01—Abstract
Summary
Summary of the 10-Q filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
LPL Financial Holdings Inc. reported net income of $356.6 milliona, or $4.52 per diluted share, for the third quarter of 2026, compared with a net loss of $29.5 million, or $0.37 per diluted share, in the third quarter of 2025.
Total revenue was $5,344.0 millionb, up from $4,552.0 million, and gross profit, a non-GAAP measure, was $1,661.9 million, an increase of 12% from $1,479.3 million. Adjusted EPS was $5.97 compared with $5.20. For the nine months ended September 30, 2026, net income was $1,092.2 million, or $13.68 per diluted share.
Results in the prior-year quarter were heavily affected by $538.2 millionc of acquisition costs tied to the Commonwealth acquisition, which were $83.1 million in the third quarter of 2026. Asset growth remained positive but slowed. Total advisory and brokerage assets were $2.6 trillion at September 30, 2026, and total net new assets were $29.1 billion for the quarter, compared with $307.7 billion a year earlier.
Advisory assets reached $1.6 trilliond, or 61% of total assets, while brokerage assets had net outflows of $4.0 billion. Advisor headcount was 32,597, and total client cash balances were $56.6 billion. Capital returns and balance sheet metrics were steady.
The company repurchased 893,176 shares for $300.6 million in the third quarter and $610.0 million over the nine months, with $2.5 billion remaining under its repurchase program. The Board declared a $0.30 per share dividend payable November 30, 2026.
The leverage ratio was 1.93 against a covenant maximum of 4.0, and the interest coverage ratio was 9.34 against a minimum of 3.0. The company expects to complete the conversion of Commonwealth assets in the fourth quarter of 2026.
02—Key points
Key Highlights
- Third-quarter 2026 net income was $356.6 million, or $4.52 per diluted share, versus a net loss of $29.5 million, or $0.37 per diluted share, in the third quarter of 2025.
- Total revenue rose to $5,344.0 million from $4,552.0 million, and advisory revenue increased to $2,872.9 million from $2,210.5 million.
- Total net new assets were $29.1 billion for the quarter, down from $307.7 billion a year earlier; net new brokerage assets were an outflow of $4.0 billion.
- Advisory assets were $1.6 trillion, or 61% of total advisory and brokerage assets served, at September 30, 2026.
- Acquisition costs fell to $83.1 million in the third quarter of 2026 from $538.2 million in the third quarter of 2025, which had included Commonwealth closing costs.
- The company repurchased $300.6 million of stock in the quarter and had $2.5 billion remaining under its repurchase program; the Board declared a $0.30 per share dividend payable November 30, 2026.
- The leverage ratio was 1.93 versus a covenant maximum of 4.0, and the interest coverage ratio was 9.34 versus a covenant minimum of 3.0.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $5.34B$4.55B | +17.4% |
| Operating Expenses | $4.86B$4.59B | +5.9% |
| Interest Expense | $105.83M$106.30M | −0.4% |
| Net Income | $356.56M-$29.52M | +1308.0% |
| EPS (Basic) | $4.53$-0.37 | +1324.3% |
| EPS (Diluted) | $4.52$-0.37 | +1321.6% |
| Shares Outstanding (Basic) | 78.66M80.02M | −1.7% |
| Shares Outstanding (Diluted) | 78.97M80.36M | −1.7% |
05—Questions
Frequently Asked Questions
How did profitability change compared with the third quarter of 2025?
Net income was $356.6 million, or $4.52 per diluted share, compared with a net loss of $29.5 million, or $0.37 per diluted share, a year earlier. The prior-year quarter included $538.2 million of acquisition costs, and adjusted EPS was $5.97 compared with $5.20.
Is the company still attracting new client assets?
Net new assets were $29.1 billion for the quarter, compared with $307.7 billion in the third quarter of 2025. Net new advisory assets were $33.1 billion, while net new brokerage assets were an outflow of $4.0 billion.
What is the company's debt and covenant position?
Corporate debt and other borrowings were $7,836.0 million at September 30, 2026, and Credit Agreement net debt was $7,273.2 million. The leverage ratio was 1.93 against a maximum of 4.0, and the interest coverage ratio was 9.34 against a minimum of 3.0. The company stated it was in compliance with its Credit Agreement covenants.
How is the company returning capital to shareholders?
The company repurchased 893,176 shares for $300.6 million in the third quarter and $610.0 million over the first nine months of 2026. It paid $23.6 million in dividends in the quarter, and the Board declared a $0.30 per share dividend payable November 30, 2026, to holders of record on November 12, 2026.
What is expected to happen with Commonwealth in the coming months?
The filing states that the company expects to complete the conversion of assets from Commonwealth Equity Services in the fourth quarter of 2026 and to withdraw that entity's registrations thereafter. Commonwealth advisory and brokerage assets are expected to transition to the company's platform in the fourth quarter of 2026.
06—Continue