01—Abstract
Summary
Summary of the 10-K filed February 23, 2026. Cited figures are marked; the original filing is the authoritative source.
LPL Financial Holdings Inc. reported 2025 net income of $863.0 milliona, or $10.92 per diluted share, down from $1,058.6 million, or $14.03 per diluted share, in 2024.
Total revenue rose 37% to $16.99 billionb from $12.39 billion, driven by the August 1, 2025 acquisition of Commonwealth Financial Network, which the Company paid for in cash of approximately $2.7 billion at closing. Total advisory and brokerage assets reached $2.4 trillion at December 31, 2025, versus $1.7 trillion a year earlier, with total net new assets of $431.5 billion. Adjusted EPS, a non-GAAP measure, was $20.09 compared with $16.51.
The decline in GAAP net income reflected $740.4 millionc of acquisition costs, including $419.0 million recorded at the Commonwealth closing. Balance sheet and capital activity were significant in 2025. Corporate debt and other borrowings were $7.26 billion at year-end, against $5.49 billion a year earlier, after several senior notes issuances.
The Company completed a public equity offering of approximately 5.4 million shares at $320.00d per share, with proceeds of about $1.7 billion used to fund the Commonwealth acquisition. Share repurchases were paused in early 2025 and totaled $100.0 million for the year, with $630.0 million remaining under the authorization. The Company's leverage ratio was 1.95 against a covenant maximum of 4.0, and the Board declared a $0.30 quarterly dividend payable March 24, 2026.
Regulatory and operational items include an SEC notice that it had concluded an investigation into the Company's cash management program for corporate advisory accounts and did not intend to recommend enforcement action, announced January 23, 2026. Putative class action lawsuits related to cash sweep programs filed in July 2024 remain pending, and the Company intends to defend them vigorously.
Management excluded Commonwealth from its internal control assessment, noting it represented approximately 14% of total assets and 7% of total revenues. The Company also expects to complete the conversion of Commonwealth's assets to its platform in the fourth quarter of 2026.
02—Key points
Key Highlights
- Net income of $863.0 million ($10.92 diluted EPS) for 2025, down from $1,058.6 million ($14.03) in 2024; total revenue rose 37% to $16.99 billion.
- Total advisory and brokerage assets of $2.4 trillion at December 31, 2025, up from $1.7 trillion; net new assets of $431.5 billion, versus $235.6 billion in 2024.
- Adjusted EPS (non-GAAP) of $20.09 versus $16.51; gross profit (non-GAAP) of $5.6 billion, up 24%; Adjusted EBITDA (non-GAAP) of $2,914.9 million versus $2,224.4 million.
- Acquisition of Commonwealth Financial Network closed August 1, 2025 for approximately $2.7 billion in cash funded at close; acquisition costs were $740.4 million for the year.
- Total corporate debt and other borrowings rose to $7.26 billion from $5.49 billion; leverage ratio of 1.95 versus a covenant maximum of 4.0, and interest coverage of 9.16 versus a minimum of 3.0.
- SEC concluded its investigation into the cash management program for corporate advisory accounts on January 23, 2026 and does not intend to recommend enforcement action; cash sweep class actions from July 2024 remain pending.
- Quarterly dividend of $0.30 per share declared and payable March 24, 2026; share repurchases paused in early 2025 and expected to be evaluated for resumption, with $630.0 million remaining under the authorization.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 23, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $16.99B$12.39B | +37.2% |
| Operating Expenses | $15.84B$10.99B | +44.1% |
| Interest Expense | $403.41M$274.18M | +47.1% |
| Net Income | $863.02M$1.06B | −18.5% |
| EPS (Basic) | $10.97$14.17 | −22.6% |
| EPS (Diluted) | $10.92$14.03 | −22.2% |
| Shares Outstanding (Basic) | 78.68M74.71M | +5.3% |
| Shares Outstanding (Diluted) | 79.06M75.43M | +4.8% |
05—Questions
Frequently Asked Questions
How did LPL's profitability change in 2025?
Net income fell to $863.0 million, or $10.92 per diluted share, from $1,058.6 million, or $14.03, in 2024, even though total revenue rose 37% to $16.99 billion. The filing attributes the decline mainly to acquisition-related costs, including $740.4 million of acquisition costs, with $419.0 million recorded at the Commonwealth closing. On a non-GAAP basis, adjusted EPS rose to $20.09 from $16.51.
What drove the growth in assets and revenue?
Total advisory and brokerage assets increased to $2.4 trillion from $1.7 trillion, and net new assets were $431.5 billion, compared with $235.6 billion in 2024. The filing notes that advisory revenue increased primarily due to Commonwealth assets and related revenue, higher advisory asset balances and market impacts. Sales-based commission revenue rose 50%, driven mainly by increased annuity sales with Prudential.
How is LPL funding its growth and balance sheet?
The Company completed debt offerings of $2.75 billion in senior unsecured notes during early 2025 and a public equity offering of approximately 5.4 million shares at $320.00 per share, with proceeds of about $1.7 billion used to fund the Commonwealth acquisition. Total corporate debt and other borrowings were $7.26 billion at year-end, and the Company was in compliance with its Credit Agreement covenants.
What regulatory matters should investors be aware of?
On January 23, 2026, the SEC informed the Company that it had concluded its investigation into certain elements of its cash management program for corporate advisory accounts and did not intend to recommend an enforcement action. Putative class action lawsuits filed in July 2024 alleging violations in connection with cash sweep programs remain pending, and the Company intends to defend them vigorously.
Will shareholders continue to receive dividends and buybacks?
The Board declared a quarterly cash dividend of $0.30 per share payable March 24, 2026. The Company repurchased $100.0 million of shares in 2025 after pausing repurchases in early 2025 in connection with Commonwealth, and it expects to evaluate resuming repurchases now that the transaction has closed. Future dividends and repurchases remain subject to Board discretion and Credit Agreement limits, with $630.0 million remaining under the existing authorization.
06—Continue