Slides
Page 1
LPL Financial Holdings Inc. Q4 2025 Investor Presentation January 29, 2026 Member FINRA/SIPC
Page 2
2 Statements in this presentation regarding LPL Financial Holdings Inc.’s (together with its subsidiaries, the “Company”) futur e financial and operating results, growth, plans, priorities, business strategies, capabilities, and outlook, including forecasts and statements relating to the Company’s future advisory and broke rage asset levels and mix, organic asset growth, market share, deposit betas, Core G&A* expenses (including outlook for 2026) and expenses associated with the Company’s acquisition of Commonwealth Financial Network (“Commonwealth”), service offerings, operating margin, Gross Profit* benefits, EBITDA* benefits, target leverage ratio, client cash balances and yields, service and fee rev enue, investments, acquisitions (including Liquidity & Succession transactions), capital returns, planned share repurchases, if any, run-rate expectations in connection with the Company’s acquisition of Commonwealth, 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 and objectives as of January 29, 2026 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 i nclude: difficulties and delays in onboarding the assets of acquired, recruited, or transitioned 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 b rokerage 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 financia l 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 se lf-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 legisla tion, 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 facility and LPL Financial's committed revolving credit facility, and the in dentures 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 wi ll affect the timing and size of future share repurchases by the Company, if any; whether advisors affiliated with 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, serv ice 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 January 29, 2026 and you sho uld not rely on statements contained herein as representing the Company's view as of any date subsequent to January 29, 2026. Notice to Investors: Safe Harbor Statement THIS PRESENTATION INCLUDES DATA AS OF DECEMBER 31, 2025, UNLESS OTHERWISE INDICATED LPL Financial Member FINRA/SIPC
Page 3
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 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 number 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 income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and 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; a nd 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; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; losses on extinguishment of debt; promotional (ongoing); transition assistanc e (“TA”) loan amortization; 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 over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to suppo rt advisor growth and retention, including conferences and transition 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 exp ense to Core G&A, please see the appendix of this presentation. The Company 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 reconciliation 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 income plus interest expense on borrowings, provision for income taxes, depreciation and amortizatio n, 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 operations. EBITDA and adjusted EBITDA are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a recon ciliation of net income to EBITDA and adjusted EBITDA, please see the appendix of this presentation. Adjusted pre-tax income is defined as income before provision for income taxes plus amortization of other intangibles and acquis ition costs. 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 conside red as an alternative for income before provision for income taxes or any other performance measure derived in accordance with GAAP. For a reconciliation of income before 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, provision for income taxes, depreciation and amortizati on, 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 from 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 Agreement. Cred it Agreement EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconci liation of net income to Credit Agreement EBITDA, please see the appendix of this presentation. Notice to Investors: Non-GAAP Financial Measures THIS PRESENTATION INCLUDES DATA AS OF DECEMBER 31, 2025, UNLESS OTHERWISE INDICATED LPL Financial Member FINRA/SIPC
Page 4
4 Industry leader with scale and structural tailwinds LPL investment highlights 2 4 3 6 5 1 Horizontal expansion strategy with a goal of meeting all ~300,000† advisors where they are Vertical integration strategy, with significant capacity to invest in capabilities that enhance the advisor value proposition and drive growth Resilient business model with natural hedges to market volatility Disciplined expense management, enabling operating leverage Capital-light business model with flexible allocation framework † 2025 Cerulli Broker-Dealer Marketplace LPL Financial Member FINRA/SIPC
Page 5
5 • We serve advisors and institutions so they can… - Help their clients achieve life’s goals and dreams - Run thriving businesses • We deliver… - Value-added capabilities that help advisors and institutions provide differentiated experiences for their clients - Personalized solutions from flexible and compelling affiliation models to services that help advisors and institutions run extraordinary businesses - Liquidity & Succession capabilities for advisors seeking to transition their business • We are a full-service wealth management firm that believes advisors and institutions should have the freedom to choose the business model, services and technology they need to run successful businesses • As a leader in the financial advisor-mediated marketplace, we have increasing scale and flexibility to serve the growing market for comprehensive financial advice LPL overview Vision Be the best firm in wealth management Mission Ensure the success of our clients every step of the way Who we are Our mission and visionWhat we do Top RIA Custodian Cerulli Associates #1 Independent Broker-Dealer Financial Planning Magazine Fortune 500 Company Industry leader with scale and structural tailwinds1 LPL Financial Member FINRA/SIPC Who we serve • Advisor channel: ~$1.8T • Institutional channel: ~$0.6T ~32,200 Advisors ~$2.4T Assets • Independent Advisors: ~18,500 • Independent RIA: ~6,200 (~640 firms) • Institution Services: ~7,400 (~1,200) institutions)
Page 6
6 7.4% 13.2% 7.9% 9.0% 10.4% 8.4% 2020 2021 2022 2023 2024 2025 $903 $1,206 $1,111 $1,354 $1,741 $2,371 51% 53% 52% 54% 55% 59% 2020 2021 2022 2023 2024 2025 LPL by the numbers Industry-leading scale Financial Highlights Gross Profit* ContributionTotal Organic Net New Assets “NNA” Annualized Growth(1) Total Advisory and Brokerage Assets ($B) (end of period) LPL Financial Member FINRA/SIPC Industry leader with scale and structural tailwinds1 Advisory % of Total Advisory and Brokerage Assets Operating Leverage and Financial Strength 38%Adj. pre-tax margin*(2)† $20.09Adj. EPS*† 1.95xLeverage ratio(3)‡ Note: Totals may not foot due to rounding † Represents LTM results as of December 31, 2025 ‡ As of December 31, 2025 31% 24% 28% 12% 2% 3% 1% $5.5B† Client cash Other asset-based Advisory fees and commissions Service and Fee Transaction Interest income, net Other revenue
Page 7
7 $3T $3T ~$5T$1T $5T ~$6T$5T $7T ~$9T $4T $12T ~$18T $13T ~$27T ~$38T $0T $5T $10T $15T $20T $25T $30T $35T $40T 2018 2021 2024 0% 20% 40% 60% 80% 100% 2020 2021 2022 2023 2024 2029E ~$26T ~$31T ~$27T ~$31T ~$36T ~$43T 2020 2021 2022 2023 2024 2029E Market leader, with expanded addressable markets‡§ We are a market leader with scale advantages and structural tailwinds Growing demand for advice Projected Growth in U.S. Retail Advisor-Mediated Market‡§ Independent channel gaining share Total U.S. Retail Advisor-Mediated Assets†‡ Traditional Independent Institutions RIA Employee Channel Note: Totals may not foot due to rounding. † 2025 Cerulli U.S. Retail and Institutional Asset Management Report and Cerulli Lodestar projections. Excludes self-directed market ‡ Estimated market sizing based on 2025 Cerulli reports. See endnote (5) for additional detail § Figures presented reflect total assets LPL Financial Member FINRA/SIPC Industry leader with scale and structural tailwinds1 ~$36T ~39% ~41% Independent Channels(4): 7% CAGR ~27% ~26% ~34% ~33% Wirehouses: 4% CAGR Other Employee Channels(4): 5% CAGR ~$27T ~$43T ~45% ~25% ~30% ~1.5x ~2x
Page 8
8 Meet advisors and institutions where they are in the evolution of their business by providing flexible solutions to help them design the perfect offering for their clients Deliver advisors and institutions end-to-end solutions that are higher quality, better integrated, easier to use, and more cost- efficient † 2025 Cerulli Broker-Dealer Marketplace Flexible affiliation models enable LPL to meet all ~300,000† advisors in the advisor-mediated marketplace Provide value-added capabilities that empower advisors and institutions to: • Optimize their businesses • Spend more time with clients • Differentiate and win LPL Financial Member FINRA/SIPC Industry leader with scale and structural tailwinds1 We are expanding our market share by providing industry-leading flexibility and value-added capabilities Flexibility Capabilities
Page 9
9 Our horizontal expansion strategy enables us to meet all ~300,000† advisors where they are Horizontal expansion2 Linsco Strategic Wealth Enhanced RIA 2019~300K advisors in the marketplace†: Smaller banks & credit unions Traditional independent markets Enables RIAs to leverage fully-integrated capabilities, technology, services, and clearing platform • Provides comprehensive support for breakaway advisors to move to independence • Recruited ~$22B in assets since launch(6) • Pairs the benefits of independence with the turnkey services of an employee model • Recruited ~$17B in assets since launch(6) Hybrid RIAs ~40K advisors | $4T Employees ~35K advisors | $5T Wirehouse ~45K advisors | $13T Independent ~50K advisors | $5T Institutions ~70K advisors | $6T Independent RIAs ~50K advisors | $5T Core markets Expanded affiliation models 2022 Large financial institutions 2020 2021 2023 Broader institutions † 2025 Cerulli Broker-Dealer Marketplace ‡ Prudential Financial, Inc. (“Prudential”) 2024 2025 LPL Financial Member FINRA/SIPC Private Wealth Elevated solutions for employee advisors who serve high-net-worth clients November 2024 – Onboarded Prudential‡ advisors to our Institution Services platform 2026+
Page 10
10 ~$700 ~$940 ~$830 ~$1,020 ~$1,300 ~$1,820 8% 10% 5% 9% 9% 5% 2020 2021 2022 2023 2024 2025 Horizontal expansion2 Organic NNA has driven the majority of advisor asset growth • Initially, we served advisors in the independent market, where advisors own and operate their businesses - We expand our market leadership through continued enhancements to capabilities and competitive pricing • By building on what we already do well, we’ve unlocked the ability to support a broader set of advisors: Strategic Wealth, Independent Employee and Enhanced RIA - To power these expanded models, we embedded a new layer of services that extends our vertical integration, while also enhancing the overall client experience • This combination has expanded our opportunity to serve all segments of the advisor-mediated market Our Advisor Channel serves all segments of the advisor-mediated market Growing advisor opportunity Advisor Assets (end of period, $B) Organic Annualized Growth Rate Value proposition • Traditional Independent Model • Strategic Wealth • Independent Employee • Enhanced RIA Flexible Models • Compelling ongoing economics • Transition assistance • Lower technology costs and fees Differentiated Economics • Advisors have complete ownership of their practice Complete Book Ownership • Portfolio of services to help advisors run thriving businesses • Solve the most compelling problems facing advisors Business Services • Technology and operating platform • Integrated products and solutions • Compliance and risk management Value-added Capabilities LPL Financial Member FINRA/SIPC
Page 11
11 ~$200 ~$270 ~$280 ~$330 ~$440 ~$560 5% 24% 17% 8% 14% 17% 2020 2021 2022 2023 2024 2025Q3’23 ~$7B of assets ~90 advisors Q3’23 ~$4B of assets ~40 advisors Q3’23 ~$4B of assets ~30 advisors Q4’24 ~$67B of assets ~2,800 advisors Q1’25 ~$16B of assets ~90 advisors • Due to size and asset mix, Gross Profit* ROA for Large Institutions is typically ~15 bps+ • The lower ROA is factored into our TA underwriting process • Given our scale, there is also a lower cost to serve institutions • Overall, new institutional partnerships are in-line with our broader margins • Initially, we focused on depository financial institutions as our primary opportunity for outsourced wealth management • As we onboarded several financial institutions in recent years, we’ve built a number of new capabilities and continue to innovate based on learnings from those onboardings • In doing so, we’ve exposed new opportunities to serve broader institutions, expanding our addressable market from $1T to $6T • Prudential Advisors is a recent example of our opportunity with broader institutions, expanding our presence into the insurance broker-dealer market • To capitalize on this opportunity, there are additional capabilities we are building • Our value proposition resonates for institutions outsourcing for the first time or looking to upgrade their existing provider Our Institutional Channel provides a compelling solution for institutions to outsource their wealth business Growing institutional opportunity Organic NNA has driven the majority of institutional asset growth † 2021 Kehrer Bielan Research & Consulting Report Institutional Assets (end of period, $B) Organic Annualized Growth Rate Recent institutional joins Institutional economics Attractive Margins • Operational efficiency and technology: outsourced back- and middle-office support - Can lead to ~10 point improvement in operating margin† • Regulatory and risk reduction: transferred regulatory and compliance risk Reduce Cost and Risk • Enhanced client experience • Attract new advisors • Improved capacity to invest in the business Accelerate Growth • Minimize business disruption through integration and operational support • Dedicated onboarding team with experience transitioning several large institutions to our platform Seamless Conversion Process Value proposition Q3’25 ~$18B of assets ~125 advisors LPL Financial Member FINRA/SIPC Horizontal expansion2
Page 12
12 Move to independence Support advisors with the transition to independence by providing them leading capabilities and services Provide the flexibility to enter independence through a differentiated affiliation model Growth and practice optimization Advisor Institute Provide training and curriculum to help new advisors enter the industry Affiliation models Meet advisors where they are in the evolution of their practice • Strategic Wealth • Independent Employee • Enhanced RIA LPL Services Offer portfolio of services to better support advisors and drive growth in their practices Liquidity & Succession • Enable advisors to transition their business without disruption • Offer a market-competitive liquidity event • Facilitate a successful transition for all stakeholders: current and succeeding advisors, their clients and their office staff Entry Sunsetting and transition We are extending our vertical integration by solving for the needs of advisors at every state of their practice Life cycle of an advisor Value-added partner across entire life cycle Vertical Integration3 LPL Financial Member FINRA/SIPC Original focus Opportunity to re-generate life cycle
Page 13
13 AccountView for their end-clients ClientWorks for advisors Streamline integrated workflows • Make it easy for advisors to execute seamlessly across our ecosystem • Provide access to practice management insights to drive advisor growth Guide advisors to best-fit solutions • Leverage unique expertise to match advisors to the right capabilities • Guide advisors and institutions to solutions optimized for cost Lead with choice and flexibility • Promote optionality by integrating a broad array of third-party tools • Design and deliver proprietary capabilities as needed Our operating platform delivers industry-leading flexibility and integrated workflows Establishing an integrated ecosystem of core capabilities, journeys, and deep connectivity with a curated set of third-party providers so that our advisors can achieve scale and optimize their business management processes Delivering a digital end-client experience with the flexibility for advisors and institutions to personalize on behalf of their clients, complementing their personal relationships • New account opening • Money movement & account transfers • Built-in CRM and third-party integration Digital client onboarding & servicing • LPL Proposal Tool • Client Goals (proprietary planning tool) • Integration with third-parties Planning & proposal generation • Trading • Model creation • ClientWorks Rebalancer Investment & model management • Track asset flows • AUM insights • Advisor peer benchmarking Practice insights • Custom benchmarking • Client-facing reports • Personalized branding Performance reporting • Manage state registrations • Proactive advisory surveillance • Correspondence review Compliance • Practice logo • Office contacts • Link to social media • Value over time • Asset allocation • Position performance • Self-enrollment • ACH and check deposits • Beneficiary management • Statements • Trade confirmations • Tax documents • Secure messaging • Document sharing • WealthVision integration Customization and branding Investment performance tracking Self-service Paperless documents Advisor collaboration LPL Financial Member FINRA/SIPC Vertical Integration3
Page 14
14 • ~1.5x higher NPS scores among users of our Services Group vs. those that don’t • Increasing client asset retention • More likely to recommend LPL • ~2x faster growth among users of our Services Group vs. those that don’t • Supporting advisors and institutions to acquire more new end-clients • Giving advisors and institutions the tools to deepen relationships with existing clients • Enabling ~$51B in Recruited AUM(6) since launch • Increasing our addressable markets by supporting expanded affiliation models • Attracting new advisor and institutional profiles Our Services Group is an innovation engine and driver of organic growth Deepening our vertical integration Be a Great Advisor Comprehensive advice, prospect engagement Run a Thriving Wealth Practice Sales & Marketing, Client Service, Acquisition & Transition Operate a Successful Business Finance & Accounting, Compliance & Risk, Technology & Data Focus of Services Portfolio Traditional Focus of LPL (B/Ds, Custodians, TAMPs) Investment / Advisory Trading and Performance Reporting Technology, Service, Risk Operating and Growing a Practice Client Engagement Asset Management Clearing / Custody Helping advisors and institutions deliver on their value proposition New Store Sales RetentionSame Store Sales Driving Organic Growth LPL Financial Member FINRA/SIPC Vertical Integration3
Page 15
15 • Brokerage: Asset growth is driven by institutions, where asset mix is primarily brokerage • Advisory: Assets are shifting from brokerage to advisory, as end-clients seek greater levels of support from advisors - Prior to institutions, we are shifting towards advisory at ~2%+ per year - ~75% of new client flows are in advisory • Expanded Models: Strategic Wealth & Independent Employee models increase support for advisors and expand our addressable market • Centrally Managed: Platforms can create additional value within advisory - Outsourcing portfolio design and management can free up advisors’ time to serve clients and grow their business • Services Group: Support advisors and institutions through an expanded set of offerings and a subscription model We provide a range of services to advisors and institutions, strengthening their business while enhancing our returns Key pointsWe have seen a favorable mix shift in our platforms Gross Profit* ROA (down 14 ppts. since 2017) Advisory(8) ~25-30 bps (higher ROA when using Corporate platform) Brokerage(7) ~15-20 bps Centrally Managed(9) ~35-40 bps AUM mix 41% AUM mix 59% (up 14 ppts. since 2017) 15% of advisory assets (up 3 ppts. since 2017) Services Group ~40-45 bps Strategic Wealth & Independent Employee ~30-35 bps Services provided to advisors and institutions LPL Financial Member FINRA/SIPC Vertical Integration3
Page 16
16 ~$180 ~$220 ~$310 ~$265 ~$375~$80 ~$130 ~$50 ~$235 ~$155 ~$260 ~$350 ~$360 ~$500 ~$530 2021 2022 2023 2024 2025 ~$999 ~$1,192 ~$1,369 ~$1,475 ~$1,536 8% 13% 15% 8% 4% 2021 2022 2023 2024 2025 Core Technology Portfolio Spend ($M) Capabilities for New Institutions and M&A ($M) We are advancing our capabilities to enhance our value proposition and drive growth Investment areas of focus …with a focus on Technology We are making investments to drive organic growth… Invest in people, technology and data to strengthen our foundation and support our growth Strengthen Foundational Infrastructure Invest in automation, digitization and workflow optimization to drive operational efficiencies Reduce Cost to Serve Invest in key moments of the advisor and institution experience to help them provide great advice and run thriving businesses Enhance Advisor and Institution Experience Invest in incubating, accelerating and launching new services that address advisors’ and institutions’ most pressing needs Expand Services Portfolio Annual Core G&A* ($M) Annual Core G&A* Growth ‡ Invest in key growth initiatives to drive market expansion and market share Accelerate Growth Initiatives † In 2026, we plan to continue investing to drive growth, while creating greater efficiencies as we scale our business. As such, we expect Core G&A* growth of ~4.5-7% †† † Prior to Waddell & Reed ‡ 2022 Core G&A* growth is based on the Company’s total 2021 Core G&A* § Prior to Prudential and Atria Wealth Solutions, Inc. (“Atria”) † Prior to Prudential, Atria, and Commonwealth LPL Financial Member FINRA/SIPC Vertical Integration3 § †
Page 17
17 ($9) ($13) ($8) ($10) ($16) ($25) $7 $29 $44 $25 $25 $30 1.7% 6.7% 7.7% 4.8% 4.1% 3.9% 2020 2021 2022 2023 2024 2025 $9 $13 $8 $10 $16 $25 $50 $89 $52 $75 $115 $116 13.6% 19.4% 8.1% 12.9% 15.7% 12.1% 2020 2021 2022 2023 2024 2025 $56 $119 $96 $100 $141 $147 7.4% 13.2% 7.9% 9.0% 10.4% 8.4% 2020 2021 2022 2023 2024 2025 Total Organic NNA ($B) Organic Annualized Growth Rate We continued to drive solid organic growth with a net new asset growth rate of ~8% over the past year † Prior to Q4 2021, net new assets and net new assets growth rates exclude the assets of Waddell & Reed Total Organic Net New Assets(10)(11) Organic Net New Advisory Assets(12) Organic Net New Advisory Assets ($B) Net Brokerage to Advisory Conversions ($B) Organic Annualized Growth Rate Organic Net New Brokerage Assets(12) Organic Net New Brokerage Assets ($B) Net Brokerage to Advisory Conversions ($B) Organic Annualized Growth Rate LPL Financial Member FINRA/SIPC Vertical Integration3
Page 18
18 We benefit from rising market levels and interest rates, and our business model has natural hedges to market volatility ~$50M (14) Per 25 bps change in short-term rates ~$20M (13) Per 1% change in market levels As equity markets declined in 1H 2022, cash balances increased by ~$13B, which translates to a ~$550M benefit annually(15) Macro benefits Natural offsets to market declines Transaction revenue increased ~$7M sequentially in Q1 2022 Annual Gross Profit* Impact Market Levels (S&P 500) Rising market levels drive growth in assets and related revenues including advisory fees, trailing commissions and sponsor revenues Interest Rates Rising interest rates benefit our client cash yields Cash Sweep Balance Increased risk and volatility in the market drives higher cash sweep balances Transaction Volume Increased risk and volatility in the market drives additional portfolio rebalancing activity and higher transaction volumes Resilient business model with natural hedges to market volatility4 LPL Financial Member FINRA/SIPC
Page 19
19 $37.3 $30.0 $46.8 $34.5 $38.3 $41.0 $8.2 $9.3 $11.5 $9.3 $10.7 $15.3 $2.4 $17.6 $5.4 $4.4 $6.1 $4.7 $47.9 $56.9 $63.8 $48.2 $55.1 $61.0 5.3% 4.7% 5.7% 3.6% 3.2% 2.6% 2020 2021 2022 2023 2024 2025 Client cash as a % of assets has averaged ~4%‡ We generate economics on client cash through a third-party bank network • 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% Our client cash balances are largely operational and, as a percent of client assets, have been stable across rate cycles Note: Totals may not foot due to rounding † In Q4’25, $1.6B of sweep money market funds were converted to purchased money market funds ‡ Since Q1’20 Client Cash Balances(16) (end of period, $B) • 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 ~4% 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 Q4 2025, cash was 2.6% of client assets – Cash balances increased in the quarter, driven by organic growth and typical seasonality Fed Funds target (EOP, lower limit in bps): 0 0 425 525 425 350 Resilient business model with natural hedges to market volatility4 LPL Financial Member FINRA/SIPC ◼ CCA and Money Market† Balances ◼ DCA Balances ◼ ICA Balances Client Cash as a percent of Total Assets
Page 20
20 Fixed rate ICA balances are ~55% of the ICA portfolio • Management target range for the ICA portfolio is 50-75% fixed rate contracts • In Q4’25, we added $2.3B of fixed rate contracts, with maturities ranging from three to five years and an average yield of ~345 bps $12.4 $10.6 $20.7 $21.5 $20.8 $22.6 $22.7 $17.6 $26.2 $13.0 $17.5 $18.4 $2.1 $1.7 $13.9 $37.3 $43.8 $46.8 $34.5 $38.3 $41.0 ~35% ~25% ~45% ~60% ~55% ~55% 2020 2021 2022 2023 2024 2025 Maturing Yield§ (bps) Fixed rate balances make up ~55% of the ICA portfolio†, reducing our sensitivity to movement in short-term interest rates Note: Yields shown on this page are prior to client deposit rates (~54 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 ~60% of the ICA portfolio. ‡ Given improved bank deposit demand and the launch of CCA, we no longer have any money market overflow balances § Weighted average yield across the fixed rate ICA ladder is ~385 bps ICA Balances, including Overflow (end of period, $B) ◼ Money Market Overflow Balances‡ ◼ Overflow ICA Balances ◼ Variable ICA Balances ◼ Fixed Rate ICA Balances Fixed Rate ICA Balance % Variable balances are primarily indexed to Fed Funds • Our variable ICA balances increased in Q4’25, driven by organic growth and typical seasonality • Most variable balances are indexed to Fed Funds plus a spread (~10 to ~15 bps) • Currently, new variable contracts are averaging Fed Funds plus 10 to 20 bps Resilient business model with natural hedges to market volatility4 New contracts added in Q4 Maturing ICA Contracts ($B) as of Q4 2025 LPL Financial Member FINRA/SIPC ~330 ~425 ~410 ~365 ~380 ~380 ~385 $1.4B matures in Q1 $1.5B matures in Q3 $0.5B matures in Q4 $3.4 $3.1 $6.6 $2.5 $3.4 $0.7 $0.7 $0.2 $1.2 $1.0 $6.8 $3.7 $4.4 2026 2027 2028 2029 2030 2031 2032
Page 21
21 13% 15% 8% 4% ~4.5 - 7% 2022 2023 2024 2025 2026 Outlook We remain focused on investing to drive organic growth while delivering long-term operating leverage in our core business Disciplined expense management driving operational leverage5 2026 Outlook Prior to Commonwealth $1,775-1,820M Commonwealth $380-390M 2026 Outlook $2,155-2,210M † † †‡ † 2024 Core G&A* growth prior to Prudential & Atria. 2025 Core G&A* growth prior to Prudential, Atria & Commonwealth. 2026 Core G&A* growth outlook prior to Commonwealth. ‡ Growth is based on the Company’s total 2025 Core G&A prior to Commonwealth Long-term cost strategy: Deliver operating leverage in core business Prioritize investments that drive additional growth Drive productivity and efficiency Adapt cost trajectory as environment evolves Annual Core G&A* Growth 2026 Core G&A* Context • 2025 Core G&A* was $1,536M prior to Prudential, Atria and Commonwealth, translating to 4% growth • As we look ahead to 2026, we continue to invest in the business to drive greater efficiencies - Our 2026 Core G&A* outlook range prior to Commonwealth is $1,775-1,820M, or 4.5-7% growth - In addition, we expect the full-year impact of Commonwealth to add $380-390M of Core G&A* in 2026 - Including expenses related to Commonwealth, our outlook range is $2,155-2,210M LPL Financial Member FINRA/SIPC
Page 22
22 Dynamic capital allocation frameworkOur capital management principles • Disciplined capital management to drive long-term shareholder value • Maintain a strong and flexible balance sheet – Flexible debt structure to support capital allocation • Prioritize investments to support and drive organic growth – Recruiting to drive net new assets – Capital to support advisor and institutional growth and advisor M&A – Investments in capabilities to attract new assets, advisors and institutions • Capitalize on opportunistic M&A – Remain prepared for attractive opportunities – Facilitate advisor monetization and transitions through Liquidity & Succession solutions • Return excess capital to shareholders – Share repurchases – Dividends Our capital management strategy is focused on driving growth and maximizing shareholder value ROI Use of cash Share repurchases / Dividends M&A Organic growth LPL Financial Member FINRA/SIPC Capital-light business model with flexible allocation framework6
Page 23
23 Leverage Ratio(3)Balance Sheet Principles Credit Ratings† 2x – 2.75x 1.5x – 2.5x Prior Management Target Range Updated Management Target Range • Maintain a strong balance sheet that can absorb market volatility while having the capacity to invest for growth • A long-term target leverage ratio(3) range of 1.5x to 2.5x positions our balance sheet well over a range of economic cycles and strikes the right balance between preserving balance sheet strength and investing for growth – In order to do so, we plan to periodically incur debt when necessary, utilizing our parent revolver for near-term needs, replacing with long-term debt as conditions warrant – We remain committed to maintaining leverage at ~2x through the end of 2026 • We are willing to operate temporarily above or below our target range if conditions warrant • We maintain a management target of $200 million in Corporate Cash(17)(18) Maintaining a strong balance sheet is critical to our strategy and a key consideration for advisors and institutions † Represents Moody’s senior unsecured credit ratings, S&P Issuer Credit Rating and Fitch Issuer Default Rating. A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at anytime. • Maintaining a strong balance sheet is critical to our strategy and a key consideration for advisors • We are committed to maintaining our investment grade rating and continuing to improve our positioning LPL Financial Member FINRA/SIPC Capital-light business model with flexible allocation framework6 BBB- Stable Baa3 Stable BBB Stable 2.16x 2.26x 1.39x 1.63x 1.89x 1.95x 2020 2021 2022 2023 2024 2025
Page 24
24 $79 $80 $80 $92 $90 $94 $150 $90 $325 $1,100 $170 $100 $229 $170 $405 $1,192 $260 $194 2020 2021 2022 2023 2024 2025 Share Repurchases and Dividends ($M) We have continued to return capital to shareholders Average Diluted Share Count (M): Capital deployment focused on organic growth and M&A ◼ Share Repurchases ◼ Dividends $2B share repurchase authorization† † Increased share repurchase authorization by $2.0B as of 09/21/2022, which we started to utilize in 2023 LPL Financial Member FINRA/SIPC Paused share repurchases following the announcement of the acquisition of Commonwealth Capital deployment focused on organic growth and M&A Capital-light business model with flexible allocation framework6 80.7 81.7 81.3 77.9 75.4 79.1
Page 25
25 Traditional Independent RIA Employee Channel $5T $9T$18T Addressable markets for advisor channel† Highly fragmented markets create opportunity for additional consolidation† Growth potential from consolidation We see potential for consolidation given fragmented markets Note: Totals may not foot due to rounding. † Estimated market sizing based on 2025 Cerulli reports. See endnote (5) for additional detail ‡ Traditional Independent and Employee Channel sizing: Small (<$10B); Medium ($10B - <$50B); Large (>$50B) § RIA sizing: Small (<$250M); Medium ($250M - <$1B); Large (>$1B) • Our scale, capabilities and economics give us competitive advantages in M&A in independent markets and employee channels • The independent markets are fragmented with consolidation opportunities • Rising cost and complexity is making it harder for smaller players to compete • We believe consolidation can drive value by adding scale, increasing our capacity to invest in capabilities, and creating shareholder value Traditional Independent RIA Employee Channel Advisor-Oriented LPL Market Share: ~4% $32T ~35 firms~30 firms ~15 firms ~14,100 firms ~3,300 firms ~1,500 firms LPLA ~15 firms ~15 firms LPLA $5T ~80 firms $9T ~18,900 firms $18T ~575 firms LPLA LPLA | ~23% Large | ~64% Medium | ~10% Small | ~3% LPLA | ~3% Large | ~74% Medium | ~15% Small | ~8% LPLA | <1% Large | ~96% Medium | ~1% Small | ~3% Firm Size | Market Share by Assets LPL Financial Member FINRA/SIPC ‡ § ‡ Capital-light business model with flexible allocation framework6 ~545 firms
Page 26
26 ~$70B ~1,900 advisors ~3B ~30 advisors ~$4B ~50 advisors ~$74B ~900 advisors ~$44B ~830 advisors ~$95B ~1,825 advisors ~$337B ~3,160 advisors 2017 2018 2019 2020 2021 2022 2023 2024 2025 † Assets and advisors as of 12/31/2025, assuming 100% retention Waddell & Reed April 2021 ~$74B | ~900 NPH August 2017 ~$70B | ~1,900 202520242023202220212020201920182017 LPL Financial Member FINRA/SIPC M&A is a key part of our strategy, and complements our organic growth ▪ Our scale, capabilities and economics give us a competitive advantage in M&A in independent markets and employee channels ▪ This includes industry-leading onboarding capabilities and experienced teams dedicated to supporting frictionless transitions to our platform ▪ Rising cost and complexity is making it harder for smaller players to effectively compete ▪ We believe consolidation can drive value creation by adding scale and increasing our capacity to invest in capabilities Growth potential from consolidation FRG January 2023 ~$40B | ~800 Crown Capital April 2024 ~$5B | ~125 Boenning & Scattergood January 2023 ~$4B | ~30 Capital-light business model with flexible allocation framework6 Allen & Company August 2019 ~$3B | ~30 E.K. Riley August 2020 ~$2B | ~30 Lucia August 2020 ~$1.5B | ~20 Commonwealth Financial Network† August 2025 ~$330B | ~3,000 Atria Wealth Solutions October 2024 ~$90B | ~1,700 Size of bubble corresponds with AUM $ AUM | # of Advisors The Investment Center March 2025 ~$7B | ~160
Page 27
27 We’re delivering liquidity and succession capabilities for advisors seeking to transition Growing opportunity Direct acquisition lifecycle example Capital-light business model with flexible allocation framework6 LPL Financial Member FINRA/SIPC † 2025 Cerulli Report U.S. Broker/Dealer Marketplace § Based on closed transactions and our pipeline • ~1/3 of advisors are expected to retire or leave the industry over the next decade – representing $14T of AUM† • Historically, advisors’ options were limited: 1) sell to a larger aggregator, or 2) transact with a local advisor, but often at a below-market price • Liquidity & Succession (L&S) enables LPL to buy practices from advisors seeking a pathway to retirement, freedom from entrepreneurial burdens, and / or monetization ✓ Economics – Allows advisors to monetize their business through a market-competitive transaction ✓ Support – Empowers advisors through a fully dedicated support model, allowing advisors to rededicate their time and energy to client service ✓ Transition – Transitions ownership of the business to successor advisors over time • Purchase multiples consistent with our M&A framework ~6x-8x EBITDA* L&S by the numbers: ~$880M Total capital deployed 77 Total deals closed ~$10-15M Average deal size ~30-40 deals Capacity of deals per year§ § LPL support of practice extended for ~20 years Advisor onboarded to employee channel LPL supports advisor with industry- leading capabilities and a transition glidepath to succeeding advisor practice positioned for improve growth within LPL LPL trains and fosters the succeeding advisor – positioning them to run a great practice, leveraging the best of LPL. Succeeding advisor(s) assume(s) oversight of practice, with ~10-year path to full control of asset Practice in slower-growth mode; risk of sale away from LPL Succeeding advisor takes over practice LPL buys advisor’s practice LPL oversees the practice LPL supports the transition to a succeeding advisor Advisor looking to sunset over 2-5 years Liquidity & Succession
Page 28
28 Investinadvisorvalueproposition Increase scaleinassets,advisorsand institutions Grow earnings and EPS As we continue to invest and increase our scale, we enhance our ability to drive further growth Long-term Shareholder Value Invest in differentiated capabilities and a unique advisor and institution experience Remain disciplined on expenses and return capital to shareholders Attract advisors and institutions, and benefit from greater use of our services LPL Financial Member FINRA/SIPC
Page 29
29 $6.46 $7.01 $11.52 $15.72 $16.51 $20.09 2020 2021 2022 2023 2024 2025 $2,103 $2,455 $3,190 $4,027 $4,499 $5,598 2020 2021 2022 2023 2024 2025 7.4% 13.2% 7.9% 9.0% 10.4% 8.4% 2020 2021 2022 2023 2024 2025 $903 $1,206 $1,111 $1,354 $1,741 $2,371 2020 2021 2022 2023 2024 2025 Gross Profit* ($M) Total Advisory and Brokerage Assets(19) ($B) We are focused on executing our strategy and delivering results Adjusted EPS* Total Organic Net New Asset Growth Key Earnings Growth Drivers Greater Adoption of Services (Corporate Advisory, Centrally Managed Platform, Business Services, Planning & Advice Services, Advisor Capital Solutions) Enhanced Value Proposition (Capabilities, Technology, Service) Increased Organic NNA (Opportunities in Traditional Markets) Increased Scale and Capabilities through M&A Excess Capital Deployment (Technology, Advisor Capital, Returning Capital to Shareholders) Expanded Affiliation Models (Institutions, Strategic Wealth Services, Independent Employee, Enhanced RIA, Private Wealth) Drive Operating Leverage in Core Business while Investing for Additional Growth LPL Financial Member FINRA/SIPC (20)
Page 30
Appendix
Page 31
31 ~$285B ~$285B ~$305B ~$325B ~$330B At Signing As of Q1'25 As of Q2'25 As of Q3'25 As of Q4'25 Acquisition of Commonwealth Financial Network ▪ On March 28, 2025, we signed an agreement to acquire 100% of the equity of Commonwealth Financial Network as an equity purchase with an upfront price of ~$2. 7B ▪ We closed the acquisition on August 1, 2025, with advisors expected to onboard in Q4’26 and are tracking to asset retention of ~90% ▪ We will preserve the Commonwealth brand, unique culture, and advisor experience – Commonwealth CEO Wayne Bloom has joined the LPL management committee as a managing director. He continues to lead Commonwealth and is responsible for maintaining their award-winning advisor experience. – Commonwealth founder Joe Deitch will assume an advisory role to LPL’s Board of Directors Transaction Details and Timing † As of 12/31/2025, assuming 100% asset retention, unless otherwise noted ‡ Based on unaudited preliminary financial information of Commonwealth as of 12/31/2025, assuming 90% asset retention LPL Financial Member FINRA/SIPC Estimated Financial ImpactsKey Metrics† J.D. Power’s #1 in Independent Advisor Satisfaction for 12 consecutive years ▪ ~3,000 advisors, serving ~$330B in client assets ▪ ~75% advisory and ~25% brokerage ▪ Client cash balances of ~$4.6B ▪ Average advisor headcount retention of 98% from 2019-2024 ▪ Onboarding and integration costs of ~$485M ▪ Est. technology spend of ~$155M, which will be capitalized and amortized over time ▪ Acquired baseline EBITDA* of ~$90M‡ ▪ Following completion of onboarding and integration, revenue and expense synergies are expected to result in run-rate EBITDA* of ~$425M‡ ~$415M ~$415M ~$415M ~$425M ~$425M Expected At Signing As of Q1'25 As of Q2'25 As of Q3'25 As of Q4'25 Commonwealth client assets Run-rate EBITDA*
Page 32
32 Q1 2027Q4 2026Q3 2026Q2 2026Q1 2026Q4 2025Q3 2025Q2 2025Q1 2025 Advisor Transition Planning and Training † Acquired baseline EBITDA* of ~$90M. Following completion of onboarding and integration of Commonwealth, revenue and expense synergies are expected to result in run-rate EBITDA* of ~$425M. Based on unaudited preliminary financial information of Commonwealth as of 12/31/2025. Operating Model / Advisor Onboarding ~$425MEBITDA* and Adj. EPS* Benefit Ramp† Transaction Signing and Closing Onboarding and Integration Costs Key Steps to EBITDA* Ramp PREPARE - Add resources to receive Commonwealth Advisors prior to onboarding1 Transaction Signed Advisor OnboardingClosed 8/1/25 3 INTEGRATE - Expense synergies materialize† Advisor Recruiting ~$90MAcquired Baseline EBITDA*† Commonwealth Financial Network: We estimate an annual EBITDA* benefit of ~$425M when fully ramped LPL Financial Member FINRA/SIPC 2 ONBOARD - Realize Gross Profit* benefit after onboarding†
Page 33
33 $280 $363 $317 2023 2024 2025 Promotional Expense ($M)(21) Key drivers of promotional expense growth Large Institution non-recurring onboarding expenses increased by ~$40M to ~$110M as we onboarded Prudential Conferences increased by ~$10M due to underlying business growth Investments to support underlying business growth increased by ~$35M LPL Financial Member FINRA/SIPC Large Institution non-recurring onboarding expenses decreased by ~$80M to ~$30M as the majority of Prudential-related spend rolled off Conferences increased by ~$10M due to acquisitions of Atria and Commonwealth Marketing expenses increased ~$10M primarily driven by the launch of our national marketing campaign Investments to support underlying business growth increased by ~$15M
Page 34
34 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: 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 reconciliations of net income and earnings per diluted share to adjusted net income* and adjusted EPS* for the periods presented herein: 2025 2024 2023 2022 2021 2020 in millions, except per share data Amount Per Share Amount Per Share Amount Per Share Amount Per Share Amount Per Share Amount Per Share Net income / earnings per diluted share $863 $10.92 $1,059 $14.03 $1,066 $13.69 $846 $10.40 $460 $5.63 $473 $5.86 Acquisition costs(23) 740 9.37 106 1.40 48 0.62 36 0.44 76 0.93 - - Amortization of other intangibles 237 2.99 135 1.79 107 1.38 88 1.08 79 0.97 67 0.83 Regulatory charges(24) - - 18 0.24 40 0.52 - - - - - - Departure of former Chief Executive Officer(25) - - (14) (0.19) - - - - - - - - Loss on extinguishment of debt - - 4 0.05 - - - - - - - - Tax benefit (252) (3.18) (62) (0.82) (37) (0.48) (33) (0.40) (41) (0.51) (19) (0.23) Adjusted net income / adjusted EPS $1,588 $20.09 $1,245 $16.51 $1,224 $15.72 $937 $11.52 $574 $7.02 $521 $6.46 Average diluted share count 79.1 75.4 77.9 81.3 81.7 80.9 $ in millions 2025 2024 2023 2022 2021 2020 Total revenue(2) $16,989 $12,385 $10,053 $8,601 $7,721 $5,872 Advisory and commission expense 11,204 7,751 5,916 5,325 5,180 3,697 Brokerage, clearing and exchange expense 178 128 106 86 86 71 Employee deferred compensation(22) 9 5 4 - - - Gross Profit(2) $5,598 $4,501 $4,027 $3,190 $2,455 $2,103 Reconciliation Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC
Page 35
35 $ in millions 2025 2024 2023 2022 2021 2020 Net income $863 $1,059 $1,066 $846 $460 $473 Interest expense on borrowings 403 274 187 126 104 106 Provision for income taxes 286 334 379 266 141 153 Depreciation and amortization 393 309 247 200 151 110 Amortization of other intangibles 237 135 107 88 79 67 EBITDA $2,183 $2,111 $1,986 $1,525 $936 $909 Acquisition costs excluding interest(23)(26) 732 106 48 36 76 - Regulatory charges(24) - 18 40 - - - Departure of former Chief Executive Officer(25) - (14) - - - - Loss on extinguishment of debt - 4 - - - - Adjusted EBITDA $2,915 $2,224 $2,074 $1,561 $1,012 $909 2025 2024 2023 2022 2021 2020 EBITDA $2,183 $2,111 $1,986 $1,525 $936 $909 Credit Agreement adjustments Acquisition costs and other(23)(24) 777 224 110 51 92 18 Employee share-based compensation 76 89 66 50 42 32 M&A accretion(27) 463 235 30 11 54 - Advisor share-based compensation 3 3 3 3 2 2 Loss on extinguishment of debt - 4 - - 24 - Credit Agreement EBITDA $3,502 $2,665 $2,195 $1,639 $1,151 $961 Total debt 7,299 5,517 3,757 2,738 2,839 2,359 Total corporate cash 470 479 184 459 237 280 Credit Agreement Net Debt $6,829 $5,038 $3,574 $2,279 $2,602 $2,079 Leverage Ratio 1.95x 1.89x 1.63x 1.39x 2.26x 2.16x Net 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 income to EBITDA*, Adjusted EBITDA* and Credit Agreement EBITDA* for the periods presented herein: Reconciliation Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC
Page 36
36 $ in millions 2025 Income before provision for income taxes $1,150 Amortization of other intangibles 237 Acquisition costs(23)(26) 740 Adjusted pre-tax income $2,126 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 income before provision for income taxes to adjusted pre-tax income* for the periods presented herein: Reconciliation Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC
Page 37
37 $ in millions 2025 2024 2023 2022 2021 2020 Total expense $15,840 $10,992 $8,608 $7,489 $7,120 $5,246 Advisory and commission 11,204 7,751 5,916 5,325 5,180 3,697 Depreciation and amortization 393 309 247 200 151 110 Interest expense on borrowings 403 274 187 126 104 106 Brokerage, clearing and exchange 178 128 106 86 86 71 Amortization of other intangibles 237 135 107 88 79 67 Employee deferred compensation(22) 9 5 4 - - - Loss on extinguishment of debt - 4 - - 24 - Total G&A $3,415 $2,387 $2,041 $1,665 $1,494 $1,194 TA loan amortization(21) 409 266 206 172 143 116 Promotional (ongoing)(21)(23) 317 363 280 182 145 92 Regulatory charges(24) 29 47 71 33 29 29 Employee share-based compensation 76 89 66 50 42 32 Acquisition costs excluding interest(23)(26) 732 106 48 36 76 - Core G&A $1,852 $1,515 $1,369 $1,192 $1,058 $925 $ in millions 2025 2024 2021 Core G&A $1,536 $1,475 $1,059 Waddell & Reed-related Core G&A - - 59 Prudential and Atria-related Core G&A 163 40 - Commonwealth-related Core G&A 153 - - Total Core G&A prior to transactions $1,852 $1,515 $999 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* and of Core G&A, prior to the impacts of Waddell & Reed, Prudential and Atria: Reconciliation Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC
Page 38
38 (1) Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets. Net new assets include dividends and interest, less advisory fees. Prior to Q4 2021, excludes the assets of Waddell & Reed. (2) Calculated by dividing adjusted pre-tax income* for the period by gross profit* for the period. (3) The Company calculates its leverage ratio as total debt less total corporate cash, divided by Credit Agreement EBITDA* for the trailing twelve months. (4) Other employee channels include National & Regional B/D, Insurance B/D and Retail bank B/D channels. Independent channels include independent B/D, Hybrid RIA and Independent RIA channels. (5) Estimated market sizing based on 2024 Cerulli reports, unless otherwise noted. Below are reconciliations of each market: (6) 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. (7) Consists of brokerage assets serviced by advisors licensed with LPL Financial or one of Atria’s introducing broker-dealer subsidiaries. (8) Consists of total assets on LPL Financial's corporate advisory platform serviced by investment advisor representatives of LPL Financial and total assets on LPL Financial’s independent advisory platform serviced by investment advisor representatives of separate investment advisor firms (“Independent RIAs”), rather than of LPL Financial. (9) Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios, and Guided Wealth Portfolios platforms. (10) Total Organic Net New Assets includes net new assets from Large Institutions for the periods presented below: (11) In April 2020, the Company updated its definition of net new assets to include dividends plus interest, minus advisory fees. Unless otherwise noted, net new assets figures for periods prior to Q2 2020 appearing in this presentation have been recast using the updated definition. (12) 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. (13) Calculated as a one percent change in total assets multiplied by a market correlation factor multiplied by total gross profit* return on assets. (14) Assumes change based on Q3 2025 end of period ICA balances, presented on page 20. (15) Annual benefit measured in total revenue. Based on variable client cash balances indexed to Fed Funds. (16) During the second quarter of 2022, the Company updated its definition of client cash balances to include client cash accounts and exclude purchased money market funds. 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. Prior period disclosures have been updated to reflect these changes as applicable. $ in billions 2025 2024 2023 2022 2021 2020 Organic net new advisory assets $11.1 $18.4 $2.3 $1.5 $8.1 - Organic net new brokerage assets 50.0 21.2 8.8 29.8 26.8 - Total Organic Net New Assets from Large Institutions $61.0 $39.6 $11.1 $31.3 $35.0 - Endnotes Traditional Market RIA Market Employee Channel Institutional Channel Independent B/D Hybrid RIA National & Regional B/D Insurance B/D Independent RIA Wirehouse Bank Trust (-) Adj. to avoid double-counting Boutique B/D Product Manufacturers* Boutique B/D* Retail bank B/D (-) Adj. to Retail bank B/D: Chase & Wells Fargo * Estimated market sizing based on LPL estimates. Product Manufacturers defined as fund companies with an adjacent traditional wealth management business serving individuals. Boutique B/D defined as National & Regional B/Ds with less than $50B AUM, which we view as an institutional market opportunity Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC
Page 39
39 (17) Management’s corporate cash target reflects a level sufficient to meet our near-term corporate debt obligations. (18) Corporate cash, a component of cash and equivalents, includes 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 LLC, LPL Enterprise, LLC, The Private Trust Company, N.A., Commonwealth Equity Services, LLC (“CES”) 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. (19) Consists of total advisory and brokerage assets under custody at LPL Financial and Waddell & Reed, LLC, as well as assets under custody of a third-party custodian related to certain of the Company’s subsidiaries, CES and Atria’s introducing broker-dealer subsidiaries. As of December 31, 2025, there were no assets under custody at Waddell & Reed. (20) 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. (21) During the fourth quarter of 2025, the Company updated its definition of promotional (ongoing) to exclude TA loan amortization. As a result, TA loan amortization expenses are now disclosed as a separate line in the Management’s Statements of Operations. Prior period disclosures have been updated to reflect these changes as applicable. (22) During the first quarter of 2023, the Company updated its presentation of employee deferred compensation to be consistent with its presentation of advisor deferred compensation. As a result, gains or losses related to market fluctuations on advisor and employee deferred compensation plans are presented in the same line item as the related increase or decrease in compensation expense for purposes of Management’s Statements of Operations. This change has not been applied retroactively as the impact on prior periods was not material. (23) 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: (24) Regulatory charges for the year ended December 31, 2024 include a charge related to a settlement with the SEC to resolve the Company's 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 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 $50.0 million in August 2024. (25) The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million 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. (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 consolidated statements of income for the periods presented: (27) M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of the transaction. (28) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the consolidated statements of income. $ in millions 2025 2024 2023 2022 2021 Compensation and benefits $312 $35 $6 $21 $36 Occupancy and equipment 204 - 1 1 3 Promotional 86 7 4 2 14 Professional services 42 21 10 12 19 Change in fair value of contingent consideration(28) 24 42 27 - - Interest(26) 8 - - - - Other 64 1 1 1 4 Acquisition costs $740 $106 $48 $36 $76 Endnotes LPL Financial Member FINRA/SIPC $ in millions 2025 2024 2023 2022 2021 Interest expense on borrowings on Management’s Statements of Operations $395 $274 $187 $126 $104 Cost of debt issuance related to Commonwealth acquisition(23) 8 - - - - Interest expense on borrowings on Consolidated Statements of Income $403 $274 $187 $126 $104 Note: Totals may not foot due to rounding