LPL Financial (LPLA) investor relations material

Executive summary

• Net income for Q1 2026 was $356.4 million ($4.43 per diluted share), up 12% year-over-year, with adjusted EPS of $5.60, a 9% increase, and record adjusted pre-tax income of $613 million.

• Total client assets reached $2.3 trillion, up 30% year-over-year, with advisory assets up 42% to $1.4 trillion and a 17% CAGR since 2021.

• Achieved strong organic asset growth, record recruiting pipelines, and 98% asset retention in Q1.

• Advanced integration of Commonwealth Financial Network and announced the acquisition of Mariner Advisor Network, supporting $31 billion in client assets.

• Continued investment in technology, advisor experience, and efficiency, with a focus on integrating AI across operations.

Financial highlights

• Total revenue for Q1 2026 was $4.94 billion, up 35% year-over-year, with gross profit at $1.59 billion, up 25% year-over-year.

• Adjusted EPS was $5.60, up from $5.15 in Q1 2025, and adjusted pre-tax margin was approximately 38%.

• Leverage ratio improved to 1.86x, within the target range.

• Core G&A expense was $532 million, up 29% year-over-year.

• Advisory and commission expense was $3.29 billion, up 40% year-over-year.

Outlook and guidance

• 2026 Core G&A expense outlook lowered to $2,155–2,190 million, including Commonwealth-related expenses.

• Asset retention for the Commonwealth acquisition is expected to be approximately 90%.

• Share repurchases resumed in April 2026, with $125 million planned for Q2.

• Estimated run-rate EBITDA for Commonwealth decreased from $425 million to $410 million.

• Service and fee revenue projected to rise by $5 million in Q2 as new mutual fund fees take effect.