LPL Financial Announces First Quarter 2025 Results

Key Financial Results:

• Net Income was $319 million, translating to diluted earnings per share ("EPS") of $4.24, up 11% from a year ago
• Adjusted EPS* increased 22% year-over-year to $5.15
  • Gross profit* increased 19% year-over-year to $1,273 million
  • Core G&A* increased 14% year-over-year to $413 million
  • Adjusted pre-tax income* increased 23% year-over-year to $509 million
    
    

Key Business Results:

• Total advisory and brokerage assets increased 25% year-over-year to $1.8 trillion
  • Advisory assets increased 23% year-over-year to $977 billion
  • Advisory assets as a percentage of total assets decreased to 54.5%, down from 55.0% a year ago
• Total organic net new assets were $71 billion, representing 16% annualized growth
  • This included $27 billion of assets from Prudential Advisors ("Prudential") and $16 billion of assets from Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, "Wintrust") that onboarded during the first quarter, as well as $0.7 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Prior to these impacts, organic net new assets were $29 billion, translating to a 7% annualized growth rate
• Recruited assets⁽¹⁾ were $39 billion, up 91% from a year ago
  • Recruited assets over the trailing twelve months were a record of $167 billion
• Total client cash balances were $53 billion, a decrease of $2 billion sequentially and an increase of $7 billion year-over-year
  • Client cash balances as a percentage of total assets were 3.0%, down from 3.2% in the prior quarter and prior year
    
    

Key Capital and Liquidity Results:

• Corporate cash⁽²⁾ was $621 million
• Leverage ratio⁽³⁾ was 1.82x
• Share repurchases were $100 million and dividends paid were $22.4 million

*See the Non-GAAP Financial Measures section and the endnotes to this release for further details about these non-GAAP financial measures

Key Updates

Large Institutions:

• Prudential: Completed the onboarding of Prudential, with $67 billion of brokerage and advisory assets, of which $27 billion transitioned onto our platform in Q1
• Wintrust: Onboarded Wintrust, with $16 billion of brokerage and advisory assets transitioning onto our platform in Q1
• First Horizon Bank ("First Horizon"): In April 2025, announced a strategic relationship agreement with First Horizon to transition support of the broker-dealer and investment advisory services of First Horizon Advisors, Inc., to LPL's Institution Services platform, expected to be completed in the second half of 2025. First Horizon supports approximately 110 financial advisors who collectively serve $16 billion of client assets
  
  

M&A:

• Commonwealth Financial Network ("Commonwealth"): Announced a definitive purchase agreement to acquire Commonwealth, a privately-held independent wealth management firm headquartered in Massachusetts. Commonwealth supports approximately 3,000 advisors in the U.S., managing $285 billion of brokerage and advisory assets. The Company expects to close the transaction in the second half of 2025, subject to receipt of regulatory approvals and other closing conditions. Conversion is expected to be completed in mid-2026
• Atria Wealth Solutions, Inc. ("Atria"): On-track to complete the conversion in mid-2025
• The Investment Center, Inc. ("The Investment Center"): Closed on the acquisition of The Investment Center, with $7 billion of brokerage and advisory assets
• Liquidity & Succession: Deployed approximately $100 million of capital to close 10 deals in Q1, including one external practice

Capital Management:

• Common Stock Offering: In April 2025, issued $1.7 billion of common stock at a price of $320 per share. Net proceeds from the common stock offering are expected to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth
• Corporate Debt:
  • In February 2025, issued $1.25 billion of senior unsecured notes, including $750 million of 5.200% notes due 2030 and $500 million of 5.650% notes due 2035. Net proceeds from this offering were used to repay outstanding borrowings under the Company's revolving credit facility
  • In April 2025, issued $1.50 billion of senior unsecured notes, including $500 million of 4.900% notes due 2028, $500 million of 5.150% notes due 2030 and $500 million of 5.750% notes due 2035. Net proceeds from this offering are expected to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth

Core G&A:

• Lowered the upper end of our 2025 Core G&A* outlook range by $15 million, resulting in an updated range of $1,730 million to $1,765 million. This includes $170 million to $180 million related to Prudential and Atria, but is prior to costs associated with Commonwealth
  
  

SAN DIEGO, May 08, 2025 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (NASDAQ:LPLA) (the "Company") today announced results for its first quarter ended March 31, 2025, reporting net income of $319 million, or $4.24 per share. This compares with $289 million, or $3.83 per share, in the first quarter of 2024 and $271 million, or $3.59 per share, in the prior quarter.

"It's been a strong start to the year for LPL," said Rich Steinmeier, CEO. "We delivered another quarter of strong business performance, reported excellent financial results, and reached an agreement to acquire Commonwealth, significantly accelerating our progress toward our vision to be the best firm in wealth management."

"In the first quarter, we delivered solid business performance and financial results," said Matt Audette, President and CFO. "We onboarded Prudential and Wintrust and are preparing to onboard First Horizon later this year. As a complement to our strong organic growth, we closed and onboarded the acquisition of The Investment Center in March, continue to prepare to onboard our Atria advisors, and lastly, entered into an agreement to acquire Commonwealth Financial Network. Looking ahead, our business momentum and financial strength position us well to continue delivering shareholder value."

Dividend Declaration

The Company's Board of Directors declared a $0.30 per share dividend to be paid on June 12, 2025 to all stockholders of record as of May 30, 2025.

Conference Call and Additional Information

The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, May 8, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.

Contacts

Investor Relations

[email protected]

Media Relations

[email protected]

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 over 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.8 trillion in brokerage and advisory assets on behalf of approximately 7 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.

Forward-Looking Statements

This press release contains statements regarding:

• the expected closing of the Company's acquisition of Commonwealth;
• the use of proceeds from the issuance of common stock and senior notes to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth;
• the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Atria, Commonwealth, First Horizon and The Investment Center;
• 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, promotional expense, interest expense and income, depreciation and amortization, leverage ratio (including plans to reduce leverage) 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 May 8, 2025 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:

• the failure to satisfy the closing conditions applicable to the Company's purchase agreement with Commonwealth, including regulatory approvals;
• 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 Atria, Commonwealth, First Horizon, and The Investment Center 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
	March 31,			December 31,				March 31,
		2025			2024	Change			2024	Change
REVENUE
Advisory	$	1,689,245		$	1,595,834	6	%	$	1,199,811	41	%
Commission:
Sales-based		610,038			525,795	16	%		385,235	58	%
Trailing		437,719			439,668	—	%		361,211	21	%
Total commission		1,047,757			965,463	9	%		746,446	40	%
Asset-based:
Client cash		392,031			378,816	3	%		352,382	11	%
Other asset-based		303,210			290,962	4	%		248,339	22	%
Total asset-based		695,241			669,778	4	%		600,721	16	%
Service and fee		145,199			139,119	4	%		132,172	10	%
Transaction		67,864			61,535	10	%		57,258	19	%
Interest income, net		43,851			46,680	(6	%)		43,525	1	%
Other		(19,150	)		33,942	n/m			52,660	n/m
Total revenue		3,670,007			3,512,351	4	%		2,832,593	30	%
EXPENSE
Advisory and commission		2,353,925			2,250,427	5	%		1,733,487	36	%
Compensation and benefits		305,546			321,933	(5	%)		274,369	11	%
Promotional		145,645			162,057	(10	%)		126,619	15	%
Depreciation and amortization		92,356			92,032	—	%		67,158	38	%
Interest expense on borrowings		85,862			81,979	5	%		60,082	43	%
Occupancy and equipment		77,240			75,538	2	%		66,264	17	%
Brokerage, clearing and exchange		44,138			34,789	27	%		30,532	45	%
Amortization of other intangibles		43,521			42,614	2	%		29,552	47	%
Professional services		36,326			32,055	13	%		13,279	174	%
Communications and data processing		19,506			18,772	4	%		19,744	(1	%)
Other		48,689			58,874	(17	%)		37,315	30	%
Total expense		3,252,754			3,171,070	3	%		2,458,401	32	%
INCOME BEFORE PROVISION FOR INCOME TAXES		417,253			341,281	22	%		374,192	12	%
PROVISION FOR INCOME TAXES		98,680			70,532	40	%		85,428	16	%
NET INCOME	$	318,573		$	270,749	18	%	$	288,764	10	%
EARNINGS PER SHARE
Earnings per share, basic	$	4.27		$	3.62	18	%	$	3.87	10	%
Earnings per share, diluted	$	4.24		$	3.59	18	%	$	3.83	11	%
Weighted-average shares outstanding, basic		74,600			74,785	—	%		74,562	—	%
Weighted-average shares outstanding, diluted		75,112			75,337	—	%		75,463	—	%

LPL Financial Holdings Inc. Condensed Consolidated Statements of Financial Condition (In thousands, except share data) (Unaudited)
	March 31, 2025			December 31, 2024
ASSETS
Cash and equivalents	$	1,229,181		$	967,079
Cash and equivalents segregated under federal or other regulations		1,513,037			1,597,249
Restricted cash		112,458			119,724
Receivables from clients, net		613,766			633,834
Receivables from brokers, dealers and clearing organizations		112,249			76,545
Advisor loans, net		2,468,033			2,281,088
Other receivables, net		939,411			902,777
Investment securities ($122,729 and $42,267 at fair value at March 31, 2025 and December 31, 2024, respectively)		138,007			57,481
Property and equipment, net		1,237,693			1,210,027
Goodwill		2,213,100			2,172,873
Other intangibles, net		1,570,558			1,482,988
Other assets		1,815,729			1,815,739
Total assets	$	13,963,222		$	13,317,404
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Client payables	$	2,045,285		$	1,898,665
Payables to brokers, dealers and clearing organizations		252,035			129,228
Accrued advisory and commission expenses payable		303,837			323,996
Corporate debt and other borrowings, net		5,686,678			5,494,724
Accounts payable and accrued liabilities		479,803			588,450
Other liabilities		2,071,801			1,951,739
Total liabilities		10,839,439			10,386,802
STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value; 600,000,000 shares authorized; 131,194,549 shares and 130,914,541 shares issued at March 31, 2025 and December 31, 2024, respectively		131			131
Additional paid-in capital		2,089,155			2,066,268
Treasury stock, at cost — 56,611,181 shares and 56,253,909 shares at March 31, 2025 and December 31, 2024, respectively		(4,331,582	)		(4,202,322	)
Retained earnings		5,366,079			5,066,525
Total stockholders' equity		3,123,783			2,930,602
Total liabilities and stockholders' equity	$	13,963,222		$	13,317,404

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
	Q1 2025			Q4 2024			Change		Q1 2024			Change
Gross Profit(5)
Advisory	$	1,689,245		$	1,595,834		6	%	$	1,199,811		41	%
Trailing commissions		437,719			439,668		—	%		361,211		21	%
Sales-based commissions		610,038			525,795		16	%		385,235		58	%
Advisory fees and commissions		2,737,002			2,561,297		7	%		1,946,257		41	%
Production-based payout(6)		(2,374,368	)		(2,248,674	)	6	%		(1,686,332	)	41	%
Advisory fees and commissions, net of payout		362,634			312,623		16	%		259,925		40	%
Client cash(7)		408,224			397,001		3	%		373,408		9	%
Other asset-based(8)		303,210			290,962		4	%		248,339		22	%
Service and fee		145,199			139,119		4	%		132,172		10	%
Transaction		67,864			61,535		10	%		57,258		19	%
Interest income, net(9)		27,637			28,481		(3	%)		22,482		23	%
Other revenue(10)		2,023			32,705		(94	%)		3,382		(40	%)
Total net advisory fees and commissions and attachment revenue		1,316,791			1,262,426		4	%		1,096,966		20	%
Brokerage, clearing and exchange expense		(44,138	)		(34,789	)	27	%		(30,532	)	45	%
Gross Profit(5)		1,272,653			1,227,637		4	%		1,066,434		19	%
G&A Expense
Core G&A(11)		413,069			421,894		(2	%)		363,513		14	%
Regulatory charges		6,887			7,335		(6	%)		7,469		(8	%)
Promotional (ongoing)(12)(13)		151,932			173,191		(12	%)		132,311		15	%
Acquisition costs excluding interest(13)		43,407			37,261		16	%		9,524		n/m
Employee share-based compensation		18,366			26,067		(30	%)		22,633		(19	%)
Total G&A		633,661			665,748		(5	%)		535,450		18	%
Loss on extinguishment of debt		—			3,983		(100	%)		—		—	%
EBITDA(14)		638,992			557,906		15	%		530,984		20	%
Depreciation and amortization		92,356			92,032		—	%		67,158		38	%
Amortization of other intangibles		43,521			42,614		2	%		29,552		47	%
Interest expense on borrowings(15)		80,725			81,979		(2	%)		60,082		34	%
Acquisition costs - interest(13)		5,137			—		100	%		—		100	%
INCOME BEFORE PROVISION FOR INCOME TAXES		417,253			341,281		22	%		374,192		12	%
PROVISION FOR INCOME TAXES		98,680			70,532		40	%		85,428		16	%
NET INCOME	$	318,573		$	270,749		18	%	$	288,764		10	%
Earnings per share, diluted	$	4.24		$	3.59		18	%	$	3.83		11	%
Weighted-average shares outstanding, diluted		75,112			75,337		—	%		75,463		—	%
Adjusted EBITDA(14)	$	682,399		$	584,783		17	%	$	540,508		26	%
Adjusted pre-tax income(16)	$	509,318		$	410,772		24	%	$	413,268		23	%
Adjusted EPS(17)	$	5.15		$	4.25		21	%	$	4.21		22	%

LPL Financial Holdings Inc. Operating Metrics (Dollars in billions, except where noted) (Unaudited)
	Q1 2025			Q4 2024			Change	Q1 2024			Change
Market Drivers
S&P 500 Index (end of period)		5,612			5,882		(5%)		5,254		7%
Russell 2000 Index (end of period)		2,012			2,230		(10%)		2,125		(5%)
Fed Funds daily effective rate (average bps)		433			466		(33bps)		533		(100bps)
Advisory and Brokerage Assets(18)
Advisory assets	$	977.4		$	957.0		2%	$	793.0		23%
Brokerage assets		817.5			783.7		4%		647.9		26%
Total Advisory and Brokerage Assets	$	1,794.9		$	1,740.7		3%	$	1,440.9		25%
Advisory as a % of Total Advisory and Brokerage Assets		54.5	%		55.0	%	(50bps)		55.0	%	(50bps)
Assets by Platform
Corporate advisory assets(19)	$	699.1		$	678.3		3%	$	537.6		30%
Independent RIA advisory assets(19)		278.3			278.7		—%		255.4		9%
Brokerage assets		817.5			783.7		4%		647.9		26%
Total Advisory and Brokerage Assets	$	1,794.9		$	1,740.7		3%	$	1,440.9		25%
Centrally Managed Assets
Centrally managed assets(20)	$	164.4		$	160.0		3%	$	121.7		35%
Centrally Managed as a % of Total Advisory Assets		16.8	%		16.7	%	10bps		15.3	%	150bps

LPL Financial Holdings Inc. Operating Metrics (Dollars in billions, except where noted) (Unaudited)
	Q1 2025			Q4 2024			Change	Q1 2024			Change
Organic Net New Assets (NNA)(21)
Organic net new advisory assets	$	35.7		$	49.3		n/m	$	16.2		n/m
Organic net new brokerage assets		35.2			18.8		n/m		0.5		n/m
Total Organic Net New Assets	$	70.9		$	68.0		n/m	$	16.7		n/m
Acquired Net New Assets(21)
Acquired net new advisory assets	$	1.9		$	21.8		n/m	$	—		n/m
Acquired net new brokerage assets		6.0			67.5		n/m		—		n/m
Total Acquired Net New Assets	$	7.9		$	89.3		n/m	$	—		n/m
Total Net New Assets(21)
Net new advisory assets	$	37.6		$	71.1		n/m	$	16.2		n/m
Net new brokerage assets		41.2			86.2		n/m		0.5		n/m
Total Net New Assets	$	78.8		$	157.3		n/m	$	16.7		n/m
Net brokerage to advisory conversions(22)	$	5.9		$	4.8		n/m	$	3.6		n/m
Organic advisory NNA annualized growth(23)		14.9	%		22.1	%	n/m		8.8	%	n/m
Total organic NNA annualized growth(23)		16.3	%		17.1	%	n/m		4.9	%	n/m
Net New Advisory Assets(21)
Corporate RIA net new advisory assets	$	31.7		$	64.5		n/m	$	13.9		n/m
Independent RIA net new advisory assets		5.9			6.6		n/m		2.3		n/m
Total Net New Advisory Assets	$	37.6		$	71.1		n/m	$	16.2		n/m
Centrally managed net new advisory assets(21)	$	6.5		$	24.9		n/m	$	3.6		n/m
Net buy (sell) activity(24)	$	42.0		$	38.3		n/m	$	37.8		n/m

_{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc. Client Cash Data (Dollars in thousands, except where noted) (Unaudited)
	Q1 2025			Q4 2024			Change	Q1 2024			Change
Client Cash Balances (in billions)(25)
Insured cash account sweep	$	36.1		$	38.3		(6%)	$	32.6		11%
Deposit cash account sweep		10.7			10.7		—%		9.2		16%
Total Bank Sweep		46.8			49.0		(4%)		41.8		12%
Money market sweep		4.3			4.3		—%		2.4		79%
Total Client Cash Sweep Held by Third Parties		51.1			53.3		(4%)		44.2		16%
Client cash account (CCA)		1.9			1.8		6%		2.1		(10%)
Total Client Cash Balances	$	53.1		$	55.1		(4%)	$	46.3		15%
Client Cash Balances as a % of Total Assets		3.0	%		3.2	%	(20bps)		3.2	%	(20bps)

_{Note: Totals may not foot due to rounding.}

	Three Months Ended
	March 31, 2025					December 31, 2024					March 31, 2024
Interest-Earnings Assets	Average Balance (in billions)		Revenue		Net Yield (bps)(26)	Average Balance (in billions)		Revenue		Net Yield (bps)(26)	Average Balance (in billions)		Revenue		Net Yield (bps)(26)
Insured cash account sweep	$	36.0	$	299,618	337	$	34.8	$	292,661	335	$	33.2	$	266,792	323
Deposit cash account sweep		10.2		89,728	356		9.8		83,879	340		8.9		83,978	378
Total Bank Sweep		46.2		389,346	341		44.6		376,540	336		42.1		350,770	335
Money market sweep		4.1		2,685	26		3.3		2,277	28		2.3		1,612	28
Total Client Cash Held By Third Parties		50.4		392,031	316		47.9		378,817	315		44.4		352,382	319
Client cash account (CCA)		1.8		16,193	368		1.8		18,184	407		1.8		21,026	467
Total Client Cash		52.2		408,224	317		49.7		397,001	318		46.2		373,408	325
Margin receivables		0.6		11,444	789		0.6		11,506	829		0.5		10,249	890
Other interest revenue		1.3		16,193	512		1.3		16,975	524		0.9		12,233	535
Total Client Cash and Interest Income, Net	$	54.0	$	435,861	327	$	51.6	$	425,482	329	$	47.6	$	395,890	334

_{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc. Monthly Metrics (Dollars in billions, except where noted) (Unaudited)
	March 2025		February 2025		Change	January 2025		December 2024
Advisory and Brokerage Assets(18)
Advisory assets	$	977.4	$	995.0	(2%)	$	992.4	$	957.0
Brokerage assets		817.5		828.2	(1%)		819.4		783.7
Total Advisory and Brokerage Assets	$	1,794.9	$	1,823.1	(2%)	$	1,811.8	$	1,740.7
Organic Net New Assets (NNA)(21)
Organic net new advisory assets	$	12.7	$	9.6	n/m	$	13.4	$	12.5
Organic net new brokerage assets		0.5		14.1	n/m		20.5		12.9
Total Organic Net New Assets	$	13.1	$	23.8	n/m	$	34.0	$	25.5
Acquired Net New Assets(21)
Acquired net new advisory assets	$	1.8	$	—	n/m	$	0.1	$	—
Acquired net new brokerage assets		5.3		0.7	n/m		—	$	0.2
Total Acquired Net New Assets	$	7.1	$	0.7	n/m	$	0.1	$	0.3
Total Net New Assets(21)
Net new advisory assets	$	14.5	$	9.6	n/m	$	13.5	$	12.6
Net new brokerage assets		5.8		14.8	n/m		20.6		13.2
Total Net New Assets	$	20.2	$	24.5	n/m	$	34.1	$	25.8
Net brokerage to advisory conversions(22)	$	1.9	$	1.9	n/m	$	2.1	$	2.0
Client Cash Balances(25)
Insured cash account sweep	$	36.1	$	35.6	1%	$	36.2	$	38.3
Deposit cash account sweep		10.7		10.2	5%		10.0		10.7
Total Bank Sweep		46.8		45.8	2%		46.3		49.0
Money market sweep		4.3		4.0	8%		4.1		4.3
Total Client Cash Sweep Held by Third Parties		51.1		49.8	3%		50.4		53.3
Client cash account (CCA)		1.9		1.5	27%		1.8		1.8
Total Client Cash Balances	$	53.1	$	51.3	4%	$	52.2	$	55.1
Net buy (sell) activity(24)	$	13.2	$	14.3	n/m	$	14.5	$	13.5
Market Drivers
S&P 500 Index (end of period)		5,612		5,955	(6%)		6,041		5,882
Russell 2000 Index (end of period)		2,012		2,163	(7%)		2,288		2,230
Fed Funds effective rate (average bps)		433		433	—bps		433		448

_{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc. Financial Measures (Dollars in thousands, except where noted) (Unaudited)
	Q1 2025			Q4 2024			Change	Q1 2024			Change
Commission Revenue by Product
Annuities	$	615,594		$	561,918		10%	$	436,473		41%
Mutual funds		233,895			232,529		1%		186,540		25%
Fixed income		61,553			59,332		4%		48,641		27%
Equities		49,074			45,829		7%		35,451		38%
Other		87,641			65,855		33%		39,341		123%
Total commission revenue	$	1,047,757		$	965,463		9%	$	746,446		40%
Commission Revenue by Sales-based and Trailing
Sales-based commissions
Annuities	$	365,767		$	314,591		16%	$	229,077		60%
Mutual funds		55,607			52,908		5%		43,496		28%
Fixed income		61,553			59,332		4%		48,641		27%
Equities		49,074			45,829		7%		35,451		38%
Other		78,037			53,135		47%		28,570		173%
Total sales-based commissions	$	610,038		$	525,795		16%	$	385,235		58%
Trailing commissions
Annuities	$	249,827		$	247,327		1%	$	207,396		20%
Mutual funds		178,288			179,621		(1%)		143,044		25%
Other		9,604			12,720		(24%)		10,771		(11%)
Total trailing commissions	$	437,719		$	439,668		—%	$	361,211		21%
Total commission revenue	$	1,047,757		$	965,463		9%	$	746,446		40%
Payout Rate(6)		86.75	%		87.79	%	(104bps)		86.64	%	11bps

LPL Financial Holdings Inc. Capital Management Measures (Dollars in thousands, except where noted) (Unaudited)
	Q1 2025			Q4 2024
Cash and equivalents	$	1,229,181		$	967,079
Cash at regulated subsidiaries		(1,085,459	)		(884,779	)
Excess cash at regulated subsidiaries per the Credit Agreement		476,908			397,138
Corporate Cash(2)	$	620,630		$	479,438
Corporate Cash(2)
Cash at LPL Holdings, Inc.	$	104,080		$	39,782
Excess cash at regulated subsidiaries per the Credit Agreement		476,908			397,138
Cash at non-regulated subsidiaries		39,642			42,518
Corporate Cash	$	620,630		$	479,438
Leverage Ratio
Total debt	$	5,720,000		$	5,517,000
Total corporate cash		620,630			479,438
Credit Agreement Net Debt	$	5,099,370		$	5,037,562
Credit Agreement EBITDA (trailing twelve months)(27)	$	2,797,285		$	2,665,033
Leverage Ratio	1.82x			1.89x

	March 31, 2025
Total Debt	Balance		Current Applicable Margin	Interest Rate		Maturity
Revolving Credit Facility(a)	$	—	ABR+37.5 bps / SOFR+147.5 bps	5.794	%	5/20/2029
Broker-Dealer Revolving Credit Facility		—	SOFR+135 bps	5.760	%	5/19/2025
Senior Unsecured Term Loan A		1,020,000	SOFR+147.5 bps(b)	5.798	%	12/5/2026
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		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		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
Total / Weighted Average	$	5,720,000		5.376	%

<sub>(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.</sub>

LPL Financial Holdings Inc. Key Business and Financial Metrics (Dollars in thousands, except where noted) (Unaudited)
	Q1 2025			Q4 2024			Change	Q1 2024			Change
Business Metrics
Advisors		29,493			28,888		2%		22,884		29%
Net new advisors		605			5,202		(88%)		224		170%
Annualized advisory fees and commissions per advisor(28)	$	375		$	390		(4%)	$	342		10%
Average total assets per advisor ($ in millions)(29)	$	60.9		$	60.3		1%	$	63.0		(3%)
Transition assistance loan amortization ($ in millions)(30)	$	81.8		$	76.3		7%	$	58.3		40%
Total client accounts (in millions)		10.4			10.0		4%		8.4		24%
Recruited AUM ($ in billions)		38.6			78.7		(51%)		20.2		91%
Employees(31)		9,118			9,051		1%		8,252		10%
AUM retention rate (quarterly annualized)(32)		98.2	%		97.3	%	90bps		97.4	%	80bps
Capital Management
Capital expenditures ($ in millions)(33)	$	119.5		$	165.5		(28%)	$	121.0		(1%)
Acquisitions, net ($ in millions)(34)	$	95.1		$	847.9		(89%)	$	10.2		n/m
Share repurchases ($ in millions)	$	100.0		$	100.0		—%	$	70.0		43%
Dividends ($ in millions)		22.4			22.5		—%		22.4		—%
Total Capital Returned ($ in millions)	$	122.4		$	122.5		—%	$	92.4		32%

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, acquisition costs, losses on extinguishment of debt, and amounts related to the departure of the Company's former Chief Executive Officer, 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, acquisition costs, and certain other charges 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; losses on extinguishment of debt; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. 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, amounts related to the departure of the Company's former Chief Executive Officer, and losses on extinguishment of debt. 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, acquisition costs, amounts related to the departure of the Company's former Chief Executive Officer, and losses on extinguishment of debt. 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 advisory and brokerage 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 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 certain of Atria's introducing broker-dealer subsidiaries, 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, 2024 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):

		Q1 2025			Q4 2024			Q1 2024
	Total revenue(a)	$	3,670,007		$	3,512,351		$	2,832,593
	Advisory and commission expense		2,353,925			2,250,427			1,733,487
	Brokerage, clearing and exchange expense		44,138			34,789			30,532
	Employee deferred compensation		(709	)		(502	)		2,140
	Gross profit(a)	$	1,272,653		$	1,227,637		$	1,066,434

	(a)	The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.

(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):

		Q1 2025			Q4 2024			Q1 2024
	Advisory and commission expense	$	2,353,925		$	2,250,427		$	1,733,487
	Plus (Less): Advisor deferred compensation		20,443			(1,753	)		(47,155	)
	Production-based payout	$	2,374,368		$	2,248,674		$	1,686,332
	Advisory and commission revenue	$	2,737,002		$	2,561,297		$	1,946,257
	Payout rate		86.75	%		87.79	%		86.64	%

(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):

 

		Q1 2025			Q4 2024			Q1 2024
	Client cash on Management's Statement of Operations	$	408,224		$	397,001		$	373,408
	Interest income on CCA balances segregated under federal or other regulations(9)		(16,193	)		(18,185	)		(21,026	)
	Client cash on Condensed Consolidated Statements of Income	$	392,031		$	378,816		$	352,382

(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):

		Q1 2025		Q4 2024		Q1 2024
	Interest income, net on Management's Statement of Operations	$	27,637	$	28,481	$	22,482
	Interest income on CCA balances segregated under federal or other regulations(7)		16,193		18,185		21,026
	Interest income on deferred compensation		21		14		17
	Interest income, net on Condensed Consolidated Statements of Income	$	43,851	$	46,680	$	43,525

(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):

      

		Q1 2025			Q4 2024			Q1 2024
	Other revenue on Management's Statement of Operations(a)	$	2,023		$	32,705		$	3.382
	Interest income on deferred compensation		(21	)		(14	)		(17	)
	Deferred compensation		(21,152	)		1,251			49,295
	Other revenue on Condensed Consolidated Statements of Income	$	(19,150	)	$	33,942		$	52,660

	(a)	The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.

(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):

		Q1 2025			Q4 2024			Q1 2024
	Core G&A Reconciliation
	Total expense	$	3,252,754		$	3,171,070		$	2,458,401
	Advisory and commission		(2,353,925	)		(2,250,427	)		(1,733,487	)
	Depreciation and amortization		(92,356	)		(92,032	)		(67,158	)
	Interest expense on borrowings(15)		(85,862	)		(81,979	)		(60,082	)
	Brokerage, clearing and exchange		(44,138	)		(34,789	)		(30,532	)
	Amortization of other intangibles		(43,521	)		(42,614	)		(29,552	)
	Employee deferred compensation		709			502			(2,140	)
	Loss on extinguishment of debt		—			(3,983	)		(—	)
	Total G&A		633,661			665,748			535,450
	Promotional (ongoing)(12)(13)		(151,932	)		(173,191	)		(132,311	)
	Acquisition costs excluding interest(13)		(43,407	)		(37,261	)		(9,524	)
	Employee share-based compensation		(18,366	)		(26,067	)		(22,633	)
	Regulatory charges		(6,887	)		(7,335	)		(7,469	)
	Core G&A	$	413,069		$	421,894		$	363,513

(12)	Promotional (ongoing) includes $14.8 million, $13.4 million and $8.0 million for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the condensed consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs.
(13)	Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands):

		Q1 2025		Q4 2024		Q1 2024
	Acquisition costs
	Fair value mark on contingent consideration(35)	$	6,594	$	11,249	$	—
	Compensation and benefits		17,417		15,950		3,850
	Professional services		6,145		7,357		3,246
	Promotional(12)		8,538		2,235		2,268
	Interest(15)		5,137		—		—
	Other		4,713		470		160
	Acquisition costs	$	48,544	$	37,261	$	9,524

(14)	EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in thousands):

 

		Q1 2025		Q4 2024			Q1 2024
	EBITDA and adjusted EBITDA Reconciliation
	Net income	$	318,573	$	270,749		$	288,764
	Interest expense on borrowings(15)		85,862		81,979			60,082
	Provision for income taxes		98,680		70,532			85,428
	Depreciation and amortization		92,356		92,032			67,158
	Amortization of other intangibles		43,521		42,614			29,552
	EBITDA	$	638,992	$	557,906		$	530,984
	Acquisition costs excluding interest(13)		43,407		37,261			9,524
	Departure of former Chief Executive Officer(a)		—		(14,367	)		—
	Loss on extinguishment of debt		—		3,983			—
	Adjusted EBITDA	$	682,399	$	584,783		$	540,508

	(a)	The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.

(15)	Below is a reconciliation of interest expense on borrowings per Management's Statements of Operations to interest expense on borrowings on the Company's condensed consolidated statements of income for the periods presented (in thousands):

           

		Q1 2025		Q4 2024		Q1 2024
	Interest expense on borrowings on Management's Statement of Operations	$	80,725	$	81,979	$	60,082
	Cost of debt issuance related to Commonwealth acquisition(13)		5,137		—		—
	Interest expense on borrowings on Condensed Consolidated Statements of Income	$	85,862	$	81,979	$	60,082

(16)	Adjusted pre-tax income is a non-GAAP financial measure. Please see a description of adjusted pre-tax income under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of income before provision for income taxes to adjusted pre-tax income for the periods presented (in thousands):

     

		Q1 2025		Q4 2024			Q1 2024
	Income before provision for income taxes	$	417,253	$	341,281		$	374,192
	Amortization of other intangibles		43,521		42,614			29,552
	Acquisition costs(13)		48,544		37,261			9,524
	Departure of former Chief Executive Officer(a)		—		(14,367	)		—
	Loss on extinguishment of debt		—		3,983			—
	Adjusted pre-tax income	$	509,318	$	410,772		$	413,268

	(a)	The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.

   

(17)

Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data):

 

		Q1 2025						Q4 2024						Q1 2024
		Amount			Per Share			Amount			Per Share			Amount			Per Share
	Net income / earnings per diluted share	$	318,573		$	4.24		$	270,749		$	3.59		$	288,764		$	3.83
	Amortization of other intangibles		43,521			0.58			42,614			0.57			29,552			0.39
	Acquisition costs(13)		48,544			0.65			37,261			0.49			9,524			0.13
	Departure of former Chief Executive Officer(a)		—			—			(14,367	)		(0.19	)		—			—
	Loss on extinguishment of debt		—			—			3,983			0.05			—			—
	Tax benefit		(23,937	)		(0.32	)		(19,978	)		(0.27	)		(10,340	)		(0.14	)
	Adjusted net income / adjusted EPS	$	386,701		$	5.15		$	320,262		$	4.25		$	317,500		$	4.21
	Diluted share count		75,112						75,337						75,463
	Note: Totals may not foot due to rounding.

	(a)	The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.

(18)	Consists of total advisory and brokerage assets under custody at the Company's primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to Atria's seven introducing broker-dealer subsidiaries.
(19)	Assets on the Company's corporate advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company's independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial.
(20)	Consists of advisory assets in LPL Financial's Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.
(21)	Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.
(22)	Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.
(23)	Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.
(24)	Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.
(25)	Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the condensed consolidated balance sheets. The following table presents purchased money market funds for the periods presented (in billions):

 

		Q1 2025		Q4 2024		Q1 2024
	Purchased money market funds	$	44.7	$	41.0	$	32.6

(26)	Calculated by dividing revenue for the period by the average balance during the period.
(27)	EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the "Non-GAAP Financial Measures" section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands):

 

		Q1 2025		Q4 2024
	EBITDA and Credit Agreement EBITDA Reconciliations
	Net income	$	1,088,425	$	1,058,616
	Interest expense on borrowings		299,961		274,181
	Provision for income taxes		347,528		334,276
	Depreciation and amortization		333,725		308,527
	Amortization of other intangibles		149,203		135,234
	EBITDA	$	2,218,842	$	2,110,834
	Credit Agreement Adjustments:
	Acquisition costs and other(13)(36)	$	249,870	$	223,614
	Employee share-based compensation		84,690		88,957
	M&A accretion(37)		237,160		235,048
	Advisor share-based compensation		2,740		2,597
	Loss on extinguishment of debt		3,983		3,983
	Credit Agreement EBITDA	$	2,797,285	$	2,665,033

(28)	Calculated based on the average advisor count from the current period and prior periods.
(29)	Calculated based on the end of period total advisory and brokerage assets divided by end of period advisor count.
(30)	Represents amortization expense on forgivable loans for transition assistance to advisors and institutions.
(31)	During the first quarter of 2025, the Company updated its reporting of employees to include all full-time employees, including those reflected in Core G&A, promotional (ongoing) and advisory and commission expense. Prior period disclosures have been updated to reflect this change as applicable.
(32)	Reflects retention of total advisory and brokerage assets, calculated by deducting quarterly annualized attrition from total advisory and brokerage assets, divided by the prior quarter total advisory and brokerage assets.
(33)	Capital expenditures represent cash payments for property and equipment during the period.
(34)	Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period. Acquisitions, net for the three months ended March 31, 2025 excludes $70.2 million related to The Investment Center, which was prefunded on October 1, 2024 in conjunction with the close of the Atria acquisition, as well as cash inflows associated with working capital and other post-closing adjustments.
(35)	Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the condensed consolidated statements of income.
(36)	Acquisition costs and other primarily include acquisition costs related to Atria, costs incurred related to the integration of the strategic relationship with Prudential, a $26.4 million reduction related to the departure of the Company's former Chief Executive Officer and related clawback of share-based compensation awards, and an $18.0 million regulatory charge recognized during the three months ended September 30, 2024 reflecting the amount of a penalty proposed by the SEC as part of its civil investigation of the Company's compliance with certain elements of the Company's AML compliance program.
(37)	M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of such acquisition.