Lpl Financial Holdings Inc. · NASDAQ:LPLA
Lpl Financial — Q4 2025 Earnings Presentation
25 slides from Lpl Financial's earnings presentation, Jan 29, 2026
Slide 1: LPL Financial Holdings Inc. Q4 2025 Key Metrics
LPL Financial Holdings Inc. Q4 2025 Key Metrics January 29, 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 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(2) ◼ Organic Annualized Growth Rate $2,315 $2,371 Change $307.7 36% $1,919 $157.3 $1,74
Slide 5: Financial Results
Financial Results Gross Profit* ($M) Adjusted Pre-Tax Income* ($M) YOY YOY $1,542 Change $569 Change $1,479 $559 26% $509 36% $490 $1,273 $1,304 $413 $420 $411 $1,228 $398 $1,128 $357 $1,066 $1,079 $1,007 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 † Q1 Q2 Q3 Q4 2023 2024 2025 2023 2024 2025 Adjusted
Slide 6: Organic NNA growth rate was ~4% in Q4 and ~8% over the past 4 quarters
Organic NNA growth rate was ~4% in Q4 and ~8% over the past 4 quarters Total Organic Net New Assets(1) ($B) Organic Net New Advisory Assets(1)(6) ($B) Organic Net New Brokerage Assets(1)(6) ($B) ◼ Organic Total NNA ◼ Organic Advisory NNA ◼ Organic Brokerage NNA Organic Annualized Growth Rate Net Bro
Slide 7: Centrally Managed Assets grew at a 19% organic growth rate over the past 4 quarters
Centrally Managed Assets grew at a 19% organic growth rate over the past 4 quarters Centrally Managed Assets(8) ($B) Organic Net New Centrally Managed Assets(9) ($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 $41B in Q4; the Payout Rate was 88.0%
Net Buy (Sell) Activity was $41B in Q4; the Payout Rate was 88.0% Net Buy (Sell) Activity(10) ($B) Payout Rate (%) ◼ Net Buy (Sell) Activity Client Cash % of Total Advisory and Brokerage Assets $42.0 $41.8 88.0 $40.5 87.8 $39.3 87.6 $37.8 $37.7 $38.3 87.5 87.5 $36.6 87.3 87.3 $32.8 86.8 86.6 3.6% 3.
Slide 9: Service and Fee Revenue grew 30% year-over-year
Service and Fee Revenue grew 30% year-over-year, as our advisor and account base continued to grow Service and Fee Revenue ($M) Transaction Revenue ($M) YOY Change $75 $181 30% $68 $67 $175 $62 $61 $57 $59 $59 $54 $152 $146 $145 $139 $135 $131 $132 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 10: EBIT ROA decreased in Q4
EBIT ROA decreased in Q4 Average Total Advisory & Brokerage Assets ($B) ◼ Average Total Advisory & Brokerage Assets(11) YOY SEQ Gross Profit* ROA(12) Change Change OPEX ROA(13) $2,050 33% 8% $1,890 $1,737 $1,638 $1,537 $1,428 $1,354 $1,290 $1,231 32.8 bps 31.6 bps 30.7 bps 30.1 bps 29.1 bps 28.5 bps
Slide 11: Gross Profit* ROA decreased sequentially in Q4
Gross Profit* ROA decreased sequentially in Q4 Gross Profit* ROA(11) (bps) ◼ Client Cash ◼ Interest Income, net and Other Revenue ◼ Service and Fee ◼ Transaction, Net of BC&E ◼ Other Asset-Based(15) ◼ Net Advisory Fees and Commissions 32.8 31.6 30.7 30.1 29.1 28.5 28.3 27.8 27.3 12.9 11.8 11.0 10.4
Slide 12: OPEX ROA decreased sequentially in Q4
OPEX ROA decreased sequentially in Q4 Total OPEX % of Assets(13) (bps) ◼ Amortization of Other Intangible Assets ◼ D&A Expense (ex Amortization of Other Intangible Assets) ◼ Employee Share-based Compensation ◼ Promotional ◼ TA Loan Amortization ◼ Regulatory ◼ Core G&A* 18.8 18.5 18.3 17.9 17.6 0.9 0
Slide 13: Our client cash balances are largely operational and increased to 2.6% of total assets in Q4
Our client cash balances are largely operational and increased to 2.6% of total assets in Q4 We generate economics on client cash through a Client Cash Balances(16) ($B) third-party bank network ◼ CCA and Money Market † Balances ◼ DCA Balances • By establishing sweep relationships across our ICA and
Slide 14: Fixed rate balances make up ~55% of the ICA portfolio
Fixed rate balances make up ~55% of the ICA portfolio†, reducing our sensitivity to movement in short-term interest rates ICA Balances (end of period, $B) ◼ Variable ICA Balances Variable balances are primarily indexed to Fed Funds ◼ Fixed Rate ICA Balances ◼ Fixed Rate ICA Balance % • Our variable
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: Annual Core G&A* Growth 15% Deliver operating leverage 13% in core business 2026 Outlook $1,775-1,820M Prior to Commonwealth 8% ~4.5 - 7% Commonwealth $3
Slide 16: Our balance sheet remains strong…
Our balance sheet remains strong… Corporate Cash(17) ($M) Leverage Ratio(18) • 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 $248 Paused share Paused share repurchases repurchases following following the the announcement of announcement of the ac
Slide 18: Appendix
DSS. Appendix Vi ae ee
Slide 19: Corporate and Independent RIA Advisory assets
Corporate and Independent RIA† Advisory assets Corporate and Independent RIA† Advisory Asset Mix ($B) Corporate and Independent RIA† Advisory NNA Mix ($B) ◼ Independent RIA† Advisory Assets(19) YOY ◼ Organic Independent RIA† Advisory NNA(20) ◼ Corporate RIA Assets(19) Change ◼ Organic Corporate RIA
Slide 20: Monthly Metrics Dashboard through December 2025
Monthly Metrics Dashboard through December 2025 Total Advisory and Brokerage Assets ($B) Total Net New Assets ($B) ◼ Total Advisory and Brokerage Assets Advisory Assets % of Total Assets YOY SEQ ◼ Organic Total NNA ◼ Acquired Total NNA(2) ◼ Organic Annualized Growth Rate Change Change 292.8 2,264 2,
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 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Net new organic advisory assets - 4.2 - 6.8 18.4 - - - - Net n
Slide 25: Endnotes
Endnotes (18) The Company calculates its leverage ratio as total debt less total corporate cash, divided by Credit Agreement EBITDA for the trailing twelve months. (19) Assets on the Company’s corporate RIA platform are serviced by investment advisor representatives of LPL Financial or Allen & Compa
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