LPL Financial (NasdaqGS:LPLA) Q4 2025 Earnings call January 29, 2026 05:00 PM ET Speaker11Good afternoon, and thank you for joining the fourth quarter 2025 earnings conference call for LPL Financial Holdings, Inc. Joining the call today are Chief Executive Officer Rich Steinmeier and President and Chief Financial Officer Matt Audette. Rich and Matt will offer introductory remarks, and then the call will be open for questions. The company would appreciate if analysts would limit themselves to only one questi ...

Financial Data and Key Metrics Changes - Global enterprise revenues for Q4 2025 were $1.302 billion, down 6% year-over-year on a reported basis and down 7% on an adjusted basis [3][4] - Net income per share for the quarter was $0.32, compared to $0.53 in Q4 2024 [4] - Cash flow from operations was $183 million, an 18% increase over Q4 2024 [4] - Return on invested capital was 10% in Q4 [5] Business Line Data and Key Metrics Changes - Talent Solutions revenues were down 9% year-over-year on an adjusted basis, with U.S. revenues at $623 million and non-U.S. revenues at $200 million [6][8] - Protiviti's global revenues in Q4 were $479 million, with U.S. revenues down 6% and non-U.S. revenues up 9% year-over-year [8][10] - Gross margin for Talent Solutions was 46.7%, up from 46.4% in Q4 2024, while Protiviti's gross margin was 21.9%, down from 24.9% [9][10] Market Data and Key Metrics Changes - Currency exchange rate movements increased reported total revenues by $15 million, with $10 million attributed to Talent Solutions and $5 million to Protiviti [7] - Contract Talent Solutions bill rates increased by 3.2% compared to the previous year [8] Company Strategy and Development Direction - The company aims to capitalize on emerging opportunities and support clients' talent and consulting needs through its industry-leading brand and unique business model [4][23] - The strategic engagement of contract professionals is essential for Protiviti's success and enhances the company's competitive advantage [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted a return to sequential growth for the first time since early 2022, with a more conducive macro environment and improved client engagement [17][18] - Concerns about a near-term economic downturn have moderated, with significant pent-up demand for skilled professionals [18][19] - The company expects to see positive year-over-year growth in the third quarter of 2026 based on current trends [26][35] Other Important Information - The company distributed a cash dividend of $0.59 per share, totaling $59 million [5] - The tax rate for Q4 was 32%, up from 28% in the previous year, due to increased non-deductible expenses [11][12] Q&A Session Summary Question: Insights on the top line and efficiency improvements - Management expects to return to positive year-over-year growth in the third quarter, with efficiency improvements from retaining top producers during the downturn [26][27] Question: Labor uncertainty due to AI - Management noted that while AI may drive interest in flexible workers, current demand for full-time hires remains stable, particularly among small and medium-sized businesses [29] Question: Protiviti's headcount growth plans - Management indicated that Protiviti has hidden capacity due to underutilized full-time staff and contractors, allowing for growth without significant headcount increases [30][31] Question: Pricing environment and AI impact - The pricing environment remains competitive, with ongoing discussions about transitioning to more outcome-based pricing models [39][47] Question: Confidence in the ACS business line - Management expressed confidence in the ACS segment, noting that customer service areas performed better than expected despite overall weakness [40] Question: Seasonal trends for Q2 - Management indicated that Q2 typically sees modest revenue declines on the contract side but expects better margins as Protiviti recovers from seasonal lows [32][44]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated $58.7 million in net income, leading to an annual consolidated net income of $183.5 million, surpassing the previous record set in 2024 by approximately $6 million [4][20] - The company ended the year with cash of $425 million and total liquidity of $643 million, with a debt to total capitalization ratio of 16.3%, down from 9.6% at the end of 2024 [8][21] Business Line Data and Key Metrics Changes - The Great Park community closed sales on 13 different programs consisting of 920 home sites, while Valencia saw a modest increase in home sales, with 70 new homes sold compared to 50 in Q3 [6][12] - The company closed an industrial land sale in Valencia for $42.5 million and reported a gross margin of 31.25% for this sale [18] Market Data and Key Metrics Changes - The housing market in 2025 remained challenging due to economic uncertainty, elevated interest rates, and affordability constraints, impacting homebuyer demand more in Valencia than in The Great Park [5][6] - Despite these challenges, demand for homes in The Great Park remained strong, with builders selling 78 homes in Q4, although this was a decrease from 187 in Q3 due to seasonality [10] Company Strategy and Development Direction - The company's strategy focuses on maximizing the value of existing communities, maintaining a lean operating structure, matching development spending with revenue generation, and expanding through targeted growth initiatives [9] - The company aims to pursue growth opportunities while maintaining a disciplined approach to capital deployment, with a first priority on expanding recurring revenues [8][17] Management's Comments on Operating Environment and Future Outlook - Management expects consolidated net income in 2026 to be approximately $100 million, with earnings weighted more heavily toward the second half of the year as land sales and fee-based income accelerate [16][25] - The company is optimistic about growing buyer confidence and moderating interest rates improving demand for well-located home sites, despite intermittent challenges [7] Other Important Information - The company successfully integrated the Hearthstone Land Banking platform, which added a new earnings stream and expanded relationships with institutional capital partners [15] - The company received critical entitlement approvals in both Valencia and The Great Park, enhancing long-term asset value and supporting future development [4][13] Q&A Session Questions and Answers Question: Inquiry about development expenditures for Valencia and San Francisco in 2026 - Management indicated that development expenditures for both projects would be similar to the current year's spending of about $125 million, maintaining a constant pace as development increases [29][30] Question: Clarification on entitlement approvals and their impact on saleable acreage - Management clarified that the new entitlements in Great Park are additive to previously disclosed saleable acreage, increasing the total available for residential use [31][32]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $347 million, exceeding the high end of guidance, driven by earlier-than-expected deal closures and a $7 million favorable true-up for Q4 shipments [11][12] - Non-GAAP earnings per share was $1.06, also above guidance, attributed to higher revenue and lower operating expenses [11] - Licensing revenue reached $320 million, while product and services revenue was $27 million [11] - Operating cash flow generated was approximately $55 million, with $70 million of common stock repurchased [11][12] Business Line Data and Key Metrics Changes - Mobile revenue grew over 20% year-over-year, while broadcast revenue declined in the mid-teens year-over-year, primarily due to timing of deals [12] - The automotive sector is a major focus, with partnerships increasing from 20 OEMs last year to over 35 this year [6][10] - Dolby Vision 2 was well-received at CES, with support from partners like Peacock and TP Vision, enhancing revenue opportunities from TVs [7][8] Market Data and Key Metrics Changes - The mobile market is expected to see mid-single-digit growth for the full year, despite quarterly fluctuations [12] - The automotive market remains the highest growth area, with diversification geographically, including partnerships with major manufacturers like Mercedes and Audi [60][62] Company Strategy and Development Direction - The company is focused on expanding its addressable market through new growth initiatives, including Dolby OptiView and video distribution programs [10][29] - Dolby Vision 2 aims to enhance viewer experience across various content types, with plans to launch new TVs by the end of the fiscal year [7][10] - The company is optimistic about growth in Dolby Atmos, Dolby Vision, and imaging patents, projecting a growth rate of 15%-20% per year [10][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the early closure of deals does not indicate a broader change in the macro environment but provides confidence in the outlook for the year [18] - The company remains cautious about potential impacts from memory pricing and geopolitical factors but has not seen significant adjustments in guidance [58][59] - The automotive sector continues to thrive, with no immediate impacts from U.S. policy changes observed [62] Other Important Information - A dividend of $0.36 was declared, representing a 9% increase from the previous year [12] - The company ended the quarter with cash and investments of approximately $730 million [12] Q&A Session Summary Question: Impact of deal timing on revenue - Management indicated that earlier deal closures do not suggest a macro trend but help de-risk the outlook for the year [18] Question: Details on the $7 million true-up - The true-up was primarily in gaming and broadcast sectors [19] Question: Growth in mobile revenue - Growth was attributed to new deals and renewals, with expectations for slight increases over the full year [21] Question: Potential market share gains from Sony's spin-off - Management expressed optimism about strong relationships with both TCL and Sony, focusing on increasing TV attach rates [22][23] Question: Cash flow generation comparison - Cash flow can fluctuate based on deal timing, but it typically tracks closely with non-GAAP net income [24] Question: Update on patent monetization strategy - The company aims for 10% of revenue from content service providers within three years, with progress in the video distribution program [29][30] Question: OEM responses to macro issues - Management noted that while there are adjustments, they are not material, and the mobile market is most affected [58][59] Question: Adoption of in-car offerings amid policy changes - No significant impact observed; the automotive sector remains a high-growth area [62]

Apple (NasdaqGS:AAPL) Q1 2026 Earnings call January 29, 2026 05:00 PM ET Speaker12Good afternoon, and welcome to the Apple Q1 Fiscal Year 2026 earnings conference call. My name is Suhasini Chandramouli, Director of Investor Relations. Today's call is being recorded. Speaking first today is Apple CEO, Tim Cook, and he'll be followed by CFO, Kevan Parekh. After that, we'll open the call to questions from analysts. Please note that some of the information you'll hear during our discussion today will consist of ...

Visa (NYSE:V) Q1 2026 Earnings call January 29, 2026 05:00 PM ET Speaker1Welcome to Visa's Fiscal First Quarter 2026 Earnings Conference Call. All participants are in a listen-only mode until the question-and-answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would like to now introduce to your conference to your host, Ms. Jennifer Como, Senior Vice President and Global Head of Investor Relations. Ms. Como, you may begin.Speaker0Thank you. Go ...

Financial Data and Key Metrics Changes - The company generated $1.6 billion of net loan growth quarter-over-quarter, with a 19 basis point increase in net interest margin [4][5] - Net interest income was $331.6 million for the quarter, up approximately $41 million or 14% linked quarter [5] - Net income was approximately $128.4 million, up 22.6% from $104.7 million in the prior year's second quarter [8] - Diluted earnings per share increased to $2.22, representing a 23.3% year-over-year increase [8] Business Line Data and Key Metrics Changes - Total originations for investments, excluding single-family warehouse lending, were $5.6 billion, representing a 35% increase linked quarter [8] - Non-interest income increased by approximately $21 million quarter-over-quarter, driven by higher banking service fees and broker-dealer fee income [6] - Non-interest income from Verdant was approximately $18.9 million in the quarter [6] Market Data and Key Metrics Changes - Ending deposit balances were $23.2 billion, up 44.3% linked quarter and 16.5% year-over-year [9] - Average non-interest-bearing deposits were approximately $3.5 billion, compared to $3 billion in the prior quarter [10] - Total assets under custody or administration increased from $43 billion to $44.4 billion [17] Company Strategy and Development Direction - The company aims to generate loan growth in the low to mid-teens on an annual basis, with a focus on deepening relationships with existing vendors and accelerating growth in previously constrained verticals [12][20] - The integration of artificial intelligence across various business units is expected to enhance operational efficiency and innovation [18][19] - The acquisition of Verdant is seen as a strategic fit, contributing to the company's commercial lending franchise and expected to achieve EPS accretion [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth despite anticipated declines in net interest margin due to robust loan demand [27][28] - The company does not anticipate material losses from loans currently classified as non-performing [17] - Management highlighted the importance of a balanced growth strategy across various business lines to sustain long-term performance [35] Other Important Information - Non-interest expenses were approximately $184.6 million, with Verdant contributing $7.8 million in salaries and benefits expenses [23] - Provisions for credit losses increased to $25 million, driven by robust loan growth in commercial lending categories [25] - The company is focused on maintaining salaries and benefits expense growth at 30% of revenue growth or lower on an annual basis [23] Q&A Session Summary Question: What is the outlook for net interest margin? - Management confirmed a normalized level of 4.72% and expects a 5-6 basis point decline due to robust loan demand [27][28] Question: Can you discuss the pipeline for team liftouts? - Management indicated that they have successfully completed several team liftouts and are focused on developing those teams further [29] Question: What is the growth outlook for Verdant? - Management expects Verdant to achieve growth of approximately $150 million per quarter, with strong integration and cultural fit enhancing performance [52] Question: How is the company managing deposit growth? - Management noted that deposit growth was primarily driven by specialty deposits and commercial segments, with a balanced approach across various areas [41]

Financial Data and Key Metrics Changes - FinWise Bancorp reported a net income of $3.9 million for Q4 2025, with diluted earnings per share of $0.27, reflecting a 26% year-over-year growth in net income [4][16] - Net interest income increased to $24.6 million from $18.6 million in the prior quarter, driven by growth in credit-enhanced balances [17][18] - The net interest margin rose to 11.42% compared to 9.01% in the previous quarter, primarily due to the growth in the credit-enhanced loan portfolio [18] - Non-interest income was $22.3 million, up from $18 million in the prior quarter, mainly due to increases in credit enhancement income [19] Business Line Data and Key Metrics Changes - Loan originations totaled $1.6 billion in Q4, exceeding guidance of $1.4 billion, bringing full-year originations to $6.1 billion, a 22% increase year-over-year [4][5] - The credit-enhanced product saw balances of $118 million, surpassing the $115 million outlook [5] - Quarterly net charge-offs were $6.7 million, up from $3.1 million in the prior quarter, influenced by updated servicing standards [11] Market Data and Key Metrics Changes - The SBA loan originations decreased quarter-over-quarter due to processing delays from staffing cuts at the SBA and the government shutdown [13][15] - The total non-performing loan (NPL) balance was $43.7 million at the end of the quarter, with a modest increase of less than $1 million [12] Company Strategy and Development Direction - The company is focused on building durable, long-term growth by pursuing opportunities that enhance future value, including strategic partnerships and the integration of AI technologies [8][9] - FinWise aims to expand its credit-enhanced loan portfolio while managing risk through disciplined approaches to expense management and operational efficiency [4][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook ahead, emphasizing the stability of credit trends and the potential for continued growth in loan originations [10][22] - The company anticipates a gradual moderation in NPL migration and expects to maintain a stable SBA portfolio while continuing to grow the credit-enhanced segment [22][56] Other Important Information - The company is actively exploring AI opportunities to drive efficiency and automation across various functions, including compliance and operations [8][66] - The efficiency ratio for the quarter was reported at 50.5%, compared to 47.6% in the prior quarter, indicating a focus on sustainable operating leverage [20] Q&A Session Summary Question: Opportunities to lower CD funding costs - Management indicated that CD funding costs are tied to wholesale funding rates, which may decrease gradually as the Fed lowers interest rates [25] Question: Progression of MoneyRails and BIN Sponsorship potential - Management remains confident in the BIN payments strategy, although the timing may extend beyond initial expectations [26] Question: SBA business outlook and originations - Management noted solid demand for SBA loans, with a slight decrease in originations due to timing delays rather than demand issues [28] Question: Surge in non-interest-bearing deposits - The increase in deposits was attributed to strategic partners preparing for higher student loan volumes, which are expected to decrease as origination volumes normalize [34] Question: Recontracting process with partners - Management reported a historically positive recontracting process, with no significant concerns regarding upcoming contract renewals [39] Question: Impact of fintech obtaining bank charters - Management believes that not all fintechs will benefit from obtaining a bank charter, as it may not align with their business models [41] Question: Cross-selling products with existing partners - Management highlighted the potential for cross-selling products to existing partners, which does not require the same scale as standalone products [45]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $248 million, a 22% year-over-year increase, while full-year revenue was $951 million, representing 20% year-over-year growth [4][15] - Non-GAAP operating margin for the fourth quarter was 24.9%, compared to 20.2% last year, and for the full year, it was 24.7%, down from 25.2% last year [17] - Core revenue, now referred to as subscription services revenue, was $56 million in the fourth quarter, a 17% year-over-year increase [15][16] Business Line Data and Key Metrics Changes - Subscription services revenue for the full year was $211 million, representing 17% growth year-over-year [16] - Fourth quarter revenue from value-added services grew 20% year-over-year to $185 million, reflecting greater adoption of various services [16][17] - Full-year value-added services revenue was $722 million, representing 19% growth year-over-year [17] Market Data and Key Metrics Changes - The company managed approximately 9.4 million units from 22,096 customers, compared to 8.7 million units from 20,784 customers a year ago, representing an 8% increase in units and a 6% increase in customers [16] - Adoption of premium tiers, Plus and Max, exceeded 25%, indicating success with both SMB and upmarket customers [10] Company Strategy and Development Direction - The company focuses on three strategic pillars: Differentiate to Win, Deliver Performance Efficiently, and Great People and Culture [6][11] - The introduction of AI-native features aims to transform property management into performance management, enhancing customer operations [6][9] - The company is positioned to lead the transition towards a unified platform that reduces fragmentation and enhances customer experience [5][10] Management's Comments on Operating Environment and Future Outlook - Management noted that while 81% of managers feel positive about the market, rising operating costs and pressure on occupancy rates remain challenges [5] - The 2026 guidance for annual revenue is projected to be between $1.1 billion and $1.12 billion, with a midpoint growth rate of 17% [19] - Management emphasized the importance of innovation and execution in achieving customer performance and business growth [20] Other Important Information - The company has been recognized on Forbes' America's Most Successful Midcap Companies and Time Magazine's America's Growth Leaders, validating its strategy and momentum [4] - The company ended 2025 with 1,702 employees, reflecting a 4% increase from the previous year, indicating growth in various functional areas [18] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - The company reported growth in adjusted earnings per share despite declines in loan performance and loan volume [14] - Loan unit volume improved to a decline of 9.1% this quarter, compared to a decline of 16.5% last quarter, while loan dollar volume improved to a decline of 11.3% this quarter, versus a decline of 19.4% last quarter [16] - Changes to the forecast of future net cash flows improved, with the rate of decline narrowing from $58.6 million (0.5%) in Q3 2025 to $34.2 million (0.3%) in Q4 2025 [16] Business Line Data and Key Metrics Changes - The company financed nearly 72,000 contracts for dealers and consumers, collecting $1.3 billion overall [14] - The underperformance of the 2024 vintage was primarily related to loans originated prior to the scorecard change during Q3 2024 [15] - The number of active dealers declined by 2.8% year over year, and the average unit volume per active dealer declined by 6.4% year over year [17] Market Data and Key Metrics Changes - The company's market share in the core segment of used vehicles financed by subprime consumers was 4.5% for the first two months of Q4, down from 5.4% for the same period in 2024 [17] - The loan portfolio increased by 1% year over year on an adjusted basis [17] Company Strategy and Development Direction - The company aims to deepen relationships within its dealer network, support dealers in acquiring new consumers, and leverage data-driven insights [8] - The strategic objectives include generating dealer and consumer demand, empowering dealers through preferred channels, and delivering world-class servicing and processing [9] - The company is investing in artificial intelligence to enhance customer service and improve efficiency [9] Management's Comments on Operating Environment and Future Outlook - The CEO emphasized a long-term conservative approach to lending and credit scoring, focusing on improving customer experience [20] - The management believes the company is well-positioned to serve subprime customers and will continue to focus on making the experience frictionless [37] - The CEO expressed excitement about building a customer-obsessed company while maintaining a disciplined approach to capital allocation [13] Other Important Information - The company was named one of America's top 100 Most Loved Workplaces for the second consecutive year, ranking number 6 [12] - The new contract origination experience was rolled out to better meet the needs of franchise and large independent dealers [10] Q&A Session Summary Question: How will the new CEO manage credit lending and underwriting? - The CEO stated that the approach towards lending and credit scoring will be conservative and long-term focused, with ongoing improvements to credit scoring models [20] Question: What drove the increase in provision for new originations? - The CFO explained that the provision is influenced by the mix between the portfolio and purchase program, with the purchase program having a higher initial provision [22][23] Question: What is the competitive environment like, given the decline in market share? - The CEO noted that the competitive environment is evolving, and the company is focused on being customer-centric rather than competitive-centric [26] Question: How does the company view affordability issues and high used car prices? - The CEO mentioned that the company is well-positioned to serve subprime customers and will continue to take a conservative approach regardless of economic cycles [36] Question: Will there be any changes in capital returns or buyback strategies? - The CEO confirmed that the company will stay the course regarding capital allocation and buyback strategies [38]