01—Abstract
Summary
Summary of the 8-K filed October 27, 2026. Cited figures are marked; the original filing is the authoritative source.
LPL Financial Holdings Inc. reported third-quarter 2026 net income of $357 milliona, or $4.52 per diluted share, compared with a net loss of $30 million, or $0.37 per share, in the third quarter of 2025, and net income of $379 million, or $4.74 per share, in the prior quarter.
Adjusted EPS rose 15% year-over-year to $5.97b. Gross profit increased 12% year-over-year to $1,662 million, core G&A increased 11% to $532 million, and adjusted pre-tax income increased 13% to $641 million. Total client assets reached $2.6 trillion, up 11% year-over-year, with advisory assets of $1.6 trillion, up 16%.
Total organic net new assets were $29 billionc, representing 5% annualized growth, while recruited assets of $24 billion were down 26% from a year earlier. On the capital side, the company reported corporate cash of $563 million, a leverage ratio of 1.93x, share repurchases of $301 million, and dividends paid of $24 million. Management is on track to complete the Commonwealth Financial Network conversion in the fourth quarter of 2026, with asset retention now expected at approximately 83% and estimated run-rate EBITDA of $415 million.
The company narrowed its 2026 core G&A outlook to $2,140d-2,160 million, including Commonwealth-related expenses, and declared a $0.30 per share dividend payable November 30, 2026. The results are furnished under Item 2.02 in Exhibit 99.1 and are not deemed filed under Section 18 of the Exchange Act.
02—Key points
Key Highlights
- Net income of $357 million, or $4.52 per diluted share, versus a net loss of $30 million, or $0.37 per share, in Q3 2025
- Adjusted EPS up 15% year-over-year to $5.97; adjusted pre-tax income up 13% to $641 million
- Gross profit up 12% year-over-year to $1,662 million; core G&A up 11% to $532 million
- Total client assets up 11% year-over-year to $2.6 trillion; advisory assets up 16% to $1.6 trillion, now 60.9% of total client assets
- Total organic net new assets of $29 billion (5% annualized growth), while recruited assets of $24 billion were down 26% year-over-year
- Commonwealth conversion on track for Q4 2026, with asset retention now expected at approximately 83% and run-rate EBITDA of $415 million; 2026 core G&A outlook narrowed to $2,140-2,160 million
- Leverage ratio of 1.93x, corporate cash of $563 million, share repurchases of $301 million, and a declared $0.30 per share dividend payable November 30, 2026
03—Questions
Frequently Asked Questions
How did LPL Financial perform in the third quarter of 2026?
The company reported net income of $357 million, or $4.52 per diluted share, compared with a net loss of $30 million, or $0.37 per share, in the third quarter of 2025. Adjusted EPS increased 15% year-over-year to $5.97, and total revenue was $5.34 billion.
What is the status of the Commonwealth acquisition?
The company is on track to complete the Commonwealth Financial Network conversion in the fourth quarter of 2026. Asset retention is now expected to be approximately 83%, and estimated run-rate EBITDA is now expected to be $415 million.
Why did recruiting activity and organic growth change?
Recruited assets were $24 billion for the quarter, down 26% from a year earlier, although they totaled $81 billion over the trailing twelve months. Total organic net new assets were $29 billion, representing 5% annualized growth, and management cited improved organic growth during the quarter.
What is the company's outlook and capital return plan?
Management narrowed its 2026 core G&A outlook to $2,140-2,160 million, including expenses related to Commonwealth. The Board declared a $0.30 per share dividend payable November 30, 2026, to stockholders of record as of November 12, 2026. During the quarter, the company repurchased $301 million of shares and paid $24 million in dividends.
04—Continue