LPL Financial Announces Second Quarter 2025 Results

Key Financial Results: Net Income was $273 million, translating to diluted earnings per share ("EPS") of $3.40, up 5% from a year agoAdjusted EPS* increased 16% year-over-year to $4.51 Gross profit* increased 21% year-over-year to $1,304 millionCore G&A* increased 15% year-over-year to $426 millionAdjusted pre-tax income* increased 23% year-over-year to $490 million Key Business Results: Total advisory and brokerage assets increased 28% year-over-year to $1.9 trillion Advisory assets increased 28% year-over-year to $1.1 trillionAdvisory assets as a percentage of total assets decreased to 55.3%, down from 55.4% a year ago Total organic net new assets were $21 billion, representing 5% annualized growth This included $0.1 billion of assets from Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, "Wintrust"), and $4 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 $24 billion, translating to a 5% annualized growth rate Recruited assets(1) were $18 billion, down 24% from a year ago Recruited assets over the trailing twelve months were $161 billion Total client cash balances were $51 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 2.6%, down from 3.0% in the prior quarter and down from 2.9% in the prior year Key Capital and Liquidity Measures: Corporate cash(2) was $3.6 billionLeverage ratio(3) was 1.23xDividends paid were $24.0 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: First Horizon Bank ("First Horizon"): Expect to onboard in the third quarter of 2025. First Horizon supports approximately 120 advisors, managing approximately $17 billion of brokerage and advisory assets M&A: Atria Wealth Solutions, Inc. ("Atria"): Completed the conversion of Atria to the LPL platformCommonwealth Financial Network ("Commonwealth"): Expect to close the acquisition of Commonwealth on August 1, 2025 and complete the conversion in the fourth quarter of 2026. Commonwealth supports approximately 3,000 advisors in the U.S., managing approximately $305 billion of brokerage and advisory assets(4)Liquidity & Succession: Deployed approximately $105 million of capital to close nine deals in Q2, including one external practice Core G&A: Given our performance to date, we are lowering our 2025 Core G&A* outlook to a range of $1,720-1,750 million, including $170-180 million related to Prudential and AtriaAdditionally, we are increasing the range by $160-170 million to include costs related to the acquisition of Commonwealth, resulting in an updated range of $1,880-1,920 million Capital Management: Debt Rating: On July 14, 2025, Fitch Ratings assigned LPL a long-term issuer default rating of BBB, further improving our profile in the investment grade market SAN DIEGO, July 31, 2025 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq: LPLA) (the "Company") today announced results for its second quarter ended June 30, 2025, reporting net income of $273 million, or $3.40 per share. This compares with $244 million, or $3.23 per share, in the second quarter of 2024 and $319 million, or $4.24 per share, in the prior quarter. "We continue to execute on our vision to be the best firm in wealth management," said Rich Steinmeier, CEO. "In Q2, we delivered another quarter of strong business performance and excellent financial results, while continuing to advance key initiatives." "In the second quarter, we recorded industry-leading organic growth, continued preparation to onboard First Horizon, and successfully onboarded Atria. In addition, we expect to complete our acquisition of Commonwealth tomorrow morning," said Matt Audette, President and CFO. "Looking ahead, our business momentum and financial strength position us well to continue delivering long-term shareholder value." Dividend Declaration The Company's Board of Directors declared a $0.30 per share dividend to be paid on August 29, 2025 to all stockholders of record as of August 15, 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, July 31, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events. Contacts Investor Relationsinvestor.relations@lplfinancial.com Media Relationsmedia.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(5), LPL supports over 29,000 financial advisors and the wealth management practices of approximately 1,100 financial institutions, servicing and custodying approximately $1.9 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 https://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 Company’s retention of Commonwealth advisors following the closing and Commonwealth’s future financial and operating performance;the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Commonwealth and First Horizon;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, tax rate, core G&A expense, promotional expense, interest expense and income, depreciation and amortization, leverage ratio (including plans to reduce leverage), payout rate, corporate cash, run-rate EBITDA, transaction revenue, operating margin and share repurchases; andfuture 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 31, 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;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 and First Horizon 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; andthe 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, 2025 2025 Change 2024 ChangeREVENUE Advisory $1,717,738 $1,689,245 2%$1,288,163 33%Commission: Sales-based 619,792 610,038 2% 423,070 46%Trailing 418,295 437,719 (4%) 363,976 15%Total commission 1,038,087 1,047,757 (1%) 787,046 32%Asset-based: Client cash 397,332 392,031 1% 341,475 16%Other asset-based 305,015 303,210 1% 259,533 18%Total asset-based 702,347 695,241 1% 601,008 17%Service and fee 151,839 145,199 5% 135,000 12%Interest income, net 76,941 43,851 75% 47,478 62%Transaction 60,541 67,864 (11%) 58,935 3%Other 87,532 (19,150)n/m 14,139 n/m Total revenue 3,835,025 3,670,007 4% 2,931,769 31%EXPENSE Advisory and commission 2,483,165 2,353,925 5% 1,819,027 37%Compensation and benefits 319,100 305,546 4% 274,000 16%Promotional 177,552 145,645 22% 136,125 30%Interest expense on borrowings 105,636 85,862 23% 64,341 64%Depreciation and amortization 96,231 92,356 4% 70,999 36%Occupancy and equipment 81,443 77,240 5% 69,529 17%Amortization of other intangibles 46,103 43,521 6% 30,607 51%Brokerage, clearing and exchange 43,290 44,138 (2%) 32,984 31%Professional services 41,092 36,326 13% 22,100 86%Communications and data processing 21,417 19,506 10% 19,406 10%Other 51,192 48,689 5% 62,580 (18%) Total expense 3,466,221 3,252,754 7% 2,601,698 33%INCOME BEFORE PROVISION FOR INCOME TAXES 368,804 417,253 (12%) 330,071 12%PROVISION FOR INCOME TAXES 95,555 98,680 (3%) 86,271 11%NET INCOME $273,249 $318,573 (14%)$243,800 12%EARNINGS PER SHARE Earnings per share, basic $3.42 $4.27 (20%)$3.26 5%Earnings per share, diluted $3.40 $4.24 (20%)$3.23 5%Weighted-average shares outstanding, basic 79,984 74,600 7% 74,725 7%Weighted-average shares outstanding, diluted 80,373 75,112 7% 75,548 6% LPL Financial Holdings Inc.Condensed Consolidated Statements of Income(In thousands, except per share data)(Unaudited) Six Months Ended June 30, 2025 2024 ChangeREVENUE Advisory $3,406,983 $2,487,974 37%Commission: Sales-based 1,229,830 808,305 52%Trailing 856,014 725,187 18%Total commission 2,085,844 1,533,492 36%Asset-based: Client cash 789,363 693,857 14%Other asset-based 608,225 507,872 20%Total asset-based 1,397,588 1,201,729 16%Service and fee 297,038 267,172 11%Transaction 128,405 116,193 11%Interest income, net 120,792 91,003 33%Other 68,382 66,799 2% Total revenue 7,505,032 5,764,362 30%EXPENSE Advisory and commission 4,837,090 3,552,514 36%Compensation and benefits 624,646 548,369 14%Promotional 323,197 262,744 23%Interest expense on borrowings 191,498 124,423 54%Depreciation and amortization 188,587 138,157 37%Occupancy and equipment 158,683 135,793 17%Amortization of other intangibles 89,624 60,159 49%Brokerage, clearing and exchange 87,428 63,516 38%Professional services 77,418 35,379 119%Communications and data processing 40,923 39,150 5%Other 99,881 99,895 —% Total expense 6,718,975 5,060,099 33%INCOME BEFORE PROVISION FOR INCOME TAXES 786,057 704,263 12%PROVISION FOR INCOME TAXES 194,235 171,699 13%NET INCOME $591,822 $532,564 11%EARNINGS PER SHARE Earnings per share, basic $7.66 $7.13 7%Earnings per share, diluted $7.61 $7.05 8%Weighted-average shares outstanding, basic 77,307 74,644 4%Weighted-average shares outstanding, diluted 77,760 75,529 3% LPL Financial Holdings Inc.Condensed Consolidated Statements of Financial Condition(In thousands, except share data)(Unaudited) June 30, 2025March 31, 2025December 31, 2024ASSETSCash and equivalents $4,185,337 $1,229,181 $967,079 Cash and equivalents segregated under federal or other regulations 1,611,200 1,513,037 1,597,249 Restricted cash 116,675 112,458 119,724 Receivables from clients, net 710,463 613,766 633,834 Receivables from brokers, dealers and clearing organizations 129,490 112,249 76,545 Advisor loans, net 2,536,190 2,468,033 2,281,088 Other receivables, net 951,063 939,411 902,777 Investment securities ($124,639, $122,729, and $42,267 at fair value at June 30, 2025, March 31, 2025, and December 31, 2024, respectively) 139,962 138,007 57,481 Property and equipment, net 1,278,991 1,237,693 1,210,027 Goodwill 2,213,393 2,213,100 2,172,873 Other intangibles, net 1,641,133 1,570,558 1,482,988 Other assets 1,959,779 1,815,729 1,815,739 Total assets $17,473,676 $13,963,222 $13,317,404 LIABILITIES AND STOCKHOLDERS’ EQUITYLIABILITIES: Client payables $2,090,520 $2,045,285 $1,898,665 Payables to brokers, dealers and clearing organizations 273,593 252,035 129,228 Accrued advisory and commission expenses payable 303,614 303,837 323,996 Corporate debt and other borrowings, net 7,175,032 5,686,678 5,494,724 Accounts payable and accrued liabilities 556,086 479,803 588,450 Other liabilities 2,000,415 2,071,801 1,951,739 Total liabilities 12,399,260 10,839,439 10,386,802 STOCKHOLDERS’ EQUITY: Common stock, $0.001 par value; 600,000,000 shares authorized; 136,603,206, 131,194,549, and 130,914,541 shares issued at June 30, 2025, March 31, 2025, and December 31, 2024, respectively 136 131 131 Additional paid-in capital 3,787,009 2,089,155 2,066,268 Treasury stock, at cost — 56,599,471, 56,611,181, and 56,253,909 shares at June 30, 2025, March 31, 2025, and December 31, 2024, respectively (4,332,275) (4,331,582) (4,202,322)Retained earnings 5,619,546 5,366,079 5,066,525 Total stockholders’ equity 5,074,416 3,123,783 2,930,602 Total liabilities and stockholders’ equity $17,473,676 $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 Q2 2025Q1 2025ChangeQ2 2024ChangeGross Profit(6) Advisory $1,717,738 $1,689,245 2%$1,288,163 33%Trailing commissions 418,295 437,719 (4%) 363,976 15%Sales-based commissions 619,792 610,038 2% 423,070 46%Advisory fees and commissions 2,755,825 2,737,002 1% 2,075,209 33%Production-based payout(7) (2,406,692) (2,374,368)1% (1,812,050)33%Advisory fees and commissions, net of payout 349,133 362,634 (4%) 263,159 33%Client cash(8) 413,516 408,224 1% 361,316 14%Other asset-based(9) 305,015 303,210 1% 259,533 18%Service and fee 151,839 145,199 5% 135,000 12%Transaction 60,541 67,864 (11%) 58,935 3%Interest income, net(10) 60,738 27,637 120% 27,618 120%Other revenue(11) 6,785 2,023 n/m 6,621 2%Total net advisory fees and commissions and attachment revenue 1,347,567 1,316,791 2% 1,112,182 21%Brokerage, clearing and exchange expense (43,290) (44,138)(2%) (32,984)31%Gross Profit(6) 1,304,277 1,272,653 2% 1,079,198 21%G&A Expense Core G&A(12) 425,595 413,069 3% 370,912 15%Regulatory charges 7,267 6,887 6% 7,594 (4%)Promotional (ongoing)(13)(14) 163,575 151,932 8% 147,830 11%Acquisition costs excluding interest(14) 71,562 43,407 65% 36,876 94%Employee share-based compensation 19,504 18,366 6% 19,968 (2%)Total G&A 687,503 633,661 8% 583,180 18%EBITDA(15) 616,774 638,992 (3%) 496,018 24%Depreciation and amortization 96,231 92,356 4% 70,999 36%Amortization of other intangibles 46,103 43,521 6% 30,607 51%Interest expense on borrowings(16) 102,323 80,725 27% 64,341 59%Acquisition costs - interest(14) 3,313 5,137 (36%) — 100%INCOME BEFORE PROVISION FOR INCOME TAXES 368,804 417,253 (12%) 330,071 12%PROVISION FOR INCOME TAXES 95,555 98,680 (3%) 86,271 11%NET INCOME $273,249 $318,573 (14%)$243,800 12%Earnings per share, diluted $3.40 $4.24 (20%)$3.23 5%Weighted-average shares outstanding, diluted 80,373 75,112 7% 75,548 6%Adjusted EBITDA(15) $688,336 $682,399 1%$532,894 29%Adjusted pre-tax income(17) $489,782 $509,318 (4%)$397,554 23%Adjusted EPS(18) $4.51 $5.15 (12%)$3.88 16% LPL Financial Holdings Inc.Operating Metrics(Dollars in billions, except where noted)(Unaudited) Q2 2025Q1 2025ChangeQ2 2024ChangeMarket Drivers S&P 500 Index (end of period) 6,205 5,612 11% 5,460 14%Russell 2000 Index (end of period) 2,175 2,012 8% 2,048 6%Fed Funds daily effective rate (average bps) 433 433 —bps 533 (100bps) Advisory and Brokerage Assets(19) Advisory assets $1,060.7 $977.4 9%$829.1 28%Brokerage assets 858.5 817.5 5% 668.7 28%Total Advisory and Brokerage Assets $1,919.2 $1,794.9 7%$1,497.8 28%Advisory as a % of Total Advisory and Brokerage Assets 55.3% 54.5%80bps 55.4%(10bps) Assets by Platform Corporate advisory assets(20) $766.4 $699.1 10%$567.8 35%Independent RIA advisory assets(20) 294.3 278.3 6% 261.3 13%Brokerage assets 858.5 817.5 5% 668.7 28%Total Advisory and Brokerage Assets $1,919.2 $1,794.9 7%$1,497.8 28% Centrally Managed Assets Centrally managed assets(21) $183.5 $164.4 12%$126.9 45%Centrally Managed as a % of Total Advisory Assets 17.3% 16.8%50bps 15.3%200bps LPL Financial Holdings Inc.Operating Metrics(Dollars in billions, except where noted)(Unaudited) Q2 2025Q1 2025ChangeQ2 2024ChangeOrganic Net New Assets (NNA)(22) Organic net new advisory assets $23.1 $35.7 n/m$26.6 n/mOrganic net new brokerage assets (2.6) 35.2 n/m 2.5 n/mTotal Organic Net New Assets $20.5 $70.9 n/m$29.0 n/m Acquired Net New Assets(22) Acquired net new advisory assets $— $1.9 n/m$0.3 n/mAcquired net new brokerage assets — 6.0 n/m 4.8 n/mTotal Acquired Net New Assets $— $7.9 n/m$5.0 n/m Total Net New Assets(22) Net new advisory assets $23.1 $37.6 n/m$26.8 n/mNet new brokerage assets (2.6) 41.2 n/m 7.2 n/mTotal Net New Assets $20.5 $78.8 n/m$34.0 n/m Net brokerage to advisory conversions(23) $6.4 $5.9 n/m$3.7 n/mOrganic advisory NNA annualized growth(24) 9.5% 14.9%n/m 13.4%n/mTotal organic NNA annualized growth(24) 4.6% 16.3%n/m 8.1%n/m Net New Advisory Assets(22) Corporate RIA net new advisory assets $24.8 $31.7 n/m$23.4 n/mIndependent RIA net new advisory assets (1.7) 5.9 n/m 3.4 n/mTotal Net New Advisory Assets $23.1 $37.6 n/m$26.8 n/mCentrally managed net new advisory assets(22) $6.1 $6.5 n/m$4.4 n/m Net buy (sell) activity(25) $36.6 $42.0 n/m$39.3 n/mNote: Totals may not foot due to rounding. LPL Financial Holdings Inc.Client Cash Data(Dollars in thousands, except where noted)(Unaudited) Q2 2025Q1 2025ChangeQ2 2024ChangeClient Cash Balances (in billions)(26) Insured cash account sweep $34.2 $36.1 (5%)$31.0 10%Deposit cash account sweep 10.8 10.7 1% 9.2 17%Total Bank Sweep 44.9 46.8 (4%) 40.2 12%Money market sweep 3.7 4.3 (14%) 2.3 61%Total Client Cash Sweep Held by Third Parties 48.6 51.1 (5%) 42.5 14%Client cash account (CCA) 2.0 1.9 5% 1.5 33%Total Client Cash Balances $50.6 $53.1 (5%)$44.0 15%Client Cash Balances as a % of Total Assets 2.6% 3.0%(40bps) 2.9%(30bps)Note: Totals may not foot due to rounding. Three Months Ended June 30, 2025March 31, 2025June 30, 2024Interest-Earnings AssetsAverage Balance (in billions)RevenueNet Yield (bps)(27)Average Balance (in billions)RevenueNet Yield (bps)(27)Average Balance (in billions)RevenueNet Yield (bps)(27)Insured cash account sweep$34.4$293,420342$36.0$299,618337$31.7$250,804318Deposit cash account sweep 10.7 101,298381 10.2 89,728356 9.0 89,070399Total Bank Sweep 45.1 394,718351 46.2 389,346341 40.7 339,874336Money market sweep 4.0 2,61426 4.1 2,68526 2.3 1,60128Total Client Cash Held ByThird Parties 49.1 397,332325 50.4 392,031316 43.0 341,475320Client cash account (CCA) 1.7 16,184378 1.8 16,193368 1.7 19,841472Total Client Cash 50.8 413,516326 52.2 408,224317 44.7 361,316326Margin receivables 0.6 12,080807 0.6 11,444789 0.5 10,521889Other interest revenue 4.4 48,658448 1.3 16,193512 1.3 17,097545Total Client Cash andInterest Income, Net$55.8$474,254341$54.0$435,861327$46.5$388,934337Note: Totals may not foot due to rounding. LPL Financial Holdings Inc.Monthly Metrics(Dollars in billions, except where noted)(Unaudited) June 2025May 2025ChangeApril 2025March 2025Advisory and Brokerage Assets(19) Advisory assets $1,060.7 $1,021.6 4%$978.6 $977.4 Brokerage assets 858.5 832.9 3% 809.4 817.5 Total Advisory and Brokerage Assets $1,919.2 $1,854.5 3%$1,787.9 $1,794.9 Organic Net New Assets (NNA)(22) Organic net new advisory assets $7.9 $8.3 n/m$6.9 $12.7 Organic net new brokerage assets 0.1 (1.8)n/m (0.8) 0.5 Total Organic Net New Assets $8.0 $6.5 n/m$6.1 $13.1 Acquired Net New Assets(22) Acquired net new advisory assets $— $— n/m$— $1.8 Acquired net new brokerage assets — — n/m — 5.3 Total Acquired Net New Assets $— $— n/m$— $7.1 Total Net New Assets(22) Net new advisory assets $7.9 $8.3 n/m$6.9 $14.5 Net new brokerage assets 0.1 (1.8)n/m (0.8) 5.8 Total Net New Assets $8.0 $6.5 n/m$6.1 $20.2 Net brokerage to advisory conversions(23) $2.4 $2.2 n/m$1.7 $1.9 Client Cash Balances(26) Insured cash account sweep $34.2 $33.4 2%$35.2 $36.1 Deposit cash account sweep 10.8 10.6 2% 10.7 10.7 Total Bank Sweep 44.9 44.0 2% 45.9 46.8 Money market sweep 3.7 3.9 (5%) 4.2 4.3 Total Client Cash Sweep Held by Third Parties 48.6 47.9 1% 50.2 51.1 Client cash account (CCA) 2.0 1.3 54% 1.6 1.9 Total Client Cash Balances $50.6 $49.2 3%$51.8 $53.1 Net buy (sell) activity(25) $12.7 $13.5 n/m$10.4 $13.2 Market Drivers S&P 500 Index (end of period) 6,205 5,912 5% 5,569 5,612 Russell 2000 Index (end of period) 2,175 2,066 5% 1,964 2,012 Fed Funds effective rate (average bps) 433 433 —bps 433 433 Note: Totals may not foot due to rounding. LPL Financial Holdings Inc.Financial Measures(Dollars in thousands, except where noted)(Unaudited) Q2 2025Q1 2025ChangeQ2 2024ChangeCommission Revenue by Product Annuities $629,763 $615,594 2%$469,100 34%Mutual funds 223,317 233,895 (5%) 187,432 19%Fixed income 53,014 61,553 (14%) 53,192 —%Equities 47,811 49,074 (3%) 34,434 39%Other 84,182 87,641 (4%) 42,888 96%Total commission revenue $1,038,087 $1,047,757 (1%)$787,046 32% Commission Revenue by Sales-based and Trailing Sales-based commissions Annuities $393,654 $365,767 8%$260,188 51%Mutual funds 52,301 55,607 (6%) 42,981 22%Fixed income 53,014 61,553 (14%) 53,192 —%Equities 47,811 49,074 (3%) 34,434 39%Other 73,012 78,037 (6%) 32,275 126%Total sales-based commissions $619,792 $610,038 2%$423,070 46%Trailing commissions Annuities $236,109 $249,827 (5%)$208,912 13%Mutual funds 171,016 178,288 (4%) 144,451 18%Other 11,170 9,604 16% 10,613 5%Total trailing commissions $418,295 $437,719 (4%)$363,976 15%Total commission revenue $1,038,087 $1,047,757 (1%)$787,046 32% Payout Rate(7) 87.33% 86.75%58bps 87.32%1bps LPL Financial Holdings Inc.Capital Management Measures(Dollars in thousands, except where noted)(Unaudited) Q2 2025Q1 2025Q4 2024Cash and equivalents $4,185,337 $1,229,181 $967,079 Cash at regulated subsidiaries (1,288,722) (1,085,459) (884,779)Excess cash at regulated subsidiaries per the Credit Agreement 720,359 476,908 397,138 Corporate Cash(2) $3,616,974 $620,630 $479,438 Corporate Cash(2) Cash at LPL Holdings, Inc. $2,841,718 $104,080 $39,782 Excess cash at regulated subsidiaries per the Credit Agreement 720,359 476,908 397,138 Cash at non-regulated subsidiaries 54,897 39,642 42,518 Corporate Cash $3,616,974 $620,630 $479,438 Leverage Ratio Total debt $7,220,000 $5,720,000 $5,517,000 Total corporate cash 3,616,974 620,630 479,438 Credit Agreement Net Debt $3,603,026 $5,099,370 $5,037,562 Credit Agreement EBITDA (trailing twelve months)(28) $2,922,433 $2,797,285 $2,665,033 Leverage Ratio 1.23x 1.82x 1.89x June 30, 2025 Total Debt BalanceCurrent Applicable MarginInterest RateMaturityRevolving Credit Facility(a) $— ABR+37.5 bps / SOFR+147.5 bps5.797%5/20/2029Broker-Dealer Revolving Credit Facility — SOFR+125 bps5.700%5/18/2026Senior Unsecured Term Loan A 1,020,000 SOFR+147.5 bps(b)5.791%12/5/2026Senior Unsecured Notes 500,000 5.700% Fixed5.700%5/20/2027Senior Unsecured Notes 400,000 4.625% Fixed4.625%11/15/2027Senior Unsecured Notes 500,000 4.900% Fixed4.900%4/3/2028Senior Unsecured Notes 750,000 6.750% Fixed6.750%11/17/2028Senior Unsecured Notes 900,000 4.000% Fixed4.000%3/15/2029Senior Unsecured Notes 750,000 5.200% Fixed5.200%3/15/2030Senior Unsecured Notes 500,000 5.150% Fixed5.150%6/15/2030Senior Unsecured Notes 400,000 4.375% Fixed4.375%5/15/2031Senior Unsecured Notes 500,000 6.000% Fixed6.000%5/20/2034Senior Unsecured Notes 500,000 5.650% Fixed5.650%3/15/2035Senior Unsecured Notes 500,000 5.750% Fixed5.750%6/15/2035Total / Weighted Average $7,220,000 5.352% (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 2025Q1 2025ChangeQ2 2024ChangeBusiness Metrics Advisors 29,353 29,493 —% 23,462 25%Net new advisors (140) 605 (123%) 578 (124%)Annualized advisory fees and commissions per advisor(29) $375 $375 —%$358 5%Average total assets per advisor ($ in millions)(30) $65.4 $60.9 7%$63.8 3%Transition assistance loan amortization ($ in millions)(31) $89.4 $81.8 9%$61.9 44%Total client accounts (in millions) 10.5 10.4 1% 8.6 22%Recruited AUM ($ in billions) 18.4 38.6 (52%) 24.3 (24%) Employees(32) 9,389 9,097 3% 8,625 9% AUM retention rate (quarterly annualized)(33) 97.6% 98.2%(60bps) 98.4%(80bps) Capital Management Capital expenditures ($ in millions)(34) $137.0 $119.5 15%$128.9 6% Acquisitions, net ($ in millions)(35) $102.8 $95.1 8%$115.1 n/m Share repurchases ($ in millions) $— $100.0 (100%)$— —%Dividends ($ in millions) 24.0 22.4 7% 22.4 7%Total Capital Returned ($ in millions) $24.0 $122.4 (80%)$22.4 7% 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, 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; 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. 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 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) Based on unaudited information of Commonwealth for the quarter ended June 30, 2025. (5) 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. (6) 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 2025Q1 2025Q2 2024Total revenue $3,835,025 $3,670,007 $2,931,769 Advisory and commission expense 2,483,165 2,353,925 1,819,027 Brokerage, clearing and exchange expense 43,290 44,138 32,984 Employee deferred compensation 4,293 (709) 560 Gross profit $1,304,277 $1,272,653 $1,079,198 (7) 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 2025Q1 2025Q2 2024Advisory and commission expense $2,483,165 $2,353,925 $1,819,027 Plus (Less): Advisor deferred compensation (76,473) 20,443 (6,977)Production-based payout $2,406,692 $2,374,368 $1,812,050 Advisory and commission revenue $2,755,825 $2,737,002 $2,075,209 Payout rate 87.33% 86.75% 87.32% (8) 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 2025Q1 2025Q2 2024Client cash on Management's Statement of Operations $413,516 $408,224 $361,316 Interest income on CCA balances segregated under federal or other regulations(10) (16,184) (16,193) (19,841)Client cash on Condensed Consolidated Statements of Income $397,332 $392,031 $341,475 (9) 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. (10) 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 2025Q1 2025Q2 2024Interest income, net on Management's Statement of Operations $60,738 $27,637 27,618 Interest income on CCA balances segregated under federal or other regulations(8) 16,184 16,193 19,841 Interest income on deferred compensation 19 21 19 Interest income, net on Condensed Consolidated Statements of Income $76,941 $43,851 $47,478 (11) 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 2025Q1 2025Q2 2024Other revenue on Management's Statement of Operations $6,785 $2,023 $6,621 Interest income on deferred compensation (19) (21) (19)Deferred compensation 80,766 (21,152) 7,537 Other revenue on Condensed Consolidated Statements of Income $87,532 $(19,150)$14,139 (12) 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 2025Q1 2025Q2 2024Core G&A Reconciliation Total expense $3,466,221 $3,252,754 $2,601,698 Advisory and commission (2,483,165) (2,353,925) (1,819,027)Depreciation and amortization (96,231) (92,356) (70,999)Interest expense on borrowings(16) (105,636) (85,862) (64,341)Brokerage, clearing and exchange (43,290) (44,138) (32,984)Amortization of other intangibles (46,103) (43,521) (30,607)Employee deferred compensation (4,293) 709 (560)Total G&A 687,503 633,661 583,180 Promotional (ongoing)(13)(14) (163,575) (151,932) (147,830)Acquisition costs excluding interest(14) (71,562) (43,407) (36,876)Employee share-based compensation (19,504) (18,366) (19,968)Regulatory charges (7,267) (6,887) (7,594)Core G&A $425,595 $413,069 $370,912 (13) Promotional (ongoing) includes $21.2 million, $14.8 million and $12.2 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 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. (14) 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): Q2 2025Q1 2025Q2 2024Acquisition costs Change in fair value of contingent consideration(36) $309 $6,594 $24,624 Compensation and benefits 16,054 17,417 6,827 Professional services 11,057 6,145 3,567 Promotional(13) 35,198 8,538 539 Interest(16) 3,313 5,137 — Other 8,944 4,713 1,319 Acquisition costs $74,875 $48,544 $36,876 (15) 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): Q2 2025Q1 2025Q2 2024EBITDA and adjusted EBITDA Reconciliation Net income $273,249 $318,573 $243,800 Interest expense on borrowings(16) 105,636 85,862 64,341 Provision for income taxes 95,555 98,680 86,271 Depreciation and amortization 96,231 92,356 70,999 Amortization of other intangibles 46,103 43,521 30,607 EBITDA $616,774 $638,992 $496,018 Acquisition costs excluding interest(14) 71,562 43,407 36,876 Adjusted EBITDA $688,336 $682,399 $532,894 (16) 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): Q2 2025Q1 2025Q2 2024Interest expense on borrowings on Management's Statement of Operations $102,323 $80,725 $64,341 Cost of debt issuance related to Commonwealth acquisition(14) 3,313 5,137 — Interest expense on borrowings on Condensed Consolidated Statements of Income $105,636 $85,862 $64,341 (17) 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): Q2 2025Q1 2025Q2 2024Income before provision for income taxes $368,804 $417,253 $330,071 Amortization of other intangibles 46,103 43,521 30,607 Acquisition costs(14) 74,875 48,544 36,876 Adjusted pre-tax income $489,782 $509,318 $397,554 (18) 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): Q2 2025Q1 2025Q2 2024 AmountPer ShareAmountPer ShareAmountPer ShareNet income / earnings per diluted share $273,249 $3.40 $318,573 $4.24 $243,800 $3.23 Amortization of other intangibles 46,103 0.57 43,521 0.58 30,607 0.41 Acquisition costs(14) 74,875 0.93 48,544 0.65 36,876 0.49 Tax benefit (31,433) (0.39) (23,937) (0.32) (17,816) (0.24)Adjusted net income / adjusted EPS $362,794 $4.51 $386,701 $5.15 $293,467 $3.88 Diluted share count 80,373 75,112 75,548 Note: Totals may not foot due to rounding. (19) 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. (20) 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. (21) Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms. (22) 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. (23) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage. (24) 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. (25) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial. (26) 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): Q2 2025Q1 2025Q2 2024Purchased money market funds $47.0 $44.7 $35.7 (27) Calculated by dividing revenue for the period by the average balance during the period. (28) 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): Q2 2025Q1 2025Q4 2024EBITDA and Credit Agreement EBITDA Reconciliations Net income $1,117,874 $1,088,425 $1,058,616 Interest expense on borrowings 341,256 299,961 274,181 Provision for income taxes 356,812 347,528 334,276 Depreciation and amortization 358,957 333,725 308,527 Amortization of other intangibles 164,699 149,203 135,234 EBITDA $2,339,598 $2,218,842 $2,110,834 Credit Agreement Adjustments: Acquisition costs and other(14)(37) $269,638 $249,870 $223,614 Employee share-based compensation 84,226 84,690 88,957 M&A accretion(38) 222,150 237,160 235,048 Advisor share-based compensation 2,838 2,740 2,597 Loss on extinguishment of debt 3,983 3,983 3,983 Credit Agreement EBITDA $2,922,433 $2,797,285 $2,665,033 (29) Calculated based on the average advisor count from the current period and prior periods. (30) Calculated based on the end of period total advisory and brokerage assets divided by end of period advisor count. (31) Represents amortization expense on forgivable loans for transition assistance to advisors and institutions. (32) 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. (33) 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. (34) Capital expenditures represent cash payments for property and equipment during the period. (35) 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, Inc., 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. (36) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the condensed consolidated statements of income. (37) Acquisition costs and other primarily include acquisition costs related to Atria, costs incurred related to the integration of the strategic relationship with Prudential Advisors, 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. (38) 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.

LPL Financial Announces Second Quarter 2025 Results

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