# LPL Financial Holdings Inc. (LPLA) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-18  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/LPLA/thesis · /stocks/LPLA/memo

## Financial 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/LPLA/fundamental

## Navigation

- Overview: /stocks/LPLA
- Financials (this page): /stocks/LPLA/financials
- Thesis: /stocks/LPLA/thesis
- Investment Memo: /stocks/LPLA/memo
- Coverage universe: /stocks