Free cash flow remains highly erratic, swinging from a negative $1.9 billion in 2025Q3 to a positive $490.2 million in 2025Q4 due to acquisition-related cash outflows.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Cash from Operations | -573.91M | -423.04M | 277.59M | 512.61M | 1.95B | 453.13M | 789.94M | 623.87M | 581.58M | 443.78M | 274.84M | 279.45M | 232.24M | 160.12M | 254.27M | 442.38M | -22.91M | 271.16M | 89.28M | 10.07M | 139.23M |
| Operating CF Margin % | - | -2.49% | 2.24% | 5.1% | 22.62% | 5.87% | 13.45% | 11.09% | 11.21% | 10.37% | 6.79% | 6.54% | 5.31% | 3.87% | 6.95% | 12.71% | -0.74% | 9.86% | 2.86% | 0.37% | 8% |
| Operating CF Growth % | -259.49% | -252.4% | -45.85% | -73.65% | 329.36% | -42.64% | 26.62% | 7.27% | 31.05% | 61.47% | -1.65% | 20.33% | 45.05% | -37.03% | -42.52% | 2030.6% | -108.45% | 203.73% | 786.39% | -92.77% | - |
| Net Income | 900.86M | 863.02M | 1.06B | 1.07B | 845.7M | 459.87M | 472.64M | 559.88M | 439.46M | 238.86M | 191.93M | 168.78M | 178.04M | 181.86M | 151.92M | 170.38M | -56.86M | 47.52M | 45.5M | 61.07M | 33.64M |
| Depreciation & Amortization | 670.62M | 651.61M | 443.76M | 354.2M | 287.38M | 230.69M | 177.09M | 161.11M | 147.91M | 122.36M | 113.96M | 111.62M | 96.84M | 83.5M | 71.8M | 72.74M | 86.04M | 108.3M | 100.46M | 78.75M | 65.35M |
| Stock-Based Compensation | 60.15M | 79.4M | 91.76M | 68.67M | 52.61M | 44.17M | 33.98M | 32.86M | 29.16M | 28.52M | 24.9M | 29.21M | 27.58M | 24.67M | 21.12M | 18.25M | 237.12M | 8.12M | 4.86M | 2.16M | 2.88M |
| Deferred Taxes | -277K | 52.94M | -76.24M | -68.45M | -93.35M | 18.46M | -23.68M | -18.61M | -1.75M | -9.39M | -11.55M | -30.15M | -24.1M | -28.94M | -12.22M | -8.43M | -21.62M | -41.46M | -26.14M | -21.32M | -19.4M |
| Other Non-Cash Items | 667.53M | 539.71M | 405.59M | 287.37M | 214.83M | 180.72M | 111.66M | 95.61M | 87.2M | 68.95M | 51.1M | 51.49M | 33.08M | 51.73M | -13.51M | -41.68M | -38.37M | 35.67M | 15.8M | 20.18M | 1.04M |
| Working Capital Changes | -2.87B | -2.61B | -1.65B | -1.2B | 638.41M | -480.78M | 18.26M | -206.98M | -120.39M | -5.53M | -95.5M | -51.51M | -79.2M | -152.71M | 35.16M | 231.12M | -229.22M | 113.01M | -51.2M | -130.76M | 55.73M |
| Change in Receivables | -2.3B | -2.19B | -1.29B | -687.63M | -385.98M | -845.7M | -267.19M | -318.12M | -212.59M | -135.32M | -120.46M | -34.5M | -45.39M | -78.7M | -130.97M | 6.99M | -80.5M | 46.83M | 44.01M | -174.64M | -90.71M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 322.34M | 591.67M | -364.68M | -381.91M | 1.01B | 270.47M | 248.13M | 117.62M | 53.96M | 156.76M | 164.86M | 147.39M | 81.67M | -146.05M | 331.81M | 48.1M | -74.52M | 27.18M | 56.77M | 143.42M | 92.03M |
| Cash from Investing | -2.39B | -2.37B | -1.59B | -860.19M | -376.4M | -458.64M | -187.5M | -180.99M | -161.75M | -437.69M | -125.29M | -74.95M | -93.13M | -74.81M | -91.67M | -65.56M | -39.19M | -13.72M | -76.2M | -168.28M | -30.41M |
| Capital Expenditures | -616.67M | -570.38M | -562.53M | -403.29M | -306.6M | -215.99M | -155.53M | -156.39M | -132.69M | -272.23M | -127.65M | -72.56M | -98.65M | -78.24M | -54.79M | -36.35M | -23.09M | -8.31M | -62.81M | -74.74M | -23.04M |
| CapEx % of Revenue | 3.38% | 3.36% | 4.54% | 4.01% | 3.56% | 2.8% | 2.65% | 2.78% | 2.56% | 6.36% | 3.15% | 1.7% | 2.26% | 1.89% | 1.5% | 1.04% | 0.74% | 0.3% | 2.02% | 2.75% | 1.32% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 472.25M | 183.06M | 336.16M | 268.44M | 174.86M | 144.17M | 95.58M | 37.75M | 22.67M | 23.21M | 17.27M | 17.54M | 18.06M | 14.42M | 17.39M | 16.56M | 18.82M | 25.82M | 21.32M | 25.74M | 18.18M |
| Other Investing | 105.4M | 4.81M | -9.61M | 0 | 0 | 0 | 0 | 0 | 0 | 12K | 0 | -1.13M | 7.26M | -685K | 7.49M | 14.45M | -16.91M | -5.4M | 0 | 41K | 9K |
| Cash from Financing | 3.01B | 3.17B | 1.42B | -208.53M | -504.27M | 278.84M | -275.19M | -533.23M | -483.36M | 57.34M | -126.37M | 107.69M | -243.36M | -34.98M | -417.11M | -75.26M | 102.72M | -98.08M | 18.16M | 101.04M | 1.75M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 3.41B | -133.49M | -170.1M | -1.1B | -325.03M | -90.01M | -150.04M | -500.37M | -417.89M | -113.73M | -25.01M | -390.83M | -275.08M | -219.09M | -199.12M | -89.04M | 41.8M | -181K | 217K | 0 | 0 |
| Dividends Paid | -96.07M | -94.41M | -89.73M | -92.19M | -79.83M | -80.09M | -79.1M | -82.6M | -88.36M | -90.27M | -89.08M | -95.81M | -95.62M | -68.01M | -248.81M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 1.72B | -133.49M | -170.1M | -1.1B | -325.03M | -90.01M | -150.04M | -500.37M | -417.89M | -113.73M | -25.01M | -390.83M | -275.08M | -219.09M | -199.12M | -89.04M | 0 | -181K | -3.78M | 0 | 0 |
| Other Financing | -1.8B | 1.62B | -80.53M | -34.81M | 1.7M | -29M | 10.82M | 16.68M | 46.7M | 57.15M | 5.69M | 20.56M | 28.17M | 39.74M | 64.98M | 67.75M | 86.36M | 65K | 1.25M | -693K | -549K |
| Net Change in Cash | 51.27M | 370.69M | 102.89M | -556.11M | 1.06B | 273.33M | 327.26M | -90.34M | -63.54M | 63.43M | 23.18M | 312.2M | -104.25M | 50.32M | -254.51M | 301.56M | 40.61M | 159.35M | 31.24M | -57.16M | 110.57M |
| Free Cash Flow | -1.19B | -993.42M | -284.94M | 109.33M | 1.64B | 237.15M | 634.41M | 467.48M | 420.96M | 171.55M | 147.19M | 206.89M | 133.59M | 81.88M | 199.48M | 406.03M | -46.01M | 262.84M | 26.46M | -64.67M | 116.19M |
| FCF Margin % | -6.52% | -5.85% | -2.3% | 1.09% | 19.06% | 3.07% | 10.8% | 8.31% | 8.11% | 4.01% | 3.63% | 4.84% | 3.05% | 1.98% | 5.45% | 11.67% | -1.48% | 9.56% | 0.85% | -2.38% | 6.68% |
| FCF Growth % | -222.23% | -248.64% | -360.64% | -93.33% | 591.12% | -62.62% | 35.71% | 11.05% | 145.39% | 16.55% | -28.85% | 54.86% | 63.16% | -58.95% | -50.87% | 982.5% | -117.5% | 893.18% | 140.93% | -155.66% | - |
| FCF per Share | -14.80 | -12.57 | -3.78 | 1.40 | 20.16 | 2.90 | 7.86 | 5.52 | 4.65 | 1.86 | 1.64 | 2.14 | 1.31 | 0.77 | 1.80 | 3.62 | -0.51 | 2.65 | 0.27 | -0.65 | 1.17 |
| FCF Conversion (FCF/Net Income) | -1.32x | -0.49x | 0.26x | 0.48x | 2.30x | 0.99x | 1.67x | 1.11x | 1.32x | 1.86x | 1.43x | 1.66x | 1.30x | 0.88x | 1.67x | 2.60x | 0.40x | 5.71x | 1.96x | 0.16x | 4.14x |
| Interest Paid | 398.65M | 379.92M | 268.35M | 191.35M | 118.82M | 103.69M | 106.88M | 126.95M | 123.62M | 92.65M | 92.34M | 51.11M | 51.59M | 51.71M | 54.88M | 68.67M | 92.89M | 101.13M | 116.58M | 124.38M | 123.39M |
| Taxes Paid | 317.47M | 0 | 320.26M | 535.96M | 238.16M | 144.56M | 169.24M | 213.34M | 122.22M | 139.2M | 122.91M | 131.83M | 139.31M | 123.58M | 62.26M | 60.65M | 63.39M | 54.92M | 71.49M | 66.08M | 10.58M |
Integration and acquisition volatility
As reported in recent financial statements, LPLA's operating cash flow to net income ratio has exhibited extreme volatility, ranging from a negative 0.66 in 2024Q4 to an anomalous 58.59 in 2025Q3, suggesting that reported net income is a poor proxy for the firm's underlying cash generation capabilities.
The significant divergence between net income and operating cash flow appears driven by substantial working capital swings and non-cash charges associated with rapid inorganic expansion. Investors should monitor whether this disconnect reflects temporary timing differences in advisor-related settlements or a more structural difficulty in converting accounting profits into realized liquidity.
Based on LPLA's reported figures, free cash flow has demonstrated erratic performance, swinging from a negative $1.9 billion in 2025Q3 to a positive $490.2 million in 2025Q4, which highlights the sensitivity of cash flow margins to the timing of large-scale acquisition and integration-related cash outflows.
The inconsistent FCF trajectory suggests that the firm's cash generation is currently subordinate to its aggressive growth-by-acquisition strategy. This pattern warrants further investigation into whether the firm can achieve sustainable free cash flow margins once the pace of inorganic expansion eventually moderates.
According to quarterly SEC filings, LPLA has consistently faced significant working capital outflows, including a $2.0 billion drain in 2025Q3, indicating that the firm's operational model requires substantial liquidity to manage the timing of advisor transitions and the settlement of large-scale institutional business contracts.
These recurring working capital deficits suggest that the firm's growth is inherently cash-intensive, likely due to the upfront costs of onboarding new advisor books. The persistent negative working capital changes imply that cash flow is frequently consumed by the operational requirements of scaling the platform rather than being available for shareholder returns.
As evidenced by the provided data, LPLA has prioritized acquisition-related cash outflows, such as the $1.5 billion spent in 2025Q3, over consistent share repurchases, which have been sporadic and occasionally offset by large-scale capital deployment into the firm's expanding advisor network and institutional infrastructure.
The firm's capital allocation strategy appears heavily weighted toward maintaining its competitive position through M&A, which may limit the flexibility of cash available for dividends or buybacks. This approach suggests that management views the current market environment as a critical window for capturing market share, even at the expense of short-term cash flow stability.
Quick answers to the most common questions about buying LPLA stock.
LPL Financial Holdings Inc. (LPLA) generated $-423.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
LPL Financial Holdings Inc. (LPLA) reported negative free cash flow of $993.4M in 2025, indicating capital requirements exceeded cash from operations.
LPL Financial Holdings Inc. (LPLA) spent $570.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, LPL Financial Holdings Inc. (LPLA) returned $94.4M to shareholders via cash dividends and spent $133.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.