LPL Financial Announces First Quarter 2025 Results

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]