Net loss was $30 million, translating to diluted loss per share ("EPS") of $0.37
This included $419 million, or $5.21 per share, of one-time acquisition costs incurred at the closing of the Commonwealth Financial Network ("Commonwealth") acquisition
Adjusted EPS* increased 25% year-over-year to $5.20
Gross profit* increased 31% year-over-year to $1,479 million
Core G&A* increased 33% year-over-year to $477 million
Adjusted pre-tax income* increased 35% year-over-year to $569 million
Key Business Results:
Total advisory and brokerage assets increased 45% year-over-year to $2.3 trillion
Advisory assets increased 51% year-over-year to $1.3 trillion
Advisory assets as a percentage of total assets increased to 58.2%, up from 56.0% a year ago
Total net new assets were $308 billion
This included $275 billion of acquired net new assets resulting from the acquisition of Commonwealth(1)
Total organic net new assets were $33 billion, representing 7% annualized growth
This included $17 billion of assets from First Horizon Bank ("First Horizon") that onboarded, and $6 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Prior to these impacts, organic net new assets were $21 billion, translating to a 4% annualized growth rate
Recruited assets(2) were $33 billion, up 27% from a year ago
Recruited assets over the trailing twelve months were $168 billion
Total client cash balances were $56 billion, an increase of $5 billion sequentially and $10 billion year-over-year
This included $4 billion resulting from the acquisition of Commonwealth
Client cash balances as a percentage of total assets were 2.4%, down from 2.6% in the prior quarter and 2.9% in the prior year
Key Capital and Liquidity Measures:
Corporate cash(3) was $568 million
Leverage ratio(4) was 2.04x
Dividends paid were $24.0 million
Key Updates
Large Institutions:
First Horizon: Onboarded First Horizon with $18 billion of brokerage and advisory assets, of which $17 billion transitioned onto our platform in Q3
M&A:
Atria Wealth Solutions, Inc. ("Atria"): Completed the conversion of Atria with $115 billion(5) of brokerage and advisory assets
Estimated run-rate EBITDA has increased from $150 million to $155 million
Commonwealth: Closed the acquisition of Commonwealth, and expect to complete the conversion in the fourth quarter of 2026
We are tracking towards our 90% retention target, with advisors representing nearly 80% of assets signed to-date
Estimated run-rate EBITDA has increased from $415 million to $425 million
As a result of purchase accounting, $419 million of the total purchase price is treated as acquisition costs, with no change in the amount of cash deployed
Liquidity & Succession: Deployed approximately $30 million of capital to close 5 deals in Q3
Core G&A:
Given our performance to date, we are lowering our 2025 Core G&A* outlook to a range of $1,860-1,880 million, including $165-170 million related to Prudential and Atria, and $160-165 million related to Commonwealth
SAN DIEGO, Oct. 30, 2025 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (NASDAQ:LPLA) (the "Company") today announced results for its third quarter ended September 30, 2025, reporting net loss of $30 million, or $0.37 per share. This compares with net income of $255 million, or $3.39 per share, in the third quarter of 2024 and net income of $273 million, or $3.40 per share, in the prior quarter.
"Over the past quarter, we continued to make progress against our key priorities, while delivering strong business results and record adjusted earnings per share," said Rich Steinmeier, CEO. "We continue to seek opportunities to improve our advisors' efficacy in the market. As advisory services become more central to our clients, we're lowering fees and streamlining pricing to make our platforms the most competitive in the industry. Ensuring that our pricing supports the value that we deliver, next year we will also make targeted fee adjustments that more closely align with industry standards."
"The third quarter underscores the strength of LPL, as we advanced on several strategic fronts," said Matt Audette, President and CFO. "We delivered another quarter of industry-leading organic growth, onboarded the wealth management business of First Horizon, closed on our acquisition of Commonwealth, and continued to make progress on driving operating leverage. As we look ahead, we remain excited about the opportunities to serve and support our advisors, while delivering long-term shareholder value."
Dividend Declaration
The Company's Board of Directors declared a $0.30 per share dividend to be paid on December 1, 2025 to all stockholders of record as of November 13, 2025.
Conference Call and Additional Information
The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, October 30, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.
Contacts
Investor
Media
About LPL Financial
LPL Financial Holdings Inc. (NASDAQ:LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace(6), LPL supports over 32,000 financial advisors and the wealth management practices of approximately 1,100 financial institutions, servicing and custodying approximately $2.3 trillion in brokerage and advisory assets on behalf of approximately 8 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.
Securities and advisory services offered through LPL Financial LLC ("LPL Financial") or its affiliate LPL Enterprise, LLC ("LPL Enterprise"), both registered investment advisers and broker-dealers. Members FINRA/SIPC.
Throughout this communication, the terms "financial advisors" and "advisors" are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial or LPL Enterprise.
We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.
Forward-Looking Statements
This press release contains statements regarding:
the Company's retention of Commonwealth advisors following the closing and Commonwealth's future financial and operating performance;
run-rate EBITDA expectations in connection with the Company's acquisitions of Commonwealth and Atria;
the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Commonwealth and First Horizon;
the Company's future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company's ICA yield, service and fee revenue, transaction revenue, core G&A expense, interest expense and income, depreciation and amortization, leverage ratio (including plans to reduce leverage), pricing and fees (including their effect on adjusted pre-tax margin), corporate cash, run-rate EBITDA, transaction revenue, operating leverage, pre-tax margin and share repurchases; and
future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.
These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company's expectations and objectives as of October 30, 2025 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:
difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;
disruptions in the businesses of the Company and Commonwealth that could make it more difficult to maintain relationships with advisors and their clients;
the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;
changes in general economic and financial market conditions, including retail investor sentiment;
changes in interest rates and fees payable by banks participating in the Company's client cash programs, including the Company's success in negotiating agreements with current or additional counterparties;
the Company's strategy and success in managing client cash program fees;
fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;
effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively;
whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
changes in the growth and profitability of the Company's fee-based offerings and asset-based revenues;
the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;
the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;
changes made to the Company's services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company's gross profit streams and costs;
the execution of the Company's capital management plans, including its compliance with the terms of the Company's amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company's senior unsecured notes;
strategic acquisitions and investments, including pursuant to the Company's Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company's capital management plans and liquidity;
the price, availability and trading volumes of shares of the Company's common stock, which will affect the timing and size of future share repurchases by the Company, if any;
the execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;
whether advisors affiliated with Commonwealth will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
the performance of third-party service providers to which business processes have been transitioned;
the Company's ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and
the other factors set forth in the Company's most recent Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission.
Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company's view as of any date subsequent to the date of this press release.
LPL Financial Holdings Inc.Condensed ConsolidatedStatementsof Income(In thousands, except per share data)(Unaudited)
Three Months Ended
Three Months Ended
September 30,
June 30,
September 30,
2025
2025
Change
2024
Change
REVENUE
Advisory
$
2,210,499
$
1,717,738
29
%
$
1,378,050
60
%
Commission:
Sales-based
695,029
619,792
12
%
429,132
62
%
Trailing
492,426
418,295
18
%
377,400
30
%
Total commission
1,187,455
1,038,087
14
%
806,532
47
%
Asset-based:
Client cash
428,190
397,332
8
%
353,855
21
%
Other asset-based
354,090
305,015
16
%
272,336
30
%
Total asset-based
782,280
702,347
11
%
626,191
25
%
Service and fee
174,715
151,839
15
%
145,729
20
%
Transaction
67,260
60,541
11
%
58,546
15
%
Interest income, net
60,859
76,941
(21
%)
49,923
22
%
Other
68,909
87,532
(21
%)
43,423
59
%
Total revenue
4,551,977
3,835,025
19
%
3,108,394
46
%
EXPENSE
Advisory and commission
3,025,274
2,483,165
22
%
1,948,065
55
%
Compensation and benefits
585,409
319,100
83
%
266,415
120
%
Occupancy and equipment
299,680
81,443
n/m
69,879
n/m
Promotional
208,547
177,552
17
%
164,538
27
%
Interest expense on borrowings
106,295
105,636
1
%
67,779
57
%
Depreciation and amortization
99,722
96,231
4
%
78,338
27
%
Professional services
75,507
41,092
84
%
26,295
187
%
Amortization of other intangibles
64,706
46,103
40
%
32,461
99
%
Brokerage, clearing and exchange
43,282
43,290
—
%
29,636
46
%
Communications and data processing
23,060
21,417
8
%
17,916
29
%
Other
54,606
51,192
7
%
59,724
(9
%)
Total expense
4,586,088
3,466,221
32
%
2,761,046
66
%
(LOSS) INCOME BEFORE (BENEFIT FROM) PROVISION FOR INCOME TAXES
(34,111
)
368,804
n/m
347,348
n/m
(BENEFIT FROM) PROVISION FOR INCOME TAXES
(4,594
)
95,555
n/m
92,045
n/m
NET (LOSS) INCOME
$
(29,517
)
$
273,249
n/m
$
255,303
n/m
(LOSS) EARNINGS PER SHARE
(Loss) earnings per share, basic
$
(0.37
)
$
3.42
n/m
$
3.41
n/m
(Loss) earnings per share, diluted
$
(0.37
)
$
3.40
n/m
$
3.39
n/m
Weighted-average shares outstanding, basic
80,017
79,984
—
%
74,776
7
%
Weighted-average shares outstanding, diluted
80,357
80,373
—
%
75,405
7
%
LPL Financial Holdings Inc.Condensed Consolidated Statements of Income(In thousands, except per share data)(Unaudited)
Nine Months Ended
September 30,
2025
2024
Change
REVENUE
Advisory
$
5,617,482
$
3,866,024
45
%
Commission:
Sales-based
1,924,859
1,237,437
56
%
Trailing
1,348,440
1,102,587
22
%
Total commission
3,273,299
2,340,024
40
%
Asset-based:
Client cash
1,217,553
1,047,712
16
%
Other asset-based
962,315
780,208
23
%
Total asset-based
2,179,868
1,827,920
19
%
Service and fee
471,753
412,901
14
%
Transaction
195,665
174,739
12
%
Interest income, net
181,651
140,926
29
%
Other
137,291
110,222
25
%
Total revenue
12,057,009
8,872,756
36
%
EXPENSE
Advisory and commission
7,862,364
5,500,579
43
%
Compensation and benefits
1,210,055
814,784
49
%
Promotional
531,744
427,282
24
%
Occupancy and equipment
458,363
205,672
123
%
Interest expense on borrowings
297,793
192,202
55
%
Depreciation and amortization
288,309
216,495
33
%
Amortization of other intangibles
154,330
92,620
67
%
Professional services
152,925
61,674
148
%
Brokerage, clearing and exchange
130,710
93,152
40
%
Communications and data processing
63,983
57,066
12
%
Other
154,487
159,619
(3
%)
Total expense
11,305,063
7,821,145
45
%
INCOME BEFORE PROVISION FOR INCOME TAXES
751,946
1,051,611
(28
%)
PROVISION FOR INCOME TAXES
189,641
263,744
(28
%)
NET INCOME
$
562,305
$
787,867
(29
%)
EARNINGS PER SHARE
Earnings per share, basic
$
7.19
$
10.55
(32
%)
Earnings per share, diluted
$
7.15
$
10.45
(32
%)
Weighted-average shares outstanding, basic
78,220
74,688
5
%
Weighted-average shares outstanding, diluted
78,594
75,424
4
%
LPL Financial Holdings Inc.Condensed Consolidated Statements of Financial Condition(In thousands, except share data)(Unaudited)
September 30, 2025
June 30, 2025
December 31, 2024
ASSETS
Cash and equivalents
$
1,343,507
$
4,185,337
$
967,079
Cash and equivalents segregated under federal or other regulations
1,249,000
1,611,200
1,597,249
Restricted cash
228,229
116,675
119,724
Receivables from clients, net
777,860
710,463
633,834
Receivables from brokers, dealers and clearing organizations
81,265
129,490
76,545
Advisor loans, net
3,645,122
2,536,190
2,281,088
Other receivables, net
1,072,166
951,063
902,777
Investment securities ($199,944, $124,639, and $42,267 at fair value at September 30, 2025, June 30, 2025, and December 31, 2024, respectively)
215,221
139,962
57,481
Property and equipment, net
1,338,504
1,278,991
1,210,027
Goodwill
2,674,864
2,213,393
2,172,873
Other intangibles, net
3,302,834
1,641,133
1,482,988
Other assets
2,103,642
1,959,779
1,815,739
Total assets
$
18,032,214
$
17,473,676
$
13,317,404
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Client payables
$
1,996,568
$
2,090,520
$
1,898,665
Payables to brokers, dealers and clearing organizations
195,728
273,593
129,228
Accrued advisory and commission expenses payable
355,464
303,614
323,996
Corporate debt and other borrowings, net
7,521,468
7,175,032
5,494,724
Accounts payable and accrued liabilities
768,248
556,086
588,450
Other liabilities
2,151,800
2,000,415
1,951,739
Total liabilities
12,989,276
12,399,260
10,386,802
STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value; 600,000,000 shares authorized; 136,628,300, 136,603,206, and 130,914,541 shares issued at September 30, 2025, June 30, 2025, and December 31, 2024, respectively
136
136
131
Additional paid-in capital
3,806,506
3,787,009
2,066,268
Treasury stock, at cost, 56,590,828, 56,599,471, and 56,253,909 shares at September 30, 2025, June 30, 2025, and December 31, 2024, respectively
(4,333,444
)
(4,332,275
)
(4,202,322
)
Retained earnings
5,569,740
5,619,546
5,066,525
Total stockholders' equity
5,042,938
5,074,416
2,930,602
Total liabilities and stockholders' equity
$
18,032,214
$
17,473,676
$
13,317,404
LPL Financial Holdings Inc.Management's Statements of Operations(In thousands, except per share data)(Unaudited)
Certain information in this release is presented as reviewed by the Company's management and includes information derived from the Company's unaudited condensed consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures" in this release.
Quarterly Results
Q3 2025
Q2 2025
Change
Q3 2024
Change
Gross Profit(7)
Advisory
$
2,210,499
$
1,717,738
29
%
$
1,378,050
60
%
Trailing commissions
492,426
418,295
18
%
377,400
30
%
Sales-based commissions
695,029
619,792
12
%
429,132
62
%
Advisory fees and commissions
3,397,954
2,755,825
23
%
2,184,582
56
%
Production-based payout(8)
(2,972,256
)
(2,406,692
)
23
%
(1,910,634
)
56
%
Advisory fees and commissions, net of payout
425,698
349,133
22
%
273,948
55
%
Client cash(9)
441,576
413,516
7
%
372,333
19
%
Other asset-based(10)
354,090
305,015
16
%
272,336
30
%
Service and fee
174,715
151,839
15
%
145,729
20
%
Transaction
67,260
60,541
11
%
58,546
15
%
Interest income, net(11)
47,468
60,738
(22
%)
31,428
51
%
Other revenue(12)
11,821
6,785
74
%
3,392
n/m
Total net advisory fees and commissions and attachment revenue
1,522,628
1,347,567
13
%
1,157,712
32
%
Brokerage, clearing and exchange expense
(43,282
)
(43,290
)
—
%
(29,636
)
46
%
Gross Profit(7)
1,479,346
1,304,277
13
%
1,128,076
31
%
G&A Expense
Core G&A(13)
477,323
425,595
12
%
359,134
33
%
Regulatory charges(14)
6,744
7,267
(7
%)
24,879
(73
%)
Promotional (ongoing)(15)(16)
201,863
163,575
23
%
175,605
15
%
Acquisition costs excluding interest(16)
538,177
71,562
n/m
22,243
n/m
Employee share-based compensation
18,627
19,504
(4
%)
20,289
(8
%)
Total G&A
1,242,734
687,503
81
%
