LPL Financial (LPLA) Q4 2025 earnings summary

Executive summary

• Achieved record total advisory and brokerage assets of $2.4 trillion as of December 31, 2025, with over $650 billion in organic net new assets since 2020 and a 13.2% annualized growth rate in 2025.

• Completed the largest acquisition in company history with Commonwealth Financial Network, adding 3,000 advisors and $34 billion in assets, and onboarded Atria Wealth Solutions and Prudential Advisors.

• Delivered record adjusted EPS of $20.09 for 2025 and $5.23 for Q4, with full year net income of $863 million and Q4 net income of $301 million.

• Maintained a resilient business model with natural hedges to market volatility, benefiting from rising market levels and interest rates.

• Focused on disciplined expense management, driving operating leverage and investing in technology and services to support advisor and institutional growth.

Financial highlights

• Full year 2025 gross profit was $5.6 billion, up 24% year-over-year, with Q4 gross profit at $1.542 billion, up 26% year-over-year.

• Adjusted EPS for 2025 was $20.09, up 22% year-over-year, and Q4 adjusted EPS was $5.23, up 23% year-over-year.

• Adjusted pre-tax margin was 38% for 2025; leverage ratio at year-end was 1.95x.

• Full year organic net new assets were $147 billion (8% growth rate); Q4 organic net new assets were $23 billion (4% annualized growth).

• Client cash balances ended Q4 at $61 billion, up $5 billion sequentially and $6 billion year-over-year.

Outlook and guidance

• 2026 core G&A guidance (excluding Commonwealth) is $1.78–$1.82 billion (4.5–7% growth); including Commonwealth, $2.16–$2.21 billion.

• Commonwealth onboarding and integration costs estimated at $485 million, with run-rate EBITDA benefit of ~$425 million post-integration.

• Expect to maintain leverage at ~2x through end of 2026.

• Q1 ICA yield expected to decline by 10 basis points due to full impact of Q4 rate cuts.

• Continued investment planned to drive growth and efficiency as business scales.