Lpl Financial Holdings Inc. · NASDAQ:LPLA
Lpl Financial — Q2 2025 Earnings Presentation
25 slides from Lpl Financial's earnings presentation, Jul 31, 2025
Slide 1: LPL Financial Holdings Inc. Q2 2025 Key Metrics
LPL Financial Holdings Inc. Q2 2025 Key Metrics July 31, 2025 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 and
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: Operating Metrics
Operating Metrics Total Advisory and Brokerage Assets ($B) Total Net New Assets (“NNA”)(1) ($B) ◼ Total Advisory and Brokerage Assets Advisory Assets % of Total Assets YOY ◼ Organic Total NNA ◼ Acquired Total NNA ◼ Organic Annualized Growth Rate Change $157.3 $78.8 $1,919 $1,741 $1,795 28% $33.2 $34
Slide 5: Financial Results
Financial Results Gross Profit* ($M) Adjusted Pre-Tax Income* ($M) YOY YOY Change Change $509 $490 23% $1,273 $1,304 21% $1,228 $420 $420 $391 $413 $398 $411 $1,128 $357 $1,066 $1,079 $990 $1,010 $1,007 Q2 Q3 Q4 Q1 Q2 Q3 Q4 † Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2025 2023 2024 2025 Adjusted Pr
Slide 6: Organic Net New Asset growth rate was ~5% in Q2 and ~12% over the past 4 quarters
Organic Net New Asset growth rate was ~5% in Q2 and ~12% over the past 4 quarters Total Organic Net New Assets(1) ($B) Organic Net New Advisory Assets(1)(5) ($B) Organic Net New Brokerage Assets(1)(5) ($B) ◼ Organic Total NNA ◼ Organic Advisory NNA ◼ Organic Brokerage NNA Organic Annualized Growth R
Slide 7: Centrally Managed Assets grew at a 33% organic growth rate over the past 4 quarters
Centrally Managed Assets grew at a 33% organic growth rate over the past 4 quarters Centrally Managed Assets(7) ($B) Organic Net New Centrally Managed Assets(8) ($B) ◼ Centrally Managed Assets YOY ◼ Organic Centrally Managed NNA Centrally Managed Assets % of Total Advisory Assets Organic Annualized
Slide 8: Net Buy (Sell) Activity was $37B in Q2; the Payout Rate was 87.3%
Net Buy (Sell) Activity was $37B in Q2; the Payout Rate was 87.3% Net Buy (Sell) Activity(9) ($B) Payout Rate (%) ◼ Net Buy (Sell) Activity Client Cash % of Total Advisory and Brokerage Assets $42.0 87.8 $39.3 87.6 $37.8 $37.7 $38.3 87.5 $36.6 87.3 87.3 87.3 $35.6 $32.8 86.7 86.8 $32.3 86.6 4.0% 3.8
Slide 9: Service and Fee Revenue grew 12% year-over-year
Service and Fee Revenue grew 12% year-over-year, as our advisor and account base continued to grow Service and Fee Revenue ($M) Transaction Revenue ($M) YOY Change $152 12% $68 $146 $145 $62 $61 $57 $59 $59 $139 $54 $50 $136 $135 $47 $131 $132 $123 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 10: EBIT ROA increased in Q2
EBIT ROA increased in Q2 Average Total Advisory & Brokerage Assets ($B) ◼ Average Total Advisory & Brokerage Assets(10) YOY SEQ Gross Profit* ROA(11) Change Change OPEX ROA(12) $1,737 28% 6% $1,638 $1,537 $1,428 $1,354 $1,290 $1,186 $1,231 $1,142 33.4 bps 33.6 bps 32.8 bps 31.6 bps 30.7 bps (2.4) bp
Slide 11: Q2 Gross Profit* ROA decreased sequentially
Q2 Gross Profit* ROA decreased sequentially Gross Profit* ROA(11) (bps) ◼ Client Cash ◼ Interest Income, net and Other Revenue ◼ Service and Fee ◼ Transaction, Net of BC&E ◼ Other Asset-Based(14) ◼ Net Advisory Fees and Commissions 33.4 33.6 32.8 31.6 30.7 30.1 29.1 28.5 28.3 13.8 13.9 12.9 11.8 11.
Slide 12: OPEX ROA decreased sequentially in Q2
OPEX ROA decreased sequentially in Q2 Total OPEX % of Assets(12) (bps) ◼ Amortization of Other Intangible Assets ◼ D&A Expense (ex Amortization of Other Intangible Assets) ◼ Employee Share-based Compensation ◼ Promotional ◼ Regulatory ◼ Core G&A* 18.2 18.5 18.8 18.5 18.3 17.9 17.6 0.8 0.9 0.9 0.9 0.
Slide 13: Our client cash balances are largely operational and decreased to 2.6% of total assets in Q2
Our client cash balances are largely operational and decreased to 2.6% of total assets in Q2 We generate economics on client cash through a Client Cash Balances(15) ($B) third-party bank network ◼ CCA and Money Market Balances • By establishing sweep relationships across our ICA ◼ DCA Balances and D
Slide 14: Fixed rate balances make up ~65% of the ICA portfolio
Fixed rate balances make up ~65% of the ICA portfolio, reducing our sensitivity to movement in short-term interest rates ICA Balances (end of period, $B) ◼ Variable ICA Balances ◼ Fixed Rate ICA Balances Variable balances are primarily indexed to Fed Funds ◼ Fixed Rate ICA Balance % • Our variable I
Slide 15: We remain focused on investing to drive organic growth while delivering long-term operating leverage
We remain focused on investing to drive organic growth while delivering long-term operating leverage in our core business Long-Term Cost Strategy 2025 Core G&A* Context • Our previous 2025 Core G&A* outlook range prior to Prudential† and Atria‡ was ~6-7.5% year-over-year growth, or $1,560-1,585M • D
Slide 16: Our balance sheet remains strong…
Our balance sheet remains strong… Corporate Cash(16) ($M) Leverage Ratio(17) • Our strategy is to maintain a strong balance sheet that can • A long-term target leverage range of 1.5x to 2.5x positions our absorb market volatility while having the capacity to invest for balance sheet well over a rang
Slide 17: ...And we have continued to return capital to shareholders
...And we have continued to return capital to shareholders Share Repurchases and Dividends ($M) ◼ Share Repurchases ◼ Dividends $373 $2B share repurchase authorization† $299 $273 Paused share $248 repurchases Paused share repurchases following the following the announcement of announcement of the th
Slide 18: Appendix
SS Appendix wi a ed
Slide 19: Corporate and Independent RIA Advisory assets
Corporate and Independent RIA† Advisory assets Corporate and Independent RIA† Advisory Asset Mix ($B) Corporate and Independent RIA† Advisory NNA Mix ($B) ◼ Independent RIA† Advisory Assets(18) YOY ◼ Organic Independent RIA† Advisory NNA(19) ◼ Corporate RIA Assets(18) Change ◼ Organic Corporate RIA
Slide 20: Monthly Metrics Dashboard through June 2025
Monthly Metrics Dashboard through June 2025 Total Advisory and Brokerage Assets ($B) Total Net New Assets ($B) ◼ Total Advisory and Brokerage Assets Advisory Assets % of Total Assets YOY SEQ ◼ Organic Total NNA ◼ Acquired Total NNA ◼ Organic Annualized Growth Rate Change Change 1,919 28% 3% 96.6 1,7
Slide 21: 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 22: 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 th
Slide 23: 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* for the periods presented
Slide 24: Endnotes
Endnotes (1) Organic Net New Assets include assets from Large Institutions. Below are Net New Assets from Large Institutions for the periods presented: $ in billions Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Net new organic advisory assets - 6.8 18.4 - - - - 2.3 - Net n
Slide 25: Endnotes
Endnotes (16) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company's Credit Agreement, which include LPL Finan
LPL Financial Holdings — Q2 2025 Earnings Presentation on 6ix