# LPL Financial Holdings (LPLA.US)

Canonical: https://gigainvestors.com/s/LPLA

Analysis as of: 2026-10-16T07:29:55.730Z. Financial observations: FY2005–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $327.56 per share; close as of 2026-10-15.

Estimated value: low $289.39 per share, central $413.39 per share, high $485.61 per share. Buy at or below the central value $413.39 per share. Valuation as of 2026-10-16T07:29:55.730Z; scenarios are not confidence intervals.

Expected annual return: 11.7% at the stated quote. About 11.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.10×

- FY2017: 0.12×

- FY2018: 0.14×

- FY2019: 0.16×

- FY2020: 0.12×

- FY2021: 0.09×

- FY2022: 0.14×

- FY2023: 0.16×

- FY2024: 0.13×

- FY2025: 0.13×

### moat: pass

- ROIC, median of available years: 25.6%

- ROIC, second-lowest year: 22.9%

- Typical minus recent gross margin: 0.8 pp

- Typical gross margin (annual median): 26.4%

- Recent gross margin (lower of latest and 3-year median): 25.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.3%

- ROIC including acquisitions, ten-year median: 13.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 23.7%

- FY2017: 23.0%

- FY2018: 30.9%

- FY2019: 42.5%

- FY2020: 27.4%

- FY2021: 22.9%

- FY2022: 33.0%

- FY2023: 33.0%

- FY2024: 23.1%

- FY2025: 19.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.4B

- Net income, five-year total: $4.3B

- Return on incremental invested capital: 61.1%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 1.8 pp

- Working capital / revenue, final three-year average: 8.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.03×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.07×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 23.7% vs 23.1%

- Per-share earnings: 2.13 to 13.69 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.0%

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: $25B

- Cumulative retained earnings: $5.3B

- Diluted shares, 10-year annual growth: -2.0%

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 26.2%

- Per-share value change: $11.56

- Per-share value, starting three-year median: $2.13

- Per-share value, ending three-year median: $13.69

- Buybacks concentrated in cheaper years (correlation): 0.83

- Average buyback yield: 2.9%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $3.8B

- Cumulative net income, 10 years: $6.2B

- ROIC, first three-year median: 23.7%

- ROIC, last three-year median: 23.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.13

- FY2017: $2.59

- FY2018: $4.85

- FY2019: $6.62

- FY2020: $5.86

- FY2021: $5.63

- FY2022: $10.40

- FY2023: $13.69

- FY2024: $14.03

- FY2025: $10.92

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 7.0%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -0.49×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.12×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.7%

- FY2017: -3.8%

- FY2018: -2.6%

- FY2019: -1.1%

- FY2020: -4.9%

- FY2021: 0.1%

- FY2022: -11.6%

- FY2023: 5.3%

- FY2024: 5.9%

- FY2025: 7.0%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Steven Romick](https://gigainvestors.com/FPA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Stephen Mandel](https://gigainvestors.com/LPC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 3.6% a year for ten years · sales +37.2%

Story as of 2026-10-16T09:59:05.669Z; price observation 2026-10-15.

Price needs cash profits to grow 3.6% a year for ten years

- 2025-05-09: LPL Financial's Q1 Earnings Beat on Higher Revenues, Expenses Soar ([finance.yahoo.com](https://finance.yahoo.com/news/lpl-financials-q1-earnings-beat-120200051.html))

- 2025-07-31: LPL Financial Earnings Miss Estimates as Company Prepares to Close Commonwealth Acquisition ([finance.yahoo.com](https://finance.yahoo.com/m/cb0dc3ec-7539-3263-949e-94c159f87d4d/lpl-financial-earnings-miss.html))

- 2025-10-31: LPL Financial's Q3 Earnings Beat on Higher Revenues, Stock Up 1.3% ([finance.yahoo.com](https://finance.yahoo.com/news/lpl-financials-q3-earnings-beat-150900695.html))

- 2026-04-30: LPL Financial Beats Earnings Estimates, Expects to Hit Commonwealth Retention Goal ([finance.yahoo.com](https://finance.yahoo.com/m/5b4b3d64-8a3c-3eb8-b58d-4fe2107bbc40/lpl-financial-beats-earnings.html))

- 2026-07-30: LPL Financial’s (NASDAQ:LPLA) Q2 CY2026 Sales Beat Estimates, Stock Soars ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/lpl-financial-nasdaq-lpla-q2-213136382.html))

- 2026-08-12: LPL Financial (LPLA) Rolls Out Wider Wealth Platform Access And AI Tools ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/lpl-financial-lpla-rolls-wider-151025260.html))

### Sales · FY2024–2025

sales +37.2%; source https://www.sec.gov/Archives/edgar/data/1397911/000162828026010705/lpla-20251231.htm; observed 2026-02-23.

- FY2016: $4.0B 

- FY2017: $4.3B 

- FY2018: $5.2B 

- FY2019: $5.6B 

- FY2020: $5.9B 

- FY2021: $7.7B 

- FY2022: $8.6B 

- FY2023: $10B 

- FY2024: $12B 

- FY2025: $17B 

### Gross margin · FY2025

gross margin 25.6%; source https://www.sec.gov/Archives/edgar/data/1397911/000162828026010705/lpla-20251231.htm; observed 2026-02-23.

- FY2016: 23.7% 

- FY2017: 25.6% 

- FY2018: 27.8% 

- FY2019: 28.7% 

- FY2020: 25.4% 

- FY2021: 22.2% 

- FY2022: 27.5% 

- FY2023: 30.4% 

- FY2024: 27.2% 

- FY2025: 25.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in capital markets; annual sales are USD 17 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1397911/000162828026010705/lpla-20251231.htm#000162828026010705 (filed 2026-02-23); FY2025: revenue 16989479000; grossProfit 4347276000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 25.6% to 30.4% during 2023–25; it earns 25.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2023: grossProfit / revenue = 30.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2024: grossProfit / revenue = 27.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1397911/000162828026010705/lpla-20251231.htm (filed 2026-02-23); FY2025: grossProfit / revenue = 25.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); 10-year return on capital observations [[2016,0.23674831726791423],[2017,0.2304372346833081],[2018,0.3091531011148783],[2019,0.4251226918042855],[2020,0.27435505119716713],[2021,0.22913504064835064],[2022,0.3300535579448207],[2023,0.3304709277827318],[2024,0.23053295244440475],[2025,0.19428306154309224]]; median 0.2555516842325407. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 61.1% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2016: growth capex 0; upkeep 127646000; owner earnings 178248000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2017: growth capex 16297700.706494272; upkeep 255933299.29350573; cash acquisitions 160321000; owner earnings 105293700.70649427. Growth capex plus acquisitions / owner earnings = 1.6773909504692794.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2018: growth capex 12708000; upkeep 147908000; cash acquisitions 27928000; owner earnings 439459000. Growth capex plus acquisitions / owner earnings = 0.09246823935793783.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2019: growth capex 0; upkeep 156389000; cash acquisitions 25853000; owner earnings 564604000. Growth capex plus acquisitions / owner earnings = 0.045789615376440836.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2020: growth capex 0; upkeep 155532000; cash acquisitions 30556000; owner earnings 494198000. Growth capex plus acquisitions / owner earnings = 0.061829469160134196.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2021: growth capex 0; upkeep 215987000; cash acquisitions 245913000; owner earnings 474567000. Growth capex plus acquisitions / owner earnings = 0.5181839445220591.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2022: growth capex 19219000; upkeep 287377000; cash acquisitions 56458000; owner earnings 845702000. Growth capex plus acquisitions / owner earnings = 0.08948423912914952.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2023: growth capex 49081000; upkeep 354205000; cash acquisitions 453475000; owner earnings 1066250000. Growth capex plus acquisitions / owner earnings = 0.4713303634232122.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2024: growth capex 118770000; upkeep 443761000; cash acquisitions 1020221000; owner earnings 1058616000. Growth capex plus acquisitions / owner earnings = 1.0759246034444974.

- Source: https://www.sec.gov/Archives/edgar/data/1397911/000162828026010705/lpla-20251231.htm (filed 2026-02-23); FY2025: growth capex 0; upkeep 570376000; cash acquisitions 1787592000; owner earnings 922660000. Growth capex plus acquisitions / owner earnings = 1.9374330739383956.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); Incremental return on capital 0.6114695667832938, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); Dividend observations: [[2016,89081000],[2017,90273000],[2018,88360000],[2019,82597000],[2020,79097000],[2021,80095000],[2022,79833000],[2023,92190000],[2024,89727000],[2025,94411000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1397911/000162828026010705/lpla-20251231.htm (filed 2026-02-23); FY2025: cash repurchases 133488000 USD.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LPLA.US SharesStats.PercentInsiders = 0.398 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 3.6% yearly over ten years; actual growth was 18.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); Ten-year compound average after fade. Initial solved rate 0.038026526550720585. Price 327.56; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.14742834707499 → FY2025 11.670229316603635. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $30.96 per share

- 2016-11: $41.19 per share

- 2016-12: $35.21 per share

- 2017-01: $39.30 per share

- 2017-02: $39.54 per share

- 2017-03: $39.83 per share

- 2017-04: $42.04 per share

- 2017-05: $38.93 per share

- 2017-06: $42.46 per share

- 2017-07: $45.76 per share

- 2017-08: $46.84 per share

- 2017-09: $51.57 per share

- 2017-10: $49.61 per share

- 2017-11: $51.84 per share

- 2017-12: $57.14 per share

- 2018-01: $59.66 per share

- 2018-02: $64.27 per share

- 2018-03: $61.07 per share

- 2018-04: $60.57 per share

- 2018-05: $68.77 per share

- 2018-06: $65.54 per share

- 2018-07: $66.29 per share

- 2018-08: $66.24 per share

- 2018-09: $64.51 per share

- 2018-10: $61.60 per share

- 2018-11: $64.17 per share

- 2018-12: $61.08 per share

- 2019-01: $70.37 per share

- 2019-02: $75.41 per share

- 2019-03: $69.65 per share

- 2019-04: $74.09 per share

- 2019-05: $80.22 per share

- 2019-06: $81.57 per share

- 2019-07: $83.87 per share

- 2019-08: $74.95 per share

- 2019-09: $81.90 per share

- 2019-10: $80.84 per share

- 2019-11: $92.35 per share

- 2019-12: $92.25 per share

- 2020-01: $92.13 per share

- 2020-02: $79.48 per share

- 2020-03: $54.43 per share

- 2020-04: $60.22 per share

- 2020-05: $71.39 per share

- 2020-06: $78.40 per share

- 2020-07: $79.02 per share

- 2020-08: $82.16 per share

- 2020-09: $76.67 per share

- 2020-10: $79.93 per share

- 2020-11: $90.77 per share

- 2020-12: $104.22 per share

- 2021-01: $108.34 per share

- 2021-02: $131.54 per share

- 2021-03: $142.16 per share

- 2021-04: $156.70 per share

- 2021-05: $147.88 per share

- 2021-06: $134.98 per share

- 2021-07: $141.04 per share

- 2021-08: $147.85 per share

- 2021-09: $156.76 per share

- 2021-10: $164.02 per share

- 2021-11: $157.61 per share

- 2021-12: $160.09 per share

- 2022-01: $172.32 per share

- 2022-02: $180.95 per share

- 2022-03: $182.68 per share

- 2022-04: $187.87 per share

- 2022-05: $196.19 per share

- 2022-06: $184.48 per share

- 2022-07: $209.92 per share

- 2022-08: $221.33 per share

- 2022-09: $218.48 per share

- 2022-10: $255.65 per share

- 2022-11: $236.71 per share

- 2022-12: $216.17 per share

- 2023-01: $237.12 per share

- 2023-02: $249.56 per share

- 2023-03: $202.40 per share

- 2023-04: $208.84 per share

- 2023-05: $194.78 per share

- 2023-06: $217.43 per share

- 2023-07: $229.36 per share

- 2023-08: $230.59 per share

- 2023-09: $237.65 per share

- 2023-10: $224.52 per share

- 2023-11: $222.30 per share

- 2023-12: $227.62 per share

- 2024-01: $239.19 per share

- 2024-02: $267.89 per share

- 2024-03: $264.20 per share

- 2024-04: $269.13 per share

- 2024-05: $286.21 per share

- 2024-06: $279.30 per share

- 2024-07: $221.52 per share

- 2024-08: $224.34 per share

- 2024-09: $232.63 per share

- 2024-10: $282.18 per share

- 2024-11: $325.15 per share

- 2024-12: $326.51 per share

- 2025-01: $366.89 per share

- 2025-02: $371.74 per share

- 2025-03: $327.14 per share

- 2025-04: $319.79 per share

- 2025-05: $387.16 per share

- 2025-06: $374.97 per share

- 2025-07: $395.73 per share

- 2025-08: $364.48 per share

- 2025-09: $332.69 per share

- 2025-10: $377.31 per share

- 2025-11: $356.04 per share

- 2025-12: $357.17 per share

- 2026-01: $364.50 per share

- 2026-02: $300.38 per share

- 2026-03: $300.83 per share

- 2026-04: $334.13 per share

- 2026-05: $273.77 per share

- 2026-06: $281.68 per share

- 2026-07: $353.70 per share

- 2026-08: $370.14 per share

- 2026-09: $305.80 per share

- 2026-10: $327.56 per share

## Annual estimated value (USD per share)

- FY2016: low $22.22 per share, central $25.28 per share, high $29.36 per share

- FY2017: low $22.36 per share, central $25.45 per share, high $29.55 per share

- FY2018: low $30.87 per share, central $39.59 per share, high $46.26 per share

- FY2019: low $43.93 per share, central $62.74 per share, high $73.70 per share

- FY2020: low $66.93 per share, central $76.16 per share, high $88.45 per share

- FY2021: low $108.08 per share, central $154.39 per share, high $181.36 per share

- FY2022: low $121.84 per share, central $174.05 per share, high $204.46 per share

- FY2023: low $138.76 per share, central $157.90 per share, high $183.37 per share

- FY2024: low $190.81 per share, central $272.57 per share, high $320.18 per share

- FY2025: low $249.71 per share, central $356.72 per share, high $419.03 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1397911/000162828026010705/lpla-20251231.htm); period 2025-12-31, filed 2026-02-23.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.