01—Abstract
Summary
Summary of the 10-Q filed November 3, 2025. Cited figures are marked; the original filing is the authoritative source.
LPL Financial Holdings Inc. reported a net loss of $29.5 milliona, or $0.37 per diluted share, for the third quarter of 2025, compared with net income of $255.3 million, or $3.39 per diluted share, in the third quarter of 2024.
The loss was driven by $419.0 millionb of acquisition-related expenses incurred at the August 1, 2025 closing of Commonwealth Financial Network, for which the company paid approximately $2.7 billion in cash. Excluding these items, adjusted net income was $418.2 million and adjusted EPS was $5.20, compared with $313.4 million and $4.16 a year earlier. Total revenue rose to $4.55 billion from $3.11 billion, and total advisory and brokerage assets reached $2.3 trillion at September 30, 2025, up from $1.6 trillion a year earlier.
The quarter's asset growth was strong. Total net new assets were $307.7 billionc for the three months ended September 30, 2025, compared with $27.5 billion a year earlier, and included Commonwealth's assets transitioning to the platform. Advisory revenue increased 60% in the quarter and asset-based revenue increased 25%.
Expenses rose sharply, with total expense up 66% to $4.59 billiond, largely due to acquisition costs. The leverage ratio rose to 2.04 from 1.23 at June 30, 2025, after debt issuance, and the company remained in compliance with its Credit Agreement covenants. Balance sheet changes were significant.
Total assets grew to $18.03 billion from $13.32 billion at December 31, 2024, and corporate debt and other borrowings reached $7.52 billion. Stockholders' equity increased to $5.04 billion from $2.93 billion, reflecting an April 2025 equity offering of about $1.7 billion. The company paused share repurchases in anticipation of the Commonwealth deal and said it expects to evaluate resuming them, and its board declared a $0.30 per share dividend payable December 1, 2025.
02—Key points
Key Highlights
- Q3 2025 net loss of $29.5 million, or $(0.37) per diluted share, versus net income of $255.3 million, or $3.39 per diluted share, in Q3 2024, driven by $419.0 million of acquisition-related expenses at the Commonwealth closing.
- Adjusted EPS was $5.20 for Q3 2025, compared with $4.16 in Q3 2024; adjusted net income was $418.2 million versus $313.4 million.
- Total advisory and brokerage assets were $2.3 trillion at September 30, 2025, compared with $1.6 trillion a year earlier; total net new assets were $307.7 billion in the quarter versus $27.5 billion in Q3 2024.
- Total revenue was $4.55 billion for Q3 2025, up 46% from $3.11 billion, and total expense rose 66% to $4.59 billion.
- The Commonwealth Financial Network acquisition closed August 1, 2025 for approximately $2.7 billion in cash, with asset conversion expected in the fourth quarter of 2026.
- Leverage ratio increased to 2.04 at September 30, 2025 from 1.23 at June 30, 2025, and the company was in compliance with its Credit Agreement covenants, with an Interest Coverage ratio of 9.59 against a 3.0 minimum.
- Share repurchases were paused in anticipation of the Commonwealth acquisition; $630.0 million remained under the repurchase program at September 30, 2025, and the company expects to evaluate resuming repurchases.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 3, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $4.55B$3.11B | +46.4% |
| Operating Expenses | $4.59B$2.76B | +66.1% |
| Interest Expense | $106.30M$67.78M | +56.8% |
| Net Income | -$29.52M$255.30M | −111.6% |
| EPS (Basic) | $-0.37$3.41 | −110.9% |
| EPS (Diluted) | $-0.37$3.39 | −110.9% |
| Shares Outstanding (Basic) | 80.02M74.78M | +7.0% |
| Shares Outstanding (Diluted) | 80.36M75.41M | +6.6% |
05—Questions
Frequently Asked Questions
Why did LPL Financial report a net loss in the third quarter of 2025?
The net loss of $29.5 million resulted from $419.0 million of acquisition-related expenses incurred at the closing of Commonwealth Financial Network on August 1, 2025. These costs primarily included $228.4 million of transaction bonuses and equity award acceleration, recorded in compensation and benefits, and $190.1 million of contract termination fees, recorded in occupancy and equipment. Excluding these items, adjusted net income was $418.2 million.
How did client asset levels change?
Total advisory and brokerage assets served reached $2.3 trillion at September 30, 2025, compared with $1.6 trillion at September 30, 2024. Advisory assets were $1.3 trillion, or 58% of the total, and brokerage assets were $967.7 billion. Total net new assets were $307.7 billion for the quarter, compared with $27.5 billion in the prior-year quarter, with organic net new assets of $32.7 billion.
How did the Commonwealth acquisition affect the balance sheet and leverage?
The acquisition was financed with corporate cash, proceeds from April 2025 debt and equity issuances, and borrowings under the parent revolving credit facility. Corporate debt and other borrowings rose to $7.52 billion at September 30, 2025 from $5.49 billion at December 31, 2024. Credit Agreement net debt was $6.99 billion, and the leverage ratio was 2.04, below the covenant maximum of 4.0.
What are the company's capital return plans?
The company paid $24.0 million in dividends in the third quarter and declared a $0.30 per share dividend payable December 1, 2025 to holders of record on November 13, 2025. It repurchased 289,371 shares for $100.0 million in the first nine months of 2025 and had $630.0 million remaining under its repurchase program, but paused repurchases ahead of the Commonwealth closing and expects to evaluate resuming them.
06—Continue