LPL Financial Narrows Commonwealth Retention and Ebitda Outlook

The Tip Desk · November 8, 2026 · 3 min read

Adjusted EPS rose 15% to $5.97 as organic net new assets reached $29.1 billion and the firm cut Commonwealth retention to about 83%.

LPL Financial Holdings Inc. (LPLA) reported adjusted earnings of $5.97 a share for the third quarter ended September 30, 2026, up 15% from a year earlier, as organic inflows picked up and the wealth-management firm lowered its Commonwealth conversion outlook.

Net income was $357 million, or $4.52 a share, compared with a $30 million loss, or $0.37 a share, in the third quarter of 2025. Sequential net income fell 6% from $379 million, or $4.74 a share, in the second quarter.

Gross profit rose 12% year-over-year to $1.66 billion. Core G&A increased 11% to $532 million. Adjusted pre-tax income was $641 million, up 13% from a year earlier.

Total revenue was $5.34 billion, up 17% from a year earlier. Advisory revenue was $2.87 billion, up 30% year-over-year. Total commission revenue was $1.25 billion. Asset-based revenue was $862 million. Service and fee revenue was $218 million. Transaction revenue was $79 million. Interest income, net, was $49 million. Other revenue was $12 million.

Total client assets were $2.56 trillion, up 11% from a year earlier. Advisory assets were $1.56 trillion, up 16% year-over-year, and accounted for 60.9% of total client assets, up from 58.2% a year earlier.

Organic net new assets were $29.1 billion, or 4.5% annualized growth, versus $23.1 billion and 4.0% annualized growth in the second quarter. Organic advisory net new assets were $33.1 billion. Organic brokerage net new assets were a $4.0 billion outflow, versus a $7.1 billion outflow in the prior quarter. Acquired net new assets were zero. Recruited assets were $24.1 billion, down 26% from a year earlier. Net new advisors were 122, versus 331 in the prior quarter.

Client cash balances were $56.6 billion, essentially unchanged from the prior quarter and up 1% from a year earlier, equal to 2.2% of total client assets.

Commonwealth Financial Network conversion remains on track for the fourth quarter of 2026. Asset retention is now expected to be approximately 83%, down from approximately 90% expected in the second-quarter release. Estimated run-rate EBITDA is now expected to be $415 million, down from $435 million.

Acquisition costs were $83 million, versus $49 million in the prior quarter. EBITDA was $781 million. Adjusted EBITDA was $864 million.

Corporate cash was $563 million. The leverage ratio was 1.93x. Share repurchases were $301 million and dividends paid were $24 million. The board declared a $0.30 a share dividend payable November 30, 2026.

Given performance to date, the company narrowed its 2026 Core G&A outlook range to $2,140 million to $2,160 million, including expenses related to Commonwealth, from $2,140 million to $2,165 million in the prior quarter.

Chief Executive Rich Steinmeier said the firm delivered improved organic growth, advanced preparation to onboard Commonwealth, and began rolling out its proprietary AI agent Cyan to advisors. President and Chief Financial Officer Matt Audette said the team delivered record adjusted earnings per share and that those efforts position the company to sustain momentum through year-end and into 2027.