LPL Financial Announces Second Quarter 2026 Results

Key Financial Results

• Net income was $379 million, translating to diluted earnings per share ("EPS") of $4.74, up 39% from a year ago

• Adjusted EPS* increased 29% year-over-year to $5.84

  • Gross profit* increased 24% year-over-year to $1,618 million

  • Core G&A* increased 22% year-over-year to $519 million

  • Adjusted pre-tax income* increased 30% year-over-year to $635 million
    

Key Business Results

• Total client assets increased 34% year-over-year to $2.6 trillion

  • Advisory assets increased 46% year-over-year to $1.5 trillion

  • Advisory assets as a percentage of total client assets increased to 60.4%, up from 55.3% a year ago

• Total organic net new assets were $23 billion, representing 4% annualized growth

• Recruited assets(1) were $25 billion, up 35% from a year ago

  • Recruited assets over the trailing twelve months were $89 billion

• Total client cash balances were $57 billion, a decrease of $2 billion sequentially and an increase of $6 billion year-over-year

  • Client cash balances as a percentage of total client assets were 2.2%, down from 2.5% in the prior quarter and 2.6% in the prior year

Key Capital and Liquidity Measures

• Corporate cash(2) was $430 million

• Leverage ratio(3) was 1.91x

• Share repurchases were $309 million and dividends paid were $24 million
  

Key Updates

M&A:

• Commonwealth Financial Network ("Commonwealth"): On track to complete the conversion in the fourth quarter of 2026

  • Continue to expect asset retention of approximately 90%

  • Estimated run-rate EBITDA has increased from $410 million to $435 million

• Mariner Advisor Network: Closed on the acquisition of Mariner Advisor Network, an LPL branch office supporting 367† advisors who collectively manage $31 billion† of client assets

  • As part of this transaction, approximately 223 advisors remain directly affiliated with LPL, and approximately 144 hybrid advisors have transitioned to Private Advisor Group's hybrid RIA model

• Liquidity & Succession: Deployed approximately $21 million of capital to close four deals in Q2, including one external practice

Core G&A:

• Given our performance to date, we are lowering our 2026 Core G&A* outlook range to $2,140-2,165 million, including expenses related to Commonwealth
  

Capital Management:

• Share Repurchases: Resumed our share repurchase program, with $309 million repurchased during the second quarter and approximately $300 million planned for the third quarter

• Repurchase Authorization: On July 23, 2026, the Board approved a $2.5 billion increase to the Company's share repurchase authorization

• Dividend: The Company's Board of Directors declared a $0.30 per share dividend to be paid on August 28, 2026 to all stockholders of record as of August 14, 2026.
  

SAN DIEGO, July 30, 2026 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq: LPLA) (the "Company") today announced results for its second quarter ended June 30, 2026, reporting net income of $379 million, or $4.74 per share. This compares with net income of $273 million, or $3.40 per share, in the second quarter of 2025 and net income of $356 million, or $4.43 per share, in the prior quarter.

"After an outstanding start to the year, we continued our momentum in the second quarter, delivering another quarter of strong performance and results," said Rich Steinmeier, CEO. "We remain focused on our strategic priorities, and are on track to onboard Commonwealth later this year. Underscoring the exceptional work and dedication of our teams, JD Power recognized both Commonwealth and LPL as the top-ranked firms for independent advisor satisfaction. This is a reflection of the complementary cultures we're bringing together and the unparalleled value we deliver to advisors and their clients."

"The team delivered another quarter of remarkable results, highlighted by record adjusted earnings per share and further progress driving improved operating leverage," said Matt Audette, President and CFO. "We achieved this while deploying capital across our entire framework, including continuing to invest in organic and inorganic growth and resuming share repurchases."

Conference Call and Additional Information

The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, July 30, 2026. The conference call will be accessible and available for replay at investor.lpl.com/events.

Contacts

Investor Relations
[email protected]

Media Relations
[email protected]

About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace(4), LPL supports 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 on behalf of approximately 8 million Americans. 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 thriving businesses. For further information about LPL, please visit www.lpl.com.

Securities and advisory services offered through LPL Financial LLC ("LPL Financial") or its affiliate LPL Enterprise, LLC ("LPL Enterprise"), both registered investment advisers and broker-dealers. Members FINRA/SIPC.

Throughout this communication, the terms "financial advisors" and "advisors" are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial or LPL Enterprise.

We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

† Value approximated based on asset and holding details provided to LPL from March 31, 2026.

Forward-Looking Statements

This press release contains statements regarding:

• the Company's retention of Commonwealth assets and Commonwealth's future financial and operating performance;

• run-rate EBITDA expectations in connection with the Company's acquisition of Commonwealth;

• the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Commonwealth;

• the Company's plans to invest to drive growth and increase efficiency while scaling its business;

• the Company's recruitment pipeline and expected organic growth;

• the Company's future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company's ICA yield, service and fee revenue, transaction revenue, core G&A expense, interest expense and income, leverage ratio (including plans to reduce leverage), pricing and fees (including their effect on adjusted pre-tax margin), corporate cash, run-rate EBITDA, depreciation and amortization, operating leverage, pre-tax margin, transition assistance loan amortization, organic growth, payout rate, tax rate and share repurchases; and

• future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.
  

These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company's expectations and objectives as of July 30, 2026 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:

• difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;

• disruptions in the businesses of the Company and Commonwealth that could make it more difficult to maintain relationships with advisors and their clients;

• the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;

• changes in general economic and financial market conditions, including retail investor sentiment;

• changes in interest rates and fees payable by banks participating in the Company's client cash programs, including the Company's success in negotiating agreements with current or additional counterparties;

• the Company's strategy and success in managing client cash program fees;

• fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;

• effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively;

• whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;

• changes in the growth and profitability of the Company's fee-based offerings and asset-based revenues;

• the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;

• the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;

• changes made to the Company's services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company's gross profit streams and costs;

• the execution of the Company's capital management plans, including its compliance with the terms of the Company's amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company's senior unsecured notes;

• strategic acquisitions and investments, including pursuant to the Company's Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company's capital management plans and liquidity;

• the price, availability and trading volumes of shares of the Company's common stock, which will affect the timing and size of future share repurchases by the Company, if any;

• the execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;

• whether advisors affiliated with Commonwealth will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;

• the performance of third-party service providers to which business processes have been transitioned;

• the Company's ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and

• the other factors set forth in the Company's most recent Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission. 
  

Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company's view as of any date subsequent to the date of this press release.

LPL Financial Holdings Inc.
Management's Statements of Operations
(In thousands, except per share data)
(Unaudited)

Certain information in this release is presented as reviewed by the Company's management and includes information derived from the Company's unaudited condensed consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures" in this release.

LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)

Note: Totals may not foot due to rounding.

Note: Totals may not foot due to rounding.