LPL Financial公布2026年二季度业绩，调整后EPS增长并扩大回购授权

LPL Financial Announces Second Quarter 2026 Results
Key Financial Results
- Net income was $379 million, translating to diluted earnings per share ("EPS") of $4.74, up 39% from a year ago
- Adjusted EPS* increased 29% year-over-year to $5.84
- Gross profit* increased 24% year-over-year to $1,618 million
- Core G&A* increased 22% year-over-year to $519 million
- Adjusted pre-tax income* increased 30% year-over-year to $635 million
Key Business Results
- Total client assets increased 34% year-over-year to $2.6 trillion
- Advisory assets increased 46% year-over-year to $1.5 trillion
- Advisory assets as a percentage of total client assets increased to 60.4%, up from 55.3% a year ago
- Total organic net new assets were $23 billion, representing 4% annualized growth
- Recruited assets(1) were $25 billion, up 35% from a year ago
- Recruited assets over the trailing twelve months were $89 billion
- Total client cash balances were $57 billion, a decrease of $2 billion sequentially and an increase of $6 billion year-over-year
- Client cash balances as a percentage of total client assets were 2.2%, down from 2.5% in the prior quarter and 2.6% in the prior year
Key Capital and Liquidity Measures
- Corporate cash(2) was $430 million
- Leverage ratio(3) was 1.91x
- Share repurchases were $309 million and dividends paid were $24 million
Key Updates
M&A:
- Commonwealth Financial Network ("Commonwealth"): On track to complete the conversion in the fourth quarter of 2026
- Continue to expect asset retention of approximately 90%
- Estimated run-rate EBITDA has increased from $410 million to $435 million
- Mariner Advisor Network: Closed on the acquisition of Mariner Advisor Network, an LPL branch office supporting 367† advisors who collectively manage $31 billion† of client assets
- As part of this transaction, approximately 223 advisors remain directly affiliated with LPL, and approximately 144 hybrid advisors have transitioned to Private Advisor Group's hybrid RIA model
- Liquidity & Succession: Deployed approximately $21 million of capital to close four deals in Q2, including one external practice
Core G&A:
- Given our performance to date, we are lowering our 2026 Core G&A* outlook range to $2,140-2,165 million, including expenses related to Commonwealth
Capital Management:
- Share Repurchases: Resumed our share repurchase program, with $309 million repurchased during the second quarter and approximately $300 million planned for the third quarter
- Repurchase Authorization: On July 23, 2026, the Board approved a $2.5 billion increase to the Company's share repurchase authorization
- Dividend: The Company's Board of Directors declared a $0.30 per share dividend to be paid on August 28, 2026 to all stockholders of record as of August 14, 2026.
SAN DIEGO, July 30, 2026 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq: LPLA) (the "Company") today announced results for its second quarter ended June 30, 2026, reporting net income of $379 million, or $4.74 per share. This compares with net income of $273 million, or $3.40 per share, in the second quarter of 2025 and net income of $356 million, or $4.43 per share, in the prior quarter.
"After an outstanding start to the year, we continued our momentum in the second quarter, delivering another quarter of strong performance and results," said Rich Steinmeier, CEO. "We remain focused on our strategic priorities, and are on track to onboard Commonwealth later this year. Underscoring the exceptional work and dedication of our teams, JD Power recognized both Commonwealth and LPL as the top-ranked firms for independent advisor satisfaction. This is a reflection of the complementary cultures we're bringing together and the unparalleled value we deliver to advisors and their clients."
"The team delivered another quarter of remarkable results, highlighted by record adjusted earnings per share and further progress driving improved operating leverage," said Matt Audette, President and CFO. "We achieved this while deploying capital across our entire framework, including continuing to invest in organic and inorganic growth and resuming share repurchases."
Conference Call and Additional Information
The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, July 30, 2026. The conference call will be accessible and available for replay at investor.lpl.com/events.
Contacts
Investor Relations
investor.relations@lplfinancial.com
Media Relations
media.relations@lplfinancial.com
About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace(4), LPL supports more than 32,000 financial advisors and the wealth management practices of approximately 1,100 financial institutions, servicing and custodying approximately $2.6 trillion in brokerage and advisory assets on behalf of approximately 8 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.
Securities and advisory services offered through LPL Financial LLC ("LPL Financial") or its affiliate LPL Enterprise, LLC ("LPL Enterprise"), both registered investment advisers and broker-dealers. Members FINRA/SIPC.
Throughout this communication, the terms "financial advisors" and "advisors" are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial or LPL Enterprise.
We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.
† Value approximated based on asset and holding details provided to LPL from March 31, 2026.
Forward-Looking Statements
This press release contains statements regarding:
- the Company’s retention of Commonwealth assets and Commonwealth’s future financial and operating performance;
- run-rate EBITDA expectations in connection with the Company’s acquisition of Commonwealth;
- the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Commonwealth;
- the Company's plans to invest to drive growth and increase efficiency while scaling its business;
- the Company’s recruitment pipeline and expected organic growth;
- the Company's future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company's ICA yield, service and fee revenue, transaction revenue, core G&A expense, interest expense and income, leverage ratio (including plans to reduce leverage), pricing and fees (including their effect on adjusted pre-tax margin), corporate cash, run-rate EBITDA, depreciation and amortization, operating leverage, pre-tax margin, transition assistance loan amortization, organic growth, payout rate, tax rate and share repurchases; and
- future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.
These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company's expectations and objectives as of July 30, 2026 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:
- difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;
- disruptions in the businesses of the Company and Commonwealth that could make it more difficult to maintain relationships with advisors and their clients;
- the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;
- changes in general economic and financial market conditions, including retail investor sentiment;
- changes in interest rates and fees payable by banks participating in the Company's client cash programs, including the Company's success in negotiating agreements with current or additional counterparties;
- the Company's strategy and success in managing client cash program fees;
- fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;
- effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively;
- whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
- changes in the growth and profitability of the Company's fee-based offerings and asset-based revenues;
- the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;
- the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;
- changes made to the Company's services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company’s gross profit streams and costs;
- the execution of the Company's capital management plans, including its compliance with the terms of the Company's amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company's senior unsecured notes;
- strategic acquisitions and investments, including pursuant to the Company's Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company’s capital management plans and liquidity;
- the price, availability and trading volumes of shares of the Company's common stock, which will affect the timing and size of future share repurchases by the Company, if any;
- the execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;
- whether advisors affiliated with Commonwealth will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
- the performance of third-party service providers to which business processes have been transitioned;
- the Company's ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and
- the other factors set forth in the Company's most recent Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission.
Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company's view as of any date subsequent to the date of this press release.
| LPL Financial Holdings Inc. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited) | |||||||||||
| Three Months Ended | Three Months Ended | ||||||||||
| June 30, | March 31, | June 30, | |||||||||
| 2026 | 2026 | Change | 2025 | Change | |||||||
| REVENUE | |||||||||||
| Advisory | $ | 2,632,405 | $ | 2,615,047 | 1 | % | $ | 1,717,738 | 53 | % | |
| Commission: | |||||||||||
| Sales-based | 728,155 | 705,415 | 3 | % | 619,792 | 17 | % | ||||
| Trailing | 503,918 | 486,619 | 4 | % | 418,295 | 20 | % | ||||
| Total commission | 1,232,073 | 1,192,034 | 3 | % | 1,038,087 | 19 | % | ||||
| Asset-based: | |||||||||||
| Client cash | 443,501 | 445,325 | — | % | 397,332 | 12 | % | ||||
| Other asset-based | 391,643 | 375,480 | 4 | % | 305,015 | 28 | % | ||||
| Total asset-based | 835,144 | 820,805 | 2 | % | 702,347 | 19 | % | ||||
| Service and fee | 208,879 | 210,984 | (1 | %) | 151,839 | 38 | % | ||||
| Transaction | 83,216 | 80,542 | 3 | % | 60,541 | 37 | % | ||||
| Interest income, net | 46,527 | 45,180 | 3 | % | 76,941 | (40 | %) | ||||
| Other | 148,379 | (26,158 | ) | n/m | 87,532 | 70 | % | ||||
| Total revenue | 5,186,623 | 4,938,434 | 5 | % | 3,835,025 | 35 | % | ||||
| EXPENSE | |||||||||||
| Advisory and commission | 3,507,164 | 3,291,209 | 7 | % | 2,483,165 | 41 | % | ||||
| Compensation and benefits | 355,612 | 368,740 | (4 | %) | 319,100 | 11 | % | ||||
| Promotional | 220,030 | 208,400 | 6 | % | 177,552 | 24 | % | ||||
| Occupancy and equipment | 125,542 | 118,523 | 6 | % | 81,443 | 54 | % | ||||
| Depreciation and amortization | 109,805 | 105,751 | 4 | % | 96,231 | 14 | % | ||||
| Interest expense on borrowings | 101,502 | 100,292 | 1 | % | 105,636 | (4 | %) | ||||
| Amortization of other intangibles | 70,886 | 67,230 | 5 | % | 46,103 | 54 | % | ||||
| Brokerage, clearing and exchange | 52,018 | 55,475 | (6 | %) | 43,290 | 20 | % | ||||
| Professional services | 50,757 | 50,381 | 1 | % | 41,092 | 24 | % | ||||
| Communications and data processing | 26,200 | 23,467 | 12 | % | 21,417 | 22 | % | ||||
| Other | 51,603 | 64,382 | (20 | %) | 51,192 | 1 | % | ||||
| Total expense | 4,671,119 | 4,453,850 | 5 | % | 3,466,221 | 35 | % | ||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 515,504 | 484,584 | 6 | % | 368,804 | 40 | % | ||||
| PROVISION FOR INCOME TAXES | 136,243 | 128,180 | 6 | % | 95,555 | 43 | % | ||||
| NET INCOME | $ | 379,261 | $ | 356,404 | 6 | % | $ | 273,249 | 39 | % | |
| EARNINGS PER SHARE | |||||||||||
| Earnings per share, basic | $ | 4.75 | $ | 4.45 | 7 | % | $ | 3.42 | 39 | % | |
| Earnings per share, diluted | $ | 4.74 | $ | 4.43 | 7 | % | $ | 3.40 | 39 | % | |
| Weighted-average shares outstanding, basic | 79,791 | 80,113 | — | % | 79,984 | — | % | ||||
| Weighted-average shares outstanding, diluted | 80,032 | 80,446 | (1 | %) | 80,373 | — | % | ||||
| LPL Financial Holdings Inc. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited) | ||||||
| Six Months Ended | ||||||
| June 30, | ||||||
| 2026 | 2025 | Change | ||||
| REVENUE | ||||||
| Advisory | $ | 5,247,452 | $ | 3,406,983 | 54 | % |
| Commission: | ||||||
| Sales-based | 1,433,570 | 1,229,830 | 17 | % | ||
| Trailing | 990,537 | 856,014 | 16 | % | ||
| Total commission | 2,424,107 | 2,085,844 | 16 | % | ||
| Asset-based: | ||||||
| Client cash | 888,826 | 789,363 | 13 | % | ||
| Other asset-based | 767,123 | 608,225 | 26 | % | ||
| Total asset-based | 1,655,949 | 1,397,588 | 18 | % | ||
| Service and fee | 419,863 | 297,038 | 41 | % | ||
| Transaction | 163,758 | 128,405 | 28 | % | ||
| Interest income, net | 91,707 | 120,792 | (24 | %) | ||
| Other | 122,221 | 68,382 | 79 | % | ||
| Total revenue | 10,125,057 | 7,505,032 | 35 | % | ||
| EXPENSE | ||||||
| Advisory and commission | 6,798,373 | 4,837,090 | 41 | % | ||
| Compensation and benefits | 724,352 | 624,646 | 16 | % | ||
| Promotional | 428,430 | 323,197 | 33 | % | ||
| Occupancy and equipment | 244,065 | 158,683 | 54 | % | ||
| Depreciation and amortization | 215,556 | 188,587 | 14 | % | ||
| Interest expense on borrowings | 201,794 | 191,498 | 5 | % | ||
| Amortization of other intangibles | 138,116 | 89,624 | 54 | % | ||
| Brokerage, clearing and exchange | 107,493 | 87,428 | 23 | % | ||
| Professional services | 101,138 | 77,418 | 31 | % | ||
| Communications and data processing | 49,667 | 40,923 | 21 | % | ||
| Other | 115,985 | 99,881 | 16 | % | ||
| Total expense | 9,124,969 | 6,718,975 | 36 | % | ||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 1,000,088 | 786,057 | 27 | % | ||
| PROVISION FOR INCOME TAXES | 264,423 | 194,235 | 36 | % | ||
| NET INCOME | $ | 735,665 | $ | 591,822 | 24 | % |
| EARNINGS PER SHARE | ||||||
| Earnings per share, basic | $ | 9.20 | $ | 7.66 | 20 | % |
| Earnings per share, diluted | $ | 9.17 | $ | 7.61 | 20 | % |
| Weighted-average shares outstanding, basic | 79,951 | 77,307 | 3 | % | ||
| Weighted-average shares outstanding, diluted | 80,243 | 77,760 | 3 | % | ||
| LPL Financial Holdings Inc. Condensed Consolidated Statements of Financial Condition (In thousands, except share data) (Unaudited) | |||||||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | |||||||
| ASSETS | |||||||||
| Cash and equivalents | $ | 1,275,690 | $ | 1,024,459 | $ | 1,037,378 | |||
| Cash and equivalents segregated under federal or other regulations | 1,420,167 | 1,655,723 | 1,792,064 | ||||||
| Restricted cash | 232,889 | 225,765 | 225,298 | ||||||
| Receivables from clients, net | 994,139 | 866,500 | 803,206 | ||||||
| Receivables from brokers, dealers and clearing organizations | 244,302 | 100,003 | 70,897 | ||||||
| Advisor loans, net | 3,889,372 | 3,741,085 | 3,681,512 | ||||||
| Other receivables, net | 1,427,985 | 1,359,790 | 1,203,539 | ||||||
| Investment securities ($188,006, $84,862, and $76,108 at fair value at June 30, 2026, March 31, 2026, and December 31, 2025, respectively) | 203,499 | 100,322 | 91,528 | ||||||
| Property and equipment, net | 1,569,647 | 1,467,569 | 1,409,376 | ||||||
| Goodwill | 2,681,661 | 2,659,170 | 2,644,723 | ||||||
| Other intangibles, net | 3,433,597 | 3,413,946 | 3,330,788 | ||||||
| Other assets | 2,418,172 | 2,220,909 | 2,202,444 | ||||||
| Total assets | $ | 19,791,120 | $ | 18,835,241 | $ | 18,492,753 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| LIABILITIES: | |||||||||
| Client payables | $ | 2,256,333 | $ | 2,116,992 | $ | 2,308,275 | |||
| Payables to brokers, dealers and clearing organizations | 599,397 | 307,677 | 150,520 | ||||||
| Accrued advisory and commission expenses payable | 381,255 | 370,174 | 361,623 | ||||||
| Corporate debt and other borrowings, net | 7,460,510 | 7,182,102 | 7,258,694 | ||||||
| Accounts payable and accrued liabilities | 812,156 | 744,928 | 821,641 | ||||||
| Other liabilities | 2,524,629 | 2,427,666 | 2,247,515 | ||||||
| Total liabilities | 14,034,280 | 13,149,539 | 13,148,268 | ||||||
| STOCKHOLDERS’ EQUITY: | |||||||||
| Common stock, $0.001 par value; 600,000,000 shares authorized; 136,822,289, 136,811,280, and 136,637,544 shares issued at June 30, 2026, March 31, 2026, and December 31, 2025, respectively | 137 | 137 | 136 | ||||||
| Additional paid-in capital | 3,898,694 | 3,870,612 | 3,843,017 | ||||||
| Treasury stock, at cost — 57,660,516, 56,622,578, and 56,576,672 shares at June 30, 2026, March 31, 2026, and December 31, 2025, respectively | (4,664,666 | ) | (4,352,434 | ) | (4,333,725 | ) | |||
| Retained earnings | 6,522,675 | 6,167,387 | 5,835,057 | ||||||
| Total stockholders’ equity | 5,756,840 | 5,685,702 | 5,344,485 | ||||||
| Total liabilities and stockholders’ equity | $ | 19,791,120 | $ | 18,835,241 | $ | 18,492,753 | |||
LPL Financial Holdings Inc.
Management's Statements of Operations
(In thousands, except per share data)
(Unaudited)
Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s unaudited condensed consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures" in this release.
| Quarterly Results | |||||||||||||
| Q2 2026 | Q1 2026 | Change | Q2 2025 | Change | |||||||||
| Gross Profit(5) | |||||||||||||
| Advisory | $ | 2,632,405 | $ | 2,615,047 | 1 | % | $ | 1,717,738 | 53 | % | |||
| Trailing commissions | 503,918 | 486,619 | 4 | % | 418,295 | 20 | % | ||||||
| Sales-based commissions | 728,155 | 705,415 | 3 | % | 619,792 | 17 | % | ||||||
| Advisory fees and commissions | 3,864,478 | 3,807,081 | 2 | % | 2,755,825 | 40 | % | ||||||
| Production-based payout(6) | (3,378,961 | ) | (3,320,527 | ) | 2 | % | (2,406,692 | ) | 40 | % | |||
| Advisory fees and commissions, net of payout | 485,517 | 486,554 | — | % | 349,133 | 39 | % | ||||||
| Client cash(7) | 456,945 | 459,653 | (1 | %) | 413,516 | 11 | % | ||||||
| Other asset-based(8) | 391,643 | 375,480 | 4 | % | 305,015 | 28 | % | ||||||
| Service and fee | 208,879 | 210,984 | (1 | %) | 151,839 | 38 | % | ||||||
| Transaction | 83,216 | 80,542 | 3 | % | 60,541 | 37 | % | ||||||
| Interest income, net(9) | 33,027 | 30,835 | 7 | % | 60,738 | (46 | %) | ||||||
| Other revenue(10) | 11,054 | 4,138 | 167 | % | 6,785 | 63 | % | ||||||
| Total net advisory fees and commissions and attachment revenue | 1,670,281 | 1,648,186 | 1 | % | 1,347,567 | 24 | % | ||||||
| Brokerage, clearing and exchange expense | (52,018 | ) | (55,475 | ) | (6 | %) | (43,290 | ) | 20 | % | |||
| Gross Profit(5) | 1,618,263 | 1,592,711 | 2 | % | 1,304,277 | 24 | % | ||||||
| G&A Expense | |||||||||||||
| Core G&A(11) | 519,272 | 532,049 | (2 | %) | 425,595 | 22 | % | ||||||
| Transition assistance loan amortization(12) | 142,335 | 135,982 | 5 | % | 89,423 | 59 | % | ||||||
| Promotional (ongoing)(12)(13)(14) | 79,123 | 75,888 | 4 | % | 74,152 | 7 | % | ||||||
| Employee share-based compensation | 22,701 | 22,218 | 2 | % | 19,504 | 16 | % | ||||||
| Regulatory charges | 8,158 | 7,501 | 9 | % | 7,267 | 12 | % | ||||||
| Acquisition costs excluding interest(14) | 48,977 | 61,216 | (20 | %) | 71,562 | (32 | %) | ||||||
| Total G&A | 820,566 | 834,854 | (2 | %) | 687,503 | 19 | % | ||||||
| EBITDA(15) | 797,697 | 757,857 | 5 | % | 616,774 | 29 | % | ||||||
| Interest expense on borrowings(16) | 101,502 | 100,292 | 1 | % | 102,323 | (1 | %) | ||||||
| Depreciation and amortization | 109,805 | 105,751 | 4 | % | 96,231 | 14 | % | ||||||
| Amortization of other intangibles | 70,886 | 67,230 | 5 | % | 46,103 | 54 | % | ||||||
| Acquisition costs - interest(14) | — | — | — | % | 3,313 | (100 | %) | ||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 515,504 | 484,584 | 6 | % | 368,804 | 40 | % | ||||||
| PROVISION FOR INCOME TAXES | 136,243 | 128,180 | 6 | % | 95,555 | 43 | % | ||||||
| NET INCOME | $ | 379,261 | $ | 356,404 | 6 | % | $ | 273,249 | 39 | % | |||
| Earnings per share, diluted | $ | 4.74 | $ | 4.43 | 7 | % | $ | 3.40 | 39 | % | |||
| Weighted-average shares outstanding, diluted | 80,032 | 80,446 | (1 | %) | 80,373 | — | % | ||||||
| Adjusted EBITDA(15) | $ | 846,674 | $ | 819,073 | 3 | % | $ | 688,336 | 23 | % | |||
| Adjusted pre-tax income(17) | $ | 635,367 | $ | 613,030 | 4 | % | $ | 489,782 | 30 | % | |||
| Adjusted EPS(18) | $ | 5.84 | $ | 5.60 | 4 | % | $ | 4.51 | 29 | % | |||
| LPL Financial Holdings Inc. Operating Metrics (Dollars in billions, except where noted) (Unaudited) | |||||||||||
| Q2 2026 | Q1 2026 | Change | Q2 2025 | Change | |||||||
| Market Drivers | |||||||||||
| S&P 500 Index (end of period) | 7,499 | 6,529 | 15% | 6,205 | 21% | ||||||
| Russell 2000 Index (end of period) | 3,024 | 2,496 | 21% | 2,175 | 39% | ||||||
| Fed Funds daily effective rate (average bps) | 363 | 364 | (1bps) | 433 | (70bps) | ||||||
| Client Assets(19) | |||||||||||
| Advisory | $ | 1,548.4 | $ | 1,390.4 | 11% | $ | 1,060.7 | 46% | |||
| Brokerage | 1,014.3 | 945.9 | 7% | 858.5 | 18% | ||||||
| Total Client Assets | $ | 2,562.7 | $ | 2,336.3 | 10% | $ | 1,919.2 | 34% | |||
| Advisory as a % of Total Client Assets | 60.4 | % | 59.5 | % | 90bps | 55.3 | % | 510bps | |||
| Assets by Platform | |||||||||||
| Corporate RIA advisory(20) | $ | 1,190.8 | $ | 1,063.4 | 12% | $ | 766.4 | 55% | |||
| Independent RIA advisory(20) | 357.6 | 327.0 | 9% | 294.3 | 22% | ||||||
| Brokerage | 1,014.3 | 945.9 | 7% | 858.5 | 18% | ||||||
| Total Client Assets | $ | 2,562.7 | $ | 2,336.3 | 10% | $ | 1,919.2 | 34% | |||
| Centrally Managed Assets | |||||||||||
| Centrally managed assets(21) | $ | 245.6 | $ | 217.2 | 13% | $ | 183.5 | 34% | |||
| Centrally Managed as a % of Total Advisory Assets | 15.9 | % | 15.6 | % | 30bps | 17.3 | % | (140bps) | |||
LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)
| Q2 2026 | Q1 2026 | Change | Q2 2025 | Change | |||||||
| Organic Net New Assets (NNA)(22) | |||||||||||
| Advisory | $ | 30.2 | $ | 25.8 | n/m | $ | 23.1 | n/m | |||
| Brokerage | (7.1 | ) | (4.4 | ) | n/m | (2.6 | ) | n/m | |||
| Total Organic NNA | $ | 23.1 | $ | 21.4 | n/m | $ | 20.5 | n/m | |||
| Acquired NNA(22) | |||||||||||
| Advisory | $ | 0.5 | $ | — | n/m | $ | — | n/m | |||
| Brokerage | — | — | n/m | — | n/m | ||||||
| Total Acquired NNA | $ | 0.5 | $ | — | n/m | $ | — | n/m | |||
| Total NNA(22) | |||||||||||
| Advisory | $ | 30.7 | $ | 25.8 | n/m | $ | 23.1 | n/m | |||
| Brokerage | (7.1 | ) | (4.4 | ) | n/m | (2.6 | ) | n/m | |||
| Total NNA | $ | 23.6 | $ | 21.4 | n/m | $ | 20.5 | n/m | |||
| Net brokerage to advisory conversions(23) | $ | 6.6 | $ | 6.6 | n/m | $ | 6.4 | n/m | |||
| Organic advisory NNA annualized growth(24) | 8.7 | % | 7.4 | % | n/m | 9.5 | % | n/m | |||
| Total organic NNA annualized growth(24) | 4.0 | % | 3.6 | % | n/m | 4.6 | % | n/m | |||
| Total Organic Advisory NNA(22) | |||||||||||
| Organic corporate RIA advisory | $ | 27.9 | $ | 22.3 | n/m | $ | 24.8 | n/m | |||
| Organic independent RIA advisory | 2.3 | 3.5 | n/m | (1.7 | ) | n/m | |||||
| Total Organic Advisory NNA | $ | 30.2 | $ | 25.8 | n/m | $ | 23.1 | n/m | |||
| Organic centrally managed NNA(22) | $ | 7.9 | $ | 7.8 | n/m | $ | 6.1 | n/m | |||
| Net buy (sell) activity(25) | $ | 39.7 | $ | 43.2 | n/m | $ | 36.6 | n/m | |||
Note: Totals may not foot due to rounding.
| LPL Financial Holdings Inc. Client Cash Data (Dollars in thousands, except where noted) (Unaudited) | |||||||||||
| Q2 2026 | Q1 2026 | Change | Q2 2025 | Change | |||||||
| Client Cash Balances (in billions)(26) | |||||||||||
| Insured cash account sweep | $ | 38.4 | $ | 39.8 | (4%) | $ | 34.2 | 12% | |||
| Deposit cash account sweep | 15.6 | 15.9 | (2%) | 10.8 | 44% | ||||||
| Total Bank Sweep | 54.1 | 55.7 | (3%) | 44.9 | 20% | ||||||
| Money market sweep | 1.1 | 1.5 | (27%) | 3.7 | (70%) | ||||||
| Total Client Cash Sweep Held by Third Parties | 55.2 | 57.2 | (3%) | 48.6 | 14% | ||||||
| Client cash account (CCA) | 1.7 | 2.0 | (15%) | 2.0 | (15%) | ||||||
| Total Client Cash Balances | $ | 56.9 | $ | 59.1 | (4%) | $ | 50.6 | 12% | |||
| Client Cash Balances as a % of Total Assets | 2.2 | % | 2.5 | % | (30bps) | 2.6 | % | (40bps) | |||
Note: Totals may not foot due to rounding.
| Three Months Ended | |||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||||||
| Interest-Earning Assets | Average Balance (in billions) | Revenue | Net Yield (bps)(27) | Average Balance (in billions) | Revenue | Net Yield (bps)(27) | Average Balance (in billions) | Revenue | Net Yield (bps)(27) | ||||||
| Insured cash account sweep | $ | 37.7 | $ | 315,814 | 336 | $ | 38.8 | $ | 321,639 | 336 | $ | 34.4 | $ | 293,420 | 342 |
| Deposit cash account sweep | 14.9 | 126,571 | 341 | 14.6 | 122,080 | 338 | 10.7 | 101,298 | 381 | ||||||
| Total Bank Sweep | 52.6 | 442,385 | 337 | 53.4 | 443,719 | 337 | 45.1 | 394,718 | 351 | ||||||
| Money market sweep | 1.3 | 1,116 | 35 | 2.1 | 1,606 | 31 | 4.0 | 2,614 | 26 | ||||||
| Total Client Cash Held By Third Parties | 53.9 | 443,501 | 330 | 55.5 | 445,325 | 325 | 49.1 | 397,332 | 325 | ||||||
| Client cash account (CCA) | 1.8 | 13,444 | 303 | 1.9 | 14,328 | 299 | 1.7 | 16,184 | 378 | ||||||
| Total Client Cash | 55.7 | 456,945 | 329 | 57.4 | 459,653 | 324 | 50.8 | 413,516 | 326 | ||||||
| Margin receivables | 0.8 | 15,602 | 796 | 0.8 | 14,786 | 792 | 0.6 | 12,080 | 807 | ||||||
| Other interest revenue | 1.4 | 17,425 | 514 | 1.2 | 16,049 | 528 | 4.4 | 48,658 | 448 | ||||||
| Total Client Cash and Interest Income, Net | $ | 57.9 | $ | 489,972 | 340 | $ | 59.4 | $ | 490,488 | 334 | $ | 55.8 | $ | 474,254 | 341 |
Note: Totals may not foot due to rounding.
| LPL Financial Holdings Inc. Monthly Metrics (Dollars in billions, except where noted) (Unaudited) | |||||||||||||
| June 2026 | May 2026 | Change | April 2026 | March 2026 | |||||||||
| Client Assets(19) | |||||||||||||
| Advisory | $ | 1,548.4 | $ | 1,537.3 | 1% | $ | 1,482.7 | $ | 1,390.4 | ||||
| Brokerage | 1,014.3 | 1,017.3 | —% | 995.0 | 945.9 | ||||||||
| Total Client Assets | $ | 2,562.7 | $ | 2,554.6 | —% | $ | 2,477.7 | $ | 2,336.3 | ||||
| Organic NNA(22) | |||||||||||||
| Advisory | $ | 13.3 | $ | 11.0 | n/m | $ | 6.0 | $ | 9.7 | ||||
| Brokerage | (2.0 | ) | (2.2 | ) | n/m | (3.0 | ) | (1.6 | ) | ||||
| Total Organic NNA | $ | 11.3 | $ | 8.8 | n/m | $ | 3.1 | $ | 8.1 | ||||
| Acquired NNA(22) | |||||||||||||
| Advisory | $ | 0.5 | $ | — | n/m | $ | — | $ | — | ||||
| Brokerage | — | — | n/m | — | — | ||||||||
| Total Acquired NNA | $ | 0.5 | $ | — | n/m | $ | — | $ | — | ||||
| Total NNA(22) | |||||||||||||
| Advisory | $ | 13.8 | $ | 11.0 | n/m | $ | 6.0 | $ | 9.7 | ||||
| Brokerage | (2.0 | ) | (2.2 | ) | n/m | (3.0 | ) | (1.6 | ) | ||||
| Total NNA | $ | 11.8 | $ | 8.8 | n/m | $ | 3.1 | $ | 8.1 | ||||
| Net brokerage to advisory conversions(23) | $ | 2.3 | $ | 2.1 | n/m | $ | 2.2 | $ | 2.2 | ||||
| Client Cash Balances(26) | |||||||||||||
| Insured cash account sweep | $ | 38.4 | $ | 37.0 | 4% | $ | 37.6 | $ | 39.8 | ||||
| Deposit cash account sweep | 15.6 | 14.8 | 5% | 14.7 | 15.9 | ||||||||
| Total Bank Sweep | 54.1 | 51.9 | 4% | 52.3 | 55.7 | ||||||||
| Money market sweep | 1.1 | 1.2 | (8%) | 1.3 | 1.5 | ||||||||
| Total Client Cash Sweep Held by Third Parties | 55.2 | 53.1 | 4% | 53.6 | 57.2 | ||||||||
| Client cash account (CCA) | 1.7 | 1.8 | (6%) | 1.9 | 2.0 | ||||||||
| Total Client Cash Balances | $ | 56.9 | $ | 54.8 | 4% | $ | 55.5 | $ | 59.1 | ||||
| Net buy (sell) activity(25) | $ | 13.1 | $ | 13.7 | n/m | $ | 12.9 | $ | 12.7 | ||||
| Market Drivers | |||||||||||||
| S&P 500 Index (end of period) | 7,499 | 7,580 | (1%) | 7,209 | 6,529 | ||||||||
| Russell 2000 Index (end of period) | 3,024 | 2,919 | 4% | 2,800 | 2,496 | ||||||||
| Fed Funds daily effective rate (average bps) | 363 | 363 | —bps | 364 | 364 | ||||||||
Note: Totals may not foot due to rounding.
| LPL Financial Holdings Inc. Financial Measures (Dollars in thousands, except where noted) (Unaudited) | |||||||||||
| Q2 2026 | Q1 2026 | Change | Q2 2025 | Change | |||||||
| Commission Revenue by Product | |||||||||||
| Annuities | $ | 727,746 | $ | 690,577 | 5% | $ | 629,763 | 16% | |||
| Mutual funds | 262,044 | 266,056 | (2%) | 223,317 | 17% | ||||||
| Fixed income | 82,014 | 85,323 | (4%) | 53,014 | 55% | ||||||
| Equities | 58,751 | 57,540 | 2% | 47,811 | 23% | ||||||
| Other | 101,518 | 92,538 | 10% | 84,182 | 21% | ||||||
| Total commission revenue | $ | 1,232,073 | $ | 1,192,034 | 3% | $ | 1,038,087 | 19% | |||
| Commission Revenue by Sales-based and Trailing | |||||||||||
| Sales-based commissions | |||||||||||
| Annuities | $ | 444,791 | $ | 424,221 | 5% | $ | 393,654 | 13% | |||
| Fixed income | 82,014 | 85,323 | (4%) | 53,014 | 55% | ||||||
| Equities | 58,751 | 57,540 | 2% | 47,811 | 23% | ||||||
| Mutual funds | 53,993 | 58,011 | (7%) | 52,301 | 3% | ||||||
| Other | 88,606 | 80,320 | 10% | 73,012 | 21% | ||||||
| Total sales-based commissions | $ | 728,155 | $ | 705,415 | 3% | $ | 619,792 | 17% | |||
| Trailing commissions | |||||||||||
| Annuities | $ | 282,955 | $ | 266,356 | 6% | $ | 236,109 | 20% | |||
| Mutual funds | 208,051 | 208,045 | —% | 171,016 | 22% | ||||||
| Other | 12,912 | 12,218 | 6% | 11,170 | 16% | ||||||
| Total trailing commissions | $ | 503,918 | $ | 486,619 | 4% | $ | 418,295 | 20% | |||
| Total commission revenue | $ | 1,232,073 | $ | 1,192,034 | 3% | $ | 1,038,087 | 19% | |||
| Payout Rate(6) | 87.44 | % | 87.22 | % | 22bps | 87.33 | % | 11bps | |||
| LPL Financial Holdings Inc. Capital Management Measures (Dollars in thousands, except where noted) (Unaudited) | |||||||||
| Q2 2026 | Q1 2026 | Q4 2025 | |||||||
| Cash and equivalents | $ | 1,275,690 | $ | 1,024,459 | $ | 1,037,378 | |||
| Cash at regulated subsidiaries | (1,221,009 | ) | (873,123 | ) | (925,356 | ) | |||
| Excess cash at regulated subsidiaries per the Credit Agreement | 375,379 | 416,002 | 357,693 | ||||||
| Corporate Cash(2) | $ | 430,060 | $ | 567,338 | $ | 469,715 | |||
| Corporate Cash(2) | |||||||||
| Cash at LPL Holdings, Inc. | $ | 16,807 | $ | 24,107 | $ | 19,368 | |||
| Excess cash at regulated subsidiaries per the Credit Agreement | 375,379 | 416,002 | 357,693 | ||||||
| Cash at non-regulated subsidiaries | 37,874 | 127,229 | 92,654 | ||||||
| Corporate Cash | $ | 430,060 | $ | 567,338 | $ | 469,715 | |||
| Leverage Ratio | |||||||||
| Total debt | $ | 7,496,000 | $ | 7,220,000 | $ | 7,299,000 | |||
| Total corporate cash | 430,060 | 567,338 | 469,715 | ||||||
| Credit Agreement Net Debt | $ | 7,065,940 | $ | 6,652,662 | $ | 6,829,285 | |||
| Credit Agreement EBITDA (trailing twelve months)(28) | $ | 3,695,539 | $ | 3,575,622 | $ | 3,501,832 | |||
| Leverage Ratio | 1.91x | 1.86x | 1.95x | ||||||
| June 30, 2026 | ||||||
| Total Debt | Balance | Current Applicable Margin | Interest Rate | Maturity | ||
| Revolving Credit Facility(a) | $ | 276,000 | ABR+37.5 bps / SOFR+147.5 bps | 5.099 | % | 5/20/2029 |
| Broker-Dealer Revolving Credit Facility | — | SOFR+125 bps | 4.930 | % | 5/17/2027 | |
| Senior Unsecured Term Loan A | 1,020,000 | SOFR+125 bps(b) | 4.902 | % | 12/5/2028 | |
| Senior Unsecured Notes | 500,000 | 5.700% Fixed | 5.700 | % | 5/20/2027 | |
| Senior Unsecured Notes | 400,000 | 4.625% Fixed | 4.625 | % | 11/15/2027 | |
| Senior Unsecured Notes | 500,000 | 4.900% Fixed | 4.900 | % | 4/3/2028 | |
| Senior Unsecured Notes | 750,000 | 6.750% Fixed | 6.750 | % | 11/17/2028 | |
| Senior Unsecured Notes | 900,000 | 4.000% Fixed | 4.000 | % | 3/15/2029 | |
| Senior Unsecured Notes | 750,000 | 5.200% Fixed | 5.200 | % | 3/15/2030 | |
| Senior Unsecured Notes | 500,000 | 5.150% Fixed | 5.150 | % | 6/15/2030 | |
| Senior Unsecured Notes | 400,000 | 4.375% Fixed | 4.375 | % | 5/15/2031 | |
| Senior Unsecured Notes | 500,000 | 6.000% Fixed | 6.000 | % | 5/20/2034 | |
| Senior Unsecured Notes | 500,000 | 5.650% Fixed | 5.650 | % | 3/15/2035 | |
| Senior Unsecured Notes | 500,000 | 5.750% Fixed | 5.750 | % | 6/15/2035 | |
| Total / Weighted Average | $ | 7,496,000 | 5.222 | % | ||
(a) Unsecured borrowing capacity of $2.25 billion at LPL Holdings, Inc.
(b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps.
| LPL Financial Holdings Inc. Key Business and Financial Metrics (Dollars in thousands, except where noted) (Unaudited) | |||||||||||
| Q2 2026 | Q1 2026 | Change | Q2 2025 | Change | |||||||
| Business Metrics | |||||||||||
| Advisors | 32,475 | 32,144 | 1% | 29,353 | 11% | ||||||
| Net new advisors | 331 | (34 | ) | n/m | (140 | ) | n/m | ||||
| Annualized advisory fees and commissions per advisor(29) | $ | 478 | $ | 474 | 1% | $ | 375 | 27% | |||
| Average total assets per advisor ($ in millions)(30) | $ | 78.9 | $ | 72.7 | 9% | $ | 65.4 | 21% | |||
| Total client accounts (in millions) | 11.8 | 11.7 | 1% | 10.5 | 12% | ||||||
| Recruited AUM ($ in billions) | $ | 24.9 | $ | 17.4 | 43% | $ | 18.4 | 35% | |||
| Employees | 10,081 | 9,901 | 2% | 9,389 | 7% | ||||||
| AUM retention rate (quarterly annualized)(31) | 97.4 | % | 98.2 | % | (80bps) | 97.6 | % | (20bps) | |||
| Capital Management | |||||||||||
| Capital expenditures ($ in millions)(32) | $ | 199.4 | $ | 165.8 | 20% | $ | 137.0 | 46% | |||
| Acquisitions, net ($ in millions)(33) | $ | 102.7 | $ | 131.4 | (22%) | $ | 102.8 | —% | |||
| Share repurchases ($ in millions) | $ | 309.5 | $ | — | 100% | $ | — | 100% | |||
| Dividends ($ in millions) | 24.0 | 24.1 | —% | 24.0 | —% | ||||||
| Total Capital Returned ($ in millions) | $ | 333.5 | $ | 24.1 | n/m | $ | 24.0 | n/m | |||
Non-GAAP Financial Measures
Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.
Adjusted EPS and Adjusted net income
Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles and acquisition costs, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, and acquisition costs that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release.
Gross profit
Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release.
Core G&A
Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; transition assistance loan amortization; promotional (ongoing); acquisition costs excluding interest; employee share-based compensation; and regulatory charges. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company's total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort.
EBITDA and Adjusted EBITDA
EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs excluding interest. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release.
Adjusted pre-tax income
Adjusted pre-tax income is defined as income before provision for income taxes plus amortization of other intangibles and acquisition costs. The Company presents adjusted pre-tax income because management believes that it can provide investors with useful insight into the Company's core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company's ongoing operations. Adjusted pre-tax income is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to income before provision for income taxes or any other performance measure derived in accordance with GAAP. For a reconciliation of income before provision for income taxes to adjusted pre-tax income, please see the endnote disclosures in this release.
Credit Agreement EBITDA
Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company's amended and restated credit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release.
Endnote Disclosures
(1) Represents the estimated total client assets expected to transition to the Company's primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of client assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate.
(2) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company's Credit Agreement, which include LPL Financial, LPL Enterprise, LLC, The Private Trust Company, N.A., and Commonwealth Equity Services, LLC ("CES"), in excess of the capital requirements of the Company's Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries.
(3) Compliance with the Leverage Ratio is only required under the Company's revolving credit facility.
(4) The Company was named a Top RIA custodian (Cerulli Associates, 2025 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021.
(5) Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands):
| Q2 2026 | Q1 2026 | Q2 2025 | |||||
| Total revenue | $ | 5,186,623 | 4,938,434 | $ | 3,835,025 | ||
| Advisory and commission expense | 3,507,164 | 3,291,209 | 2,483,165 | ||||
| Brokerage, clearing and exchange expense | 52,018 | 55,475 | 43,290 | ||||
| Employee deferred compensation | 9,178 | (961 | ) | 4,293 | |||
| Gross profit | $ | 1,618,263 | $ | 1,592,711 | $ | 1,304,277 | |
(6) Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate):
| Q2 2026 | Q1 2026 | Q2 2025 | |||||||
| Advisory and commission expense | $ | 3,507,164 | $ | 3,291,209 | $ | 2,483,165 | |||
| Plus (Less): Advisor deferred compensation | (128,203 | ) | 29,318 | (76,473 | ) | ||||
| Production-based payout | $ | 3,378,961 | $ | 3,320,527 | $ | 2,406,692 | |||
| Advisory and commission revenue | $ | 3,864,478 | $ | 3,807,081 | $ | 2,755,825 | |||
| Payout rate | 87.44 | % | 87.22 | % | 87.33 | % | |||
(7) Below is a reconciliation of client cash revenue per Management's Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company's condensed consolidated statements of income for the periods presented (in thousands):
| Q2 2026 | Q1 2026 | Q2 2025 | |||||||
| Client cash on Management's Statements of Operations | $ | 456,945 | $ | 459,653 | $ | 413,516 | |||
| Interest income on CCA balances segregated under federal or other regulations(9) | (13,444 | ) | (14,328 | ) | (16,184 | ) | |||
| Client cash on Condensed Consolidated Statements of Income | $ | 443,501 | $ | 445,325 | $ | 397,332 | |||
(8) Consists of revenue from the Company's sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs.
(9) Below is a reconciliation of interest income, net per Management's Statements of Operations to interest income, net on the Company's condensed consolidated statements of income for the periods presented (in thousands):
| Q2 2026 | Q1 2026 | Q2 2025 | ||||
| Interest income, net on Management's Statements of Operations | $ | 33,027 | $ | 30,835 | $ | 60,738 |
| Interest income on CCA balances segregated under federal or other regulations(7) | 13,444 | 14,328 | 16,184 | |||
| Interest income on deferred compensation(10) | 56 | 17 | 19 | |||
| Interest income, net on Condensed Consolidated Statements of Income | $ | 46,527 | $ | 45,180 | $ | 76,941 |
(10) Below is a reconciliation of other revenue per Management's Statements of Operations to other revenue on the Company's condensed consolidated statements of income for the periods presented (in thousands):
| Q2 2026 | Q1 2026 | Q2 2025 | |||||||
| Other revenue on Management's Statements of Operations | $ | 11,054 | $ | 4,138 | $ | 6,785 | |||
| Interest income on deferred compensation(9) | (56 | ) | (17 | ) | (19 | ) | |||
| Deferred compensation | 137,381 | (30,279 | ) | 80,766 | |||||
| Other revenue on Condensed Consolidated Statements of Income | $ | 148,379 | $ | (26,158 | ) | $ | 87,532 | ||
(11) Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company's total expense to core G&A for the periods presented (in thousands):
| Q2 2026 | Q1 2026 | Q2 2025 | |||||||
| Core G&A Reconciliation | |||||||||
| Total expense | $ | 4,671,119 | $ | 4,453,850 | $ | 3,466,221 | |||
| Advisory and commission | (3,507,164 | ) | (3,291,209 | ) | (2,483,165 | ) | |||
| Depreciation and amortization | (109,805 | ) | (105,751 | ) | (96,231 | ) | |||
| Interest expense on borrowings(16) | (101,502 | ) | (100,292 | ) | (105,636 | ) | |||
| Brokerage, clearing and exchange | (52,018 | ) | (55,475 | ) | (43,290 | ) | |||
| Amortization of other intangibles | (70,886 | ) | (67,230 | ) | (46,103 | ) | |||
| Employee deferred compensation | (9,178 | ) | 961 | (4,2