LPL Financial Q4 2024 Earnings Report
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
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