LPL Financial (LPLA) investor relations material

Executive summary

• Achieved $2.3 trillion in client assets as of Q1 2026, up 30% year-over-year and representing a 17% CAGR since 2021, with advisory assets up 42% to $1.4 trillion.

• Net income for Q1 2026 was $356.4 million ($4.43 per diluted share), up 12% year-over-year, and adjusted EPS reached $5.60, up 9% year-over-year.

• Gross profit increased 25% year-over-year to $1.59 billion, with record adjusted EPS and strong organic asset growth despite market volatility.

• Advanced integration of Commonwealth Financial Network, with onboarding expected in Q4 2026 and asset retention tracking toward 90%.

• Continued investments in technology, AI, and advisor experience, supporting efficiency and growth.

Financial highlights

• Total revenue for Q1 2026 was $4.94 billion, up 35% year-over-year.

• Gross profit for Q1 2026 was $1.59 billion, up $51 million sequentially and 25% year-over-year.

• Adjusted EPS for Q1 2026 was $5.60, and for Q1'26 LTM was $20.54, up from $7.01 in 2021.

• Adjusted pre-tax margin stood at approximately 38%.

• Core G&A expense was $532 million, up from $413.1 million year-over-year.

• Leverage ratio improved to 1.86x, within the target range.

Outlook and guidance

• 2026 Core G&A expense outlook lowered to $2,155–2,190 million, including Commonwealth-related expenses.

• Asset retention for Commonwealth expected at approximately 90%.

• Estimated run-rate EBITDA benefit from Commonwealth at ~$410 million post-integration.

• Share repurchases resumed in April 2026, with $125 million planned for Q2.

• Service and fee revenue projected to rise by $5 million in Q2 as new mutual fund fees take effect.