Financial Data and Key Metrics Changes - Total assets reached a new quarterly high of $1.8 trillion, with record organic net new assets of $71 billion, representing a 16% annualized growth rate [5][14] - Adjusted EPS for Q1 was a record $5.15, with gross profit of $1.273 billion, up $45 million sequentially [6][15] - Adjusted pretax margin was approximately 40%, reflecting strong organic growth and expense discipline [15] Business Line Data and Key Metrics Changes - Recruited assets for Q1 were $39 billion, with $16 billion from WinTrust, contributing to a record $167 billion for the trailing twelve months [8][15] - Traditional independent market added approximately $20 billion in assets during Q1, marking a record for the first quarter [8] - Service and fee revenue was $145 million, up $6 million from Q4, driven by strong organic growth and higher IRA fees [17] Market Data and Key Metrics Changes - Overall asset retention remained industry-leading at 98% for Q1 [9] - Client cash balances ended the quarter at $53 billion, down $2 billion sequentially, primarily due to advisory fees paid during the quarter [16] - ICA yield was 337 basis points in Q1, up two basis points from Q4, driven by higher yields on fixed rate contract renewals [17] Company Strategy and Development Direction - The company aims to be the best firm in wealth management, focusing on pursuing novel strategies, creating an extraordinary employee experience, and leading with operational excellence [6][7] - The planned acquisition of Commonwealth Financial Network is expected to enhance service offerings and maintain high advisor satisfaction [10][11] - The company is committed to preserving the Commonwealth community while leveraging LPL's resources to enhance the advisor experience [11][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating backdrop with rising macroeconomic uncertainty but emphasized the value of professional advice [5] - The company remains optimistic about its growth prospects, driven by strong organic growth and successful onboarding of new businesses [13][24] - Management expressed confidence in maintaining operating leverage while investing in service platforms and supporting the Commonwealth experience [41][45] Other Important Information - The company expects to close the acquisition of Commonwealth in the second half of the year, with a projected leverage ratio of approximately 2.25 times post-acquisition [22] - Core G&A expenses for 2025 are now anticipated to be in the range of $1.73 billion to $1.765 billion, reflecting improved efficiency [19] - The company paused share repurchases following the announcement of the Commonwealth acquisition, with plans to revisit this after onboarding [22][23] Q&A Session Summary Question: Update on Commonwealth acquisition and advisor reactions - Management reported that the transaction is progressing well, with a retention target of 90% and positive engagement with Commonwealth advisors [30][36] Question: Context on expense efficiencies and operating leverage - Management highlighted a focus on automating processes and reducing friction, leading to improved client and employee experiences while maintaining cost efficiency [41][43] Question: Recruiting pipeline outlook in a volatile market - Management noted a new normal in advisor movement around 5%, with confidence in maintaining industry-leading capture rates despite market volatility [50][54] Question: Update on integration and onboarding of Atria and Prudential - Management confirmed that onboarding is on track, with expectations for significant asset retention and EBITDA contributions from both acquisitions [70][74] Question: Internal capacity for onboarding deals and partnerships - Management indicated that while current focus is on Atria and Commonwealth, the team is well-equipped to handle ongoing and future integrations [90][91] Question: Activity in annuity sales and impact from recent acquisitions - Management noted strong annuity sales driven primarily by the onboarding of Prudential, which significantly contributes to overall sales performance [94][95]

LPL Financial Overview - LPL serves approximately 29,500 advisors with ~$1.8 trillion in assets, positioning itself as the largest independent broker-dealer in the U S and a top custodian[13] - The company's advisor channel manages ~$1.320 trillion, while the institution channel oversees ~$480 billion[13] - LPL's mission is to ensure the success of its clients, striving to be the best firm in wealth management[13] Financial Performance and Growth - LPL's gross profit reached $4.708 billion LTM, demonstrating industry-leading scale[15] - The company's adjusted pre-tax margin is 37%, and adjusted EPS is $17.44 LTM[15] - LPL's total advisory and brokerage assets amounted to $1.795 trillion in Q1'25, with advisory assets comprising 54% of the total[15] - The firm experienced a total organic net new asset (NNA) annualized growth rate of 13 5% LTM[15] Strategic Initiatives and Investments - LPL is focused on horizontal expansion, aiming to serve all ~300,000 advisors in the advisor-mediated marketplace[12, 23] - The company employs a vertical integration strategy, investing in capabilities to enhance the advisor value proposition and drive growth[12, 20] - LPL plans to slow Core G&A growth to +6% to +7 5% in 2025, reflecting greater efficiencies from ongoing investments[53] - The company is making significant investments in technology, with a core technology portfolio spend of ~$465 million in 2024[54] Acquisitions and Capital Management - LPL acquired Atria Wealth Solutions in October 2024, with ~$110 billion in client assets and expects ~$150 million in run-rate EBITDA[109, 110] - The company signed an agreement to acquire Commonwealth Financial Network in March 2025 for ~$2 7 billion, with ~$285 billion in client assets and expects ~$415 million in run-rate EBITDA[116, 118] - LPL's capital management strategy prioritizes investments in organic growth, opportunistic M&A, and returning excess capital to shareholders[73]

Financial Performance - Net income for Q1 2025 was $319 million, translating to diluted EPS of $4.24, up 11% year-over-year[2] - Adjusted EPS increased 22% year-over-year to $5.15, with gross profit rising 19% to $1,273 million[2] - Total revenue for Q1 2025 was $3,670,007, an increase of 4% from Q4 2024 and 30% from Q1 2024[18] - Net income for Q1 2025 reached $318,573, reflecting an 18% increase compared to Q4 2024 and a 10% increase from Q1 2024[18] - Earnings per share (diluted) for Q1 2025 was $4.24, up 18% from Q4 2024 and 11% from Q1 2024[18] - Adjusted EBITDA for Q1 2025 was $682,399, a 17% increase from Q4 2024 and a 26% increase from Q1 2024[23] - Total expenses for Q1 2025 were $3,252,754, a 3% increase from Q4 2024 and a 32% increase from Q1 2024[18] - The company reported a 22% increase in income before provision for income taxes, totaling $417,253 for Q1 2025 compared to Q4 2024[23] - Adjusted pre-tax income for Q1 2025 was $509.3 million, up from $410.8 million in Q4 2024, representing a 24% increase year-over-year[16] - Adjusted net income for Q1 2025 was $386.7 million, with adjusted EPS of $5.15, compared to $320.3 million and $4.25 in Q4 2024, indicating a 21% increase in net income[17] - Total EBITDA for Q1 2025 reached $2.22 billion, an increase from $2.11 billion in Q4 2024, reflecting a growth of approximately 5%[59] - The company reported net income of $1.09 billion for Q1 2025, compared to $1.06 billion in Q4 2024, showing a slight increase[59] Assets and Advisory Growth - Total advisory and brokerage assets grew 25% year-over-year to $1.8 trillion, with advisory assets increasing 23% to $977 billion[2] - Total organic net new assets were $71 billion, representing 16% annualized growth, including $27 billion from Prudential and $16 billion from Wintrust[2] - Recruited assets reached $39 billion, up 91% from a year ago, with a record of $167 billion over the trailing twelve months[2] - Total Advisory and Brokerage Assets increased to $1,794.9 billion in Q1 2025, up 3% from $1,740.7 billion in Q4 2024 and up 25% from $1,440.9 billion in Q1 2024[25] - Organic net new advisory assets were $35.7 billion in Q1 2025, a decrease from $49.3 billion in Q4 2024, but significantly up from $16.2 billion in Q1 2024[27] - Total Net New Assets reached $78.8 billion in Q1 2025, down from $157.3 billion in Q4 2024, and up from $16.7 billion in Q1 2024[27] - Centrally managed assets increased to $164.4 billion in Q1 2025, up 3% from $160.0 billion in Q4 2024, and up 35% from $121.7 billion in Q1 2024[25] Client and Advisor Metrics - The number of advisors grew to 29,493, a 2% increase from Q4 2024 and a 29% increase from Q1 2024[41] - Total client accounts increased to 10.4 million, a 4% rise from Q4 2024 and a 24% rise from Q1 2024[41] - Net new advisors decreased significantly to 605, an 88% decline from Q4 2024, but a 170% increase from Q1 2024[41] - The annualized advisory fees and commissions per advisor decreased by 4% to $375 from Q4 2024[41] Cash and Debt Management - Corporate cash stood at $621 million, with a leverage ratio of 1.82x[2] - Total debt rose to $5,720,000, up from $5,517,000 in Q4 2024[38] - The leverage ratio improved to 1.82x in Q1 2025 from 1.89x in Q4 2024[38] - Client cash balances totaled $53.1 billion in Q1 2025, a decrease of 4% from $55.1 billion in Q4 2024, but an increase of 15% from $46.3 billion in Q1 2024[29] - Client cash revenue for Q1 2025 was $392,031, an increase of 3.0% from Q4 2024 and 11.3% from Q1 2024[53] Acquisitions and Corporate Actions - The company announced an agreement to acquire Commonwealth Financial Network, managing $285 billion of assets, expected to close in the second half of 2025[8] - The company issued $1.7 billion of common stock at $320 per share to fund part of the acquisition of Commonwealth[8] - Acquisition costs for Q1 2025 totaled $48,544, an increase from $37,261 in Q4 2024[57] - Acquisition costs for Q1 2025 amounted to $249.9 million, up from $223.6 million in Q4 2024, indicating a 12% increase[59] Dividends and Shareholder Returns - A dividend of $0.30 per share was declared, payable on June 12, 2025[7] - Share repurchases remained steady at $100 million, unchanged from Q4 2024[41]

Key Financial Results - Net income for Q1 2025 was $319 million, translating to diluted earnings per share (EPS) of $4.24, an 11% increase from the previous year [5] - Adjusted EPS increased 22% year-over-year to $5.15 [5] - Gross profit rose 19% year-over-year to $1,273 million [5] - Core general and administrative (G&A) expenses increased 14% year-over-year to $413 million [5] - Adjusted pre-tax income grew 23% year-over-year to $509 million [5] - Total advisory and brokerage assets increased 25% year-over-year to $1.8 trillion [5] Key Business Results - Total organic net new assets were $71 billion, representing 16% annualized growth [5] - Recruited assets were $39 billion, up 91% from a year ago, with a record of $167 billion over the trailing twelve months [5] - Advisory assets increased 23% year-over-year to $977 billion, while advisory assets as a percentage of total assets decreased to 54.5% from 55.0% a year ago [5] Key Capital and Liquidity Results - Corporate cash stood at $621 million, with a leverage ratio of 1.82x [5] - Share repurchases amounted to $100 million, and dividends paid were $22.4 million [5] M&A Activity - The company announced a definitive purchase agreement to acquire Commonwealth Financial Network, which manages $285 billion of brokerage and advisory assets [4] - The acquisition is expected to close in the second half of 2025, subject to regulatory approvals [4][7] Strategic Updates - The onboarding of Prudential Advisors was completed, adding $67 billion of brokerage and advisory assets [6] - Wintrust Investments was onboarded with $16 billion of assets [6] - A strategic relationship agreement with First Horizon Bank was announced, expected to transition support to LPL's platform by mid-2026 [6][7]

Core Insights - LPL Financial has welcomed three financial advisors from West Texas Investments, who manage approximately $170 million in advisory, brokerage, and retirement plan assets, transitioning from B. Riley Wealth Advisors [1][2] Group 1: Company Overview - LPL Financial Holdings Inc. is one of the fastest-growing wealth management firms in the U.S., supporting nearly 29,000 financial advisors and servicing approximately $1.7 trillion in brokerage and advisory assets for around 6 million Americans [6] Group 2: Team Background - West Texas Investments was founded in 2012 by Stephanie Stewart and her late partner David Barber, with Debra Hedgcoth joining in 2018 after a 25-year career with the IRS, and Madison Wentland joining in 2019 [2] - The team has over 40 years of combined industry experience and employs a holistic approach to assist clients in achieving their financial goals [2] Group 3: Client Engagement Strategy - The team utilizes a 'Discover, Design and Deliver' approach to understand clients' dreams and values, creating customized financial plans and providing ongoing support [3] - The transition to LPL is aimed at enhancing service offerings and improving the client experience through integrated technology and extensive back-office services [4] Group 4: Transition Experience - The transition process to LPL has been described as seamless, with positive feedback on the communication and support received from LPL's transition team [4] - LPL's commitment to helping advisors differentiate themselves and enhance client experiences is emphasized by Scott Posner, LPL Managing Director [4]

Core Viewpoint - Analysts expect LPL Financial Holdings Inc. to report quarterly earnings of $4.50 per share, reflecting a year-over-year increase of 6.9%, with revenues projected at $3.61 billion, up 27.5% from the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised 5.4% lower over the last 30 days, indicating a collective reevaluation by analysts [1][2] Revenue Projections - Analysts estimate 'Revenue- Commission' at $960.89 million, a year-over-year increase of 28.7% [4] - 'Revenue- Service and fee' is projected to reach $139.93 million, reflecting a 5.9% increase from the prior year [4] - 'Revenue- Asset-based fees' is expected to be $711.71 million, indicating an 18.5% year-over-year change [4] - The consensus estimate for 'Revenue- Advisory' stands at $1.68 billion, showing a 40% increase year-over-year [5] - 'Revenue- Transaction' is forecasted at $62.16 million, suggesting an 8.6% increase from the previous year [5] - 'Revenue- Commission- Trailing' is expected to reach $436.23 million, reflecting a 20.8% increase [5] Asset Metrics - 'Total Advisory and Brokerage Assets - Brokerage Assets' is projected to reach $821.02 billion, up from $647.9 billion in the same quarter last year [6] - 'Total Advisory and Brokerage Assets' is expected to be $1,816.08 billion, compared to $1,440.9 billion reported in the same quarter last year [6] - 'Total Advisory and Brokerage Assets - Advisory Assets' is estimated at $995.07 billion, up from $793 billion a year ago [7] Advisor and Asset Growth - The number of advisors is expected to reach 29,289, an increase from 22,884 in the previous year [7] - 'Net New Assets (NNA) - Net new advisory assets' is projected at $33.65 billion, compared to $16.2 billion reported in the same quarter last year [8] - 'Total Net New Assets' is expected to be $69.17 billion, up from $16.7 billion a year ago [8] Stock Performance - LPL Financial shares have returned +17.7% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [9]

Core Insights - LPL Financial LLC has launched WealthVision Essentials, an integrated financial planning tool aimed at enhancing the services of its financial advisors [1][3] - The new platform is designed to provide easily accessible financial planning software and tools for holistic financial guidance [1][3] Company Overview - LPL Financial Holdings Inc. is one of the fastest-growing wealth management firms in the U.S., supporting nearly 29,000 financial advisors and approximately 1,200 financial institutions [5] - The firm services and custody approximately $1.7 trillion in brokerage and advisory assets on behalf of around 6 million Americans [5] Advisor Insights - A study revealed that 175 of LPL Financial's top 10% of advisors utilize comprehensive solutions beyond portfolio management, leading to increased service offerings [2] - These top advisors are 53% more likely to provide estate planning, 41% more likely to offer tax planning, 28% more likely to consult on retirement plans, and 17% more likely to provide insurance [2] Product Features - WealthVision Essentials includes stand-alone planning modules for quick financial plan creation, an interactive client portal for enhanced communication, and seamless integration with LPL's ClientWorks platform [4][8] - All LPL financial advisors will have access to this advanced financial planning software at no additional cost, with onboarding scheduled throughout Q2 2025 [4]

SAN DIEGO, May 05, 2025 (GLOBE NEWSWIRE) -- LPL Financial LLC announced today that 10 financial advisors with Northern Advisory Group have joined LPL Financial's broker-dealer, Registered Investment Advisor (RIA) and custodial platforms. They reported serving approximately $300 million in advisory, brokerage and retirement plan assets* and join LPL from Osaic. Partners Richard DiTaranto, Brian DiBrino and Jeff Miller, who have a combined eight decades of wealth management experience, teamed up in 2004 to la ...

Core Viewpoint - LPL Financial Holdings Inc. is expected to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for LPL Financial's quarterly earnings is $4.50 per share, reflecting a year-over-year increase of +6.9% [3]. - Revenues are anticipated to reach $3.61 billion, which is a 27.5% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 6.08% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for LPL Financial matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - LPL Financial's current Zacks Rank is 3, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, LPL Financial exceeded the expected earnings of $3.92 per share by delivering $4.25, resulting in a surprise of +8.42% [12]. - The company has beaten consensus EPS estimates in each of the last four quarters [13]. Industry Comparison - MarketAxess, another player in the financial investment banking sector, is expected to report earnings of $1.82 per share, indicating a year-over-year decline of -5.2% [17]. - MarketAxess has seen a slight increase in its consensus EPS estimate by 0.3% over the last 30 days, but its Earnings ESP is -0.34%, making it difficult to predict an earnings beat [18].

Core Insights - LPL Financial LLC has welcomed financial advisor R. Brennan Barlow, who manages approximately $250 million in advisory, brokerage, and retirement plan assets, to its platforms [1][2] - Barlow founded Barlow Capital Advisors in 2009 and aims to provide a family-owned and operated independent practice to serve his community [2] - Barlow emphasizes a holistic approach to wealth management, focusing on protecting wealth, preserving lifestyle, and preventing surprises in retirement [3] Company Overview - LPL Financial Holdings Inc. is one of the fastest-growing wealth management firms in the U.S., supporting nearly 29,000 financial advisors and servicing approximately $1.7 trillion in brokerage and advisory assets [6] - The firm offers a variety of advisor affiliation models, investment solutions, fintech tools, and practice management services, allowing advisors to choose the business model and resources they need [6]