LPL Financial reported results for its second quarter ended June 30, 2026, with net income of $379 million, or $4.74 per diluted share, up 39% from a year ago. Adjusted EPS increased 29% year-over-year to $5.84. Gross profit increased 24% year-over-year to $1,618 million.
Total client assets increased 34% year-over-year to $2.6 trillion. Advisory assets increased 46% year-over-year to $1.5 trillion, with advisory assets as a percentage of total client assets rising to 60.4%, up from 55.3% a year ago. Total organic net new assets were $23 billion, representing 4% annualized growth.
Recruited assets were $25 billion, up 35% from a year ago, with recruited assets over the trailing twelve months reaching $89 billion. Total client cash balances were $57 billion, a decrease of $2 billion sequentially and an increase of $6 billion year-over-year. Client cash balances as a percentage of total client assets were 2.2%, down from 2.5% in the prior quarter.
Corporate cash was $430 million. The company’s leverage ratio was 1.91x. Share repurchases were $309 million and dividends paid were $24 million during the quarter. On July 23, 2026, the Board approved a $2.5 billion increase to the company’s share repurchase authorization, and the Board declared a $0.30 per share dividend payable on August 28, 2026.
LPL remains on track to complete the conversion of Commonwealth Financial Network in the fourth quarter of 2026, continuing to expect asset retention of approximately 90%. Estimated run-rate EBITDA for the acquisition has increased from $410 million to $435 million. The company also closed on the acquisition of Mariner Advisor Network, an LPL branch office supporting 367 advisors managing $31 billion of client assets. LPL lowered its 2026 Core G&A outlook range to $2,140-2,165 million, including expenses related to Commonwealth.
KEY QUOTES:
“After an outstanding start to the year, we continued our momentum in the second quarter, delivering another quarter of strong performance and results. We remain focused on our strategic priorities, and are on track to onboard Commonwealth later this year. Underscoring the exceptional work and dedication of our teams, JD Power recognized both Commonwealth and LPL as the top-ranked firms for independent advisor satisfaction.”
Rich Steinmeier, CEO, LPL Financial
“The team delivered another quarter of remarkable results, highlighted by record adjusted earnings per share and further progress driving improved operating leverage. We achieved this while deploying capital across our entire framework, including continuing to invest in organic and inorganic growth and resuming share repurchases.”
Matt Audette, President and CFO, LPL Financial
