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…
Earnings analysis · 10-Q
LPLA earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.74
- Segment
- One reportable segment; total revenue was $5.187 billion, up 35% year over year from $3.835 billion.
What stood out
-
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.
What to watch
-
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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.