LPL Financial reported its latest earnings after the markets closed Thursday and showed increases in key metrics including net income, total assets, and both organic and recruited growth.
The broker-dealer’s total assets gained 25% year-over-year to more than $1.8 trillion thanks to record organic net new assets of $71 billion, up 16% on an annualized basis. This was helped by $27 billion from Prudential which was fully integrated in November 2024, and $16 billion from Wintrust which was integrated in January 2025.
Meanwhile, recruited assets were $39 billion, up 91% from a year ago, recruited assets over the trailing twelve months were a record of $167 billion.
Client cash balances were $53 billion, a decrease of $2 billion sequentially and an increase of $7 billion year-over-year, representing 3% of all assets, down from 3.2% in the prior quarter and year.
The firm also engaged in some significant M&A including the agreement to acquire Commonwealth as the quarter ended and in April, the agreement to acquire the broker-dealer business of First Horizon.
"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."
Net income in the first quarter was up 11% year-over-year to $319 million, beating the $271 million of the previous quarter. First quarter earnings beat consensus: Adjusted EPS was $5.15, $0.49 above consensus of $4.66.
"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."
Vanilla is extending its estate planning tech to Callan Family Office's ultra-high-net-worth business, while WealthFeed's organic growth engine will now be available to roughly 100 advisors at The Mather Group.
“We are helping families take an important first step toward building a financial foundation for the next generation,” said Franklin Templeton CEO Jenny Johnson
Richard Brothers Financial Advisors joins the fee-only RIA, adding its first Maine office and $240 million in client assets
Cleveland RIA grows to $68 billion in assets as Philadelphia team, deepening its high-net-worth and retirement-plan practice.
Financial planning leaders say unresolved rules on fees, Roth conversions and financial aid complicate comparisons with 529 plans.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
