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Dec 31, 2024
LPL Financial Q4 2024 Earnings Report
LPL Financial's Q4 2024 results were announced, featuring increased net income, EPS, and adjusted EPS compared to the previous year, driven by growth in advisory and brokerage assets and strategic acquisitions.
Key Takeaways
LPL Financial reported a strong fourth quarter in 2024, with net income reaching $271 million and diluted EPS at $3.59, a 26% increase year-over-year. Adjusted EPS also rose by 21% to $4.25. The company's total advisory and brokerage assets grew to $1.7 trillion, and it achieved significant organic net new assets of $68 billion. The company's advisor count increased substantially, reflecting the successful onboarding of advisors from Atria and Prudential.
Net income was $271 million, with diluted EPS of $3.59, up 26% year-over-year.
Adjusted EPS increased 21% year-over-year to $4.25.
Total advisory and brokerage assets increased 29% year-over-year to $1.7 trillion.
Total organic net new assets were $68 billion, representing 17% annualized growth.
LPL Financial
LPL Financial
LPL Financial Revenue by Segment
Revenue by Segment
Advisory Revenue
CapyFin.comClient Cash Revenue
CapyFin.comOther Asset-based Revenue
CapyFin.comService and Fee Revenue
CapyFin.comInterest Income, Net Revenue
CapyFin.comTransaction Revenue
CapyFin.com Forward Guidance
LPL Financial is slowing the growth of Core G&A* as ongoing investments to scale business are driving greater efficiencies. Our 2025 Core G&A* outlook range prior to Prudential and Atria is 6% to 8% year-over-year growth, or $1,560 million to $1,600 million. Including expenses related to Prudential and Atria, our 2025 Core G&A* outlook range is $1,730 million to $1,780 million
Positive Outlook
- Business momentum
- Financial strength
- Expanding leadership across the advisor-mediated marketplace
- Delivering long-term shareholder value
- Opportunities to continue to drive growth
Challenges Ahead
- Difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors
- Disruptions in the businesses of the Company that could make it more difficult to maintain relationships with advisors and their clients
- Changes in general economic and financial market conditions, including retail investor sentiment
- Effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions
- The Company's ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks
Revenue & Expenses
Visualization of income flow from segment revenue to net income