LPL Financial's Q2 Earnings Beat on Higher Revenues, Stock Jumps
Results benefited from robust revenue improvement, partly offset by higher expenses. LPLA recorded strong growth in brokerage and advisory assets, which acted as a tailwind.
After considering certain non-recurring items, net income was $273.2 million or $3.40 per share, up from $243.8 million or $3.23 per share in the prior-year quarter. Our estimate for net income was $254.6 million.
LPLA's Revenues Improve, Expenses Rise
Total net revenues were $3.84 billion, jumping 31% year over year. The top line beat the Zacks Consensus Estimate of $3.77 billion.
Total expenses surged 33% to $3.47 billion. The rise was due to an increase in all cost components except other expenses. Our estimate for total expenses was $3.42 billion.
As of June 30, 2025, LPL Financial's total brokerage and advisory assets were $1,919.2 billion, up 28%. Our estimate for the metric was $1,847.5 billion. In the reported quarter, total net new assets were $20.5 billion.
Total client cash balances rose 15% year over year to $50.6 billion.
LPLA's Balance Sheet Position Solid
As of June 30, 2025, total assets were $17.47 billion, up 25% on a sequential basis. As of the same date, cash and cash equivalents totaled $4.19 billion, up from $1.23 billion in the last quarter.
Total stockholders' equity was $5.07 billion as of June 30, 2025, up 62% sequentially.
Our View on LPL Financial
LPL Financial's recruiting efforts and solid advisor productivity will likely continue aiding advisory revenues. Strategic acquisitions and a strong balance sheet will support financials. However, rising expenses and uncertainty regarding capital markets are likely to adversely impact commission revenues.
Currently, LPL Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performances of LPLA's Peers
Interactive Brokers ' IBKR second-quarter 2025 adjusted earnings per share of $1.51 surpassed the Zacks Consensus Estimate of $1.46. The bottom line grew 15.9% from the prior-year quarter.
Results primarily benefited from an increase in revenues as trading volume, customer accounts and daily average revenue trades increased in the quarter. As such, Interactive Brokers recorded a 27.1% jump in commissions.
Charles Schwab 's SCHW second-quarter 2025 adjusted earnings of $1.14 per share outpaced the Zacks Consensus Estimate of $1.09 and surged 56% year over year.
The solid performance of the asset management business and higher net interest revenues supported the results. Also, trading revenues, which soared 22.5% year over year, drove Schwab's quarterly performance.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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The Charles Schwab Corporation (SCHW): Free Stock Analysis Report
Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report
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