LPL Financial (LPLA) Q1 2025 earnings summary

Executive summary

• Total advisory and brokerage assets reached $1.8 trillion at Q1 2025, up from $1.4 trillion a year earlier, with record organic net new assets of $78.8 billion and a 16% annualized growth rate.

• Net income for Q1 2025 was $319 million ($4.24 per diluted share), up 10% year-over-year; adjusted EPS rose 22% to $5.15.

• Major acquisitions and onboarding included Prudential, Wintrust, The Investment Center, and Atria, with the $2.7 billion Commonwealth Financial Network deal announced and expected to close in H2 2025.

• Maintained industry-leading asset retention at 98% over the last 12 months and advisor headcount reached ~29,500.

• Focused on operational excellence, employee experience, and differentiated strategies to sustain growth.

Financial highlights

• Adjusted EPS reached a record $5.15 in Q1 2025; adjusted EPS for Q1'25 LTM was $17.44.

• Gross profit was $1.3 billion for Q1 2025, up 19% year-over-year; gross profit (non-GAAP) for Q1'25 LTM was $4.7 billion.

• Adjusted pre-tax margin was approximately 40% for Q1 2025; adjusted pre-tax margin for Q1'25 LTM was 37%.

• Adjusted EBITDA for Q1 2025 was $682 million, up from $540.5 million year-over-year.

• Total revenue for Q1 2025 was $3.67 billion, up 30% year-over-year.

Outlook and guidance

• 2025 Core G&A expense guidance lowered to $1,730–$1,765 million, reflecting efficiency gains; full-year impact of Prudential and Atria expected to add $170M–$180M to Core G&A.

• Commonwealth acquisition expected to close in H2 2025, with full asset conversion by mid-2026, subject to regulatory approvals.

• Share repurchases paused pending the Commonwealth acquisition; resumption to be evaluated post-closing.

• Interest income and expense expected to rise due to new senior notes and pending acquisitions.

• Business momentum and financial strength expected to support continued shareholder value creation.