Core Insights - LPL Financial Holdings Inc. reported $3.51 billion in revenue for Q4 2024, a year-over-year increase of 32.9% and exceeding the Zacks Consensus Estimate of $3.35 billion by 4.85% [1] - The company's EPS for the same period was $4.25, compared to $3.51 a year ago, representing an EPS surprise of 8.42% against the consensus estimate of $3.92 [1] Financial Performance Metrics - Total Advisory and Brokerage Assets reached $1,740.7 billion, below the average estimate of $1,767.07 billion [4] - Brokerage Assets were reported at $783.7 billion, slightly lower than the estimated $794.94 billion [4] - Advisory Assets totaled $957 billion, compared to the average estimate of $972.13 billion [4] - The number of advisors increased to 28,888, surpassing the average estimate of 26,310 [4] Revenue Breakdown - Advisory revenue was $1.60 billion, exceeding the estimated $1.51 billion, marking a 47% increase year-over-year [4] - Commission revenue was reported at $965.46 million, above the estimated $882 million, reflecting a 41.5% year-over-year change [4] - Service and fee revenue was $139.12 million, slightly below the average estimate of $146.89 million, with a year-over-year change of 6.5% [4] - Transaction revenue was $61.54 million, in line with the estimate of $61.50 million, showing a 14.3% year-over-year increase [4] - Asset-based fees revenue was $669.78 million, compared to the average estimate of $682.09 million, with a year-over-year change of 15.3% [4] - Sales-based commission revenue was $525.80 million, exceeding the estimated $461.10 million, representing a 47.7% year-over-year increase [4] - Trailing commission revenue was $439.67 million, slightly above the average estimate of $430.86 million, with a year-over-year change of 34.7% [4] Stock Performance - LPL Financial's shares have returned +10.9% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - LPL Financial Holdings Inc. reported quarterly earnings of $4.25 per share, exceeding the Zacks Consensus Estimate of $3.92 per share, and showing a year-over-year increase from $3.51 per share [1][2] Financial Performance - The company achieved revenues of $3.51 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.85%, compared to $2.64 billion in the same quarter last year [2] - Over the last four quarters, LPL Financial has consistently exceeded consensus EPS estimates [2] Stock Performance - LPL Financial shares have increased approximately 10.9% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $4.40 on revenues of $3.47 billion, and for the current fiscal year, it is $19.40 on revenues of $14.63 billion [7] - The estimate revisions trend for LPL Financial is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Financial - Investment Bank industry is currently ranked in the top 2% of over 250 Zacks industries, suggesting a strong outlook for companies within this sector [8]

LPL Financial Holdings Inc. Q4 2024 Investor Presentation January 30, 2025 LPL Financial Member FINRA/SIPC Notice to Investors: Safe Harbor Statement Statements in this presentation regarding LPL Financial Holdings Inc.'s (together with its subsidiaries, the "Company") future financial and operating results, growth, plans, priorities, business strategies, capabilities, and outlook, including forecasts and statements relating to the Company's future advisory and brokerage asset levels and mix, organic asset ...

Financial Performance - Net Income for Q4 2024 was $271 million, translating to diluted EPS of $3.59, up 26% year-over-year[5] - Adjusted EPS for the full year 2024 increased 5% year-over-year to $16.51, with gross profit rising 12% to $4.50 billion[2] - Total revenue for Q4 2024 reached $3,512,351,000, a 13% increase from Q3 2024 and a 33% increase from Q4 2023[17] - Total revenue for the year 2024 was $12,385,107,000, a 23% increase from $10,052,848,000 in 2023[20] - The company reported a diluted EPS of $14.03 for 2024, compared to $13.69 in 2023, showing a year-over-year increase of 2.5%[65] - Net income for Q4 2024 was $270.7 million, up 25% from $217.6 million in Q4 2023, while adjusted net income increased to $320.3 million, representing a 19.5% year-over-year growth[63] - EBITDA for 2024 reached $2.11 billion, compared to $1.99 billion in 2023, marking an increase of 6.3%[61] - Adjusted EBITDA for Q4 2024 was $584.8 million, up 22% from $479.7 million in Q4 2023[60] Assets and Liabilities - Total advisory and brokerage assets increased 29% year-over-year to $1.7 trillion, with advisory assets up 30% to $957 billion[2] - Total assets as of December 31, 2024, were $13,317,404,000, an increase from $11,941,875,000 in Q3 2024[22] - Total liabilities increased to $10,386,802,000 as of December 31, 2024, compared to $9,170,124,000 in Q3 2024[22] - The total advisory and brokerage assets under custody reached $2.67 trillion, demonstrating robust growth in asset management capabilities[68] Client Engagement and Growth - Total organic net new assets for the full year 2024 were $141 billion, representing a 10% growth rate, up from 9% in 2023[2] - Recruited assets for the year reached a record $149 billion, up approximately 86% from the previous year[2] - The advisor count increased to 28,888, up 5,202 sequentially and 6,228 year-over-year[2] - Total client cash balances rose to $55.1 billion in Q4 2024, an increase of 20% from Q3 2024 and 14% from Q4 2023[31] - Total client deposits into advisory or brokerage accounts increased significantly, reflecting strong client engagement and retention strategies[69] Revenue Breakdown - Advisory revenue increased to $1,595,834,000, up 16% from Q3 2024 and 47% from Q4 2023[17] - Total commission revenue rose to $965,463,000, reflecting a 20% increase from Q3 2024 and a 41% increase from Q4 2023[17] - The company reported a 32% increase in advisory revenue for the year 2024, totaling $5,461,858,000 compared to $4,135,681,000 in 2023[20] - Advisory fees and commissions increased to $2,561.3 million in Q4 2024, a 17% increase from Q3 2024 and a 45% increase from Q4 2023[25] Expenses and Costs - The company’s total expenses for the year 2024 were $10,992,215,000, reflecting a 28% increase from $8,608,073,000 in 2023[20] - Core G&A for 2024 was $1,515 million, with a 2025 outlook range of $1,560 million to $1,600 million excluding Prudential and Atria[9] - Acquisition costs for 2024 totaled $105.9 million, a significant increase from $48.1 million in 2023, reflecting a 120% rise[59] - Total advisory and commission expense for Q4 2024 was $2,250.4 million, representing a 15.5% increase from Q3 2024 and a 40% increase from Q4 2023[54] Regulatory and Other Charges - Regulatory charges for 2024 included an $18 million charge related to a settlement with the SEC, in addition to a $40 million charge in 2023[61] - The company recorded $135.2 million in amortization of other intangibles for 2024, compared to $107.2 million in 2023, indicating a 26.1% increase[65] - The departure of the former CEO resulted in a net other income of $26.4 million in Q4 2024, after accounting for share-based compensation expenses[64] Acquisitions - The company onboarded $63 billion of assets from Prudential, with $40 billion transitioning in Q4 2024[9] - Atria acquisition was closed, with conversion expected to complete in mid-2025[9]

Key Financial Results - For Q4 2024, the company reported a net income of $271 million, translating to diluted earnings per share (EPS) of $3.59, which is a 26% increase from Q4 2023 [4][8] - Adjusted EPS increased by 21% year-over-year to $4.25 [4] - Gross profit rose by 22% year-over-year to $1,228 million [4] - Total revenue for Q4 2024 was $3,512 million, a 13% increase from the previous quarter [23] Key Business Results - Total advisory and brokerage assets increased by 29% year-over-year to $1.7 trillion [4] - Advisory assets grew by 30% year-over-year to $957 billion, representing 55.0% of total assets [4] - The company onboarded $63 billion of assets from Prudential in Q4 2024 [3][5] - Record recruited assets reached $79 billion, including $63 billion from Prudential [4] Key Capital and Liquidity Results - Total client cash balances increased by $9 billion sequentially to $55 billion [4] - Corporate cash stood at $479 million, with a leverage ratio of 1.89x [4] - Share repurchases amounted to $100 million, and dividends paid were $23 million in Q4 2024 [4] Key Updates - The company completed the acquisition of Atria and expects to finalize the conversion in mid-2025 [12] - In January 2025, the company onboarded the wealth management business of Wintrust, with $16 billion of brokerage and advisory assets [5] - The company plans to slow the growth of Core G&A in 2025, with an outlook range of $1,560 million to $1,600 million, excluding Prudential and Atria [12]

Core Insights - LPL Financial LLC has welcomed four financial advisors who collectively manage approximately $1 billion in advisory, brokerage, and retirement plan assets, transitioning from Osaic to LPL Financial [1][6]. Group 1: Company Overview - LPL Financial Holdings Inc. is recognized as one of the fastest-growing wealth management firms in the U.S., supporting over 28,000 financial advisors and approximately 1,200 financial institutions [6]. - The firm services and custodies around $1.8 trillion in brokerage and advisory assets for about 6 million Americans, offering a variety of advisor affiliation models, investment solutions, fintech tools, and practice management services [6]. Group 2: Advisors' Background - John P. Schlatter, the founder of Salient Wealth Planning Group, emphasizes customized investment strategies, financial planning, and wealth preservation services, focusing on tax efficiency and generational wealth transfer [2][3]. - The advisors adopt an interdisciplinary approach to ensure comprehensive coordination and review of each client's financial situation, primarily serving high-net-worth clients [2][3]. Group 3: Strategic Partnership with LPL - The Salient team chose LPL for its advanced capabilities and commitment to exceptional customer service, highlighting the importance of a stable partner for their business [3][4]. - LPL's significant investment in technology, approximately $500 million in 2024, is appreciated by the advisors for enhancing their service offerings and operational efficiency [4]. - LPL aims to support the advisors' vision by providing elevated services and integrated technology to help them remain competitive in the evolving wealth management landscape [4].

Core Insights - Wintrust Financial Corporation has transitioned its wealth management business to LPL Financial, enhancing its service capabilities and client experience [1][2] - The strategic relationship aims to leverage LPL's platform to provide a more streamlined and personalized experience for clients and advisors [2] - Approximately $15 billion in brokerage and advisory assets have been onboarded to LPL, with an additional $1 billion expected to onboard in the coming months [2] Company Overview: Wintrust Financial Corporation - Wintrust is a financial holding company with approximately $64.9 billion in assets, operating over 200 retail banking locations across several states [3] - The company offers a range of services including residential mortgage origination, wealth management, and commercial insurance premium financing [3] Company Overview: LPL Financial - LPL Financial is one of the fastest-growing wealth management firms in the U.S., supporting over 28,000 financial advisors and approximately 1,200 financial institutions [4] - The firm services and custodies around $1.8 trillion in brokerage and advisory assets for 6 million Americans, providing various advisor affiliation models and fintech tools [4]

Core Insights - LPL Financial LLC has welcomed financial advisors William "Bill" Bruen, Jr., and Andrew Bruen, who bring approximately $1.3 billion in advisory, brokerage, and retirement plan assets to the firm from UBS [1][2] Group 1: Company Overview - LPL Financial is among the fastest-growing wealth management firms in the U.S., supporting over 28,000 financial advisors and approximately 1,200 financial institutions, with around $1.8 trillion in brokerage and advisory assets [8] Group 2: Family Legacy - The Bruen family has a rich history in investment advice and wealth management, dating back to 1922, with the establishment of James Bruen's practice [2] - Bill Bruen, Sr. served in the family business for 70 years before retiring in 2020, and now Bill and Andrew continue this legacy [2] Group 3: Business Transition - The Bruens chose to move their firm to LPL Financial to gain freedom and flexibility in evolving their family business, launching Bruen Wealth Management [4][5] - The transition allows them to operate independently while maintaining a commitment to client interests, free from corporate directives [5] Group 4: Community Engagement - Bill Bruen is actively involved in the community, serving on various boards, including the Foundation for Morristown Medical Center, while Andrew also participates in community service [5] Group 5: Partnership and Support - Andrew Koltunowicz from Paradigm Partners expressed enthusiasm for the Bruens joining, highlighting their commitment to clients and multigenerational wealth management expertise [6] - Scott Posner from LPL emphasized the importance of advisor autonomy in shaping client relationships and the firm's support for the Bruens' growth [6]

Company Overview - LPL Financial LLC has announced the addition of financial advisor Christopher Ketchen, CRPS®, to its employee advisor channel, Linsco by LPL Financial, where he will launch Katama Wealth Partners [1][6] - LPL Financial is recognized as one of the fastest-growing wealth management firms in the U.S., supporting over 28,000 financial advisors and managing approximately $1.8 trillion in brokerage and advisory assets for around 6 million Americans [7] Advisor Background - Christopher Ketchen has a career spanning since 1994, initially in the retirement plan sector, and has since expanded into comprehensive wealth management, focusing on families and corporate retirement plans [2] - Ketchen is joined by Senior Client Associate Courtney Poole, who is part of the management team at Katama Wealth Partners [2] Business Model and Strategy - Ketchen aims to operate with greater autonomy and evolve his business by joining LPL, which offers a platform that allows him to incorporate his values and focus on client relationships [3][4] - Linsco by LPL Financial is designed for advisors who seek independence while benefiting from personalized support, technology capabilities, and resources to enhance client service [4][5] Future Plans - Ketchen looks forward to collaborating with other Linsco advisors in the Boston office and is open to welcoming like-minded advisors to his practice [5] - The move to LPL provides Ketchen with increased flexibility to work with outside services, such as legal professionals and CPAs, enhancing the service offerings for his clients [5]

Key Points Summary Advisors Joining LPL Financial - Financial advisors Brian J McGill II CFP® and Michael R Hyser CFP® have joined LPL Financial’s broker-dealer RIA and custodial platforms [1] - The advisors reported serving approximately $385 million in advisory brokerage and retirement plan assets [1] - They previously worked at Kestra before joining LPL Financial [1] Background of Johns Creek Financial - Johns Creek Financial is based in Alpharetta Ga and was initially founded in 2002 [2] - Hyser and McGill merged their practices in 2019 [2] - The advisors specialize in investment services tax strategies retirement and estate planning for high-net-worth families corporate executives and business owners [2] - They are supported by wealth management assistants Stacie Alexander and Alexis Griffin [2] Advisors’ Approach and Decision to Join LPL - The advisors offer holistic planning and customized portfolios tailored to clients’ needs risk tolerance and timelines [3] - They joined LPL Financial to elevate their business and enhance experiences for their team and clients [3] - LPL’s breadth of services advanced technology solutions and investment management platform were key factors in their decision [4] - The advisors aim to leverage LPL’s robust resource capabilities and high-net-worth services to address complex matters [4] LPL Financial’s Position and Support - LPL Financial is among the fastest-growing wealth management firms in the US supporting over 28000 financial advisors and approximately 1200 financial institutions [6] - The firm services and custodies approximately $18 trillion in brokerage and advisory assets on behalf of 6 million Americans [6] - LPL provides a wide range of advisor affiliation models investment solutions fintech tools and practice management services [6] - Scott Posner LPL Executive Vice President Business Development expressed support for the advisors and their growth objectives [4] Additional Information - LPL Financial Holdings Inc is listed on Nasdaq under the ticker LPLA [6] - The firm’s services are offered through LPL Financial a registered investment advisor and broker-dealer member FINRA/SIPC [7] - Johns Creek Financial and LPL are separate entities [7]