LPL Financial Holdings Inc.
LPLAFinancial Snapshot
ticker: LPLA step: 04 generated: 2026-05-13 source: quick-research
LPL Financial Holdings Inc. (LPLA) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | ~$8.6B | $10.053B | $12.385B | +23.2% |
| Net Margin | ~9.8% | ~10.6% | ~8.6% | compressing |
| Net Income | $0.846B | $1.066B | $1.059B | -0.7% |
| EPS (diluted) | ~$10.50 | ~$13.80 | ~$14.20 | +3% |
FY2025: Revenue $16.989B (+37% YoY — boosted by Commonwealth Financial Network acquisition closing Aug 2025); net income ~$863M (5.2% net margin, down from 8.8%); margin compression driven by acquisition integration costs and higher interest expense from debt financing. Q1 2026: $2.3T in client assets, 29% EPS growth YoY. Commonwealth added ~3,000 advisors and ~$320B AUM; expected $410M run-rate EBITDA synergies.
Cash Flow & Balance Sheet
| Metric | Value |
|---|---|
| Leverage Ratio | 1.86x (target 1.5x–2.5x) |
| Credit Ratings | Baa3/BBB-/BBB (Moody's/S&P/Fitch) — investment grade |
| 2025 Tech Investment | ~$530M (up from $260M in 2021) |
| Core G&A (2025) | grew 4% (down from 15% in 2023) |
| Core G&A Guidance 2026 | $2,155–2,190M (+4.5–6%) |
LPL's balance sheet carries meaningful debt from financing the Atria and Commonwealth acquisitions. Investment-grade credit ratings across all three agencies give access to capital markets for further M&A. Operating cash flow generation is strong from the advisory fee / NII business, though leverage is elevated post-acquisitions.
Key Ratios (approximate)
- P/E: ~20–22x (trailing, on depressed margins) | Net Margin: ~5.2% (FY2025, acquisition year)
- Revenue Growth: +37% FY2025 (organic + Commonwealth) | Normalized organic: ~10–15%
- AUM/Assets: ~$1.9T (pre-Commonwealth platform); $2.3T+ post-integration (Q1 2026)
Growth Profile
LPL has grown revenue from ~$8.6B (FY2022) to $16.99B (FY2025) — nearly 2x in 3 years — primarily through organic advisor recruitment and transformative M&A (Prudential Advisors, Atria, Commonwealth). The 37% FY2025 revenue jump is largely acquisition-driven; organic growth is in the 10–15% range, driven by AUM appreciation and advisor productivity. Net margins contracted from ~10% to ~5% due to integration costs; the investment thesis requires margins recovering to 7–9% as synergies materialize ($410M EBITDA expected from Commonwealth alone). Q1 2026's 29% EPS growth suggests the recovery is beginning.
Forward Estimates
- FY2026: Revenue ~$17–18B (organic growth + full-year Commonwealth); adj. EPS ~$20–22 (29% YoY implied by Q1 run-rate)
- Core G&A: $2,155–2,190M guidance (operating leverage improving)
- AUM target: $2.5T+ as recruited advisors ramp production
- Analyst fair value estimates: ~$448–455; some bulls higher
- Key watch: Commonwealth synergy realization; NII as rates evolve; organic advisor net adds
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $LPLA.