01—Abstract
Summary
Summary of the 10-Q filed May 4, 2026. Cited figures are marked; the original filing is the authoritative source.
LPL Financial Holdings Inc. reported net income of $356.4 milliona, or $4.43 per diluted share, for the first quarter of 2026, compared with $318.6 million, or $4.24 per diluted share, in the first quarter of 2025.
Total revenue rose to $4.94 billionb from $3.67 billion, and total expense rose to $4.45 billion from $3.25 billion. Gross profit, a non-GAAP measure, was $1.6 billion, up 25% from $1.3 billion. Adjusted EPS was $5.60 versus $5.15 a year earlier.
Total advisory and brokerage assets served were $2.3 trillionc at March 31, 2026, up from $1.8 trillion a year earlier. Total net new assets were $21.4 billion for the quarter, down from $78.8 billion in the prior-year period, with a net outflow of $4.4 billion in brokerage assets offsetting $25.8 billion of net new advisory assets. The filing attributes the growth in advisory revenue primarily to the Commonwealth acquisition, which was completed August 1, 2025, with Commonwealth assets expected to transition to the Company's platform in the fourth quarter of 2026.
At March 31, 2026, corporate debt and other borrowings, net, were $7.18 billiond and the Credit Agreement leverage ratio was 1.86, against a maximum covenant of 4.0. The Company repurchased no shares in the first quarter but resumed repurchases in April 2026, with $630.0 million remaining under its program at quarter-end, and declared a $0.30 per share dividend payable June 4, 2026.
02—Key points
Key Highlights
- Net income was $356.4 million, or $4.43 per diluted share, versus $318.6 million, or $4.24 per diluted share, in Q1 2025.
- Total revenue was $4.94 billion versus $3.67 billion a year earlier; advisory revenue rose to $2.62 billion from $1.69 billion, which the filing attributes primarily to the Commonwealth acquisition.
- Total advisory and brokerage assets were $2.3 trillion at March 31, 2026, versus $1.8 trillion a year earlier; total net new assets fell to $21.4 billion from $78.8 billion.
- Brokerage assets had net outflows of $4.4 billion in the quarter, compared with net inflows of $41.2 billion in Q1 2025.
- Non-GAAP adjusted EPS was $5.60 versus $5.15, and gross profit was $1.59 billion versus $1.27 billion.
- Leverage ratio was 1.86 at March 31, 2026, below the 4.0 covenant maximum; Corporate Cash was $567.3 million.
- Share repurchases resumed in April 2026, with about $67.7 million repurchased from April 1 to May 1, 2026, and a $0.30 quarterly dividend declared for payment June 4, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 4, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.94B$3.67B | +34.6% |
| Operating Expenses | $4.45B$3.25B | +36.9% |
| Interest Expense | $100.29M$85.86M | +16.8% |
| Net Income | $356.40M$318.57M | +11.9% |
| EPS (Basic) | $4.45$4.27 | +4.2% |
| EPS (Diluted) | $4.43$4.24 | +4.5% |
| Shares Outstanding (Basic) | 80.11M74.60M | +7.4% |
| Shares Outstanding (Diluted) | 80.45M75.11M | +7.1% |
05—Questions
Frequently Asked Questions
How did LPL's profitability change in the first quarter of 2026?
Net income rose 12% to $356.4 million from $318.6 million, and diluted EPS rose to $4.43 from $4.24. Total expense grew 37% to $4.45 billion, driven largely by advisory and commission expense, which rose to $3.29 billion from $2.35 billion.
What drove the growth in revenue?
Advisory revenue increased to $2.62 billion from $1.69 billion, which the filing attributes primarily to higher advisory asset balances and related revenue from the Commonwealth acquisition. Asset-based revenue also rose to $820.8 million from $695.2 million, mainly from higher client cash balances and other asset-based revenue.
Why did net new assets decline compared with last year?
Total net new assets were $21.4 billion versus $78.8 billion in Q1 2025. Net new brokerage assets were an outflow of $4.4 billion, compared with an inflow of $41.2 billion a year earlier, while net new advisory assets were $25.8 billion versus $37.6 billion.
How is LPL positioned on debt and capital returns?
Corporate debt and other borrowings, net, were $7.18 billion at March 31, 2026, with a leverage ratio of 1.86 against a 4.0 maximum covenant. The Company resumed share repurchases in April 2026 after pausing in anticipation of the Commonwealth acquisition, and $630.0 million remained under its repurchase program at quarter-end.
What integration milestone is still ahead for the Company?
The filing states that Commonwealth's advisory and brokerage assets are expected to transition to the Company's platform in the fourth quarter of 2026, and that the conversion of assets from Commonwealth Equity Services is expected to be completed in that quarter, after which its registrations will be withdrawn.
06—Continue