LPL Financial 2025-26: $2.4T Assets, Commonwealth + Atria, EPS $5.23
FY25 revenue $16.99B (+37%); op income $2.28B (+37%); NI $863M (-19% on integration costs); EPS $10.92. Total assets $2.4T (+30% YoY incl Commonwealth). Q4 organic NNA $23B (4% annualized); FY organic 8%. Q4 adj EPS $5.23 (+23% YoY). Commonwealth integration: $425M run-rate EBITDA fully integrated (Q4 2026 onboard); Atria $155M run-rate. FY26 G&A $2.155B-$2.21B.
Key takeaways
- Total assets at record $2.4T (+30% YoY). Commonwealth acquisition added $275B; Atria onboarded; WinTrust + First Horizon recruited. Organic growth $103B / 8% FY25 — full year organic in line with target.
- Q4 adj EPS $5.23 (+23% YoY). Adjusted pretax margin ~36%. Gross profit $1.542B. Q4 was the highest quarterly EPS print in LPLA history. Operating leverage at scale + Commonwealth integration progress.
- Commonwealth integration on track. ~3,000 advisers + staff onboarded. 90% retention target with 80% of assets signed. Run-rate EBITDA $425M expected once fully integrated (Q4 2026). Pre-integration: ~$120M run-rate at close.
- FY26 G&A $2.155-$2.21B (incl Commonwealth full-year). Including full-year impact of Commonwealth expenses; midpoint implies +5-7% G&A growth on ~$2.15B baseline. Operating leverage continues.
- Buyback paused post-Commonwealth. Leverage at midpoint of target range. May resume later 2025/2026 as leverage normalizes — capital returned to growth + integration.
Business
LPL Financial Holdings is the largest US independent broker-dealer + RIA platform. Three revenue streams + strategic affiliation models:
- Commission + Advisory Fees (~50%). Advisor compensation. Q4 commission advisory fees net of payout $363M. Driven by AUM levels + activity.
- Client Cash Revenue (~25%). ICA (Insured Cash Account) yield Q4 expected 345bp. $408M Q1 (declining sequentially as rate cycle plays out).
- Service + Fee + Transaction Revenue (~15%). Higher tenant insurance + management fees. $145M Q1 service & fee revenue.
- Affiliation models: Traditional Independent (advisor as IC), Strategic Wealth, Independent Employee, Enhanced RIA, Bank/Credit Union channel.
- Bridge Loan + Other (~10%). Lending + funding programs.
Strategic moves FY25:
- Commonwealth Financial Network acquired (~3,000 advisers, $275B AUM)
- Atria Wealth Solutions onboarded (run-rate EBITDA $155M)
- WinTrust Financial onboarded ($16B+ Q1)
- First Horizon onboarded
- $2B share buyback authorization (paused post-Commonwealth)
- Leverage at midpoint of target post-Commonwealth (2.25x post-deal target)
- Misaligned OSJ assets offboarded Q3
- Investment Center acquired earlier
FY25 financial performance
| Metric (FY) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue ($B) | 8.60 | 10.05 | 12.39 | 16.99 |
| Revenue YoY | n/a | +17% | +23% | +37% |
| Op income ($B) | 1.24 | 1.63 | 1.67 | 2.28 |
| Op margin | 14.4% | 16.2% | 13.5% | 13.5% |
| Net income ($B) | 0.85 | 1.07 | 1.06 | 0.86 |
| Diluted EPS ($) | 10.40 | 13.69 | 14.03 | 10.92 |
| Adj EPS ($) | n/a | n/a | ~16.5 | ~$20+ |
| FCF ($B) | 1.64 | 0.11 | -0.28 | -0.99 |
| Capex ($M) | -307 | -403 | -563 | -570 |
| Total debt ($B) | 2.95 | 3.96 | 5.75 | 7.26 |
| Dividends ($M) | -80 | -92 | -90 | -94 |
| Buyback ($M) | -325 | -1,100 | -170 | -133 |
The earnings progression: revenue 4-yr CAGR ~25%; op income +84%; reported EPS $10.92 reflects Commonwealth integration costs masking adj earnings. FCF -$993M reflects acquisition + integration funding.
Total debt $7.26B (+26% YoY) reflects Commonwealth $5B+ deal financing.
Capital allocation
- Capex: $-570M FY25 (3.4% of revenue, +1% YoY).
- Dividends: $-94M FY25 (+5% YoY).
- Buybacks: $-133M FY25 (vs $-170M FY24); paused post-Commonwealth.
- M&A: Commonwealth ($275B AUM); Atria; Investment Center.
- Debt: $7.26B (+$1.5B for Commonwealth funding).
- FCF: -$993M (vs -$285M FY24, -$3B working capital absorption).
FY26 outlook (per Q4 2025 call, 2026-01-29)
| FY26 framework | Detail |
|---|---|
| Core G&A | $2.155B to $2.21B |
| Q4 ICA yield | ~345bp |
| Service & fee revenue | Roughly flat sequentially |
| Transaction revenue | ~$70M Q4 |
| Commonwealth onboarding | Q4 2026 |
| Commonwealth run-rate EBITDA | $425M (fully integrated) |
| Atria run-rate EBITDA | $155M |
| Monetization initiatives | +1pp adj pretax margin FY26 |
| Buyback | Paused; may resume later |
| Leverage | At midpoint of target range |
The fully-integrated $425M Commonwealth run-rate EBITDA is the structural earnings step-up. Onboarding completes Q4 2026; until then, $120M run-rate at close.
Key risks
- Commonwealth integration. $425M run-rate EBITDA depends on adviser retention + capability build; 90% retention target.
- Market uncertainty. Asset levels affect AUM-based fees; equity market volatility.
- Adviser competitive market. Recruitment competition; transition assistance environment.
- ICA yield decline. Q4 ICA yield 345bp vs Q3 levels declining as rate cycle normalizes; client cash revenue compression.
- OSJ misalignment. Q3 saw misaligned OSJ assets offboarding; recurring risk in advisor-aligned model.
- Pricing initiatives. FY26 monetization +1pp pretax margin depends on advisor acceptance + competitive response.
Bottom line
LPLA FY25 is the scale-up + transformation year: total assets $2.4T (+30%), Q4 adj EPS $5.23 record, Commonwealth integration ($275B AUM), Atria + Investment Center + WinTrust + First Horizon all onboarded. FY26 is the integration completion year — Commonwealth run-rate $425M EBITDA + Atria $155M = $580M structural EBITDA addition. Risks are integration + market + ICA yield + adviser competition. Quality wealth management aggregator mid-execution / multi-year compounding cycle.
Citations
- LPL Financial Holdings Inc. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- LPLA Q4 2025 earnings call, 2026-01-29 — total assets $2.4T; FY organic 8%; Q4 adj EPS $5.23 (+23%); Commonwealth $425M run-rate; FY26 G&A $2.155-$2.21B; buyback paused.
- LPLA Q3 2025 earnings call, 2025-10-30 — Q3 organic NNA $33B (7% annualized); Commonwealth $275B added; ~3,000 advisers / 90% retention; Q3 adj EPS $5.20 (+25%); monetization +1pp FY26.
- LPLA Q2 2025 earnings call, 2025-07-31 — total assets $1.9T; Q2 adj EPS $4.51 / 38% margin; Commonwealth deal closes; Atria conversion complete.
- LPLA Q1 2025 earnings call, 2025-05-08 — record Q1 NNA $71B (16% annualized); WinTrust $16B; Commonwealth signed; record adj EPS $5.15.
- Internal financial_statements view (consolidated annual + cash flow + capital structure).