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 18. | RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION. |
| (a) | Not applicable. |
| (b) | Not applicable. |
| ITEM 19. | EXHIBITS. |
Exhibit 99.CODE ETH
Exhibit 99.CERT
Exhibit 99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.
| Putnam Variable Trust | ||
| By: | /s/ Jonathan S. Horwitz | |
| Jonathan S. Horwitz | ||
| Principal Executive Officer | ||
| Date: | February 25, 2026 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Jonathan S. Horwitz | |
| Jonathan S. Horwitz | ||
| Principal Executive Officer | ||
| Date: | February 25, 2026 | |
| By: | /s/ Jeffrey White | |
| Jeffrey White | ||
| Principal Financial Officer | ||
| Date: | February 25, 2026 |
Putnam Variable Trust published this content on February 26, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 26, 2026 at 11:21 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]