We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Results benefited from robust revenue improvement, partly offset by higher expenses. LPLA recorded growth in brokerage and advisory assets, which acted as a tailwind.
After considering certain non-recurring items, net income was $318.6 million or $4.24 per share, up from $288.8 million or $3.83 per share in the prior-year quarter. Our estimate for net income was $280.8 million.
LPLA’s Revenues Improve, Expenses Rise
Total net revenues of $3.67 billion surged 30% year over year. The top line beat the Zacks Consensus Estimate of $3.61 billion.
Total expenses jumped 32% to $3.25 billion. The rise was due to an increase in all cost components except communications and data processing expenses. Our estimate for total expenses was $3.24 billion.
As of March 31, 2025, LPL Financial’s total brokerage and advisory assets were $1,794.9 billion, up 25%. In the reported quarter, total net new assets were $78.8 billion, up from $16.7 billion in the prior-year quarter.
Total client cash balances rose 15% year over year to $53.1 billion.
LPLA’s Balance Sheet Position Solid
As of March 31, 2025, total assets were $13.96 billion, up 5% on a sequential basis. As of the same date, cash and cash equivalents totaled $1.23 billion, up from $967.1 million.
Total stockholders’ equity was $3.12 billion as of March 31, 2025, up 7% sequentially.
Update on LPL Financial’s Share Repurchases
In the reported quarter, the company repurchased $100 million worth of shares.
Our View on LPL Financial
LPL Financial’s recruiting efforts and solid advisor productivity will likely continue aiding advisory revenues. Strategic acquisitions and a strong balance sheet will keep supporting financials. However, rising expenses and uncertainty regarding capital markets are likely to adversely impact commission revenues.
LPL Financial Holdings Inc. Price, Consensus and EPS Surprise
Charles Schwab’s (SCHW - Free Report) first-quarter 2025 adjusted earnings of $1.04 per share beat the Zacks Consensus Estimate of $1.00. The bottom line surged 41% year over year. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Schwab’s results benefited from the solid performance of the asset management business, which drove revenues. Higher net interest revenues and solid brokerage account numbers were other positives. However, an increase in expenses acted as a headwind.
Interactive Brokers Group’s (IBKR - Free Report) first-quarter 2025 adjusted earnings per share of $1.88 lagged the Zacks Consensus Estimate of $1.92. However, the bottom line indicates a rise of 14.6% from the prior-year quarter.
Results were adversely impacted by higher expenses. On the other hand, an increase in revenues and growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as tailwinds for Interactive Brokers.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
LPL Financial's Q1 Earnings Beat on Higher Revenues, Expenses Soar
LPL Financial’s (LPLA - Free Report) first-quarter 2025 adjusted earnings of $5.15 per share handily outpaced the Zacks Consensus Estimate of $4.54. The bottom line also grew 22% year over year.
Results benefited from robust revenue improvement, partly offset by higher expenses. LPLA recorded growth in brokerage and advisory assets, which acted as a tailwind.
After considering certain non-recurring items, net income was $318.6 million or $4.24 per share, up from $288.8 million or $3.83 per share in the prior-year quarter. Our estimate for net income was $280.8 million.
LPLA’s Revenues Improve, Expenses Rise
Total net revenues of $3.67 billion surged 30% year over year. The top line beat the Zacks Consensus Estimate of $3.61 billion.
Total expenses jumped 32% to $3.25 billion. The rise was due to an increase in all cost components except communications and data processing expenses. Our estimate for total expenses was $3.24 billion.
As of March 31, 2025, LPL Financial’s total brokerage and advisory assets were $1,794.9 billion, up 25%. In the reported quarter, total net new assets were $78.8 billion, up from $16.7 billion in the prior-year quarter.
Total client cash balances rose 15% year over year to $53.1 billion.
LPLA’s Balance Sheet Position Solid
As of March 31, 2025, total assets were $13.96 billion, up 5% on a sequential basis. As of the same date, cash and cash equivalents totaled $1.23 billion, up from $967.1 million.
Total stockholders’ equity was $3.12 billion as of March 31, 2025, up 7% sequentially.
Update on LPL Financial’s Share Repurchases
In the reported quarter, the company repurchased $100 million worth of shares.
Our View on LPL Financial
LPL Financial’s recruiting efforts and solid advisor productivity will likely continue aiding advisory revenues. Strategic acquisitions and a strong balance sheet will keep supporting financials. However, rising expenses and uncertainty regarding capital markets are likely to adversely impact commission revenues.
LPL Financial Holdings Inc. Price, Consensus and EPS Surprise
LPL Financial Holdings Inc. price-consensus-eps-surprise-chart | LPL Financial Holdings Inc. Quote
Currently, LPL Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of LPLA’s Peers
Charles Schwab’s (SCHW - Free Report) first-quarter 2025 adjusted earnings of $1.04 per share beat the Zacks Consensus Estimate of $1.00. The bottom line surged 41% year over year. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Schwab’s results benefited from the solid performance of the asset management business, which drove revenues. Higher net interest revenues and solid brokerage account numbers were other positives. However, an increase in expenses acted as a headwind.
Interactive Brokers Group’s (IBKR - Free Report) first-quarter 2025 adjusted earnings per share of $1.88 lagged the Zacks Consensus Estimate of $1.92. However, the bottom line indicates a rise of 14.6% from the prior-year quarter.
Results were adversely impacted by higher expenses. On the other hand, an increase in revenues and growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as tailwinds for Interactive Brokers.