Earnings

LPL Financial Earns $357 Million, Reversing A Year-Ago Loss, And Narrows Its Cost Outlook

Adjusted earnings per share rose 15% to $5.97, and Commonwealth asset retention is now expected at about 83%.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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LPL Financial Earns $357 Million, Reversing A Year-Ago Loss, And Narrows Its Cost Outlook

LPL Financial, which provides brokerage, advisory and custody services to independent financial advisors, earned $357 million in the third quarter, or $4.52 per diluted share, against a $30 million loss, or $0.37 per share, a year earlier. The company also narrowed its 2026 outlook for core overhead spending, with the Commonwealth Financial Network conversion on track to finish in the fourth quarter.

Profit swing and adjusted gains

The year-earlier loss came in a quarter that carried acquisition costs of $538 million, including $419.0 million booked at the Commonwealth closing. This quarter's acquisition costs were $83 million. Net income was down from $379 million, or $4.74 per share, in the second quarter, the company reported.

Adjusted earnings per share rose 15% from a year ago to $5.97. Gross profit climbed 12% to $1,662 million, and adjusted pre-tax income rose 13% to $641 million. Total revenue was $5,344 million, up 17%.

CFO Matt Audette called the quarter one of "record adjusted earnings per share."

Costs, Commonwealth and capital

Core G&A, the company's measure of overhead it can control, rose 11% to $532 million. LPL narrowed its 2026 core G&A range to $2,140-2,160 million, including Commonwealth-related expenses.

Commonwealth asset retention is now expected to be about 83%, and estimated run-rate EBITDA is expected at $415 million. LPL also put about $20 million of capital into three deals under its Liquidity & Succession program.

The company bought back $301 million of stock and paid $24 million in dividends. Corporate cash was $563 million, and the leverage ratio was 1.93x.

Advisory mix up, recruiting down

Total client assets rose 11% to $2.6 trillion, with advisory assets up 16% to $1.6 trillion. Advisory assets made up 60.9% of the total, up from 58.2% a year ago.

Organic net new assets were $29 billion, or 5% annualized growth. Recruited assets were $24 billion, down 26% from a year ago, and $81 billion over the trailing twelve months.

CEO Rich Steinmeier said the company began rolling out its AI agent, Cyan, to advisors.

The board declared a $0.30 per share dividend, payable November 30 to holders of record on November 12.

Sources

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