LPL Financial(LPLA) - 2025 Q1 - Quarterly Results

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]