• LPL Financial Announces First Quarter 2025 Results

    来源: Nasdaq GlobeNewswire / 08 5月 2025 15:05:03   America/Chicago

    Key Financial Results:

    • Net Income was $319 million, translating to diluted earnings per share ("EPS") of $4.24, up 11% from a year ago
    • Adjusted EPS* increased 22% year-over-year to $5.15
      • Gross profit* increased 19% year-over-year to $1,273 million
      • Core G&A* increased 14% year-over-year to $413 million
      • Adjusted 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-over-year to $977 billion
      • Advisory assets as a percentage of total assets decreased to 54.5%, down from 55.0% a year ago
    • Total organic net new assets were $71 billion, representing 16% annualized growth
      • This included $27 billion of assets from Prudential Advisors ("Prudential") and $16 billion of assets from Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, "Wintrust") that onboarded during the first quarter, as well as $0.7 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Prior to these impacts, organic net new assets were $29 billion, translating to a 7% annualized growth rate
    • Recruited assets(1) were $39 billion, up 91% from a year ago
      • Recruited assets over the trailing twelve months were a record of $167 billion
    • Total client cash balances were $53 billion, a decrease of $2 billion sequentially and an increase of $7 billion year-over-year
      • Client cash balances as a percentage of total assets were 3.0%, down from 3.2% in the prior quarter and prior year

    Key Capital and Liquidity Results:

    • Corporate cash(2) was $621 million
    • Leverage ratio(3) was 1.82x
    • Share repurchases were $100 million and dividends paid were $22.4 million

    *See the Non-GAAP Financial Measures section and the endnotes to this release for further details about these non-GAAP financial measures

    Key Updates

    Large Institutions:

    • Prudential: Completed the onboarding of Prudential, with $67 billion of brokerage and advisory assets, of which $27 billion transitioned onto our platform in Q1
    • Wintrust: Onboarded Wintrust, with $16 billion of brokerage and advisory assets transitioning onto our platform in Q1
    • First Horizon Bank ("First Horizon"): In April 2025, announced a strategic relationship agreement with First Horizon to transition support of the broker-dealer and investment advisory services of First Horizon Advisors, Inc., to LPL’s Institution Services platform, expected to be completed in the second half of 2025. First Horizon supports approximately 110 financial advisors who collectively serve $16 billion of client assets

    M&A:

    • Commonwealth Financial Network ("Commonwealth"): Announced a definitive purchase agreement to acquire Commonwealth, a privately-held independent wealth management firm headquartered in Massachusetts. Commonwealth supports approximately 3,000 advisors in the U.S., managing $285 billion of brokerage and advisory assets. The Company expects to close the transaction in the second half of 2025, subject to receipt of regulatory approvals and other closing conditions. Conversion is expected to be completed in mid-2026
    • Atria Wealth Solutions, Inc. ("Atria"): On-track to complete the conversion in mid-2025
    • The Investment Center, Inc. ("The Investment Center"): Closed on the acquisition of The Investment Center, with $7 billion of brokerage and advisory assets
    • Liquidity & Succession: Deployed approximately $100 million of capital to close 10 deals in Q1, including one external practice

    Capital Management:

    • Common Stock Offering: In April 2025, issued $1.7 billion of common stock at a price of $320 per share. Net proceeds from the common stock offering are expected to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth
    • Corporate Debt:
      • In February 2025, issued $1.25 billion of senior unsecured notes, including $750 million of 5.200% notes due 2030 and $500 million of 5.650% notes due 2035. Net proceeds from this offering were used to repay outstanding borrowings under the Company's revolving credit facility
      • In April 2025, issued $1.50 billion of senior unsecured notes, including $500 million of 4.900% notes due 2028, $500 million of 5.150% notes due 2030 and $500 million of 5.750% notes due 2035. Net proceeds from this offering are expected to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth

    Core G&A:

    • Lowered the upper end of our 2025 Core G&A* outlook range by $15 million, resulting in an updated range of $1,730 million to $1,765 million. This includes $170 million to $180 million related to Prudential and Atria, but is prior to costs associated with Commonwealth

    SAN DIEGO, May 08, 2025 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq: LPLA) (the "Company") today announced results for its first quarter ended March 31, 2025, reporting net income of $319 million, or $4.24 per share. This compares with $289 million, or $3.83 per share, in the first quarter of 2024 and $271 million, or $3.59 per share, in the prior quarter.

    "It’s been a strong start to the year for LPL," said Rich Steinmeier, CEO. "We delivered another quarter of strong business performance, reported excellent financial results, and reached an agreement to acquire Commonwealth, significantly accelerating our progress toward our vision to be the best firm in wealth management."

    "In the first quarter, we delivered solid business performance and financial results," said Matt Audette, President and CFO. "We onboarded Prudential and Wintrust and are preparing to onboard First Horizon later this year. As a complement to our strong organic growth, we closed and onboarded the acquisition of The Investment Center in March, continue to prepare to onboard our Atria advisors, and lastly, entered into an agreement to acquire Commonwealth Financial Network. Looking ahead, our business momentum and financial strength position us well to continue delivering shareholder value."

    Dividend Declaration

    The Company's Board of Directors declared a $0.30 per share dividend to be paid on June 12, 2025 to all stockholders of record as of May 30, 2025.

    Conference Call and Additional Information

    The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, May 8, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.

    Contacts

    Investor Relations
    investor.relations@lplfinancial.com

    Media Relations
    media.relations@lplfinancial.com

    About LPL Financial

    LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace(4), LPL supports over 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.8 trillion in brokerage and advisory assets on behalf of approximately 7 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

    Securities and advisory services offered through LPL Financial LLC ("LPL Financial") or its affiliate LPL Enterprise, LLC ("LPL Enterprise"), both registered investment advisers and broker-dealers. Members FINRA/SIPC.

    Throughout this communication, the terms "financial advisors" and "advisors" are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial or LPL Enterprise.

    We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

    Forward-Looking Statements

    This press release contains statements regarding:

    • the expected closing of the Company’s acquisition of Commonwealth;
    • the use of proceeds from the issuance of common stock and senior notes to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth;
    • the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Atria, Commonwealth, First Horizon and The Investment Center;
    • the Company's future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company's ICA yield, service and fee revenue, transaction revenue, core G&A expense, promotional expense, interest expense and income, depreciation and amortization, leverage ratio (including plans to reduce leverage) and share repurchases; and
    • future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.

    These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company's expectations and objectives as of May 8, 2025 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:

    • the failure to satisfy the closing conditions applicable to the Company's purchase agreement with Commonwealth, including regulatory approvals;
    • difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;
    • disruptions in the businesses of the Company and Commonwealth that could make it more difficult to maintain relationships with advisors and their clients;
    • the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;
    • changes in general economic and financial market conditions, including retail investor sentiment;
    • changes in interest rates and fees payable by banks participating in the Company's client cash programs, including the Company's success in negotiating agreements with current or additional counterparties;
    • the Company's strategy and success in managing client cash program fees;
    • fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;
    • effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively;
    • whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
    • changes in the growth and profitability of the Company's fee-based offerings and asset-based revenues;
    • the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;
    • the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;
    • changes made to the Company's services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company’s gross profit streams and costs;
    • the execution of the Company's capital management plans, including its compliance with the terms of the Company's amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company's senior unsecured notes;
    • strategic acquisitions and investments, including pursuant to the Company's Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company’s capital management plans and liquidity;
    • the price, availability and trading volumes of shares of the Company's common stock, which will affect the timing and size of future share repurchases by the Company, if any;
    • the execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;
    • whether advisors affiliated with Atria, Commonwealth, First Horizon, and The Investment Center will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
    • the performance of third-party service providers to which business processes have been transitioned;
    • the Company's ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and
    • the other factors set forth in the Company's most recent Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission. 

    Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company's view as of any date subsequent to the date of this press release.

    LPL Financial Holdings Inc.
    Condensed Consolidated Statements of Income
    (In thousands, except per share data)
    (Unaudited)
         
     Three Months Ended Three Months Ended 
     March 31,December 31, March 31, 
      2025  2024Change 2024Change
    REVENUE     
    Advisory$1,689,245 $1,595,8346%$1,199,81141%
    Commission:     
    Sales-based 610,038  525,79516% 385,23558%
    Trailing 437,719  439,668—% 361,21121%
    Total commission 1,047,757  965,4639% 746,44640%
    Asset-based:     
    Client cash 392,031  378,8163% 352,38211%
    Other asset-based 303,210  290,9624% 248,33922%
    Total asset-based 695,241  669,7784% 600,72116%
    Service and fee 145,199  139,1194% 132,17210%
    Transaction 67,864  61,53510% 57,25819%
    Interest income, net 43,851  46,680(6%) 43,5251%
    Other (19,150) 33,942n/m 52,660n/m
    Total revenue 3,670,007  3,512,3514% 2,832,59330%
    EXPENSE     
    Advisory and commission 2,353,925  2,250,4275% 1,733,48736%
    Compensation and benefits 305,546  321,933(5%) 274,36911%
    Promotional 145,645  162,057(10%) 126,61915%
    Depreciation and amortization 92,356  92,032—% 67,15838%
    Interest expense on borrowings 85,862  81,9795% 60,08243%
    Occupancy and equipment 77,240  75,5382% 66,26417%
    Brokerage, clearing and exchange 44,138  34,78927% 30,53245%
    Amortization of other intangibles 43,521  42,6142% 29,55247%
    Professional services 36,326  32,05513% 13,279174%
    Communications and data processing 19,506  18,7724% 19,744(1%)
    Other 48,689  58,874(17%) 37,31530%
    Total expense 3,252,754  3,171,0703% 2,458,40132%
    INCOME BEFORE PROVISION FOR INCOME TAXES 417,253  341,28122% 374,19212%
    PROVISION FOR INCOME TAXES 98,680  70,53240% 85,42816%
    NET INCOME$318,573 $270,74918%$288,76410%
    EARNINGS PER SHARE     
    Earnings per share, basic$4.27 $3.6218%$3.8710%
    Earnings per share, diluted$4.24 $3.5918%$3.8311%
    Weighted-average shares outstanding, basic 74,600  74,785—% 74,562—%
    Weighted-average shares outstanding, diluted 75,112  75,337—% 75,463—%
                


    LPL Financial Holdings Inc.
    Condensed Consolidated Statements of Financial Condition
    (In thousands, except share data)
    (Unaudited)
       
     March 31, 2025December 31, 2024
    ASSETS
    Cash and equivalents$1,229,181 $967,079 
    Cash and equivalents segregated under federal or other regulations 1,513,037  1,597,249 
    Restricted cash 112,458  119,724 
    Receivables from clients, net 613,766  633,834 
    Receivables from brokers, dealers and clearing organizations 112,249  76,545 
    Advisor loans, net 2,468,033  2,281,088 
    Other receivables, net 939,411  902,777 
    Investment securities ($122,729 and $42,267 at fair value at March 31, 2025 and December 31, 2024, respectively) 138,007  57,481 
    Property and equipment, net 1,237,693  1,210,027 
    Goodwill 2,213,100  2,172,873 
    Other intangibles, net 1,570,558  1,482,988 
    Other assets 1,815,729  1,815,739 
    Total assets$13,963,222 $13,317,404 
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    LIABILITIES:  
    Client payables$2,045,285 $1,898,665 
    Payables to brokers, dealers and clearing organizations 252,035  129,228 
    Accrued advisory and commission expenses payable 303,837  323,996 
    Corporate debt and other borrowings, net 5,686,678  5,494,724 
    Accounts payable and accrued liabilities 479,803  588,450 
    Other liabilities 2,071,801  1,951,739 
    Total liabilities 10,839,439  10,386,802 
    STOCKHOLDERS’ EQUITY:  
    Common stock, $0.001 par value; 600,000,000 shares authorized; 131,194,549 shares and 130,914,541 shares issued at March 31, 2025 and December 31, 2024, respectively 131  131 
    Additional paid-in capital 2,089,155  2,066,268 
    Treasury stock, at cost — 56,611,181 shares and 56,253,909 shares at March 31, 2025 and December 31, 2024, respectively (4,331,582) (4,202,322)
    Retained earnings 5,366,079  5,066,525 
    Total stockholders’ equity 3,123,783  2,930,602 
    Total liabilities and stockholders’ equity$13,963,222 $13,317,404 
           

    LPL Financial Holdings Inc.
    Management's Statements of Operations
    (In thousands, except per share data)
    (Unaudited)

    Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s unaudited condensed consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures" in this release.

     Quarterly Results
     Q1 2025Q4 2024ChangeQ1 2024Change
    Gross Profit(5)     
    Advisory$1,689,245 $1,595,834 6%$1,199,811 41%
    Trailing commissions 437,719  439,668 —% 361,211 21%
    Sales-based commissions 610,038  525,795 16% 385,235 58%
    Advisory fees and commissions 2,737,002  2,561,297 7% 1,946,257 41%
    Production-based payout(6) (2,374,368) (2,248,674)6% (1,686,332)41%
    Advisory fees and commissions, net of payout 362,634  312,623 16% 259,925 40%
    Client cash(7) 408,224  397,001 3% 373,408 9%
    Other asset-based(8) 303,210  290,962 4% 248,339 22%
    Service and fee 145,199  139,119 4% 132,172 10%
    Transaction 67,864  61,535 10% 57,258 19%
    Interest income, net(9) 27,637  28,481 (3%) 22,482 23%
    Other revenue(10) 2,023  32,705 (94%) 3,382 (40%)
    Total net advisory fees and commissions and attachment revenue 1,316,791  1,262,426 4% 1,096,966 20%
    Brokerage, clearing and exchange expense (44,138) (34,789)27% (30,532)45%
    Gross Profit(5) 1,272,653  1,227,637 4% 1,066,434 19%
    G&A Expense     
    Core G&A(11) 413,069  421,894 (2%) 363,513 14%
    Regulatory charges 6,887  7,335 (6%) 7,469 (8%)
    Promotional (ongoing)(12)(13) 151,932  173,191 (12%) 132,311 15%
    Acquisition costs excluding interest(13) 43,407  37,261 16% 9,524 n/m
    Employee share-based compensation 18,366  26,067 (30%) 22,633 (19%)
    Total G&A 633,661  665,748 (5%) 535,450 18%
    Loss on extinguishment of debt —  3,983 (100%) — —%
    EBITDA(14) 638,992  557,906 15% 530,984 20%
    Depreciation and amortization 92,356  92,032 —% 67,158 38%
    Amortization of other intangibles 43,521  42,614 2% 29,552 47%
    Interest expense on borrowings(15) 80,725  81,979 (2%) 60,082 34%
    Acquisition costs - interest(13) 5,137  — 100% — 100%
    INCOME BEFORE PROVISION FOR INCOME TAXES 417,253  341,281 22% 374,192 12%
    PROVISION FOR INCOME TAXES 98,680  70,532 40% 85,428 16%
    NET INCOME$318,573 $270,749 18%$288,764 10%
    Earnings per share, diluted$4.24 $3.59 18%$3.83 11%
    Weighted-average shares outstanding, diluted 75,112  75,337 —% 75,463 —%
    Adjusted EBITDA(14)$682,399 $584,783 17%$540,508 26%
    Adjusted pre-tax income(16)$509,318 $410,772 24%$413,268 23%
    Adjusted EPS(17)$5.15 $4.25 21%$4.21 22%
                  


    LPL Financial Holdings Inc.
    Operating Metrics
    (Dollars in billions, except where noted)
    (Unaudited)
          
     Q1 2025Q4 2024ChangeQ1 2024Change
    Market Drivers     
    S&P 500 Index (end of period) 5,612  5,882 (5%) 5,254 7%
    Russell 2000 Index (end of period) 2,012  2,230 (10%) 2,125 (5%)
    Fed Funds daily effective rate (average bps) 433  466 (33bps) 533 (100bps)
          
    Advisory and Brokerage Assets(18)     
    Advisory assets$977.4 $957.0 2%$793.0 23%
    Brokerage assets 817.5  783.7 4% 647.9 26%
    Total Advisory and Brokerage Assets$1,794.9 $1,740.7 3%$1,440.9 25%
    Advisory as a % of Total Advisory and Brokerage Assets 54.5% 55.0%(50bps) 55.0%(50bps)
          
    Assets by Platform     
    Corporate advisory assets(19)$699.1 $678.3 3%$537.6 30%
    Independent RIA advisory assets(19) 278.3  278.7 —% 255.4 9%
    Brokerage assets 817.5  783.7 4% 647.9 26%
    Total Advisory and Brokerage Assets$1,794.9 $1,740.7 3%$1,440.9 25%
          
    Centrally Managed Assets     
    Centrally managed assets(20) $164.4 $160.0 3%$121.7 35%
    Centrally Managed as a % of Total Advisory Assets 16.8% 16.7%10bps 15.3%150bps
                


    LPL Financial Holdings Inc.
    Operating Metrics
    (Dollars in billions, except where noted)
    (Unaudited)
          
     Q1 2025Q4 2024ChangeQ1 2024Change
    Organic Net New Assets (NNA)(21)     
    Organic net new advisory assets$35.7 $49.3 n/m$16.2 n/m
    Organic net new brokerage assets 35.2  18.8 n/m 0.5 n/m
    Total Organic Net New Assets$70.9 $68.0 n/m$16.7 n/m
          
    Acquired Net New Assets(21)     
    Acquired net new advisory assets$1.9 $21.8 n/m$— n/m
    Acquired net new brokerage assets 6.0  67.5 n/m — n/m
    Total Acquired Net New Assets$7.9 $89.3 n/m$— n/m
          
    Total Net New Assets(21)     
    Net new advisory assets$37.6 $71.1 n/m$16.2 n/m
    Net new brokerage assets 41.2  86.2 n/m 0.5 n/m
    Total Net New Assets$78.8 $157.3 n/m$16.7 n/m
          
    Net brokerage to advisory conversions(22)$5.9 $4.8 n/m$3.6 n/m
    Organic advisory NNA annualized growth(23) 14.9% 22.1%n/m 8.8%n/m
    Total organic NNA annualized growth(23) 16.3% 17.1%n/m 4.9%n/m
          
    Net New Advisory Assets(21)     
    Corporate RIA net new advisory assets$31.7 $64.5 n/m$13.9 n/m
    Independent RIA net new advisory assets 5.9  6.6 n/m 2.3 n/m
    Total Net New Advisory Assets$37.6 $71.1 n/m$16.2 n/m
    Centrally managed net new advisory assets(21)$6.5 $24.9 n/m$3.6 n/m
          
    Net buy (sell) activity(24)$42.0 $38.3 n/m$37.8 n/m

    Note: Totals may not foot due to rounding.

    LPL Financial Holdings Inc.
    Client Cash Data
    (Dollars in thousands, except where noted)
    (Unaudited)
          
     Q1 2025Q4 2024ChangeQ1 2024Change
    Client Cash Balances (in billions)(25)     
    Insured cash account sweep$36.1 $38.3 (6%)$32.6 11%
    Deposit cash account sweep 10.7  10.7 —% 9.2 16%
    Total Bank Sweep 46.8  49.0 (4%) 41.8 12%
    Money market sweep 4.3  4.3 —% 2.4 79%
    Total Client Cash Sweep Held by Third Parties 51.1  53.3 (4%) 44.2 16%
    Client cash account (CCA) 1.9  1.8 6% 2.1 (10%)
    Total Client Cash Balances$53.1 $55.1 (4%)$46.3 15%
    Client Cash Balances as a % of Total Assets 3.0% 3.2%(20bps) 3.2%(20bps)
                

    Note: Totals may not foot due to rounding.

     Three Months Ended
     March 31, 2025December 31, 2024March 31, 2024
    Interest-Earnings AssetsAverage Balance
    (in billions)    		RevenueNet Yield (bps)(26)Average Balance
    (in billions)    		RevenueNet Yield (bps)(26)Average Balance
    (in billions)    		RevenueNet Yield (bps)(26)
    Insured cash account sweep$36.0$299,618337$34.8$292,661335$33.2$266,792323
    Deposit cash account sweep 10.2 89,728356 9.8 83,879340 8.9 83,978378
    Total Bank Sweep 46.2 389,346341 44.6 376,540336 42.1 350,770335
    Money market sweep 4.1 2,68526 3.3 2,27728 2.3 1,61228
    Total Client Cash Held By Third Parties 50.4 392,031316 47.9 378,817315 44.4 352,382319
    Client cash account (CCA) 1.8 16,193368 1.8 18,184407 1.8 21,026467
    Total Client Cash 52.2 408,224317 49.7 397,001318 46.2 373,408325
    Margin receivables 0.6 11,444789 0.6 11,506829 0.5 10,249890
    Other interest revenue 1.3 16,193512 1.3 16,975524 0.9 12,233535
    Total Client Cash and Interest Income, Net$54.0$435,861327$51.6$425,482329$47.6$395,890334
                    

    Note: Totals may not foot due to rounding.

    LPL Financial Holdings Inc.
    Monthly Metrics
    (Dollars in billions, except where noted)
    (Unaudited)
          
     March 2025February 2025ChangeJanuary 2025December 2024
    Advisory and Brokerage Assets(18)     
    Advisory assets$977.4$995.0(2%)$992.4$957.0
    Brokerage assets 817.5 828.2(1%) 819.4 783.7
    Total Advisory and Brokerage Assets$1,794.9$1,823.1(2%)$1,811.8$1,740.7
          
    Organic Net New Assets (NNA)(21)     
    Organic net new advisory assets$12.7$9.6n/m$13.4$12.5
       Organic net new brokerage assets 0.5 14.1n/m 20.5 12.9
    Total Organic Net New Assets $13.1$23.8n/m$34.0$25.5
          
    Acquired Net New Assets(21)     
       Acquired net new advisory assets$1.8$—n/m$0.1$—
       Acquired net new brokerage assets 5.3 0.7n/m —$0.2
    Total Acquired Net New Assets $7.1$0.7n/m$0.1$0.3
          
    Total Net New Assets(21)     
    Net new advisory assets$14.5$9.6n/m$13.5$12.6
    Net new brokerage assets 5.8 14.8n/m 20.6 13.2
    Total Net New Assets$20.2$24.5n/m$34.1$25.8
    Net brokerage to advisory conversions(22)$1.9$1.9n/m$2.1$2.0
          
    Client Cash Balances(25)     
    Insured cash account sweep$36.1$35.61%$36.2$38.3
    Deposit cash account sweep 10.7 10.25% 10.0 10.7
    Total Bank Sweep  46.8 45.82% 46.3 49.0
    Money market sweep 4.3 4.08% 4.1 4.3
    Total Client Cash Sweep Held by Third Parties 51.1 49.83% 50.4 53.3
    Client cash account (CCA) 1.9 1.527% 1.8 1.8
    Total Client Cash Balances$53.1$51.34%$52.2$55.1
          
    Net buy (sell) activity(24) $13.2$14.3n/m$14.5$13.5
          
    Market Drivers     
    S&P 500 Index (end of period) 5,612 5,955(6%) 6,041 5,882
    Russell 2000 Index (end of period) 2,012 2,163(7%) 2,288 2,230
    Fed Funds effective rate (average bps) 433 433—bps 433 448
              

    Note: Totals may not foot due to rounding.

    LPL Financial Holdings Inc.
    Financial Measures
    (Dollars in thousands, except where noted)
    (Unaudited)
          
     Q1 2025Q4 2024ChangeQ1 2024Change
    Commission Revenue by Product     
    Annuities$615,594 $561,918 10%$436,473 41%
    Mutual funds 233,895  232,529 1% 186,540 25%
    Fixed income 61,553  59,332 4% 48,641 27%
    Equities 49,074  45,829 7% 35,451 38%
    Other 87,641  65,855 33% 39,341 123%
    Total commission revenue$1,047,757 $965,463 9%$746,446 40%
          
    Commission Revenue by Sales-based and Trailing   
    Sales-based commissions     
    Annuities$365,767 $314,591 16%$229,077 60%
    Mutual funds 55,607  52,908 5% 43,496 28%
    Fixed income 61,553  59,332 4% 48,641 27%
    Equities 49,074  45,829 7% 35,451 38%
    Other 78,037  53,135 47% 28,570 173%
    Total sales-based commissions$610,038 $525,795 16%$385,235 58%
    Trailing commissions     
    Annuities$249,827 $247,327 1%$207,396 20%
    Mutual funds 178,288  179,621 (1%) 143,044 25%
    Other 9,604  12,720 (24%) 10,771 (11%)
    Total trailing commissions$437,719 $439,668 —%$361,211 21%
    Total commission revenue$1,047,757 $965,463 9%$746,446 40%
          
    Payout Rate(6) 86.75% 87.79%(104bps) 86.64%11bps
                


    LPL Financial Holdings Inc.
    Capital Management Measures
    (Dollars in thousands, except where noted)
    (Unaudited)
       
     Q1 2025Q4 2024
    Cash and equivalents$1,229,181 $967,079 
    Cash at regulated subsidiaries (1,085,459) (884,779)
    Excess cash at regulated subsidiaries per the Credit Agreement 476,908  397,138 
    Corporate Cash(2)$620,630 $479,438 
       
    Corporate Cash(2)  
    Cash at LPL Holdings, Inc.$104,080 $39,782 
    Excess cash at regulated subsidiaries per the Credit Agreement 476,908  397,138 
    Cash at non-regulated subsidiaries 39,642  42,518 
    Corporate Cash$620,630 $479,438 
       
    Leverage Ratio  
    Total debt$5,720,000 $5,517,000 
    Total corporate cash 620,630  479,438 
    Credit Agreement Net Debt$5,099,370 $5,037,562 
    Credit Agreement EBITDA (trailing twelve months)(27)$2,797,285 $2,665,033 
    Leverage Ratio1.82x1.89x
       


     March 31, 2025 
    Total DebtBalanceCurrent Applicable
    Margin    		Interest RateMaturity
    Revolving Credit Facility(a)$—ABR+37.5 bps / SOFR+147.5 bps5.794%5/20/2029
    Broker-Dealer Revolving Credit Facility —SOFR+135 bps5.760%5/19/2025
    Senior Unsecured Term Loan A 1,020,000SOFR+147.5 bps(b)5.798%12/5/2026
    Senior Unsecured Notes 500,0005.700% Fixed5.700%5/20/2027
    Senior Unsecured Notes 400,0004.625% Fixed4.625%11/15/2027
    Senior Unsecured Notes 750,0006.750% Fixed6.750%11/17/2028
    Senior Unsecured Notes 900,0004.000% Fixed4.000%3/15/2029
    Senior Unsecured Notes 750,0005.200% Fixed5.200%3/15/2030
    Senior Unsecured Notes 400,0004.375% Fixed4.375%5/15/2031
    Senior Unsecured Notes 500,0006.000% Fixed6.000%5/20/2034
    Senior Unsecured Notes 500,0005.650% Fixed5.650%3/15/2035
    Total / Weighted Average$5,720,000 5.376% 
           

    (a) Unsecured borrowing capacity of $2.25 billion at LPL Holdings, Inc.
    (b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps.

    LPL Financial Holdings Inc.
    Key Business and Financial Metrics
    (Dollars in thousands, except where noted)
    (Unaudited)
          
     Q1 2025Q4 2024ChangeQ1 2024Change
    Business Metrics     
    Advisors 29,493  28,888 2% 22,884 29%
    Net new advisors 605  5,202 (88%) 224 170%
    Annualized advisory fees and commissions per advisor(28)$375 $390 (4%)$342 10%
    Average total assets per advisor ($ in millions)(29)$60.9 $60.3 1%$63.0 (3%)
    Transition assistance loan amortization ($ in millions)(30)$81.8 $76.3 7%$58.3 40%
    Total client accounts (in millions) 10.4  10.0 4% 8.4 24%
    Recruited AUM ($ in billions) 38.6  78.7 (51%) 20.2 91%
          
    Employees(31) 9,118  9,051 1% 8,252 10%
          
    AUM retention rate (quarterly annualized)(32) 98.2% 97.3%90bps 97.4%80bps
          
    Capital Management     
    Capital expenditures ($ in millions)(33)$119.5 $165.5 (28%)$121.0 (1%)
    Acquisitions, net ($ in millions)(34)$95.1 $847.9 (89%)$10.2 n/m
          
    Share repurchases ($ in millions)$100.0 $100.0 —%$70.0 43%
    Dividends ($ in millions) 22.4  22.5 —% 22.4 —%
    Total Capital Returned ($ in millions)$122.4 $122.5 —%$92.4 32%
                

    Non-GAAP Financial Measures

    Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.

    Adjusted EPS and Adjusted net income

    Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles, acquisition costs, losses on extinguishment of debt, and amounts related to the departure of the Company's former Chief Executive Officer, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release.

    Gross profit

    Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release.

    Core G&A

    Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; losses on extinguishment of debt; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company's total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort.

    EBITDA and Adjusted EBITDA

    EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs, amounts related to the departure of the Company's former Chief Executive Officer, and losses on extinguishment of debt. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release.

    Adjusted pre-tax income

    Adjusted pre-tax income is defined as income before provision for income taxes plus amortization of other intangibles, acquisition costs, amounts related to the departure of the Company's former Chief Executive Officer, and losses on extinguishment of debt. The Company presents adjusted pre-tax income because management believes that it can provide investors with useful insight into the Company's core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company's ongoing operations. Adjusted pre-tax income is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to income before provision for income taxes or any other performance measure derived in accordance with GAAP. For a reconciliation of income before provision for income taxes to adjusted pre-tax income, please see the endnote disclosures in this release.

    Credit Agreement EBITDA

    Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company's amended and restated credit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release.

    Endnote Disclosures

    (1)Represents the estimated total advisory and brokerage assets expected to transition to the Company's primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate.
    (2)Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company's Credit Agreement, which include LPL Financial, LPL Enterprise, LLC, The Private Trust Company, N.A. and certain of Atria's introducing broker-dealer subsidiaries, in excess of the capital requirements of the Company's Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries.
    (3)Compliance with the Leverage Ratio is only required under the Company's revolving credit facility.
    (4)The Company was named a Top RIA custodian (Cerulli Associates, 2024 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021.
    (5)Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands):
      


      Q1 2025Q4 2024Q1 2024
     Total revenue(a)$3,670,007 $3,512,351 $2,832,593
     Advisory and commission expense 2,353,925  2,250,427  1,733,487
     Brokerage, clearing and exchange expense 44,138  34,789  30,532
     Employee deferred compensation (709) (502) 2,140
     Gross profit(a)$1,272,653 $1,227,637 $1,066,434


     (a)The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.
       


    (6) Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate):
      


      Q1 2025Q4 2024Q1 2024
     Advisory and commission expense$2,353,925 $2,250,427 $1,733,487 
     Plus (Less): Advisor deferred compensation 20,443  (1,753) (47,155)
     Production-based payout$2,374,368 $2,248,674 $1,686,332 
         
     Advisory and commission revenue$2,737,002 $2,561,297 $1,946,257 
         
     Payout rate 86.75% 87.79% 86.64%


    (7)Below is a reconciliation of client cash revenue per Management's Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company's condensed consolidated statements of income for the periods presented (in thousands):
      

     

         
      Q1 2025Q4 2024Q1 2024
     Client cash on Management's Statement of Operations$408,224 $397,001 $373,408 
     Interest income on CCA balances segregated under federal or other regulations(9) (16,193) (18,185) (21,026)
     Client cash on Condensed Consolidated Statements of Income$392,031 $378,816 $352,382 


    (8) Consists of revenue from the Company's sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs.
    (9)Below is a reconciliation of interest income, net per Management's Statements of Operations to interest income, net on the Company's condensed consolidated statements of income for the periods presented (in thousands):
      


      Q1 2025Q4 2024Q1 2024
     Interest income, net on Management's Statement of Operations$        27,637        $        28,481        $        22,482        
     Interest income on CCA balances segregated under federal or other regulations(7)         16,193                 18,185                 21,026        
     Interest income on deferred compensation         21                 14                 17        
     Interest income, net on Condensed Consolidated Statements of Income $        43,851        $        46,680        $        43,525        


    (10)Below is a reconciliation of other revenue per Management's Statements of Operations to other revenue on the Company's condensed consolidated statements of income for the periods presented (in thousands):
      

          

      Q1 2025Q4 2024Q1 2024
     Other revenue on Management's Statement of Operations(a)$2,023 $32,705 $3.382 
     Interest income on deferred compensation (21) (14) (17)
     Deferred compensation (21,152) 1,251  49,295 
     Other revenue on Condensed Consolidated Statements of Income $(19,150)$33,942 $52,660 


     (a)The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.
       


    (11)Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company's total expense to core G&A for the periods presented (in thousands):
      


      Q1 2025Q4 2024Q1 2024
     Core G&A Reconciliation   
     Total expense$3,252,754 $3,171,070 $2,458,401 
     Advisory and commission (2,353,925) (2,250,427) (1,733,487)
     Depreciation and amortization (92,356) (92,032) (67,158)
     Interest expense on borrowings(15) (85,862) (81,979) (60,082)
     Brokerage, clearing and exchange (44,138) (34,789) (30,532)
     Amortization of other intangibles (43,521) (42,614) (29,552)
     Employee deferred compensation 709  502  (2,140)
     Loss on extinguishment of debt —  (3,983) (—)
     Total G&A 633,661  665,748  535,450 
     Promotional (ongoing)(12)(13) (151,932) (173,191) (132,311)
     Acquisition costs excluding interest(13) (43,407) (37,261) (9,524)
     Employee share-based compensation (18,366) (26,067) (22,633)
     Regulatory charges (6,887) (7,335) (7,469)
     Core G&A$413,069 $421,894 $363,513 


    (12)Promotional (ongoing) includes $14.8 million, $13.4 million and $8.0 million for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the condensed consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs.
    (13)Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands):
      


      Q1 2025Q4 2024Q1 2024
     Acquisition costs   
     Fair value mark on contingent consideration(35)$6,594$11,249$—
     Compensation and benefits 17,417 15,950 3,850
     Professional services 6,145 7,357 3,246
     Promotional(12) 8,538 2,235 2,268
     Interest(15) 5,137 — —
     Other 4,713 470 160
     Acquisition costs$48,544$37,261$9,524


    (14)EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in thousands):
      

     

      Q1 2025Q4 2024Q1 2024
     EBITDA and adjusted EBITDA Reconciliation   
     Net income$318,573$270,749 $288,764
     Interest expense on borrowings(15) 85,862 81,979  60,082
     Provision for income taxes 98,680 70,532  85,428
     Depreciation and amortization 92,356 92,032  67,158
     Amortization of other intangibles 43,521 42,614  29,552
     EBITDA$638,992$557,906 $530,984
     Acquisition costs excluding interest(13) 43,407 37,261  9,524
     Departure of former Chief Executive Officer(a) — (14,367) —
     Loss on extinguishment of debt — 3,983  —
     Adjusted EBITDA$682,399$584,783 $540,508


     (a)The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.
       



    (15)Below is a reconciliation of interest expense on borrowings per Management's Statements of Operations to interest expense on borrowings on the Company's condensed consolidated statements of income for the periods presented (in thousands):
      

               

      Q1 2025Q4 2024Q1 2024
     Interest expense on borrowings on Management's Statement of Operations$80,725$81,979$60,082
     Cost of debt issuance related to Commonwealth acquisition(13) 5,137 — —
     Interest expense on borrowings on Condensed Consolidated Statements of Income $85,862$81,979$60,082


    (16)Adjusted pre-tax income is a non-GAAP financial measure. Please see a description of adjusted pre-tax income under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of income before provision for income taxes to adjusted pre-tax income for the periods presented (in thousands):
      

         

      Q1 2025Q4 2024Q1 2024
     Income before provision for income taxes$417,253$341,281 $374,192
     Amortization of other intangibles 43,521 42,614  29,552
     Acquisition costs(13) 48,544 37,261  9,524
     Departure of former Chief Executive Officer(a) — (14,367) —
     Loss on extinguishment of debt — 3,983  —
     Adjusted pre-tax income$509,318$410,772 $413,268


     (a)The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.
       

       

    (17)Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data):
      

     

      Q1 2025Q4 2024Q1 2024
      AmountPer ShareAmountPer ShareAmountPer Share
     Net income / earnings per diluted share$318,573 $4.24 $270,749 $3.59 $288,764 $3.83 
     Amortization of other intangibles 43,521  0.58  42,614  0.57  29,552  0.39 
     Acquisition costs(13) 48,544  0.65  37,261  0.49  9,524  0.13 
     Departure of former Chief Executive Officer(a) —  —  (14,367) (0.19) —  — 
     Loss on extinguishment of debt —  —  3,983  0.05  —  — 
     Tax benefit (23,937) (0.32) (19,978) (0.27) (10,340) (0.14)
     Adjusted net income / adjusted EPS$386,701 $5.15 $320,262 $4.25 $317,500 $4.21 
     Diluted share count 75,112   75,337   75,463  
     Note: Totals may not foot due to rounding.      


     (a)The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.
       



    (18)Consists of total advisory and brokerage assets under custody at the Company's primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to Atria’s seven introducing broker-dealer subsidiaries.
    (19)Assets on the Company's corporate advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company's independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial.
    (20)Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.
    (21)Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.
    (22)Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.
    (23)Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.
    (24)Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.
    (25)Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the condensed consolidated balance sheets. The following table presents purchased money market funds for the periods presented (in billions):
      

     

      Q1 2025Q4 2024Q1 2024
     Purchased money market funds$44.7$41.0$32.6


    (26)Calculated by dividing revenue for the period by the average balance during the period.
    (27)EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands):
      

     

      Q1 2025Q4 2024
     EBITDA and Credit Agreement EBITDA Reconciliations  
     Net income$        1,088,425        $        1,058,616        
     Interest expense on borrowings         299,961                 274,181        
     Provision for income taxes         347,528                 334,276        
     Depreciation and amortization         333,725                 308,527        
     Amortization of other intangibles         149,203                 135,234        
      EBITDA$        2,218,842        $        2,110,834        
     Credit Agreement Adjustments:  
     Acquisition costs and other(13)(36)$        249,870        $        223,614        
     Employee share-based compensation         84,690                 88,957        
     M&A accretion(37)         237,160                 235,048        
     Advisor share-based compensation         2,740                 2,597        
     Loss on extinguishment of debt         3,983                 3,983        
     Credit Agreement EBITDA$        2,797,285        $        2,665,033        


    (28)Calculated based on the average advisor count from the current period and prior periods.
    (29)Calculated based on the end of period total advisory and brokerage assets divided by end of period advisor count.
    (30)Represents amortization expense on forgivable loans for transition assistance to advisors and institutions.
    (31)During the first quarter of 2025, the Company updated its reporting of employees to include all full-time employees, including those reflected in Core G&A, promotional (ongoing) and advisory and commission expense. Prior period disclosures have been updated to reflect this change as applicable.
    (32)Reflects retention of total advisory and brokerage assets, calculated by deducting quarterly annualized attrition from total advisory and brokerage assets, divided by the prior quarter total advisory and brokerage assets.
    (33)Capital expenditures represent cash payments for property and equipment during the period.
    (34)Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period. Acquisitions, net for the three months ended March 31, 2025 excludes $70.2 million related to The Investment Center, which was prefunded on October 1, 2024 in conjunction with the close of the Atria acquisition, as well as cash inflows associated with working capital and other post-closing adjustments.
    (35)Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the condensed consolidated statements of income.
    (36)Acquisition costs and other primarily include acquisition costs related to Atria, costs incurred related to the integration of the strategic relationship with Prudential, a $26.4 million reduction related to the departure of the Company’s former Chief Executive Officer and related clawback of share-based compensation awards, and an $18.0 million regulatory charge recognized during the three months ended September 30, 2024 reflecting the amount of a penalty proposed by the SEC as part of its civil investigation of the Company’s compliance with certain elements of the Company’s AML compliance program.
    (37)M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of such acquisition.

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