LPLA earnings analysis
What we found in LPLA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
LPL delivered a strong Q2, with revenue up 35% year over year to $5.187 billion and GAAP diluted EPS up 39% to $4.74. Growth was led by advisory revenue and the Commonwealth acquisition, while advisory asset flows remained robust; brokerage flows, however, stayed negative. Cash generation improved, but higher debt, lower Corporate Cash, sustained capex, and integration-related costs temper the otherwise favorable operating trajectory.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS accelerated
- Q2 revenue rose 35% year over year to $5.187 billion from $3.835 billion and increased 5% sequentially from implied Q1 revenue of $4.938 billion. GAAP diluted EPS increased to $4.74 from $3.40 a year earlier and $4.43 in Q1.
- Margin mixed, but pre-tax margin improved
- Gross profit increased 24% to $1.618 billion, while the non-GAAP gross-profit margin was 31.2%, down from 34.0% a year ago and 32.2% in Q1. Pre-tax/operating margin improved to 9.9% from 9.6% a year ago and 9.8% in Q1.
- Core revenue streams posted broad growth
- Advisory revenue grew 53% to $2.632 billion, commission revenue grew 19% to $1.232 billion, and asset-based revenue grew 19% to $835.1 million. Management attributed advisory growth primarily to higher advisory assets and the Commonwealth acquisition.
- Advisory asset momentum remained strong
- Total advisory and brokerage assets reached $2.563 trillion, up from $1.919 trillion a year earlier. Net new advisory assets rose to $30.7 billion from $23.1 billion, and advisory assets grew 46% to $1.548 trillion.
- Operating cash flow and FCF improved
- Six-month operating cash flow increased to $692.4 million from $533.1 million; after $365.2 million of capex, derived free cash flow was $327.1 million. Capex represented 3.6% of six-month revenue of $10.125 billion.
- Capital returns resumed materially
- LPL repurchased 1.1 million shares for $309.5 million during the first half and authorized an additional $2.5 billion repurchase program on July 23. It also repurchased 420,464 shares for $134.3 million through July 30.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Brokerage asset outflows worsened
- Brokerage net new assets were an outflow of $7.1 billion in Q2, worsening from a $2.6 billion outflow a year earlier; this partially offset $30.7 billion of net new advisory assets.
- Leverage remains elevated after acquisitions
- Corporate debt and other borrowings increased to $7.461 billion at June 30 from $7.259 billion at December 31, while Corporate Cash declined to $430.1 million from $469.7 million. The leverage ratio increased to 1.91 from 1.23 a year earlier.
- Working capital and capex remain cash intensive
- Working-capital investment absorbed cash: advisor loans increased $503.0 million, client receivables increased $190.8 million, and other receivables increased $231.9 million in the first six months. Capital expenditures also rose 42% to $365.2 million.
- No formal risk-factor update; legal exposure persists
- Item 1A states there were no material changes to risk factors versus the 2025 10-K; however, the filing continues to cite regulatory and legal exposure, including a consolidated cash-sweep class action first filed in July 2024 and $105.0 million of self-insurance liabilities at June 30, 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $4.74
- Gross margin
- 31.2%
- Operating margin
- 9.9%
- Segment
- One reportable segment; total revenue was $5.187 billion, up 35% year over year from $3.835 billion.
What they said about what is next.
No explicit revenue or EPS guidance was provided in the 10-Q. Management disclosed approximately $300 million of planned Q3 2026 share repurchases and expects to complete conversion of Commonwealth assets in Q4 2026.
The filing reads better than the one before it.
What came before.
- 10-Q · May 4, 2026
- LPL Financial Holdings Inc. reported Q1 2026 results with revenue of $4.94 billion, a significant increase of 35% year-over-year and a net income of $356.4 million, translating to an EPS of $4.43, up from $4.24 in the…
- 10-K · February 23, 2026
- LPL positions itself as the largest independent broker‑dealer and a leading custodian, supporting more than 32,000 advisors and servicing approximately $2.4 trillion in brokerage and advisory assets. 2025 revenue…
- 10-Q · August 4, 2025
- LPL reported strong top-line growth in Q2 2025 with total revenue of $3,835.0 million (up 31% YoY and up ~4.5% sequentially) and gross profit of $1,304.3 million (up 21% YoY). GAAP diluted EPS was $3.40 (vs. $3.23 a…
- 10-Q · November 4, 2024
- LPL reported a strong top-line quarter with total revenue of $3,108.4 million for Q3 2024, up 23% year-over-year and roughly 6.1% sequentially. GAAP diluted EPS was $3.39 (adjusted EPS $4.16) and net income rose to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing LPLA makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever