Earnings release
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LPL Financial Announces Third Quarter 2026 Results Oct 27, 2026 Key Financial Results Net income was $357 million, translating to diluted earnings per share ("EPS") of $4.52 Adjusted EPS* increased 15% year-over-year to $5.97 Gross profit* increased 12% year-over-year to $1,662 million Core G&A* increased 11% year-over-year to $532 million Adjusted pre-tax income* increased 13% year-over-year to $641 million Key Business Results Total client assets increased 11% year-over-year to $2.6 trillion Advisory assets increased 16% year-over-year to $1.6 trillion Advisory assets as a percentage of total client assets increased to 60.9%, up from 58.2% a year ago Total organic net new assets were $29 billion, representing 5% annualized growth Recruited assets(1) were $24 billion, down 26% from a year ago Recruited assets over the trailing twelve months were $81 billion Total client cash balances were $57 billion, consistent with prior quarter and an increase of $1 billion year-over-year Client cash balances as a percentage of total client assets were 2.2%, consistent with prior quarter and down from 2.4% in the prior year Key Capital and Liquidity Measures Corporate cash(2) was $563 million Leverage ratio(3) was 1.93x Share repurchases were $ 301 million and dividends paid were $24 million Key Updates M&A: Commonwealth Financial Network ("Commonwealth"): On track to complete the conversion in the fourth quarter of 2026 Asset retention is now expected to be approximately 83% Estimated run-rate EBITDA is now expected to be $415 million Liquidity & Succession: Deployed approximately $20 million of capital to close three deals in Q3 Core G&A: Given our performance to date, we are narrowing our 2026 Core G&A* outlook range to $2,140-2,160 million, including expenses related to Commonwealth Capital Management: Dividend: The Company's Board of Directors declared a $0.30 per share dividend to be paid on November 30, 2026 to all stockholders of record as of November 12, 2026 *See the Non-GAAP Financial Measures section and the endnotes to this release for further details about these non-GAAP financial measures SAN DIEGO, Oct. 27, 2026 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq: LPLA) (the "Company") today announced results for its third quarter ended September 30, 2026, reporting net income of $357 million, or $4.52 per share. This compares with a net loss of $30 million, or $0.37 per share, in the third quarter of 2025 and net income of $379 million, or $4.74 per share, in the prior quarter. "After an outstanding first half of the year, we delivered another quarter of strong business performance and excellent financial
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results, while making meaningful progress on key strategic initiatives,” said Rich Steinmeier, CEO. “We delivered improved organic growth, advanced our preparation to onboard Commonwealth, and began the roll out of our proprietary AI agent, Cyan, to advisors. These accomplishments underscore the strength of our platform and our continued focus on delivering unmatched value for advisors and their clients. " "The team delivered another quarter of outstanding results, highlighted by strong organic growth and record adjusted earnings per share, all while advancing our advisor experience and executing on our capital allocation strategy," said Matt Audette, President and CFO. “These efforts position us to sustain that momentum through year-end and into 2027. " Conference Call and Additional Information The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Tuesday, October 27, 2026. The conference call will be accessible and available for replay at investor.lpl.com/events. Contacts Investor Relations investor.relations@lplfinancial.com Media Relations media.relations@lplfinancial.com About LPL Financial LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace (4), LPL supports more than 32,000 financial advisors and the wealth management practices of approximately 1,100 financial institutions, servicing and custodying approximately $2.6 trillion in brokerage and advisory assets on behalf of approximately 8 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com. Securities and advisory services offered through LPL Financial LLC ("LPL Financial") or its affiliate LPL Enterprise, LLC ("LPL Enterprise"), both registered investment advisers and broker-dealers. Members FINRA/SIPC. Throughout this communication, the terms "financial advisors" and "advisors" are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial or LPL Enterprise. We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website. Forward-Looking Statements This press release contains statements regarding: the Company’s retention of Commonwealth assets and Commonwealth’s future financial and operating performance; run-rate EBITDA expectations in connection with the Company’s acquisition of Commonwealth; the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Commonwealth; the Company's plans to invest to drive growth and increase efficiency while scaling its business; the Company’s recruitment pipeline and expected organic growth; the Company's future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company's ICA yield, service and fee revenue, transaction revenue, core G&A expense, interest expense and income, leverage ratio (including plans to reduce leverage), pricing and fees (including their effect on adjusted pre-tax margin), corporate cash, run-rate EBITDA, depreciation and amortization, operating leverage, pre-tax margin, transition assistance loan amortization, organic growth, payout rate, tax rate and share repurchases; and future capabilities, including the timing and extent of the Company's expansion of access to Cyan, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value. These and 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 October 27, 2026 and are not guarantees that 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, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required; disruptions in the businesses of the Company and Commonwealth that could make it more difficult to maintain
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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; 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 retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company; changes in the growth and profitability of the Company's fee-based offerings and asset-based revenues; 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; the 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 LPL Financial, and the indentures governing the Company's senior unsecured notes; strategic acquisitions and investments, including pursuant to the Company's Liquidity & 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; 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; 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 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 the date of this earnings release, and you should not rely on statements contained herein as representing the Company's view as of any date subsequent to the date of this press release. LPL Financial Holdings Inc. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited) Three Months Ended Three Months Ended September 30, June 30, September 30, 2026 2026 Change 2025 Change REVENUE Advisory $ 2,872,928 $ 2,632,405 9% $ 2,210,499 30% Commission: Sales-based 742,852 728,155 2% 695,029 7% Trailing 507,904 503,918 1% 492,426 3% Total commission 1,250,756 1,232,073 2% 1,187,455 5% Asset-based: Client cash 461,471 443,501 4% 428,190 8% Other asset-based 400,613 391,643 2% 354,090 13% Total asset-based 862,084 835,144 3% 782,280 10% Service and fee 218,055 208,879 4% 174,715 25% Transaction 79,120 83,216 (5%) 67,260 18% Interest income, net 48,699 46,527 5% 60,859 (20%) Other 12,388 148,379 (92%) 68,909 (82%)
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Total revenue 5,344,030 5,186,623 3% 4,551,977 17% EXPENSE Advisory and commission 3,632,732 3,507,164 4% 3,025,274 20% Compensation and benefits 358,512 355,612 1% 585,409 (39%) Promotional 235,733 220,030 7% 208,547 13% Occupancy and equipment 149,380 125,542 19% 299,680 (50%) Depreciation and amortization 117,287 109,805 7% 99,722 18% Interest expense on borrowings 105,834 101,502 4% 106,295 — % Amortization of other intangibles 72,844 70,886 3% 64,706 13% Professional services 53,250 50,757 5% 75,507 (29%) Brokerage, clearing and exchange 49,139 52,018 (6%) 43,282 14% Communications and data processing 23,978 26,200 (8%) 23,060 4% Other 60,215 51,603 17% 54,606 10% Total expense 4,858,904 4,671,119 4% 4,586,088 6% INCOME (LOSS) BEFORE PROVISION FOR (BENEFIT FROM) INCOME TAXES 485,126 515,504 (6%) (34,111) n/m PROVISION FOR (BENEFIT FROM) INCOME TAXES 128,565 136,243 (6%) (4,594) n/m NET INCOME (LOSS) $ 356,561 $ 379,261 (6%) $ (29,517) n/m EARNINGS (LOSS) PER SHARE Earnings (loss) per share, basic $ 4.53 $ 4.75 (5%) $ (0.37) n/m Earnings (loss) per share, diluted $ 4.52 $ 4.74 (5%) $ (0.37) n/m Weighted-average shares outstanding, basic 78,658 79,791 (1%) 80,017 (2%) Weighted-average shares outstanding, diluted 78,968 80,032 (1%) 80,357 (2%) LPL Financial Holdings Inc. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited) Nine Months Ended September 30, 2026 2025 Change REVENUE Advisory $ 8,120,380 $ 5,617,482 45% Commission: Sales-based 2,176,422 1,924,859 13% Trailing 1,498,441 1,348,440 11% Total commission 3,674,863 3,273,299 12% Asset-based: Client cash 1,350,297 1,217,553 11% Other asset-based 1,167,736 962,315 21% Total asset-based 2,518,033 2,179,868 16% Service and fee 637,918 471,753 35% Transaction 242,878 195,665 24% Interest income, net 140,406 181,651 (23%) Other 134,609 137,291 (2%) Total revenue 15,469,087 12,057,009 28% EXPENSE Advisory and commission 10,431,105 7,862,364 33% Compensation and benefits 1,082,864 1,210,055 (11%) Promotional 664,163 531,744 25% Occupancy and equipment 393,445 458,363 (14%) Depreciation and amortization 332,843 288,309 15% Interest expense on borrowings 307,628 297,793 3%
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Amortization of other intangibles 210,960 154,330 37% Brokerage, clearing and exchange 156,632 130,710 20% Professional services 154,388 152,925 1% Communications and data processing 73,645 63,983 15% Other 176,200 154,487 14% Total expense 13,983,873 11,305,063 24% INCOME BEFORE PROVISION FOR INCOME TAXES 1,485,214 751,946 98% PROVISION FOR INCOME TAXES 392,988 189,641 107% NET INCOME $ 1,092,226 $ 562,305 94% EARNINGS PER SHARE Earnings per share, basic $ 13.74 $ 7.19 91% Earnings per share, diluted $ 13.68 $ 7.15 91% Weighted-average shares outstanding, basic 79,515 78,220 2% Weighted-average shares outstanding, diluted 79,814 78,594 2% LPL Financial Holdings Inc. Condensed Consolidated Statements of Financial Condition (In thousands, except share data) (Unaudited) September 30, 2026 June 30, 2026 December 31, 2025 ASSETS Cash and equivalents $ 1,059,019 $ 1,275,690 $ 1,037,378 Cash and equivalents segregated under federal or other regulations 1,694,088 1,420,167 1,792,064 Restricted cash 149,970 232,889 225,298 Receivables from clients, net 1,119,673 994,139 803,206 Receivables from brokers, dealers and clearing organizations 110,715 244,302 70,897 Advisor loans, net 3,979,817 3,889,372 3,681,512 Other receivables, net 1,323,879 1,427,985 1,203,539 Investment securities ($140,282, $188,006, and $76,108 at fair value at September 30, 2026, June 30, 2026, and December 31, 2025, respectively) 155,287 203,499 91,528 Property and equipment, net 1,681,641 1,569,647 1,409,376 Goodwill 2,699,747 2,681,661 2,644,723 Other intangibles, net 3,472,226 3,433,597 3,330,788 Other assets 2,424,558 2,418,172 2,202,444 Total assets $ 19,870,620 $ 19,791,120 $ 18,492,753 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES: Client payables $ 2,256,906 $ 2,256,333 $ 2,308,275 Payables to brokers, dealers and clearing organizations 217,055 599,397 150,520 Accrued advisory and commission expenses payable 403,041 381,255 361,623 Corporate debt and other borrowings, net 7,802,917 7,460,510 7,258,694 Accounts payable and accrued liabilities 782,312 812,156 821,641 Other liabilities 2,596,071 2,524,629 2,247,515 Total liabilities 14,058,302 14,034,280 13,148,268 STOCKHOLDERS’ EQUITY: Common stock, $0.001 par value; 600,000,000 shares authorized; 136,850,801, 136,822,289, and 136,637,544 shares issued at September 30, 2026, June 30, 2026, and December 31, 2025, respectively 137 137 136 Additional paid-in capital 3,924,639 3,898,694 3,843,017
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Treasury stock, at cost — 58,540,091, 57,660,516, and 56,576,672 shares at September 30, 2026, June 30, 2026, and December 31, 2025, respectively (4,968,083) (4,664,666) (4,333,725) Retained earnings 6,855,625 6,522,675 5,835,057 Total stockholders’ equity 5,812,318 5,756,840 5,344,485 Total liabilities and stockholders’ equity $ 19,870,620 $ 19,791,120 $ 18,492,753 LPL Financial Holdings Inc. Management's Statements of Operations (In thousands, except per share data) (Unaudited) Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s unaudited condensed consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures" in this release. Quarterly Results Q3 2026 Q2 2026 Change Q3 2025 Change Gross Profit(5) Advisory $ 2,872,928 $ 2,632,405 9% $ 2,210,499 30% Trailing commissions 507,904 503,918 1% 492,426 3% Sales-based commissions 742,852 728,155 2% 695,029 7% Advisory fees and commissions 4,123,684 3,864,478 7% 3,397,954 21% Production-based payout(6) (3,627,962) (3,378,961) 7% (2,972,256) 22% Advisory fees and commissions, net of payout 495,722 485,517 2% 425,698 16% Client cash(7) 472,282 456,945 3% 441,576 7% Other asset-based(8) 400,613 391,643 2% 354,090 13% Service and fee 218,055 208,879 4% 174,715 25% Transaction 79,120 83,216 (5%) 67,260 18% Interest income, net (9) 37,853 33,027 15% 47,468 (20%) Other revenue(10) 7,390 11,054 (33%) 11,821 (37%) Total net advisory fees and commissions and attachment revenue 1,711,035 1,670,281 2% 1,522,628 12% Brokerage, clearing and exchange expense (49,139) (52,018) (6%) (43,282) 14% Gross Profit(5) 1,661,896 1,618,263 3% 1,479,346 12% G&A Expense Core G&A(11) 532,205 519,272 2% 477,323 11% Transition assistance loan amortization (12) 150,009 142,335 5% 104,760 43% Promotional (ongoing)(12)(13)(14) 87,943 79,123 11% 97,103 (9%) Employee share-based compensation 21,109 22,701 (7%) 18,627 13% Regulatory charges 6,390 8,158 (22%) 6,744 (5%) Acquisition costs(14) 83,149 48,977 70% 538,177 (85%) Total G&A 880,805 820,566 7% 1,242,734 (29%) EBITDA(15) 781,091 797,697 (2%) 236,612 n/m Interest expense on borrowings 105,834 101,502 4% 106,295 — % Depreciation and amortization 117,287 109,805 7% 99,722 18% Amortization of other intangibles 72,844 70,886 3% 64,706 13% INCOME (LOSS) BEFORE PROVISION FOR (BENEFIT FROM) INCOME TAXES 485,126 515,504 (6%) (34,111) n/m PROVISION FOR (BENEFIT FROM) INCOME TAXES 128,565 136,243 (6%) (4,594) n/m NET INCOME (LOSS) $ 356,561 $ 379,261 (6%) $ (29,517) n/m Earnings (loss) per share, diluted $ 4.52 $ 4.74 (5%) $ (0.37) n/m Weighted-average shares outstanding, diluted 78,968 80,032 (1%) 80,357 (2%) Adjusted EBITDA(15) $ 864,240 $ 846,674 2% $ 774,789 12% Adjusted pre-tax income (16) $ 641,119 $ 635,367 1% $ 568,772 13%
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Adjusted EPS(17) $ 5.97 $ 5.84 2% $ 5.20 15% LPL Financial Holdings Inc. Operating Metrics (Dollars in billions, except where noted) (Unaudited) Q3 2026 Q2 2026 Change Q3 2025 Change Market Drivers S&P 500 Index (end of period) 7,652 7,499 2% 6,688 14% Russell 2000 Index (end of period) 2,797 3,024 (8%) 2,436 15% Fed Funds daily effective rate (average bps) 367 363 4bps 430 (63bps) Client Assets(18) Advisory $ 1,561.0 $ 1,548.4 1% $ 1,346.9 16% Brokerage 1,003.6 1,014.3 (1%) 967.7 4% Total Client Assets $ 2,564.6 $ 2,562.7 — % $ 2,314.5 11% Advisory as a % of Total Client Assets 60.9% 60.4% 50bps 58.2% 270bps Assets by Platform Corporate RIA advisory (19) $ 1,202.7 $ 1,190.8 1% $ 1,022.1 18% Independent RIA advisory (19) 358.3 357.6 — % 324.8 10% Brokerage 1,003.6 1,014.3 (1%) 967.7 4% Total Client Assets $ 2,564.6 $ 2,562.7 — % $ 2,314.5 11% Centrally Managed Assets Centrally managed assets (20) $ 250.4 $ 245.6 2% $ 203.1 23% Centrally Managed as a % of Total Advisory Assets 16.0% 15.9% 10bps 15.1% 90bps LPL Financial Holdings Inc. Operating Metrics (Dollars in billions, except where noted) (Unaudited) Q3 2026 Q2 2026 Change Q3 2025 Change Organic Net New Assets (NNA) (21) Advisory $ 33.1 $ 30.2 n/m $ 29.6 n/m Brokerage (4.0) (7.1) n/m 3.1 n/m Total Organic NNA $ 29.1 $ 23.1 n/m $ 32.7 n/m Acquired NNA(21) Advisory $ — $ 0.5 n/m $ 199.4 n/m Brokerage — — n/m 75.7 n/m Total Acquired NNA $ — $ 0.5 n/m $ 275.0 n/m Total NNA(21) Advisory $ 33.1 $ 30.7 n/m $ 229.0 n/m Brokerage (4.0) (7.1) n/m 78.7 n/m Total NNA $ 29.1 $ 23.6 n/m $ 307.7 n/m Net brokerage to advisory conversions (22) $ 7.4 $ 8.8 n/m $ 8.0 n/m Organic advisory NNA annualized growth (23) 8.5% 8.7% n/m 11.2% n/m
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Total organic NNA annualized growth (23) 4.5% 4.0% n/m 6.8% n/m Total Organic Advisory NNA(21) Organic corporate RIA advisory $ 34.5 $ 27.9 n/m $ 29.0 n/m Organic independent RIA advisory (1.4) 2.3 n/m 0.6 n/m Total Organic Advisory NNA $ 33.1 $ 30.2 n/m $ 29.6 n/m Organic centrally managed NNA (21) $ 8.4 $ 7.9 n/m $ 9.9 n/m Net buy (sell) activity (24) $ 41.9 $ 39.7 n/m $ 41.8 n/m Note: Totals may not foot due to rounding. LPL Financial Holdings Inc. Client Cash Data (Dollars in thousands, except where noted) (Unaudited) Q3 2026 Q2 2026 Change Q3 2025 Change Client Cash Balances (in billions) (25) Insured cash account sweep $ 37.8 $ 38.4 (2%) $ 36.9 2% Deposit cash account sweep 16.0 15.6 3% 13.0 23% Total Bank Sweep 53.8 54.1 (1%) 49.9 8% Money market sweep 1.0 1.1 (9%) 4.2 (76%) Total Client Cash Sweep Held by Third Parties 54.8 55.2 (1%) 54.1 1% Client cash account (CCA) 1.8 1.7 6% 1.8 — % Total Client Cash Balances $ 56.6 $ 56.9 (1%) $ 55.8 1% Client Cash Balances as a % of Total Assets 2.2% 2.2% —bps 2.4% (20bps) Note: Totals may not foot due to rounding. Three Months Ended September 30, 2026 June 30, 2026 September 30, 2025 Interest-Earning Assets Average Balance (in billions) Revenue Net Yield (bps)(26) Average Balance (in billions) Revenue Net Yield (bps)(26) Average Balance (in billions) Revenue Net Yield (bps)(26) Insured cash account sweep $ 37.1 $ 328,870 352 $ 37.7 $ 315,814 336 $ 34.7 $ 307,118 351 Deposit cash account sweep 15.1 131,642 346 14.9 126,571 341 11.8 118,957 401 Total Bank Sweep 52.2 460,512 350 52.6 442,385 337 46.5 426,075 364 Money market sweep 1.0 959 37 1.3 1,116 35 3.8 2,115 22 Total Client Cash Held By Third Parties 53.2 461,471 344 53.9 443,501 330 50.3 428,190 338 Client cash account (CCA) 1.6 10,811 265 1.8 13,444 303 1.5 13,386 365 Total Client Cash 54.8 472,282 342 55.7 456,945 329 51.8 441,576 339 Margin receivables 0.9 17,037 792 0.8 15,602 796 0.7 13,910 820 Other interest revenue 1.6 20,816 512 1.4 17,425 514 2.9 33,558 458 Total Client Cash and Interest Income, Net $ 57.3 $ 510,135 353 $ 57.9 $ 489,972 340 $ 55.3 $ 489,044 351 Note: Totals may not foot due to rounding. LPL Financial Holdings Inc. Monthly Metrics (Dollars in billions, except where noted) (Unaudited) September 2026 August 2026 Change July 2026 June 2026
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Client Assets(18) Advisory $ 1,561.0 $ 1,582.5 (1%) $ 1,544.2 $ 1,548.4 Brokerage 1,003.6 1,019.4 (2%) 1,002.4 1,014.3 Total Client Assets $ 2,564.6 $ 2,601.9 (1%) $ 2,546.6 $ 2,562.7 Organic NNA(21) Advisory $ 10.4 $ 12.5 n/m $ 10.2 $ 13.3 Brokerage (2.2) 0.9 n/m (2.8) (2.0) Total Organic NNA $ 8.2 $ 13.5 n/m $ 7.4 $ 11.3 Acquired NNA(21) Advisory $ — $ — n/m $ — $ 0.5 Brokerage — — n/m — — Total Acquired NNA $ — $ — n/m $ — $ 0.5 Total NNA(21) Advisory $ 10.4 $ 12.5 n/m $ 10.2 $ 13.8 Brokerage (2.2) 0.9 n/m (2.8) (2.0) Total NNA $ 8.2 $ 13.5 n/m $ 7.4 $ 11.8 Net brokerage to advisory conversions (22) $ 2.5 $ 2.3 n/m $ 2.6 $ 3.1 Client Cash Balances (25) Insured cash account sweep $ 37.8 $ 37.1 2% $ 36.8 $ 38.4 Deposit cash account sweep 16.0 15.1 6% 15.0 15.6 Total Bank Sweep 53.8 52.2 3% 51.8 54.1 Money market sweep 1.0 1.0 — % 1.1 1.1 Total Client Cash Sweep Held by Third Parties 54.8 53.1 3% 52.8 55.2 Client cash account (CCA) 1.8 1.2 50% 1.5 1.7 Total Client Cash Balances $ 56.6 $ 54.4 4% $ 54.3 $ 56.9 Net buy (sell) activity (24) $ 13.3 $ 13.8 n/m $ 14.7 $ 13.1 Market Drivers S&P 500 Index (end of period) 7,652 7,686 — % 7,490 7,499 Russell 2000 Index (end of period) 2,797 2,956 (5%) 2,931 3,024 Fed Funds daily effective rate (average bps) 375 363 12bps 363 363 Note: Totals may not foot due to rounding. LPL Financial Holdings Inc. Financial Measures (Dollars in thousands, except where noted) (Unaudited) Q3 2026 Q2 2026 Change Q3 2025 Change Commission Revenue by Product Annuities $ 748,473 $ 727,746 3% $ 713,900 5% Mutual funds 261,833 262,044 — % 258,167 1% Fixed income 85,064 82,014 4% 66,550 28% Equities 51,314 58,751 (13%) 51,475 — % Other 104,072 101,518 3% 97,363 7% Total commission revenue $ 1,250,756 $ 1,232,073 2% $ 1,187,455 5% Commission Revenue by Sales-based and Trailing Sales-based commissions Annuities $ 469,397 $ 444,791 6% $ 438,927 7% Fixed income 85,064 82,014 4% 66,550 28%
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Equities 51,314 58,751 (13%) 51,475 — % Mutual funds 48,527 53,993 (10%) 54,235 (11%) Other 88,550 88,606 — % 83,842 6% Total sales-based commissions $ 742,852 $ 728,155 2% $ 695,029 7% Trailing commissions Annuities $ 279,076 $ 282,955 (1%) $ 274,973 1% Mutual funds 213,306 208,051 3% 203,932 5% Other 15,522 12,912 20% 13,521 15% Total trailing commissions $ 507,904 $ 503,918 1% $ 492,426 3% Total commission revenue $ 1,250,756 $ 1,232,073 2% $ 1,187,455 5% Payout Rate(6) 87.98% 87.44% 54bps 87.47% 51bps LPL Financial Holdings Inc. Capital Management Measures (Dollars in thousands, except where noted) (Unaudited) Q3 2026 Q2 2026 Q4 2025 Cash and equivalents $ 1,059,019 $ 1,275,690 $ 1,037,378 Cash at regulated subsidiaries (985,736) (1,221,009) (925,356) Excess cash at regulated subsidiaries per the Credit Agreement 489,476 375,379 357,693 Corporate Cash(2) $ 562,759 $ 430,060 $ 469,715 Corporate Cash(2) Cash at LPL Holdings, Inc. $ 44,960 $ 16,807 $ 19,368 Excess cash at regulated subsidiaries per the Credit Agreement 489,476 375,379 357,693 Cash at non-regulated subsidiaries 28,323 37,874 92,654 Corporate Cash $ 562,759 $ 430,060 $ 469,715 Leverage Ratio Total debt $ 7,836,000 $ 7,496,000 $ 7,299,000 Total corporate cash 562,759 430,060 469,715 Credit Agreement Net Debt $ 7,273,241 $ 7,065,940 $ 6,829,285 Credit Agreement EBITDA (trailing twelve months) (27) $ 3,771,437 $ 3,695,539 $ 3,501,832 Leverage Ratio 1.93x 1.91x 1.95x September 30, 2026 Total Debt Balance Current Applicable Margin Interest Rate Maturity Revolving Credit Facility (a) $ 616,000 ABR+37.5 bps / SOFR+147.5 bps 5.299% 5/20/2029 Broker-Dealer Revolving Credit Facility — SOFR+125 bps 5.150% 5/17/2027 Senior Unsecured Term Loan A 1,020,000 SOFR+125 bps(b) 5.151% 12/5/2028 Senior Unsecured Notes 500,000 5.700% Fixed 5.700% 5/20/2027 Senior Unsecured Notes 400,000 4.625% Fixed 4.625% 11/15/2027 Senior Unsecured Notes 500,000 4.900% Fixed 4.900% 4/3/2028 Senior Unsecured Notes 750,000 6.750% Fixed 6.750% 11/17/2028 Senior Unsecured Notes 900,000 4.000% Fixed 4.000% 3/15/2029 Senior Unsecured Notes 750,000 5.200% Fixed 5.200% 3/15/2030 Senior Unsecured Notes 500,000 5.150% Fixed 5.150% 6/15/2030
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Senior Unsecured Notes 400,000 4.375% Fixed 4.375% 5/15/2031 Senior Unsecured Notes 500,000 6.000% Fixed 6.000% 5/20/2034 Senior Unsecured Notes 500,000 5.650% Fixed 5.650% 3/15/2035 Senior Unsecured Notes 500,000 5.750% Fixed 5.750% 6/15/2035 Total / Weighted Average $ 7,836,000 5.265% (a) Unsecured borrowing capacity of $2.25 billion at LPL Holdings, Inc. (b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps. LPL Financial Holdings Inc. Key Business and Financial Metrics (Dollars in thousands, except where noted) (Unaudited) Q3 2026 Q2 2026 Change Q3 2025 Change Business Metrics Advisors 32,597 32,475 — % 32,128 1% Net new advisors 122 331 n/m 2,775 n/m Annualized advisory fees and commissions per advisor(28) $ 507 $ 478 6% $ 442 15% Average total assets per advisor ($ in millions) (29) $ 78.7 $ 78.9 — % $ 72.0 9% Total client accounts (in millions) 11.9 11.8 1% 11.4 4% Recruited AUM ($ in billions) $ 24.1 $ 24.9 (3%) $ 32.6 (26%) Employees 10,417 10,081 3% 10,116 3% AUM retention rate (quarterly annualized) (30) 97.4% 97.4% —bps 96.4% 100bps Capital Management Capital expenditures ($ in millions) (31) $ 229.7 $ 199.4 15% $ 142.2 62% Acquisitions, net ($ in millions) (32) $ 102.2 $ 102.7 — % $ 1,526.3 (93%) Share repurchases ($ in millions) $ 300.6 $ 309.5 (3%) $ — 100% Dividends ($ in millions) 23.6 24.0 (2%) 24.0 (2%) Total Capital Returned ($ in millions) $ 324.2 $ 333.5 (3%) $ 24.0 n/m Non-GAAP Financial Measures 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 below are appropriate for evaluating the performance of the Company. Adjusted EPS and Adjusted net income Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income (loss) plus the after-tax impact of amortization of other intangibles and acquisition costs, 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 and acquisition costs 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 (loss), earnings (loss) per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income (loss) and earnings (loss) per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release. Gross profit Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; 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 administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to
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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 in nature. For a calculation of gross profit, please see the endnote disclosures in this release. Core G&A Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; transition assistance loan amortization; promotional (ongoing); acquisition costs; employee share-based compensation; and regulatory charges. 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 support 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 expense to core G&A, please see the endnote disclosures in this release. 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 and Adjusted EBITDA EBITDA is defined as net income (loss) plus interest expense on borrowings, provision for (benefit from) income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs. 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 (loss) or any other performance measure derived in accordance with GAAP. For a reconciliation of net income (loss) to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release. Adjusted pre-tax income Adjusted pre-tax income is defined as income (loss) before provision for (benefit from) income taxes plus amortization of other intangibles and acquisition 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 and acquisition costs 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 income (loss) before provision for (benefit from) income taxes or any other performance measure derived in accordance with GAAP. For a reconciliation of income (loss) before provision for (benefit from) income taxes to adjusted pre-tax income, please see the endnote disclosures in this release. Credit Agreement EBITDA Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company's amended and restated credit 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 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 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. 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 income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release. Endnote Disclosures (1) Represents the estimated total client assets expected to transition to the Company's primary broker-dealer subsidiary, LPL Financial, in connection 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 client assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate. (2) 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., and Commonwealth Equity Services, LLC ("CES"), in excess of the capital requirements of the Company's Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries. (3) Compliance with the Leverage Ratio is only required under the Company's revolving credit facility.
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(4) The Company was named a Top RIA custodian (Cerulli Associates, 2025 U.S. RIA Marketplace Report); and, among third-party providers of brokerage services to banks and credit unions , No. 1 in Market Share of AUM from Financial Institutions and No. 1 in Share of Advisors (Cerulli Associates, 2025 U.S. Broker-Dealer Marketplace Report). Commonwealth and the Company ranked No. 1 and No. 2, respectively, in the JD Power 2026 Independent Advisor Satisfaction survey. (5) Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands): Q3 2026 Q2 2026 Q3 2025 Total revenue $ 5,344,030 5,186,623 $ 4,551,977 Advisory and commission expense 3,632,732 3,507,164 3,025,274 Brokerage, clearing and exchange expense 49,139 52,018 43,282 Employee deferred compensation 263 9,178 4,075 Gross profit $ 1,661,896 $ 1,618,263 $ 1,479,346 (6) Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate): Q3 2026 Q2 2026 Q3 2025 Advisory and commission expense $ 3,632,732 $ 3,507,164 $ 3,025,274 Plus (Less): Advisor deferred compensation (4,770) (128,203) (53,018) Production-based payout $ 3,627,962 $ 3,378,961 $ 2,972,256 Advisory and commission revenue $ 4,123,684 $ 3,864,478 $ 3,397,954 Payout rate 87.98% 87.44% 87.47% (7) Below is a reconciliation of client cash revenue per Management's Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company's condensed consolidated statements of income for the periods presented (in thousands): Q3 2026 Q2 2026 Q3 2025 Client cash on Management's Statements of Operations $ 472,282 $ 456,945 $ 441,576 Interest income on CCA balances segregated under federal or other regulations (9) (10,811) (13,444) (13,386) Client cash on Condensed Consolidated Statements of Income $ 461,471 $ 443,501 $ 428,190 (8) Consists of revenue from the Company's sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs. (9) Below is a reconciliation of interest income, net per Management's Statements of Operations to interest income, net on the Company's condensed consolidated statements of income for the periods presented (in thousands): Q3 2026 Q2 2026 Q3 2025
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Interest income, net on Management's Statements of Operations $ 37,853 $ 33,027 $ 47,468 Interest income on CCA balances segregated under federal or other regulations (7) 10,811 13,444 13,386 Interest income on deferred compensation (10) 35 56 5 Interest income, net on Condensed Consolidated Statements of Income $ 48,699 $ 46,527 $ 60,859 (10) Below is a reconciliation of other revenue per Management's Statements of Operations to other revenue on the Company's condensed consolidated statements of income for the periods presented (in thousands): Q3 2026 Q2 2026 Q3 2025 Other revenue on Management's Statements of Operations $ 7,390 $ 11,054 $ 11,821 Interest income on deferred compensation (9) (35) (56) (5) Deferred compensation 5,033 137,381 57,093 Other revenue on Condensed Consolidated Statements of Income $ 12,388 $ 148,379 $ 68,909 (11)Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “ Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company's total expense to core G&A for the periods presented (in thousands): Q3 2026 Q2 2026 Q3 2025 Core G&A Reconciliation Total expense $ 4,858,904 $ 4,671,119 $ 4,586,088 Advisory and commission (3,632,732) (3,507,164) (3,025,274) Depreciation and amortization (117,287) (109,805) (99,722) Interest expense on borrowings (105,834) (101,502) (106,295) Brokerage, clearing and exchange (49,139) (52,018) (43,282) Amortization of other intangibles (72,844) (70,886) (64,706) Employee deferred compensation (263) (9,178) (4,075) Total G&A 880,805 820,566 1,242,734 Transition assistance loan amortization (12) (150,009) (142,335) (104,760) Promotional (ongoing)(12)(13)(14) (87,943) (79,123) (97,103) Acquisition costs(14) (83,149) (48,977) (538,177) Employee share-based compensation (21,109) (22,701) (18,627) Regulatory charges (6,390) (8,158) (6,744) Core G&A $ 532,205 $ 519,272 $ 477,323 (12) During the fourth quarter of 2025, the Company updated its definition of Promotional (ongoing) to exclude transition assistance loan amortization. As a result, transition assistance loan amortization is now disclosed as a separate line on Management's Statements of Operations and in the Core G&A reconciliation. Prior period disclosures have been updated to reflect these changes as applicable. (13) Promotional (ongoing) includes $14.2 million, $13.5 million and $19.0 million for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the condensed consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs.
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(14) Acquisition costs include the costs to set up, 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 (in thousands): Q3 2026 Q2 2026 Q3 2025 Acquisition costs Compensation and benefits (a) $ 31,891 $ 20,231 $ 257,607 Occupancy and equipment (a) 11,789 4,618 197,567 Promotional(13) 12,009 12,016 25,664 Professional services 14,167 10,923 9,674 Change in fair value of contingent consideration (33) 9,461 (2,794) 2,676 Other 3,832 3,983 44,989 Acquisition costs $ 83,149 $ 48,977 $ 538,177 (a) During the three months ended September 30, 2025, the Company incurred $419.0 million of acquisition costs at the Commonwealth closing. This primarily includes $228.4 million of costs related to transaction bonuses and the acceleration of unvested equity awards which were classified as Compensation and benefits and $190.1 million of costs related to certain contract termination fees which were classified as Occupancy and equipment. (15) EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of net income (loss) to EBITDA and adjusted EBITDA for the periods presented (in thousands): Q3 2026 Q2 2026 Q3 2025 EBITDA and adjusted EBITDA Reconciliation Net income (loss) $ 356,561 $ 379,261 $ (29,517) Interest expense on borrowings 105,834 101,502 106,295 Provision for (benefit from) income taxes 128,565 136,243 (4,594) Depreciation and amortization 117,287 109,805 99,722 Amortization of other intangibles 72,844 70,886 64,706 EBITDA $ 781,091 $ 797,697 $ 236,612 Acquisition costs(14) 83,149 48,977 538,177 Adjusted EBITDA $ 864,240 $ 846,674 $ 774,789 (16) Adjusted pre-tax income is a non-GAAP financial measure. Please see a description of adjusted pre-tax income under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of income (loss) before provision for (benefit from) income taxes to adjusted pre-tax income for the periods presented (in thousands): Q3 2026 Q2 2026 Q3 2025 Income (loss) before provision for (benefit from) income taxes $ 485,126 $ 515,504 $ (34,111) Amortization of other intangibles 72,844 70,886 64,706 Acquisition costs(14) 83,149 48,977 538,177 Adjusted pre-tax income $ 641,119 $ 635,367 $ 568,772 Adjusted pre-tax margin (a) 38.6% 39.3% 38.4% (a) Calculated by dividing adjusted pre-tax income by gross profit.
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(17) Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income (loss) and earnings (loss) per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data): Q3 2026 Q2 2026 Q3 2025 Amount Per Share Amount Per Share Amount Per Share Net income (loss) / earnings (loss) per diluted share $ 356,561 $ 4.52 $ 379,261 $ 4.74 $ (29,517) $ (0.37) Amortization of other intangibles 72,844 0.92 70,886 0.89 64,706 0.81 Acquisition costs(14) 83,149 1.05 48,977 0.61 538,177 6.70 Tax benefit (41,281) (0.52) (31,442) (0.39) (155,149) (1.93) Adjusted net income / adjusted EPS $ 471,273 $ 5.97 $ 467,682 $ 5.84 $ 418,217 $ 5.20 Diluted share count 78,968 80,032 80,357 Note: Totals may not foot due to rounding. (18) Consists of total assets under custody at the Company's primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to CES. (19) Assets on the Company's corporate RIA advisory platform are serviced by investment advisor representatives of LPL Financial. 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 advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms. (21) 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. (22) During the third quarter of 2026, the Company updated its definition of net brokerage to advisory conversions to include direct assets. Net brokerage to advisory conversions now consists of existing custodied and direct assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage. Prior period disclosures have been updated to reflect these changes as applicable. (23) Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total assets. (24) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial. (25) Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the condensed consolidated statements of financial condition. The following table presents purchased money market funds for the periods presented (in billions): Q3 2026 Q2 2026 Q3 2025 Purchased money market funds $ 50.0 $ 49.2 $ 48.2 (26) Calculated by dividing revenue for the period by the average balance during the period. (27) EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands): Q3 2026 Q2 2026 Q4 2025 EBITDA and Credit Agreement EBITDA Reconciliations Net income $ 1,392,945 $ 1,006,867 $ 863,024
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Interest expense on borrowings 413,241 413,702 403,406 Provision for income taxes 489,830 356,671 286,483 Depreciation and amortization 437,968 420,403 393,434 Amortization of other intangibles 293,208 285,070 236,578 EBITDA $ 3,027,192 $ 2,482,713 $ 2,182,925 Credit Agreement Adjustments: Acquisition costs and other (14)(34) $ 309,764 $ 766,866 $ 777,299 Employee share-based compensation 85,487 83,005 75,956 M&A accretion(35) 345,681 359,895 462,597 Advisor share-based compensation 3,313 3,060 3,055 Credit Agreement EBITDA $ 3,771,437 $ 3,695,539 $ 3,501,832 (28) Calculated based on the average advisor count from the current period and prior periods. (29) Calculated based on the end of period total assets divided by end of period advisor count. (30) Reflects retention of total assets, calculated by deducting quarterly annualized attrition from total assets, divided by the prior quarter total assets. (31) Capital expenditures represent cash payments for property and equipment during the period. (32) Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period. (33) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the condensed consolidated statements of income. (34) Acquisition costs and other primarily include costs related to acquisitions and costs incurred related to the integration of the strategic relationship with Prudential Advisors. (35) 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 such acquisition.