LPL Financial Holdings Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.27%.
Did LPLA Beat Earnings? Q3 2025 Results
LPL Financial delivered a standout third quarter, reporting adjusted EPS of $5.20 against a consensus estimate of $4.49, a beat of 15.79%, while revenue of $4.55 billion topped expectations by 5.61% and surged 46.4% year-over-year. The defining event of the quarter was the closing of the Commonwealth Financial Network acquisition, which brought approximately $275 billion in acquired net new assets and lifted the deal's estimated run-rate EBITDA to $425 million, driving total advisory and brokerage assets to $2.31 trillion, up 45% year-over-year. On a GAAP basis, the company posted a net loss of $29.52 million, or $0.37 per diluted share, reflecting $419 million in one-time acquisition-related costs. Adjusted net income reached $418.22 million, with adjusted pre-tax income climbing 35% to $568.77 million. Looking ahead, management trimmed its full-year 2025 Core G&A outlook to $1.86 billion to $1.88 billion, and expects Commonwealth's full platform conversion to be completed by Q4 2026, with advisor retention tracking toward its 90% target.
- Commonwealth acquisition closing added $275 billion in acquired net new assets
- Total advisory and brokerage assets grew 45% YoY to $2.3 trillion
- Advisory assets increased 51% YoY to $1.3 trillion, now 58.2% of total assets
- Organic net new assets of $33 billion representing 7% annualized growth
- Recruited assets of $33 billion, up 27% YoY
- Client cash balances increased $10 billion YoY to $56 billion
- Adjusted EPS increased 25% YoY to record $5.20
- Gross profit increased 31% YoY to $1,479 million
- First Horizon onboarded with $17 billion of assets transitioning in Q3
- Annualized advisory fees and commissions per advisor rose 19% YoY to $442K
“Over the past quarter, we continued to make progress against our key priorities, while delivering strong business results and record adjusted earnings per share. We continue to seek opportunities to improve our advisors' efficacy in the market. As advisory services become more central to our clients, we're lowering fees and streamlining pricing to make our platforms the most competitive in the industry. Ensuring that our pricing supports the value that we deliver, next year we will also make targeted fee adjustments that more closely align with industry standards.”
LPL Financial CEO, on the earnings call
Forward Guidance & Outlook
The company lowered its 2025 Core G&A outlook to a range of $1,860-1,880 million, including $165-170 million related to Prudential and Atria, and $160-165 million related to Commonwealth. Commonwealth's estimated run-rate EBITDA increased from $415 million to $425 million, while Atria's estimated run-rate EBITDA increased from $150 million to $155 million. The company expects to complete the Commonwealth conversion in Q4 2026 and is tracking toward its 90% retention target. Management also indicated that targeted fee adjustments more closely aligned with industry standards will be implemented next year.
LPLA YoY Financials
LPLA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.