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Quarterly revenues came in at $4.97 billion, up 35.4% from the year-ago quarter. The top line marginally missed the consensus estimate of $4.98 billion.
The quarter reflected continued scale benefits, highlighted by a rise in revenues and growth in total client assets. An increase in expenses hampered the results to some extent.
LPLA’s Revenue Mix Benefits From Advisory Growth
Advisory revenues soared 55% year over year to $2.62 billion, remaining the largest contributor to the top line. Commissions also grew, with total commissions rising 14% to $1.19 billion, supported by gains in both sales-based and trailing activity compared with the prior-year period.
Asset-based revenues totaled $820.8 million, up 18% year over year, as client cash revenue climbed 14% to $445.3 million and other asset-based revenues advanced 24% to $375.5 million. Service and fee revenues surged 45% to $211.0 million, while transaction revenues improved 19% to $80.5 million, reflecting higher activity levels and continued expansion in the advisor and account base.
LPL Financial Sees Gross Profit Expansion
LPL Financial’s gross profit rose 25% from a year ago to $1.59 billion, benefiting from the sharp increase in advisory revenues and improved attachment revenue streams. The strength in gross profit was an important driver behind the adjusted earnings beat and helped offset ongoing investment spending across the platform.
LPLA’s production-based payout totaled $3.32 billion, reflecting continued growth in advisor activity and the economics tied to advisory and commission revenues. The payout rate was 87.22%, up from 86.75% in the year-ago quarter, pointing to a modestly higher payout as the business scales, even as gross profit expanded meaningfully.
LPLA’s Costs Rise as Core G&A Climbs
Total expenses increased 37% year over year to $4.45 billion, illustrating the cost of supporting rapid growth and onboarding-related activity. Advisory and commission expenses climbed 40% to $3.29 billion, consistent with the higher revenue base generated in the quarter.
Beyond production-related costs, several corporate expense categories moved higher. Additionally, core G&A increased 29% to $532.0 million, highlighting continued investment in capabilities and scale initiatives.
LPL Financial Delivers Solid Asset Flows
LPL Financial ended the quarter with $2.34 trillion of total client assets, up 30% from the prior-year period. Advisory assets rose 42% to $1.39 trillion, and represented 59.5% of total client assets. This reinforces the ongoing mix shift toward fee-based advisory. Brokerage assets grew 16% from the prior-year quarter to $945.9 million.
Asset flows were positive, though the composition was mixed. Total organic net new assets were $21.4 billion. Within that, advisory organic net new assets were $25.8 billion, while brokerage organic net new assets were negative $4.4 billion.
Recruited assets were $17.4 billion, down 55% from the year-ago quarter, though recruited assets over the trailing 12 months were $83 billion, indicating a larger pipeline over a longer horizon.
LPLA Updates 2026 Expense Outlook and Capital Plans
On the outlook front, LPLA lowered the upper end of its 2026 Core G&A outlook by $20 million to a range of $2.155-$2.190 billion, including expenses related to the Commonwealth acquisition. This adjustment reflects performance to date and the company’s efforts to balance growth investments with improving operating leverage.
Capital actions also returned to focus. The board declared a 30-cent per share dividend, which will be paid out on June 4, 2026. Also, the company resumed share repurchases in April, with an estimated $125 million of buybacks planned during the second quarter.
On M&A execution, LPLA said the Commonwealth conversion remains on track for the fourth quarter of 2026, while highlighting a newly announced agreement related to Mariner Advisor Network and continued activity in its Liquidity & Succession program, including $62 million deployed across six deals in the quarter.
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 support financials. However, rising expenses and uncertainty in capital markets are likely to adversely impact commission revenues.
LPL Financial Holdings Inc. Price, Consensus and EPS Surprise
Interactive Brokers Group’s (IBKR - Free Report) first-quarter 2026 adjusted earnings per share of 60 cents missed the Zacks Consensus Estimate of 62 cents. However, the bottom line reflected a rise of 27.7% from the prior-year quarter.
IBKR’s results were primarily hurt by a rise in expenses. However, an increase in revenues, growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as tailwinds.
Charles Schwab’s (SCHW - Free Report) first-quarter 2026 adjusted earnings of $1.43 per share outpaced the Zacks Consensus Estimate of $1.38. The bottom line soared 38% year over year.
Quarterly results benefited from the robust performance of the asset management business and an increase in trading revenues. Higher net interest revenues (NIR) and solid brokerage account numbers were other positives. However, an increase in expenses was the undermining factor for SCHW.
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LPLA Q1 Earnings Beat Estimates as Revenues and Advisory Assets Jump
Key Takeaways
LPL Financial Holdings Inc.’s (LPLA - Free Report) first-quarter 2026 adjusted earnings of $5.60 per share topped the Zacks Consensus Estimate of $5.49. Adjusted earnings rose 9% year over year.
Quarterly revenues came in at $4.97 billion, up 35.4% from the year-ago quarter. The top line marginally missed the consensus estimate of $4.98 billion.
The quarter reflected continued scale benefits, highlighted by a rise in revenues and growth in total client assets. An increase in expenses hampered the results to some extent.
LPLA’s Revenue Mix Benefits From Advisory Growth
Advisory revenues soared 55% year over year to $2.62 billion, remaining the largest contributor to the top line. Commissions also grew, with total commissions rising 14% to $1.19 billion, supported by gains in both sales-based and trailing activity compared with the prior-year period.
Asset-based revenues totaled $820.8 million, up 18% year over year, as client cash revenue climbed 14% to $445.3 million and other asset-based revenues advanced 24% to $375.5 million. Service and fee revenues surged 45% to $211.0 million, while transaction revenues improved 19% to $80.5 million, reflecting higher activity levels and continued expansion in the advisor and account base.
LPL Financial Sees Gross Profit Expansion
LPL Financial’s gross profit rose 25% from a year ago to $1.59 billion, benefiting from the sharp increase in advisory revenues and improved attachment revenue streams. The strength in gross profit was an important driver behind the adjusted earnings beat and helped offset ongoing investment spending across the platform.
LPLA’s production-based payout totaled $3.32 billion, reflecting continued growth in advisor activity and the economics tied to advisory and commission revenues. The payout rate was 87.22%, up from 86.75% in the year-ago quarter, pointing to a modestly higher payout as the business scales, even as gross profit expanded meaningfully.
LPLA’s Costs Rise as Core G&A Climbs
Total expenses increased 37% year over year to $4.45 billion, illustrating the cost of supporting rapid growth and onboarding-related activity. Advisory and commission expenses climbed 40% to $3.29 billion, consistent with the higher revenue base generated in the quarter.
Beyond production-related costs, several corporate expense categories moved higher. Additionally, core G&A increased 29% to $532.0 million, highlighting continued investment in capabilities and scale initiatives.
LPL Financial Delivers Solid Asset Flows
LPL Financial ended the quarter with $2.34 trillion of total client assets, up 30% from the prior-year period. Advisory assets rose 42% to $1.39 trillion, and represented 59.5% of total client assets. This reinforces the ongoing mix shift toward fee-based advisory. Brokerage assets grew 16% from the prior-year quarter to $945.9 million.
Asset flows were positive, though the composition was mixed. Total organic net new assets were $21.4 billion. Within that, advisory organic net new assets were $25.8 billion, while brokerage organic net new assets were negative $4.4 billion.
Recruited assets were $17.4 billion, down 55% from the year-ago quarter, though recruited assets over the trailing 12 months were $83 billion, indicating a larger pipeline over a longer horizon.
LPLA Updates 2026 Expense Outlook and Capital Plans
On the outlook front, LPLA lowered the upper end of its 2026 Core G&A outlook by $20 million to a range of $2.155-$2.190 billion, including expenses related to the Commonwealth acquisition. This adjustment reflects performance to date and the company’s efforts to balance growth investments with improving operating leverage.
Capital actions also returned to focus. The board declared a 30-cent per share dividend, which will be paid out on June 4, 2026. Also, the company resumed share repurchases in April, with an estimated $125 million of buybacks planned during the second quarter.
On M&A execution, LPLA said the Commonwealth conversion remains on track for the fourth quarter of 2026, while highlighting a newly announced agreement related to Mariner Advisor Network and continued activity in its Liquidity & Succession program, including $62 million deployed across six deals in the quarter.
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 support financials. However, rising expenses and uncertainty in 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 #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of LPLA’s Peers
Interactive Brokers Group’s (IBKR - Free Report) first-quarter 2026 adjusted earnings per share of 60 cents missed the Zacks Consensus Estimate of 62 cents. However, the bottom line reflected a rise of 27.7% from the prior-year quarter.
IBKR’s results were primarily hurt by a rise in expenses. However, an increase in revenues, growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as tailwinds.
Charles Schwab’s (SCHW - Free Report) first-quarter 2026 adjusted earnings of $1.43 per share outpaced the Zacks Consensus Estimate of $1.38. The bottom line soared 38% year over year.
Quarterly results benefited from the robust performance of the asset management business and an increase in trading revenues. Higher net interest revenues (NIR) and solid brokerage account numbers were other positives. However, an increase in expenses was the undermining factor for SCHW.