Fourth Quarter 2024

Key Financial Results:

• Net Income was $271 million, translating to diluted earnings per share ("EPS") of $3.59, up 26% from a year ago
• Adjusted EPS* increased 21% year-over-year to $4.25
  • Gross profit* increased 22% year-over-year to $1,228 million
  • Core G&A* increased 16% year-over-year to $422 million
  • Adjusted EBITDA* increased 22% year-over-year to $585 million

Key Business Results:

• Total advisory and brokerage assets increased 29% year-over-year to $1.7 trillion
  • Advisory assets increased 30% year-over-year to $957 billion
  • Advisory assets as a percentage of total assets increased to 55.0%, up from 54.3% a year ago
• Total organic net new assets were $68 billion, representing 17% annualized growth
  • This included $40 billion of assets from Prudential Advisors ("Prudential"), and $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 $30 billion, translating to an 8% annualized growth rate
• Recruited assets⁽¹⁾ were a record of $79 billion
  • This included $63 billion of assets from Prudential
• Advisor count⁽²⁾ was 28,888, up 5,202 sequentially and 6,228 year-over-year
  • This included approximately 2,200 advisors from Atria Wealth Solutions, Inc. ("Atria"), and approximately 2,800 advisors from Prudential
• Total client cash balances were $55 billion, an increase of $9 billion sequentially and $7 billion year-over-year
  • Client cash balances as a percentage of total assets were 3.2%, up from 2.9% in the prior quarter and down from 3.6% a year ago

Key Capital and Liquidity Results:

• Corporate cash⁽³⁾ was $479 million
• Leverage ratio⁽⁴⁾ was 1.89x
• Share repurchases were $100 million and dividends paid were $23 million

Full Year 2024

Key Financial Results:

• Net Income was $1.1 billion, translating to diluted EPS of $14.03, up 2% from a year ago
• Adjusted EPS* increased 5% year-over-year to $16.51
  • Gross profit* increased 12% year-over-year to $4.50 billion
  • Core G&A* increased 11% year-over-year to $1.52 billion
  • Adjusted EBITDA* increased 7% year-over-year to $2.22 billion

Key Business & Capital and Liquidity Results:

• Total organic net new assets were $141 billion, representing a 10% growth rate, up from 9% in 2023
• Recruited assets for the year were a record of $149 billion, up approximately 86% from a year ago
• Share repurchases were $170 million and dividends paid were $90 million

Key Updates

Large Institutions:

• Prudential: Onboarded the retail wealth management business of Prudential, with $63 billion of total assets, of which $40 billion transitioned onto our platform in Q4
• Wintrust Financial Corporation: In January 2025, onboarded the wealth management business of Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, "Wintrust"), with $16 billion of brokerage and advisory assets, of which $15 billion transitioned onto our platform to-date

M&A:

• Atria: Closed the acquisition of Atria, and expect to complete the conversion in mid-2025
• The Investment Center, Inc. ("The Investment Center"): On track to close and convert the acquisition of The Investment Center in the first half of 2025
• Liquidity & Succession: Deployed approximately $81 million of capital to close 8 deals in Q4, including two external practices

Corporate Debt:

• Completed leverage-neutral refinancing of existing $1.0 billion Senior Secured Term Loan B with a new $1.0 billion Senior Unsecured Term Loan A

Core G&A:

• 2024 Core G&A* was $1,515 million, within our outlook range of $1,510 million to $1,525 million
  • Prior to the impact of Prudential and Atria, 2024 Core G&A* increased by approximately 8%
• In 2025, we plan to slow the growth of Core G&A*, as our ongoing investments to scale our business are driving greater efficiencies
  • Our 2025 Core G&A* outlook range prior to Prudential and Atria is 6% to 8% year-over-year growth, or $1,560 million to $1,600 million
  • Including expenses related to Prudential and Atria, our 2025 Core G&A* outlook range is $1,730 million to $1,780 million

SAN DIEGO, Jan. 30, 2025 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq: LPLA) (the "Company") today announced results for its fourth quarter ended December 31, 2024, reporting net income of $271 million, or $3.59 per share. This compares with $218 million, or $2.85 per share, in the fourth quarter of 2023 and $255 million, or $3.39 per share, in the prior quarter.

"2024 marked another milestone year for LPL," said Rich Steinmeier, CEO. "We delivered double-digit organic asset growth, including the onboarding of one of our largest institutional partners, closed on our acquisition of Atria, continued to advance our pioneering Liquidity & Succession program, and reported record adjusted earnings per share. Looking ahead to 2025, our business momentum and financial strength position us well to continue expanding our leadership across the advisor-mediated marketplace and delivering long-term shareholder value."

"In Q4, we delivered solid business and financial results," said Matt Audette, President and CFO. "As we look ahead, we remain excited about the opportunities we have to continue to drive growth, deliver operating leverage, and create long-term shareholder value."

Dividend Declaration

The Company's Board of Directors declared a $0.30 per share dividend to be paid on March 25, 2025 to all stockholders of record as of March 11, 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, January 30, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.

Contacts

Investor Relations

investor.relations@lplfinancial.com

Media Relations

media.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 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") or its affiliate LPL Enterprise, LLC ("LPL Enterprise"), both registered investment advisers and broker-dealers. Members FINRA/SIPC. LPL Financial serves as the clearing and carrying firm for accounts LPL Enterprise introduces to it.

LPL Financial and LPL Enterprise provide financial services only from the United States.

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.

Forward-Looking Statements

This press release contains statements regarding:

• the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Atria, Prudential, The Investment Center and Wintrust;
• 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, share-based compensation expense, depreciation and amortization 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 January 30, 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 The Investment Center, 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 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, Prudential, The Investment Center, and Wintrust 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.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
		Three Months Ended								Three Months Ended
		December 31,			September 30,					December 31,
			2024			2024		Change			2023		Change
REVENUE
Advisory		$	1,595,834		$	1,378,050		16	%	$	1,085,497		47	%
Commission:
Sales-based			525,795			429,132		23	%		355,958		48	%
Trailing			439,668			377,400		16	%		326,454		35	%
Total commission			965,463			806,532		20	%		682,412		41	%
Asset-based:
Client cash			378,816			353,855		7	%		352,661		7	%
Other asset-based			290,962			272,336		7	%		228,473		27	%
Total asset-based			669,778			626,191		7	%		581,134		15	%
Service and fee			139,119			145,729		(5	%)		130,680		6	%
Transaction			61,535			58,546		5	%		53,858		14	%
Interest income, net			46,680			49,923		(6	%)		43,312		8	%
Other			33,942			43,423		(22	%)		66,936		(49	%)
Total revenue			3,512,351			3,108,394		13	%		2,643,829		33	%
EXPENSE
Advisory and commission			2,250,427			1,948,065		16	%		1,607,978		40	%
Compensation and benefits			321,933			266,415		21	%		270,709		19	%
Promotional			162,057			164,538		(2	%)		126,800		28	%
Depreciation and amortization			92,032			78,338		17	%		67,936		35	%
Interest expense on borrowings			81,979			67,779		21	%		54,415		51	%
Occupancy and equipment			75,538			69,879		8	%		62,103		22	%
Amortization of other intangibles			42,614			32,461		31	%		28,618		49	%
Brokerage, clearing and exchange			34,789			29,636		17	%		25,917		34	%
Professional services			32,055			26,295		22	%		21,572		49	%
Communications and data processing			18,772			17,916		5	%		17,814		5	%
Other			58,874			59,724		(1	%)		66,180		(11	%)
Total expense			3,171,070			2,761,046		15	%		2,350,042		35	%
INCOME BEFORE PROVISION FOR INCOME TAXES			341,281			347,348		(2	%)		293,787		16	%
PROVISION FOR INCOME TAXES			70,532			92,045		(23	%)		76,232		(7	%)
NET INCOME		$	270,749		$	255,303		6	%	$	217,555		24	%
EARNINGS PER SHARE
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