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Jun 30
LPL Financial Q2 2025 Earnings Report
LPL Financial's second quarter 2025 earnings results were announced, showing an increase in net income and diluted EPS, alongside significant growth in total advisory and brokerage assets.
Key Takeaways
LPL Financial delivered a strong second quarter in 2025, with net income rising to $273 million and diluted EPS increasing by 5% year-over-year to $3.40. The company experienced substantial growth in total advisory and brokerage assets, which increased by 28% to $1.9 trillion, driven by both organic net new assets and successful acquisitions. Gross profit also saw a significant increase of 21% year-over-year.
Net income for Q2 2025 was $273 million, a 12% increase from Q2 2024.
Total advisory and brokerage assets grew by 28% year-over-year, reaching $1.9 trillion.
Adjusted EPS increased by 16% year-over-year to $4.51.
Gross profit rose by 21% year-over-year to $1,304 million.
LPL Financial
LPL Financial
LPL Financial Revenue by Segment
Revenue by Segment
Advisory Revenue
CapyFin.comSales-based Commissions Revenue
CapyFin.comTrailing Commissions Revenue
CapyFin.comClient Cash Revenue
CapyFin.comOther Asset-based Revenue
CapyFin.comService and Fee Revenue
CapyFin.comInterest Income, Net Revenue
CapyFin.comTransaction Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
LPL Financial is lowering its 2025 Core G&A outlook while also increasing it to include costs related to the acquisition of Commonwealth. The company expects to onboard First Horizon Bank in Q3 2025 and complete the acquisition of Commonwealth on August 1, 2025, with conversion by Q4 2026.
Positive Outlook
- Expect to onboard First Horizon Bank in Q3 2025, adding approximately $17 billion in assets.
- Completed the conversion of Atria to the LPL platform.
- Expect to close the acquisition of Commonwealth Financial Network on August 1, 2025, adding approximately $305 billion in assets.
- Lowering 2025 Core G&A outlook to $1,720-$1,750 million, excluding Commonwealth acquisition costs.
- Fitch Ratings assigned LPL a long-term issuer default rating of BBB, improving investment grade profile.
Challenges Ahead
- Core G&A outlook increased to $1,880-$1,920 million to include costs related to the acquisition of Commonwealth.
- Recruited assets were down 24% from a year ago.
- Client cash balances decreased by $2 billion sequentially.
- Organic net new assets included $4 billion of assets that off-boarded as part of a previously disclosed planned separation.
- The forward-looking statements involve risks and uncertainties that may cause actual results to differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income