LPL Financial (LPLA) Q2 2025 earnings summary

Executive summary

• Total advisory and brokerage assets reached $1.9 trillion as of Q2 2025, up 28% year-over-year, with organic net new assets of $21 billion and a 5% annualized growth rate.

• Adjusted EPS for Q2 2025 was $4.51, up 16% year-over-year, and adjusted pre-tax margin was approximately 38%.

• Expanded advisor base to over 29,000 and institution services to over 1,100 institutions, reinforcing industry leadership.

• Completed onboarding of Atria Wealth Solutions and closed the $2.7B acquisition of Commonwealth Financial Network, with asset conversion expected by Q4 2026.

• Maintained industry-leading asset retention at 98% over the last 12 months.

Financial highlights

• Q2 2025 total revenue was $3.84 billion, up 31% year-over-year; gross profit was $1.304 billion, up 21% year-over-year.

• Adjusted EPS for Q2 2025 was $4.51, up from $3.88 in Q2 2024; adjusted EBITDA was $688 million, up 29% year-over-year.

• Client cash balances averaged $49.1 billion in Q2 2025, up from $43.0 billion in Q2 2024.

• Core G&A expense was $426 million in Q2, below outlook range.

• Leverage ratio improved to 1.23x as of Q2 2025.

Outlook and guidance

• 2025 Core G&A expense outlook (including acquisitions) is $1.88–$1.92 billion, reflecting integration of Prudential, Atria, and Commonwealth.

• Q3 payout rate expected to rise to 87.6% due to seasonality and Commonwealth acquisition.

• Run-rate EBITDA benefit expected at ~$150 million from Atria and ~$415 million from Commonwealth post-integration.

• Expect to onboard First Horizon Bank in Q3 2025, adding $17 billion in assets; Commonwealth asset conversion expected by Q4 2026.

• Plans to evaluate resuming share repurchases following the Commonwealth acquisition.