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LPL Financial Reports Monthly Activity for January 2025

1. Total assets grew by $71.1B with a 4.1% increase. Growth signals strong inflows. 2. Organic net new assets reached $34.0B with robust advisory gains. Prudential and Wintrust onboarded. 3. Client cash balances fell by $2.9B amid $14.5B net buying. Active market participation noted. 4. Advisor-led inflows drove solid asset growth. Momentum remains robust.

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Why Bullish?

The report highlights significant asset growth and improved net new asset figures, similar to past periods where strong inflows boosted LPLA’s share price. Historical instances of consecutive positive performance reports helped enhance investor confidence and stock performance.

How important is it?

The monthly activity report provides critical performance metrics with confirmed asset growth and solid advisor contributions. This regular operational update is key for investors, even though its routine nature may moderate immediate price volatility.

Why Long Term?

Sustained asset growth and strategic advisor onboarding suggest enduring revenue expansion and client retention. Such consistent performance indicators generally drive long-term valuation improvements.

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PRUWTFC
February 20, 2025 16:05 ET  | Source: LPL Financial Holdings, Inc. SAN DIEGO, Feb. 20, 2025 (GLOBE NEWSWIRE) -- LPL Financial LLC (“LPL Financial”), a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”), today released its monthly activity report for January 2025. Total advisory and brokerage assets at the end of January were $1.81 trillion, an increase of $71.1 billion, or 4.1%, compared to the end of December 2024. Total net new assets for January were $34.1 billion, which included $0.1 billion of acquired net new assets resulting from Liquidity & Succession activity. Total organic net new assets for January were $34.0 billion, translating to a 23.4% annualized growth rate. This included $13.5 billion of assets from Prudential Advisors (“Prudential”) and $15.2 billion of assets from Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, “Wintrust”) that onboarded in January, and $0.2 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 $5.4 billion, translating to a 3.9% annualized growth rate. Total client cash balances at the end of January were $52.2 billion, a decrease of $2.9 billion compared to the end of December 2024. Net buying in January was $14.5 billion. (End of period $ in billions, unless noted)JanuaryDecemberChangeJanuaryChange20252024M/M2024Y/YAdvisory and Brokerage Assets     Advisory assets992.4957.03.7%740.734.0%Brokerage assets819.4783.74.6%621.131.9%Total Advisory and Brokerage Assets1,811.81,740.74.1%1,361.833.0%      Organic Net New Assets     Organic net new advisory assets13.412.5n/m2.4n/mOrganic net new brokerage assets20.512.9n/m(0.4)n/mTotal Organic Net New Assets34.025.5n/m2.0n/m      Acquired Net New Assets     Acquired net new advisory assets0.10.0n/m0.0n/mAcquired net new brokerage assets0.00.2n/m0.0n/mTotal Acquired Net New Assets0.10.3n/m0.0n/m      Total Net New Assets     Net new advisory assets13.512.6n/m2.4n/mNet new brokerage assets20.613.2n/m(0.4)n/mTotal Net New Assets34.125.8n/m2.0n/m      Net brokerage to advisory conversions2.12.0n/m1.0n/m      Client Cash Balances     Insured cash account sweep36.238.3(5.5%)33.77.4%Deposit cash account sweep10.010.7(6.5%)8.912.4%Total Bank Sweep46.349.0(5.5%)42.68.7%Money market sweep4.14.3(4.7%)2.470.8%Total Client Cash Sweep Held by Third Parties50.453.3(5.4%)45.012.0%Client cash account(1)1.81.8—%1.9(5.3%)Total Client Cash Balances52.255.1(5.3%)46.911.3%      Net buy (sell) activity14.513.5n/m12.0n/m      Market Drivers     S&P 500 Index (end of period)6,0415,8822.7% 4,84624.7% Russell 2000 Index (end of period)2,2882,2302.6% 1,94717.5% Fed Funds daily effective rate (average bps)433448(3.3%) 533(18.8%)        For additional information regarding these and other LPL Financial business metrics, please refer to the Company’s most recent earnings announcement, which is available in the quarterly results section of investor.lpl.com. 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, LPL supports nearly 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.7 trillion in brokerage and advisory assets on behalf of approximately 6 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”), a registered investment advisor and broker-dealer, member 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. We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website. Note: Totals may not foot due to rounding.(1) During the first quarter of 2024, the Company updated its definition of client cash account balances to exclude other client payables. Prior period disclosures have been updated to reflect this change as applicable.

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