LPL Financial Holdings Inc.LPLA
NasdaqGS•Financial Services•Capital Markets
LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at institutions in the United States. The company's brokerage offerings include variable and fixed annuities, mutual funds, equities, fixed income, alternative investments, retirement and 529 education savings plans, and insurance; and client cash programs consist of Federal Deposit Insurance Corporation (FDIC) insured bank sweep vehicles, and a client cash and money market account. It also provides fee-based platforms that provide access to mutual funds, exchange traded funds, stocks, bonds, certain options strategies, unit investment trusts, institutional money managers, and no-load multi-manager variable annuities. In addition, the company offers retirement solutions for commission and fee-based services that allow advisors to provide brokerage services, consultation, and advice to retirement plan sponsors. Further, it provides other services comprising tools and services that enable advisors to maintain and grow their practices; trust, investment management oversight, and custodial services for estates and families; an advisor-facing trading and portfolio rebalancing platform; insurance brokerage general agency services; and technology products, including proposal generation, investment analytics, and portfolio modeling. The company was formerly known as LPL Investment Holdings Inc. and changed its name to LPL Financial Holdings Inc. in June 2012. LPL Financial Holdings Inc. was founded in 1989 and is based in San Diego, California.
LPL Financial Holdings Inc. (LPLA) reported trailing twelve months revenue of $18.26B as of March 2026, a 38.1% increase year-over-year. Quarterly revenue reached $4.94B, reflecting continued top-line momentum.
LPL Financial Holdings Inc. generated $900.86M in TTM net income, with quarterly EBITDA of $590.34M. The operating margin contracted from 11.4% to 9.8%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (9.8%) and net margin (7.2%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 8.7% a year ago, reflecting increased costs or interest expense.
LPLA trades at a P/E of 26.7x (in line with broad market averages) and a P/S of 1.3x. The price-to-book ratio of 4.2x reflects a moderate premium to book value.
The company generated $124.64M in free cash flow over the trailing twelve months, a 43.4% decrease year-over-year, indicating cash generation ability. The balance sheet shows $18.84B in total assets with $7.18B in long-term debt against $5.69B in stockholders equity for a debt-to-equity ratio of 1.3. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging 8.8%. The business may lack pricing power or face rising costs.'
Consistently high ROE averaging 27.1% suggests a durable competitive advantage and efficient capital allocation.
Only 5 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
TTM revenue has grown consistently (7 of 7 quarters up), with ~67.0% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 38.6% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF consistently trails net income (avg 8.1x) — earnings may be inflated by non-cash items or aggressive accounting.
D/E ratio is 1.3 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.
Shares outstanding increased 7.2% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation