01—Abstract
Summary
Summary of the 8-K filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
LPL Financial Holdings Inc. (Nasdaq: LPLA) reported second quarter 2026 results for the three months ended June 30, 2026, in a press release furnished as Exhibit 99.1.
Net income was $379 milliona, or $4.74 per diluted share, compared with $273 million, or $3.40 per share, in the second quarter of 2025. Adjusted EPS rose 29% year-over-year to $5.84, gross profit increased 24% to $1,618 million, and total client assets grew 34% to $2.6 trillion. Organic net new assets were $23 billion, representing 4% annualized growth, and recruited assets were $25 billion.
The company resumed share repurchases, buying back $309 millionb in the second quarter and planning approximately $300 million for the third quarter. On July 23, 2026, the Board approved a $2.5 billion increase to the share repurchase authorization. The Board also declared a $0.30 per share dividend payable August 28, 2026.
Management lowered its 2026 Core G&A outlook to $2,140c-2,165 million, including expenses related to Commonwealth. The Commonwealth Financial Network acquisition remains on track for conversion in the fourth quarter of 2026, with expected asset retention of approximately 90% and estimated run-rate EBITDA raised from $410 million to $435 million. The leverage ratio was 1.91x, and corporate cash was $430 million at quarter end.
02—Key points
Key Highlights
- Net income of $379 million, or $4.74 diluted EPS, up 39% from $3.40 a year earlier; adjusted EPS up 29% to $5.84.
- Total client assets up 34% year-over-year to $2.6 trillion; advisory assets up 46% to $1.5 trillion, representing 60.4% of total client assets.
- Organic net new assets of $23 billion, representing 4% annualized growth; recruited assets of $25 billion, up 35% year-over-year.
- Share repurchases resumed with $309 million in Q2 and approximately $300 million planned for Q3; Board approved a $2.5 billion increase to the repurchase authorization on July 23, 2026.
- Commonwealth conversion on track for Q4 2026; expected asset retention of approximately 90% and run-rate EBITDA estimate raised from $410 million to $435 million.
- 2026 Core G&A outlook lowered to $2,140-2,165 million, including Commonwealth-related expenses.
- Leverage ratio of 1.91x and corporate cash of $430 million; quarterly dividend of $0.30 per share payable August 28, 2026.
03—Questions
Frequently Asked Questions
How did LPL perform in the second quarter of 2026?
LPL reported net income of $379 million, or $4.74 per diluted share, versus $273 million, or $3.40 per share, in Q2 2025. Gross profit rose 24% year-over-year to $1,618 million, and adjusted pre-tax income rose 30% to $635 million.
What is the status of the Commonwealth acquisition?
The company is on track to complete the Commonwealth conversion in the fourth quarter of 2026, expects asset retention of approximately 90%, and has raised estimated run-rate EBITDA from $410 million to $435 million.
Is LPL returning capital to shareholders?
Yes. LPL repurchased $309 million of shares in Q2 and plans about $300 million in Q3. The Board approved a $2.5 billion increase to the repurchase authorization on July 23, 2026, and declared a $0.30 per share dividend payable August 28, 2026.
What changed in the company's cost outlook?
Management lowered its 2026 Core G&A outlook to $2,140-2,165 million, which includes expenses related to Commonwealth. Core G&A in Q2 2026 was $519 million, down from $532 million in Q1 2026.
How is the company's balance sheet and liquidity positioned?
The leverage ratio was 1.91x at June 30, 2026, and corporate cash was $430 million. Total client cash balances were $57 billion, or 2.2% of total client assets.
04—Continue