LPL Financial Holdings Inc 8-K, filed Oct 27, 2026
LPL Financial Holdings Inc. (LPLA)
8-K
2026-10-27
For: 2026-10-27
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Added on
October 27, 2026
About this 8-K
LPL Financial Holdings Inc filed this 8-K on October 27, 2026.
LPL Financial reported net income of $357 million and adjusted EPS of $5.97, up 15% year-over-year, for the third quarter ended September 30, 2026; total client assets increased 11% to $2.6 trillion. AI summary
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 27, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant's telephone number, including area code:
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. | |||||||
On October 27, 2026 , LPL Financial Holdings Inc. (collectively with its subsidiaries, the “Company”) issued a press release announcing its financial results for the three months ended September 30, 2026. A copy of the press release is furnished with this Form 8-K and attached hereto as Exhibit 99.1.
Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
| Item 9.01 | Financial Statements and Exhibits. | |||||||
| (d) | Exhibits | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LPL FINANCIAL HOLDINGS INC. | ||||||||
| By: | /s/ Matthew Audette | |||||||
| Name: Matthew Audette | ||||||||
| Title: President and Chief Financial Officer | ||||||||
Dated: October 27, 2026
For Immediate Release |  | |||||||
LPL Financial Announces Third Quarter 2026 Results
Key Financial Results
•Net income was $357 million, translating to diluted earnings per share ("EPS") of $4.52
•Adjusted EPS* increased 15% year-over-year to $5.97
◦Gross profit* increased 12% year-over-year to $1,662 million
◦Core G&A* increased 11% year-over-year to $532 million
◦Adjusted pre-tax income* increased 13% year-over-year to $641 million
Key Business Results
•Total client assets increased 11% year-over-year to $2.6 trillion
◦Advisory assets increased 16% year-over-year to $1.6 trillion
◦Advisory assets as a percentage of total client assets increased to 60.9%, up from 58.2% a year ago
•Total organic net new assets were $29 billion, representing 5% annualized growth
•Recruited assets(1) were $24 billion, down 26% from a year ago
◦Recruited assets over the trailing twelve months were $81 billion
•Total client cash balances were $57 billion, consistent with prior quarter and an increase of $1 billion year-over-year
◦Client cash balances as a percentage of total client assets were 2.2%, consistent with prior quarter and down from 2.4% in the prior year
Key Capital and Liquidity Measures
•Corporate cash(2) was $563 million
•Leverage ratio(3) was 1.93x
•Share repurchases were $301 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
◦Asset retention is now expected to be approximately 83%
◦Estimated run-rate EBITDA is now expected to be $415 million
•Liquidity & Succession: Deployed approximately $20 million of capital to close three deals in Q3
Core G&A:
•Given our performance to date, we are narrowing our 2026 Core G&A* outlook range to $2,140-2,160 million, including expenses related to Commonwealth
Capital Management:
•Dividend: The Company's Board of Directors declared a $0.30 per share dividend to be paid on November 30, 2026 to all stockholders of record as of November 12, 2026
SAN DIEGO — October 27, 2026 — LPL Financial Holdings Inc. (Nasdaq: LPLA) (the "Company") today announced results for its third quarter ended September 30, 2026, reporting net income of $357 million, or $4.52 per share. This compares with a net loss of $30 million, or $0.37 per share, in the third quarter of 2025 and net income of $379 million, or $4.74 per share, in the prior quarter.
*See the Non-GAAP Financial Measures section and the endnotes to this release for further details about these non-GAAP financial measures
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"After an outstanding first half of the year, we delivered another quarter of strong business performance and excellent financial results, while making meaningful progress on key strategic initiatives,” said Rich Steinmeier, CEO. “We delivered improved organic growth, advanced our preparation to onboard Commonwealth, and began the roll out of our proprietary AI agent, Cyan, to advisors. These accomplishments underscore the strength of our platform and our continued focus on delivering unmatched value for advisors and their clients."
"The team delivered another quarter of outstanding results, highlighted by strong organic growth and record adjusted earnings per share, all while advancing our advisor experience and executing on our capital allocation strategy" said Matt Audette, President and CFO. “These efforts position us to sustain that momentum through year-end and into 2027."
Conference Call and Additional Information
The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Tuesday, October 27, 2026. The conference call will be accessible and available for replay at investor.lpl.com/events.
Contacts
Investor Relations
investor.relations@lplfinancial.com
Media Relations
media.relations@lplfinancial.com
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.
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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, including the timing and extent of the Company's expansion of access to Cyan, 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 October 27, 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;
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•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.
4
LPL Financial Holdings Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | Three Months Ended | ||||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||||
| 2026 | 2026 | Change | 2025 | Change | |||||||||||||
| REVENUE | |||||||||||||||||
| Advisory | $ | 2,872,928 | $ | 2,632,405 | 9 | % | $ | 2,210,499 | 30 | % | |||||||
| Commission: | |||||||||||||||||
| Sales-based | 742,852 | 728,155 | 2 | % | 695,029 | 7 | % | ||||||||||
| Trailing | 507,904 | 503,918 | 1 | % | 492,426 | 3 | % | ||||||||||
| Total commission | 1,250,756 | 1,232,073 | 2 | % | 1,187,455 | 5 | % | ||||||||||
| Asset-based: | |||||||||||||||||
| Client cash | 461,471 | 443,501 | 4 | % | 428,190 | 8 | % | ||||||||||
| Other asset-based | 400,613 | 391,643 | 2 | % | 354,090 | 13 | % | ||||||||||
| Total asset-based | 862,084 | 835,144 | 3 | % | 782,280 | 10 | % | ||||||||||
| Service and fee | 218,055 | 208,879 | 4 | % | 174,715 | 25 | % | ||||||||||
| Transaction | 79,120 | 83,216 | (5 | %) | 67,260 | 18 | % | ||||||||||
| Interest income, net | 48,699 | 46,527 | 5 | % | 60,859 | (20 | %) | ||||||||||
| Other | 12,388 | 148,379 | (92 | %) | 68,909 | (82 | %) | ||||||||||
| Total revenue | 5,344,030 | 5,186,623 | 3 | % | 4,551,977 | 17 | % | ||||||||||
| EXPENSE | |||||||||||||||||
| Advisory and commission | 3,632,732 | 3,507,164 | 4 | % | 3,025,274 | 20 | % | ||||||||||
| Compensation and benefits | 358,512 | 355,612 | 1 | % | 585,409 | (39 | %) | ||||||||||
| Promotional | 235,733 | 220,030 | 7 | % | 208,547 | 13 | % | ||||||||||
| Occupancy and equipment | 149,380 | 125,542 | 19 | % | 299,680 | (50 | %) | ||||||||||
| Depreciation and amortization | 117,287 | 109,805 | 7 | % | 99,722 | 18 | % | ||||||||||
| Interest expense on borrowings | 105,834 | 101,502 | 4 | % | 106,295 | — | % | ||||||||||
| Amortization of other intangibles | 72,844 | 70,886 | 3 | % | 64,706 | 13 | % | ||||||||||
| Professional services | 53,250 | 50,757 | 5 | % | 75,507 | (29 | %) | ||||||||||
| Brokerage, clearing and exchange | 49,139 | 52,018 | (6 | %) | 43,282 | 14 | % | ||||||||||
| Communications and data processing | 23,978 | 26,200 | (8 | %) | 23,060 | 4 | % | ||||||||||
| Other | 60,215 | 51,603 | 17 | % | 54,606 | 10 | % | ||||||||||
| Total expense | 4,858,904 | 4,671,119 | 4 | % | 4,586,088 | 6 | % | ||||||||||
| INCOME (LOSS) BEFORE PROVISION FOR (BENEFIT FROM) INCOME TAXES | 485,126 | 515,504 | (6 | %) | (34,111) | n/m | |||||||||||
| PROVISION FOR (BENEFIT FROM) INCOME TAXES | 128,565 | 136,243 | (6 | %) | (4,594) | n/m | |||||||||||
| NET INCOME (LOSS) | $ | 356,561 | $ | 379,261 | (6 | %) | $ | (29,517) | n/m | ||||||||
| EARNINGS (LOSS) PER SHARE | |||||||||||||||||
| Earnings (loss) per share, basic | $ | 4.53 | $ | 4.75 | (5 | %) | $ | (0.37) | n/m | ||||||||
| Earnings (loss) per share, diluted | $ | 4.52 | $ | 4.74 | (5 | %) | $ | (0.37) | n/m | ||||||||
| Weighted-average shares outstanding, basic | 78,658 | 79,791 | (1 | %) | 80,017 | (2 | %) | ||||||||||
| Weighted-average shares outstanding, diluted | 78,968 | 80,032 | (1 | %) | 80,357 | (2 | %) | ||||||||||
5
LPL Financial Holdings Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
| Nine Months Ended | |||||||||||
| September 30, | |||||||||||
| 2026 | 2025 | Change | |||||||||
| REVENUE | |||||||||||
| Advisory | $ | 8,120,380 | $ | 5,617,482 | 45 | % | |||||
| Commission: | |||||||||||
| Sales-based | 2,176,422 | 1,924,859 | 13 | % | |||||||
| Trailing | 1,498,441 | 1,348,440 | 11 | % | |||||||
| Total commission | 3,674,863 | 3,273,299 | 12 | % | |||||||
| Asset-based: | |||||||||||
| Client cash | 1,350,297 | 1,217,553 | 11 | % | |||||||
| Other asset-based | 1,167,736 | 962,315 | 21 | % | |||||||
| Total asset-based | 2,518,033 | 2,179,868 | 16 | % | |||||||
| Service and fee | 637,918 | 471,753 | 35 | % | |||||||
| Transaction | 242,878 | 195,665 | 24 | % | |||||||
| Interest income, net | 140,406 | 181,651 | (23 | %) | |||||||
| Other | 134,609 | 137,291 | (2 | %) | |||||||
| Total revenue | 15,469,087 | 12,057,009 | 28 | % | |||||||
| EXPENSE | |||||||||||
| Advisory and commission | 10,431,105 | 7,862,364 | 33 | % | |||||||
| Compensation and benefits | 1,082,864 | 1,210,055 | (11 | %) | |||||||
| Promotional | 664,163 | 531,744 | 25 | % | |||||||
| Occupancy and equipment | 393,445 | 458,363 | (14 | %) | |||||||
| Depreciation and amortization | 332,843 | 288,309 | 15 | % | |||||||
| Interest expense on borrowings | 307,628 | 297,793 | 3 | % | |||||||
| Amortization of other intangibles | 210,960 | 154,330 | 37 | % | |||||||
| Brokerage, clearing and exchange | 156,632 | 130,710 | 20 | % | |||||||
| Professional services | 154,388 | 152,925 | 1 | % | |||||||
| Communications and data processing | 73,645 | 63,983 | 15 | % | |||||||
| Other | 176,200 | 154,487 | 14 | % | |||||||
| Total expense | 13,983,873 | 11,305,063 | 24 | % | |||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 1,485,214 | 751,946 | 98 | % | |||||||
| PROVISION FOR INCOME TAXES | 392,988 | 189,641 | 107 | % | |||||||
NET INCOME | $ | 1,092,226 | $ | 562,305 | 94 | % | |||||
| EARNINGS PER SHARE | |||||||||||
| Earnings per share, basic | $ | 13.74 | $ | 7.19 | 91 | % | |||||
| Earnings per share, diluted | $ | 13.68 | $ | 7.15 | 91 | % | |||||
| Weighted-average shares outstanding, basic | 79,515 | 78,220 | 2 | % | |||||||
| Weighted-average shares outstanding, diluted | 79,814 | 78,594 | 2 | % | |||||||
6
LPL Financial Holdings Inc.
Condensed Consolidated Statements of Financial Condition
(In thousands, except share data)
(Unaudited)
| September 30, 2026 | June 30, 2026 | December 31, 2025 | |||||||||
| ASSETS | |||||||||||
| Cash and equivalents | $ | 1,059,019 | $ | 1,275,690 | $ | 1,037,378 | |||||
| Cash and equivalents segregated under federal or other regulations | 1,694,088 | 1,420,167 | 1,792,064 | ||||||||
| Restricted cash | 149,970 | 232,889 | 225,298 | ||||||||
| Receivables from clients, net | 1,119,673 | 994,139 | 803,206 | ||||||||
| Receivables from brokers, dealers and clearing organizations | 110,715 | 244,302 | 70,897 | ||||||||
| Advisor loans, net | 3,979,817 | 3,889,372 | 3,681,512 | ||||||||
| Other receivables, net | 1,323,879 | 1,427,985 | 1,203,539 | ||||||||
Investment securities ($140,282, $188,006, and $76,108 at fair value at September 30, 2026, June 30, 2026, and December 31, 2025, respectively) | 155,287 | 203,499 | 91,528 | ||||||||
| Property and equipment, net | 1,681,641 | 1,569,647 | 1,409,376 | ||||||||
| Goodwill | 2,699,747 | 2,681,661 | 2,644,723 | ||||||||
| Other intangibles, net | 3,472,226 | 3,433,597 | 3,330,788 | ||||||||
| Other assets | 2,424,558 | 2,418,172 | 2,202,444 | ||||||||
| Total assets | $ | 19,870,620 | $ | 19,791,120 | $ | 18,492,753 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| LIABILITIES: | |||||||||||
| Client payables | $ | 2,256,906 | $ | 2,256,333 | $ | 2,308,275 | |||||
| Payables to brokers, dealers and clearing organizations | 217,055 | 599,397 | 150,520 | ||||||||
| Accrued advisory and commission expenses payable | 403,041 | 381,255 | 361,623 | ||||||||
| Corporate debt and other borrowings, net | 7,802,917 | 7,460,510 | 7,258,694 | ||||||||
| Accounts payable and accrued liabilities | 782,312 | 812,156 | 821,641 | ||||||||
| Other liabilities | 2,596,071 | 2,524,629 | 2,247,515 | ||||||||
| Total liabilities | 14,058,302 | 14,034,280 | 13,148,268 | ||||||||
| STOCKHOLDERS’ EQUITY: | |||||||||||
Common stock, $0.001 par value; 600,000,000 shares authorized; 136,850,801, 136,822,289, and 136,637,544 shares issued at September 30, 2026, June 30, 2026, and December 31, 2025, respectively | 137 | 137 | 136 | ||||||||
| Additional paid-in capital | 3,924,639 | 3,898,694 | 3,843,017 | ||||||||
Treasury stock, at cost — 58,540,091, 57,660,516, and 56,576,672 shares at September 30, 2026, June 30, 2026, and December 31, 2025, respectively | (4,968,083) | (4,664,666) | (4,333,725) | ||||||||
| Retained earnings | 6,855,625 | 6,522,675 | 5,835,057 | ||||||||
| Total stockholders’ equity | 5,812,318 | 5,756,840 | 5,344,485 | ||||||||
| Total liabilities and stockholders’ equity | $ | 19,870,620 | $ | 19,791,120 | $ | 18,492,753 | |||||
7
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.
| Quarterly Results | |||||||||||||||||
| Q3 2026 | Q2 2026 | Change | Q3 2025 | Change | |||||||||||||
Gross Profit(5) | |||||||||||||||||
| Advisory | $ | 2,872,928 | $ | 2,632,405 | 9 | % | $ | 2,210,499 | 30 | % | |||||||
| Trailing commissions | 507,904 | 503,918 | 1 | % | 492,426 | 3 | % | ||||||||||
| Sales-based commissions | 742,852 | 728,155 | 2 | % | 695,029 | 7 | % | ||||||||||
| Advisory fees and commissions | 4,123,684 | 3,864,478 | 7 | % | 3,397,954 | 21 | % | ||||||||||
Production-based payout(6) | (3,627,962) | (3,378,961) | 7 | % | (2,972,256) | 22 | % | ||||||||||
| Advisory fees and commissions, net of payout | 495,722 | 485,517 | 2 | % | 425,698 | 16 | % | ||||||||||
Client cash(7) | 472,282 | 456,945 | 3 | % | 441,576 | 7 | % | ||||||||||
Other asset-based(8) | 400,613 | 391,643 | 2 | % | 354,090 | 13 | % | ||||||||||
| Service and fee | 218,055 | 208,879 | 4 | % | 174,715 | 25 | % | ||||||||||
| Transaction | 79,120 | 83,216 | (5 | %) | 67,260 | 18 | % | ||||||||||
Interest income, net(9) | 37,853 | 33,027 | 15 | % | 47,468 | (20 | %) | ||||||||||
Other revenue(10) | 7,390 | 11,054 | (33 | %) | 11,821 | (37 | %) | ||||||||||
| Total net advisory fees and commissions and attachment revenue | 1,711,035 | 1,670,281 | 2 | % | 1,522,628 | 12 | % | ||||||||||
| Brokerage, clearing and exchange expense | (49,139) | (52,018) | (6 | %) | (43,282) | 14 | % | ||||||||||
Gross Profit(5) | 1,661,896 | 1,618,263 | 3 | % | 1,479,346 | 12 | % | ||||||||||
| G&A Expense | |||||||||||||||||
Core G&A(11) | 532,205 | 519,272 | 2 | % | 477,323 | 11 | % | ||||||||||
Transition assistance loan amortization(12) | 150,009 | 142,335 | 5 | % | 104,760 | 43 | % | ||||||||||
Promotional (ongoing)(12)(13)(14) | 87,943 | 79,123 | 11 | % | 97,103 | (9 | %) | ||||||||||
| Employee share-based compensation | 21,109 | 22,701 | (7 | %) | 18,627 | 13 | % | ||||||||||
Regulatory charges | 6,390 | 8,158 | (22 | %) | 6,744 | (5 | %) | ||||||||||
Acquisition costs(14) | 83,149 | 48,977 | 70 | % | 538,177 | (85 | %) | ||||||||||
| Total G&A | 880,805 | 820,566 | 7 | % | 1,242,734 | (29 | %) | ||||||||||
EBITDA(15) | 781,091 | 797,697 | (2 | %) | 236,612 | n/m | |||||||||||
| Interest expense on borrowings | 105,834 | 101,502 | 4 | % | 106,295 | — | % | ||||||||||
| Depreciation and amortization | 117,287 | 109,805 | 7 | % | 99,722 | 18 | % | ||||||||||
| Amortization of other intangibles | 72,844 | 70,886 | 3 | % | 64,706 | 13 | % | ||||||||||
| INCOME (LOSS) BEFORE PROVISION FOR (BENEFIT FROM) INCOME TAXES | 485,126 | 515,504 | (6 | %) | (34,111) | n/m | |||||||||||
| PROVISION FOR (BENEFIT FROM) INCOME TAXES | 128,565 | 136,243 | (6 | %) | (4,594) | n/m | |||||||||||
| NET INCOME (LOSS) | $ | 356,561 | $ | 379,261 | (6 | %) | $ | (29,517) | n/m | ||||||||
| Earnings (loss) per share, diluted | $ | 4.52 | $ | 4.74 | (5 | %) | $ | (0.37) | n/m | ||||||||
| Weighted-average shares outstanding, diluted | 78,968 | 80,032 | (1 | %) | 80,357 | (2 | %) | ||||||||||
Adjusted EBITDA(15) | $ | 864,240 | $ | 846,674 | 2 | % | $ | 774,789 | 12 | % | |||||||
Adjusted pre-tax income(16) | $ | 641,119 | $ | 635,367 | 1 | % | $ | 568,772 | 13 | % | |||||||
Adjusted EPS(17) | $ | 5.97 | $ | 5.84 | 2 | % | $ | 5.20 | 15 | % | |||||||
8
LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)
| Q3 2026 | Q2 2026 | Change | Q3 2025 | Change | |||||||||||||
| Market Drivers | |||||||||||||||||
| S&P 500 Index (end of period) | 7,652 | 7,499 | 2% | 6,688 | 14% | ||||||||||||
| Russell 2000 Index (end of period) | 2,797 | 3,024 | (8%) | 2,436 | 15% | ||||||||||||
| Fed Funds daily effective rate (average bps) | 367 | 363 | 4bps | 430 | (63bps) | ||||||||||||
Client Assets(18) | |||||||||||||||||
Advisory | $ | 1,561.0 | $ | 1,548.4 | 1% | $ | 1,346.9 | 16% | |||||||||
Brokerage | 1,003.6 | 1,014.3 | (1%) | 967.7 | 4% | ||||||||||||
Total Client Assets | $ | 2,564.6 | $ | 2,562.7 | —% | $ | 2,314.5 | 11% | |||||||||
Advisory as a % of Total Client Assets | 60.9% | 60.4% | 50bps | 58.2% | 270bps | ||||||||||||
| Assets by Platform | |||||||||||||||||
Corporate RIA advisory(19) | $ | 1,202.7 | $ | 1,190.8 | 1% | $ | 1,022.1 | 18% | |||||||||
Independent RIA advisory(19) | 358.3 | 357.6 | —% | 324.8 | 10% | ||||||||||||
Brokerage | 1,003.6 | 1,014.3 | (1%) | 967.7 | 4% | ||||||||||||
Total Client Assets | $ | 2,564.6 | $ | 2,562.7 | —% | $ | 2,314.5 | 11% | |||||||||
| Centrally Managed Assets | |||||||||||||||||
Centrally managed assets(20) | $ | 250.4 | $ | 245.6 | 2% | $ | 203.1 | 23% | |||||||||
| Centrally Managed as a % of Total Advisory Assets | 16.0% | 15.9% | 10bps | 15.1% | 90bps | ||||||||||||
9
LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)
| Q3 2026 | Q2 2026 | Change | Q3 2025 | Change | |||||||||||||
Organic Net New Assets (NNA)(21) | |||||||||||||||||
Advisory | $ | 33.1 | $ | 30.2 | n/m | $ | 29.6 | n/m | |||||||||
Brokerage | (4.0) | (7.1) | n/m | 3.1 | n/m | ||||||||||||
Total Organic NNA | $ | 29.1 | $ | 23.1 | n/m | $ | 32.7 | n/m | |||||||||
Acquired NNA(21) | |||||||||||||||||
Advisory | $ | — | $ | 0.5 | n/m | $ | 199.4 | n/m | |||||||||
Brokerage | — | — | n/m | 75.7 | n/m | ||||||||||||
Total Acquired NNA | $ | — | $ | 0.5 | n/m | $ | 275.0 | n/m | |||||||||
Total NNA(21) | |||||||||||||||||
Advisory | $ | 33.1 | $ | 30.7 | n/m | $ | 229.0 | n/m | |||||||||
Brokerage | (4.0) | (7.1) | n/m | 78.7 | n/m | ||||||||||||
Total NNA | $ | 29.1 | $ | 23.6 | n/m | $ | 307.7 | n/m | |||||||||
Net brokerage to advisory conversions(22) | $ | 7.4 | $ | 8.8 | n/m | $ | 8.0 | n/m | |||||||||
Organic advisory NNA annualized growth(23) | 8.5% | 8.7% | n/m | 11.2% | n/m | ||||||||||||
Total organic NNA annualized growth(23) | 4.5% | 4.0% | n/m | 6.8% | n/m | ||||||||||||
Total Organic Advisory NNA(21) | |||||||||||||||||
Organic corporate RIA advisory | $ | 34.5 | $ | 27.9 | n/m | $ | 29.0 | n/m | |||||||||
Organic independent RIA advisory | (1.4) | 2.3 | n/m | 0.6 | n/m | ||||||||||||
Total Organic Advisory NNA | $ | 33.1 | $ | 30.2 | n/m | $ | 29.6 | n/m | |||||||||
Organic centrally managed NNA(21) | $ | 8.4 | $ | 7.9 | n/m | $ | 9.9 | n/m | |||||||||
Net buy (sell) activity(24) | $ | 41.9 | $ | 39.7 | n/m | $ | 41.8 | n/m | |||||||||
Note: Totals may not foot due to rounding.
10
LPL Financial Holdings Inc.
Client Cash Data
(Dollars in thousands, except where noted)
(Unaudited)
| Q3 2026 | Q2 2026 | Change | Q3 2025 | Change | |||||||||||||
Client Cash Balances (in billions)(25) | |||||||||||||||||
| Insured cash account sweep | $ | 37.8 | $ | 38.4 | (2%) | $ | 36.9 | 2% | |||||||||
| Deposit cash account sweep | 16.0 | 15.6 | 3% | 13.0 | 23% | ||||||||||||
| Total Bank Sweep | 53.8 | 54.1 | (1%) | 49.9 | 8% | ||||||||||||
| Money market sweep | 1.0 | 1.1 | (9%) | 4.2 | (76%) | ||||||||||||
| Total Client Cash Sweep Held by Third Parties | 54.8 | 55.2 | (1%) | 54.1 | 1% | ||||||||||||
Client cash account (CCA) | 1.8 | 1.7 | 6% | 1.8 | —% | ||||||||||||
| Total Client Cash Balances | $ | 56.6 | $ | 56.9 | (1%) | $ | 55.8 | 1% | |||||||||
| Client Cash Balances as a % of Total Assets | 2.2% | 2.2% | —bps | 2.4% | (20bps) | ||||||||||||
Note: Totals may not foot due to rounding.
Three Months Ended | |||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||
Interest-Earning Assets | Average Balance (in billions) | Revenue | Net Yield (bps)(26) | Average Balance (in billions) | Revenue | Net Yield (bps)(26) | Average Balance (in billions) | Revenue | Net Yield (bps)(26) | ||||||||||||||||||||
| Insured cash account sweep | $ | 37.1 | $ | 328,870 | 352 | $ | 37.7 | $ | 315,814 | 336 | $ | 34.7 | $ | 307,118 | 351 | ||||||||||||||
| Deposit cash account sweep | 15.1 | 131,642 | 346 | 14.9 | 126,571 | 341 | 11.8 | 118,957 | 401 | ||||||||||||||||||||
| Total Bank Sweep | 52.2 | 460,512 | 350 | 52.6 | 442,385 | 337 | 46.5 | 426,075 | 364 | ||||||||||||||||||||
| Money market sweep | 1.0 | 959 | 37 | 1.3 | 1,116 | 35 | 3.8 | 2,115 | 22 | ||||||||||||||||||||
| Total Client Cash Held By Third Parties | 53.2 | 461,471 | 344 | 53.9 | 443,501 | 330 | 50.3 | 428,190 | 338 | ||||||||||||||||||||
Client cash account (CCA) | 1.6 | 10,811 | 265 | 1.8 | 13,444 | 303 | 1.5 | 13,386 | 365 | ||||||||||||||||||||
| Total Client Cash | 54.8 | 472,282 | 342 | 55.7 | 456,945 | 329 | 51.8 | 441,576 | 339 | ||||||||||||||||||||
| Margin receivables | 0.9 | 17,037 | 792 | 0.8 | 15,602 | 796 | 0.7 | 13,910 | 820 | ||||||||||||||||||||
| Other interest revenue | 1.6 | 20,816 | 512 | 1.4 | 17,425 | 514 | 2.9 | 33,558 | 458 | ||||||||||||||||||||
| Total Client Cash and Interest Income, Net | $ | 57.3 | $ | 510,135 | 353 | $ | 57.9 | $ | 489,972 | 340 | $ | 55.3 | $ | 489,044 | 351 | ||||||||||||||
Note: Totals may not foot due to rounding.
11
LPL Financial Holdings Inc.
Monthly Metrics
(Dollars in billions, except where noted)
(Unaudited)
| September 2026 | August 2026 | Change | July 2026 | June 2026 | |||||||||||||
Client Assets(18) | |||||||||||||||||
Advisory | $ | 1,561.0 | $ | 1,582.5 | (1%) | $ | 1,544.2 | $ | 1,548.4 | ||||||||
Brokerage | 1,003.6 | 1,019.4 | (2%) | 1,002.4 | 1,014.3 | ||||||||||||
Total Client Assets | $ | 2,564.6 | $ | 2,601.9 | (1%) | $ | 2,546.6 | $ | 2,562.7 | ||||||||
Organic NNA(21) | |||||||||||||||||
Advisory | $ | 10.4 | $ | 12.5 | n/m | $ | 10.2 | $ | 13.3 | ||||||||
Brokerage | (2.2) | 0.9 | n/m | (2.8) | (2.0) | ||||||||||||
Total Organic NNA | $ | 8.2 | $ | 13.5 | n/m | $ | 7.4 | $ | 11.3 | ||||||||
Acquired NNA(21) | |||||||||||||||||
Advisory | $ | — | $ | — | n/m | $ | — | $ | 0.5 | ||||||||
Brokerage | — | — | n/m | — | — | ||||||||||||
Total Acquired NNA | $ | — | $ | — | n/m | $ | — | $ | 0.5 | ||||||||
Total NNA(21) | |||||||||||||||||
Advisory | $ | 10.4 | $ | 12.5 | n/m | $ | 10.2 | $ | 13.8 | ||||||||
Brokerage | (2.2) | 0.9 | n/m | (2.8) | (2.0) | ||||||||||||
Total NNA | $ | 8.2 | $ | 13.5 | n/m | $ | 7.4 | $ | 11.8 | ||||||||
Net brokerage to advisory conversions(22) | $ | 2.5 | $ | 2.3 | n/m | $ | 2.6 | $ | 3.1 | ||||||||
Client Cash Balances(25) | |||||||||||||||||
| Insured cash account sweep | $ | 37.8 | $ | 37.1 | 2% | $ | 36.8 | $ | 38.4 | ||||||||
| Deposit cash account sweep | 16.0 | 15.1 | 6% | 15.0 | 15.6 | ||||||||||||
| Total Bank Sweep | 53.8 | 52.2 | 3% | 51.8 | 54.1 | ||||||||||||
| Money market sweep | 1.0 | 1.0 | —% | 1.1 | 1.1 | ||||||||||||
| Total Client Cash Sweep Held by Third Parties | 54.8 | 53.1 | 3% | 52.8 | 55.2 | ||||||||||||
Client cash account (CCA) | 1.8 | 1.2 | 50% | 1.5 | 1.7 | ||||||||||||
| Total Client Cash Balances | $ | 56.6 | $ | 54.4 | 4% | $ | 54.3 | $ | 56.9 | ||||||||
Net buy (sell) activity(24) | $ | 13.3 | $ | 13.8 | n/m | $ | 14.7 | $ | 13.1 | ||||||||
| Market Drivers | |||||||||||||||||
| S&P 500 Index (end of period) | 7,652 | 7,686 | —% | 7,490 | 7,499 | ||||||||||||
| Russell 2000 Index (end of period) | 2,797 | 2,956 | (5%) | 2,931 | 3,024 | ||||||||||||
| Fed Funds daily effective rate (average bps) | 375 | 363 | 12bps | 363 | 363 | ||||||||||||
Note: Totals may not foot due to rounding.
12
LPL Financial Holdings Inc.
Financial Measures
(Dollars in thousands, except where noted)
(Unaudited)
| Q3 2026 | Q2 2026 | Change | Q3 2025 | Change | |||||||||||||
| Commission Revenue by Product | |||||||||||||||||
| Annuities | $ | 748,473 | $ | 727,746 | 3% | $ | 713,900 | 5% | |||||||||
| Mutual funds | 261,833 | 262,044 | —% | 258,167 | 1% | ||||||||||||
| Fixed income | 85,064 | 82,014 | 4% | 66,550 | 28% | ||||||||||||
| Equities | 51,314 | 58,751 | (13%) | 51,475 | —% | ||||||||||||
| Other | 104,072 | 101,518 | 3% | 97,363 | 7% | ||||||||||||
| Total commission revenue | $ | 1,250,756 | $ | 1,232,073 | 2% | $ | 1,187,455 | 5% | |||||||||
| Commission Revenue by Sales-based and Trailing | |||||||||||||||||
| Sales-based commissions | |||||||||||||||||
| Annuities | $ | 469,397 | $ | 444,791 | 6% | $ | 438,927 | 7% | |||||||||
| Fixed income | 85,064 | 82,014 | 4% | 66,550 | 28% | ||||||||||||
| Equities | 51,314 | 58,751 | (13%) | 51,475 | —% | ||||||||||||
| Mutual funds | 48,527 | 53,993 | (10%) | 54,235 | (11%) | ||||||||||||
| Other | 88,550 | 88,606 | —% | 83,842 | 6% | ||||||||||||
| Total sales-based commissions | $ | 742,852 | $ | 728,155 | 2% | $ | 695,029 | 7% | |||||||||
| Trailing commissions | |||||||||||||||||
| Annuities | $ | 279,076 | $ | 282,955 | (1%) | $ | 274,973 | 1% | |||||||||
| Mutual funds | 213,306 | 208,051 | 3% | 203,932 | 5% | ||||||||||||
| Other | 15,522 | 12,912 | 20% | 13,521 | 15% | ||||||||||||
| Total trailing commissions | $ | 507,904 | $ | 503,918 | 1% | $ | 492,426 | 3% | |||||||||
| Total commission revenue | $ | 1,250,756 | $ | 1,232,073 | 2% | $ | 1,187,455 | 5% | |||||||||
Payout Rate(6) | 87.98% | 87.44% | 54bps | 87.47% | 51bps | ||||||||||||
13
LPL Financial Holdings Inc.
Capital Management Measures
(Dollars in thousands, except where noted)
(Unaudited)
| Q3 2026 | Q2 2026 | Q4 2025 | |||||||||
| Cash and equivalents | $ | 1,059,019 | $ | 1,275,690 | $ | 1,037,378 | |||||
| Cash at regulated subsidiaries | (985,736) | (1,221,009) | (925,356) | ||||||||
| Excess cash at regulated subsidiaries per the Credit Agreement | 489,476 | 375,379 | 357,693 | ||||||||
Corporate Cash(2) | $ | 562,759 | $ | 430,060 | $ | 469,715 | |||||
Corporate Cash(2) | |||||||||||
Cash at LPL Holdings, Inc. | $ | 44,960 | $ | 16,807 | $ | 19,368 | |||||
| Excess cash at regulated subsidiaries per the Credit Agreement | 489,476 | 375,379 | 357,693 | ||||||||
| Cash at non-regulated subsidiaries | 28,323 | 37,874 | 92,654 | ||||||||
| Corporate Cash | $ | 562,759 | $ | 430,060 | $ | 469,715 | |||||
| Leverage Ratio | |||||||||||
| Total debt | $ | 7,836,000 | $ | 7,496,000 | $ | 7,299,000 | |||||
| Total corporate cash | 562,759 | 430,060 | 469,715 | ||||||||
| Credit Agreement Net Debt | $ | 7,273,241 | $ | 7,065,940 | $ | 6,829,285 | |||||
Credit Agreement EBITDA (trailing twelve months)(27) | $ | 3,771,437 | $ | 3,695,539 | $ | 3,501,832 | |||||
| Leverage Ratio | 1.93x | 1.91x | 1.95x | ||||||||
| September 30, 2026 | |||||||||||||||||||||||||||||
| Total Debt | Balance | Current Applicable Margin | Interest Rate | Maturity | |||||||||||||||||||||||||
Revolving Credit Facility(a) | $ | 616,000 | ABR+37.5 bps / SOFR+147.5 bps | 5.299 | % | 5/20/2029 | |||||||||||||||||||||||
| Broker-Dealer Revolving Credit Facility | — | SOFR+125 bps | 5.150 | % | 5/17/2027 | ||||||||||||||||||||||||
Senior Unsecured Term Loan A | 1,020,000 | SOFR+125 bps(b) | 5.151 | % | 12/5/2028 | ||||||||||||||||||||||||
| Senior Unsecured Notes | 500,000 | 5.700% Fixed | 5.700 | % | 5/20/2027 | ||||||||||||||||||||||||
| Senior Unsecured Notes | 400,000 | 4.625% Fixed | 4.625 | % | 11/15/2027 | ||||||||||||||||||||||||
| Senior Unsecured Notes | 500,000 | 4.900% Fixed | 4.900 | % | 4/3/2028 | ||||||||||||||||||||||||
| Senior Unsecured Notes | 750,000 | 6.750% Fixed | 6.750 | % | 11/17/2028 | ||||||||||||||||||||||||
| Senior Unsecured Notes | 900,000 | 4.000% Fixed | 4.000 | % | 3/15/2029 | ||||||||||||||||||||||||
| Senior Unsecured Notes | 750,000 | 5.200% Fixed | 5.200 | % | 3/15/2030 | ||||||||||||||||||||||||
| Senior Unsecured Notes | 500,000 | 5.150% Fixed | 5.150 | % | 6/15/2030 | ||||||||||||||||||||||||
| Senior Unsecured Notes | 400,000 | 4.375% Fixed | 4.375 | % | 5/15/2031 | ||||||||||||||||||||||||
| Senior Unsecured Notes | 500,000 | 6.000% Fixed | 6.000 | % | 5/20/2034 | ||||||||||||||||||||||||
| Senior Unsecured Notes | 500,000 | 5.650% Fixed | 5.650 | % | 3/15/2035 | ||||||||||||||||||||||||
| Senior Unsecured Notes | 500,000 | 5.750% Fixed | 5.750 | % | 6/15/2035 | ||||||||||||||||||||||||
| Total / Weighted Average | $ | 7,836,000 | 5.265 | % | |||||||||||||||||||||||||
(a)Unsecured borrowing capacity of $2.25 billion at LPL Holdings, Inc.
(b)The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps.
14
LPL Financial Holdings Inc.
Key Business and Financial Metrics
(Dollars in thousands, except where noted)
(Unaudited)
| Q3 2026 | Q2 2026 | Change | Q3 2025 | Change | |||||||||||||
Business Metrics | |||||||||||||||||
| Advisors | 32,597 | 32,475 | —% | 32,128 | 1% | ||||||||||||
| Net new advisors | 122 | 331 | n/m | 2,775 | n/m | ||||||||||||
Annualized advisory fees and commissions per advisor(28) | $ | 507 | $ | 478 | 6% | $ | 442 | 15% | |||||||||
Average total assets per advisor ($ in millions)(29) | $ | 78.7 | $ | 78.9 | —% | $ | 72.0 | 9% | |||||||||
| Total client accounts (in millions) | 11.9 | 11.8 | 1% | 11.4 | 4% | ||||||||||||
Recruited AUM ($ in billions) | $ | 24.1 | $ | 24.9 | (3%) | $ | 32.6 | (26%) | |||||||||
Employees | 10,417 | 10,081 | 3% | 10,116 | 3% | ||||||||||||
AUM retention rate (quarterly annualized)(30) | 97.4% | 97.4% | —bps | 96.4% | 100bps | ||||||||||||
| Capital Management | |||||||||||||||||
Capital expenditures ($ in millions)(31) | $ | 229.7 | $ | 199.4 | 15% | $ | 142.2 | 62% | |||||||||
Acquisitions, net ($ in millions)(32) | $ | 102.2 | $ | 102.7 | —% | $ | 1,526.3 | (93%) | |||||||||
| Share repurchases ($ in millions) | $ | 300.6 | $ | 309.5 | (3%) | $ | — | 100% | |||||||||
| Dividends ($ in millions) | 23.6 | 24.0 | (2%) | 24.0 | (2%) | ||||||||||||
| Total Capital Returned ($ in millions) | $ | 324.2 | $ | 333.5 | (3%) | $ | 24.0 | n/m | |||||||||
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 valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.
Adjusted EPS and Adjusted net income
Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income (loss) plus the after-tax impact of amortization of other intangibles and acquisition costs, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items and acquisition costs that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income (loss), earnings (loss) per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income (loss) and earnings (loss) per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release.
Gross profit
Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide
15
investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release.
Core G&A
Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; transition assistance loan amortization; promotional (ongoing); acquisition costs; employee share-based compensation; and regulatory charges. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company's total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort.
EBITDA and Adjusted EBITDA
EBITDA is defined as net income (loss) plus interest expense on borrowings, provision for (benefit from) income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income (loss) or any other performance measure derived in accordance with GAAP. For a reconciliation of net income (loss) to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release.
Adjusted pre-tax income
Adjusted pre-tax income is defined as income (loss) before provision for (benefit from) income taxes plus amortization of other intangibles and acquisition costs. The Company presents adjusted pre-tax income because management believes that it can provide investors with useful insight into the Company's core operating performance by excluding non-cash items and acquisition costs that management does not believe impact the Company's ongoing operations. Adjusted pre-tax income is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to income (loss) before provision for (benefit from) income taxes or any other performance measure derived in accordance with GAAP. For a reconciliation of income (loss) before provision for (benefit from) income taxes to adjusted pre-tax income, please see the endnote disclosures in this release.
Credit Agreement EBITDA
Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company's amended and restated credit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release.
Endnote Disclosures
(1) Represents the estimated total client assets expected to transition to the Company's primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and
16
fully verified by LPL Financial. The actual transition of client assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate.
(2) 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 Financial, LPL Enterprise, LLC, The Private Trust Company, N.A., and Commonwealth Equity Services, LLC ("CES"), in excess of the capital requirements of the Company's Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries.
(3) Compliance with the Leverage Ratio is only required under the Company's revolving credit facility.
(4) The Company was named a Top RIA custodian (Cerulli Associates, 2025 U.S. RIA Marketplace Report); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in Market Share of AUM from Financial Institutions and No. 1 in Share of Advisors (Cerulli Associates, 2025 U.S. Broker-Dealer Marketplace Report). Commonwealth and the Company ranked No. 1 and No. 2, respectively, in the JD Power 2026 Independent Advisor Satisfaction survey.
(5) Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands):
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
Total revenue | $ | 5,344,030 | 5,186,623 | $ | 4,551,977 | ||||||
| Advisory and commission expense | 3,632,732 | 3,507,164 | 3,025,274 | ||||||||
| Brokerage, clearing and exchange expense | 49,139 | 52,018 | 43,282 | ||||||||
| Employee deferred compensation | 263 | 9,178 | 4,075 | ||||||||
Gross profit | $ | 1,661,896 | $ | 1,618,263 | $ | 1,479,346 | |||||
(6) Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate):
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
| Advisory and commission expense | $ | 3,632,732 | $ | 3,507,164 | $ | 3,025,274 | |||||
Plus (Less): Advisor deferred compensation | (4,770) | (128,203) | (53,018) | ||||||||
| Production-based payout | $ | 3,627,962 | $ | 3,378,961 | $ | 2,972,256 | |||||
| Advisory and commission revenue | $ | 4,123,684 | $ | 3,864,478 | $ | 3,397,954 | |||||
| Payout rate | 87.98% | 87.44% | 87.47% | ||||||||
(7) Below is a reconciliation of client cash revenue per Management's Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company's condensed consolidated statements of income for the periods presented (in thousands):
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
Client cash on Management's Statements of Operations | $ | 472,282 | $ | 456,945 | $ | 441,576 | |||||
Interest income on CCA balances segregated under federal or other regulations(9) | (10,811) | (13,444) | (13,386) | ||||||||
Client cash on Condensed Consolidated Statements of Income | $ | 461,471 | $ | 443,501 | $ | 428,190 | |||||
(8) Consists of revenue from the Company's sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs.
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(9) Below is a reconciliation of interest income, net per Management's Statements of Operations to interest income, net on the Company's condensed consolidated statements of income for the periods presented (in thousands):
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
Interest income, net on Management's Statements of Operations | $ | 37,853 | $ | 33,027 | $ | 47,468 | |||||
Interest income on CCA balances segregated under federal or other regulations(7) | 10,811 | 13,444 | 13,386 | ||||||||
Interest income on deferred compensation(10) | 35 | 56 | 5 | ||||||||
Interest income, net on Condensed Consolidated Statements of Income | $ | 48,699 | $ | 46,527 | $ | 60,859 | |||||
(10) Below is a reconciliation of other revenue per Management's Statements of Operations to other revenue on the Company's condensed consolidated statements of income for the periods presented (in thousands):
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
Other revenue on Management's Statements of Operations | $ | 7,390 | $ | 11,054 | $ | 11,821 | |||||
Interest income on deferred compensation(9) | (35) | (56) | (5) | ||||||||
| Deferred compensation | 5,033 | 137,381 | 57,093 | ||||||||
Other revenue on Condensed Consolidated Statements of Income | $ | 12,388 | $ | 148,379 | $ | 68,909 | |||||
(11) Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company's total expense to core G&A for the periods presented (in thousands):
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
| Core G&A Reconciliation | |||||||||||
| Total expense | $ | 4,858,904 | $ | 4,671,119 | $ | 4,586,088 | |||||
| Advisory and commission | (3,632,732) | (3,507,164) | (3,025,274) | ||||||||
| Depreciation and amortization | (117,287) | (109,805) | (99,722) | ||||||||
| Interest expense on borrowings | (105,834) | (101,502) | (106,295) | ||||||||
| Brokerage, clearing and exchange | (49,139) | (52,018) | (43,282) | ||||||||
| Amortization of other intangibles | (72,844) | (70,886) | (64,706) | ||||||||
Employee deferred compensation | (263) | (9,178) | (4,075) | ||||||||
| Total G&A | 880,805 | 820,566 | 1,242,734 | ||||||||
Transition assistance loan amortization(12) | (150,009) | (142,335) | (104,760) | ||||||||
Promotional (ongoing)(12)(13)(14) | (87,943) | (79,123) | (97,103) | ||||||||
Acquisition costs(14) | (83,149) | (48,977) | (538,177) | ||||||||
| Employee share-based compensation | (21,109) | (22,701) | (18,627) | ||||||||
Regulatory charges | (6,390) | (8,158) | (6,744) | ||||||||
| Core G&A | $ | 532,205 | $ | 519,272 | $ | 477,323 | |||||
(12) During the fourth quarter of 2025, the Company updated its definition of Promotional (ongoing) to exclude transition assistance loan amortization. As a result, transition assistance loan amortization is now disclosed as a separate line on Management's Statements of Operations and in the Core G&A reconciliation. Prior period disclosures have been updated to reflect these changes as applicable.
(13) Promotional (ongoing) includes $14.2 million, $13.5 million and $19.0 million for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the condensed consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs.
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(14) Acquisition costs include the costs to set up, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands):
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
| Acquisition costs | |||||||||||
Compensation and benefits(a) | $ | 31,891 | $ | 20,231 | $ | 257,607 | |||||
Occupancy and equipment(a) | 11,789 | 4,618 | 197,567 | ||||||||
Promotional(13) | 12,009 | 12,016 | 25,664 | ||||||||
| Professional services | 14,167 | 10,923 | 9,674 | ||||||||
Change in fair value of contingent consideration(33) | 9,461 | (2,794) | 2,676 | ||||||||
| Other | 3,832 | 3,983 | 44,989 | ||||||||
| Acquisition costs | $ | 83,149 | $ | 48,977 | $ | 538,177 | |||||
(a) During the three months ended September 30, 2025, the Company incurred $419.0 million of acquisition costs at the Commonwealth closing. This primarily includes $228.4 million of costs related to transaction bonuses and the acceleration of unvested equity awards which were classified as Compensation and benefits and $190.1 million of costs related to certain contract termination fees which were classified as Occupancy and equipment.
(15) EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of net income (loss) to EBITDA and adjusted EBITDA for the periods presented (in thousands):
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
| EBITDA and adjusted EBITDA Reconciliation | |||||||||||
| Net income (loss) | $ | 356,561 | $ | 379,261 | $ | (29,517) | |||||
| Interest expense on borrowings | 105,834 | 101,502 | 106,295 | ||||||||
| Provision for (benefit from) income taxes | 128,565 | 136,243 | (4,594) | ||||||||
| Depreciation and amortization | 117,287 | 109,805 | 99,722 | ||||||||
| Amortization of other intangibles | 72,844 | 70,886 | 64,706 | ||||||||
| EBITDA | $ | 781,091 | $ | 797,697 | $ | 236,612 | |||||
Acquisition costs(14) | 83,149 | 48,977 | 538,177 | ||||||||
| Adjusted EBITDA | $ | 864,240 | $ | 846,674 | $ | 774,789 | |||||
(16) Adjusted pre-tax income is a non-GAAP financial measure. Please see a description of adjusted pre-tax income under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of income (loss) before provision for (benefit from) income taxes to adjusted pre-tax income for the periods presented (in thousands):
(a) Calculated by dividing adjusted pre-tax income by gross profit.
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
| Income (loss) before provision for (benefit from) income taxes | $ | 485,126 | $ | 515,504 | $ | (34,111) | |||||
| Amortization of other intangibles | 72,844 | 70,886 | 64,706 | ||||||||
Acquisition costs(14) | 83,149 | 48,977 | 538,177 | ||||||||
| Adjusted pre-tax income | $ | 641,119 | $ | 635,367 | $ | 568,772 | |||||
Adjusted pre-tax margin(a) | 38.6% | 39.3% | 38.4% | ||||||||
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(17) Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income (loss) and earnings (loss) per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data):
| Q3 2026 | Q2 2026 | Q3 2025 | ||||||||||||||||||
| Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||||||||||||
| Net income (loss) / earnings (loss) per diluted share | $ | 356,561 | $ | 4.52 | $ | 379,261 | $ | 4.74 | $ | (29,517) | $ | (0.37) | ||||||||
| Amortization of other intangibles | 72,844 | 0.92 | 70,886 | 0.89 | 64,706 | 0.81 | ||||||||||||||
Acquisition costs(14) | 83,149 | 1.05 | 48,977 | 0.61 | 538,177 | 6.70 | ||||||||||||||
| Tax benefit | (41,281) | (0.52) | (31,442) | (0.39) | (155,149) | (1.93) | ||||||||||||||
| Adjusted net income / adjusted EPS | $ | 471,273 | $ | 5.97 | $ | 467,682 | $ | 5.84 | $ | 418,217 | $ | 5.20 | ||||||||
| Diluted share count | 78,968 | 80,032 | 80,357 | |||||||||||||||||
| Note: Totals may not foot due to rounding. | ||||||||||||||||||||
(18) Consists of total assets under custody at the Company's primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to CES.
(19) Assets on the Company's corporate RIA advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company's independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial.
(20) Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.
(21) Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.
(22) During the third quarter of 2026, the Company updated its definition of net brokerage to advisory conversions to include direct assets. Net brokerage to advisory conversions now consists of existing custodied and direct assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage. Prior period disclosures have been updated to reflect these changes as applicable.
(23) Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total assets.
(24) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.
(25) Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the condensed consolidated statements of financial condition. The following table presents purchased money market funds for the periods presented (in billions):
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
| Purchased money market funds | $ | 50.0 | $ | 49.2 | $ | 48.2 | |||||
(26) Calculated by dividing revenue for the period by the average balance during the period.
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(27) EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands):
| Q3 2026 | Q2 2026 | Q4 2025 | ||||||||||||
| EBITDA and Credit Agreement EBITDA Reconciliations | ||||||||||||||
| Net income | $ | 1,392,945 | $ | 1,006,867 | $ | 863,024 | ||||||||
| Interest expense on borrowings | 413,241 | 413,702 | 403,406 | |||||||||||
| Provision for income taxes | 489,830 | 356,671 | 286,483 | |||||||||||
| Depreciation and amortization | 437,968 | 420,403 | 393,434 | |||||||||||
| Amortization of other intangibles | 293,208 | 285,070 | 236,578 | |||||||||||
| EBITDA | $ | 3,027,192 | $ | 2,482,713 | $ | 2,182,925 | ||||||||
| Credit Agreement Adjustments: | ||||||||||||||
Acquisition costs and other(14)(34) | $ | 309,764 | $ | 766,866 | $ | 777,299 | ||||||||
| Employee share-based compensation | 85,487 | 83,005 | 75,956 | |||||||||||
M&A accretion(35) | 345,681 | 359,895 | 462,597 | |||||||||||
| Advisor share-based compensation | 3,313 | 3,060 | 3,055 | |||||||||||
| Credit Agreement EBITDA | $ | 3,771,437 | $ | 3,695,539 | $ | 3,501,832 | ||||||||
(28) Calculated based on the average advisor count from the current period and prior periods.
(29) Calculated based on the end of period total assets divided by end of period advisor count.
(30) Reflects retention of total assets, calculated by deducting quarterly annualized attrition from total assets, divided by the prior quarter total assets.
(31) Capital expenditures represent cash payments for property and equipment during the period.
(32) Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period.
(33) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the condensed consolidated statements of income.
(34) Acquisition costs and other primarily include costs related to acquisitions and costs incurred related to the integration of the strategic relationship with Prudential Advisors.
(35) M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of such acquisition.
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