LPL Financial Holdings Inc. Files Q2 2024 10-Q

TL;DR

LPL Financial's Q2 10-Q is in: check financials for the brokerage giant.

AI Summary

LPL Financial Holdings Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including its operations in the security and commodity brokers, dealers, exchanges, and services sector. Key financial data and operational metrics for the second quarter and first half of 2024 are presented.

Why It Matters

This filing provides investors and analysts with crucial financial details about LPL Financial's performance, impacting investment decisions and market sentiment for the company.

Risk Assessment

Risk Level: medium — As a financial services company, LPL Financial is subject to market volatility, regulatory changes, and economic downturns, which can significantly impact its performance.

Key Numbers

• 2024 Q2 — Reporting Period (Financial results for the second quarter of 2024.)
• 20240630 — Fiscal Year End (Indicates the end of the fiscal year for reporting purposes.)

Key Players & Entities

• LPL Financial Holdings Inc. (company) — Filer
• 20240630 (date) — Period of Report
• 20240730 (date) — Filing Date
• San Diego, CA (location) — Business Address
• LPL Investment Holdings Inc. (company) — Former Company Name

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock - $0.001 par value per share LPLA The Nasdaq Gl
• $1.0 billion — unts. Significant Events Completed a $1.0 billion debt offering On May 20, 2024, the Com
• $500.0 million — pany completed the issuance and sale of $500.0 million in aggregate principal amount of 5.700%
• $243.8 m — quarter of 2024 included net incom e of $243.8 million, or $3.23 per diluted share, whic
• $3.23 — luded net incom e of $243.8 million, or $3.23 per diluted share, which compares to $2
• $285.5 million — 23 per diluted share, which compares to $285.5 million , or $3.65 per diluted share, for the s
• $3.65 — , which compares to $285.5 million , or $3.65 per diluted share, for the second quart
• $1.5 — visory and brokerage assets served were $1.5 trillion at June 30, 2024, compared to
• $1.2 — trillion at June 30, 2024, compared to $1.2 trillion at June 30, 2023 . Total net n
• $34.0 billion — e 30, 2023 . Total net new assets wer e $34.0 billion fo r the three months ended June 30, 20
• $21.7 billion — onths ended June 30, 2024 , compared to $21.7 billion for the same period in 2023 . Net new
• $26.8 billion — n 2023 . Net new advisory assets wer e $26.8 billion fo r the three months ended June 30, 20
• $18.1 billion — months ended June 30, 2024, compared to $18.1 billion for the same period in 2023. Advisory a
• $829.1 b — me period in 2023. Advisory assets were $829.1 billion, or 55.4% of total advisory a nd
• $661.6 billion — s served, at June 30, 2024, up 25% from $661.6 billion at June 30, 2023. Net new brokerage as

Filing Documents

• lpla-20240630.htm (10-Q) — 2034KB
• exhibit10120240630.htm (EX-10.1) — 14KB
• exhibit10220240630.htm (EX-10.2) — 72KB
• exhibit22120240630.htm (EX-22.1) — 1KB
• exhibit31120240630.htm (EX-31.1) — 11KB
• exhibit31220240630.htm (EX-31.2) — 11KB
• exhibit32120240630.htm (EX-32.1) — 6KB
• exhibit32220240630.htm (EX-32.2) — 6KB
• 0001397911-24-000109.txt ( ) — 10033KB
• lpla-20240630.xsd (EX-101.SCH) — 64KB
• lpla-20240630_cal.xml (EX-101.CAL) — 78KB
• lpla-20240630_def.xml (EX-101.DEF) — 373KB
• lpla-20240630_lab.xml (EX-101.LAB) — 798KB
• lpla-20240630_pre.xml (EX-101.PRE) — 573KB
• lpla-20240630_htm.xml (XML) — 1661KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 1 1. Financial Statements (unaudited) 19 Condensed Consolidated Statements of Income (unaudited) 19 Condensed Consolidated Statements of Financial Condition (unaudited) 20 Condensed Consolidated Statements of Stockholders' Equity (unaudited) 21 Condensed Consolidated Statements of Cash Flows (unaudited) 22 Notes to Condensed Consolidated Financial Statements (unaudited) 24 Note 1 - Or ganization and Description of the Company 24 Note 2 - S ummary of Significant Accounting Policies 24 Note 3 - R evenue 25 Note 4 - Acquisitions 26 Note 5 - F air Value Measurements 28 Note 6 - Investment Securities 34 Note 7 - G oodwill and Other Intangibles, Net 34 Note 8 - Other Assets and Other Liabilities 36 Note 9 - Corporate Debt and Other Borrowings, Net 37 Note 10 - Commitments and Contingencies 39 Note 11 - S tockholders' Equity 41 Note 12 - S hare-based Compensation 41 Note 13 - E arnings per Share 43 Note 14 - N et Capital and Regulatory Requirements 43 Note 15 - Fi nancial Instruments with Off-Balance Sheet Credit Risk and Concentrations of Credit Risk 44 Note 16 - Subsequent Events 45 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 1 Business Overview 1 Our Sources of Revenue 1 Significant Events 1 Executive Summary 2 Key Performance Metrics 3 Legal and Regulatory Matters 6 Economic Overview and Impact of Financial Market Events 7 Results of Operations 8 Liquidity and Capital Resources 12 Debt and Related Covenants 16 Contractual Obligations 17 Risk Management 17 Critical Accounting Policies and Estimates 18 3. Quantitative and Qualitative Disclosures About Market Risk 46 4. Controls and Procedures 48

— OTHER INFORMATION

PART II — OTHER INFORMATION 48 1. Legal Proceedings 48 1A. Risk Factors 48 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 3. Defaults Upon Senior Securities 48 4. Mine Safety Disclosures 48 5. Other Information 49 6. Exhibits 49

SIGNATURES

SIGNATURES 51 i Table of Contents WHERE YOU CAN FIND MORE INFORMATION We file annual, quarterly and current reports, proxy statements and other information required by the Securities Exchange Act of 1934, as amended (the "Exchange Act " ), with the Securities and Exchange Commission ("SEC"). Our SEC filings are available to the public on the SEC's website at sec.gov . We post the following filings to our website at lpl.com as soon as reasonably practicable after they are electronically filed with or furnished to the SEC: our annual reports on Form 10-K, our proxy statements, our quarterly reports on Form 10-Q, our current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act. Copies of all such filings are available free of charge by request via email (investor.relations@lplfinancial.com), telephone ((617) 897-4574) or mail (LPL Financial Investor Relations at 1055 LPL Way, Fort Mill, SC 29715). The information contained or incorporated on our website is not a part of this Quarterly Report on Form 10-Q. We may use our website as a means of disclosing material information and for complying with our disclosure obligations under Regulation Fair Disclosure promulgated by the SEC. These disclosures are included on our website in the "Investor Relations" or "Press Releases" sections. Accordingly, investors should monitor these portions of our website in addition to following the Company's press releases, SEC filings, public conference calls and webcasts. When we use the terms "LPLFH", "LPL", "we", "us", "our" and "the Company", we mean LPL Financial Holdings Inc., a Delaware corporation, and its consolidated subsidiaries, taken as a whole, unless the context otherwise indicates. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Business Overview LPL serves the advisor-mediated marketplace as the nation's largest independent broker-dealer, a leading investment advisory firm and a top custodian. We serve more than 23,000 financial advisors, including advisors at approximately 1,000 institutions and at approximately 580 registered investment advisor ("RIA") firms nationwide, providing the front-, middle- and back-office support our advisors need. Through our comprehensive platform, we offer integrated technology solutions; brokerage and advisory platforms; clearing, compliance, business and planning and advice services; consultative practice management programs and training; and in-house research to help our advisors deliver advice to their clients and run successful businesses. We are steadfast in our commitment to the advisor-mediated model and the belief that investors deserve access to personalized guidance from a financial advisor. We believe advisors should have the freedom to choose the business model, services and technology they need and to manage their client relationships. We believe investors achieve better outcomes when working with a financial advisor, and we strive to make it easy for advisors to do what is best for their clients. We believe that we are the only company that offers the unique combination of an integrated technology platform, comprehensive self-clearing services and access to a wide range of curated non-proprietary products all delivered in an environment unencumbered by conflicts from product manufacturing, underwriting and market-making. Our Sources of Revenue Our revenue is derived primarily from fees and commissions from products and advisory services offered by our advisors to their clients, a substantial portion of which we pay out to our advisors, as well as fees we receive from our advisors for the use of our technology, custody, clearing, trust and repo

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View this 10-Q filing on SEC EDGAR