Q3 FY2026
Filed Oct 27, 2026LPL Financial Announces Third Quarter 2026 Results
Total revenue increased 17% year-over-year to $5,344,030 (in thousands), gross profit increased 12% to $1,661,896 (in thousands), and adjusted EPS increased 15% to $5.97. Organic net new assets were $29.1 billion and total client assets increased 11% to $2,564.6 billion, while GAAP net income declined sequentially to $356,561 (in thousands) from $379,261 (in thousands).
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q3 2026GAAP | $5.34B | 3% | 17% |
| Total expense, Q3 2026GAAP | $4.86B | 4% | 6% |
| Income before provision for income taxes, Q3 2026GAAP | $485.1M | (6%) | n/m |
| Net income, Q3 2026GAAP | $356.6M | (6%) | n/m |
| Earnings per share, diluted, Q3 2026GAAP | $4.52 | (5%) | n/m |
| Earnings per share, basic, Q3 2026GAAP | $4.53 | (5%) | n/m |
| Gross profit, Q3 2026non-GAAP | $1.66B | 3% | 12% |
| Core G&A, Q3 2026non-GAAP | $532.2M | 2% | 11% |
| Adjusted EBITDA, Q3 2026non-GAAP | $864.2M | 2% | 12% |
| Adjusted pre-tax income, Q3 2026non-GAAP | $641.1M | 1% | 13% |
| Adjusted pre-tax margin, Q3 2026non-GAAP | 38.6% | – | – |
| Adjusted net income, Q3 2026non-GAAP | $471.3M | – | – |
| Adjusted EPS, Q3 2026non-GAAP | $5.97 | 2% | 15% |
| Total client assets, Q3 2026other | $2.56T | —% | 11% |
| Advisory assets, Q3 2026other | $1.56T | 1% | 16% |
| Brokerage assets, Q3 2026other | $1.00T | (1%) | 4% |
| Advisory as a percentage of total client assets, Q3 2026other | 60.9% | 50bps | 270bps |
| Total organic net new assets, Q3 2026other | $29.1B | n/m | n/m |
| Total organic NNA annualized growth, Q3 2026other | 4.5% | n/m | n/m |
| Recruited AUM, Q3 2026other | $24.1B | (3%) | (26%) |
| Total client cash balances, Q3 2026other | $56.6B | (1%) | 1% |
| Total client cash balances as a percentage of total assets, Q3 2026other | 2.2% | —bps | (20bps) |
| Payout rate, Q3 2026other | 87.98% | 54bps | 51bps |
| Net income, nine months ended September 30, 2026GAAP | $1.09B | – | 94% |
| Total revenue, nine months ended September 30, 2026GAAP | $15.47B | – | 28% |
| Earnings per share, diluted, nine months ended September 30, 2026GAAP | $13.68 | – | 91% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Advisory revenueAdvisory assets were $1,561.0 billion, up 16% year-over-year and 1% sequentially. | $2.87B | 9% | 30% |
| Total commission revenueSales-based commissions were $742,852 (in thousands), while trailing commissions were $507,904 (in thousands). | $1.25B | 2% | 5% |
| Client cash revenueTotal Bank Sweep revenue was $460,512 (in thousands), with an average balance of $52.2 billion and net yield of 350 bps. | $461.5M | 4% | 8% |
| Other asset-based revenueIncludes revenue from sponsorship programs with financial product manufacturers, omnibus processing and networking services, excluding fees from client cash programs. | $400.6M | 2% | 13% |
| Service and fee revenueNo further driver was quantified for this line item. | $218.1M | 4% | 25% |
| Transaction revenueNo further driver was quantified for this line item. | $79.12M | (5%) | 18% |
| Interest income, netTotal client cash and interest income, net revenue was $510,135 (in thousands), with an average balance of $57.3 billion and net yield of 353 bps. | $48.70M | 5% | (20%) |
| Other revenueDeferred compensation was $5,033 (in thousands), compared with $137,381 (in thousands) in Q2 2026 and $57,093 (in thousands) in Q3 2025. | $12.39M | (92%) | (82%) |
2026 outlook
- Operating expensesCore G&A outlook range of $2,140-2,160 million, including expenses related to Commonwealth
- NoteCommonwealth conversion is on track to complete in the fourth quarter of 2026.
- NoteCommonwealth asset retention is now expected to be approximately 83%.
- NoteCommonwealth estimated run-rate EBITDA is now expected to be $415 million.
Capital returns
- Share repurchases were $300.6 million in Q3 2026.
- Dividends were $23.6 million in Q3 2026.
- Total Capital Returned was $324.2 million in Q3 2026.
- The Board declared a $0.30 per share dividend to be paid on November 30, 2026 to stockholders of record as of November 12, 2026.
- Capital expenditures were $229.7 million in Q3 2026.
- Acquisitions, net were $102.2 million in Q3 2026.
- The Company deployed approximately $20 million of capital to close three Liquidity & Succession deals in Q3.
What drove it
- Gross profit rose 12% year-over-year to $1,661,896 (in thousands), supported by 30% growth in advisory revenue, 25% growth in service and fee revenue, and 13% growth in other asset-based revenue.
- Advisory assets increased 16% year-over-year to $1,561.0 billion and represented 60.9% of total client assets, up from 58.2%.
- Organic advisory NNA was $33.1 billion, while brokerage organic NNA was $(4.0) billion.
- Net brokerage to advisory conversions were $7.4 billion.
- Net buy activity was $41.9 billion.
- Adjusted EPS rose 15% year-over-year to $5.97, while acquisition costs declined to $83,149 (in thousands) from $538,177 (in thousands).
- AUM retention rate was 97.4%, compared with 96.4% in Q3 2025.
Concerns
- GAAP net income decreased 6% sequentially to $356,561 (in thousands), and diluted GAAP EPS decreased 5% sequentially to $4.52.
- Adjusted pre-tax margin was 38.6%, compared with 39.3% in Q2 2026.
- Interest income, net declined 20% year-over-year to $48,699 (in thousands).
- Recruited AUM declined 26% year-over-year to $24.1 billion.
- Brokerage organic NNA was $(4.0) billion.
- Core G&A increased 11% year-over-year to $532,205 (in thousands), and Q3 capital expenditures increased 62% year-over-year to $229.7 million.
- The leverage ratio increased to 1.93x from 1.91x in Q2 2026.
What to watch
- Completion of the Commonwealth conversion in the fourth quarter of 2026.
- Commonwealth asset retention expected to be approximately 83% and estimated run-rate EBITDA expected to be $415 million.
- Execution against the narrowed 2026 Core G&A outlook range of $2,140-2,160 million.
- Total organic NNA annualized growth of 4.5%, following 4.0% in Q2 2026 and 6.8% in Q3 2025.
- Client cash balances, which were $56.6 billion, and client cash revenue net yield, which was 342 bps.
- The rollout of the proprietary AI agent, Cyan, to advisors.
Balance sheet and cash flow
- Cash and equivalents were $1,059,019 (in thousands) at September 30, 2026, compared with $1,275,690 (in thousands) at June 30, 2026.
- Corporate Cash was $562,759 (in thousands) at Q3 2026, compared with $430,060 (in thousands) at Q2 2026.
- Corporate debt and other borrowings, net were $7,802,917 (in thousands) at September 30, 2026, compared with $7,460,510 (in thousands) at June 30, 2026.
- Total debt was $7,836,000 (in thousands) and Credit Agreement Net Debt was $7,273,241 (in thousands) at Q3 2026.
- Leverage Ratio was 1.93x, compared with 1.91x at Q2 2026 and 1.95x at Q4 2025.
- Total assets were $19,870,620 (in thousands) and total stockholders' equity was $5,812,318 (in thousands) at September 30, 2026.
Analysis
LPL reported a strong third quarter, with total revenue of $5,344,030 (in thousands), up 17% year-over-year and 3% sequentially. Advisory revenue increased 30% year-over-year to $2,872,928 (in thousands), and service and fee revenue increased 25% to $218,055 (in thousands). Total client assets reached $2,564.6 billion, up 11% from Q3 2025, with advisory assets rising 16% to $1,561.0 billion. The advisory mix continued to increase, with advisory assets representing 60.9% of total client assets versus 58.2% a year ago.
Organic flows remained positive but showed a contrast between advisory and brokerage. Total organic NNA was $29.1 billion, up from $23.1 billion in Q2 2026 but below $32.7 billion in Q3 2025. Organic advisory NNA was $33.1 billion, while brokerage organic NNA was $(4.0) billion. Net brokerage-to-advisory conversions were $7.4 billion, and total organic NNA annualized growth was 4.5%, compared with 4.0% in Q2 2026 and 6.8% in Q3 2025. Recruited AUM of $24.1 billion declined 26% year-over-year.
Profit growth was led by gross profit and non-GAAP earnings. Gross profit increased 12% year-over-year to $1,661,896 (in thousands), adjusted pre-tax income increased 13% to $641,119 (in thousands), and adjusted EPS increased 15% to $5.97. GAAP profitability was affected by the comparison against acquisition-related costs in Q3 2025, when acquisition costs were $538,177 (in thousands), versus $83,149 (in thousands) in Q3 2026. Sequentially, GAAP net income declined 6% to $356,561 (in thousands), adjusted pre-tax margin moved to 38.6% from 39.3%, and adjusted EPS increased 2% from $5.84.
Capital allocation included $300.6 million of share repurchases, $23.6 million of dividends, $229.7 million of capital expenditures, and $102.2 million of net acquisitions. Corporate Cash increased to $562,759 (in thousands) from $430,060 (in thousands) in Q2 2026, while total debt increased to $7,836,000 (in thousands) and the leverage ratio was 1.93x. Management narrowed its 2026 Core G&A outlook range to $2,140-2,160 million, including Commonwealth expenses. Commonwealth conversion remains on track for the fourth quarter of 2026, with expected asset retention of approximately 83% and estimated run-rate EBITDA of $415 million.
Management, verbatim
After an outstanding first half of the year, we delivered another quarter of strong business performance and excellent financial results, while making meaningful progress on key strategic initiatives.
Rich Steinmeier, CEO
We delivered improved organic growth, advanced our preparation to onboard Commonwealth, and began the roll out of our proprietary AI agent, Cyan, to advisors.
Rich Steinmeier, CEO
The team delivered another quarter of outstanding results, highlighted by strong organic growth and record adjusted earnings per share, all while advancing our advisor experience and executing on our capital allocation strategy
Matt Audette, President and CFO
Not in the filing
stated, not guessed- Operating cash flow was not reported.
- Free cash flow was not reported.
- A GAAP or non-GAAP gross margin was not reported.
- Revenue guidance was not reported.
- Tax-rate guidance was not reported.
- Prior guidance was not provided, so actual performance versus prior guidance cannot be assessed.
- A full cash flow statement was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.