Slides
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LPL Financial Holdings Inc. Q3 2025 Key Metrics October 30, 2025 Member FINRA/SIPC
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2 Statements in this presentation regarding LPL Financial Holdings Inc.’s (together with its subsidiaries, the “Company”) future financial and operating results, growth, plans, priorities, business strategies, capabilities and outlook, including forecasts and statements relating to the Company’s future advisory and brokerage asset levels and mix, organic asset growth, deposit betas, core G&A* expenses (including outlook for 2025), promotional, share-based compensation and depreciation and amortization expenses, Gross Profit* benefits, EBITDA* benefits, target leverage ratio, client cash balances and yields, service and fee revenue, transaction revenue, investments, acquisitions, capital returns, planned share repurchases, if any, and the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, as well as any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. They reflect the Company’s expectations as of October 30, 2025 and are not guarantees that the expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include: difficulties and delays in onboarding the assets of acquired or recruited advisors, including the receipt and timing of regulatory approvals that may be required; disruptions in the businesses of the Company that could make it more difficult to maintain relationships with advisors and their clients; the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company; changes in general economic and financial market conditions, including retail investor sentiment; changes in interest rates and fees payable by banks participating in the Company’s client cash programs, including the Company’s success in negotiating agreements with current or additional counterparties; the Company’s strategy and success in managing client cash program fees; changes in the growth and profitability of the Company’s fee-based offerings and asset-based revenues; fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue; effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively; whether the retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company; the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations; the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance; changes made to the Company’s services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company’s Gross Profit* streams and costs; execution of the Company's capital management plans, including its compliance with the terms of the Company's amended and restated credit agreement, the committed revolving credit facilities of the Company, and the indentures governing the Company's senior unsecured notes; strategic acquisitions and investments, including pursuant to the Company's liquidity and succession solution, and the effect that such acquisitions and investments may have on the Company's capital management plans and liquidity; the price, availability and trading volumes of shares of the Company's common stock, which will affect the timing and size of future share repurchases by the Company, if any; whether advisors affiliated with Commonwealth Financial Network (“Commonwealth”) will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company; the execution of the Company’s plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives; the performance of third-party service providers to which business processes have been transitioned; the Company's ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and the other factors set forth in the Company’s most recent Annual Report on Form 10-K, as may be amended or updated in the Company’s Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission. Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after October 30, 2025 and you should not rely on statements contained herein as representing the Company’s view as of any date subsequent to October 30, 2025. Notice to Investors: Safe Harbor Statement LPL Financial Member FINRA/SIPC THIS PRESENTATION INCLUDES DATA AS OF SEPTEMBER 30, 2025, UNLESS OTHERWISE INDICATED
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3 Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non -GAAP financial measures and metrics discussed herein are appropriate for evaluating the performance of the Company. Specific Non -GAAP financial measures have been marked with an asterisk (*) within this presentation. Reconciliations and calculations of such measures can be found in the appendix of this presentation. Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net (loss) income plus the after-tax impact of amortization of other intangibles, acquisition costs, certain regulatory charges, losses on extinguishment of debt, and amounts related to the departure of the Company’s former Chief Executive Officer, divided by the weighted average n umber of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, acquisition costs and certain other charges that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net (loss) income, (loss) earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reco nciliation of net (loss) income and (loss) earnings per diluted share to adjusted net income and adjusted EPS, please see the appendix of this presentation. Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense (“ BC&E”); and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and adm inistrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative i n nature. For a calculation of gross profit, please see the appendix of this presentation. Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; inter est expense on borrowings; BC&E; amortization of other intangibles; market fluctuations on employee deferred compensation; losses on extinguishment of debt; promotional (ongoing); employee share -based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items o ver which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transiti on assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company’s total expense to core G&A, please see the appendix of this presentation. The Comp any does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliatio n of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort. EBITDA is defined as net (loss) income plus interest expense on borrowings, (benefit from) provision for income taxes, deprec iation and amortization and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non - GAAP measure, plus acquisition costs, certain regulatory charges, amounts related to the departure of the Company’s former Chief Executive Officer, and losses on extinguishment of debt. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from ope rations. EBITDA and adjusted EBITDA are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net (loss) income or any other performance measure derived in accordance with GAAP. For a reconciliation of net (loss) income to EBITDA and adjusted EBITDA, please see the appendix of this presentation. Adjusted pre-tax income is defined as (loss) income before (benefit from) provision for income taxes plus amortization of other intangibles, acquisition costs, certain regulatory charges, amounts related to the departure of the Company's former Chief Executive Officer, and losses on extinguishment of debt. The Company presents adjusted pre -tax income because management believes that it can provide investors with useful insight into the Company's core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company's ongoing operations. Adjusted pre-tax income is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to (loss) income before (benefit from) provision for in come taxes or any other performance measure derived in accordance with GAAP. For a reconciliation of (loss) income before (benefit from) provision for income taxes to adjusted pre-tax income, please see the appendix of this presentation. Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company’s amended and restated cr edit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is consolidated net income (as defined in the Credit Agreement) plus interest expense on borrowings, (benefit from) provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non -cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies f rom certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agr eement. Credit Agreement EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net (loss) income or any other performance measure derived in accordance with G AAP. For a reconciliation of net (loss) income to Credit Agreement EBITDA, please see the appendix of this presentation. Notice to Investors: Non-GAAP Financial Measures LPL Financial Member FINRA/SIPC THIS PRESENTATION INCLUDES DATA AS OF SEPTEMBER 30, 2025, UNLESS OTHERWISE INDICATED
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4 98.8 98.4 97.4 98.4 97.0 97.3 98.2 97.6 96.4 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 $29.0 $27.0 $68.0 $70.9 $32.7 $5.0 $0.6 $89.3 $7.9 $275.0 $33.2 $24.7 $16.7 $34.0 $27.5 $157.3 $78.8 $20.5 $307.7 10.7% 8.0% 4.9% 8.1% 7.2% 17.1% 16.3% 4.6% 6.8% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 $31.2 $16.9 $20.2 $24.3 $25.7 $78.7 $38.6 $18.4 $32.6 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 $1,238 $1,354 $1,441 $1,498 $1,592 $1,741 $1,795 $1,919 $2,315 53.5% 54.3% 55.0% 55.4% 56.0% 55.0% 54.5% 55.3% 58.2% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 ◼ Organic Total NNA ◼ Acquired Total NNA(2) ◼ Organic Annualized Growth Rate Operating Metrics Total Advisory and Brokerage Assets ($B) Total Net New Assets (“NNA”)(1) ($B) Recruited Assets(3)(4) ($B) AUM Retention Rate(5) (Quarterly % Annualized) ◼ Total Advisory and Brokerage Assets Advisory Assets % of Total Assets YOY Change 45% 2.2 pts ~97% average retention over the past 4 quarters~$168B of Recruited AUM over past 4 quarters LPL Financial Member FINRA/SIPC ~12% organic growth over past 4 quarters
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5 $3.74 $3.51 $4.21 $3.88 $4.16 $4.25 $5.15 $4.51 $5.20 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 38.7 35.5 38.7 36.9 37.2 33.5 40.0 37.6 38.4 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 $391 $357 $413 $398 $420 $411 $509 $490 $569 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 $1,010 $1,007 $1,066 $1,079 $1,128 $1,228 $1,273 $1,304 $1,479 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 Financial Results Gross Profit* ($M) Adjusted Pre-Tax Income* ($M) Adjusted Pre-Tax Margin‡ Adjusted EPS* $19.11 of EPS* over past 4 quarters YOY Change 31% YOY Change 1.2 pts YOY Change 35% YOY Change 25% LPL Financial Member FINRA/SIPC † The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards. ‡ Adjusted Pre-Tax Income* as a % of Gross Profit* †
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6 $2.7 $2.6 $3.6 $3.7 $3.5 $4.8 $5.9 $6.4 $6.8 $22.7 $20.5 $16.2 $26.6 $23.2 $49.3 $35.7 $23.1 $29.6 13.7% 12.4% 8.8% 13.4% 11.2% 22.1% 14.9% 9.5% 11.2% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 ($2.7) ($2.6) ($3.6) ($3.7) ($3.5) ($4.8) ($5.9) ($2.6) ($6.8) $10.5 $4.2 $0.5 $2.5 $3.8 $18.8 $35.2 ($6.4) $3.1 7.2% 2.9% 0.3% 1.5% 2.3% 10.7% 17.9% (1.2%) 1.4% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 $33.2 $24.7 $16.7 $29.0 $27.0 $68.0 $70.9 $20.5 $32.7 10.7% 8.0% 4.9% 8.1% 7.2% 17.1% 16.3% 4.6% 6.8% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 ◼ Organic Brokerage NNA Net Brokerage to Advisory Conversions(7) Organic Annualized Growth Rate ◼ Organic Advisory NNA Net Brokerage to Advisory Conversions(6) Organic Annualized Growth Rate ◼ Organic Total NNA Organic Annualized Growth Rate Organic Net New Asset growth rate was ~7% in Q3 and ~12% over the past 4 quarters Total Organic Net New Assets(1) ($B) Organic Net New Brokerage Assets(1)(6) ($B)Organic Net New Advisory Assets(1)(6) ($B) LPL Financial Member FINRA/SIPC ~12% organic growth over past 4 quarters
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7 $4.4 $3.0 $3.6 $4.4 $4.4 $24.9 $6.5 $6.1 $9.9 17.8% 12.0% 12.8% 14.6% 14.0% 72.0% 16.2% 14.8% 21.5% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 $101 $112 $122 $127 $138 $160 $164 $183 $203 15.2% 15.2% 15.3% 15.3% 15.5% 16.7% 16.8% 17.3% 15.1% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 Centrally Managed Assets grew at a 34% organic growth rate over the past 4 quarters Centrally Managed Assets(8) ($B) Organic Net New Centrally Managed Assets(9) ($B) ◼ Centrally Managed Assets Centrally Managed Assets % of Total Advisory Assets ◼ Organic Centrally Managed NNA Organic Annualized Growth Rate YOY Change 47% (0.4) pts ~34% organic growth over past 4 quarters LPL Financial Member FINRA/SIPC
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8 $35.6 $32.8 $37.8 $39.3 $37.7 $38.3 $42.0 $36.6 $41.8 3.8% 3.6% 3.2% 2.9% 2.9% 3.2% 3.0% 2.6% 2.4% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 87.3 87.6 86.6 87.3 87.5 87.8 86.8 87.3 87.5 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 Net Buy (Sell) Activity was $42B in Q3; the Payout Rate was 87.5% Net Buy (Sell) Activity(10) ($B) Payout Rate (%) ◼ Net Buy (Sell) Activity Client Cash % of Total Advisory and Brokerage Assets ~87% average payout over past 4 quarters LPL Financial Member FINRA/SIPC
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9 $50 $54 $57 $59 $59 $62 $68 $61 $67 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 $136 $131 $132 $135 $146 $139 $145 $152 $175 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 Service and Fee Revenue grew 20% year-over-year, as our advisor and account base continued to grow Service and Fee Revenue ($M) Transaction Revenue ($M) YOY Change 20% • Revenue from advisor and end-client investor services, including: technology, insurance, conferences, licensing, Services Group solutions, and IRA-based fees • Service and Fee revenue is a function of advisor and account growth and greater adoption of Services Group solutions • Transaction charges generated in both advisory and brokerage accounts from products including mutual funds, ETFs, and fixed income • Transaction revenue is a function of trading activity, but is becoming less sensitive to equity market volatility over time as business moves towards No Transaction Fee platforms LPL Financial Member FINRA/SIPC
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10 $1,186 $1,231 $1,290 $1,354 $1,428 $1,537 $1,638 $1,737 $1,890 33.6 bps 32.8 bps 31.6 bps 30.7 bps 30.1 bps 29.1 bps 28.5 bps 28.3 bps 27.8 bps 18.5 bps 18.8 bps 18.5 bps 18.3 bps 17.9 bps 17.6 bps 17.1 bps 16.7 bps 16.4 bps Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 ◼ Average Total Advisory & Brokerage Assets(11) Gross Profit* ROA(12) OPEX ROA(13) EBIT ROA decreased in Q3 Average Total Advisory & Brokerage Assets ($B) YOY Change SEQ Change 32% 9% (2.3) bps (0.5) bps (1.5) bps (0.3) bps EBIT ROA(14): Note: All periods are based on the trailing twelve months. EBIT ROA excludes acquisition costs and regulatory charges that are excluded from Adjusted Net Income as outlined on slide 23. LPL Financial Member FINRA/SIPC 15.1 bps 14.0 bps 13.1 bps 12.4 bps 12.2 bps 11.5 bps 11.4 bps 11.6 bps 11.4 bps (0.8) bps (0.2) bps
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11 6.9 7.1 7.1 7.1 7.1 7.2 7.4 7.5 7.7 7.0 7.1 7.1 7.1 7.1 7.0 6.9 6.7 6.6 0.8 0.8 0.8 0.8 0.8 0.7 0.6 0.6 0.5 4.2 4.1 4.0 3.9 3.8 3.6 3.4 3.3 3.2 0.8 0.8 0.8 0.8 0.9 0.8 0.8 1.0 1.0 13.9 12.9 11.8 11.0 10.4 9.8 9.4 9.2 8.8 33.6 32.8 31.6 30.7 30.1 29.1 28.5 28.3 27.8 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 19.7 19.9 19.8 19.7 19.7 19.3 19.1 19.1 19.0 Q3 Gross Profit* ROA decreased sequentially Gross Profit* ROA(11) (bps) Gross Profit* ROA prior to client cash: ◼ Client Cash ◼ Interest Income, net and Other Revenue ◼ Service and Fee ◼ Transaction, Net of BC&E ◼ Other Asset-Based(15) ◼ Net Advisory Fees and Commissions Note: All periods are based on the trailing twelve months. LPL Financial Member FINRA/SIPC
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12 11.2 11.1 10.9 10.6 10.2 9.9 9.6 9.3 9.2 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.1 3.6 4.0 4.0 4.1 4.2 4.1 4.0 3.8 3.7 0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.4 0.4 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.1 2.0 0.9 0.9 0.9 0.9 0.8 0.9 0.9 0.9 1.0 18.5 18.8 18.5 18.3 17.9 17.6 17.1 16.7 16.4 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 OPEX ROA decreased sequentially in Q3 Total OPEX % of Assets(13) (bps) ◼ Amortization of Other Intangible Assets ◼ D&A Expense (ex Amortization of Other Intangible Assets) ◼ Employee Share-based Compensation ◼ Promotional ◼ Regulatory ◼ Core G&A* Note: All periods are based on the trailing twelve months. OPEX ROA excludes regulatory charges that are excluded from Adjusted Net Income as outlined on slide 22. LPL Financial Member FINRA/SIPC
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13 $34.5 $33.1 $34.7 $37.3 $37.4 $34.1 $30.5 $30.0 $32.6 $40.8 $47.7 $46.8 $39.7 $36.0 $33.6 $34.5 $32.6 $31.0 $32.1 $38.3 $36.1 $34.2 $36.9 $8.7 $7.7 $8.0 $8.2 $7.9 $7.6 $8.6 $9.3 $9.4 $12.3 $12.7 $11.5 $10.2 $9.5 $9.1 $9.3 $9.2 $9.2 $9.6 $10.7 $10.7 $10.8 $13.0$3.0 $2.2 $2.2 $2.4 $2.2 $5.7 $10.7 $17.6 $18.8 $15.9 $6.0 $5.4 $4.2 $4.1 $4.1 $4.4 $4.4 $3.8 $4.1 $6.1 $6.3 $5.7 $6.0 $46.2 $43.0 $44.9 $47.9 $47.5 $47.5 $49.7 $56.9 $60.8 $69.0 $66.3 $63.8 $54.0 $49.6 $46.9 $48.2 $46.3 $44.0 $45.8 $55.1 $53.1 $50.6 $55.8 6.9% 5.6% 5.5% 5.3% 5.0% 4.3% 4.4% 4.7% 5.2% 6.5% 6.4% 5.7% 4.6% 4.0% 3.8% 3.6% 3.2% 2.9% 2.9% 3.2% 3.0% 2.6% 2.4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 2025 0 0 0 0 0 0 0 0 0 25 150 300 425 475 500 525 525 525 475 425 425 425 400 • By establishing sweep relationships across our ICA and DCA programs, we can leverage the balance sheets of our third-party bank partners • We do this through a combination of fixed and floating rate deposit agreements • We consider deposit pricing within our overall strategic pricing framework, and evaluate a number of external factors and industry benchmarks to ensure we’re competitively positioned – Our deposit beta has averaged ~15% since 2022 – Since the Fed began cutting rates in Sept. ’24, our deposit beta has averaged ~20%, including the most recent cut in Sept. ’25 We generate economics on client cash through a third-party bank network Our client cash balances are largely operational and decreased to 2.4% of total assets in Q3 Client Cash Balances(16) ($B) † Since the start of the previous interest rate cycle in Q3’16 Fed Funds target rate (EOP, lower limit in bps) • Our client cash balances are largely operational − Typically small balances used for rebalancing, paying advisory fees, and customer withdrawals – This is reflected in the low client cash balances, which average ~5% or ~$6.5K per account • We believe the primary factor that moves that % of client cash up or down is market sentiment rather than rate-seeking behavior • In Q3 2025, cash was 2.4% of client assets – Cash balances decreased in the quarter, driven by net buying of $42B Client cash as a % of assets has averaged ~5%† LPL Financial Member FINRA/SIPC ◼ CCA and Money Market Balances ◼ DCA Balances ◼ ICA Balances Client Cash as a percent of Total Assets
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14 Fixed rate ICA balances are ~60% of the ICA portfolio • Management target range for the ICA portfolio is 50-75% fixed rate contracts • In Q3’25, we renewed $1.5B of fixed rate contracts with maturities ranging from three to five years and an average yield of ~350 bps $1.6 $3.4 $3.1 $6.4 $2.3 $2.4 $0.7 $0.7 $0.3 $0.3 $1.0 $6.6 $2.5 $3.4 2025 2026 2027 2028 2029 2030 2031 2032 $22.0 $21.5 $21.5 $21.1 $20.2 $20.8 $21.0 $21.9 $21.9 $11.6 $13.0 $11.2 $9.9 $11.9 $17.5 $15.1 $12.3 $14.9 $33.6 $34.5 $32.6 $31.0 $32.1 $38.3 $36.1 $34.2 $36.9 ~65% ~60% ~65% ~70% ~65% ~55% ~60% ~65% ~60% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 ~395 ~330 ~425 ~410 ~375 ~390 ~380 ~385 Fixed rate balances make up ~60% of the ICA portfolio†, reducing our sensitivity to movement in short-term interest rates ICA Balances (end of period, $B) ◼ Variable ICA Balances ◼ Fixed Rate ICA Balances ◼ Fixed Rate ICA Balance % Note: Yields shown on this page are prior to client deposit rates (~64 bps) and administrator fees (~4 bps). Money market sweep balances are not subject to these costs. † Our ICA portfolio includes Commonwealth variable ICA balances held by a third-party custodian. Excluding Commonwealth ICA balances, fixed rate ICA balances are ~65% of the ICA portfolio. ‡ Weighted average yield across the fixed rate ICA ladder is ~390 bps Variable balances are primarily indexed to Fed Funds • Our variable ICA balances decreased in Q3’25, driven by net buying • Most variable balances are indexed to Fed Funds plus a spread (~10 to ~15 bps) • Currently, new variable contracts are averaging Fed Funds plus 10 to 20 bps New contracts added in Q3 Maturing ICA Contracts ($B) as of end of Q3 2025 Maturing Yield‡ (bps) LPL Financial Member FINRA/SIPC
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15 8% 13% 15% 8% ~4 - 5% 2021 Prior to Waddell & Reed 2022 2023 2024 Prior to Prudential and Atria 2025 Outlook Prior to Prudential, Atria and Commonwealth Long-term cost strategy 2025 Core G&A* Context Recent expense trajectory, prior to acquisitions Core G&A* outlook • Deliver operating leverage in core business • Prioritize investments that drive additional growth • Drive productivity and efficiency • Adapt cost trajectory as environment evolves We remain focused on investing to drive organic growth while delivering long-term operating leverage in our core business • Our previous 2025 Core G&A* outlook range was $1,880-1,920M • Given our performance to date, we are lowering our outlook range to $1,860-1,880M - This includes $165-170M of expenses related to Prudential† and Atria‡, as well as $160-165M of expenses related to Commonwealth • Prior to Prudential, Atria and Commonwealth, our outlook range is $1,535- 1,545M, or ~4-5% year-over-year growth Annual Core G&A* Growth LPL Financial Member FINRA/SIPC 2025 Outlook $1,860-1,880M 2025 Outlook Prior to Prudential, Atria and Commonwealth $1,535-1,545M Prudential and Atria $165-170M Commonwealth $160-165M § † Prudential Financial, Inc. (“Prudential”) ‡ Atria Wealth Solutions, Inc. (“Atria”) § 2022 Core G&A* growth is based on the Company’s total 2021 Core G&A*
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16 • Our strategy is to maintain a strong balance sheet that can absorb market volatility while having the capacity to invest for growth • A long-term target leverage range of 1.5x to 2.5x positions our balance sheet well over a range of cycles • We are willing to operate temporarily above or below our target range if conditions warrant Our balance sheet remains strong… Corporate Cash(17) ($M) Leverage Ratio(18) † Management’s corporate cash target reflects a level sufficient to meet our near-term corporate debt obligations Management Target Cash†: ~$200M Management Target Range: 1.5x-2.5x through the cycle LPL Financial Member FINRA/SIPC 1.26x 1.63x 1.65x 1.68x 1.61x 1.89x 1.82x 1.23x 2.04x Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 $309 $184 $311 $684 $708 $479 $621 $568 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 $3,617
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17 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $24 $23 $23 $23 $22 $22 $22 $23 $22 $24 $24 $150 $40 $50 $50 $50 $75 $150 $275 $350 $250 $225 $70 $100 $100 $170 $20 $20 $20 $20 $20 $60 $70 $70 $70 $95 $170 $299 $373 $273 $248 $92 $22 $22 $123 $122 $24 $24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 2025 ...And we have continued to return capital to shareholders Share Repurchases and Dividends ($M) ◼ Share Repurchases ◼ Dividends † Increased share repurchase authorization by $2B as of 09/21/2022, which we started to utilize in 2023 Average Diluted Share Count (M): $2B share repurchase authorization† Paused share repurchases following the announcement of the acquisition of Commonwealth Capital deployment focused on organic growth and M&A LPL Financial Member FINRA/SIPC Paused share repurchases following the announcement of the acquisition of Atria. In Q4 2024, resumed repurchases following the close of the acquisition. 81.2 80.1 80.6 80.9 81.6 81.7 81.8 81.7 81.6 81.4 81.3 80.9 80.0 78.2 77.1 76.2 75.5 75.5 75.4 75.3 75.1 80.4 80.4
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Appendix
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19 $17.0 $15.9 $13.9 $23.2 $23.5 $42.6 $29.8 $24.8 $29.0 $5.7 $4.6 $2.3 $3.4 ($0.3) $6.6 $5.9 ($1.7) $0.6 $22.7 $20.5 $16.2 $26.6 $23.2 $49.3 $35.7 $23.1 $29.6 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 $444 $497 $538 $568 $619 $678 $699 $766 $1,022$218 $239 $255 $261 $273 $279 $278 $294 $325 $663 $736 $793 $829 $892 $957 $977 $1,061 $1,347 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 Corporate and Independent RIA† Advisory assets Corporate and Independent RIA† Advisory Asset Mix ($B) Corporate and Independent RIA† Advisory NNA Mix ($B) ◼ Independent RIA† Advisory Assets(19) ◼ Corporate RIA Assets(19) ◼ Organic Independent RIA† Advisory NNA(20) ◼ Organic Corporate RIA NNA(20) YOY Change 51% 19% 65% Annualized Organic NNA Growth: † Independent RIA assets consist of the advisory assets of Independent RIA advisors who have their own independent RIA license and also manage brokerage assets, as well as the advisory assets of fee-only Independent RIAs LPL Financial Member FINRA/SIPC 10% 8% 4% 5% (1%) 10% 8% (2%) 1% 15% 14% 11% 17% 17% 28% 18% 14% 15% Independent RIA† Advisory Corporate RIA
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20 12.2 12.5 12.4 13.5 14.5 14.3 13.2 10.4 13.5 12.7 13.7 14.2 13.9 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2024 2025 1,592 1,673 1,759 1,741 1,812 1,823 1,795 1,788 1,854 1,919 1,939 2,264 2,315 56.0% 54.4% 55.4% 55.0% 54.8% 54.6% 54.5% 54.7% 55.1% 55.3% 55.5% 57.8% 58.2% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2024 2025 45.8 48.3 50.5 55.1 52.2 51.3 53.1 51.8 49.2 50.6 49.5 52.7 55.8 2.9% 2.9% 2.9% 3.2% 2.9% 2.8% 3.0% 2.9% 2.7% 2.6% 2.6% 2.3% 2.4% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2024 2025 0.3 88.3 0.8 0.3 0.1 0.7 7.1 11.7 96.6 35.0 25.8 34.1 24.5 20.2 6.1 6.5 8.0 5.5 9.4 8.8% 6.2% 24.6% 17.4% 23.4% 15.8% 8.6% 4.1% 4.4% 5.2% 3.4% 11.0% 5.0% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2024 2025 Monthly Metrics Dashboard through September 2025 Total Advisory and Brokerage Assets ($B) Total Net New Assets ($B) Client Cash Balances ($B) Net Buy (Sell) Activity ($B) ◼ Total Advisory and Brokerage Assets Advisory Assets % of Total Assets YOY Change SEQ Change 45% 2% 2.2 pts 0.4 pts YOY Change SEQ Change 22% 6% ◼ Total Client Cash Balances (EOP) ◼ Client Cash % of Total Advisory and Brokerage Assets † Calculated as current period total organic net new assets multiplied by twelve, divided by preceding period total advisory and brokerage assets LPL Financial Member FINRA/SIPC 292.8 275.0 ◼ Organic Total NNA ◼ Acquired Total NNA(2) ◼ Organic Annualized Growth Rate
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21 Gross Profit* Gross profit* is a non-GAAP financial measure. Please see a description of gross profit* under “Non-GAAP Financial Measures” on page 3 of this presentation for additional information. Below is a calculation of gross profit* for the periods presented herein: Net (Loss) Income to EBITDA*, Adjusted EBITDA*, and Credit Agreement EBITDA* EBITDA*, Adjusted EBITDA*, and Credit Agreement EBITDA* are non-GAAP financial measures. Please see a description of EBITDA*, Adjusted EBITDA*, and Credit Agreement EBITDA* under “Non-GAAP Financial Measures” on page 3 of this presentation for additional information. Below are reconciliations of the Company’s net (loss) income to EBITDA*, Adjusted EBITDA*, and Credit Agreement EBITDA* for the periods presented herein: $ in millions Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Total revenue(21) $4,552 $3,835 $3,670 $3,512 $3,108 $2,932 $2,833 $2,644 $2,522 Advisory and commission expense 3,025 2,483 2,354 2,250 1,948 1,819 1,733 1,608 1,488 Brokerage, clearing and exchange expense 43 43 44 35 30 33 31 26 25 Employee deferred compensation 4 4 (1) (1) 3 1 2 3 (1) Gross Profit(21) $1,479 $1,304 $1,273 $1,228 $1,128 $1,079 $1,066 $1,007 $1,010 Reconciliation Note: Totals may not foot due to rounding $ in millions Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Net (loss) income ($30) $273 $319 $271 $255 $244 $289 $218 $224 Interest expense on borrowings 106 106 86 82 68 64 60 54 48 (Benefit from) provision for income taxes (5) 96 99 71 92 86 85 76 93 Depreciation and amortization 100 96 92 92 78 71 67 68 65 Amortization of other intangibles 65 46 44 43 32 31 30 29 28 EBITDA $237 $617 $639 $558 $526 $496 $531 $445 $458 Acquisition costs excluding interest(22) 538 72 43 37 22 37 10 35 6 Regulatory charges(23) - - - - 18 - - - 40 Departure of former Chief Executive Officer(24) - - - (14) - - - - - Loss on extinguishment of debt - - - 4 - - - - - Adjusted EBITDA $775 $688 $682 $585 $566 $533 $541 $480 $504 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 EBITDA (trailing twelve months) $2,050 $2,340 $2,219 $2,111 $1,998 $1,930 $1,953 $1,986 $2,074 Credit Agreement adjustments 1,385 583 578 554 343 330 208 209 175 Credit Agreement EBITDA $3,435 $2,922 $2,798 $2,665 $2,341 $2,260 $2,160 $2,195 $2,249 Total debt 7,564 7,220 5,720 5,517 4,469 4,472 3,876 3,757 3,142 Total corporate cash 568 3,617 621 479 708 684 311 184 309 Credit Agreement Net Debt $6,996 $3,603 $5,099 $5,038 $3,761 $3,788 $3,564 $3,574 $2,833 Leverage Ratio 2.04x 1.23x 1.82x 1.89x 1.61x 1.68x 1.65x 1.63x 1.26x LPL Financial Member FINRA/SIPC
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22 Adjusted EPS* and Adjusted Net Income* Adjusted EPS* and adjusted net income* are non-GAAP financial measures. Please see a description of adjusted EPS* and adjusted net income* under “Non-GAAP Financial Measures” on page 3 of this presentation for additional information. Below are the reconciliations of net (loss) income and earnings per diluted share to adjusted net income* and adjusted EPS* for the periods presented herein: Adjusted Pre-Tax Income* Adjusted pre-tax income* is a non-GAAP financial measure. Please see a description of adjusted pre-tax income* under “Non-GAAP Financial Measures” on page 3 of this presentation for additional information. Below is a reconciliation of (loss) income before (benefit from) provision for income taxes to adjusted pre-tax income* for the periods presented herein: Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 in millions, except per share data Amount Per Share Amount Per Share Amount Per Share Amount Per Share Amount Per Share Amount Per Share Amount Per Share Amount Per Share Amount Per Share Net (loss) income / earnings per diluted share ($30) ($0.37) $273 $3.40 $319 $4.24 $271 $3.59 $255 $3.39 $244 $3.23 $289 $3.83 $218 $2.85 $224 $2.91 Amortization of other intangibles 65 0.81 46 0.57 44 0.58 43 0.57 32 0.43 31 0.41 30 0.39 29 0.38 28 0.36 Acquisition costs(22) 538 $6.70 75 0.93 49 0.65 37 0.49 22 0.29 37 0.49 10 0.13 35 0.46 6 0.08 Regulatory charges(23) - - - - - - - - 18 0.24 - - - - - - 40 0.52 Departure of former Chief Executive Officer(24) - - - - - - (14) (0.19) - - - - - - - - - - Loss on extinguishment of debt - - - - - - 4 0.05 - - - - - - - - - - Tax benefit (155) (1.93) (31) (0.39) (24) (0.32) (20) (0.27) (15) (0.19) (18) (0.24) (10) (0.14) (14) (0.18) (9) (0.12) Adjusted net income / adjusted EPS $418 $5.20 $363 $4.51 $387 $5.15 $320 $4.25 $313 $4.16 $293 $3.88 $318 $4.21 $267 $3.51 $289 $3.74 Average diluted share count 80.4 80.4 75.1 75.3 75.4 75.5 75.5 76.2 77.1 Reconciliation Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC $ in millions Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 (Loss) income before (benefit from) provision for income taxes ($34) $369 $417 $341 $347 $330 $374 $294 $318 Amortization of other intangibles 65 46 44 43 32 31 30 29 28 Acquisition costs(22) 538 75 49 37 22 37 10 35 6 Regulatory charges(23) - - - - 18 - - - 40 Departure of former Chief Executive Officer(24) - - - (14) - - - - - Loss on extinguishment of debt - - - 4 - - - - - Adjusted pre-tax income $569 $490 $509 $411 $420 $398 $413 $357 $391
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23 Core G&A* to Total Expense Core G&A* is a non-GAAP financial measure. Please see a description of Core G&A* under “Non-GAAP Financial Measures” on page 3 of this presentation for additional information. Below is a reconciliation of total expense to Core G&A* for the periods presented herein: $ in millions Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Total expense $4,586 $3,466 $3,253 $3,171 $2,761 $2,602 $2,458 $2,350 $2,205 Advisory and commission 3,025 2,483 2,354 2,250 1,948 1,819 1,733 1,608 1,488 Depreciation and amortization 100 96 92 92 78 71 67 68 65 Interest expense on borrowings 106 106 86 82 68 64 60 54 48 Brokerage, clearing and exchange 43 43 44 35 30 33 31 26 25 Amortization of other intangibles 65 46 44 43 32 31 30 29 28 Employee deferred compensation 4 4 (1) (1) 3 1 2 3 (1) Loss on extinguishment of debt - - - 4 - - - - - Total G&A $1,243 $688 $634 $666 $602 $583 $535 $562 $552 Promotional (ongoing)(22) 202 164 152 173 176 148 132 138 140 Acquisition costs excluding interest(22) 538 72 43 37 22 37 10 35 6 Employee share-based compensation 19 20 18 26 20 20 23 16 16 Regulatory charges(23) 7 7 7 7 25 8 7 9 48 Core G&A $477 $426 $413 $422 $359 $371 $364 $364 $342 Reconciliation Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC
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24 (1) Organic Net New Assets include assets from Large Institutions. Below are Net New Assets from Large Institutions for the periods presented: (2) For August 2025 and third quarter of 2025 figures, includes Commonwealth assets as of June 30, 2025, assuming 90% retention. Based on unaudited preliminary financial information of Commonwealth. For October 2024 and fourth quarter of 2024 figures, includes Atria assets as of September 30, 2024, assuming 80% retention. (3) Represents the estimated total advisory and brokerage assets expected to transition to the Company’s primary broker-dealer subsidiary, LPL Financial LLC (“LPL Financial”), associated with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate. (4) Recruited assets include assets from Large Institutions. Below are recruited assets from Large Institutions for the periods presented: (5) Reflects retention of total advisory and brokerage assets, calculated by deducting quarterly annualized attrition from total advisory and brokerage assets, over the prior-quarter total advisory and brokerage assets. (6) Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively. Annualized growth is calculated as the current period organic net new advisory or brokerage assets divided by preceding period total advisory or brokerage assets, multiplied by four. (7) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage. (8) Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms. (9) Consists of total client deposits into centrally managed assets (see EN 7) accounts less total client withdrawals from centrally managed assets accounts. Annualized growth is calculated as the current period organic net new centrally managed assets divided by preceding period total centrally managed assets, multiplied by four. (10) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial, as well as assets under custody of a third-party custodian related to Atria’s introducing broker-dealer subsidiaries. (11) Represents the average month-end total advisory and brokerage assets for the period. (12) Represents total trailing twelve-month Gross Profit* for the period, divided by average month-end total advisory and brokerage assets for the period (see EN 10). (13) Represents total trailing twelve-month operating expenses for the period, excluding production-related expense (“OPEX”), divided by average month-end total advisory and brokerage assets for the period (see EN 10). Production-related expense includes advisory and commissions expense and brokerage, clearing and exchange expense.For purposes of this metric, operating expenses includes Core G&A*, regulatory, promotional, employee share-based compensation, depreciation & amortization and amortization of other intangibles. (14) EBIT ROA is calculated as Gross Profit ROA (see EN 11) less OPEX ROA (see EN 12). (15) Consists of revenues from the Company’s sponsorship programs with financial product manufacturers and omnibus processing and networking services, but not including fees from client cash programs. Other asset-based revenues are a component of asset-based revenues and are derived from the Company’s condensed consolidated statements of income. (16) Client cash accounts include cash that clients have deposited with LPL Financial that is included in client payables in the consolidated balance sheets. During the first quarter of 2024, the company updated its definition of the client cash account balances to exclude other client payables. $ in billions Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Recruited assets from Large Institutions 18.2 - 16.2 63.0 - - - - 12.3 $ in billions Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Net new organic advisory assets 4.2 - 6.8 18.4 - - - - 2.3 Net new organic brokerage assets 12.9 0.1 36.1 21.2 - - - 0.3 8.5 Total Organic Net New Assets from Large Institutions 17.1 0.1 43.0 39.6 - - - 0.3 10.8 Endnotes Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC
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25 (17) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company's Credit Agreement, which include LPL Financial, LPL Enterprise, LLC, The Private Trust Company, N.A., Commonwealth Equity Services, LLC and certain of Atria Wealth Solutions, Inc.'s introducing broker-dealer subsidiaries, in excess of the capital requirements of the Company's Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries. Cash and equivalents held at regulated subsidiaries as of September 30, 2023 included that of Financial Resources Group Investment Services, LLC; however, the broker-dealer registration for this entity was terminated during the fourth quarter of 2023. As a result, it is reflected in cash and equivalents held at non-regulated subsidiaries at December 31, 2023. (18) The Company calculates its leverage ratio as total debt less total corporate cash, divided by Credit Agreement EBITDA for the trailing twelve months. (19) Assets on the Company’s corporate RIA platform are serviced by investment advisor representatives of LPL Financial or Allen & Company. Assets on the Company’s independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial. (20) Consists of total client deposits into advisory accounts on LPL Financial’s independent RIA advisory platform or corporate RIA platform less total client withdrawals from advisory accounts on its independent RIA advisory platform or its corporate RIA platform. Annualized growth is calculated as the current period net new independent RIA Advisory Assets or corporate RIA assets divided by preceding period total independent RIA Advisory Assets or corporate RIA assets, multiplied by four. (21) The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards. (22) Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented: (23) Regulatory charges for the three months ended September 30, 2024 and year ended December 31, 2024 include charges related to a settlement with the SEC to resolve the civil investigation of certain elements of the Company’s Anti-Money Laundering ("AML") compliance program. The Company has recorded an $18.0 million charge for the quarter ended September 30, 2024 and reached a settlement with the staff of the SEC and paid the civil monetary penalty in January 2025. Regulatory charges for the three months ended September 30, 2023 and year ended December 31, 2023 include a $40.0 million charge to reflect the amount of the penalty related to the SEC's civil investigation of the Company’s compliance with records preservation requirements for business-related electronic communications that was not covered by the Company’s captive insurance subsidiary. The Company reached a settlement with the staff of the SEC and paid the civil monetary penalty of $50.0million in August 2024. (24) The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer. (25) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the condensed consolidated statements of income. (26) Below is a reconciliation of interest expense on borrowings per Management's Statements of Operations to interest expense on borrowings on the Company's condensed consolidated statements of income for the periods presented: $ in millions Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Compensation and benefits $258 $16 $17 $16 $8 $7 $4 $3 $1 Occupancy and equipment 198 1 - - (1) 1 - 1 - Professional services 10 11 6 7 7 4 3 4 2 Promotional 26 35 9 2 2 1 2 1 2 Change in fair value of contingent consideration(25) 3 - 7 11 6 25 - 27 - Interest(26) - 3 5 - - - - - - Other 45 8 5 - - - - - - Acquisition costs $538 $75 $49 $37 $22 $37 $9 $35 $6 Endnotes Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC $ in millions Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Interest expense on borrowings on Management’s Statement of Operations $106 $102 $81 $82 $68 $64 $60 $54 $48 Cost of debt issuance related to Commonwealth acquisition(22) - 3 5 - - - - - - Interest expense on borrowings on Condensed Consolidated Statements of Income $106 $106 $86 $82 $68 $64 $60 $54 $48