Core Insights - LPL Financial has launched an alternative investments education platform called Alts Learning Hub to assist advisors in integrating alternative investments into their practices [1][3] - The alternative assets market is projected to grow significantly, with advisor-intermediated illiquid alternative assets expected to increase from $1.4 trillion to $2.4 trillion in the next five years [2] - The platform aims to enhance advisor confidence and competence in alternative investments, which are becoming increasingly popular among high-net-worth and ultra-high-net-worth investors [2][3] Company Overview - LPL Financial Holdings Inc. is one of the fastest-growing wealth management firms in the U.S., supporting over 29,000 financial advisors and approximately 1,200 financial institutions [4] - The firm manages around $1.8 trillion in brokerage and advisory assets for approximately 7 million Americans, offering a variety of advisor affiliation models and investment solutions [4] Platform Features - The Alts Learning Hub provides a centralized source for alternative investments education, featuring curated content and resources from LPL, fund sponsors, and industry experts [6] - It offers a structured and user-friendly learning experience, simplifying the education process for financial professionals [6] - The platform includes a partnership with the Chartered Alternative Investment Analyst (CAIA) Association, providing on-demand learning with 15 CE credits for CIMA and CFP professionals [6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-34963 LPL Financial Holdings Inc. (Exact name of registrant as specified in its charter) Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO ...

Core Insights - LPL Financial Holdings Inc. reported a revenue of $3.69 billion for the quarter ended March 2025, marking a 30.3% increase year-over-year, with an EPS of $5.15 compared to $4.21 in the same quarter last year, exceeding both revenue and EPS consensus estimates [1] Financial Performance - Revenue exceeded the Zacks Consensus Estimate of $3.61 billion by 2.21%, while EPS surpassed the consensus estimate of $4.54 by 13.44% [1] - Total Advisory and Brokerage Assets reached $1,794.9 billion, below the average estimate of $1,816.08 billion [4] - Brokerage Assets were reported at $817.5 billion, slightly below the estimated $821.02 billion [4] - Advisory Assets totaled $977.4 billion, also below the average estimate of $995.07 billion [4] Revenue Breakdown - Revenue from commissions was $1.05 billion, exceeding the estimate of $960.89 million, representing a year-over-year increase of 40.4% [4] - Service and fee revenue was reported at $145.20 million, above the estimate of $139.93 million, reflecting a 9.9% year-over-year increase [4] - Asset-based fees generated $695.24 million, slightly below the estimate of $711.71 million, with a year-over-year change of 15.7% [4] - Advisory revenue was $1.69 billion, slightly above the estimate of $1.68 billion, showing a year-over-year increase of 40.8% [4] - Transaction revenue was $67.86 million, exceeding the estimate of $62.16 million, with an 18.5% year-over-year increase [4] - Other asset-based revenue was $303.21 million, above the estimate of $293.49 million [4] - Client cash revenue was $392.03 million, below the estimate of $415.02 million [4] - Trailing commission revenue was $437.72 million, slightly above the estimate of $436.23 million, with a year-over-year increase of 21.2% [4] Stock Performance - LPL Financial's shares returned 4.9% over the past month, compared to the S&P 500 composite's 11.3% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

LPL Financial Holdings Inc. (LPLA) came out with quarterly earnings of $5.15 per share, beating the Zacks Consensus Estimate of $4.54 per share. This compares to earnings of $4.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.44%. A quarter ago, it was expected that this company would post earnings of $3.92 per share when it actually produced earnings of $4.25, delivering a surprise of 8.42%.Over the last four quarters, t ...

LPL Financial (LPLA) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Rich Steinmeier - CEOMatt Audette - President & CFODevin Ryan - Director of Financial Technology ResearchSteven Chubak - Managing DirectorChristopher O'Brien - Equity Research AVP - Brokers, Exchanges, & Asset Managers Conference Call Participants Michael Cyprys - AnalystAlex Blostein - AnalystDan Fannon - Managing Director - Research AnalystMichael Brown - Equity Research AnalystWilliam Katz - Senior Equity AnalystJeff ...

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]

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 growth, market share, deposit betas, Core G&A* expenses (including outlook for 2025) and expenses associated with the Company's acquisitions of Atria ...

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 was $319 million, translating to diluted earnings per share ("EPS") of $4.24, up 11% from a year agoAdjusted EPS* increased 22% year-over-year to $5.15 Gross profit* increased 19% year-over-year to $1,273 millionCore G&A* increased 14% year-over-year to $413 millionAdjusted pre-tax income* increased 23% year-over-year to $509 million Key Business Results: Total advisory and brokerage assets increased 25% year-over-year to $1.8 trillion Advisory assets increased 23% year-ov ...

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]