LPL Financial Posts 23% EPS Growth, Reaches $2.4 Trillion Assets with 3,000-Advisor Acquisition
LPL Financial reported Q4 adjusted EPS of $5.23, up 23% year-on-year, with total assets reaching $2.4 trillion and organic net new assets of $23 billion (4% annualized). The firm closed its acquisition of Commonwealth Financial Network—adding 3,000 advisors—and reaffirmed expected $425 million run-rate EBITDA from Commonwealth once fully integrated.
1. Record Annual Organic Growth and Strategic Integrations
LPL Financial delivered industry-leading organic asset growth of 8% in 2025, the highest in its peer group, and completed the onboarding of Wintrust Financial and First Horizon wealth management businesses, adding over 200 advisors managing approximately $34 billion in client assets. The firm also finalized the integration of Atria Wealth Solutions, converting seven broker-dealers to the LPL platform and marking the completion of its largest internal consolidation project to date.
2. Fourth-Quarter Assets, Profitability, and Revenue Drivers
Total assets under custody reached $2.4 trillion in Q4, driven by $23 billion of organic net new assets, representing an annualized growth rate of about 4%. Adjusted EPS for the quarter rose 23% year-over-year to $5.23, while adjusted pre-tax margin expanded to 36%. Gross profit increased sequentially by $62 million to $1.542 billion. Key revenue contributors included commission and advisory fees net of payout of $453 million (up $27 million), client cash revenue of $456 million (up $14 million), service and fee revenue of $181 million (up $6 million), and transaction revenue of $75 million (up $8 million).
3. Cash Balances and Interest Income Trends
Client cash balances climbed by $5 billion sequentially to $61 billion at year-end, reflecting both seasonal deposits and organic growth. Within the firm’s ICA portfolio, 55% of fixed-rate balances remained in the target range of 50% to 75%. Fourth-quarter ICA yield was 341 basis points, down 10 basis points from Q3 due to rate cuts in October and December, with an expected further decline of 10 basis points in Q1 as those cuts take full effect.
4. Commonwealth Acquisition Progress and 2026 Guidance
LPL closed its largest acquisition to date with Commonwealth Financial Network, adding approximately 3,000 advisors and expecting roughly 90% asset retention post-onboarding. The firm estimates a $425 million run-rate EBITDA contribution once fully integrated. For 2026, core G&A expenses are forecasted at $2.155 billion to $2.210 billion, including $300 million to $390 million of Commonwealth-related costs, and Q1 core G&A of $540 million to $560 million. Service and fee revenues are projected to increase by $25 million sequentially in Q1, driven by fee changes that will deliver an annualized benefit of $140 million.