Key Financial Results Net Income was $289 million, translating to diluted earnings per share ("EPS") of $3.83, down 10% from a year ago Adjusted EPS* decreased 6% year-over-year to $4.21 Gross profit* increased 5% year-over-year to $1,066 million Core G&A* increased 11% year-over-year to $364 million Adjusted EBITDA* decreased 5% year-over-year to $541 million Key Business Results Total advisory and brokerage assets increased 23% year-over-year to $1.44 trillion Advisory assets increased 28% year-over-year to $793 billion Advisory assets as a percentage of total assets increased to 55.0%, up from 52.8% a year ago Total organic net new assets were $17 billion, representing 5% annualized growth Organic net new advisory assets were $16 billion, representing 9% annualized growth Recruited assets(1) were $20 billion Recruited assets over the trailing twelve months were $87 billion. Prior to large institutions, recruited assets over the trailing twelve months were $75 billion, up approximately 57% from a year ago. Advisor count(2) was 22,884, up 224 sequentially and 1,363 year-over-year Total client cash balances were $46 billion, a decrease of $2 billion sequentially and $8 billion year-over-year Client cash balances as a percentage of total assets were 3.2%, down from 3.6% in the prior quarter and down from 4.6% a year ago Key Capital and Liquidity Results Corporate cash(3) was $311 million Leverage ratio(4) was 1.65x Share repurchases were $70.0 million and dividends paid were $22.4 million *See the Non-GAAP Financial Measures section and the endnotes to this release for further details about these non-GAAP financial measures Key Updates Atria Wealth Solutions, Inc. ("Atria"): Announced a definitive purchase agreement to acquire Atria, a wealth management solutions holding company. Atria supports ~2,400 advisors and ~150 banks and credit unions, managing ~$100 billion of brokerage and advisory assets. The Company expects to close the transaction in the second half of 2024, subject to receipt of regulatory approval and other closing conditions. Conversion is expected to be completed in mid-2025. Wintrust Financial Corporation: Announced an agreement with Wintrust Financial Corporation to transition support of the wealth management business of Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, "Wintrust") to LPL's Institution Services platform. Wintrust supports ~85 financial advisors who collectively serve ~$16 billion of brokerage and advisory assets, and is expected to onboard in the first quarter of 2025. Crown Capital Securities, L.P. ("Crown Capital"): In April 2024, completed the acquisition of the wealth management business of Crown Capital, a firm with ~125 advisors who collectively serve ~$5B of brokerage and advisory assets. Liquidity & Succession: Deployed approximately $10 million of capital to close two deals, and signed our first liquidity & succession agreement with an external practice. SAN DIEGO, April 30, 2024 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (NASDAQ:LPLA) (the "Company") today announced results for its first quarter ended March 31, 2024, reporting net income of $289 million, or $3.83 per share. This compares with $339 million, or $4.24 per share, in the first quarter of 2023 and $218 million, or $2.85 per share, in the prior quarter. "We remain steadfast in our mission of taking care of our advisors, so they can take of their clients," said Dan Arnold, President and CEO. "Our commitment to our advisors is reflected in their continued successes, which contributed to another quarter of solid business results. As we look ahead, we will continue to invest to enhance the appeal of our model and make progress on our vision of becoming the leader across the advisor-centered marketplace." "The first quarter of 2024 was marked by continued business and financial strength," said Matt Audette, CFO and Head of Business Operations. "We continued to grow assets organically in both our traditional and new markets, entered into an agreement to acquire Atria Wealth Solutions, continued to build momentum in our Liquidity & Succession solution, and are preparing to onboard the wealth management businesses of Prudential Financial and Wintrust Financial. We are excited about the opportunities ahead and look forward to continuing to serve our advisors, invest in our industry-leading value proposition, and create long-term shareholder value." Dividend Declaration The Company's Board of Directors declared a $0.30 per share dividend to be paid on June 4, 2024 to all stockholders of record as of May 21, 2024. Conference Call and Additional Information The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Tuesday, April 30, 2024. The conference call will be available for replay at investor.lpl.com/events. Contacts Investor Media About LPL Financial LPL Financial Holdings Inc. (NASDAQ:LPLA) was founded on the principle that the firm should work for advisors and institutions, and not the other way around. Today, LPL is a leader in the markets we serve(5), serving nearly 23,000 financial advisors, including advisors at approximately 1,100 institutions and at approximately 570 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-mediated model and the belief that Americans deserve access to personalized guidance from a financial professional. At LPL, independence means that advisors and institution leaders have the freedom they deserve to choose the business model, services, and technology resources that allow them to run a thriving business. They have the flexibility to do business their way. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors and institutions, so they can take care of their clients. Securities and Advisory services offered through LPL Financial LLC ("LPL Financial"), a registered investment advisor. Member FINRA/SIPC. LPL Financial and its affiliated companies provide financial services only from the United States. 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. 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 amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets; the Company's future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company's core G&A expenses; and future capabilities, 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 April 30, 2024 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: the failure to satisfy the closing conditions applicable to the Company's purchase agreement with Atria, or strategic relationship agreements with Prudential Financial, Inc. ("Prudential") and Wintrust, including regulatory approvals; 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 that could make it more difficult to maintain 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 market financial products and services effectively; whether the 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; 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 settling and remediating issues related to regulatory matters or legal proceedings, including actual costs of reimbursing customers for losses in excess of our reserves; the negotiation of definitive documentation in connection with the settlement of the industry-wide civil investigation into compliance with records preservation requirements for business-related electronic communications stored on personal devices applicable to broker-dealer firms and investment advisors; 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; 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 facility and LPL Financial's committed revolving credit facility, 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 Prudential and Wintrust 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       March 31,   December 31,       March 31,         2024       2023     Change     2023     Change REVENUE           Advisory $ 1,199,811     $ 1,085,497       11 %   $ 954,057       26 % Commission:           Sales-based   385,235       355,958       8 %     286,072       35 % Trailing   361,211       326,454       11 %     317,653       14 % Total commission   746,446       682,412       9 %     603,725       24 % Asset-based:           Client cash   352,382       352,661       — %     418,275       (16 %) Other asset-based   248,339       228,473       9 %     203,473       22 % Total asset-based   600,721       581,134       3 %     621,748       (3 %) Service and fee   132,172       130,680       1 %     118,987       11 % Transaction   57,258       53,858       6 %     48,935       17 % Interest income, net   43,525       43,312       — %     37,358       17 % Other   52,660       66,936       (21 %)     33,022       59 % Total revenue   2,832,593       2,643,829       7 %     2,417,832       17 % EXPENSE           Advisory and commission   1,733,487       1,607,978       8 %     1,370,634       26 % Compensation and benefits   274,369       270,709       1 %     233,533       17 % Promotional   126,619       126,800       — %     98,223       29 % Depreciation and amortization   67,158       67,936       (1 %)     56,054       20 % Occupancy and equipment   66,264       62,103       7 %     60,173       10 % Interest expense on borrowings   60,082       54,415       10 %     39,184       53 % Brokerage, clearing and exchange   30,532       25,917       18 %     26,126       17 % Amortization of other intangibles   29,552       28,618       3 %     24,092       23 % Communications and data processing   19,744       17,814       11 %     17,675       12 % Professional services   13,279       21,572       (38 %)     14,220       (7 %) Other   37,315       66,180       (44 %)     33,421       12 % Total expense   2,458,401       2,350,042       5 %     1,973,335       25 % INCOME BEFORE PROVISION FOR INCOME TAXES   374,192       293,787       27 %     444,497       (16 %) PROVISION FOR INCOME TAXES   85,428       76,232       12 %     105,613       (19 %) NET INCOME $ 288,764     $ 217,555       33 %   $ 338,884       (15 %) EARNINGS PER SHARE           Earnings per share, basic $ 3.87     $ 2.89       34 %   $ 4.30       (10 %) Earnings per share, diluted $ 3.83     $ 2.85       34 %   $ 4.24       (10 %) Weighted-average shares outstanding, basic   74,562       75,228       (1 %)     78,750       (5 %) Weighted-average shares outstanding, diluted   75,463       76,240       (1 %)     79,974       (6 %) LPL Financial Holdings Inc.Condensed Consolidated Statements of Financial Condition(In thousands, except share data)(Unaudited)     March 31, 2024   December 31, 2023 ASSETS Cash and equivalents $ 1,102,270     $ 465,671   Cash and equivalents segregated under federal or other regulations   1,610,996       2,007,312   Restricted cash   114,006       108,180   Receivables from clients, net   591,503       588,585   Receivables from brokers, dealers and clearing organizations   103,236       50,069   Advisor loans, net   1,573,774       1,479,690   Other receivables, net   863,119       743,317   Investment securities ($43,428 and $76,088 at fair value at March 31, 2024 and December 31, 2023, respectively)   57,451       91,311   Property and equipment, net   987,308       933,091   Goodwill   1,840,972       1,856,648   Other intangibles, net   690,767       671,585   Other assets   1,482,137       1,390,021   Total assets $ 11,017,539     $ 10,385,480   LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES:     Client payables $ 2,486,605     $ 2,266,176   Payables to brokers, dealers and clearing organizations   190,419       163,337   Accrued advisory and commission expenses payable   232,084       216,541   Corporate debt and other borrowings, net   3,853,794       3,734,111   Accounts payable and accrued liabilities   369,244       485,963   Total liabilities   1,615,512       1,440,373       8,747,658       8,306,501   STOCKHOLDERS' EQUITY:     Common stock, $0.001 par value; 600,000,000 shares authorized; 130,704,541 shares and 130,233,328 shares issued at March 31, 2024 and December 31, 2023, respectively   131       130   Additional paid-in capital   2,016,666       1,987,684   Treasury stock, at cost — 55,998,999 shares and 55,576,970 shares at March 31, 2024 and December 31, 2023, respectively   (4,101,055 )     (3,993,949 ) Retained earnings   4,354,139       4,085,114   Total stockholders' equity   2,269,881       2,078,849   Total liabilities and stockholders' equity $ 11,017,539     $ 10,385,350   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   Q1 2024   Q4 2023   Change   Q1 2023   Change Gross Profit(6)           Advisory $ 1,199,811     $ 1,085,497       11 %   $ 954,057       26 % Trailing commissions   361,211       326,454       11 %     317,653       14 % Sales-based commissions   385,235       355,958       8 %     286,072       35 % Advisory fees and commissions   1,946,257       1,767,909       10 %     1,557,782       25 % Production-based payout(7)   (1,686,332 )     (1,548,540 )     9 %     (1,342,668 )     26 % Advisory fees and commissions, net of payout   259,925       219,369       18 %     215,114       21 % Client cash(8)   373,408       373,979       — %     438,612       (15 %) Other asset-based(9)   248,339       228,473       9 %     203,473       22 % Service and fee   132,172       130,680       1 %     118,987       11 % Transaction   57,258       53,858       6 %     48,935       17 % Interest income, net(10)   22,482       21,975       2 %     17,015       32 % Other revenue(11)   3,382       4,636       (27 %)     3,945       (14 %) Total net advisory fees and commissions and attachment revenue   1,096,966       1,032,970       6 %     1,046,081       5 % Brokerage, clearing and exchange expense   (30,532 )     (25,917 )     18 %     (26,126 )     17 % Gross Profit(6)   1,066,434       1,007,053       6 %     1,019,955       5 %                                     G&A Expense           Core G&A(12)   363,513       364,469       — %     326,177       11 % Regulatory charges   7,469       8,905       (16 %)     7,732       (3 %) Promotional (ongoing)(13)(14)   132,311       138,457       (4 %)     101,163       31 % Acquisition costs(14)   9,524       34,931       (73 %)     3,092     n/m Employee share-based compensation   22,633       15,535       46 %     17,964       26 % Total G&A   535,450       562,297       (5 %)     456,128       17 % EBITDA(15)   530,984       444,756       19 %     563,827       (6 %) Depreciation and amortization   67,158       67,936       (1 %)     56,054       20 % Amortization of other intangibles   29,552       28,618       3 %     24,092       23 % Interest expense on borrowings   60,082       54,415       10 %     39,184       53 % INCOME BEFORE PROVISION FOR INCOME TAXES   374,192       293,787       27 %     444,497       (16 %) PROVISION FOR INCOME TAXES   85,428       76,232       12 %     105,613       (19 %) NET INCOME $ 288,764     $ 217,555       33 %   $ 338,884       (15 %) Earnings per share, diluted $ 3.83     $ 2.85       34 %   $ 4.24       (10 %) Weighted-average shares outstanding, diluted   75,463       76,240