LPL Financial (NASDAQ:LPLA) Issues Earnings Results

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

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 Performance

LPLA opened at $356.06 on Friday. The company has a debt-to-equity ratio of 1.49, a current ratio of 2.60 and a quick ratio of 2.60. The business has a fifty day simple moving average of $365.83 and a 200 day simple moving average of $358.40. LPL Financial has a 1 year low of $262.83 and a 1 year high of $403.58. The company has a market capitalization of $28.50 billion, a PE ratio of 32.74, a price-to-earnings-growth ratio of 0.79 and a beta of 0.57.

LPL Financial Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 24th. Stockholders of record on Tuesday, March 10th will be paid a dividend of $0.30 per share. The ex-dividend date is Tuesday, March 10th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.3%. LPL Financial’s dividend payout ratio (DPR) is 11.05%.

Key Headlines Impacting LPL Financial

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

• Positive Sentiment: Q4 results beat expectations — adjusted EPS $5.23 (vs. ~$4.82 est.) and revenue $4.93B; gross profit and adjusted pre‑tax income showed meaningful year‑over‑year gains, and total advisory & brokerage assets hit ~$2.4T (record). GlobeNewswire: Q4 and Full‑Year 2025 Results
• Positive Sentiment: Commonwealth acquisition update: management expects ~90% asset retention from the deal and ~ $425M run‑rate EBITDA, which underpins medium‑term revenue/EBITDA upside as integration completes. Yahoo: Q4 2025 Earnings Call Highlights
• Positive Sentiment: Board declared a $0.30 quarterly dividend (payable March 24), signaling commitment to capital return alongside M&A activity. GlobeNewswire: Dividend Declaration
• Neutral Sentiment: Analyst coverage remains constructive overall (multiple Overweight/Buy ratings and a median price target near the low‑to‑mid $400s), which could support the stock if integration and retention track expectations. Yahoo: LPL Stock Forecasts / Analyst Notes
• Negative Sentiment: 2026 expense outlook weighed on sentiment — management raised 2026 Core G&A guidance materially when including Commonwealth-related costs (2026 Core G&A incl. Commonwealth $2,155–2,210M vs. $1,775–1,820M prior to Commonwealth), prompting investor concern over near‑term margin dilution. Investing.com: Shares Fall on 2026 Expense Outlook
• Negative Sentiment: Q4 organic net new assets decelerated (total organic NNA ~$23B in Q4) and recruited assets declined sequentially — a reminder that growth from recruiting/onboarding can be lumpy and retention execution is critical. Seeking Alpha: Q4 2025 Earnings Call Transcript
• Negative Sentiment: Insider selling and short‑term integration costs (notably Commonwealth transaction bonuses and onboarding costs) are visible in filings and third‑party summaries — these factors add near‑term dilution and governance/optics risk. Quiver / Press Summary

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on LPLA. JMP Securities set a $475.00 price target on shares of LPL Financial in a research note on Friday, October 31st. UBS Group restated a “neutral” rating and set a $406.00 price objective on shares of LPL Financial in a research note on Thursday, December 11th. Raymond James Financial upgraded LPL Financial from an “underperform” rating to a “market perform” rating in a report on Thursday, October 9th. The Goldman Sachs Group restated a “buy” rating and issued a $421.00 price target on shares of LPL Financial in a research note on Friday, October 31st. Finally, Citigroup reiterated an “outperform” rating on shares of LPL Financial in a research note on Friday, October 31st. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $428.40.

Insiders Place Their Bets

In other LPL Financial news, CEO Richard Steinmeier sold 5,058 shares of the business’s stock in a transaction dated Friday, December 5th. The shares were 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 position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Greg Gates sold 750 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $370.97, for a total transaction of $278,227.50. Following the transaction, the director directly owned 14,620 shares in the company, valued at $5,423,581.40. This represents a 4.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 7,388 shares of company stock worth $2,747,538 in the last quarter. 1.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On LPL Financial

Several institutional investors and hedge funds have recently bought and sold shares of the company. State Street Corp raised its position in LPL Financial by 5.9% during the third quarter. State Street Corp now owns 1,828,455 shares of the financial services provider’s stock valued at $608,309,000 after purchasing an additional 101,289 shares in the last quarter. Samlyn Capital LLC raised its holdings in shares of LPL Financial by 10.8% during the 3rd quarter. Samlyn Capital LLC now owns 1,346,494 shares of the financial services provider’s stock worth $447,965,000 after buying an additional 131,214 shares in the last quarter. SurgoCap Partners LP increased its holdings in LPL Financial by 12.8% in the third quarter. SurgoCap Partners LP now owns 994,278 shares of the financial services provider’s stock valued at $330,786,000 after purchasing an additional 112,873 shares during the period. Bank of America Corp DE raised its position in LPL Financial by 4.2% during the 2nd quarter. Bank of America Corp DE now owns 962,076 shares of the financial services provider’s stock worth $360,750,000 after purchasing an additional 38,386 shares during the last quarter. Finally, Raymond James Financial Inc. grew its position in shares of LPL Financial by 1.2% in the 2nd quarter. Raymond James Financial Inc. now owns 870,620 shares of the financial services provider’s stock valued at $326,456,000 after buying an additional 10,606 shares during the last quarter. Institutional investors own 95.66% of the company’s stock.

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.