Lpl Financial Holdings Inc. · NASDAQ:LPLA
Lpl Financial — Q3 2025 Earnings Presentation
25 slides from Lpl Financial's earnings presentation, Oct 30, 2025
Slide 1: Q3 2025 Key Metrics
LPL Financial Holdings Inc. Q3 2025 Key Metrics October 30, 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(2) ◼ Organic Annualized Growth Rate $307.7 Change $157.3 $2,315 45% $275.0 $1,795 $1,91
Slide 5: Financial Results
Financial Results Gross Profit* ($M) Adjusted Pre-Tax Income* ($M) YOY YOY Change Change $1,479 31% $569 35% $509 $490 $1,304 $1,228 $1,273 $413 $398 $420 $411 $1,128 $391 $1,066 $1,079 $357 $1,010 $1,007 Q3 Q4 Q1 Q2 Q3 Q4 † Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 2023 2024 2025 Adjusted
Slide 6: Organic Net New Asset growth rate was ~7% in Q3 and ~12% over the past 4 quarters
Organic Net New Asset growth rate was ~7% in Q3 and ~12% over the past 4 quarters Total Organic Net New Assets(1) ($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 R
Slide 7: Centrally Managed Assets grew at a 34% organic growth rate over the past 4 quarters
Centrally Managed Assets grew at a 34% 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 $42B in Q3; the Payout Rate was 87.5%
Net Buy (Sell) Activity was $42B in Q3; the Payout Rate was 87.5% Net Buy (Sell) Activity(10) ($B) Payout Rate (%) ◼ Net Buy (Sell) Activity Client Cash % of Total Advisory and Brokerage Assets 87.8 $42.0 $41.8 87.6 $39.3 87.5 87.5 $37.8 $37.7 $38.3 87.3 87.3 87.3 $36.6 $35.6 $32.8 86.8 86.6 3.8% 3.
Slide 9: Service and Fee Revenue grew 20% year-over-year, as our advisor and account base continued to grow
Service and Fee Revenue grew 20% year-over-year, as our advisor and account base continued to grow Service and Fee Revenue ($M) Transaction Revenue ($M) YOY Change $175 20% $68 $67 $62 $61 $57 $59 $59 $54 $50 $152 $146 $145 $139 $136 $135 $131 $132 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 10: EBIT ROA decreased in Q3
EBIT ROA decreased in Q3 Average Total Advisory & Brokerage Assets ($B) ◼ Average Total Advisory & Brokerage Assets(11) YOY SEQ Gross Profit* ROA(12) Change Change OPEX ROA(13) $1,890 32% 9% $1,737 $1,638 $1,537 $1,428 $1,354 $1,290 $1,186 $1,231 33.6 bps 32.8 bps 31.6 bps 30.7 bps 30.1 bps 29.1 bps
Slide 11: Q3 Gross Profit* ROA decreased sequentially
Q3 Gross Profit* ROA decreased sequentially Gross Profit* ROA(11) (bps) ◼ Client Cash ◼ Interest Income, net and Other Revenue ◼ Service and Fee ◼ Transaction, Net of BC&E ◼ Other Asset-Based(15) ◼ Net Advisory Fees and Commissions 33.6 32.8 31.6 30.7 30.1 29.1 28.5 28.3 27.8 13.9 12.9 11.8 11.0 10.
Slide 12: OPEX ROA decreased sequentially in Q3
OPEX ROA decreased sequentially in Q3 Total OPEX % of Assets(13) (bps) ◼ Amortization of Other Intangible Assets ◼ D&A Expense (ex Amortization of Other Intangible Assets) ◼ Employee Share-based Compensation ◼ Promotional ◼ Regulatory ◼ Core G&A* 18.5 18.8 18.5 18.3 17.9 17.6 0.9 0.9 0.9 0.9 17.1 16
Slide 13: Our client cash balances are largely operational and decreased to 2.4% of total assets in Q3
Our client cash balances are largely operational and decreased to 2.4% of total assets in Q3 We generate economics on client cash through a Client Cash Balances(16) ($B) third-party bank network ◼ CCA and Money Market Balances • By establishing sweep relationships across our ICA and ◼ DCA Balances D
Slide 14: Fixed rate balances make up ~60% of the ICA portfolio, reducing our sensitivity to short-term rates
Fixed rate balances make up ~60% 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
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 was $1,880-1,920M • Deliver operating leverage in core business • Given our performance
Slide 16: Our balance sheet remains strong…
Our balance sheet remains strong… Corporate Cash(17) ($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 ($B) ◼ Independent RIA† Advisory Assets(19) YOY ◼ Organic Independent RIA† Advisory NNA(20) ◼ Corporate RIA Assets(19) Change ◼ Organic Corporate RIA
Slide 20: Monthly Metrics Dashboard through September 2025
Monthly Metrics Dashboard through September 2025 Total Advisory and Brokerage Assets ($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 96.6 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 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Net new organic advisory assets 4.2 - 6.8 18.4 - - - - 2.3 Net
Slide 25: Endnotes
Endnotes (17) 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
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