# LPL Financial Holdings Inc. (LPLA)

Informational only - not investment advice.

CIK: 0001397911
SIC: 6200 Security & Commodity Brokers, Dealers, Exchanges & Services
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Security And Commodity Brokers, Dealers, Exchanges, And Services](/major-group/62/) > [SIC 6200 Security & Commodity Brokers, Dealers, Exchanges & Services](/industry/6200/)
Latest 10-K filed: 2026-02-23
SEC page: https://www.sec.gov/edgar/browse/?CIK=1397911
Filing source: https://www.sec.gov/Archives/edgar/data/1397911/000162828026010705/lpla-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-23 · accession 0001628280-26-010705 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001397911.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 16,989,479,000 USD | 2025 | verified |
| Net income | 863,024,000 USD | 2025 | verified |
| Assets | 18,492,753,000 USD | 2025 | verified |
| Free cash flow | -981,780,000 USD | 2025 | computed |
| Net margin | 5.08% | 2025 | computed |
| Revenue YoY | +37.18% | 2025 | computed |
| ROE | 16.15% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

Peer groups: [Brokers, exchanges, and market infrastructure](/compare/brokers-exchanges/) · SIC 6200 Security & Commodity Brokers, Dealers, Exchanges & Services

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including LPLA

- Brokers, exchanges, and market infrastructure: [peer review](/compare/brokers-exchanges/) · [market-risk page](/compare/brokers-exchanges/risk/)

### Peer percentile fingerprint

| Ratio | LPLA | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 5.1% | 22.5% | 14 | 8 |
| Revenue growth | 37.2% | 17.0% | 100 | 8 |
| FCF margin | -5.8% | 29.0% | 0 | 8 |
| ROE | 16.1% | 14.4% | 86 | 8 |
| ROA | 4.7% | 4.1% | 57 | 8 |
| Liabilities / equity | 2.46 | 2.91 | 43 | 8 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6200 Security & Commodity Brokers, Dealers, Exchanges & Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 16989479000 | USD | 2025 | 2026-02-23 |
| Net income | 863024000 | USD | 2025 | 2026-02-23 |
| Assets | 18492753000 | USD | 2025 | 2026-02-23 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001397911.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 4,049,383,000 | 4,281,481,000 | 5,188,400,000 | 5,624,856,000 | 5,871,640,000 | 7,720,830,000 | 8,600,825,000 | 10,052,848,000 | 12,385,107,000 | 16,989,479,000 |
| Net income | 191,931,000 | 238,863,000 | 439,459,000 | 559,880,000 | 472,640,000 | 459,866,000 | 845,702,000 | 1,066,250,000 | 1,058,616,000 | 863,024,000 |
| Diluted EPS | 2.13 | 2.59 | 4.85 | 6.62 | 5.86 | 5.63 | 10.40 | 13.69 | 14.03 | 10.92 |
| Operating cash flow | 388,933,000 | 453,306,000 | 581,580,000 | 623,871,000 | 789,941,000 | 453,134,000 | 1,945,577,000 | 512,611,000 | 277,589,000 | -411,404,000 |
| Capital expenditures | 127,646,000 | 111,910,000 | 132,688,000 | 156,389,000 | 155,532,000 | 215,987,000 | 306,596,000 | 403,286,000 | 562,531,000 | 570,376,000 |
| Dividends paid | 89,081,000 | 90,273,000 | 88,360,000 | 82,597,000 | 79,097,000 | 80,095,000 | 79,833,000 | 92,190,000 | 89,727,000 | 94,411,000 |
| Share buybacks | 25,013,000 | 113,728,000 | 417,891,000 | 500,370,000 | 150,036,000 | 90,011,000 | 325,031,000 | 1,100,101,000 | 170,096,000 | 100,004,000 |
| Assets | 4,834,926,000 | 5,358,751,000 | 5,477,468,000 | 5,880,238,000 | 6,596,162,000 | 7,991,600,000 | 9,482,226,000 | 10,385,480,000 | 13,317,404,000 | 18,492,753,000 |
| Liabilities | 4,013,931,000 | 4,393,743,000 | 4,503,395,000 | 4,856,365,000 | 5,281,308,000 | 6,321,067,000 | 7,314,674,000 | 8,306,501,000 | 10,386,802,000 | 13,148,268,000 |
| Stockholders' equity | 820,995,000 | 965,008,000 | 974,073,000 | 1,023,873,000 | 1,314,854,000 | 1,670,533,000 | 2,167,552,000 | 2,078,979,000 | 2,930,602,000 | 5,344,485,000 |
| Cash and cash equivalents | 747,709,000 | 811,136,000 | 511,096,000 | 590,209,000 | 808,612,000 | 495,246,000 | 847,519,000 | 465,671,000 | 967,079,000 | 1,037,378,000 |
| Free cash flow | 261,287,000 | 341,396,000 | 448,892,000 | 467,482,000 | 634,409,000 | 237,147,000 | 1,638,981,000 | 109,325,000 | -284,942,000 | -981,780,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 4.74% | 5.58% | 8.47% | 9.95% | 8.05% | 5.96% | 9.83% | 10.61% | 8.55% | 5.08% |
| Return on equity | 23.38% | 24.75% | 45.12% | 54.68% | 35.95% | 27.53% | 39.02% | 51.29% | 36.12% | 16.15% |
| Return on assets | 3.97% | 4.46% | 8.02% | 9.52% | 7.17% | 5.75% | 8.92% | 10.27% | 7.95% | 4.67% |
| Liabilities / equity | 4.89 | 4.55 | 4.62 | 4.74 | 4.02 | 3.78 | 3.37 | 4.00 | 3.54 | 2.46 |

## As-reported value updates

4 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/LPLA/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-03. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001397911.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 2.86 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 4.24 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 3.65 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 2,522,383,000 | 224,291,000 | 2.91 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 2,643,829,000 | 217,555,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 2,832,593,000 | 288,764,000 | 3.83 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 2,931,769,000 | 243,800,000 | 3.23 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 3,108,394,000 | 255,303,000 | 3.39 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 3,512,351,000 | 270,749,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 3,670,007,000 | 318,573,000 | 4.24 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 3,835,025,000 | 273,249,000 | 3.40 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 4,551,977,000 | -29,517,000 | -0.37 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 4,932,470,000 | 300,719,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 4,938,434,000 | 356,404,000 | 4.43 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 5,186,623,000 | 379,261,000 | 4.74 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from LPLA's latest 10-K: [/company/LPLA/business/](/company/LPLA/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from LPLA's latest 10-K: [/company/LPLA/risk-factors/](/company/LPLA/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1397911/000162828026051542/lpla-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-03
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Business Overview

LPL serves the financial advisor-mediated marketplace as the nation’s largest independent broker-dealer, a leading investment advisory firm and a top custodian. We support more than 32,000 financial advisors, and the wealth management practices of approximately 1,100 financial institutions, servicing and custodying approximately $2.6 trillion in brokerage and advisory assets. 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 successful businesses.

We are steadfast in our commitment to the advisor-mediated model and the belief that investors deserve access to personalized guidance from a financial advisor. We believe advisors should have the freedom to choose the business model, services and technology they need and to manage their client relationships. We believe investors achieve better outcomes when working with a financial advisor, and we strive to make it easy for advisors to do what is best for their clients.

We believe that we are the only company that offers the unique combination of an integrated technology platform, comprehensive self-clearing services and access to a wide range of curated non-proprietary products all delivered in an environment unencumbered by conflicts from product manufacturing, underwriting and market-making.

Our Sources of Revenue

Our revenue is derived primarily from fees and commissions from products and advisory services offered by our advisors to their clients, a substantial portion of which we pay out to our advisors, as well as fees we receive from our advisors for the use of our technology, custody, clearing, trust and reporting platforms. We also generate asset-based revenue through our insured bank sweep vehicles, money market account balances and the access we provide to a variety of product providers with the following product lines:

[[GREPCENT_TABLE]]
[["\u2022 Alternative Investments","","\u2022 Retirement Plan Products"],["\u2022 Annuities","","\u2022 Separately Managed Accounts"],["\u2022 Exchange Traded Products","","\u2022 Structured Products"],["\u2022 Insurance Based Products","","\u2022 Unit Investment Trusts"],["\u2022 Mutual Funds"]]
[[/GREPCENT_TABLE]]

Under our self-clearing platform, we custody the majority of client assets invested in these financial products, for which we provide statements, transaction processing and ongoing account management. In return for these services, mutual funds, insurance companies, banks and other financial product sponsors pay us fees based on asset levels or number of accounts managed. We also earn interest from margin loans made to our advisors’ clients, cash and equivalents segregated under federal or other regulations, advisor repayable loans and operating cash, which is included in interest income, net in the condensed consolidated statements of income. A portion of our revenue is not asset-based or correlated with the equity financial markets.

We regularly review various aspects of our operations and service offerings, including our policies, procedures and platforms, in response to marketplace developments. We seek to continuously improve and enhance aspects of our operations and service offerings in order to position our advisors for long-term growth and to align with competitive and regulatory developments. For example, we regularly review the structure and fees of our products and services, including related disclosures, in the context of the changing regulatory environment and competitive landscape for advisory and brokerage accounts.

1

Table of Contents

Significant Events

Resumed share repurchases and approved additional share repurchase program

During the second quarter we resumed our share repurchase program, with $309.5 million repurchased during the second quarter and approximately $300 million of repurchases planned for the third quarter. From July 1, 2026 through July 30, 2026, the Company has repurchased 420,464 outstanding shares for a total of $134.3 million. On July 23, 2026, the Board authorized a new repurchase program that increases the amount available for repurchases of the Company’s issued and outstanding common shares by $2.5 billion.

Executive Summary

Financial Highlights

Results for the second quarter of 2026 included net income of $379.3 million, or $4.74 per diluted share, which compares to net income of $273.2 million, or $3.40 per diluted share, for the second quarter of 2025.

Asset Trends

Total advisory and brokerage assets served were $2.6 trillion at June 30, 2026, compared to $1.9 trillion at June 30, 2025. Total net new assets were $23.6 billion for the three months ended June 30, 2026, compared to $20.5 billion for the same period in 2025.

Net new advisory assets were $30.7 billion for the three months ended June 30, 2026, compared to $23.1 billion for the same period in 2025. Advisory assets were $1.5 trillion, or 60% of total advisory and brokerage assets served, at June 30, 2026, up 46% from $1.1 trillion at June 30, 2025.

Net new brokerage assets were an outflow of $7.1 billion for the three months ended June 30, 2026, compared to an outflow of $2.6 billion for the same period in 2025. Brokerage assets were $1.0 trillion at June 30, 2026, up 18% from $858.5 billion at June 30, 2025.

Gross Profit Trend

Gross profit, a non-GAAP financial measure, was $1.6 billion for the three months ended June 30, 2026, an increase of 24% from $1.3 billion for the three months ended June 30, 2025. See the “Key Performance Metrics” section for additional information on gross profit.

Common Stock Dividends and Share Repurchases

During the three months ended June 30, 2026, we paid stockholders cash dividends of $24.0 million and repurchased approximately 1.1 million of our outstanding shares for a total of $309.5 million.

2

Table of Contents

Key Performance Metrics

We focus on several key metrics in evaluating the success of our business relationships and our resulting financial position and operating performance. Our key operating, business and financial metrics are as follows:

[[GREPCENT_TABLE]]
[["","As of and for the Three Months Ended"],["","June 30,","March 31,","June 30,"],["Operating Metrics (dollars in billions)(1)","2026","2026","2025"],["Advisory and Brokerage Assets(2)"],["Advisory assets","$","1,548.4","","$","1,390.4","","$","1,060.7"],["Brokerage assets","1,014.3","","945.9","","858.5"],["Total Advisory and Brokerage Assets","$","2,562.7","","$","2,336.3","","$","1,919.2"],["Advisory as a % of total Advisory and Brokerage Assets","60.4%","59.5%","55.3%"],["Net New Assets(3)"],["Net new advisory assets","$","30.7","","$","25.8","","$","23.1"],["Net new brokerage assets","(7.1)","","(4.4)","","(2.6)"],["Total Net New Assets","$","23.6","","$","21.4","","$","20.5"],["Organic Net New Assets"],["Organic net new advisory assets","$","30.2","","$","25.8","","$","23.1"],["Organic net new brokerage assets","(7.1)","","(4.4)","","(2.6)"],["Total Organic Net New Assets","$","23.1","","$","21.4","","$","20.5"],["Organic advisory net new assets annualized growth(4)","8.7%","7.4%","9.5%"],["Total organic net new assets annualized growth(4)","4.0%","3.6%","4.6%"],["Client Cash Balances"],["Insured cash account sweep","$","38.4","","$","39.8","","$","34.2"],["Deposit cash account sweep","15.6","","15.9","","10.8"],["Total Bank Sweep","54.1","","55.7","","44.9"],["Money market sweep","1.1","","1.5","","3.7"],["Total Client Cash Sweep Held by Third Parties","55.2","","57.2","","48.6"],["Client cash account","1.7","","2.0","","2.0"],["Total Client Cash Balances","$","56.9","","$","59.1","","$","50.6"],["Client Cash Balances as a % of Total Assets","2.2%","2.5%","2.6%"],["Net buy (sell) activity(5)","$","39.7","","$","43.2","","$","36.6"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","As of and for the Three Months Ended"],["","June 30,","March 31,","June 30,"],["Business and Financial Metrics (dollars in millions)","2026","2026","2025"],["Advisors","32,475","","32,144","","29,353"],["Average total assets per advisor(6)","$","78.9","","$","72.7","","$","65.4"],["Share repurchases","$","309.5","","$","\u2014","","$","\u2014"],["Dividends","$","24.0","","$","24.1","","$","24.0"],["Leverage ratio(7)","1.91","","1.86","","1.23"]]
[[/GREPCENT_TABLE]]

3

Table of Contents

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","Six Months Ended June 30,"],["Financial Metrics (dollars in millions, except per share data)","2026","2025","2026","2025"],["Total revenue","$","5,186.6","","$","3,835.0","","$","10,125.1","","$","7,505.0"],["Net income","$","379.3","","$","273.2","","$","735.7","","$","591.8"],["Earnings per share (\u201cEPS\u201d), diluted","$","4.74","","$","3.40","","$","9.17","","$","7.61"],["Non-GAAP Financial Metrics (dollars in millions, except per share data)"],["Adjusted EPS(8)","$","5.84","","$","4.51","","$","11.45","","$","9.64"],["Gross profit(9)","$","1,618.3","","$","1,304.3","","$","3,211.0","","$","2,576.9"],["Adjusted EBITDA(10)","$","846.7","","$","688.3","","$","1,665.7","","$","1,370.7"],["Core G&A(11)","$","519.3","","$","425.6","","$","1,051.3","","$","838.7"]]
[[/GREPCENT_TABLE]]

_______________________________

(1)Totals may not foot due to rounding.

(2)Consists of total advisory and brokerage assets under custody at the Company’s primary broker-dealer subsidiary, LPL Financial LLC (“LPL Financial”), as well as assets under custody of a third-party custodian related to Commonwealth Equity Services, LLC (“CES”) and Atria Wealth Solutions, Inc.’s (“Atria”) introducing broker-dealer subsidiaries. Please consult the “Results of Operations” section for a tabular presentation of advisory and brokerage assets.

(3)Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. We consider conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.

(4)Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.

(5)Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.

(6)Calculated based on the end of period total advisory and brokerage assets divided by the end of period advisor count.

(7)The leverage ratio is a financial metric from our Credit Agreement and is calculated by dividing Credit Agreement net debt, which equals consolidated total debt less Corporate Cash, by Credit Agreement EBITDA. Credit Agreement EBITDA, a non-GAAP financial measure, is defined in the Credit Agreement as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. Please consult the “Debt and Related Covenants” section for more information. Below are reconciliations of corporate debt and other borrowings to Credit Agreement net debt as of the dates below and net income to EBITDA and Credit Agreement EBITDA for the trailing twelve-month periods presented (in millions):

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1397911/000162828026010705/lpla-20251231.htm
Complete FY 2025 MD&A: /company/LPLA/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-23
Report date: 2025-12-31

Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes to those consolidated financial statements included in “Item 8. Financial Statements and Supplementary Data” of this Annual Report on Form 10-K. This discussion contains forward-looking statements that involve significant risks and uncertainties. As a result of many factors, such as those set forth under “Risk Factors” and elsewhere in this Annual Report on Form 10-K, our actual results may differ materially from those anticipated in these forward-looking statements. Please also refer to the section under heading “Special Note Regarding Forward-Looking Statements.”

Business Overview

We are a leader in the advisor-mediated marketplace as the nation’s largest independent broker-dealer, a leading investment advisory firm, and a top custodian. We serve independent financial advisors and institutions, providing them with the technology solutions, brokerage and advisory platforms, clearing services, compliance services, consultative practice management programs and training, business services and planning and advice services, and in-house research they need to run successful businesses. We enable them to provide personalized financial guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions. Please consult Part I, “Item 1. Business” for information related to our business activities.

39

Table of Contents

Our Sources of Revenue

Our revenue is derived primarily from fees and commissions from products and advisory services offered by our advisors to their clients, a substantial portion of which we pay out to our advisors, as well as fees we receive from our advisors for the use of our technology, custody, clearing, trust and reporting platforms. We also generate asset-based revenue through our insured bank sweep vehicles, money market account balances and the access we provide to a variety of product providers with the following product lines:

[[GREPCENT_TABLE]]
[["\u2022 Alternative Investments","","\u2022 Retirement Plan Products"],["\u2022 Annuities","","\u2022 Separately Managed Accounts"],["\u2022 Exchange Traded Products","","\u2022 Structured Products"],["\u2022 Insurance Based Products","","\u2022 Unit Investment Trusts"],["\u2022 Mutual Funds"]]
[[/GREPCENT_TABLE]]

Under our self-clearing platform, we custody the majority of client assets invested in these financial products, for which we provide statements, transaction processing and ongoing account management. In return for these services, mutual funds, insurance companies, banks and other financial product sponsors pay us fees based on asset levels or number of accounts managed. We also earn interest from margin loans made to our advisors’ clients, cash and equivalents segregated under federal or other regulations, advisor repayable loans and operating cash, which is included in interest income, net in the consolidated statements of income. A portion of our revenue is not asset-based or correlated with the equity financial markets.

We regularly review various aspects of our operations and service offerings, including our policies, procedures and platforms, in response to marketplace developments. We seek to continuously improve and enhance aspects of our operations and service offerings in order to position our advisors for long-term growth and to align with competitive and regulatory developments. For example, we regularly review the structure and fees of our products and services, including related disclosures, in the context of the changing regulatory environment and competitive landscape for advisory and brokerage accounts.

Significant Events

Closed on the acquisition of Commonwealth Financial Network

On August 1, 2025, the Company closed on the acquisition of Commonwealth, a privately-held independent wealth management firm headquartered in Massachusetts, for a cash payment of approximately $2.7 billion. As part of the transaction, Commonwealth will transition its advisory and brokerage assets to the Company’s platform. The Company expects to complete the conversion in the fourth quarter of 2026. Commonwealth's results were included in the Company's consolidated statements of income from August 1, 2025 through December 31, 2025 and consolidated statements of financial condition as of December 31, 2025. See Note 4 - Acquisitions within the notes to the consolidated financial statements for additional information.

Completed offerings of $2.75 billion of debt and $1.7 billion of equity

On February 26, 2025, the Company completed the issuance and sale of $750.0 million in aggregate principal amount of 5.200% senior unsecured notes due 2030 and $500.0 million in aggregate principal amount of 5.650% senior unsecured notes due 2035. On April 3, 2025, the Company completed the issuance and sale of $500.0 million in aggregate principal amount of 4.900% senior unsecured notes due 2028, $500.0 million in aggregate principal amount of 5.150% senior unsecured notes due 2030 and $500.0 million in aggregate principal amount of 5.750% senior unsecured notes due 2035. See Note 11 - Corporate Debt and Other Borrowings, Net within the notes to the consolidated financial statements for additional information.

On April 2, 2025, the Company completed a public offering of approximately 5.4 million shares of the Company’s common stock at an offering price of $320.00 per share. See Note 15 - Stockholders’ Equity within the notes to the consolidated financial statements for additional information.

40

Table of Contents

Executive Summary

Financial Highlights

Results for the year ended December 31, 2025 included net income of $0.9 billion, or $10.92 per diluted share, which compares to $1.1 billion, or $14.03 per diluted share, for the year ended December 31, 2024.

Asset Trends

Total advisory and brokerage assets served were $2.4 trillion at December 31, 2025, compared to $1.7 trillion at December 31, 2024. Total net new assets were $431.5 billion for the year ended December 31, 2025, compared to $235.6 billion for the same period in 2024.

Net new advisory assets were $317.4 billion for the year ended December 31, 2025, compared to $137.8 billion in 2024. Advisory assets were $1,392.7 billion, or 58.8% of total advisory and brokerage assets served, at December 31, 2025, up 46% from $957.0 billion at December 31, 2024.

Net new brokerage assets were $114.1 billion for the year ended December 31, 2025, compared to $97.8 billion in 2024. Brokerage assets were $977.9 billion at December 31, 2025, up 25% from $783.7 billion at December 31, 2024.

Gross Profit Trend

Gross profit, a non-GAAP financial measure, was $5.6 billion for the year ended December 31, 2025, an increase of 24% from $4.5 billion for the year ended December 31, 2024. See the “Key Performance Metrics” section for additional information on gross profit.

Common Stock Dividends and Share Repurchases

During the year ended December 31, 2025, we paid stockholders cash dividends of $94.4 million and repurchased 289,371 of our outstanding shares for a total of $100.0 million.

Key Performance Metrics

We focus on several key metrics in evaluating the success of our business relationships and our resulting financial position and operating performance. Our key operating, business and financial metrics are as follows:

[[GREPCENT_TABLE]]
[["","As of and for the Years Ended December 31,"],["Operating Metrics (dollars in billions)(1)","2025","2024"],["Advisory and Brokerage Assets(2)"],["Advisory assets","$","1,392.7","$","957.0"],["Brokerage assets","977.9","783.7"],["Total Advisory and Brokerage Assets","$","2,370.5","$","1,740.7"],["Advisory as a % of total Advisory and Brokerage Assets","58.8","%","55.0","%"],["Net New Assets(3)"],["Net new advisory assets","$","317.4","$","137.8"],["Net new brokerage assets","114.1","97.8"],["Total Net New Assets","$","431.5","$","235.6"],["Organic Net New Assets"],["Organic net new advisory assets","$","116.1","$","115.3"],["Organic net new brokerage assets","30.4","25.5"],["Total Organic Net New Assets","$","146.5","$","140.7"],["Organic advisory net new assets annualized growth(4)","12.1","%","15.7","%"],["Total organic net new assets annualized growth(4)","8.4","%","10.4","%"]]
[[/GREPCENT_TABLE]]

41

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[[GREPCENT_TABLE]]
[["","As of and for the Years Ended December 31,"],["","2025","2024"],["Client Cash Balances"],["Insured cash account sweep","$","41.0","$","38.3"],["Deposit cash account sweep","15.3","10.7"],["Total Bank Sweep","56.3","49.0"],["Money market sweep","2.5","4.3"],["Total Client Cash Sweep Held by Third Parties","58.8","53.3"],["Client cash account","2.2","1.8"],["Total Client Cash Balances","$","61.0","$","55.1"],["Client Cash Balances as a % of Total Assets","2.6%","3.2%"],["Net buy (sell) activity(5)","$","160.9","$","153.1"],["Business and Financial Metrics (dollars in millions)"],["Advisors","32,178","28,888"],["Average total assets per advisor(6)","$","73.7","$","60.3"],["Share repurchases","$","100.0","$","170.0"],["Dividends","$","94.4","$","89.7"],["Leverage ratio(7)","1.95","1.89"],["","Years Ended December 31,"],["Financial Metrics (dollars in millions, except per share data)","2025","2024"],["Total revenue","$","16,989.5","$","12,385.1"],["Net income","$","863.0","$","1,058.6"],["Earnings per share (\u201cEPS\u201d), diluted","$","10.92","$","14.03"],["Non-GAAP Financial Metrics (dollars in millions, except per share data)"],["Adjusted EPS(8)","$","20.09","$","16.51"],["Gross profit(9)","$","5,597.9","$","4,501.3"],["Adjusted EBITDA(10)","$","2,914.9","$","2,224.4"],["Core G&A(11)","$","1,852.1","$","1,515.5"]]
[[/GREPCENT_TABLE]]

____________________

(1)Totals may not foot due to rounding.

(2)Consists of total advisory and brokerage assets under custody at the Company’s primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to CES and Atria’s introducing broker-dealer subsidiaries. Please consult the “Results of Operations” section for a tabular presentation of advisory and brokerage assets.

(3)Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. We consider conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.

(4)Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.

(5)Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.

(6)Calculated based on the end of period total advisory and brokerage assets divided by the end of period advisor count.

42

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(7)The leverage ratio is a financial metric from our Credit Agreement and is calculated by dividing Credit Agreement net debt, which equals consolidated total debt less Corporate Cash, by Credit Agreement EBITDA. Credit Agreement EBITDA, a non-GAAP financial measure, is defined in the Credit Agreement as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. Please consult the “Debt and Related Covenants” section for more information. Below are reconciliations

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/LPLA/mda/fy2025/
All MD&A years: /company/LPLA/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/LPLA/mda/fy2024/): filed 2025-02-20; accession 0001397911-25-000018 (https://www.sec.gov/Archives/edgar/data/1397911/000139791125000018/lpla-20241231.htm)
- [FY 2023 MD&A](/company/LPLA/mda/fy2023/): filed 2024-02-21; accession 0001397911-24-000011 (https://www.sec.gov/Archives/edgar/data/1397911/000139791124000011/lpla-20231231.htm)
- [FY 2022 MD&A](/company/LPLA/mda/fy2022/): filed 2023-02-23; accession 0001397911-23-000024 (https://www.sec.gov/Archives/edgar/data/1397911/000139791123000024/lpla-20221231.htm)
- [FY 2021 MD&A](/company/LPLA/mda/fy2021/): filed 2022-02-22; accession 0001397911-22-000014 (https://www.sec.gov/Archives/edgar/data/1397911/000139791122000014/lpla-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6200 Security & Commodity Brokers, Dealers, Exchanges & Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [M2SL](/indicator/M2SL/): M2

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/LPLA.md · JSON record: /company/LPLA.json · verified financials: /company/LPLA/financials.json / /company/LPLA/financials.csv · machine TOC for the whole site: /llms.txt