LPL Financial Reports 23% Revenue Growth to $12.4 Billion for 2024

LPL Financial Holdings Inc. reported a strong financial performance for the year ended December 31, 2024, with total revenue reaching $12.4 billion, a 23% increase from $10.1 billion in 2023. The company achieved a net income of $1.1 billion, or $14.03 per diluted share, compared to $1.1 billion, or $13.69 per diluted share, in the previous year. This growth was driven by significant increases in both advisory and commission revenues, which rose by 32% and 29%, respectively. Advisory revenue alone amounted to $5.5 billion, while commission revenue totaled $3.3 billion.

The company experienced notable changes in its asset management metrics, with total advisory and brokerage assets served increasing to $1.7 trillion, up from $1.4 trillion in 2023. Net new assets also saw substantial growth, totaling $235.6 billion for the year, compared to $104.1 billion in 2023. This included net new advisory assets of $137.8 billion, a significant rise from $76.0 billion the previous year. The increase in assets was attributed to both organic growth and the successful integration of Atria Wealth Solutions, which LPL acquired in October 2024.

Strategically, LPL Financial has focused on expanding its market presence through acquisitions and partnerships. The acquisition of Atria Wealth Solutions, which supports approximately 2,200 advisors and manages around $110 billion in assets, is expected to enhance LPL's service offerings and advisor base. Additionally, the company completed the transition of Prudential Advisors to its platform, further solidifying its position in the wealth management sector. The company also refinanced its debt, entering into a new $1.0 billion Term Loan A facility, which is anticipated to improve its financial flexibility.

Operationally, LPL Financial reported a total advisor count of approximately 28,888, an increase from 22,660 in 2023. The average total assets per advisor rose to $60.3 million, reflecting the company's ability to attract and retain experienced advisors. The firm also reported a total employee headcount of around 9,000, with a commitment to diversity, as approximately 49% of employees self-identify as women and 40% as Black, Indigenous, or People of Color.

Looking ahead, LPL Financial expressed optimism about its growth trajectory, citing ongoing investments in technology and service enhancements to support its advisors. The company anticipates that the integration of Atria will yield additional revenue opportunities and operational efficiencies. However, it remains vigilant regarding potential market fluctuations and regulatory changes that could impact its business model. The firm is committed to maintaining its leadership position in the independent broker-dealer space while continuing to adapt to the evolving financial landscape.