SAN DIEGO, Aug. 21, 2025 (GLOBE NEWSWIRE) -- LPL Financial LLC (“LPL Financial”), a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”), today released its monthly activity report for July 2025. Total advisory and brokerage assets at the end of July were $1.94 trillion, an increase of $20.2 billion, or 1.1%, compared to the end of June 2025. Total organic net new assets for July were $5.4 billion, translating to a 3.4% annualized growth rate. This included $1.8 billion of a ...

Core Insights - LPL Financial reported stronger-than-expected profitability for Q2 2025, with non-GAAP EPS of $4.51 and revenue of $3.84 billion, both exceeding analyst estimates [1][5] - The company experienced robust asset growth, although organic net new assets and advisor recruitment slowed compared to the previous period [1][7] Financial Performance - Non-GAAP EPS increased by 16% year-over-year from $3.88 to $4.51, while GAAP EPS rose by 5% from $3.23 to $3.40 [2] - Revenue grew by 31% year-over-year from $2.93 billion to $3.84 billion, driven by higher advisory and commission income [2][5] - Gross profit (non-GAAP) increased by 21% year-over-year, reflecting operational leverage and expansion [2][5] Business Overview and Strategy - LPL Financial is the largest independent broker-dealer in the U.S., providing financial advisors with investment solutions, custody, clearing services, compliance support, and technology tools [3] - The company's strategy focuses on scale and market leadership, a comprehensive suite of services, and flexibility in its advisor business model [4] Asset Growth and Client Metrics - Total advisory and brokerage assets reached $1.92 trillion, a 28% increase from the prior year, supported by equity market gains and onboarding of newly acquired platforms [6] - Advisory assets rose by 28% year-over-year to $1.06 trillion, while client cash balances increased by $7 billion year-over-year to $51 billion [6] Organic Growth and Advisor Recruitment - Organic net new assets were $21 billion, reflecting a 5% annualized growth rate, with a $4 billion outflow related to planned separation from large advisor organizations [7] - The previous quarter's organic net new assets were significantly higher at $71 billion, indicating a slowdown in advisor recruiting activity [7] Capital Allocation and Financial Health - The company allocated $105 million across nine merger and acquisition deals during the quarter, maintaining a debt-to-earnings ratio of 1.23x [9] - Fitch Ratings assigned a BBB credit rating to the company, which may improve future borrowing costs [9] Dividend and Future Guidance - A quarterly dividend of $0.30 per share was declared, payable on August 29, 2025 [10] - The company updated its full-year Core G&A expense outlook to a range of $1,730 million to $1,765 million for fiscal 2025, with a focus on operational efficiencies and integration of acquired businesses [11]

Core Insights - LPL Financial reported a total advisory and brokerage assets of $1.85 trillion at the end of May 2025, reflecting an increase of $66.6 billion or 3.7% from April 2025 [1][4] - The company experienced total organic net new assets of $6.5 billion in May, which corresponds to a 4.4% annualized growth rate, despite a planned separation from misaligned large OSJs impacting the figures [2][4] - Client cash balances decreased to $49.2 billion, down by $2.6 billion or 5.0% compared to April 2025, with net buying activity recorded at $13.5 billion [3][4] Advisory and Brokerage Assets - Advisory assets reached $1,021.6 billion, up 4.4% from April 2025 and 26.2% year-over-year [4] - Brokerage assets totaled $832.9 billion, marking a 2.9% increase month-over-month and a 26.8% increase year-over-year [4] - Total advisory and brokerage assets increased by 3.7% month-over-month and 26.5% year-over-year [4] Organic and Acquired Net New Assets - Organic net new advisory assets were $8.3 billion, while organic net new brokerage assets were negative at $(1.8) billion [4] - Total organic net new assets for May were $6.5 billion, compared to $6.1 billion in April 2025 [4] - There were no acquired net new assets reported for both advisory and brokerage segments [4] Client Cash Balances - Total client cash balances decreased to $49.2 billion, a 5.0% decline from April 2025 [3][4] - Insured cash account sweep decreased by 5.1%, while deposit cash account sweep saw a slight decline of 0.9% [4] - The total bank sweep cash balance was $44.0 billion, down 4.1% month-over-month [4] Market Drivers - The S&P 500 Index increased by 6.2% to 5,912 at the end of May 2025, while the Russell 2000 Index rose by 5.2% to 2,066 [4]