Lpl Financial Holdings Inc. · NASDAQ:LPLA
Lpl Financial — Q3 2026 Earnings Presentation
38 slides from Lpl Financial's earnings presentation, Oct 27, 2026
Slide 1: LPL Financial Holdings Inc. Q3 2026 Investor Presentation
LPL Financial Holdings Inc. Q3 2026 Investor Presentation October 27, 2026 Member FINRA/SIPC
Slide 2: Notice to Investors: Safe Harbor Statement
Notice to Investors: Safe Harbor Statement Statements in this presentation regarding LPL Financial Holdings Inc.’s (together with its subsidiaries, the “Company”) future financial and operating results, growth, plans, priorities, business strategies, capabilities, and outlook, including forecasts an
Slide 3: Notice to Investors: Non-GAAP Financial Measures
Notice to Investors: Non-GAAP Financial Measures Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and v
Slide 4: LPL investment highlights
LPL investment highlights 1 Industry leader with scale and structural tailwinds 2 Horizontal expansion strategy with a goal of meeting all ~300,000† advisors where they are Vertical integration strategy, with significant capacity to invest in capabilities that enhance the 3 advisor value proposition
Slide 5: LPL overview
1 Industry leader with scale and structural tailwinds LPL overview Who we are Who we serve • We are a full-service wealth management firm that believes advisors and institutions should have the freedom to choose the business model, services ~32,600 Advisors ~$2.6T Assets and technology they need to
Slide 6: LPL by the numbers
1 Industry leader with scale and structural tailwinds LPL by the numbers Industry-leading scale Financial Highlights Total Client Assets(1) ($B) Total Organic Net New Assets “NNA” Gross Profit* Contribution (end of period) Annualized Growth(2) 2% 1% 2% Over $650B of Organic NNA 13% 29% Client cash
Slide 7: We are a market leader with scale advantages and structural tailwinds
1 Industry leader with scale and structural tailwinds We are a market leader with scale advantages and structural tailwinds Market leader, with expanded Growing demand for advice Independent channel gaining share addressable marketsठProjected Growth in U.S. Retail Total U.S. Retail Advisor-Mediate
Slide 8: We are expanding our market share by providing industry-leading flexibility and value-added capabilities
1 Industry leader with scale and structural tailwinds We are expanding our market share by providing industry-leading flexibility and value-added capabilities Flexibility Capabilities Deliver advisors and institutions end-to-end Meet advisors and institutions where they are solutions that are higher
Slide 9: Our horizontal expansion strategy enables us to meet all ~300,000 advisors where they are
2 Horizontal expansion Our horizontal expansion strategy enables us to meet all ~300,000† advisors where they are ~300K advisors in 2019 2020 2021 2022 2023 2024 2025 2026+ the marketplace†: Independent ~50K advisors | $5T Traditional independent markets Hybrid RIAs ~40K advisors | $4T Strategic Wea
Slide 10: Our Advisor Channel serves all segments of the advisor-mediated market
2 Horizontal expansion Our Advisor Channel serves all segments of the advisor-mediated market Organic NNA is the primary driver of Growing advisor opportunity Value proposition advisor asset growth • Initially, we served advisors in the • Traditional Independent Model Advisor Assets (end of period,
Slide 11: Our Institutional Channel provides a compelling solution for institutions to outsource their wealth business
2 Horizontal expansion Our Institutional Channel provides a compelling solution for institutions to outsource their wealth business Organic NNA has driven the majority Growing institutional opportunity Value proposition of institutional asset growth • Initially, we focused on depository financial •
Slide 12: We are extending our vertical integration by solving for the needs of advisors at every stage
3 Vertical Integration We are extending our vertical integration by solving for the needs of advisors at every stage of their practice Life cycle of an advisor Value-added partner across entire life cycle Entry Growth and practice optimization Sunsetting and transition Move to independence Affiliati
Slide 13: LPL Latitude is our unified technology experience
3 Vertical Integration LPL Latitude is our unified technology experience, delivering industry-leading flexibility and integrated workflows Latitude brings together data, security, advisor workflows, client experiences, and AI into one integrated experience. Connected Data Secure, Resilient Cyan: Age
Slide 14: LPL Solutions enhance client experience and are a driver of organic growth
3 Vertical Integration LPL Solutions enhance client experience and are a driver of organic growth Deepening our vertical integration Helping advisors and institutions deliver on their value proposition Asset Management Wealth Solutions Estate, Tax, High Net Worth, Paraplanning, Research/OCIO Clearin
Slide 15: We provide a range of services to advisors and institutions, strengthening their business while enhancing our returns
3 Vertical Integration We provide a range of services to advisors and institutions, strengthening their business while enhancing our returns We have seen a favorable mix shift in our platforms Key points Brokerage: Asset growth is driven by institutions, LPL Solutions where asset mix is primarily
Slide 16: We are advancing our capabilities to enhance our value proposition and drive growth
3 Vertical Integration We are advancing our capabilities to enhance our value proposition and drive growth We are making investments to drive organic growth… …with a focus on Technology Core Technology Portfolio Spend ($M) Annual Core G&A* ($M) Capabilities for New Institutions and M&A ($M) Annual C
Slide 17: We continued to drive solid organic growth with a NNA growth rate of ~4%
3 Vertical Integration We continued to drive solid organic growth with a NNA growth rate of ~4% over the past year Total Organic NNA(10) Organic Advisory NNA(11) Total Organic NNA ($B) Organic Advisory NNA ($B) Annualized Organic Growth Rate Net Brokerage to Advisory Conversions ($B)(12) Annu
Slide 18: We benefit from rising market levels and interest rates, with natural hedges to volatility
4 Resilient business model with natural hedges to market volatility We benefit from rising market levels and interest rates, and our business model has natural hedges to market volatility Annual Gross Profit* Impact Market Levels (S&P 500) ~$20M (13) Rising market levels drive growth in assets and r
Slide 19: Our client cash balances are largely operational and stable across rate cycles
4 Resilient business model with natural hedges to market volatility Our client cash balances are largely operational and, as a percent of client assets, have been stable across rate cycles We generate economics on client cash through a Client Cash Balances(16) (end of period, $B) third-party bank ne
Slide 20: Fixed rate balances make up ~65% of the ICA portfolio
4 Resilient business model with natural hedges to market volatility Fixed rate balances make up ~65% of the ICA portfolio†, reducing our sensitivity to movement in short-term interest rates ICA Balances, including Overflow (end of period, $B) ◼ Money Market Overflow Balances‡ Variable balances are p
Slide 21: We remain focused on investing to drive organic growth while delivering long-term operating leverage
5 Disciplined expense management driving operational leverage We remain focused on investing to drive organic growth while delivering long-term operating leverage in our core business Long-term cost strategy Annual Core G&A* Growth 15% Deliver operating leverage 13% in core business 2026 Outlook $1,
Slide 22: Our capital management strategy is focused on driving growth and maximizing shareholder value
6 Capital-light business model with flexible allocation framework Our capital management strategy is focused on driving growth and maximizing shareholder value Our capital management principles Dynamic capital allocation framework • Disciplined capital management to drive long-term shareholder value
Slide 23: Maintaining a strong balance sheet is critical to our strategy
6 Capital-light business model with flexible allocation framework Maintaining a strong balance sheet is critical to our strategy and a key consideration for advisors and institutions Balance Sheet Principles Leverage Ratio(3) Prior Management Target Range • Maintain a strong balance sheet that can a
Slide 24: We have continued to return capital to shareholders
6 Capital-light business model with flexible allocation framework We have continued to return capital to shareholders Share Repurchases and Dividends ($M) ◼ Share Repurchases ◼ Dividends $2B share repurchase authorization† We resumed share $1,192 repurchases in Q2 Paused share 2026‡ repurchases Capi
Slide 25: We see potential for consolidation given fragmented markets
6 Capital-light business model with flexible allocation framework We see potential for consolidation given fragmented markets Addressable markets for advisor Highly fragmented markets create opportunity channel† for additional consolidation† Growth potential from consolidation Traditional Independen
Slide 26: M&A is a key part of our strategy, and complements our organic growth
6 Capital-light business model with flexible allocation framework M&A is a key part of our strategy, and complements our organic growth Growth potential from consolidation Commonwealth Financial Network† ▪ Our scale, capabilities and economics give us a competitive advantage in M&A in independent Au
Slide 27: We're delivering liquidity and succession capabilities for advisors seeking to transition
6 Capital-light business model with flexible allocation framework We’re delivering liquidity and succession capabilities for advisors seeking to transition L&S by the ~$900M 84 ~$10-15M ~30-40 deals numbers: Capital deployed† Deals closed Average deal size § Capacity of deals per year § Growing oppo
Slide 28: As we continue to invest and increase our scale, we enhance our ability to drive further growth
As we continue to invest and increase our scale, we enhance our ability to drive further growth Increa Attract Invest in se s n ca differentiated sitio le in advisors and opo as institutions, and capabilities and a r se p unique advisor and benefit from lue ts, greater use of ad va institution vis s
Slide 29: We are focused on executing our strategy and delivering results
We are focused on executing our strategy and delivering results Total Client Assets(1) ($B) Total Organic NNA Growth Key Earnings Growth Drivers Over $650B of Organic NNA Enhanced Value Proposition (Capabilities, Technology, Service) $2,565 $2,371 13.2% Increased Organic NNA $1,741 (Opportunities in
Slide 30: Appendix
DSN Appendix oe
Slide 31: Acquisition of Commonwealth Financial Network
Acquisition of Commonwealth Financial Network Transaction Details and Timing ▪ On March 28, 2025, we signed an agreement to acquire 100% of the equity of Commonwealth Financial Network as an equity purchase with an upfront price of ~$2.7B ▪ We closed the acquisition on August 1, 2025, with advisors
Slide 32: Commonwealth: estimated annual EBITDA benefit of ~$415M when fully ramped
Commonwealth Financial Network: We estimate an annual EBITDA* benefit of ~$415M when fully ramped Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 Q3'27 Transaction Timeline Signed 3/28/25 Closed 8/1/25 Conversion 11/14/26 Advisor Transition Planning and Training Operating Model / Advisor
Slide 33: Key drivers of promotional expense growth
Key drivers of promotional expense growth Promotional Expense ($M)(19) $363 $317 $280 Large Institution non-recurring onboarding expenses decreased by ~$80M to ~$30M as the Large Institution non-recurring onboarding expenses majority of Prudential-related spend rolled off increased by ~$40M to ~$110
Slide 34: Reconciliation
Reconciliation Adjusted EPS* and Adjusted Net Income* Adjusted EPS* and adjusted net income* are non-GAAP financial measures. Please see a description of adjusted EPS* and adjusted net income* under “Non-GAAP Financial Measures” on page 3 of this presentation for additional information. Below are re
Slide 35: Reconciliation
Reconciliation Gross Profit* Gross profit* is a non-GAAP financial measure. Please see a description of gross profit* under “Non-GAAP Financial Measures” on page 3 of this presentation for additional information. Below is a calculation of gross profit* for the periods presented herein: $ in millions
Slide 36: Reconciliation
Reconciliation Core G&A* to Total expense Core G&A* is a non-GAAP financial measure. Please see a description of Core G&A* under “Non-GAAP Financial Measures” on page 3 of this presentation for additional information. Below is a reconciliation of total expense to Core G&A* and of Core G&A, prior to
Slide 37: Endnotes
Endnotes (1) Consists of total client assets under custody at LPL Financial LLC (“LPL Financial”) and Waddell & Reed, LLC, as well as assets under custody of a third-party custodian related to certain of the Company’s subsidiaries, Commonwealth Equity Services, LLC (“CES”) and Atria’s introducing br
Slide 38: Endnotes
Endnotes (17) Approximately 223 advisors remained directly affiliated with LPL, and approximately 144 hybrid advisors have transitioned to Private Advisor Group’s hybrid RIA model. Value approximated based on asset and holding details provided to LPL from March 31, 2026. (18) The departure of the Co
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