Revenue growth has been robust, yet gross margins have contracted from 28.0% in 2023Q4 to 23.7% in 2025Q4, reflecting competitive pressures on advisor payouts.
| 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 |
|---|
| Sales/Revenue | 18.26B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 4.3B | 4.35B | 3.37B | 3.05B | 2.37B | 1.71B | 1.49B | 1.62B | 1.44B | 1.1B | 957.69M | 917.68M | 904.12M | 847.05M | 749.55M | 708.83M | 407.3M | 574.49M | 610.13M | 523.9M | 371.43M |
| Gross Margin % | 23.56% | 25.59% | 27.21% | 30.35% | 27.55% | 22.2% | 25.45% | 28.73% | 27.77% | 25.64% | 23.65% | 21.47% | 20.67% | 20.46% | 20.47% | 20.37% | 13.08% | 20.89% | 19.58% | 19.29% | 21.35% |
| Gross Profit Growth % | - | 29.02% | 10.42% | 28.79% | 38.25% | 14.7% | -7.55% | 12.15% | 31.25% | 14.64% | 4.36% | 1.5% | 6.74% | 13.01% | 5.74% | 74.03% | -29.1% | -5.84% | 16.46% | 41.05% | - |
| Operating Expenses | 2.53B | 2.06B | 1.7B | 1.42B | 1.13B | 983.57M | 762.21M | 741.11M | 723.36M | 603.91M | 563.7M | 564.02M | 519.29M | 466.15M | 422.01M | 335.97M | 353.84M | 342.31M | 384.47M | 292.57M | 191.16M |
| OpEx % of Revenue | - | 12.14% | 13.75% | 14.12% | 13.15% | 12.74% | 12.98% | 13.18% | 13.94% | 14.11% | 13.92% | 13.19% | 11.87% | 11.26% | 11.53% | 9.66% | 11.36% | 12.45% | 12.34% | 10.77% | 10.99% |
| Selling, General & Admin | 2.04B | 2.48B | 1.04B | 856.15M | 1.16B | 621.34M | 484.11M | 465.45M | 456.17M | 385.34M | 353.15M | 334.7M | 313.11M | 268.72M | 246.94M | 216.64M | 193.24M | 186.19M | 229.92M | 167.02M | 98.58M |
| SG&A % of Revenue | - | 14.57% | 8.4% | 8.52% | 13.5% | 8.05% | 8.24% | 8.27% | 8.79% | 9% | 8.72% | 7.83% | 7.16% | 6.49% | 6.74% | 6.23% | 6.21% | 6.77% | 7.38% | 6.15% | 5.67% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 1.77B | 2.28B | 1.67B | 1.63B | 1.24B | 730.14M | 731.84M | 874.99M | 717.66M | 494M | 393.99M | 353.66M | 384.83M | 380.9M | 327.54M | 372.86M | 53.46M | 232.18M | 225.66M | 231.33M | 180.27M |
| Operating Margin % | 9.72% | 13.45% | 13.46% | 16.23% | 14.39% | 9.46% | 12.46% | 15.56% | 13.83% | 11.54% | 9.73% | 8.27% | 8.8% | 9.2% | 8.95% | 10.72% | 1.72% | 8.44% | 7.24% | 8.52% | 10.36% |
| Operating Income Growth % | - | 37.06% | 2.18% | 31.8% | 69.54% | -0.23% | -16.36% | 21.92% | 45.27% | 25.38% | 11.41% | -8.1% | 1.03% | 16.29% | -12.15% | 597.46% | -76.98% | 2.89% | -2.45% | 28.32% | - |
| EBITDA | 2.44B | 2.91B | 2.11B | 1.99B | 1.53B | 960.83M | 908.93M | 1.04B | 865.57M | 616.37M | 507.96M | 465.28M | 481.68M | 464.4M | 399.33M | 445.6M | 139.5M | 340.48M | 326.13M | 310.08M | 245.62M |
| EBITDA Margin % | 13.37% | 17.16% | 17.04% | 19.75% | 17.73% | 12.44% | 15.48% | 18.42% | 16.68% | 14.4% | 12.54% | 10.88% | 11.01% | 11.22% | 10.91% | 12.81% | 4.48% | 12.38% | 10.46% | 11.41% | 14.12% |
| EBITDA Growth % | 8.96% | 38.09% | 6.3% | 30.19% | 58.74% | 5.71% | -12.27% | 19.7% | 40.43% | 21.34% | 9.17% | -3.4% | 3.72% | 16.29% | -10.38% | 219.43% | -59.03% | 4.4% | 5.18% | 26.24% | - |
| D&A (Non-Cash Add-back) | 667.12M | 630.01M | 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 |
| EBIT | 1.63B | 1.55B | 1.67B | 1.63B | 1.24B | 705.74M | 731.84M | 871.84M | 717.66M | 471.6M | 393.99M | 341.69M | 346.24M | 342.75M | 305.42M | 351.45M | 1.56M | 173.49M | 208.32M | 230.65M | 180.27M |
| Net Interest Income | -322.69M | -171.79M | -274.18M | -186.8M | -126.23M | -75.84M | -76.35M | -83.49M | -84.81M | -82.55M | -75.2M | -39.94M | -32.56M | -33.56M | -36.08M | -48.7M | -70.6M | -80.38M | -81.87M | -87.14M | -97M |
| Interest Income | 95.14M | 231.62M | 0 | 0 | 0 | 28.58M | 29.41M | 46.51M | 40.21M | 24.47M | 21.28M | 19.19M | 18.98M | 17.89M | 18.74M | 20.07M | 19.81M | 20.55M | 33.68M | 35.68M | 28.4M |
| Interest Expense | 417.84M | 403.41M | 274.18M | 186.8M | 126.23M | 104.41M | 105.77M | 130M | 125.02M | 107.03M | 96.48M | 59.14M | 51.54M | 51.45M | 54.83M | 68.76M | 90.41M | 100.92M | 115.56M | 122.82M | 125.4M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 1.22B | 1.15B | 1.39B | 1.44B | 1.11B | 601.33M | 626.07M | 741.84M | 592.64M | 364.57M | 297.52M | 282.56M | 294.7M | 291.3M | 250.59M | 282.69M | -88.85M | 72.57M | 92.77M | 107.83M | 54.87M |
| Pretax Margin % | 6.66% | 6.77% | 11.25% | 14.37% | 12.93% | 7.79% | 10.66% | 13.19% | 11.42% | 8.52% | 7.35% | 6.61% | 6.74% | 7.03% | 6.84% | 8.12% | -2.85% | 2.64% | 2.98% | 3.97% | 3.15% |
| Income Tax | 315.98M | 286.48M | 334.28M | 378.52M | 265.95M | 141.46M | 153.43M | 181.96M | 153.18M | 125.71M | 105.58M | 113.77M | 116.65M | 109.45M | 98.67M | 112.3M | -31.99M | 25.05M | 47.27M | 46.76M | 21.22M |
| Effective Tax Rate % | 25.97% | 24.92% | 24% | 26.2% | 23.92% | 23.53% | 24.51% | 24.53% | 25.85% | 34.48% | 35.49% | 40.27% | 39.58% | 37.57% | 39.38% | 39.73% | 36% | 34.52% | 50.96% | 43.37% | 38.68% |
| 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 |
| Net Margin % | 4.93% | 5.08% | 8.55% | 10.61% | 9.83% | 5.96% | 8.05% | 9.95% | 8.47% | 5.58% | 4.74% | 3.95% | 4.07% | 4.39% | 4.15% | 4.9% | -1.83% | 1.73% | 1.46% | 2.25% | 1.93% |
| Net Income Growth % | -17.23% | -18.48% | -0.72% | 26.08% | 83.9% | -2.7% | -15.58% | 27.4% | 83.98% | 24.45% | 13.71% | -5.2% | -2.1% | 19.71% | -10.84% | 399.64% | -219.66% | 4.45% | -25.5% | 81.53% | - |
| Net Income (Continuing) | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 11.20 | 10.92 | 14.03 | 13.69 | 10.40 | 5.63 | 5.86 | 6.62 | 4.85 | 2.59 | 2.13 | 1.74 | 1.75 | 1.72 | 1.37 | 1.50 | -0.64 | 0.48 | 0.46 | 0.61 | 0.34 |
| EPS Growth % | -22.49% | -22.17% | 2.48% | 31.63% | 84.72% | -3.92% | -11.48% | 36.49% | 87.26% | 21.6% | 22.41% | -0.57% | 1.74% | 25.55% | -8.67% | 334.38% | -233.33% | 4.35% | -24.59% | 79.41% | - |
| EPS (Basic) | - | 10.97 | 14.17 | 13.88 | 10.60 | 5.75 | 5.96 | 6.78 | 4.99 | 2.65 | 2.15 | 1.77 | 1.78 | 1.74 | 1.39 | 1.55 | -0.64 | 0.55 | 0.52 | 0.70 | 0.39 |
| Diluted Shares Outstanding | 80.45M | 79.06M | 75.43M | 77.86M | 81.28M | 81.74M | 80.7M | 84.62M | 90.62M | 92.11M | 90.01M | 96.79M | 101.65M | 106M | 111.06M | 112.12M | 89.44M | 99.3M | 99.3M | 99.3M | 99.3M |
| Basic Shares Outstanding | 80.11M | 78.68M | 74.71M | 76.81M | 79.8M | 80M | 79.24M | 82.55M | 88.12M | 90M | 89.07M | 95.27M | 99.85M | 104.7M | 109.44M | 108.37M | 89.44M | 86.82M | 86.82M | 86.82M | 86.82M |
| Dividend Payout Ratio | - | 10.94% | 8.48% | 8.65% | 9.44% | 17.42% | 16.74% | 14.75% | 20.11% | 37.79% | 46.41% | 56.77% | 53.7% | 37.4% | 163.78% | - | - | - | - | - | - |
Net interest margin compression
As evidenced by quarterly financial data, LPLA has demonstrated significant top-line expansion, with revenue climbing from $2.6 billion in 2023Q4 to $4.9 billion by 2026Q1, largely driven by aggressive acquisition strategies and the successful onboarding of large-scale institutional partners like Prudential's retail wealth management business.
The revenue trajectory suggests a successful execution of the firm's enterprise strategy, which prioritizes scale to offset fixed technology costs. Investors should monitor whether this growth remains durable as the firm integrates recent acquisitions like Atria Wealth Innovations, which may temporarily obscure organic growth trends.
Based on reported income statements, LPLA's gross margin has experienced notable volatility, contracting from 28.0% in 2023Q4 to 23.7% in 2025Q4, reflecting the inherent sensitivity of the independent broker-dealer model to advisor payout ratios and the competitive landscape for high-producing talent recruitment.
The compression in gross margins appears to be a direct consequence of the 'recruitment arms race,' where the firm must offer increasingly lucrative transition assistance to attract advisors. This trend warrants further investigation into whether the firm can maintain its current payout structure without further eroding profitability.
According to recent financial filings, LPLA's operating margin has fluctuated significantly, reaching a low of 1.6% in 2025Q3 before recovering to 13.1% in 2026Q1, indicating that operating leverage remains highly sensitive to SG&A spikes associated with integration efforts and variable compensation structures.
The inconsistency in operating income suggests that while the firm benefits from scale, the cost of integrating new advisor networks creates periodic margin drag. Analysts should interpret the 2025Q3 dip as a potential indicator of the high operational complexity involved in scaling the platform through inorganic means.
As reported in quarterly statements, LPLA's net income has shown significant instability, including a net loss of $29.5 million in 2025Q3, which highlights the impact of non-operating items and integration-related expenses on the bottom line despite consistent growth in top-line revenue figures.
The earnings quality appears impacted by the timing of transition assistance amortization and acquisition-related costs, which may mask the underlying profitability of the core business. Investors should be cautious of relying on headline EPS figures without adjusting for these recurring, yet non-operational, accounting charges.
Based on the provided income statement data, LPLA's profitability has been bolstered by high-margin cash sweep revenue, yet the potential for a Federal Reserve pivot toward rate cuts poses a material risk to the firm's net interest margin, which has historically acted as a significant earnings tailwind.
Short-term margin expansion may be unsustainable if client 'cash sorting' accelerates in a lower-rate environment, potentially forcing the firm to rely more heavily on its core advisory fee business. This shift could lead to a re-rating of the stock if the market perceives the current earnings level as overly dependent on interest rate spreads.
Quick answers to the most common questions about buying LPLA stock.
LPL Financial Holdings Inc. (LPLA) is profitable, generating $863.0M in net income for the fiscal year ending 2025 with a net profit margin of 5.1%.
LPL Financial Holdings Inc. (LPLA) reported an operating income of $2.28B, resulting in an operating profit margin of 13.4%. This margin reflects the operational efficiency of the business before interest and taxes.
LPL Financial Holdings Inc. (LPLA) generated $4.35B in gross profit for the year, representing a gross profit margin of 25.6%. This demonstrates the company's core pricing power and production efficiency.