LPL Financial (NASDAQ:LPLA) Releases Quarterly Earnings Results, Beats Estimates By $0.41 EPS

LPL Financial (NASDAQ:LPLA) posted its quarterly earnings results on Thursday. The financial services provider reported $5.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.82 by $0.41, FiscalAI reports. The business had revenue of $4.93 billion during the quarter, compared to analysts’ expectations of $4.90 billion. LPL Financial had a net margin of 5.35% and a return on equity of 36.80%.

Here are the key takeaways from LPL Financial’s conference call:

• Record profitability: Q4 adjusted EPS was a record $5.23 (FY adjusted EPS $20.09) and adjusted pre-tax margin ~36%, driven by organic growth and expense discipline.
• Strong asset growth and strategic deals: Total client assets reached a record $2.4 trillion with $23 billion of organic net new assets in Q4 and the onboarding/closing of multiple deals, including the transformative Commonwealth acquisition.
• Commonwealth integration and retention risk: LPL reaffirmed a target of roughly 90% asset retention and ~ $425 million run-rate EBITDA once integrated, but retention remains in the low-80% range by signed advisors and execution/timing uncertainty remains.
• Higher near-term operating costs: 2026 Core G&A is guided to $2.155B–$2.21B (including ~$300–$390M Commonwealth impact) and TA loan amortization increased, pressuring near-term expense levels and delaying buybacks until integration progress is clearer.
• Interest-rate pressure on cash yields: Client cash balances rose to $61 billion but ICA yield fell to 341 bps (down ~10 bps in Q4) and management expects additional yield pressure from rate cuts to lower ICA yield further in Q1.

LPL Financial Stock Down 1.1%

Shares of LPL Financial stock opened at $362.71 on Friday. The company has a current ratio of 2.60, a quick ratio of 2.60 and a debt-to-equity ratio of 1.49. LPL Financial has a 12-month low of $262.83 and a 12-month high of $403.58. The company has a market cap of $29.03 billion, a P/E ratio of 33.40, a PEG ratio of 0.79 and a beta of 0.57. The company’s fifty day simple moving average is $365.83 and its two-hundred day simple moving average is $358.40.

LPL Financial News Roundup

Here are the key news stories impacting LPL Financial this week:

• Positive Sentiment: Q4 adjusted EPS and revenue beat expectations; adjusted EPS rose 23% year?over?year to $5.23 (beat consensus), gross profit up ~26% and management highlighted record client assets — supports higher valuation on recurring fee growth. GlobeNewswire: Q4 & FY2025 Results
• Positive Sentiment: Record advisory & brokerage assets of ~$2.4T (advisory assets +46% y/y) and strong full?year organic net new assets ($147B) bolster fee?based revenue runway and long?term scale economics. Quiver: Q4 Results Summary
• Positive Sentiment: Board declared a $0.30/share dividend (payable March 24, 2026), a modest direct return of capital that may support investor sentiment. Dividend detail
• Neutral Sentiment: Large M&A program (Commonwealth, Atria, others) is on track with management expecting ~90% retention and meaningful run?rate EBITDA from Commonwealth, but benefits realize over multiple quarters — outcome is execution?dependent. Earnings call transcript
• Negative Sentiment: GAAP net income for FY2025 declined ~22% y/y and Q4 showed large acquisition and integration costs; management raised 2026 Core G&A guidance when including Commonwealth — investors may worry about near?term margin pressure. GlobeNewswire: Expense & guidance details
• Negative Sentiment: Quarterly organic net new assets and recruited assets slowed materially vs prior year (Q4 organic NNA much lower than Q4 2024; recruited assets dropped), which could signal advisor recruiting/retention headwinds that weigh on future fee growth. Quiver: Net new assets detail
• Negative Sentiment: Notable insider selling activity and sizable acquisition?related cash outlays/one?time costs increase execution and governance scrutiny; could pressure sentiment if repurchases remain paused. Quiver: Insider & capital notes

Insider Activity

In related news, CEO Richard Steinmeier sold 5,058 shares of LPL Financial stock in a transaction on Friday, December 5th. The stock was sold at an average price of $370.99, for a total value of $1,876,467.42. Following the completion of the sale, the chief executive officer owned 9,326 shares of the company’s stock, valued at $3,459,852.74. The trade was a 35.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Greg Gates sold 1,500 shares of the firm’s stock in a transaction dated Wednesday, November 5th. The stock was sold at an average price of $376.43, for a total value of $564,645.00. Following the completion of the transaction, the director directly owned 15,370 shares in the company, valued at $5,785,729.10. This trade represents a 8.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 7,388 shares of company stock worth $2,747,538 over the last three months. 1.30% of the stock is currently owned by corporate insiders.

Institutional Trading of LPL Financial

A number of large investors have recently made changes to their positions in the stock. Osterweis Capital Management Inc. acquired a new stake in shares of LPL Financial during the 2nd quarter valued at about $26,000. Graney & King LLC increased its stake in LPL Financial by 49.5% during the 2nd quarter. Graney & King LLC now owns 139 shares of the financial services provider’s stock worth $52,000 after buying an additional 46 shares in the last quarter. Ossiam purchased a new position in LPL Financial in the 2nd quarter valued at $99,000. Acadian Asset Management LLC purchased a new stake in shares of LPL Financial during the first quarter worth $121,000. Finally, Keystone Financial Group acquired a new stake in LPL Financial in the 3rd quarter valued at about $135,000. 95.66% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have recently commented on the company. The Goldman Sachs Group restated a “buy” rating and set a $421.00 target price on shares of LPL Financial in a research note on Friday, October 31st. Barclays lowered their target price on shares of LPL Financial from $453.00 to $444.00 and set an “overweight” rating on the stock in a report on Thursday, January 8th. Wolfe Research set a $486.00 price target on LPL Financial in a report on Wednesday, January 7th. Morgan Stanley cut their price objective on shares of LPL Financial from $462.00 to $447.00 and set an “overweight” rating for the company in a research report on Monday, December 22nd. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of LPL Financial in a research report on Friday, October 31st. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $429.07.

About LPL Financial

LPL Financial (NASDAQ: LPLA) is a U.S.-focused financial services firm that provides brokerage, custodial and advisory platforms to independent financial advisors, registered investment advisers and institutions. Operating primarily as an independent broker-dealer and custodian, the company supports a network of advisors with the operational, compliance and clearing infrastructure needed to manage client accounts and deliver investment advice outside of traditional wirehouse models.

The firm’s product and service offerings include trade execution and clearing, custody services, retirement plan services, model portfolio and advisory platforms, wealth management technology, investment research and product access across equities, fixed income, mutual funds, exchange-traded funds and insurance and annuity solutions.