LPL Financial Delivers Strong Q1 Results, Accelerates Progress Towards Vision of Being Best Firm in Wealth Management
First Quarter 2025 Earnings Conference Call Recap
LPL Financial Holdings Inc. has reported a strong start to the year, with another quarter of business performance that delivered excellent financial results. During a recent conference call, Chief Executive Officer Rich Steinmeier highlighted the company's achievement, stating "it's been a strong start to the year for LPL" despite operating in a challenging environment.
Notably, the company posted record adjusted earnings per share (EPS) of $5.15 in the first quarter, with total assets increasing to a new quarterly high of $1.8 trillion. This was driven by record organic net new assets of $71 billion, representing a 16% annualized growth rate. Steinmeier emphasized that this strong performance demonstrates the value of professional advice and highlights the importance of supporting advisers.
The company's strategic plan focuses on three key priorities: pursuing novel and differentiated strategies to enable sustained success, creating an extraordinary employee experience, and leading with operational excellence through increased intentionality and rigor. As part of its growth initiatives, LPL Financial delivered a few notable highlights in Q1, including recruited assets totaling $39 billion over the trailing 12 months, representing a record $167 billion. This includes $20 billion added in the traditional independent market, expanding on already industry-leading capture rates.
The company also made progress with its expanded affiliation models, recruiting roughly $2 billion in assets and adding approximately $1 billion of assets in the traditional bank and credit union market. Furthermore, LPL Financial onboarded the Retail Wealth Management business of Wintrust Financial and completed the transition of Prudential advisers onto their platform during Q1.
Steinmeier highlighted that the company's momentum continued into Q2, with an April announcement that First Horizon would onboard its wealth management business to their institution services platform. Additionally, overall asset retention remained industry-leading at 98% for both the first quarter and over the last 12 months.
