LPL Financial adjusted EPS rises 15% as client assets reach $2.6 trillion

LPL Financial reported third-quarter adjusted earnings of $5.97 per share, up 15% from a year earlier, as client assets grew to $2.6 trillion, according to its earnings release filed with an 8-K.

The independent broker-dealer and wealth management firm posted net income of $357 million, or $4.52 per diluted share. Gross profit rose 12% to $1,662 million, and adjusted pre-tax income rose 13% to $641 million.

Assets keep growing

Total client assets rose 11% from a year earlier to $2.6 trillion, the release said. Advisory assets climbed 16% to $1.6 trillion, or 60.9% of client assets, up from 58.2% a year earlier. Advisory accounts generally produce steadier fee revenue than brokerage accounts.

Organic net new assets were $29 billion, a 5% annualized growth rate. Recruited assets were $24 billion, down 26% from a year earlier, and $81 billion over the trailing 12 months. Client cash balances were $57 billion.

Commonwealth integration

LPL said it is on track to complete the conversion of Commonwealth Financial Network, the firm it acquired, in the fourth quarter of 2026. It now expects asset retention of about 83% and estimated run-rate EBITDA of $415 million from the deal.

The firm narrowed its 2026 core general and administrative expense outlook to $2,140 million to $2,160 million.

Capital returns

LPL repurchased $301 million of stock and paid $24 million in dividends in the quarter. Its leverage ratio was 1.93 times, and corporate cash was $563 million.

Why it matters

LPL's growth depends on attracting financial advisors and their clients. Recruited assets fell from a strong year-ago period, but organic growth and asset appreciation continued, and the Commonwealth deal adds a large base of advisors. How many of those advisors stay is a key driver of the deal's value.

Sources

1. LPL Financial Holdings Inc. Form 8-K with third-quarter 2026 results, filed Oct. 27, 2026 (accession 0001628280-26-067590)

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