Highlights

  • LPL Financial reported third quarter 2026 net income of $357 million, or diluted earnings per share of $4.52.
  • Adjusted EPS, a non-GAAP measure, was $5.97 in the third quarter, and gross profit was $1,662 million.
  • The company expects approximately 83% Commonwealth asset retention and run-rate EBITDA of $415 million, as conversion nears.
  • Core G&A outlook for 2026 was narrowed to $2,140-2,160 million, and a $0.30 per share dividend was declared.

LPL Financial Holdings Inc. (NASDAQ:LPLA) shares were trading at USD 273.26 on October 28, 2026, down 13.95%, with a relative volume at time of 13.92. The wealth management firm reported results for the third quarter ended September 30, 2026 on October 27, 2026, updated its Commonwealth Financial Network expectations and declared a dividend.

LPL Financial Holdings Inc. is incorporated in Delaware and lists its principal executive offices in San Diego, California. The company states that it supports more than 32,000 financial advisors and the wealth management practices of approximately 1,100 financial institutions. It services and custodies approximately $2.6 trillion in assets on behalf of approximately 8 million Americans. The firm provides advisor affiliation models, investment solutions, fintech tools and practice management services to advisors and institutions.

Third Quarter 2026 Results

LPL Financial reported net income of $357 million, or $4.52 per diluted share, for the third quarter of 2026. This compares with a net loss of $30 million, or $0.37 per share, in the third quarter of 2025 and net income of $379 million, or $4.74 per share, in the prior quarter. Total revenue was $5,344,030 thousand, compared with $4,551,977 thousand in the third quarter of 2025.

On a non-GAAP basis, adjusted EPS increased 15% year-over-year to $5.97. Gross profit, also non-GAAP, increased 12% year-over-year to $1,662 million. Core G&A increased 11% year-over-year to $532 million, and adjusted pre-tax income increased 13% year-over-year to $641 million.

For the nine months ended September 30, 2026, net income was $1,092,226 thousand, or $13.68 per diluted share, compared with $562,305 thousand, or $7.15 per diluted share, in the same period of 2025.

Client Assets and Capital

Total client assets increased 11% year-over-year to $2.6 trillion. Advisory assets increased 16% year-over-year to $1.6 trillion, and advisory assets were 60.9% of total client assets, compared with 58.2% a year ago. Total organic net new assets were $29 billion, representing 5% annualized growth. Recruited assets were $24 billion, down 26% from a year ago, and $81 billion over the trailing twelve months. Total client cash balances were $57 billion, consistent with the prior quarter.

Corporate cash was $563 million, and the leverage ratio was 1.93x. Share repurchases were $301 million and dividends paid were $24 million. At September 30, 2026, cash and equivalents were $1,059,019 thousand, corporate debt and other borrowings, net were $7,802,917 thousand, and total stockholders' equity was $5,812,318 thousand.

Commonwealth and Other Developments

LPL Financial said it is on track to complete the conversion of Commonwealth Financial Network in the fourth quarter of 2026. Asset retention is now expected to be approximately 83%, and estimated run-rate EBITDA is now expected to be $415 million. On the call, management said the previous retention expectation was 90% and that it expected to onboard advisors in mid-November.

The company deployed approximately $20 million of capital to close three Liquidity and Succession deals in the third quarter.

The Board of Directors declared a $0.30 per share dividend to be paid on November 30, 2026 to all stockholders as of November 12, 2026.

Outlook

Given performance to date, LPL Financial narrowed its 2026 Core G&A outlook range to $2,140-2,160 million, including expenses related to Commonwealth. Core G&A is a non-GAAP measure.

On the call, management said it expects the following for the fourth quarter: transition assistance loan amortization of approximately $160 million, depreciation and amortization of roughly $130 million, and an insured cash account yield higher by approximately 20 basis points. Management also said it planned an additional $300 million of share repurchases in the fourth quarter and expected October organic growth in the zone of 3%.