LPLA

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. LPL Financial Holdings has delivered a 140.0% return over the past five years, yet its valuation checks now send mixed signals, with the Excess Returns intrinsic value estimate pointing to upside while market multiples lean the other way. For investors, the question is whether the current share price reflects the benefits of LPL Financial Holdings' expanding wealth platform and advisor base or is already pricing in much of that progress. A 140.0% share price gain over five years shows that LPL Financial Holdings has already created substantial value for long term holders, so fresh buyers need to think carefully about what is priced in. Recent moves to broaden the wealth platform, including AI tools and lower minimums for managed portfolios, can support revenue and asset growth. At the same time, execution risks around technology rollouts and ongoing investment needs may pressure margins and cash flows if benefits are slower to materialise. LPL Financial Holdings earns a mixed value score of 4 out of 6, which points to neither a clear bargain nor clear overvaluation when the different checks are viewed together. The stock's next move may depend on whether the Excess Returns estimate that suggests LPL Financial Holdings is undervalued by 28.9% or the more cautious signal from earnings multiples proves closer to how the market ultimately prices this business. Find out why LPL Financial Holdings' -2.0% return over the last year is lagging behind its peers. The Excess Returns model looks at how much profit LPL Financial Holdings can earn above its cost of equity on each dollar of shareholder capital. For LPL Financial Holdings, the model uses a Book Value of $72.72 per share and a Stable EPS estimate of $31.31 per share, with those earnings guided by an average Return on Equity of 32.34%. With a Cost of Equity of $8.97 per share, the framework attributes $22.34 per share to excess return, and a Stable Book Value of $96.81 per share feeds into the long term value estimate. This produces an intrinsic value estimate of about $497.82 per share. This estimate suggests the stock trades at a 28.9% discount and therefore screens as undervalued against the current share price. LPL Financial’s recent Focus 2026 platform upgrades, including AI tools and expanded wealth solutions, are cited in the model as factors supporting the assumption that the company can earn returns on equity above its cost of capital. On these Excess Returns assumptions, LPL Financial Holdings stock appears undervalued relative to its estimated intrinsic value. Our Excess Returns analysis suggests LPL Financial Holdings is undervalued by 28.9%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for LPL Financial Holdings. P/E works reasonably well for LPL Financial Holdings because earnings are a key focus for investors in capital markets platforms. On this measure, the stock trades on a P/E of 27.7x, which is below the broader Capital Markets industry average of 38.5x but well above a peer average of 14.1x. The tailored fair P/E for LPL Financial Holdings is estimated at 20.8x. This reflects what might be expected given its earnings profile and risk factors. The current 27.7x is therefore meaningfully higher than that fair ratio, even after accounting for the company’s scale and wealth platform investments. On the P/E multiple, LPL Financial Holdings stock currently looks overvalued relative to the level implied by its fundamentals and peer group. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this valuation puzzle for LPL Financial Holdings' stock leaves off. They spell out which assumptions on growth, margins and earnings would need to hold for the company to be worth materially more or less than today's price. Each one frames its fair value as a thesis about the business that you can track over time, rather than a single static snapshot, all on the Community page. One of the top community narratives on LPL Financial Holdings: roughly fairly valued Read one of the top narratives on LPL Financial Holdings Do you think there's more to the story for LPL Financial Holdings? Head over to our Community to see what others are saying! LPL Financial Holdings screens as undervalued on the Excess Returns intrinsic value estimate, yet overvalued on the current P/E multiple, so the signals do not line up cleanly. The gap largely reflects a model that focuses on returns on equity and funding needs versus a market view that is sensitive to how much investors are willing to pay for earnings at today’s sentiment and peer multiples. With broader checks sitting in a mixed zone, the crux is whether LPL Financial Holdings can turn its wealth platform and AI investments into sustained, high quality returns without eroding margins. That execution question is what will likely decide whether the current discount is an opportunity or a warning. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LPLA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, July 30, 2026 at 5:00 p.m. ET Chief Executive Officer - Richard Steinmeier President and Chief Financial Officer - Matthew Jon Audette Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good afternoon, and thank you for joining the Second Quarter 20 Earnings Conference Call for LPL Financial Holdings, Inc. Joining the call today are Chief Executive Officer, Richard Steinmeier and President and Chief financial officer, Matthew Jon Audette. Richard and Matthew will offer introductory remarks, and then call will be open for questions. The company would appreciate if analysts would limit themselves to only 1 question. To ask a follow-up, please re-enter the queue. The company has posted its earnings press release and supplementary information on the Investor Relations section of the company's website investor.lpl.com. Today's call will include forward-looking statements, including statements about LPL Financial's future financial and operating results, outlook, business strategies and plans, as well as other opportunities and potential risks that management foresees. Such forward-looking statements reflect management's current estimates or beliefs and are subject to known and unknown risks and uncertainties that may cause actual results or the timing of events to differ materially from those expressed or implied in such forward-looking statements. For more information about such risks and uncertainties, the company refers listeners to disclosures set forth under the caption Forward-Looking Statements in the earnings press release as well as the risk factors and other disclosures contained in the company's filings with the Securities and Exchange Commission. During the call, the company will also discuss certain non GAAP financial measures. For a reconciliation of such non-GAAP financial measures to comparable GAAP figures, please refer to the company's earnings release. Which can be found at investor.lpl.com. With that, I will now turn the call over to Mr. Steinmeier. Richard Steinmeier: Thanks, operator. And thank you to everyone for joining our call. it is a pleasure to speak with you again. After a strong start to the year, we continued our momentum in Q2. We delivered improved organic growth during the quarter, while driving recruiting pipelines to record levels. We made meaningful progress in preparing to onboard Commonwealth Financial Network. And we drove material improvements in our operating leverage. We achieved this in a rapidly evolving environment as elevated macroeconomic uncertainty, and market volatility at the start of the quarter gave way to a sharp market recovery during the quarter. Serving as the latest reminder of the value of professional advice and the resilience of our model. Underlying this consistent performance, was the exceptional work and dedication of our teams including the talented colleagues who joined us from Commonwealth. In recognition of these efforts, JD Power ranked Commonwealth and LPL number 1 and number 2 for independent adviser satisfaction. Commonwealth's award is its 13th straight No. 1 ranking This is a remarkable achievement and a meaningful validation of the complementary nature of our organization and the culture we are building together. Now to highlight some of our Q2 results, in the quarter, total client assets were $2.6 trillion up 10% from Q1, as organic growth was complemented by higher equity markets. We attracted organic net new assets of $23 billion representing a 4% annualized growth rate. Our second quarter business results translated into another quarter of strong financial performance with record adjusted EPS of $5.84. Turning to our strategic plan, we remain unwavering in our strategy and our aspiration to be the best firm in wealth management. To that end, we remain focused on 3 key priorities. 1, preserving the client centricity the firm was built on,, 2, empowering our employees to deliver exceptional outcomes for our advisers and institutions and their clients, and 3, delivering improved operating leverage. Continued execution across these priorities will help us sustain our industry leading growth while advancing the effectiveness and efficiency of our model. With that as context, let's review a few business highlights from the quarter. In Q2, recruited assets improved to $25 billion. Prior to large institutional wins, this was our strongest quarter of recruiting in nearly 2 years. During Q2, we continued to advance opportunities into the later stages of our recruiting pipeline, And despite the strong pull through, the overall pipeline reached a new record. This positions us well for improved organic growth in the second half of the year. In our traditional markets, we added approximately $23 billion in assets during Q2, maintaining our industry leading capture of advisers in motion, while continuing to expand the depth and breadth of our recruiting pipeline. With respect to our expanded affiliation models, we delivered another solid quarter recruiting roughly $2 billion in assets. Turning to overall asset retention was 97% for both the second quarter and over the last 12 months. This is a testament to our continued efforts to enhance the adviser experience through the delivery of new capabilities and technology and the ongoing evolution of our service and operations functions. Now let's turn to Commonwealth. The integration is progressing well, and we remain on track to onboard Commonwealth Advisors in the fourth quarter. In terms of asset retention, we are in the mid-80s today, and we continue to work towards our target of 90% retention of client assets. From an operational standpoint, we are nearing the completion of the technology and capability builds needed to help facilitate a seamless conversion. Key initiatives include advancing our householding capabilities, and modernizing our case management platform to support a more connected end to end service experience. For existing Commonwealth advisers. When combined with the introduction of a single relationship agreement, this creates a more flexible relationship centric model that improves the client experience enhances adviser productivity. These capabilities not only enable the Commonwealth conversion, but also accelerate the delivery of core functionality for the benefit of all LPL advisers and institutions. In parallel, we are ramping up our training efforts to ensure that our Commonwealth teammates are positioned to continue delivering exceptional service to existing Commonwealth advisers and that Commonwealth advisers and their support staff are ready to hit the ground running following the conversion to the LPL platform. In closing, the second quarter was another strong quarter for LPL. I want to take a moment to thank our entire team both at LPL and Commonwealth, for the dedication and hard work that drove these results. And contributed to the recognition from J.D. Power. We are building something special and I am incredibly proud of the passion and dedication our teams bring to supporting our advisers. As we look ahead, remain well positioned to serve as a critical partner to our advisers and institutions to continue delivering industry leading organic growth and to maximize long term value for shareholders. With that, I will turn the call over to Matthew. Matthew Jon Audette: Thanks, Richard. I could not agree more. It was a tremendous quarter. As the team continues to deliver remarkable results. To reiterate some of these highlights, we delivered solid improvement in organic growth, continued to advance our adviser experience, drove improved operating leverage through ongoing efficiency gains and better monetization of the value we deliver to clients, progressed our preparation to onboard Commonwealth, and executed on our capital allocation strategy. We closed the acquisition of Mariner Advisor Network, remained active with our liquidity and succession capability, and given the dislocation in our stock price, accelerated share repurchases. These efforts resulted in strong second quarter business and financial performance and position us well for the second half of the year. Now turning to a few highlights from our Q2 business results. Total client assets were 2.6 trillion up 10% from Q1 as continued organic growth was complemented by higher equity Total organic net new assets were 23 billion and approximately 4% annualized growth rate. As for our Q2 financial results, the combination of organic growth, and expense discipline led to an adjusted pretax margin of approximately 39.3% and record adjusted EPS of $5.84. Gross profit was 1.62 billion up 26 million sequentially. As for the key drivers, commission advisory fees net of payout Were 486 million down 1 million from Q1. Our payout rate was 87.4%, up 22 basis points from Q1 largely due to the typical seasonal build in the production Looking ahead, we expect our payout rate will increase by approximately 80 basis points in Q3, driven by typical seasonality as well as the previously announced reductions to our corporate advisory pricing that went into effect on July 1. With respect to client cash revenue, it was 457 million down $3 million from Q1 primarily reflecting lower average cash balance. Overall client cash balances ended the quarter at 56.9 billion down $2.2 billion Within our ICA portfolio, the mix of fixed rate balances ended the quarter at roughly 60% within our target range of 50% to 75%. Looking more closely at our ICA yield, it was 36 basis points in Q2, unchanged sequentially. 1 item of note is that we are shifting our client sweep rate methodology from an asset based tiering structure to a cash balance based tiering structure. As a result, as we look ahead to Q3, we expect our ICA yield to increase by 10 basis points. As for service and fee revenue, it was $209 million in Q2, down $2 million from Q1. Looking ahead to Q3, we expect service and fee revenue to increase by approximately $5 million driven by revenues from our annual focus comp. Moving on to Q2 transaction revenue. It was $83 million up $2 million from Q1 driven by record trading volumes and 1 additional trading day during the quarter. As we look ahead to Q3, we expect transaction revenue to decline by roughly $5 million Now turning to our acquisition of Commonwealth. As Rich mentioned, the transaction continues to progress well, and we remain on track to onboard Commonwealth Advisors in the fourth quarter. As for the financials, accounting for current market levels, we now estimate run rate EBITDA of approximately $435 million once fully integrated. Now let's move on to expenses starting with core G&A. It was $519 million in Q2, down $13 million sequentially and below the low end of our outlook range. Reflecting our continued progress in driving greater efficiency, and reducing our cost to serve. For the full year, given our progress to date, we are lowering our core G&A outlook range. We now anticipate 2026 core G&A to be in a range of $2.14 billion to $2.165 billion give you a sense of the near term timing of this spend, we expect Q3 core G&A to be in the range of $540 million to $560 million Turning to TA loan amortization. It was $142 million in Q2, up $6 million from Q1. As we look ahead to the third quarter, we expect TA loan amortization to increase to approximately $150 million reflecting strengthening adviser recruiting. As for promotional expense, it totaled $79 million in the second quarter, up $3 million from Q1 driven by increased conference spending. Looking ahead to Q3, we expect promotional expense to increase to approximately $95 million driven by conference spend. To depreciation and amortization. $110 million in Q2, up $4 million sequentially. Looking ahead, we continue to invest in technology and expect Depreciation and amortization to increase by roughly $8 million in Q3. Moving to our tax rate. It was approximately 26.4% in Q2, and we expect a similar level in Q3. Regarding capital management, we ended Q2 with corporate cash of $430 million down $137 million from Q1. As for our leverage ratio, it was 1.9x at the end of Q2 near the midpoint of our target range. Moving on to capital deployment. Our framework remains the same. Focused on allocating capital aligned with the returns we generate. Investing in organic growth first and foremost, pursuing M&A where appropriate, and returning excess capital to shareholders. In Q2, we deployed capital across our entire framework. As we continue to invest to drive and support organic growth, close the acquisition of Mariner Advisor Network, remained active with our liquidity and succession capability, and returned capital to shareholders. Specific to share repurchases, while our initial plan was to repurchase $125 million of our stock in Q2, The dislocation in our share price presented an attractive to deploy additional capital. So we accelerated repurchases to $309 million. Additionally, in July, our board approved a new $2.5 billion repurchase authorization. With $300 million planned for the third quarter. In closing, we delivered another quarter of strong business and financial results. As we look forward, we remain excited about the opportunities we have to continue to drive growth deliver operating leverage, and create long term shareholder value. With that, operator, we are finally ready to open the call for questions. Operator: Certainly. And as a reminder, ladies and gentlemen, please limit yourself to 1 question each. If you would like a follow-up question, you may reenter the queue. Our first question comes from the line of Alexander Blostein from Goldman Sachs. Your question please. Alexander Pozkin: Hi, good afternoon. Thank you for taking the question. I was hoping to start with the outlook on organic growth. Obviously, June saw a nice pickup, and you talked about recruiting pipeline looking pretty robust. So maybe spend a minute on how you view organic growth for the half of the year, whether or not NNA can sustain above 5% And, also, coupled with that, we continue to hear a pretty competitive landscape for recruiting. Curious how that squares away with your with the outlook seeing for the back half of the year? Thanks. Richard Steinmeier: Yeah. Hey, Alexander. it is Richard. Thanks for the question, and nice to hear from you. So maybe let's talk about the recruiting. Well, let's talk about organic growth for the balance of the year. I think we saw that we have got a rebound this quarter up to 4%. Look. there is a couple things that drove that. First is that we saw adviser movement move back in line with historical norms. that is important for us. As we capture a disproportionate share of the advisers in motion, any movement to that overall you know, adviser movement, we are going to be 1 of the winners who benefit in that movement. And so let's say, you know, there is a macro movement improvement that helped us align with our long term share capture of advisers in motion. Second, you know, and this continues, and you heard in prepared remarks, Commonwealth is largely coming towards the end of the recruiting and education event. We still have advisers out. To continue to progress with them, to problem solve with them, to get to solutioning with them, And so it is not completely-- you know, over. But as we have continued on that journey, we have seen more and more of our capacity to go back into the marketplace and engage directly with advisers. And so when you think about that second half of the year, we should be able to return to more normalized levels, not only of recruiting, but continuing to build pipeline And so that makes us confident in our ability to deliver mid to high single digit growth over time if you extend even further out and look at our long term outlook, I think this is where we even strengthen our conviction even further. We continue to be the disproportionate winner in our traditional markets. We have an unmatched value proposition and actually continues to strengthen. When we look at the wirehouse and regional adviser movement, largely, we have been continuing to gain consideration, which is really important for us because as we speak to those advisers, we more often than not are 1 of the winners in those conversations, but we have to get into more conversations So we do that by closing our capability gap, which we continue to do in quarter and throughout the balance of the year. I alluded to some of those even in prepared remarks. And continuing, more importantly, to actually position our brand actively in the marketplace. So you saw us do that a year ago with our brand campaign. Additionally, we have announced a partnership with the PGA of America that we think will continue to progress Our representation not only to advisers, but to their high net worth end investors, which is critically important as they consider firms that they are going to consider moving to. And maybe lastly, in the institutional channel, this is 1 where we had to pause a little bit in our consideration of large opportunities to bring on to the platform because of the Commonwealth transition was so extensive and the build was so comprehensive. And now as we move towards being on the other side of that and finishing our capability build, it opens up our ability to continue to progress pipeline in the institutional channel with opportunities to onboard them. You marry that with low attrition and things and steady contribution from same store sales. And, again, I look at that longer outlook and say, okay. I think we have a strong ability to sustain mid to high single digit growth. Maybe lastly to that competitive environment, I think it is completely fair representation. It remains spirited. We saw about a year ago, we saw a move in, market TA levels. They have continued to persist at higher elevated levels. And from our perspective, stay disciplined on returns. TA is part of our conversation with advisers, but it is not the driver. Kinda repeat this pretty regularly, but advisers who are changing firms first about capabilities, technology, and service. They then think about ongoing economics. And third, they think about upfront economics. So you put that all together, We feel incredibly strong in our ability to not only sustain our performance to improve it over the latter half of the year. Operator: And our next question comes from the line of Steven Chubak from Wolfe Research. Your question please. Steven Chubak: Hi. Good afternoon, Richard and Matthew, and thanks for taking my question. I was hoping to get an update on the pricing review. Pause. Steven. I like that pause. That is our fault. We were not gracious hosts there. Thank you. That you are not, but all is forgiven. Rest assured. Was hoping to get an update on the pricing review just now that you are further along in the diligence process, what has been some of the early feedback from advisers as you have explore potential pricing changes? And what are some of the key milestones that need to be met as part of the review to get you and the board comfortable with adopting or implementing any such pricing changes to minimize the reliance on cash economics? Richard Steinmeier: Yeah. Hey. Thanks, Steven. So like we said last quarter, we are actually doing that work. I think you know, we need to make sure we take that time as you probed properly to think and ensure that any potential solutions that we come up with, 1, that they are well considered, that we are looking at it from all angles, that it is aligned with our long term strategy, and that it creates value for our advisers for our institutions, and for the clients that they serve. And so give you a little bit of color why this may take us a little more time. We have exploded the types of advisers and institutions that we serve. If you think about the 2 business models that we have, in our adviser business, we have grown our affiliation models pretty dramatically, and that looks like different profiles of the advisers. Who have different compositions of their book. And similarly on the institution side, we no longer just serve banks and credit unions. We serve large regional banks. National banks, We serve product manufacturers. So the complexity of the type of clients that we serve is pretty comprehensive. Maybe extensive. We have got to make sure, and we are engaged with those clients to ensure as we build any solution and evaluate those solutions across 32 thousand advisers, 1 thousand+ institutions, and 8 million end investors. That they work the solutions work across those clients and their operating models. The levers are very clear to us. But as we go through the work, we have to make sure that it works for those constituents and that is the update that we have on the work. We are doing that work. We do not have any precise updates on the completed work to date. But we will make sure to update you when there is more to share. Operator: Helpful, Kyle. I appreciate Our next question comes from the line of Daniel Fannon from Jefferies. Your question please. Dan Fannon: Greg, thanks. Matthew, I was hoping you could expand upon the G&A outlook. If the numbers continue to come in better than you have forecast, As you think about the back half of the year, are there are you still implementing some of these efficiencies to think about the ongoing benefits? Or is obviously, what you are putting in the numbers today is that, you know, realistic based upon the you know, what you guys have done so far? Matthew Jon Audette: Yeah, Daniel. I mean, I think you look, if you look at the trends, like, think the headline answer is, I think, an evergreen thing. I mean, the continued investments whether it be automation, efficiency, AI driven things, that do 2 things. They not only, you know, improve our efficiency and drive down our cost. They also improve our value proposition with our advisers. So I think that is something we are gonna consistently do. And I think what you are seeing so far this year is some outperformance on the pace at which we are able to do these things. So I think it is been you know, a couple quarters in a row, we have been able to deliver more efficiencies than we expected. And we are able to lower the guidance for the year. To underscore, the guidance for the year includes everything that we have worked on and everything that we expect to work on. And I think you have seen us. there is been periods where we have met that. there is been periods where we have done better than we expected. So I think that now core G&A growth of 4.5%, 4% to 5.5%, prior to Commonwealth is our best estimate right now. But I think if you broaden that out, I think there is each and every year, I think we are gonna be able to continue to drive investment And, again, underscore it is not only about efficiencies, but it is improving the value proposition in our experience with our clients. Thank you. Operator: Thank you. And our next question comes from the line of Devin Ryan from Citizens Bank. Your question please. Devin Ryan: Greg. Hi, Richard. Hi, Matthew. Lot of good stuff in here. I want to ask about, Richard, a point you made, advisors, care about capabilities in tech when they are thinking about moving firms. And so with that said, would it be good to get some color on this AI platform Latitude? I saw you just launched that or announced it a couple days ago. And so just be good to hear about kind of functionally what are the capabilities for advisers. Are there ways you can think about framing, you know, how it can help their productivity? And then how differentiated is it, versus just table stakes I know that may connect back to your recruiting pitch or just making the firm more attractive. for institutions to think about partnering with you? Thank you. Richard Steinmeier: Yeah. Thanks, Devin. So I think, 1, technology has always been important for advisers who are considering moving firms. it is usually 1 of the first things we go through. In fact, recently, we continue to accelerate in our home office visits, our tech demos earlier in the sales process. The reason being that what feedback we get from advisers is that there is a material differential differentiation in our capabilities and technology than the competitors that they are looking at. And I would tell you, as we get through a tech demo, what we see is we win in head to head more often than we did even a year ago. Because through the last couple of years, you have seen us continue to enhance our investments made in technology. I think the Latitude announcement is a reflection of that. We reflected that we have invested nearly $2 billion over the last few years in building the core foundational capabilities in our data, security, adviser technology, and AI, Latitude is the reflection of our unified tech experience that ties all of that together. it is a crisper way to reflect integrated nature of our technology ecosystem that we think is a really good reflection to advisers. And as they get in, they see the connectivity across all of that. No longer a separation of the adviser work station and the end investor capabilities and the workflows and the cyber environment. And now the introduction for us of Cyan, our AI agent, It helps us actually operate across all of the adviser workflows and deliver contextual real time intelligence. And so specific to your question, when we look at just Cyan and we look at how does that improve the operation effectiveness of an adviser's practice. Well, a couple of our high impact use cases that we are launching with include the ability to identify growth opportunities for advisers in their practice. As they probe into it, natural language processing, to identify ways that they can grow, actions they can take, And, actually, 1 of the things that is really impressive is a button that simplifies the next actions they should take to prioritize improving their growth against the verticals that they choose to grow. Second, you know, there is other things that we have done there to make them more efficient in their practice. We introduced jump as a way to, you know, record and then get actions coming out of meetings. But now we are introducing through Cyan the ability to take financial plans that they have already developed to synthesize those plans, for insights to the end investor, as well as ways to deliver that to the adviser that are much more efficient than they are doing today. And 1 other high value use case is automating routine maintenance tasks. So instead of having to go into the system to make address changes, we actually just go into the agent, say you are making an address change. You indicate the change of address. And then it is automatically propagated across the entire ecosystem of Latitude. I think these are good examples of a firm that is positioning itself to lead in technology making investments, enabled through AI, that further differentiate us from our competitive set. And as we have not only shown our capabilities, Devin, but as we have demonstrated our road map for AI to advisers who are considering the firm. It usually is a significant point of differentiation between us and the other firms they are evaluating. Operator: Excellent. Thanks, Richard. Thank you. And our next question comes from the line of Michael Cho from JPMorgan. Your question please. Mike Cho: Hi, good evening. Thanks for taking my question. I just wanted to touch on pricing as well, not so much the work that you are doing now, Richard, but the pricing adjustments that you announced last year and you implemented some earlier this year and Matthew, you called out, you know, some of the other parts starting in July as well. So just given some time that is passed, you know, have you seen any adjustments in adviser behavior since announcement and implementation And any key takeaways here from an LPL perspective? And if you see other opportunities to potentially mark to market maybe some of LPL's more enhanced offerings, maybe in, you know, in light of Latitude and Cyan as well? Thanks. Matthew Jon Audette: Yeah, Michael. I mean, I will just I will just, resummarize them for you. I think the headline is things have played out as we expected. So I think when we announced those, we walked through the 3. I will take you through the components. But we had expected a net improvement in margins kind of in incorporating everything that you had just walked through of about 1 percentage point. And that is largely what is played out. So just as a reminder, there was 1 in each of the core, in Q1, Q2, and Q3. So Q1 was the new fees on brokerage accounts. In Q2, it was fees on the direct mutual fund business. And those 2 things together led to an increase in service and fee revenue by about $40 million per quarter. And then the last change coming, which I talked about in prepared remarks, it is coming in Q3. Was reductions on pricing in our advisory really to make them, you know, even though they are already competitive, even more competitive And that those pricing reductions will show up as an increase in payout of about $20 million a quarter. So the net of all of that is around $20 million a quarter, $80 million annualized. Right in line with where we thought. And to the broad point, I think it just positions us as we talked about when we announced them, the first 2 fee increases were really to bring fees in those 2 areas in line with market. And then the third area in advisory, I think, is making a platform that was already competitive and value prop-wise even more competitive. So I think it is really played out how we thought. Operator: Thank you. Our next question comes from the line of Craig Siegenthaler from Bank of America. Your question please. Craig Siegenthaler: Thanks. Good evening, everyone. So similar question, but I want to see if you could potentially change your revenue share arrangements with asset managers. And I wonder if you view this as a future earnings lever given that your size increase and you are a scaled retail distribution partner? So and what I am getting at is could LPL increase its underlying economics on ETFs mutual funds, and SMAs? Thank you. Matthew Jon Audette: Yeah. Hey, Craig. This is Matthew. I will just say what, you know, what Richard went through in detail as far as what we are looking at on economic and things we would change. that is where our energy is. I think that there is other things that, you know, once we are done with concluding, is there something to do there or not? If there is other things to look at, we would take that up. But I think when you look at our overall economic the thing that we are staring at is cash sweep that, I just underscore everything that Richard said. Thank you. Operator: And our next question comes from the line of Michael Brown from UBS. Your question please. Mike Brown: Greg. Good afternoon. Thanks for taking my question. You have observed that your advisers, when they adopt your business solutions, they tend to grow 2x faster than advisers that do not. As you think about the Commonwealth cohort and the transition there, what are your expectations for their adoption of your subscription based services? Like, your CFO and marketing solutions? And do you think that there is kind of similar opportunity set for the Commonwealth Advisors? Richard Steinmeier: Hey, Mike. it is Richard. Thanks. So first, you are right. We observed that as advisers actually begin to outsource more of the work they do themselves, They put themselves in a position to go to the core advice delivery and you see that not only through marketing and CFOs you see it also through OCIO solutions, paraplanning solutions. And so anytime when an adviser is thoughtfully reorganizing the structure of their office, to drive productivity and drive deeper engagement with clients. We see accelerated growth. We also see that inside of our managed models that have a lot of those offerings embedded inside. So when you look at our strategic wealth services as well as our Linsco offering, we see faster growth there as well because of the support system that is provided and the solutions that are embedded in those off Commonwealth actually has a subset of the business solutions capabilities and services. In fact, they have some that are differentiated from us around practice management. And some growth support as well. And so there are elements already. We see that Commonwealth Advisors are faster growing advisors. More productive advisors. And so they have been embedding those capabilities and driven outsized same store sales growth. We would anticipate as we get into the conversations, further conversations with Commonwealth Advisors, there is a lot of our solutions that are attractive to them. I think the CFO and marketing solutions are attractive. I think 1 to maybe put on your radar screen is liquidity and succession solution. Which we find also accelerates growth in advisers practices as they go through liquidity and succession we find that there is a pretty strong demand from Commonwealth advisers as Commonwealth was building a solution that was similar but was not as robust and was not as far along in its deployment as our liquidity and succession solutions are. So I would say across a cadre of solutions, there is an appetite from Commonwealth Advisors. I would say it skews more heavily towards liquidity and succession. Because they had some of the solutions that we have already available inside of Commonwealth Financial now. Operator: Great color. Thank you for all that, Richard. Thank you. And our next question comes from the line Brennan Hawken from BMO Capital Markets. Your question please. Brennan Hawken: Hi. Thanks for taking my question. This is a little bit more of an abstract question. there is among some investors, there is some debate about whether or not AI tools could eventually lead to some hybrid solutions, you know, which marry AI with advisers and potentially come at a lower price point. You know, you talk to a lot of advisers. what is the adviser view on that? Is that you know, considered a real risk? And, you know, is there anything that could be done to insulate from this risk if it does end up emerging? Thanks. Richard Steinmeier: Hey, Brennan. it is Richard. Thanks for the question. I think when you look into AI solutions, what you see is you kind of either look at it as a glass half full or glass half empty. Let me give you the glass half full case. What you are gonna see is a pretty significant enhancement in the workflows that exist certainly first inside of our ecosystem, our ability to process work, our ability to drive straight through processing, our ability to make it just easier to do business. And when you look at the workflows that exist inside of an adviser's practice, scheduling, preparing for meetings, running alternative investment solutions, actually running the solution set you see there is material opportunity to improve the efficiency of an adviser's practice. When you take those 2 things together, we stare into what we think will be a pretty significant enhancement in the availability of capacity at an adviser's practice level. In fact, many of the folks that sit inside of an adviser's practice think of the CSAs, I think there is a potential for them to get much more productive and move to much more interesting and challenging work of beginning themselves to deliver advice. And so as we look at the automation of an adviser's practice of the workflows inside of the practice, we think that there is gonna be capacity to serve more end investors. And so we have not seen a material reduction over the last several decades in spite of many new innovations that the advisory fee is driven down in any material way. But I would tell you the offset to that would be we think even if that were to occur, the advisers inside of their practice would have the ability to grow the practice and grow the number of clients and the assets they serve and serve them in ways that they serve their best clients today. And so we view delivering the automation and AI as enhancing the adviser's practice. We think it will strengthen their ability to go to market and it will actually allow them to spend more time in advice delivery, in context setting, and helping take decisions with end investors. So that is the theory to our case. I think we believe strongly in it, and that is largely what we hear from our advisers. They are more excited about the potential of AI than they are scared of the impact of AI. And we support that, perspective as well. Operator: that is interesting color. Thanks, Richard. Thank you. And our next question comes from the line of Michael Cyprys from Morgan Stanley. Your question please. Michael Cyprys: Hey, good evening. Thanks for taking the question. Just wanted to ask about expense growth. Just curious how you would characterize that underlying pace of 4% to 5.5% core DNA growth that you referenced relative to a multiyear profile. And then when you layer in AI initiatives, I guess, meaningful could that be on a multi-year profile when you look out? And as you think about AI, I guess, where do you see some of the biggest opportunities to change processes and workflows that could be the most meaningful and really drive the needle on the bottom line as you look out over the next couple of years? Matthew Jon Audette: Yeah, Michael. I think that, I mean, the opportunity is huge. I mean, I think, like, most folks, I think you are gonna be balanced in how much you are investing to improve an experience, give you more capacity to invest and drive your value proposition, versus expand your op margin. And I think you see us balancing that. I think just looking at, you know, just this year, I think you are starting to see a good taste of what we can do and deliver I think, relatively, reasonable expense growth, especially when you look at the last few years. While at the same time, you know, delivering an increased capability set starting to reinvigorate organic growth, and doing that all, I think, at that 4% to 5.5% where we estimate now to be, is quite a good balance. When you think about, like, AI, so just kinda the end of your question there on the on the areas. I mean, I think for us, I put it in 3 broad categories where first is directly serving the adviser, and Richard hit on this a little bit, in talking about Latitude. Talking about Cyan. But those are things where I am just underscoring what he said. Like, the benefits of that, are not only on the value prop for advisers, but they lead directly, to efficiencies on our side. Things that would typically have been a phone call or an email and multiple steps and processes in both sides can just be completely processed through by that agent. I think the second 1 is just pointing all that-- right at our internal infrastructure or back office, meaning service and operations, that can just that is where it can materially, improve the cost structure and the efficiency. And then the last 1 would just be in our technology development. Right? The coding and the tech builds itself. Where we are already seeing the ability to not only build things much cheaper than they were historically, but build them at a faster pace. And I think you put those things together, and I think it goes back to a little bit of my headline point in the answer that not only can we drive efficiencies in the cost side, but we are gonna be in a position to be able to improve and deliver a value prop I think, better and faster than most. So I think, you know, it is an exciting view over the next several years of being able to do that, but that helps with color on how we think about it. Operator: Great. Thank you. Thank you. And our next question comes from the line of Benjamin Budish from Barclays. Your question please. Benjamin Budish: The prepared remarks, you talked about a pricing change at NDI that is going to benefit a little bit in Q3? So if you could explain the mechanics of that change a little bit more? How does it work? what is the rationale for doing it? Is there particular behavior that you are looking to incent? How should we be thinking about that going forward? Thank you. Matthew Jon Audette: Yeah. You bet, Benjamin. I mean, I think it is primarily driven by the Commonwealth integration. So when you look at as we prepare to onboard Commonwealth, how we, LPL, have priced cash-based tiering has been based on the level of AUM that the household has with us. Commonwealth prices it based on the actual level of cash balances that they have. So what we are doing going forward is just shifting to an integrated approach that is cash-based balance tiering, and that also aligns us with our independent peers. So it is got a benefit there. Now as to why that leads to an increase, in returns, when you look at the price tiering, right, to perhaps state the obvious, you pay less on smaller balances and more on the larger balances. And as we have talked a bit about, I think for a long time, our advisers have their clients in cash in relatively small levels. We are probably at about 2 years now where the average amount of cash per account at LPL has been around $5 thousand. It really has not moved below that for 2 years. So the net result of that, is more cash at those lower tiers, and that will lead to an increase in the ICA yield on a run rate basis. Of about 20 basis points. And those changes that I referred to are going to go into effect in August, so kind of in the middle of the quarter. So you can view that as half of it coming in Q3. And then the second half coming in Q4. Operator: Okay. Great. Thank you. And our next question comes from the line of Jeffrey Schmitt from William Blair. Your question please. Jeffrey Schmitt: Hi. Thank you. Question on the institutional channel. You have sort of taken a pause, it sounds like, through the Commonwealth deal. How would you characterize your pipeline today? Has that been building? And are you seeing demand for outsourcing increase versus a year ago? Or has that been fairly stable? Richard Steinmeier: Yeah. Hey, Jeffrey. Thanks for the question. So first, you are right. I mean, we had to take an intentional pause not necessarily in our engagement in the marketplace, but around our ability to onboard. We just first and foremost, making sure that we got the Commonwealth onboarding capability build ahead of everything else. And so it did put a pause on how we progressed opportunities in the pipeline. If I reflect on maybe just for a second kind of our positioning in the marketplace. So first, in that institutional market, we are the absolute leader in the institutional space and have been as such for years. And the institutions we serve support $590 billion of client assets in their wealth businesses, and that is multiples greater than those of our next closest competitor. As we position in our conversations and actually with folks who have onboarded with us we have a really compelling value proposition We accelerate the growth of the firm as they come on. We actually improve their margins. And we reduce regulatory and compliance risk And maybe most importantly across that, especially when you think about us relative to competitors, we have proven our ability time and again to actually transition very complex, large scale organizations and their wealth businesses seamlessly. And so maybe lastly in that, we also have signature clients. And 2, I would say, you know, 2 of our most recent joins in Prudential and First Horizon clients that I think are thriving on our platform. And reflect the ability that has demonstrated that improved efficiency as well as accelerated growth. So you put that all together, I think what we have is a building of our reputation in the marketplace to serve large institutions. We are more engaged now certainly than we were a year ago. Large institutions, not only with the number of institutions, but actually the size and complexity of some of those institutions continues to grow. that is probably emphasized more even on the product manufacturer side The bank market is a tried and true market as we continue you will see us continuing to talk to larger and larger banks. And maybe let's talk just about banks for a second. Much of the focus on banks is on efficiency and driving greater efficiency. And in the wealth business, that is no exception. So the conversations we are in are with larger institutions on the bank side who are looking at efficiencies and looking at ways for which they can compete and be competitive across the board and largely that includes outsourcing wealth. And so we continue to see a building in the pipeline there, and we actually now have cleared the decks for us to have the ability to have more material conversations. So feeling better about where we are there than we were certainly a year ago. Operator: Great. Thank you. Thank you. And our next question comes from the line of Bill Katz from TD Cowen. Your question please. Bill Katz: Thank you very much. Good evening, everybody. Just maybe a 2 part if I could squeeze it in. On Commonwealth, excuse me, can you let me know what the cash is as percentage of client AUA? And then, Matthew, I would be curious if you would give us an update on how things have been trending into July on both flows and client cash. Thank you. Matthew Jon Audette: Alright. Very aggressive, Bill. Operator said 1. I will do 2. Do not worry about it. Look. On Commonwealth, their cash balances have the whole time they have been with us are a little bit below ours. So we have been we are at a little above 2%. They are a little bit above 1%. So they just have much, much lower cash balances, and it and it is always been that way. With respect to how the third quarter is going so far, so for July, on the cash side, couple days remaining, but it is shaping up as you would expect in the first month of the quarter, which is primarily the impact of advisory fees. So those hit in the first month, that reduced cash by $2.8 billion Outside of that, cash balances have been flat. So if you if you put those 2 things together, July cash has decreased by only the impact of fees, and that puts cash at around $54.1 billion. On the organic growth side, similar impact Month 1 is usually the lowest month of the quarter because advisory fees hit in that in the first month. Outside of that, we are seeing organic growth continuing to pull through as we have noted on the recruiting picking up. And you put those 2 things together, that would put July organic growth in the zone of around 3%. Operator: Thank you for accommodating the 2-parter. You are welcome. Thank you. And our next question comes from the line of Michael Brown from UBS. Your question please. Mike Brown: Okay. Great. Thanks for taking my follow-up. I wanted to just follow-up on Steven's question at the beginning. And I guess as you evaluate the potential transition toward platform fees, can you clarify, should investors view that work you are doing today as primarily developing a playbook that would only be implemented if the competitive dynamics or client behavior created meaningful pressure on cash sweep economics? Is management increasingly inclined to make that shift proactively kind of regardless of whether those pressures materialize. And then if it is the latter, what gives you confidence that moving first creates value rather than a disadvantage? Particularly if competitors are slower to follow or really choose not to make a similar change at all? Richard Steinmeier: Yeah. Hey, Mike. Thanks a lot. And you know, I think Bill, look at what Mike did. He actually reentered the queue and got his second question in. So learning event for all of us. So, look, if the question is, you know, whether we are going to be a leader or a follower I think the most important thing is we actually need to get the right answer. And that is actually the work that we are doing. it is why the evaluation is so comprehensive in nature. As I mentioned before, you know, with 32 thousand advisers and 1 thousand institutions, We are a market leader. We are already in that position. And we are comfortable making decisions that lead the market if that is where things land. Got it. Thank you, Richard. Operator: Thank you. This does conclude the question and answer session of today's program. I would like to hand the program back to Richard Steinmeier for any further remarks. Richard Steinmeier: Thank you, operator, and thank you all for joining. We look forward to speaking to you again in October, and have a great night. Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day. Before you buy stock in Lpl Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lpl Financial wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 3, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. LPL Financial (LPLA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. LPL Financial Holdings (LPLA) drew fresh attention after reporting record adjusted earnings for the second quarter of 2026, along with higher client and advisory assets, an expanded buyback authorization, and a declared dividend. See our latest analysis for LPL Financial Holdings. The latest earnings and capital return updates have been met with strong buying interest, with LPL Financial Holdings posting a 1 month share price return of 20.61% and a 3 year total shareholder return of 54.94%. However, the 1 year total shareholder return is down 4.03% and the year to date share price return is down 2.19%, which suggests momentum has recently picked up again after a softer patch. If strong execution and active buybacks have you looking beyond a single stock, this is a good moment to widen the search and check out 18 top founder-led companies Bulls point to record earnings, rising client assets and heavy buybacks at LPL Financial Holdings. Bears see a stock that just jumped on good news after a softer year. Which side does the current valuation support next? The most followed valuation narrative for LPL Financial Holdings places fair value at $416.50, which sits above the last close of $353.70 and frames the recent rally in a different light. Read the complete narrative. Read the complete narrative. Want to see what is behind that long term earnings story for LPL Financial Holdings? The narrative leans on rising revenues, fatter margins, and a future earnings base that looks very different from today. Curious which specific growth, profitability, and valuation assumptions have to line up to justify a fair value of $416.50. Result: Fair Value of $416.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, LPL Financial Holdings still faces key risks, including pressure on rate sensitive cash sweep revenues and ongoing fee compression that could weigh on future profitability assumptions. Find out about the key risks to this LPL Financial Holdings narrative. The analyst narrative presents LPL Financial Holdings as about 15.1% undervalued, yet the share price carries a P/E of 27.8x. That is well above its fair ratio of 20.6x and its peer average of 14.6x, even though it sits below the US Capital Markets industry at 37.2x. This mix points to valuation risk as well as potential opportunity. Which signal do you trust more, the cash flow story or what the market is already paying per dollar of earnings? For a closer look at how this ratio-based view compares with other methods, including how the fair ratio might change over time, See what the numbers say about this price — find out in our valuation breakdown. Reading this mix of optimism and caution around LPL Financial Holdings, it is worth checking the numbers yourself and forming a clear view quickly. To see how the positives and concerns stack up side by side, take a look at the 2 key rewards and 3 important warning signs If the latest moves at LPL Financial Holdings have sharpened your focus, do not stop here. Use the Simply Wall St Screener to quickly surface fresh stock ideas that match your goals. Target potential upside by scanning for quality companies trading below their estimated worth through the 55 high quality undervalued stocks. Strengthen your portfolio resilience by focusing on companies with healthier finances using the solid balance sheet and fundamentals stocks screener (45 results). Aim to get ahead of the crowd by hunting for overlooked opportunities inside the screener containing 19 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LPLA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in LPL Financial Holdings Inc.? Here are five stocks we like better. LPL Financial delivered a strong second quarter, with client assets reaching $2.6 trillion, organic net new assets of $23 billion and record adjusted EPS of $5.84. The company also reported improved operating leverage and lowered its full-year 2026 Core G&A outlook. Recruiting momentum strengthened, with $25 billion of recruited assets and a record pipeline, while asset retention remained 97%. Management expects organic growth to improve in the second half of 2026 and remains confident in achieving mid- to high-single-digit growth over time. The Commonwealth advisor conversion remains on schedule for the fourth quarter, with current client-asset retention in the mid-80% range and a 90% target. LPL expects the fully integrated business to generate approximately $435 million in run-rate EBITDA and authorized a new $2.5 billion share-repurchase program. LPL In Buy Range After Better-Than-Expected Q4 Report LPL Financial (NASDAQ:LPLA) reported stronger organic growth, record adjusted earnings per share and improved operating leverage in the second quarter of 2026, while continuing preparations to onboard Commonwealth Financial Network advisors in the fourth quarter. Chief Executive Officer Rich Steinmeier said total client assets reached $2.6 trillion, up 10% from the first quarter, as organic growth and higher equity markets supported asset growth. The company generated $23 billion in organic net new assets, representing a 4% annualized growth rate, and reported record adjusted EPS of $5.84. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “After a strong start to the year, we continued our momentum in Q2,” Steinmeier said, citing improved organic growth, record recruiting pipelines, progress on the Commonwealth conversion and operating-leverage improvements. LPL recruited $25 billion of assets during the quarter, which Steinmeier described as the company’s strongest recruiting quarter in nearly two years before considering large institutional wins. Traditional markets accounted for approximately $23 billion of recruited assets, while expanded affiliation models added roughly $2 billion. → Microsoft Just Flipped the AI Spending Narrative Overnight The company’s overall recruiting pipeline reached a record level despite strong conversion of opportunities into later stages, according to Steinmeier. He said the pipeline and a return to more-normal advisor movement support LPL’s outlook for improved organic growth in the second half of 2026. LPL’s asset retention rate was 97% in the second quarter and over the trailing 12 months. Steinmeier attributed retention in part to investments in advisor capabilities, technology, service and operations. → Carrier Earnings Could Send the Stock to a New All-Time High During the question-and-answer session, Steinmeier said the company remained confident in its ability to achieve mid- to high-single-digit organic growth over time. He pointed to its share of advisor movement, growing consideration among wirehouse and regional advisors, and an expected return to pursuing more institutional opportunities following the Commonwealth conversion work. LPL said it remains on schedule to onboard Commonwealth advisors in the fourth quarter. Client-asset retention associated with Commonwealth was in the mid-80% range as of the call, and the company continues to target 90% retention. The company is nearing completion of technology and capability development intended to support the conversion. Initiatives include householding capabilities, modernization of its case-management platform and a single relationship agreement intended to create a more flexible, relationship-centered model. LPL is also expanding training for Commonwealth employees, advisors and support staff. President and Chief Financial Officer Matt Audette said that, based on current market levels, LPL now expects Commonwealth to generate approximately $435 million of run-rate EBITDA once fully integrated. LPL also closed its acquisition of Mariner Advisor Network during the quarter, Audette said. The company reported gross profit of $1.618 billion, up $26 million sequentially, and an adjusted pretax margin of approximately 39.3%. Commission and advisory fees, net of payout, were $486 million, down $1 million from the first quarter. The payout rate increased 22 basis points sequentially to 87.4%. Audette said LPL expects the payout rate to rise by about 80 basis points in the third quarter, reflecting seasonal production trends and previously announced corporate advisory pricing reductions that took effect July 1. Client cash revenue was $457 million, down $3 million from the prior quarter, primarily due to lower average cash balances. Client cash balances ended the quarter at $56.9 billion, down $2.2 billion. The fixed-rate portion of the ICA portfolio was approximately 60%, within LPL’s target range of 50% to 75%. The company expects its ICA yield to increase by 10 basis points in the third quarter after shifting client sweep-rate methodology from asset-based tiers to cash-balance-based tiers. Audette said the change, which is intended to align LPL’s approach with Commonwealth and independent peers, should increase run-rate ICA yield by roughly 20 basis points once fully implemented, with about half of the benefit expected in the third quarter and the remainder in the fourth quarter. Core general and administrative expense was $519 million, down $13 million sequentially and below the low end of LPL’s outlook range. The company lowered its full-year 2026 Core G&A outlook to $2.140 billion to $2.165 billion and expects third-quarter Core G&A of $540 million to $560 million. Audette said efficiency initiatives, including automation and AI-driven tools, are intended both to lower costs and improve the advisor experience. The company expects third-quarter technology and advisor transition loan amortization, promotional spending and depreciation and amortization to increase from second-quarter levels. LPL ended the quarter with $430 million of corporate cash and a leverage ratio of 1.9 times, near the midpoint of its target range. The company repurchased $309 million of shares during the second quarter, above its initial $125 million plan, as management viewed the stock-price dislocation as an opportunity. In July, LPL’s board authorized a new $2.5 billion share-repurchase program, with $300 million planned for the third quarter. Steinmeier also highlighted Latitude, LPL’s unified technology experience, and Cyan, an AI agent designed to support advisor workflows. He said Cyan’s initial uses include identifying growth opportunities, generating actions from financial plans and automating routine tasks such as address updates. Management said AI could improve productivity in advisor practices, service and operations, and technology development. For July, Audette said client cash balances were tracking near $54.1 billion, reflecting a $2.8 billion reduction from advisory fees, while organic growth was tracking in the range of 3% for the month. LPL Financial (NASDAQ: LPLA) is a U.S.-focused financial services firm that provides brokerage, custodial and advisory platforms to independent financial advisors, registered investment advisers and institutions. Operating primarily as an independent broker-dealer and custodian, the company supports a network of advisors with the operational, compliance and clearing infrastructure needed to manage client accounts and deliver investment advice outside of traditional wirehouse models. The firm's product and service offerings include trade execution and clearing, custody services, retirement plan services, model portfolio and advisory platforms, wealth management technology, investment research and product access across equities, fixed income, mutual funds, exchange-traded funds and insurance and annuity solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "LPL Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

LPL Financial Holdings Inc.’s LPLA second-quarter 2026 adjusted earnings of $5.84 per share surpassed the Zacks Consensus Estimate of $5.39. The bottom line grew 29% year over year. Results reflected continued scale benefits, highlighted by strong revenue growth and an increase in total client assets. Growth in gross profit also supported the quarterly performance. However, rising expenses partly offset these positives. After considering non-recurring items, net income was $379.3 million or $4.74 per share, up from $273.2 million or $3.40 per share in the prior-year quarter. Quarterly revenues came in at $5.05 billion, up from $3.75 billion in the year-ago quarter. The top line marginally surpassed the consensus estimate of $5.03 billion. Advisory revenues soared 53% year over year to $2.63 billion, remaining the largest contributor to the top line. Total commissions increased 19% to $1.23 billion, supported by a 17% increase in sales-based commissions and a 20% gain in trailing commissions compared with the prior-year period. Asset-based revenues totaled $835.1 million, up 19% year over year, as client cash revenues climbed 12% year over year to $443.5 million and other asset-based revenues advanced 28% year over year to $391.6 million. Service and fee revenues surged 38% year over year to $208.9 million, while transaction revenues improved 37% to $83.2 million. LPL Financial’s gross profit rose 24% from a year ago to $1.62 billion, benefiting from higher advisory revenues and growth across attachment revenue streams. LPLA’s production-based payout totaled $3.38 billion, reflecting growth in advisor activity and the economics tied to advisory and commission revenues. The payout rate was 87.44%, up slightly from 87.33% in the year-ago quarter. Total expenses increased 35% year over year to $4.67 billion, illustrating the cost of supporting the company’s expanded revenue and asset base. Advisory and commission expenses climbed 41% year over year to $3.51 billion. Beyond production-related costs, several corporate expense categories moved higher. Additionally, G&A increased 22% year over year to $519.3 million, highlighting continued investment in capabilities and scale initiatives. LPL Financial ended the quarter with $2.56 trillion of total client assets, up 34% from the prior-year period. Advisory assets rose 46% to $1.55 trillion and represented 60.4% of total client assets. Brokerage assets grew 18% from the prior-year quarter to $1.01 trillion. Asset flows remained positive. Total organic net new assets were $23.1 billion, representing a 4% annualized growth rate. Within that, advisory organic net new assets totaled $30.2 billion, while brokerage organic net new assets were negative $7.1 billion. Recruited assets were $24.9 billion, up 35% from the year-ago quarter. Recruited assets over the trailing 12 months totaled approximately $89 billion, indicating a larger pipeline over a longer horizon. On the outlook front, LPLA lowered its 2026 Core G&A guidance to the range of $2.140-$2.165 billion, including expenses related to the Commonwealth Financial Network acquisition. Capital actions also remained in focus. The company repurchased $309 million worth of shares during the second quarter and plans approximately $300 million of repurchases during the third quarter. On July 23, 2026, the board approved a $2.5-billion increase in the company’s share-repurchase authorization. LPLA declared a quarterly dividend of 30 cents per share, which will be paid on Aug. 28, 2026, to shareholders of record as of Aug. 14. On M&A execution, LPLA’s Commonwealth conversion remains on track for the fourth quarter of 2026, with expected asset retention of approximately 90%. The estimated run-rate EBITDA contribution increased to $435 million from $410 million. The company also completed its acquisition of Mariner Advisor Network, adding 367 advisors managing approximately $31 billion in client assets. In addition, LPLA continued to deploy capital through its Liquidity & Succession program, investing roughly $21 million across four transactions during the quarter. LPL Financial’s expanding advisory asset base, solid recruiting activity and positive organic asset flows supported strong revenue and earnings growth in the quarter. Continued progress on the Commonwealth conversion, the Mariner Advisor Network acquisition and capital deployment initiatives may further strengthen the company’s scale and growth prospects. However, rising expenses, including higher advisory and commission costs, partly offset the benefits of revenue growth. LPL Financial Holdings Inc. price-consensus-eps-surprise-chart | LPL Financial Holdings Inc. Quote Currently, LPL Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Interactive Brokers Group’s IBKR second-quarter 2026 adjusted earnings per share of 69 cents surpassed the Zacks Consensus Estimate of 64 cents. The bottom line reflected a rise of 35.3% from the prior-year quarter. IBKR’s results were primarily aided by an increase in revenues, growth in customer accounts and a rise in daily average revenue trades. However, higher expenses were the undermining factor. Charles Schwab’s SCHW second-quarter 2026 adjusted earnings of $1.62 per share outpaced the Zacks Consensus Estimate of $1.53. The bottom line soared 42% year over year. SCHW’s results benefited from the robust performance of the asset management business and record trading revenues. Higher net interest revenues and solid brokerage account numbers were other positives. However, an increase in expenses was the undermining factor. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 5:00 p.m. ET Chief Executive Officer - Richard Steinmeier President and Chief Financial Officer - Matthew Jon Audette Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good afternoon, and thank you for joining the Second Quarter 20 Earnings Conference Call for LPL Financial Holdings, Inc. Joining the call today are Chief Executive Officer, Richard Steinmeier and President and Chief financial officer, Matthew Jon Audette. Richard and Matthew will offer introductory remarks, and then call will be open for questions. The company would appreciate if analysts would limit themselves to only 1 question. To ask a follow-up, please re-enter the queue. The company has posted its earnings press release and supplementary information on the Investor Relations section of the company's website investor.lpl.com. Today's call will include forward-looking statements, including statements about LPL Financial's future financial and operating results, outlook, business strategies and plans, as well as other opportunities and potential risks that management foresees. Such forward-looking statements reflect management's current estimates or beliefs and are subject to known and unknown risks and uncertainties that may cause actual results or the timing of events to differ materially from those expressed or implied in such forward-looking statements. For more information about such risks and uncertainties, the company refers listeners to disclosures set forth under the caption Forward-Looking Statements in the earnings press release as well as the risk factors and other disclosures contained in the company's filings with the Securities and Exchange Commission. During the call, the company will also discuss certain non GAAP financial measures. For a reconciliation of such non-GAAP financial measures to comparable GAAP figures, please refer to the company's earnings release. Which can be found at investor.lpl.com. With that, I will now turn the call over to Mr. Steinmeier. Richard Steinmeier: Thanks, operator. And thank you to everyone for joining our call. it is a pleasure to speak with you again. After a strong start to the year, we continued our momentum in Q2. We delivered improved organic growth during the quarter, while driving recruiting pipelines to record levels. We made meaningful progress in preparing to onboard Commonwealth Financial Network. And we drove material improvements in our operating leverage. We achieved this in a rapidly evolving environment as elevated macroeconomic uncertainty, and market volatility at the start of the quarter gave way to a sharp market recovery during the quarter. Serving as the latest reminder of the value of professional advice and the resilience of our model. Underlying this consistent performance, was the exceptional work and dedication of our teams including the talented colleagues who joined us from Commonwealth. In recognition of these efforts, JD Power ranked Commonwealth and LPL number 1 and number 2 for independent adviser satisfaction. Commonwealth's award is its 13th straight No. 1 ranking This is a remarkable achievement and a meaningful validation of the complementary nature of our organization and the culture we are building together. Now to highlight some of our Q2 results, in the quarter, total client assets were $2.6 trillion up 10% from Q1, as organic growth was complemented by higher equity markets. We attracted organic net new assets of $23 billion representing a 4% annualized growth rate. Our second quarter business results translated into another quarter of strong financial performance with record adjusted EPS of $5.84. Turning to our strategic plan, we remain unwavering in our strategy and our aspiration to be the best firm in wealth management. To that end, we remain focused on 3 key priorities. 1, preserving the client centricity the firm was built on,, 2, empowering our employees to deliver exceptional outcomes for our advisers and institutions and their clients, and 3, delivering improved operating leverage. Continued execution across these priorities will help us sustain our industry leading growth while advancing the effectiveness and efficiency of our model. With that as context, let's review a few business highlights from the quarter. In Q2, recruited assets improved to $25 billion. Prior to large institutional wins, this was our strongest quarter of recruiting in nearly 2 years. During Q2, we continued to advance opportunities into the later stages of our recruiting pipeline, And despite the strong pull through, the overall pipeline reached a new record. This positions us well for improved organic growth in the second half of the year. In our traditional markets, we added approximately $23 billion in assets during Q2, maintaining our industry leading capture of advisers in motion, while continuing to expand the depth and breadth of our recruiting pipeline. With respect to our expanded affiliation models, we delivered another solid quarter recruiting roughly $2 billion in assets. Turning to overall asset retention was 97% for both the second quarter and over the last 12 months. This is a testament to our continued efforts to enhance the adviser experience through the delivery of new capabilities and technology and the ongoing evolution of our service and operations functions. Now let's turn to Commonwealth. The integration is progressing well, and we remain on track to onboard Commonwealth Advisors in the fourth quarter. In terms of asset retention, we are in the mid-80s today, and we continue to work towards our target of 90% retention of client assets. From an operational standpoint, we are nearing the completion of the technology and capability builds needed to help facilitate a seamless conversion. Key initiatives include advancing our householding capabilities, and modernizing our case management platform to support a more connected end to end service experience. For existing Commonwealth advisers. When combined with the introduction of a single relationship agreement, this creates a more flexible relationship centric model that improves the client experience enhances adviser productivity. These capabilities not only enable the Commonwealth conversion, but also accelerate the delivery of core functionality for the benefit of all LPL advisers and institutions. In parallel, we are ramping up our training efforts to ensure that our Commonwealth teammates are positioned to continue delivering exceptional service to existing Commonwealth advisers and that Commonwealth advisers and their support staff are ready to hit the ground running following the conversion to the LPL platform. In closing, the second quarter was another strong quarter for LPL. I want to take a moment to thank our entire team both at LPL and Commonwealth, for the dedication and hard work that drove these results. And contributed to the recognition from J.D. Power. We are building something special and I am incredibly proud of the passion and dedication our teams bring to supporting our advisers. As we look ahead, remain well positioned to serve as a critical partner to our advisers and institutions to continue delivering industry leading organic growth and to maximize long term value for shareholders. With that, I will turn the call over to Matthew. Matthew Jon Audette: Thanks, Richard. I could not agree more. It was a tremendous quarter. As the team continues to deliver remarkable results. To reiterate some of these highlights, we delivered solid improvement in organic growth, continued to advance our adviser experience, drove improved operating leverage through ongoing efficiency gains and better monetization of the value we deliver to clients, progressed our preparation to onboard Commonwealth, and executed on our capital allocation strategy. We closed the acquisition of Mariner Advisor Network, remained active with our liquidity and succession capability, and given the dislocation in our stock price, accelerated share repurchases. These efforts resulted in strong second quarter business and financial performance and position us well for the second half of the year. Now turning to a few highlights from our Q2 business results. Total client assets were 2.6 trillion up 10% from Q1 as continued organic growth was complemented by higher equity Total organic net new assets were 23 billion and approximately 4% annualized growth rate. As for our Q2 financial results, the combination of organic growth, and expense discipline led to an adjusted pretax margin of approximately 39.3% and record adjusted EPS of $5.84. Gross profit was 1.62 billion up 26 million sequentially. As for the key drivers, commission advisory fees net of payout Were 486 million down 1 million from Q1. Our payout rate was 87.4%, up 22 basis points from Q1 largely due to the typical seasonal build in the production Looking ahead, we expect our payout rate will increase by approximately 80 basis points in Q3, driven by typical seasonality as well as the previously announced reductions to our corporate advisory pricing that went into effect on July 1. With respect to client cash revenue, it was 457 million down $3 million from Q1 primarily reflecting lower average cash balance. Overall client cash balances ended the quarter at 56.9 billion down $2.2 billion Within our ICA portfolio, the mix of fixed rate balances ended the quarter at roughly 60% within our target range of 50% to 75%. Looking more closely at our ICA yield, it was 36 basis points in Q2, unchanged sequentially. 1 item of note is that we are shifting our client sweep rate methodology from an asset based tiering structure to a cash balance based tiering structure. As a result, as we look ahead to Q3, we expect our ICA yield to increase by 10 basis points. As for service and fee revenue, it was $209 million in Q2, down $2 million from Q1. Looking ahead to Q3, we expect service and fee revenue to increase by approximately $5 million driven by revenues from our annual focus comp. Moving on to Q2 transaction revenue. It was $83 million up $2 million from Q1 driven by record trading volumes and 1 additional trading day during the quarter. As we look ahead to Q3, we expect transaction revenue to decline by roughly $5 million Now turning to our acquisition of Commonwealth. As Rich mentioned, the transaction continues to progress well, and we remain on track to onboard Commonwealth Advisors in the fourth quarter. As for the financials, accounting for current market levels, we now estimate run rate EBITDA of approximately $435 million once fully integrated. Now let's move on to expenses starting with core G&A. It was $519 million in Q2, down $13 million sequentially and below the low end of our outlook range. Reflecting our continued progress in driving greater efficiency, and reducing our cost to serve. For the full year, given our progress to date, we are lowering our core G&A outlook range. We now anticipate 2026 core G&A to be in a range of $2.14 billion to $2.165 billion give you a sense of the near term timing of this spend, we expect Q3 core G&A to be in the range of $540 million to $560 million Turning to TA loan amortization. It was $142 million in Q2, up $6 million from Q1. As we look ahead to the third quarter, we expect TA loan amortization to increase to approximately $150 million reflecting strengthening adviser recruiting. As for promotional expense, it totaled $79 million in the second quarter, up $3 million from Q1 driven by increased conference spending. Looking ahead to Q3, we expect promotional expense to increase to approximately $95 million driven by conference spend. To depreciation and amortization. $110 million in Q2, up $4 million sequentially. Looking ahead, we continue to invest in technology and expect Depreciation and amortization to increase by roughly $8 million in Q3. Moving to our tax rate. It was approximately 26.4% in Q2, and we expect a similar level in Q3. Regarding capital management, we ended Q2 with corporate cash of $430 million down $137 million from Q1. As for our leverage ratio, it was 1.9x at the end of Q2 near the midpoint of our target range. Moving on to capital deployment. Our framework remains the same. Focused on allocating capital aligned with the returns we generate. Investing in organic growth first and foremost, pursuing M&A where appropriate, and returning excess capital to shareholders. In Q2, we deployed capital across our entire framework. As we continue to invest to drive and support organic growth, close the acquisition of Mariner Advisor Network, remained active with our liquidity and succession capability, and returned capital to shareholders. Specific to share repurchases, while our initial plan was to repurchase $125 million of our stock in Q2, The dislocation in our share price presented an attractive to deploy additional capital. So we accelerated repurchases to $309 million. Additionally, in July, our board approved a new $2.5 billion repurchase authorization. With $300 million planned for the third quarter. In closing, we delivered another quarter of strong business and financial results. As we look forward, we remain excited about the opportunities we have to continue to drive growth deliver operating leverage, and create long term shareholder value. With that, operator, we are finally ready to open the call for questions. Operator: Certainly. And as a reminder, ladies and gentlemen, please limit yourself to 1 question each. If you would like a follow-up question, you may reenter the queue. Our first question comes from the line of Alexander Blostein from Goldman Sachs. Your question please. Alexander Pozkin: Hi, good afternoon. Thank you for taking the question. I was hoping to start with the outlook on organic growth. Obviously, June saw a nice pickup, and you talked about recruiting pipeline looking pretty robust. So maybe spend a minute on how you view organic growth for the half of the year, whether or not NNA can sustain above 5% And, also, coupled with that, we continue to hear a pretty competitive landscape for recruiting. Curious how that squares away with your with the outlook seeing for the back half of the year? Thanks. Richard Steinmeier: Yeah. Hey, Alexander. it is Richard. Thanks for the question, and nice to hear from you. So maybe let's talk about the recruiting. Well, let's talk about organic growth for the balance of the year. I think we saw that we have got a rebound this quarter up to 4%. Look. there is a couple things that drove that. First is that we saw adviser movement move back in line with historical norms. that is important for us. As we capture a disproportionate share of the advisers in motion, any movement to that overall you know, adviser movement, we are going to be 1 of the winners who benefit in that movement. And so let's say, you know, there is a macro movement improvement that helped us align with our long term share capture of advisers in motion. Second, you know, and this continues, and you heard in prepared remarks, Commonwealth is largely coming towards the end of the recruiting and education event. We still have advisers out. To continue to progress with them, to problem solve with them, to get to solutioning with them, And so it is not completely-- you know, over. But as we have continued on that journey, we have seen more and more of our capacity to go back into the marketplace and engage directly with advisers. And so when you think about that second half of the year, we should be able to return to more normalized levels, not only of recruiting, but continuing to build pipeline And so that makes us confident in our ability to deliver mid to high single digit growth over time if you extend even further out and look at our long term outlook, I think this is where we even strengthen our conviction even further. We continue to be the disproportionate winner in our traditional markets. We have an unmatched value proposition and actually continues to strengthen. When we look at the wirehouse and regional adviser movement, largely, we have been continuing to gain consideration, which is really important for us because as we speak to those advisers, we more often than not are 1 of the winners in those conversations, but we have to get into more conversations So we do that by closing our capability gap, which we continue to do in quarter and throughout the balance of the year. I alluded to some of those even in prepared remarks. And continuing, more importantly, to actually position our brand actively in the marketplace. So you saw us do that a year ago with our brand campaign. Additionally, we have announced a partnership with the PGA of America that we think will continue to progress Our representation not only to advisers, but to their high net worth end investors, which is critically important as they consider firms that they are going to consider moving to. And maybe lastly, in the institutional channel, this is 1 where we had to pause a little bit in our consideration of large opportunities to bring on to the platform because of the Commonwealth transition was so extensive and the build was so comprehensive. And now as we move towards being on the other side of that and finishing our capability build, it opens up our ability to continue to progress pipeline in the institutional channel with opportunities to onboard them. You marry that with low attrition and things and steady contribution from same store sales. And, again, I look at that longer outlook and say, okay. I think we have a strong ability to sustain mid to high single digit growth. Maybe lastly to that competitive environment, I think it is completely fair representation. It remains spirited. We saw about a year ago, we saw a move in, market TA levels. They have continued to persist at higher elevated levels. And from our perspective, stay disciplined on returns. TA is part of our conversation with advisers, but it is not the driver. Kinda repeat this pretty regularly, but advisers who are changing firms first about capabilities, technology, and service. They then think about ongoing economics. And third, they think about upfront economics. So you put that all together, We feel incredibly strong in our ability to not only sustain our performance to improve it over the latter half of the year. Operator: And our next question comes from the line of Steven Chubak from Wolfe Research. Your question please. Steven Chubak: Hi. Good afternoon, Richard and Matthew, and thanks for taking my question. I was hoping to get an update on the pricing review. Pause. Steven. I like that pause. That is our fault. We were not gracious hosts there. Thank you. That you are not, but all is forgiven. Rest assured. Was hoping to get an update on the pricing review just now that you are further along in the diligence process, what has been some of the early feedback from advisers as you have explore potential pricing changes? And what are some of the key milestones that need to be met as part of the review to get you and the board comfortable with adopting or implementing any such pricing changes to minimize the reliance on cash economics? Richard Steinmeier: Yeah. Hey. Thanks, Steven. So like we said last quarter, we are actually doing that work. I think you know, we need to make sure we take that time as you probed properly to think and ensure that any potential solutions that we come up with, 1, that they are well considered, that we are looking at it from all angles, that it is aligned with our long term strategy, and that it creates value for our advisers for our institutions, and for the clients that they serve. And so give you a little bit of color why this may take us a little more time. We have exploded the types of advisers and institutions that we serve. If you think about the 2 business models that we have, in our adviser business, we have grown our affiliation models pretty dramatically, and that looks like different profiles of the advisers. Who have different compositions of their book. And similarly on the institution side, we no longer just serve banks and credit unions. We serve large regional banks. National banks, We serve product manufacturers. So the complexity of the type of clients that we serve is pretty comprehensive. Maybe extensive. We have got to make sure, and we are engaged with those clients to ensure as we build any solution and evaluate those solutions across 32 thousand advisers, 1 thousand+ institutions, and 8 million end investors. That they work the solutions work across those clients and their operating models. The levers are very clear to us. But as we go through the work, we have to make sure that it works for those constituents and that is the update that we have on the work. We are doing that work. We do not have any precise updates on the completed work to date. But we will make sure to update you when there is more to share. Operator: Helpful, Kyle. I appreciate Our next question comes from the line of Daniel Fannon from Jefferies. Your question please. Dan Fannon: Greg, thanks. Matthew, I was hoping you could expand upon the G&A outlook. If the numbers continue to come in better than you have forecast, As you think about the back half of the year, are there are you still implementing some of these efficiencies to think about the ongoing benefits? Or is obviously, what you are putting in the numbers today is that, you know, realistic based upon the you know, what you guys have done so far? Matthew Jon Audette: Yeah, Daniel. I mean, I think you look, if you look at the trends, like, think the headline answer is, I think, an evergreen thing. I mean, the continued investments whether it be automation, efficiency, AI driven things, that do 2 things. They not only, you know, improve our efficiency and drive down our cost. They also improve our value proposition with our advisers. So I think that is something we are gonna consistently do. And I think what you are seeing so far this year is some outperformance on the pace at which we are able to do these things. So I think it is been you know, a couple quarters in a row, we have been able to deliver more efficiencies than we expected. And we are able to lower the guidance for the year. To underscore, the guidance for the year includes everything that we have worked on and everything that we expect to work on. And I think you have seen us. there is been periods where we have met that. there is been periods where we have done better than we expected. So I think that now core G&A growth of 4.5%, 4% to 5.5%, prior to Commonwealth is our best estimate right now. But I think if you broaden that out, I think there is each and every year, I think we are gonna be able to continue to drive investment And, again, underscore it is not only about efficiencies, but it is improving the value proposition in our experience with our clients. Thank you. Operator: Thank you. And our next question comes from the line of Devin Ryan from Citizens Bank. Your question please. Devin Ryan: Greg. Hi, Richard. Hi, Matthew. Lot of good stuff in here. I want to ask about, Richard, a point you made, advisors, care about capabilities in tech when they are thinking about moving firms. And so with that said, would it be good to get some color on this AI platform Latitude? I saw you just launched that or announced it a couple days ago. And so just be good to hear about kind of functionally what are the capabilities for advisers. Are there ways you can think about framing, you know, how it can help their productivity? And then how differentiated is it, versus just table stakes I know that may connect back to your recruiting pitch or just making the firm more attractive. for institutions to think about partnering with you? Thank you. Richard Steinmeier: Yeah. Thanks, Devin. So I think, 1, technology has always been important for advisers who are considering moving firms. it is usually 1 of the first things we go through. In fact, recently, we continue to accelerate in our home office visits, our tech demos earlier in the sales process. The reason being that what feedback we get from advisers is that there is a material differential differentiation in our capabilities and technology than the competitors that they are looking at. And I would tell you, as we get through a tech demo, what we see is we win in head to head more often than we did even a year ago. Because through the last couple of years, you have seen us continue to enhance our investments made in technology. I think the Latitude announcement is a reflection of that. We reflected that we have invested nearly $2 billion over the last few years in building the core foundational capabilities in our data, security, adviser technology, and AI, Latitude is the reflection of our unified tech experience that ties all of that together. it is a crisper way to reflect integrated nature of our technology ecosystem that we think is a really good reflection to advisers. And as they get in, they see the connectivity across all of that. No longer a separation of the adviser work station and the end investor capabilities and the workflows and the cyber environment. And now the introduction for us of Cyan, our AI agent, It helps us actually operate across all of the adviser workflows and deliver contextual real time intelligence. And so specific to your question, when we look at just Cyan and we look at how does that improve the operation effectiveness of an adviser's practice. Well, a couple of our high impact use cases that we are launching with include the ability to identify growth opportunities for advisers in their practice. As they probe into it, natural language processing, to identify ways that they can grow, actions they can take, And, actually, 1 of the things that is really impressive is a button that simplifies the next actions they should take to prioritize improving their growth against the verticals that they choose to grow. Second, you know, there is other things that we have done there to make them more efficient in their practice. We introduced jump as a way to, you know, record and then get actions coming out of meetings. But now we are introducing through Cyan the ability to take financial plans that they have already developed to synthesize those plans, for insights to the end investor, as well as ways to deliver that to the adviser that are much more efficient than they are doing today. And 1 other high value use case is automating routine maintenance tasks. So instead of having to go into the system to make address changes, we actually just go into the agent, say you are making an address change. You indicate the change of address. And then it is automatically propagated across the entire ecosystem of Latitude. I think these are good examples of a firm that is positioning itself to lead in technology making investments, enabled through AI, that further differentiate us from our competitive set. And as we have not only shown our capabilities, Devin, but as we have demonstrated our road map for AI to advisers who are considering the firm. It usually is a significant point of differentiation between us and the other firms they are evaluating. Operator: Excellent. Thanks, Richard. Thank you. And our next question comes from the line of Michael Cho from JPMorgan. Your question please. Mike Cho: Hi, good evening. Thanks for taking my question. I just wanted to touch on pricing as well, not so much the work that you are doing now, Richard, but the pricing adjustments that you announced last year and you implemented some earlier this year and Matthew, you called out, you know, some of the other parts starting in July as well. So just given some time that is passed, you know, have you seen any adjustments in adviser behavior since announcement and implementation And any key takeaways here from an LPL perspective? And if you see other opportunities to potentially mark to market maybe some of LPL's more enhanced offerings, maybe in, you know, in light of Latitude and Cyan as well? Thanks. Matthew Jon Audette: Yeah, Michael. I mean, I will just I will just, resummarize them for you. I think the headline is things have played out as we expected. So I think when we announced those, we walked through the 3. I will take you through the components. But we had expected a net improvement in margins kind of in incorporating everything that you had just walked through of about 1 percentage point. And that is largely what is played out. So just as a reminder, there was 1 in each of the core, in Q1, Q2, and Q3. So Q1 was the new fees on brokerage accounts. In Q2, it was fees on the direct mutual fund business. And those 2 things together led to an increase in service and fee revenue by about $40 million per quarter. And then the last change coming, which I talked about in prepared remarks, it is coming in Q3. Was reductions on pricing in our advisory really to make them, you know, even though they are already competitive, even more competitive And that those pricing reductions will show up as an increase in payout of about $20 million a quarter. So the net of all of that is around $20 million a quarter, $80 million annualized. Right in line with where we thought. And to the broad point, I think it just positions us as we talked about when we announced them, the first 2 fee increases were really to bring fees in those 2 areas in line with market. And then the third area in advisory, I think, is making a platform that was already competitive and value prop-wise even more competitive. So I think it is really played out how we thought. Operator: Thank you. Our next question comes from the line of Craig Siegenthaler from Bank of America. Your question please. Craig Siegenthaler: Thanks. Good evening, everyone. So similar question, but I want to see if you could potentially change your revenue share arrangements with asset managers. And I wonder if you view this as a future earnings lever given that your size increase and you are a scaled retail distribution partner? So and what I am getting at is could LPL increase its underlying economics on ETFs mutual funds, and SMAs? Thank you. Matthew Jon Audette: Yeah. Hey, Craig. This is Matthew. I will just say what, you know, what Richard went through in detail as far as what we are looking at on economic and things we would change. that is where our energy is. I think that there is other things that, you know, once we are done with concluding, is there something to do there or not? If there is other things to look at, we would take that up. But I think when you look at our overall economic the thing that we are staring at is cash sweep that, I just underscore everything that Richard said. Thank you. Operator: And our next question comes from the line of Michael Brown from UBS. Your question please. Mike Brown: Greg. Good afternoon. Thanks for taking my question. You have observed that your advisers, when they adopt your business solutions, they tend to grow 2x faster than advisers that do not. As you think about the Commonwealth cohort and the transition there, what are your expectations for their adoption of your subscription based services? Like, your CFO and marketing solutions? And do you think that there is kind of similar opportunity set for the Commonwealth Advisors? Richard Steinmeier: Hey, Mike. it is Richard. Thanks. So first, you are right. We observed that as advisers actually begin to outsource more of the work they do themselves, They put themselves in a position to go to the core advice delivery and you see that not only through marketing and CFOs you see it also through OCIO solutions, paraplanning solutions. And so anytime when an adviser is thoughtfully reorganizing the structure of their office, to drive productivity and drive deeper engagement with clients. We see accelerated growth. We also see that inside of our managed models that have a lot of those offerings embedded inside. So when you look at our strategic wealth services as well as our Linsco offering, we see faster growth there as well because of the support system that is provided and the solutions that are embedded in those off Commonwealth actually has a subset of the business solutions capabilities and services. In fact, they have some that are differentiated from us around practice management. And some growth support as well. And so there are elements already. We see that Commonwealth Advisors are faster growing advisors. More productive advisors. And so they have been embedding those capabilities and driven outsized same store sales growth. We would anticipate as we get into the conversations, further conversations with Commonwealth Advisors, there is a lot of our solutions that are attractive to them. I think the CFO and marketing solutions are attractive. I think 1 to maybe put on your radar screen is liquidity and succession solution. Which we find also accelerates growth in advisers practices as they go through liquidity and succession we find that there is a pretty strong demand from Commonwealth advisers as Commonwealth was building a solution that was similar but was not as robust and was not as far along in its deployment as our liquidity and succession solutions are. So I would say across a cadre of solutions, there is an appetite from Commonwealth Advisors. I would say it skews more heavily towards liquidity and succession. Because they had some of the solutions that we have already available inside of Commonwealth Financial now. Operator: Great color. Thank you for all that, Richard. Thank you. And our next question comes from the line Brennan Hawken from BMO Capital Markets. Your question please. Brennan Hawken: Hi. Thanks for taking my question. This is a little bit more of an abstract question. there is among some investors, there is some debate about whether or not AI tools could eventually lead to some hybrid solutions, you know, which marry AI with advisers and potentially come at a lower price point. You know, you talk to a lot of advisers. what is the adviser view on that? Is that you know, considered a real risk? And, you know, is there anything that could be done to insulate from this risk if it does end up emerging? Thanks. Richard Steinmeier: Hey, Brennan. it is Richard. Thanks for the question. I think when you look into AI solutions, what you see is you kind of either look at it as a glass half full or glass half empty. Let me give you the glass half full case. What you are gonna see is a pretty significant enhancement in the workflows that exist certainly first inside of our ecosystem, our ability to process work, our ability to drive straight through processing, our ability to make it just easier to do business. And when you look at the workflows that exist inside of an adviser's practice, scheduling, preparing for meetings, running alternative investment solutions, actually running the solution set you see there is material opportunity to improve the efficiency of an adviser's practice. When you take those 2 things together, we stare into what we think will be a pretty significant enhancement in the availability of capacity at an adviser's practice level. In fact, many of the folks that sit inside of an adviser's practice think of the CSAs, I think there is a potential for them to get much more productive and move to much more interesting and challenging work of beginning themselves to deliver advice. And so as we look at the automation of an adviser's practice of the workflows inside of the practice, we think that there is gonna be capacity to serve more end investors. And so we have not seen a material reduction over the last several decades in spite of many new innovations that the advisory fee is driven down in any material way. But I would tell you the offset to that would be we think even if that were to occur, the advisers inside of their practice would have the ability to grow the practice and grow the number of clients and the assets they serve and serve them in ways that they serve their best clients today. And so we view delivering the automation and AI as enhancing the adviser's practice. We think it will strengthen their ability to go to market and it will actually allow them to spend more time in advice delivery, in context setting, and helping take decisions with end investors. So that is the theory to our case. I think we believe strongly in it, and that is largely what we hear from our advisers. They are more excited about the potential of AI than they are scared of the impact of AI. And we support that, perspective as well. Operator: that is interesting color. Thanks, Richard. Thank you. And our next question comes from the line of Michael Cyprys from Morgan Stanley. Your question please. Michael Cyprys: Hey, good evening. Thanks for taking the question. Just wanted to ask about expense growth. Just curious how you would characterize that underlying pace of 4% to 5.5% core DNA growth that you referenced relative to a multiyear profile. And then when you layer in AI initiatives, I guess, meaningful could that be on a multi-year profile when you look out? And as you think about AI, I guess, where do you see some of the biggest opportunities to change processes and workflows that could be the most meaningful and really drive the needle on the bottom line as you look out over the next couple of years? Matthew Jon Audette: Yeah, Michael. I think that, I mean, the opportunity is huge. I mean, I think, like, most folks, I think you are gonna be balanced in how much you are investing to improve an experience, give you more capacity to invest and drive your value proposition, versus expand your op margin. And I think you see us balancing that. I think just looking at, you know, just this year, I think you are starting to see a good taste of what we can do and deliver I think, relatively, reasonable expense growth, especially when you look at the last few years. While at the same time, you know, delivering an increased capability set starting to reinvigorate organic growth, and doing that all, I think, at that 4% to 5.5% where we estimate now to be, is quite a good balance. When you think about, like, AI, so just kinda the end of your question there on the on the areas. I mean, I think for us, I put it in 3 broad categories where first is directly serving the adviser, and Richard hit on this a little bit, in talking about Latitude. Talking about Cyan. But those are things where I am just underscoring what he said. Like, the benefits of that, are not only on the value prop for advisers, but they lead directly, to efficiencies on our side. Things that would typically have been a phone call or an email and multiple steps and processes in both sides can just be completely processed through by that agent. I think the second 1 is just pointing all that-- right at our internal infrastructure or back office, meaning service and operations, that can just that is where it can materially, improve the cost structure and the efficiency. And then the last 1 would just be in our technology development. Right? The coding and the tech builds itself. Where we are already seeing the ability to not only build things much cheaper than they were historically, but build them at a faster pace. And I think you put those things together, and I think it goes back to a little bit of my headline point in the answer that not only can we drive efficiencies in the cost side, but we are gonna be in a position to be able to improve and deliver a value prop I think, better and faster than most. So I think, you know, it is an exciting view over the next several years of being able to do that, but that helps with color on how we think about it. Operator: Great. Thank you. Thank you. And our next question comes from the line of Benjamin Budish from Barclays. Your question please. Benjamin Budish: The prepared remarks, you talked about a pricing change at NDI that is going to benefit a little bit in Q3? So if you could explain the mechanics of that change a little bit more? How does it work? what is the rationale for doing it? Is there particular behavior that you are looking to incent? How should we be thinking about that going forward? Thank you. Matthew Jon Audette: Yeah. You bet, Benjamin. I mean, I think it is primarily driven by the Commonwealth integration. So when you look at as we prepare to onboard Commonwealth, how we, LPL, have priced cash-based tiering has been based on the level of AUM that the household has with us. Commonwealth prices it based on the actual level of cash balances that they have. So what we are doing going forward is just shifting to an integrated approach that is cash-based balance tiering, and that also aligns us with our independent peers. So it is got a benefit there. Now as to why that leads to an increase, in returns, when you look at the price tiering, right, to perhaps state the obvious, you pay less on smaller balances and more on the larger balances. And as we have talked a bit about, I think for a long time, our advisers have their clients in cash in relatively small levels. We are probably at about 2 years now where the average amount of cash per account at LPL has been around $5 thousand. It really has not moved below that for 2 years. So the net result of that, is more cash at those lower tiers, and that will lead to an increase in the ICA yield on a run rate basis. Of about 20 basis points. And those changes that I referred to are going to go into effect in August, so kind of in the middle of the quarter. So you can view that as half of it coming in Q3. And then the second half coming in Q4. Operator: Okay. Great. Thank you. And our next question comes from the line of Jeffrey Schmitt from William Blair. Your question please. Jeffrey Schmitt: Hi. Thank you. Question on the institutional channel. You have sort of taken a pause, it sounds like, through the Commonwealth deal. How would you characterize your pipeline today? Has that been building? And are you seeing demand for outsourcing increase versus a year ago? Or has that been fairly stable? Richard Steinmeier: Yeah. Hey, Jeffrey. Thanks for the question. So first, you are right. I mean, we had to take an intentional pause not necessarily in our engagement in the marketplace, but around our ability to onboard. We just first and foremost, making sure that we got the Commonwealth onboarding capability build ahead of everything else. And so it did put a pause on how we progressed opportunities in the pipeline. If I reflect on maybe just for a second kind of our positioning in the marketplace. So first, in that institutional market, we are the absolute leader in the institutional space and have been as such for years. And the institutions we serve support $590 billion of client assets in their wealth businesses, and that is multiples greater than those of our next closest competitor. As we position in our conversations and actually with folks who have onboarded with us we have a really compelling value proposition We accelerate the growth of the firm as they come on. We actually improve their margins. And we reduce regulatory and compliance risk And maybe most importantly across that, especially when you think about us relative to competitors, we have proven our ability time and again to actually transition very complex, large scale organizations and their wealth businesses seamlessly. And so maybe lastly in that, we also have signature clients. And 2, I would say, you know, 2 of our most recent joins in Prudential and First Horizon clients that I think are thriving on our platform. And reflect the ability that has demonstrated that improved efficiency as well as accelerated growth. So you put that all together, I think what we have is a building of our reputation in the marketplace to serve large institutions. We are more engaged now certainly than we were a year ago. Large institutions, not only with the number of institutions, but actually the size and complexity of some of those institutions continues to grow. that is probably emphasized more even on the product manufacturer side The bank market is a tried and true market as we continue you will see us continuing to talk to larger and larger banks. And maybe let's talk just about banks for a second. Much of the focus on banks is on efficiency and driving greater efficiency. And in the wealth business, that is no exception. So the conversations we are in are with larger institutions on the bank side who are looking at efficiencies and looking at ways for which they can compete and be competitive across the board and largely that includes outsourcing wealth. And so we continue to see a building in the pipeline there, and we actually now have cleared the decks for us to have the ability to have more material conversations. So feeling better about where we are there than we were certainly a year ago. Operator: Great. Thank you. Thank you. And our next question comes from the line of Bill Katz from TD Cowen. Your question please. Bill Katz: Thank you very much. Good evening, everybody. Just maybe a 2 part if I could squeeze it in. On Commonwealth, excuse me, can you let me know what the cash is as percentage of client AUA? And then, Matthew, I would be curious if you would give us an update on how things have been trending into July on both flows and client cash. Thank you. Matthew Jon Audette: Alright. Very aggressive, Bill. Operator said 1. I will do 2. Do not worry about it. Look. On Commonwealth, their cash balances have the whole time they have been with us are a little bit below ours. So we have been we are at a little above 2%. They are a little bit above 1%. So they just have much, much lower cash balances, and it and it is always been that way. With respect to how the third quarter is going so far, so for July, on the cash side, couple days remaining, but it is shaping up as you would expect in the first month of the quarter, which is primarily the impact of advisory fees. So those hit in the first month, that reduced cash by $2.8 billion Outside of that, cash balances have been flat. So if you if you put those 2 things together, July cash has decreased by only the impact of fees, and that puts cash at around $54.1 billion. On the organic growth side, similar impact Month 1 is usually the lowest month of the quarter because advisory fees hit in that in the first month. Outside of that, we are seeing organic growth continuing to pull through as we have noted on the recruiting picking up. And you put those 2 things together, that would put July organic growth in the zone of around 3%. Operator: Thank you for accommodating the 2-parter. You are welcome. Thank you. And our next question comes from the line of Michael Brown from UBS. Your question please. Mike Brown: Okay. Great. Thanks for taking my follow-up. I wanted to just follow-up on Steven's question at the beginning. And I guess as you evaluate the potential transition toward platform fees, can you clarify, should investors view that work you are doing today as primarily developing a playbook that would only be implemented if the competitive dynamics or client behavior created meaningful pressure on cash sweep economics? Is management increasingly inclined to make that shift proactively kind of regardless of whether those pressures materialize. And then if it is the latter, what gives you confidence that moving first creates value rather than a disadvantage? Particularly if competitors are slower to follow or really choose not to make a similar change at all? Richard Steinmeier: Yeah. Hey, Mike. Thanks a lot. And you know, I think Bill, look at what Mike did. He actually reentered the queue and got his second question in. So learning event for all of us. So, look, if the question is, you know, whether we are going to be a leader or a follower I think the most important thing is we actually need to get the right answer. And that is actually the work that we are doing. it is why the evaluation is so comprehensive in nature. As I mentioned before, you know, with 32 thousand advisers and 1 thousand institutions, We are a market leader. We are already in that position. And we are comfortable making decisions that lead the market if that is where things land. Got it. Thank you, Richard. Operator: Thank you. This does conclude the question and answer session of today's program. I would like to hand the program back to Richard Steinmeier for any further remarks. Richard Steinmeier: Thank you, operator, and thank you all for joining. We look forward to speaking to you again in October, and have a great night. Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day. Before you buy stock in Lpl Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lpl Financial wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. LPL Financial (LPLA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Client Assets: $2.6 trillion, up 10% from Q1. Organic Net New Assets: $23 billion, representing a 4% annualized growth rate. Adjusted EPS: Record $5.84. Adjusted Pretax Margin: Approximately 39.3%. Gross Profit: $1.618 billion, up $26 million sequentially. Commission and Advisory Fees (Net of Payout): $486 million, down $1 million from Q1. Payout Rate: 87.4%, up 22 basis points from Q1. Client Cash Revenue: $457 million, down $3 million from Q1. Client Cash Balances: $56.9 billion, down $2.2 billion. ICA Yield: 336 basis points in Q2, unchanged sequentially. Service and Fee Revenue: $209 million, down $2 million from Q1. Transaction Revenue: $83 million, up $2 million from Q1. Core G&A Expense: $519 million, down $13 million sequentially. TA Loan Amortization: $142 million, up $6 million from Q1. Promotional Expense: $79 million, up $3 million from Q1. Depreciation and Amortization: $110 million, up $4 million sequentially. Tax Rate: Approximately 26.4%. Corporate Cash: $430 million at end of Q2, down $137 million from Q1. Leverage Ratio: 1.9 times at end of Q2. Share Repurchases: $309 million in Q2, accelerated from initial plan of $125 million. Recruited Assets: $25 billion in Q2. Asset Retention: 97% for Q2 and over the last 12 months. Commonwealth Run Rate EBITDA: Approximately $435 million once fully integrated. Warning! GuruFocus has detected 4 Warning Signs with LPLA. Is LPLA fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record adjusted EPS of $5.84 and improved organic growth with $23 billion in net new assets, representing a 4% annualized growth rate. Recruiting pipeline reached record levels, with $25 billion in recruited assets in Q2, positioning for improved growth in H2. Commonwealth integration on track for Q4 onboarding, with run-rate EBITDA estimate raised to $435 million and asset retention in the mid-80s, targeting 90%. Core G&A expenses decreased sequentially and full-year guidance was lowered, reflecting ongoing efficiency gains and operating leverage. Accelerated share repurchases to $309 million in Q2 and approved a new $2.5 billion buyback authorization, demonstrating strong capital return commitment. Organic growth rate of 4% remains below the mid- to high-single-digit long-term target, with July organic growth tracking at only 3%. Client cash balances declined by $2.2 billion sequentially, and July cash decreased further by $2.8 billion due to advisory fees. Payout rate is expected to increase by 80 basis points in Q3 due to seasonality and pricing reductions on advisory platforms, pressuring margins. Elevated competitive recruiting environment persists, with market TA levels remaining high, potentially increasing acquisition costs. Pricing review for cash sweep economics remains incomplete, with no timeline for resolution, creating uncertainty for investors. Q: Can you provide an update on the outlook for organic growth in the second half of the year, and how the competitive recruiting landscape is impacting that outlook?A: Rich Steinmeier (CEO) stated that the rebound to 4% annualized growth in Q2 was driven by advisor movement returning to historical norms and increased capacity to engage with advisors as the Commonwealth recruiting and education event winds down. He expressed confidence in the ability to deliver mid- to high single-digit growth over time, citing a strengthened value proposition, continued share capture of advisors in motion, and progress in closing capability gaps. While the competitive environment remains spirited with elevated transition assistance (TA) levels, LPL remains disciplined on returns, focusing on capabilities, technology, and service as the primary drivers for advisors considering a move. Q: What is the status of the pricing review, and what feedback have you received from advisors as you explore potential changes to reduce reliance on cash economics?A: Rich Steinmeier (CEO) explained that the work is ongoing and comprehensive due to the complexity of serving 32,000 advisors, 1,000+ institutions, and 8 million end investors across various business models. The levers are clear, but any solution must work across all constituents and their operating models. He noted that the firm is taking the time to ensure any potential changes are well-considered and aligned with long-term strategy, but did not provide a specific timeline for completion. Q: Can you expand on the G&A outlook and whether the better-than-expected results reflect ongoing efficiency initiatives?A: Matt Audette (CFO) stated that the efficiency improvements are an "evergreen" effort, driven by investments in automation, efficiency, and AI. These initiatives not only reduce costs but also improve the value proposition for advisors. He confirmed that the lowered full-year 2026 core G&A guidance of $2.114 billion to $2.165 billion includes all current and expected initiatives, and that the company has consistently outperformed its own expectations on the pace of efficiency gains. Q: Can you provide more color on the new AI platform, Latitude, and how it differentiates LPL from competitors?A: Rich Steinmeier (CEO) highlighted that LPL has invested nearly $2 billion in core foundational capabilities, and Latitude is the unified tech experience tying it all together. The introduction of Cyan, an AI agent, helps operate across advisor workflows, delivering contextual real-time intelligence. High-impact use cases include identifying growth opportunities, synthesizing financial plans, and automating routine tasks like address changes. He noted that demonstrating these capabilities and the AI roadmap is a significant point of differentiation in recruiting conversations, and LPL wins head-to-head tech demos more often than a year ago. Q: Have you seen any changes in advisor behavior since implementing the pricing adjustments announced last year, and are there other opportunities to mark-to-market enhanced offerings?A: Matt Audette (CFO) confirmed that the pricing changes have played out as expected, with a net improvement of about 1 percentage point in margins. The Q1 fee increases on brokerage accounts and Q2 fees on direct mutual fund business increased service and fee revenue by about $40 million per quarter, while the Q3 reductions in advisory platform pricing will increase payout by about $20 million per quarter. He stated that the first two changes brought fees in line with market, while the third makes an already competitive platform even more so. Q: Could LPL potentially change its revenue share arrangements with asset managers to increase underlying economics on ETFs, mutual funds, and SMAs?A: Matt Audette (CFO) redirected the focus to the ongoing pricing review, stating that the current energy is on evaluating cash sweep economics. He indicated that other areas, such as asset manager revenue share arrangements, would be considered after concluding the current work, but did not provide further details. Q: What are your expectations for the adoption of subscription-based services like CFO and Marketing Solutions among Commonwealth advisors?A: Rich Steinmeier (CEO) noted that advisors who outsource more work tend to grow faster, and Commonwealth advisors are already faster-growing and more productive. He expects strong demand for LPL's solutions, particularly the liquidity and succession solution, which is more robust than what Commonwealth was building. He also highlighted that advisors adopting these solutions, including those in managed models like Strategic Wealth Services and Linsco, see accelerated growth. Q: Is there a risk that AI tools could lead to hybrid solutions that combine AI with advisors at a lower price point?A: Rich Steinmeier (CEO) presented a "glass half full" view, stating that AI will significantly enhance workflows and create capacity for advisors to serve more end investors. He noted that advisory fees have not materially declined over several decades despite innovations, and that advisors are more excited than scared about AI adoption. The automation will allow advisors to spend more time on advice delivery and strengthen their ability to go to market. Q: How should we think about the underlying pace of core G&A growth relative to a multi-year profile, and how meaningful could AI initiatives be?A: Matt Audette (CFO) stated that the opportunity is huge, and the company is balancing investments to improve the value proposition with expanding operating margins. He categorized AI benefits into three areas: directly serving advisors (e.g., Latitude, Cyan), improving internal infrastructure and back-office efficiency, and enhancing technology development (coding and builds). He believes these efforts will allow LPL to deliver a better value proposition faster than most competitors. Q: Can you explain the mechanics and rationale behind the ICA pricing change that will benefit Q3?A: Matt Audette (CFO) explained that the change is primarily driven by the Commonwealth integration. LPL previously priced cash based on household AUM, while Commonwealth priced based on actual cash balances. The shift to a cash-balance-based tiering structure aligns with independent peers and results in more cash at lower tiers, increasing the ICA yield by about 20 basis points on a run-rate basis. The change takes effect in August, with half the benefit in Q3 and the other half in Q4. Q: How would you characterize the institutional channel pipeline, and is demand for outsourcing increasing?A: Rich Steinmeier (CEO) acknowledged an intentional pause in onboarding due to the Commonwealth transition but stated that engagement in the marketplace has continued. LPL is the absolute leader in the institutional space, serving $590 billion in client assets. The pipeline is building, with more engagement from larger and more complex institutions, particularly on the bank side, where there is a strong focus on efficiency and outsourcing. He noted that For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Key Financial Results Net income was $379 million, translating to diluted earnings per share ("EPS") of $4.74, up 39% from a year ago Adjusted EPS* increased 29% year-over-year to $5.84 Key Business Results Total client assets increased 34% year-over-year to $2.6 trillion Total organic net new assets were $23 billion, representing 4% annualized growth Recruited assets(1) were $25 billion, up 35% from a year ago Total client cash balances were $57 billion, a decrease of $2 billion sequentially and an increase of $6 billion year-over-year Key Capital and Liquidity Measures Corporate cash(2) was $430 million Leverage ratio(3) was 1.91x Share repurchases were $309 million and dividends paid were $24 million Key Updates M&A: Commonwealth Financial Network ("Commonwealth"): On track to complete the conversion in the fourth quarter of 2026 Mariner Advisor Network: Closed on the acquisition of Mariner Advisor Network, an LPL branch office supporting 367† advisors who collectively manage $31 billion† of client assets Liquidity & Succession: Deployed approximately $21 million of capital to close four deals in Q2, including one external practice Core G&A: Given our performance to date, we are lowering our 2026 Core G&A* outlook range to $2,140-2,165 million, including expenses related to Commonwealth Capital Management: Share Repurchases: Resumed our share repurchase program, with $309 million repurchased during the second quarter and approximately $300 million planned for the third quarter Repurchase Authorization: On July 23, 2026, the Board approved a $2.5 billion increase to the Company's share repurchase authorization Dividend: The Company's Board of Directors declared a $0.30 per share dividend to be paid on August 28, 2026 to all stockholders of record as of August 14, 2026. SAN DIEGO, July 30, 2026 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq: LPLA) (the "Company") today announced results for its second quarter ended June 30, 2026, reporting net income of $379 million, or $4.74 per share. This compares with net income of $273 million, or $3.40 per share, in the second quarter of 2025 and net income of $356 million, or $4.43 per share, in the prior quarter. "After an outstanding start to the year, we continued our momentum in the second quarter, delivering another quarter of strong performance and results," said Rich Steinmeier, CEO. "We remain focused on our strategic priorities, and are on track to onboard Commonwealth later this year. Underscoring the exceptional work and dedication of our teams, JD Power recognized both Commonwealth and LPL as the top-ranked firms for independent advisor satisfaction. This is a reflection of the complementary cultures we're bringing together and the unparalleled value we deliver to advisors and their clients." "The team delivered another quarter of remarkable results, highlighted by record adjusted earnings per share and further progress driving improved operating leverage," said Matt Audette, President and CFO. "We achieved this while deploying capital across our entire framework, including continuing to invest in organic and inorganic growth and resuming share repurchases." Conference Call and Additional Information The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, July 30, 2026. The conference call will be accessible and available for replay at investor.lpl.com/events. Contacts Investor [email protected] Media [email protected] About LPL FinancialLPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace(4), LPL supports more than 32,000 financial advisors and the wealth management practices of approximately 1,100 financial institutions, servicing and custodying approximately $2.6 trillion in brokerage and advisory assets on behalf of approximately 8 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com. Securities and advisory services offered through LPL Financial LLC ("LPL Financial") or its affiliate LPL Enterprise, LLC ("LPL Enterprise"), both registered investment advisers and broker-dealers. Members FINRA/SIPC. Throughout this communication, the terms "financial advisors" and "advisors" are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial or LPL Enterprise. We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website. † Value approximated based on asset and holding details provided to LPL from March 31, 2026. Forward-Looking Statements This press release contains statements regarding: the Company’s retention of Commonwealth assets and Commonwealth’s future financial and operating performance; run-rate EBITDA expectations in connection with the Company’s acquisition of Commonwealth; the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Commonwealth; the Company's plans to invest to drive growth and increase efficiency while scaling its business; the Company’s recruitment pipeline and expected organic growth; the Company's future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company's ICA yield, service and fee revenue, transaction revenue, core G&A expense, interest expense and income, leverage ratio (including plans to reduce leverage), pricing and fees (including their effect on adjusted pre-tax margin), corporate cash, run-rate EBITDA, depreciation and amortization, operating leverage, pre-tax margin, transition assistance loan amortization, organic growth, payout rate, tax rate and share repurchases; and future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value. These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company's expectations and objectives as of July 30, 2026 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include: difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required; disruptions in the businesses of the Company and Commonwealth that could make it more difficult to maintain relationships with advisors and their clients; the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company; changes in general economic and financial market conditions, including retail investor sentiment; changes in interest rates and fees payable by banks participating in the Company's client cash programs, including the Company's success in negotiating agreements with current or additional counterparties; the Company's strategy and success in managing client cash program fees; fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue; effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively; whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company; changes in the growth and profitability of the Company's fee-based offerings and asset-based revenues; the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations; the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance; changes made to the Company's services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company’s gross profit streams and costs; the execution of the Company's capital management plans, including its compliance with the terms of the Company's amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company's senior unsecured notes; strategic acquisitions and investments, including pursuant to the Company's Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company’s capital management plans and liquidity; the price, availability and trading volumes of shares of the Company's common stock, which will affect the timing and size of future share repurchases by the Company, if any; the execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives; whether advisors affiliated with Commonwealth will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company; the performance of third-party service providers to which business processes have been transitioned; the Company's ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and the other factors set forth in the Company's most recent Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission. Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company's view as of any date subsequent to the date of this press release. LPL Financial Holdings Inc.Management's Statements of Operations(In thousands, except per share data)(Unaudited) Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s unaudited condensed consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures" in this release. LPL Financial Holdings Inc.Operating Metrics(Dollars in billions, except where noted)(Unaudited) Note: Totals may not foot due to rounding. Note: Totals may not foot due to rounding. Note: Totals may not foot due to rounding. Note: Totals may not foot due to rounding. (a) Unsecured borrowing capacity of $2.25 billion at LPL Holdings, Inc.(b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps. Non-GAAP Financial Measures Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company. Adjusted EPS and Adjusted net income Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles and acquisition costs, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, and acquisition costs that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release. Gross profit Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release. Core G&A Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; transition assistance loan amortization; promotional (ongoing); acquisition costs excluding interest; employee share-based compensation; and regulatory charges. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company's total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort. EBITDA and Adjusted EBITDA EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs excluding interest. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release. Adjusted pre-tax income Adjusted pre-tax income is defined as income before provision for income taxes plus amortization of other intangibles and acquisition costs. The Company presents adjusted pre-tax income because management believes that it can provide investors with useful insight into the Company's core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company's ongoing operations. Adjusted pre-tax income is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to income before provision for income taxes or any other performance measure derived in accordance with GAAP. For a reconciliation of income before provision for income taxes to adjusted pre-tax income, please see the endnote disclosures in this release. Credit Agreement EBITDA Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company's amended and restated credit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release. Endnote Disclosures (1) Represents the estimated total client assets expected to transition to the Company's primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of client assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate. (2) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company's Credit Agreement, which include LPL Financial, LPL Enterprise, LLC, The Private Trust Company, N.A., and Commonwealth Equity Services, LLC ("CES"), in excess of the capital requirements of the Company's Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries. (3) Compliance with the Leverage Ratio is only required under the Company's revolving credit facility. (4) The Company was named a Top RIA custodian (Cerulli Associates, 2025 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021. (5) Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands): (6) Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate): (7) Below is a reconciliation of client cash revenue per Management's Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company's condensed consolidated statements of income for the periods presented (in thousands): (8) Consists of revenue from the Company's sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs. (9) Below is a reconciliation of interest income, net per Management's Statements of Operations to interest income, net on the Company's condensed consolidated statements of income for the periods presented (in thousands): (10) Below is a reconciliation of other revenue per Management's Statements of Operations to other revenue on the Company's condensed consolidated statements of income for the periods presented (in thousands): (11) Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company's total expense to core G&A for the periods presented (in thousands): (12) During the fourth quarter of 2025, the Company updated its definition of Promotional (ongoing) to exclude transition assistance loan amortization. As a result, transition assistance loan amortization is now disclosed as a separate line on Management's Statements of Operations and in the Core G&A reconciliation. Prior period disclosures have been updated to reflect these changes as applicable. (13) Promotional (ongoing) includes $13.5 million, $16.9 million and $21.2 million for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the condensed consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs. (14) Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands): (15) EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in thousands): (16) Below is a reconciliation of interest expense on borrowings per Management's Statements of Operations to interest expense on borrowings on the Company's condensed consolidated statements of income for the periods presented (in thousands): (17) Adjusted pre-tax income is a non-GAAP financial measure. Please see a description of adjusted pre-tax income under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of income before provision for income taxes to adjusted pre-tax income for the periods presented (in thousands): (a) Calculated by dividing adjusted pre-tax income by gross profit. (18) Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data): Note: Totals may not foot due to rounding. (19) Consists of total assets under custody at the Company's primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to CES and Atria Wealth Solution’s introducing broker-dealer subsidiaries. (20) Assets on the Company's corporate RIA advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company's independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial. (21) Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms. (22) Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively. (23) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage. (24) Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total assets. (25) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial. (26) Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the condensed consolidated balance sheets. The following table presents purchased money market funds for the periods presented (in billions): (27) Calculated by dividing revenue for the period by the average balance during the period. (28) EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands): (29) Calculated based on the average advisor count from the current period and prior periods. (30) Calculated based on the end of period total assets divided by end of period advisor count. (31) Reflects retention of total assets, calculated by deducting quarterly annualized attrition from total assets, divided by the prior quarter total assets. (32) Capital expenditures represent cash payments for property and equipment during the period. (33) Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period. (34) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the condensed consolidated statements of income. (35) Acquisition costs and other primarily include costs related to acquisitions and costs incurred related to the integration of the strategic relationship with Prudential Advisors. (36) M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of such acquisition.

For the quarter ended June 2026, LPL Financial Holdings Inc. (LPLA) reported revenue of $5.05 billion, up 34.5% over the same period last year. EPS came in at $5.84, compared to $4.51 in the year-ago quarter. The reported revenue represents a surprise of +0.31% over the Zacks Consensus Estimate of $5.03 billion. With the consensus EPS estimate being $5.39, the EPS surprise was +8.35%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how LPL Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Advisory and Brokerage Assets - Brokerage assets: $1,014.30 billion versus $963.52 billion estimated by three analysts on average. Advisory and Brokerage Assets - Total: $2,562.70 billion versus $2,411.01 billion estimated by three analysts on average. Advisory and Brokerage Assets - Advisory assets: $1,548.40 billion versus $1,447.46 billion estimated by three analysts on average. Advisors: 32,475 versus 32,219 estimated by three analysts on average. Revenue- Commission- Total: $1.23 billion versus the four-analyst average estimate of $1.21 billion. The reported number represents a year-over-year change of +18.7%. Revenue- Service and fee: $208.88 million versus the four-analyst average estimate of $202.83 million. The reported number represents a year-over-year change of +37.6%. Revenue- Asset-based - Client cash: $443.5 million versus $463.47 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.6% change. Revenue- Asset-based- Total: $835.14 million compared to the $848.04 million average estimate based on four analysts. The reported number represents a change of +18.9% year over year. Revenue- Transaction: $83.22 million versus $88.07 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +37.5% change. Revenue- Asset-based - Other asset-based: $391.64 million versus the four-analyst average estimate of $384.57 million. The reported number represents a year-over-year change of +28.4%. Revenue- Advisory: $2.63 billion compared to the $2.64 billion average estimate based on four analysts. The reported number represents a change of +53.3% year over year. Revenue- Commission- Sales-based: $728.16 million versus $712.84 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +17.5% change. View all Key Company Metrics for LPL Financial here>>> Shares of LPL Financial have returned +15.2% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LPL Financial Holdings Inc. (LPLA) came out with quarterly earnings of $5.84 per share, beating the Zacks Consensus Estimate of $5.39 per share. This compares to earnings of $4.51 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.35%. A quarter ago, it was expected that this company would post earnings of $5.49 per share when it actually produced earnings of $5.6, delivering a surprise of +2%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. LPL Financial, which belongs to the Zacks Financial - Investment Bank industry, posted revenues of $5.05 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.31%. This compares to year-ago revenues of $3.75 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. LPL Financial shares have lost about 5.4% since the beginning of the year versus the S&P 500's gain of 6.9%. While LPL Financial has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for LPL Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.85 on $5.32 billion in revenues for the coming quarter and $23.38 on $20.71 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Bank is currently in the top 9% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Independence Realty Trust (IRT), another stock in the broader Zacks Finance sector, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This real estate investment trust is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of -3.6%. The consensus EPS estimate for the quarter has been revised 1.5% higher over the last 30 days to the current level. Independence Realty Trust's revenues are expected to be $169.18 million, up 4.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report Independence Realty Trust, Inc. (IRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research