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Sep 30
LPL Financial Q3 2025 Earnings Report
LPL Financial reported a net loss in Q3 2025, primarily due to significant acquisition costs, despite strong growth in advisory and brokerage assets and adjusted EPS.
Key Takeaways
LPL Financial experienced a net loss of $30 million in the third quarter of 2025, largely driven by $419 million in one-time acquisition costs related to the Commonwealth Financial Network acquisition. However, the company demonstrated robust business growth with total advisory and brokerage assets increasing by 45% year-over-year to $2.3 trillion and adjusted EPS rising 25% year-over-year to $5.20. Organic net new assets also showed healthy annualized growth of 7%.
Net loss of $30 million, or $0.37 diluted EPS, primarily due to $419 million in acquisition costs from the Commonwealth acquisition.
Adjusted EPS increased 25% year-over-year to $5.20, indicating strong underlying operational performance.
Total advisory and brokerage assets grew 45% year-over-year to $2.3 trillion, with advisory assets up 51% to $1.3 trillion.
Organic net new assets were $33 billion, representing a 7% annualized growth rate, demonstrating continued client and advisor attraction.
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.comTransaction Revenue
CapyFin.comInterest Income, Net Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
LPL Financial is lowering its 2025 Core G&A outlook, reflecting strong performance, and remains focused on strategic acquisitions and improving advisor efficacy. The company anticipates completing the Commonwealth conversion in Q4 2026 and is tracking towards a 90% retention target for Commonwealth advisors.
Positive Outlook
- Lowering 2025 Core G&A outlook to $1,860-1,880 million, indicating improved cost management.
- Tracking towards a 90% retention target for Commonwealth advisors, with nearly 80% of assets signed to-date.
- Estimated run-rate EBITDA for Atria acquisition increased from $150 million to $155 million.
- Estimated run-rate EBITDA for Commonwealth acquisition increased from $415 million to $425 million.
- Continued focus on improving advisors' efficacy in the market and streamlining pricing to enhance competitiveness.
Challenges Ahead
- No specific negative forward guidance was explicitly stated in the provided text.
- Potential for difficulties and delays in onboarding assets of acquired or recruited advisors.
- Risks associated with changes in general economic and financial market conditions.
- Uncertainty regarding the impact of future legislation, regulation, and regulatory actions.
- Fluctuations in levels of advisory and brokerage assets could affect future revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income