NASDAQ$LPLA

LPL Financial Holdings Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

LPL Financial's Q4 2024 results were announced, featuring increased net income, EPS, and adjusted EPS compared to the previous year, driven by growth in advisory and brokerage assets and strategic acquisitions.

LPL Financial reported a strong fourth quarter in 2024, with net income reaching $271 million and diluted EPS at $3.59, a 26% increase year-over-year. Adjusted EPS also rose by 21% to $4.25. The company's total advisory and brokerage assets grew to $1.7 trillion, and it achieved significant organic net new assets of $68 billion. The company's advisor count increased substantially, reflecting the successful onboarding of advisors from Atria and Prudential.

  • Net income was $271 million, with diluted EPS of $3.59, up 26% year-over-year.
  • Adjusted EPS increased 21% year-over-year to $4.25.
  • Total advisory and brokerage assets increased 29% year-over-year to $1.7 trillion.
  • Total organic net new assets were $68 billion, representing 17% annualized growth.

Headline financials

Total Revenue

$3.51B

Previous: $2.64B+32.8%
EPS (adj)

$4.25

Previous: $3.51+21.1%
Total advisory & brokerage assets

$1.74T

No prior period
Advisory assets

$957B

No prior period
Advisory as % of total assets

55.0%

No prior period
Organic net new assets

$68B

No prior period
Recruited assets

$78.7B

No prior period
Client cash balances

$55.1B

No prior period
Client cash % of total assets

3.2%

No prior period
Corporate cash

$479M

No prior period
Leverage ratio

1.89

No prior period
Net new advisors

5.2K

No prior period
Advisor count

28.9K

No prior period
Fees & commissions per advisor

$390K

No prior period
AUM retention rate (annualized)

97.3%

No prior period
Acquired net new assets

$89.3B

No prior period
Total net new assets

$157B

No prior period
Organic NNA annualized growth

17.1%

No prior period
Net Income

$271M

Previous: $218M+24.5%
Operating Income

$341M

No prior period
Gross Profit

$1.23B

Previous: $913M+34.4%

Revenue & EPS history

LPL Financial · Revenue · Quarterly

$3.51B

Q4 2024+32.8%vs Q4 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

LPL Financial · $2.52B total across 9 segments · Q3 2023

  • Advisory
    $1.08B+17.1%
  • Client cash
    $361M
  • Trailing
    $332M
  • Sales-based
    $312M
  • Other asset-based
    $225M
  • Service and fee
    $136M+11.4%
  • Transaction
    $50.2M+15.9%
  • Interest
    $40.8M+84.6%
  • Others
    -$14.5M

Forward guidance

LPL Financial is slowing the growth of Core G&A* as ongoing investments to scale business are driving greater efficiencies. Our 2025 Core G&A* outlook range prior to Prudential and Atria is 6% to 8% year-over-year growth, or $1,560 million to $1,600 million. Including expenses related to Prudential and Atria, our 2025 Core G&A* outlook range is $1,730 million to $1,780 million

Tailwinds

  • Business momentum
  • Financial strength
  • Expanding leadership across the advisor-mediated marketplace
  • Delivering long-term shareholder value
  • Opportunities to continue to drive growth

Headwinds

  • Difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors
  • Disruptions in the businesses of the Company that could make it more difficult to maintain relationships with advisors and their clients
  • Changes in general economic and financial market conditions, including retail investor sentiment
  • Effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions
  • The Company's ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.6%

Avg return

Earnings day

+3.3%

Avg return

5 days after

+4.1%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+13.7%

Q1 2019

Best reaction

-38.1%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%-2.8%-18.1%
Q4 2025-1.7%+7.2%-17.2%
Q3 2025+11.6%+10.7%+5.2%
Q1 2025+6.3%+13.6%+14.7%
Q4 2024+1.3%-0.0%+2.7%
Q3 2024+6.2%+3.1%+22.4%
Q2 2024-2.5%-2.4%-1.4%
Q1 2024-3.1%-1.1%+2.0%
Q4 2023+5.0%+1.0%+11.3%
Q3 2023+2.4%+3.8%+5.8%
Q2 2023-3.9%-1.3%-0.8%
Q1 2023+4.7%-1.7%-0.9%
Q4 2022-0.3%+4.4%+8.5%
Q3 2022+4.5%+4.3%-6.9%
Q2 2022+4.9%+8.8%+7.5%
Q1 2022-1.3%+0.4%+5.5%
Q4 2021+2.9%+7.6%-10.8%
Q3 2021-4.7%-1.2%-7.1%
Q2 2021+0.5%-2.4%+7.5%
Q1 2021+2.7%+1.6%-3.1%
Q4 2020+8.5%+8.9%+15.7%
Q3 2020+4.1%+7.8%+20.7%
Q2 2020-2.5%-1.3%+1.6%
Q1 2020+0.9%+1.2%+16.2%
Q4 2019-2.2%-1.5%-15.7%
Q3 2019+1.0%+3.2%+16.3%
Q2 2019-0.6%-3.3%-16.3%
Q1 2019+13.7%+14.6%+9.1%
Q4 2018+8.1%+10.8%+10.4%
Q3 2018+5.7%+10.2%+14.0%
Q2 2018+0.6%-3.9%-3.8%
Q1 2018+5.9%+12.8%+14.9%
Q4 2017+5.8%+4.9%+6.4%
Q3 2017-5.8%-6.3%-6.3%
Q2 2017+0.0%-0.8%+0.5%
Q1 2017+6.8%+9.2%+0.8%
Q4 2016+4.4%+4.2%+0.4%
Q3 2016-1.2%+4.5%+30.2%
Q2 2016+8.2%-0.5%+17.4%
Q1 2016-1.5%
Q4 2015-38.1%
Q3 2015+3.4%
Q2 2015-9.0%
Q1 2015-1.7%
Q4 2014+1.6%
Q3 2014-2.7%
Q2 2014-4.3%
Q1 2014-4.3%
Q4 2013-0.3%
Q3 2013-0.3%
Q2 2013+6.5%
Q1 2013+0.2%
Q4 2012-0.1%
Q3 2012+1.7%
Q2 2012-13.2%
Q1 2011-3.3%
Q1 2012+0.2%
Q4 2009+3.5%
Q4 2011+3.5%
Q1 2010+3.5%
Q3 2010+3.5%
Q3 2011+3.5%
Q2 2011-1.8%
Q4 2010-1.8%
Q2 2010-1.8%

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