LPL Financial reported record adjusted earnings per share of $20.09 for full-year 2025 and $5.23 for the fourth quarter, representing a 23% increase from the year-ago period. Fourth-quarter gross profit rose by $62 million sequentially to $1.542 billion, while adjusted pre-tax margin expanded to approximately 36%. CEO Rich Steinmeier described 2025 as a “milestone year,” driven by industry-leading organic asset growth of 8% and the completion of key integrations that collectively added more than $34 billion in client assets under management.

Total client assets reached $2.4 trillion in the quarter, bolstered by organic net new assets of $23 billion—equivalent to a 4% annualized growth rate—and higher equity markets. During the year, LPL onboarded the retail wealth businesses of Wintrust Financial and First Horizon, supporting over 200 advisors, and completed the Atria Wealth Solutions conversion across seven broker-dealers. The company also closed its largest acquisition ever, Commonwealth Financial Network, bringing on 3,000 advisors and targeting 90% asset retention post-onboarding.

Commission and advisory fees net of payout increased by $27 million sequentially to $453 million, with payout rates rising to 88% due to seasonal production bonuses. Client cash revenue grew by $14 million to $456 million as balance growth offset lower short-term rates, while service and fee revenue rose by $6 million to $181 million despite a full quarter of Commonwealth revenue being partially offset by lower conference and IRA fees. Transaction revenue climbed by $8 million to $75 million on higher trading volumes. Client cash balances ended the quarter at $61 billion, up $5 billion sequentially, with 55% of the ICA portfolio in fixed-rate holdings and an ICA yield of 3.41%, down 10 basis points from the prior quarter.

For the first quarter, management expects service and fee revenue to increase by approximately $25 million, driven by fee changes that should deliver a quarterly benefit of $35 million. Core G&A expenses are projected between $540 million and $560 million, with full-year core G&A, including Commonwealth impact, forecast at $2.155 billion to $2.210 billion. The company anticipates run-rate EBITDA from Commonwealth of roughly $425 million once fully integrated. LPL ended Q4 with $470 million in corporate cash and a leverage ratio of 1.95x, and plans to revisit share repurchase timing as deleveraging and onboarding progress continue.