# LPL Financial (LPLA) Q2 2025 Financial Results Summary
LPL Financial Holdings Inc. (Nasdaq: LPLA) announced its results for the second quarter of 2025 on July 31, 2025. The report highlights key financial metrics and business performance metrics compared to the previous year and quarter.
## Key Financial Results:
– **Net Income**: $273 million; diluted earnings per share (EPS) of **$3.40**, up **5%** from $3.23 a year ago.
– **Adjusted EPS**: Increased by **16%** year-over-year to **$4.51**.
– **Gross Profit**: Increased by **21%** to **$1,304 million**.
– **Core General & Administrative Expenses (G&A)**: Increased by **15%** to **$426 million**.
– **Adjusted Pre-tax Income**: Increased by **23%** year-over-year to **$490 million**.
## Key Business Results:
– **Advisory and Brokerage Assets**: Increased by **28%** year-over-year to **$1.9 trillion**.
– **Advisory Assets**: Increased by **28%** to **$1.1 trillion**; comprised **55.3%** of total assets, down from **55.4%** a year ago.
– **Organic Net New Assets**: Totaled **$21 billion**, representing an annualized growth of **5%**.
– This includes acquisitions of **$0.1 billion** from Wintrust Investments and **$4 billion** associated with planned separations.
– **Recruited Assets**: Amounted to $18 billion, a **24%** decline compared to the previous year.
– Recruited assets over the past twelve months totaled **$161 billion**.
– **Total Client Cash Balances**: Decreased by $2 billion sequentially, increased by **$7 billion** year-over-year to **$51 billion**.
– Client cash as a percentage of total assets decreased to **2.6%**, down from **3.0%** in the prior quarter and from **2.9%** a year ago.
## Key Capital and Liquidity Measures:
– **Corporate Cash**: **$3.6 billion**.
– **Leverage Ratio**: **1.23x**.
– **Dividends Paid**: **$24.0 million** declared foi quarter.
## Key Updates:
### Large Institutions:
– **Onboarding First Horizon Bank** expected in Q3 2025, serving approximately **120 advisors** with around **$17 billion** of assets.
### M&A Activity:
– **Atria Wealth Solutions**: Conversion to the LPL platform completed.
– **Commonwealth Financial Network**: Acquisition expected to close on **August 1, 2025**, with conversion planned for Q4 2026.
### Capital Management:
– Approximately **$105 million** of capital deployed to close nine deals in Q2, including one external practice.
## Financial Outlook:
– Core G&A outlook lowered to **$1,720 million – $1,750 million** including **$170 million – $180 million** related to Prudential and Atria.
– Increase in range by **$160-$170 million** to accommodate acquisition costs related to Commonwealth, resulting in an updated range of **$1,880 million – $1,920 million**.
### Conference Call:
The company will hold a conference call to discuss its results at **5:00 p.m. ET** on July 31, 2025.
## Summary
LPL Financial has demonstrated solid growth in its second quarter of 2025, showing a significant increase in net income, adjusted EBITDA, and total assets year-over-year. The firm’s strategic M&A activities and onboarding of institutions position them well in the competitive wealth management market, highlighting efforts for long-term shareholder value through strategic planning and operational efficiency.
### Dividend Declaration
The company’s Board declared a **$0.30 per share dividend** to be paid on **August 29, 2025**, to all stockholders of record as of **August 15, 2025**.
LPL Financial continues to support its advisors and institutions amid evolving market conditions, looking forward to continued growth and operational excellence.
| Three Months Ended | June 30, 2025 | March 31, 2025 | Change | June 30, 2024 | Change |
|---|---|---|---|---|---|
| REVENUE | |||||
| Advisory | $ 1,717,738 | $ 1,689,245 | 2 % | $ 1,288,163 | 33 % |
| Commission: | |||||
| Sales-based | 619,792 | 610,038 | 2 % | 423,070 | 46 % |
| Trailing | 418,295 | 437,719 | (4 %) | 363,976 | 15 % |
| Total commission | 1,038,087 | 1,047,757 | (1 %) | 787,046 | 32 % |
| Asset-based: | |||||
| Client cash | 397,332 | 392,031 | 1 % | 341,475 | 16 % |
| Other asset-based | 305,015 | 303,210 | 1 % | 259,533 | 18 % |
| Total asset-based | 702,347 | 695,241 | 1 % | 601,008 | 17 % |
| Service and fee | 151,839 | 145,199 | 5 % | 135,000 | 12 % |
| Interest income, net | 76,941 | 43,851 | 75 % | 47,478 | 62 % |
| Transaction | 60,541 | 67,864 | (11 %) | 58,935 | 3 % |
| Other | 87,532 | -19,150 | n/m | 14,139 | n/m |
| Total revenue | 3,835,025 | 3,670,007 | 4 % | 2,931,769 | 31 % |
| EXPENSE | |||||
| Advisory and commission | 2,483,165 | 2,353,925 | 5 % | 1,819,027 | 37 % |
| Compensation and benefits | 319,100 | 305,546 | 4 % | 274,000 | 16 % |
| Promotional | 177,552 | 145,645 | 22 % | 136,125 | 30 % |
| Interest expense on borrowings | 105,636 | 85,862 | 23 % | 64,341 | 64 % |
| Depreciation and amortization | 96,231 | 92,356 | 4 % | 70,999 | 36 % |
| Occupancy and equipment | 81,443 | 77,240 | 5 % | 69,529 | 17 % |
| Amortization of other intangibles | 46,103 | 43,521 | 6 % | 30,607 | 51 % |
| Brokerage, clearing and exchange | 43,290 | 44,138 | (2 %) | 32,984 | 31 % |
| Professional services | 41,092 | 36,326 | 13 % | 22,100 | 86 % |
| Communications and data processing | 21,417 | 19,506 | 10 % | 19,406 | 10 % |
| Other | 51,192 | 48,689 | 5 % | 62,580 | (18 %) |
| Total expense | 3,466,221 | 3,252,754 | 7 % | 2,601,698 | 33 % |
| INCOME BEFORE PROVISION FOR INCOME TAXES | 368,804 | 417,253 | (12 %) | 330,071 | 12 % |
| PROVISION FOR INCOME TAXES | 95,555 | 98,680 | (3 %) | 86,271 | 11 % |
| NET INCOME | $ 273,249 | $ 318,573 | (14 %) | $ 243,800 | 12 % |
| EARNINGS PER SHARE | |||||
| Earnings per share, basic | $ 3.42 | $ 4.27 | (20 %) | $ 3.26 | 5 % |
| Earnings per share, diluted | $ 3.40 | $ 4.24 | (20 %) | $ 3.23 | 5 % |
| Weighted-average shares outstanding, | 79,984 | 74,600 | 7 % | 74,725 | 7 % |
| basic | |||||
| Weighted-average shares outstanding, | 80,373 | 75,112 | 7 % | 75,548 | 6 % |
| diluted |
| June 30, 2025 | March 31, 2025 | December 31, 2024 | |
|---|---|---|---|
| ASSETS | |||
| Cash and equivalents | $ 4,185,337 | $ 1,229,181 | $ 967,079 |
| Cash and equivalents segregated under federal or other regulations | 1,611,200 | 1,513,037 | 1,597,249 |
| Restricted cash | 116,675 | 112,458 | 119,724 |
| Receivables from clients, net | 710,463 | 613,766 | 633,834 |
| Receivables from brokers, dealers and clearing organizations | 129,490 | 112,249 | 76,545 |
| Advisor loans, net | 2,536,190 | 2,468,033 | 2,281,088 |
| Other receivables, net | 951,063 | 939,411 | 902,777 |
| Investment securities ($124,639, $122,729, and $42,267 at fair value at June 30, 2025, March 31, 2025, and December 31, 2024, respectively) | 139,962 | 138,007 | 57,481 |
| Property and equipment, net | 1,278,991 | 1,237,693 | 1,210,027 |
| Goodwill | 2,213,393 | 2,213,100 | 2,172,873 |
| Other intangibles, net | 1,641,133 | 1,570,558 | 1,482,988 |
| Other assets | 1,959,779 | 1,815,729 | 1,815,739 |
| Total assets | $ 17,473,676 | $ 13,963,222 | $ 13,317,404 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
| LIABILITIES: | |||
| Client payables | $ 2,090,520 | $ 2,045,285 | $ 1,898,665 |
| Payables to brokers, dealers and clearing organizations | 273,593 | 252,035 | 129,228 |
| Accrued advisory and commission expenses payable | 303,614 | 303,837 | 323,996 |
| Corporate debt and other borrowings, net | 7,175,032 | 5,686,678 | 5,494,724 |
| Accounts payable and accrued liabilities | 556,086 | 479,803 | 588,450 |
| Other liabilities | 2,000,415 | 2, |
