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LPL Financial
(NASDAQ:LPLA)
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Rating:65Neutral
Price Target:
$387.00
â–²(17.74% Upside)
Action:Reiterated
Date:08/04/26
The score is capped primarily by weak cash-flow performance (negative operating and free cash flow in 2025 and TTM), despite solid revenue scale and improved leverage. Technicals and the latest earnings call are supportive—showing strong trend momentum, record profitability, asset growth, and active buybacks—but valuation is less compelling with a higher P/E and a very low dividend yield.
Positive Factors
Scale of client assets
A $2.6T asset base provides durable, recurring asset‑based fee revenue and economies of scale across custody, clearing and platform services. Large AUM dampens volatility in single‑client outcomes, supports stable revenue mix and funds continued platform investment over quarters.
Negative Factors
Weak cash flow conversion
Negative operating and free cash flow despite positive net income signals earnings are not converting into cash. This reduces financial flexibility for buybacks, M&A or investment, increases reliance on financing, and raises risk that reported earnings overstate near‑term cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale of client assets
A $2.6T asset base provides durable, recurring asset‑based fee revenue and economies of scale across custody, clearing and platform services. Large AUM dampens volatility in single‑client outcomes, supports stable revenue mix and funds continued platform investment over quarters.
Read all positive factors
LPL Financial Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights income from different business lines, revealing which areas drive growth and profitability, and indicating strategic focus.
Highlights income from different business lines, revealing which areas drive growth and profitability, and indicating strategic focus.
Data provided by:
The Fly
The FlyLPL Financial (LPLA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.19B
Dividend Yield0.33%
Average Volume (3M)881.26K
Price to Earnings (P/E)29.2
Beta (1Y)1.13
Revenue Growth38.82%
EPS Growth-14.48%
CountryUS
Employees10,081
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)12.59
Shares Outstanding78,742,290
10 Day Avg. Volume647,261
30 Day Avg. Volume881,263
Financial Highlights & Ratios
PEG Ratio-1.44
Price to Book (P/B)5.26
Price to Sales (P/S)1.65
P/FCF Ratio-28.29
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$417.20Price Target Upside26.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)23.74
Revenue Forecast (FY)$20.91B
LPL Financial Business Overview & Revenue Model
Company Description
LPL Financial Holdings Inc., operating through its subsidiaries, delivers an integrated ecosystem of brokerage and investment advisory solutions. These services are primarily aimed at independent financial professionals and advisors affiliated wit...
How the Company Makes Money
LPL Financial primarily makes money by operating as an intermediary platform for financial advisors and institutions and earning revenue tied to client assets, investment activity, and the services it provides to advisors.
Key revenue streams typ...
LPL Financial Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed multiple strong operational and financial wins: record adjusted EPS, 10% sequential asset growth to $2.6 trillion, robust recruiting and a record recruiting pipeline, high retention (97%), cost discipline with lowered G&A outlook, progress on Commonwealth integration, active capital returns, and continued tech/AI investments. Counterbalancing items include integration risk (Commonwealth retention mid-80s), declining client cash balances and sweep economics under review, expected near-term payout increases and some expense items rising (TA amortization, promotional spend, D&A), and an unresolved pricing review amid competitive recruiting dynamics. Overall, the positive operational and financial highlights and clear progress on strategic initiatives materially outweigh the manageable integration and near-term margin pressures.Positive Updates
Total Client Assets Growth
Total client assets reached $2.6 trillion, up 10% sequentially (Q2 vs Q1), driven by organic growth and higher equity markets.
Negative Updates
Commonwealth Asset Retention Risk
Commonwealth asset retention is currently in the mid-80% range (below the target of 90%), representing a material integration risk that management is actively addressing.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Client Assets Growth
Total client assets reached $2.6 trillion, up 10% sequentially (Q2 vs Q1), driven by organic growth and higher equity markets.
Read all positive updates
Company Guidance
Management provided detailed Q3 and FY guidance alongside Q2 results: Q2 adjusted EPS was a record $5.84 with an adjusted pretax margin of ~39.3% and gross profit of $1.62B; total client assets were $2.6T (+10% QoQ) with $23B organic NNA (~4% annualized), $25B recruited assets, and 97% asset retention (Q2 & LTM); Commonwealth onboarding remains on track for Q4 with mid‑80s retention today, a 90% retention target and an estimated ~$435M run‑rate EBITDA when fully integrated. Looking ahead, management expects Q3 payout to rise ~80 bps (seasonality + July advisory price cuts), ICA yield to increase ~10 bps in Q3 ( ~20 bps run‑rate from the sweep change), service & fee revenue +$5M, transaction revenue down ~$5M, core G&A of $540–$560M in Q3 and full‑year core G&A now $2.14–$2.165B, TA loan amortization ≈$150M, promotional ≈$95M, D&A up ≈$8M, tax rate ~26.4%; corporate cash was $430M at quarter end, leverage ~1.9x, and buybacks were accelerated ($309M repurchased in Q2, $2.5B authorization, $300M planned for Q3).LPL Financial Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
68
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.61B | 16.99B | 12.39B | 10.05B | 8.60B | 7.72B |
| Gross Profit | 4.94B | 4.35B | 3.37B | 3.05B | 2.37B | 1.71B |
| EBITDA | 2.59B | 2.18B | 2.11B | 1.99B | 1.53B | 936.43M |
| Net Income | 1.01B | 863.02M | 1.06B | 1.07B | 845.70M | 459.87M |
Balance Sheet | ||||||
| Total Assets | 19.79B | 18.49B | 13.32B | 10.39B | 9.48B | 7.99B |
| Cash, Cash Equivalents and Short-Term Investments | 2.70B | 1.13B | 1.01B | 541.76M | 884.28M | 514.92M |
| Total Debt | 7.46B | 7.26B | 5.75B | 3.96B | 2.95B | 3.05B |
| Total Liabilities | 14.03B | 13.15B | 10.39B | 8.31B | 7.31B | 6.32B |
| Stockholders Equity | 5.76B | 5.34B | 2.93B | 2.08B | 2.17B | 1.67B |
Cash Flow | ||||||
| Free Cash Flow | -1.05B | -993.42M | -284.94M | 109.33M | 1.64B | 237.15M |
| Operating Cash Flow | -375.28M | -423.04M | 277.59M | 512.61M | 1.95B | 453.13M |
| Investing Cash Flow | -2.43B | -2.37B | -1.59B | -860.19M | -376.40M | -458.64M |
| Financing Cash Flow | -178.38M | 3.17B | 1.42B | -208.53M | -504.27M | 278.84M |
LPL Financial Technical Analysis
Positive
328.70
Price Trends
320.30
Positive
312.02
Positive
330.70
Positive
Market Momentum
15.42
Negative
67.73
Neutral
69.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPLA, the sentiment is Positive. The current price of 328.7 is below the 20-day moving average (MA) of 351.87, above the 50-day MA of 320.30, and below the 200-day MA of 330.70, indicating a bullish trend. The MACD of 15.42 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 69.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LPLA.
LPL Financial Risk Analysis
LPL Financial disclosed 32 risk factors in its most recent earnings report. LPL Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LPL Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $34.78B | 15.35 | 18.32% | 1.25% | 7.75% | 12.07% | |
78 Outperform | $24.87B | 25.04 | 13.78% | 0.52% | 14.04% | 60.95% | |
77 Outperform | $12.93B | 9.24 | 16.07% | 1.79% | 11.04% | 60.96% | |
75 Outperform | $192.11B | 20.03 | 20.40% | 1.16% | 10.13% | 48.07% | |
73 Outperform | $41.71B | 37.28 | 20.51% | 0.36% | 15.77% | 31.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $29.19B | 29.25 | 18.45% | 0.37% | 38.82% | -14.48% |
* Financial Sector Average
LPLA
LPL Financial
368.73
18.72
5.35%
IBKR
Interactive Brokers
90.56
28.44
45.77%
RJF
Raymond James Financial
179.30
17.33
10.70%
SF
Stifel Financial
83.73
9.86
13.34%
SCHW
Charles Schwab
111.68
17.13
18.12%
TW
Tradeweb Markets
105.47
-21.96
-17.23%
LPL Financial Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
LPL Financial Updates Governance Bylaws and Shareholder Approvals
Neutral
May 15, 2026
On May 14, 2026, LPL Financial’s board adopted its Eighth Amended and Restated Bylaws, aligning them with recent developments in Delaware corporate law, tightening and clarifying procedures for director qualifications, shareholder nomination...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.