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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to
Commission File Number: 001-34963
LPL Financial Holdings Inc.
(Exact name of registrant as specified in its charter)
Delaware
20-3717839
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
4707 Executive Drive,
San Diego,
California
92121
(Address of principal executive offices) (Zip Code)
(800)
877-7210
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock - $0.001 par value per share
LPLA
The Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes   o No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes   o No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerxAccelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  
☐ Yes   x No
The number of shares of Common Stock, par value $0.001 per share, outstanding as of July 25, 2024 was 74,762,890.


TABLE OF CONTENTS
Page
ii
ii
Note 1 - Organization and Description of the Company
Note 2 - Summary of Significant Accounting Policies
Note 4 - Acquisitions
Note 5 - Fair Value Measurements
Note 6 - Investment Securities
Note 7 - Goodwill and Other Intangibles, Net
Note 9 - Corporate Debt and Other Borrowings, Net
Note 10 - Commitments and Contingencies
Note 11 - Stockholders’ Equity
Note 12 - Share-based Compensation
Note 13 - Earnings per Share
Note 14 - Net Capital and Regulatory Requirements
Note 15 - Financial Instruments with Off-Balance Sheet Credit Risk and Concentrations of Credit Risk

i
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
Statements in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of this Quarterly Report on Form 10-Q regarding:
•the Company’s future financial and operating results, outlook, growth, plans, business strategies, liquidity, future share repurchases and dividends, including statements regarding future resolution of regulatory matters, legal proceedings and related costs;
•a potential settlement with the SEC related to its civil investigation into the Company’s compliance with records preservation requirements for business-related electronic communications stored on personal devices in connection with an industry-wide review of off-platform communications (the “Off-Channel Investigation”);
•the Company’s future revenue and expense;
•future affiliation models and capabilities;
•the expected closing of the Company’s acquisition of Atria Wealth Solutions, Inc. (“Atria”);
•the expected transition and onboarding of advisors, institutions and assets in connection with our acquisition and recruitment activity;
•market and macroeconomic trends, including the effects of inflation and the interest rate environment;
•projected savings and anticipated improvements to the Company’s operating model, services and technologies as a result of its investments, initiatives, programs and acquisitions; and
•any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements.

These forward-looking statements reflect the Company’s expectations and objectives as of July 30, 2024. The words “anticipates,” “believes,” “expects,” “may,” “plans,” “predicts,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are not guarantees that expectations or objectives expressed or implied by the Company 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:
•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;
ii
•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 provide financial products and services effectively;
•whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
•difficulties and delays in onboarding the assets of acquired or recruited 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 the growth and profitability of the Company’s fee-based offerings and asset-based revenues;
•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 defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;
•the SEC’s approval of the proposed settlement agreement in connection with the Off-Channel Investigation;
•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 “Credit Agreement”), the committed revolving credit facility at our primary broker-dealer subsidiary, LPL Financial LLC (the “Broker-Dealer Revolving Credit Facility”), and the indentures governing the Company’s senior unsecured notes (the “Indentures”);
•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;
•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 Atria or Prudential Financial, Inc. (“Prudential”) will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
•the failure to satisfy the closing conditions applicable to the strategic relationship agreement between the Company and Prudential or the purchase agreement between the Company and Atria, including regulatory approval;
•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.

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 Quarterly Report on Form 10-Q, 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 Quarterly Report on Form 10-Q.

iii
GLOSSARY OF TERMS
Acquisition Costs: Expenses that include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions.
Adjusted EBITDA: A non-GAAP financial measure defined as EBITDA plus acquisition costs.
Adjusted EPS: A non-GAAP financial measure defined as Adjusted Net Income divided by the weighted average number of diluted shares outstanding for the applicable period.
Adjusted Net Income: A non-GAAP financial measure defined as net income plus the after-tax impact of amortization of other intangibles and acquisition costs.
Basis Point: One basis point equals 1/100th of 1%.
Core G&A: A non-GAAP financial measure defined as total expense excluding the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs.
Corporate Cash: A component of cash and equivalents that includes the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company’s Credit Agreement, which include LPL Financial LLC and The Private Trust Company, N.A., in excess of the capital requirements of the Company’s Credit Agreement, which, in the case of LPL Financial LLC is net capital in excess of 10% of its aggregate debits, or five times the net capital required in accordance with the Uniform Net Capital Rule, and (3) cash and equivalents held at non-regulated subsidiaries.
Credit Agreement: The Company’s amended and restated credit agreement.
Credit Agreement EBITDA: A non-GAAP financial measure defined in the Credit Agreement as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments and to include future expected cost savings, operating expense reductions or other synergies from certain transactions.
EBITDA: A non-GAAP financial measure defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles.
FINRA: The Financial Industry Regulatory Authority.
GAAP: Accounting principles generally accepted in the United States of America.
Gross Profit: A non-GAAP financial measure defined as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation.
Indentures: The indentures governing the Company’s senior unsecured notes.
Leverage Ratio: A financial metric from our Credit Agreement that is calculated by dividing Credit Agreement net debt, which equals consolidated total debt less Corporate Cash, by Credit Agreement EBITDA.
NFA: The National Futures Association.
OCC: The Office of the Comptroller of the Currency.
RIA: Registered investment advisor.
SEC: The U.S. Securities and Exchange Commission.
Uniform Net Capital Rule: Refers to Rule 15c3-1 under the Exchange Act, which specifies minimum capital requirements that are intended to ensure the general financial soundness and liquidity of broker-dealers.
iv
PART I — FINANCIAL INFORMATION
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 reporting platforms. We also generate asset-based revenue through our insured bank sweep vehicles, money market account balances and the access we provide to a variety of product providers with the following product lines:
• Alternative Investments
• Retirement Plan Products
• Annuities
• Separately Managed Accounts
• Exchange Traded Products
• Structured Products
• Insurance Based Products
• Unit Investment Trusts
• Mutual Funds
Under our self-clearing platform, we custody the majority of client assets invested in these financial products, for which we provide statements, transaction processing and ongoing account management. In return for these services, mutual funds, insurance companies, banks and other financial product sponsors pay us fees based on asset levels or number of accounts managed. We also earn interest from margin loans made to our advisors’ clients, cash and equivalents segregated under federal or other regulations, advisor repayable loans and operating cash, which is included in interest income, net in the condensed consolidated statements of income. A portion of our revenue is not asset-based or correlated with the equity financial markets.
We regularly review various aspects of our operations and service offerings, including our policies, procedures and platforms, in response to marketplace developments. We seek to continuously improve and enhance aspects of our operations and service offerings in order to position our advisors for long-term growth and to align with competitive and regulatory developments. For example, we regularly review the structure and fees of our products and services, including related disclosures, in the context of the changing regulatory environment and competitive landscape for advisory and brokerage accounts.
Significant Events
Completed a $1.0 billion debt offering
On May 20, 2024, the Company completed the issuance and sale of $500.0 million in aggregate principal amount of 5.700% senior unsecured notes due 2027 and $500.0 million in aggregate principal amount of 6.000% senior unsecured notes due 2034. See Note 9 - Corporate Debt and Other Borrowings, Net, within the notes to the condensed consolidated financial statements for further detail.

1
Executive Summary
Financial Highlights
Results for the second quarter of 2024 included net income of $243.8 million, or $3.23 per diluted share, which compares to $285.5 million, or $3.65 per diluted share, for the second quarter of 2023.
Asset Trends
Total advisory and brokerage assets served were $1.5 trillion at June 30, 2024, compared to $1.2 trillion at June 30, 2023. Total net new assets were $34.0 billion for the three months ended June 30, 2024, compared to $21.7 billion for the same period in 2023.
Net new advisory assets were $26.8 billion for the three months ended June 30, 2024, compared to $18.1 billion for the same period in 2023. Advisory assets were $829.1 billion, or 55.4% of total advisory and brokerage assets served, at June 30, 2024, up 25% from $661.6 billion at June 30, 2023.
Net new brokerage assets were $7.2 billion for the three months ended June 30, 2024, compared to $3.6 billion for the same period in 2023. Brokerage assets were $668.7 billion at June 30, 2024, up 16% from $578.6 billion at June 30, 2023.
Gross Profit Trend
Gross profit, a non-GAAP financial measure, was $1.1 billion for the three months ended June 30, 2024, an increase of 9% from $989.8 million for the three months ended June 30, 2023. See the “Key Performance Metrics” section for additional information on gross profit.
Common Stock Dividends
During the three months ended June 30, 2024, we paid stockholders cash dividends of $22.4 million.
2

Key Performance Metrics
We focus on several key metrics in evaluating the success of our business relationships and our resulting financial position and operating performance. Our key operating, business and financial metrics are as follows:
As of and for the Three Months Ended
June 30,March 31,June 30,
Operating Metrics (dollars in billions)(1)
202420242023
Advisory and Brokerage Assets(2)
Advisory assets$829.1 $793.0 $661.6 
Brokerage assets668.7 647.9 578.6 
Total Advisory and Brokerage Assets$1,497.8 $1,440.9 $1,240.2 
Advisory as a % of total Advisory and Brokerage Assets55.4%55.0%53.3%
Net New Assets(3)
Net new advisory assets$26.8 $16.2 $18.1 
Net new brokerage assets7.2 0.5 3.6 
Total Net New Assets$34.0 $16.7 $21.7 
Organic Net New Assets
Organic net new advisory assets$26.6 $16.2 $18.1 
Organic net new brokerage assets2.5 0.5 3.6 
Total Organic Net New Assets$29.0 $16.7 $21.7 
Organic advisory net new assets annualized growth(4)
13.4%8.8%11.7%
Total organic net new assets annualized growth(4)
8.1%4.9%7.4%
Client Cash Balances
Insured cash account sweep$31.0 $32.6 $36.0 
Deposit cash account sweep9.2 9.2 9.5 
Total Bank Sweep40.2 41.8 45.5 
Money market sweep 2.3 2.4 2.3 
Total Client Cash Sweep Held by Third Parties42.5 44.2 47.9 
Client cash account(5)
1.5 2.1 1.7 
Total Client Cash Balances$44.0 $46.3 $49.6 
Client Cash Balances as a % of Total Assets2.9%3.2%4.0%
Net buy (sell) activity(6)
$39.3 $37.8 $32.3 
As of and for the Three Months Ended
June 30,March 31,June 30,
Business and Financial Metrics (dollars in millions)202420242023
Advisors23,462 22,884 21,942 
Average total assets per advisor(7)
$63.8 $63.0 $56.5 
Share repurchases$— $70.0 $350.0 
Dividends$22.4 $22.4 $23.1 
Leverage ratio(8)
1.68 1.65 1.25 
3
Three Months Ended June 30,Six Months Ended June 30,
Financial Metrics (dollars in millions, except per share data)2024202320242023
Total revenue$2,931.8 $2,468.8 $5,764.4 $4,886.6 
Net income$243.8 $285.5 $532.6 $624.4 
Earnings per share (“EPS”), diluted$3.23 $3.65 $7.05 $7.90 
Non-GAAP Financial Metrics (dollars in millions, except per share data)
Adjusted EPS(9)
$3.88 $3.94 $8.09 $8.44 
Gross profit(10)
$1,079.2 $989.8 $2,145.6 $2,009.8 
Adjusted EBITDA(11)
$532.9 $522.9 $1,073.4 $1,089.8 
Core G&A(12)
$370.9 $337.0 $734.4 $663.2 
_______________________________
(1)Totals may not foot due to rounding.
(2)Consists of total advisory and brokerage assets under custody at the Company’s primary broker-dealer subsidiary, LPL Financial LLC (“LPL Financial”). Please consult the “Results of Operations” section for a tabular presentation of advisory and brokerage assets.
(3)Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. We consider conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.
(4)Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.
(5)During the first quarter of 2024, the Company updated its definition of client cash account balances to exclude other client payables. Prior period disclosures have been updated to reflect this change as applicable.
(6)Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.
(7)Calculated based on the end of period total advisory and brokerage assets divided by the end of period advisor count.
(8)The leverage ratio is a financial metric from our Credit Agreement and is calculated by dividing Credit Agreement net debt, which equals consolidated total debt less Corporate Cash, by Credit Agreement EBITDA. Credit Agreement EBITDA, a non-GAAP financial measure, is defined by the Credit Agreement as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. Please consult the “Debt and Related Covenants” section for more information. Below are reconciliations of corporate debt and other borrowings to Credit Agreement net debt as of the dates below and net income to EBITDA and Credit Agreement EBITDA for the trailing twelve-month periods presented (in millions):
June 30,March 31,June 30,
Credit Agreement Net Debt Reconciliation202420242023
Corporate debt and other borrowings$4,471.9 $3,875.5 $3,019.6 
Corporate Cash(13)
(684.1)(311.1)(325.5)
Credit Agreement Net Debt(†)
$3,787.8 $3,564.5 $2,694.1 
June 30,March 31,June 30,
EBITDA and Credit Agreement EBITDA Reconciliation202420242023
Net income$974.4 $1,016.1 $1,175.8 
Interest expense on borrowings227.2 207.7 154.3 
Provision for income taxes341.3 358.3 383.5 
Depreciation and amortization270.7 258.1 220.3 
Amortization of other intangibles116.5 112.7 96.0 
EBITDA(†)
$1,930.2 $1,952.9 $2,029.9 
Credit Agreement Adjustments:
Acquisition costs and other(14)(15)
$224.7 $117.2 $35.9 
Employee share-based compensation73.9 70.7 58.4 
M&A accretion(16)
28.8 17.0 36.4 
Advisor share-based compensation2.6 2.6 2.6 
Credit Agreement EBITDA(†)
$2,260.2 $2,160.5 $2,163.2 
June 30,March 31,June 30,
202420242023
Leverage Ratio1.68 1.65 1.25 
_______________________________
(†)    Totals may not foot due to rounding.
4
(9)Adjusted EPS is a non-GAAP financial measure defined as adjusted net income, a non-GAAP financial measure defined as net income plus the after-tax impact of amortization of other intangibles and acquisition costs, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items and acquisition costs that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in millions, except per share data):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Adjusted Net Income / Adjusted EPS ReconciliationAmountPer ShareAmountPer ShareAmountPer ShareAmountPer Share
Net income / earnings per diluted share$243.8 $3.23 $285.5 $3.65 $532.6 $7.05 $624.4 $7.90 
Amortization of other intangibles 30.6 0.41 26.7 0.34 60.2 0.80 50.8 0.64 
Acquisition costs(14)
36.9 0.49 4.1 0.05 46.4 0.61 7.2 0.09 
Tax benefit(17.8)(0.24)(8.1)(0.10)(28.1)(0.37)(15.2)(0.19)
Adjusted Net Income / Adjusted EPS(†)
$293.5 $3.88 $308.3 $3.94 $611.0 $8.09 $667.2 $8.44 
Weighted-average shares outstanding, diluted75.5 78.2 75.5 79.1 
_______________________________
(†)    Totals may not foot due to rounding.
(10)Gross profit is a non-GAAP financial measure defined as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered by management to be general and administrative in nature. Because our gross profit amounts do not include any depreciation and amortization expense, we consider our gross profit amounts to be non-GAAP financial measures that may not be comparable to those of others in our industry. We believe that gross profit amounts can provide investors with useful insight into our core operating performance before indirect costs that are general and administrative in nature. Below is a calculation of gross profit for the periods presented (in millions):
Three Months Ended June 30,Six Months Ended June 30,
Gross Profit2024202320242023
Total revenue$2,931.8 $2,468.8 $5,764.4 $4,886.6 
Advisory and commission expense1,819.0 1,448.8 3,552.5 2,819.4 
Brokerage, clearing and exchange expense33.0 29.1 63.5 55.3 
Employee deferred compensation
0.6 1.1 2.7 2.2 
Gross Profit(†)
$1,079.2 $989.8 $2,145.6 $2,009.8 
_______________________________
(†)    Totals may not foot due to rounding.
(11)EBITDA and adjusted EBITDA are non-GAAP financial measures. EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA plus acquisition costs. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in millions):
Three Months Ended June 30,Six Months Ended June 30,
EBITDA Reconciliation2024202320242023
Net income$243.8 $285.5 $532.6 $624.4 
Interest expense on borrowings64.3 44.8 124.4 84.0 
Provision for income taxes86.3 103.3 171.7 208.9 
Depreciation and amortization71.0 58.4 138.2 114.4 
Amortization of other intangibles30.6 26.7 60.2 50.8 
EBITDA$496.0 $518.8 $1,027.1 $1,082.6 
Acquisition costs(14)
36.9 4.1 46.4 7.2 
Adjusted EBITDA(†)
$532.9 $522.9 $1,073.4 $1,089.8 
_______________________________
(†)    Totals may not foot due to rounding.
        
5
(12)Core G&A is a non-GAAP financial measure defined as total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission expense, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. Below is a reconciliation of the Company’s total expense to core G&A for the periods presented (in millions):
Three Months Ended June 30,Six Months Ended June 30,
Core G&A Reconciliation2024202320242023
Total expense$2,601.7 $2,080.0 $5,060.1 $4,053.3 
Advisory and commission(1,819.0 )(1,448.8 )(3,552.5 )(2,819.4 )
Depreciation and amortization(71.0 )(58.4 )(138.2 )(114.4 )
Interest expense on borrowings(64.3 )(44.8 )(124.4 )(84.0 )
Brokerage, clearing and exchange(33.0 )(29.1 )(63.5 )(55.3 )
Amortization of other intangibles(30.6 )(26.7 )(60.2 )(50.8 )
Employee deferred compensation
(0.6)(1.1 )(2.7 )2.2 
Total G&A(†)
583.2 471.0 1,118.6 927.2 
Promotional (ongoing)(14)(17)
(147.8 )(106.5 )(280.1 )(207.7 )
Employee share-based compensation(20.0 )(16.8 )(42.6 )(34.7 )
Acquisition costs(14)
(36.9 )(4.1 )(46.4 )(7.2 )
Regulatory charges
(7.6 )(6.6 )(15.1 )(14.3 )
Core G&A(†)
$370.9 $337.0 $734.4 $663.2 
_______________________________
(†)    Totals may not foot due to rounding.
(13)See the “Liquidity and Capital Resources” section for additional information about Corporate Cash.
(14)Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in millions):
Three Months Ended June 30,Six Months Ended June 30,
Acquisition costs2024202320242023
Fair value mark on contingent consideration
$24.6 $— $24.6 $— 
Compensation and benefits6.8 1.0 10.7 1.9
Professional services3.6 2.6 6.8 4.2
Promotional(17)
0.5 0.3 2.8 0.5 
Other1.3 0.2 1.5 0.6 
Acquisition costs(†)
$36.9 $4.1 $46.4 $7.2 
_______________________________
(†)    Totals may not foot due to rounding.
(15)Acquisition costs and other primarily include acquisition costs, costs incurred related to the integration of the strategic relationship with Prudential, and a $40.0 million regulatory charge recognized during the three months ended September 30, 2023 to reflect the amount of a penalty proposed by the SEC as part of its civil investigation of the Company's compliance with records preservation requirements for business-related electronic communications stored on personal devices that have not been approved by the Company. See Note 10 - Commitments and Contingencies, within the notes to the condensed consolidated financial statements for further detail.
(16)M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of such acquisition.
(17)Promotional (ongoing) for the three and six months ended June 30, 2024 includes $12.2 million and $20.2 million, respectively, of support costs related to full-time employees that are classified within compensation and benefits expense in the condensed consolidated statements of income compared to $4.2 million and $7.4 million for the same periods in 2023. Promotional (ongoing) excludes costs that have been incurred as part of acquisitions, which are included in the Acquisition costs line item.
Legal and Regulatory Matters
The financial services industry is subject to extensive regulation by U.S. federal and state government agencies as well as various self-regulatory organizations. Compliance with all applicable laws and regulations involves a significant investment in time and resources, and we continue to invest in our compliance functions to monitor our adherence to the numerous legal and regulatory requirements applicable to our business. Any new laws or regulations applicable to our business, any changes to existing laws or regulations, or any changes to the interpretations or enforcement of those laws or regulations may affect our operations and/or financial condition. We seek to participate in the development of significant rules and regulations that govern our industry.
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As a regulated entity, we are subject to regulatory oversight and inquiries related to, among other items, our compliance and supervisory systems and procedures and other controls, as well as our disclosures, supervision and reporting. We review these items in the ordinary course of business in our effort to adhere to legal and regulatory requirements applicable to our operations. Nevertheless, additional regulation and enhanced regulatory enforcement has resulted, and may result in the future, in changes to our service offerings and additional operational and compliance costs, as well as increased costs in the form of penalties and fines, investigatory and settlement costs, customer restitution and remediation related to regulatory matters. In the ordinary course of business, we periodically identify or become aware of purported inadequacies, deficiencies and other issues. It is our policy to evaluate these matters for potential legal or regulatory violations and other potential compliance issues. It is also our policy to self-report known violations and issues as required by applicable law and regulation. When deemed probable that matters may result in financial losses, we accrue for those losses based on an estimate of possible fines, customer restitution and losses related to the repurchase of sold securities and other losses, as applicable. Certain regulatory and other legal claims and losses may be covered through our wholly-owned captive insurance subsidiary, which is chartered with the insurance commissioner in the state of Tennessee.
Assessing the probability of a loss occurring and the timing and amount of any loss related to a regulatory matter or legal proceeding, whether or not covered by our captive insurance subsidiary, is inherently difficult and requires judgments based on a variety of factors and assumptions. There are particular uncertainties and complexities involved when assessing the adequacy of loss reserves for potential liabilities that are self-insured by our captive insurance subsidiary, which depends in part on historical claims experience, including the actual timing and costs of resolving matters that begin in one policy period and are resolved in a subsequent period.
Our accruals, including those established through our captive insurance subsidiary at June 30, 2024, include estimated costs for significant regulatory matters or legal proceedings, generally relating to the adequacy of our compliance and supervisory systems and procedures and other controls, for which we believe losses are both probable and reasonably estimable.
The outcome of regulatory or legal proceedings could result in legal liability, regulatory fines or monetary penalties in excess of our accruals and insurance, which could have a material adverse effect on our business, results of operations, cash flows or financial condition. For more information on management’s loss contingency policies, see Note 10 - Commitments and Contingencies, within the notes to the condensed consolidated financial statements.
Economic Overview and Impact of Financial Market Events
Our business is directly and indirectly sensitive to several macroeconomic factors and the state of the financial markets in the United States. According to the most recent estimate from the U.S. Bureau of Economic Analysis, the U.S. economy grew at an annualized pace of 2.8% in the second quarter of 2024 after growing at an annualized pace of 1.4% in the first quarter of 2024. Although inflation, rising interest rates and volatile global markets were all headwinds, the U.S. economy added roughly 532,000 jobs in the second quarter of 2024. The unemployment rate averaged 4.0% in the second quarter of 2024, up slightly from the 3.8% average in the prior quarter, but still historically low, indicating a tight labor market. The equity markets rebounded as the Federal Reserve (“Fed”) held rates unchanged and prepared markets for future rate cuts. As a result, the S&P 500 returned 4.3% during the second quarter of 2024.
Our business is also sensitive to current and expected short-term interest rates, which are largely driven by Fed policy. During the second quarter of 2024, Fed policymakers maintained the target range for the federal funds rate of 5.25% to 5.50%. To the extent they pursue tighter monetary policy, the Federal Open Market Committee members are expected to take into account the cumulative impacts from higher rates, the inflation trajectory and global financial conditions.
Please consult the “Risks Related to Our Business and Industry” section within Part I, “Item 1A. Risk Factors” in our 2023 Annual Report on Form 10-K for more information about the risks associated with significant interest rate changes and the potential related effects on our profitability and financial condition.
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Results of Operations
The following discussion presents an analysis of our results of operations for the three and six months ended June 30, 2024 and 2023 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
20242023% Change20242023% Change
REVENUE
Advisory$1,288,163 $1,014,565 27 %$2,487,974 $1,968,622 26 %
Commission:
Sales-based423,070 298,961 42 %808,305 585,033 38 %
Trailing363,976 323,925 12 %725,187 641,578 13 %
Total commission787,046 622,886 26 %1,533,492 1,226,611 25 %
Asset-based:
Client cash341,475 378,415 (10 %)693,857 796,690 (13 %)
Other asset-based259,533 211,300 23 %507,872 414,773 22 %
Total asset-based601,008 589,715 2 %1,201,729 1,211,463 (1 %)
Service and fee135,000 123,122 10 %267,172 242,109 10 %
Transaction58,935 46,936 26 %116,193 95,871 21 %
Interest income, net47,478 37,972 25 %91,003 75,330 21 %
Other14,139 33,608 (58 %)66,799 66,630 — %
Total revenue    
2,931,769 2,468,804 19 %5,764,362 4,886,636 18 %
EXPENSE
Advisory and commission1,819,027 1,448,763 26 %3,552,514 2,819,397 26 %
Compensation and benefits274,000 231,680 18 %548,369 465,213 18 %
Promotional136,125 102,565 33 %262,744 200,788 31 %
Depreciation and amortization70,999 58,377 22 %138,157 114,431 21 %
Occupancy and equipment69,529 65,005 7 %135,793 125,178 8 %
Interest expense on borrowings64,341 44,842 43 %124,423 84,026 48 %
Brokerage, clearing and exchange32,984 29,148 13 %63,516 55,274 15 %
Amortization of other intangibles30,607 26,741 14 %60,159 50,833 18 %
Professional services22,100 18,092 22 %35,379 32,312 9 %
Communications and data processing19,406 20,594 (6 %)39,150 38,269 2 %
Other62,580 34,178 83 %99,895 67,599 48 %
Total expense    
2,601,698 2,079,985 25 %5,060,099 4,053,320 25 %
INCOME BEFORE PROVISION FOR INCOME TAXES
330,071 388,819 (15 %)704,263 833,316 (15 %)
PROVISION FOR INCOME TAXES
86,271 103,299 (16 %)171,699 208,912 (18 %)
NET INCOME
$243,800 $285,520 (15 %)$532,564 $624,404 (15 %)
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Revenue
Advisory
Advisory revenue represents fees charged to advisors’ clients’ advisory accounts on our corporate RIA advisory platform and is based on a percentage of the market value of the eligible assets in the clients’ advisory accounts. We provide ongoing investment advice and act as a custodian, providing brokerage and execution services on transactions, and perform administrative services for these accounts. Advisory fees are primarily billed to clients on a quarterly basis in advance, and are recognized as revenue ratably during the quarter. The performance obligation for advisory fees is considered a series of distinct services that are substantially the same and are satisfied daily. As the value of the eligible assets in an advisory account is susceptible to changes due to customer activity, this revenue includes variable consideration and is constrained until the date that the fees are determinable. The majority of these client accounts are on a calendar quarter and are billed using values as of the last business day of the preceding quarter. The value of the eligible assets in an advisory account on the billing date is adjusted for estimates of contributions and withdrawals to determine the amount billed, and accordingly, the revenue earned in the following three-month period. Advisory revenue collected on our corporate RIA advisory platform is proposed by the advisor and agreed to by the client and was approximately 1% of the underlying assets for the six months ended June 30, 2024.
We also support independent RIA firms that conduct their business through our separate registered investment advisor firms (“Independent RIAs”) advisory platform, which allows advisors to engage us for technology, clearing and custody services, as well as access the capabilities of our investment platforms. The assets held under an Independent RIA’s investment advisory accounts custodied with LPL Financial are included in total advisory assets and net new advisory assets. However, the advisory revenue generated by an Independent RIA is not included in our advisory revenue. We charge separate fees to Independent RIAs for technology, clearing, administrative, oversight and custody services, which may vary and are included in our service and fee revenue in our condensed consolidated statements of income.
The following table summarizes the composition of advisory assets for the periods presented (in billions):
June 30,
20242023$ Change% Change
Corporate advisory assets$567.8 $442.1 $125.7 28 %
Independent RIA advisory assets261.3 219.5 41.8 19 %
Total advisory assets$829.1 $661.6 $167.5 25 %

Net new advisory assets are generated throughout the quarter, therefore, the full impact of net new advisory assets to advisory revenue is not realized in the same period. The following table summarizes activity impacting advisory assets for the periods presented (in billions):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Balance - Beginning of period$793.0 $620.9 $735.8 $583.1 
Net new advisory assets(1)
26.8 18.1 43.0 32.7 
Market impact(2)
9.3 22.6 50.3 45.8 
Balance - End of period$829.1 $661.6 $829.1 $661.6 
_______________________________
(1)Net new advisory assets consist of total client deposits into custodied advisory accounts less total client withdrawals from custodied advisory accounts, plus dividends, plus interest, minus advisory fees. We consider conversions from and to brokerage accounts as deposits and withdrawals, respectively.
(2)Market impact is the difference between the beginning and ending asset balance less the net new asset amounts, representing the implied growth or decline in asset balances due to market changes over the same period of time.
Advisory revenue increased during the three and six months ended June 30, 2024 as compared to the same periods in 2023 due primarily to an increase in advisory asset balances and related market impacts.
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Commission
We generate two types of commission revenue: (1) sales-based commissions that are recognized at the point of sale on the trade date and are based on a percentage of an investment product’s current market value at the time of purchase and (2) trailing commissions that are recognized over time as earned and are generally based on the market value of investment holdings in trail-eligible assets. Sales-based commission revenue, which occurs when clients trade securities or purchase various types of investment products, primarily represents gross commissions generated by our advisors and can vary from period to period based on the overall economic environment, number of trading days in the reporting period and investment activity of our advisors’ clients. We earn trailing commission revenue primarily on mutual funds and variable annuities held by clients of our advisors. See Note 3 - Revenue, within the notes to the condensed consolidated financial statements for further detail regarding our commission revenue by product category.
The following table sets forth the components of our commission revenue for the periods presented (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
20242023$ Change% Change20242023$ Change% Change
Sales-based$423,070 $298,961 $124,109 42 %$808,305 $585,033 $223,272 38 %
Trailing363,976 323,925 40,051 12 %725,187 641,578 83,609 13 %
Total commission revenue
$787,046 $622,886 $164,160 26 %$1,533,492 $1,226,611 $306,881 25 %
The increase in sales-based commission revenue for the three and six months ended June 30, 2024 compared to 2023 was primarily driven by an increase in sales of annuities and fixed income securities as a result of the higher interest rate environment. The increase in trailing commission revenue for the three and six months ended June 30, 2024 compared to 2023 was primarily due to an increase in sales of annuities and mutual funds as compared to the prior period.
The following table summarizes activity impacting brokerage assets for the periods presented (in billions):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Balance - Beginning of period$647.9 $554.3 $618.2 $527.7 
Net new brokerage assets(1)
7.2 3.6 7.7 13.5 
Market impact(2)
13.6 20.7 42.8 37.4 
Balance - End of period$668.7 $578.6 $668.7 $578.6 
_______________________________
(1) Net new brokerage assets consist of total client deposits into brokerage accounts less total client withdrawals from brokerage accounts, plus dividends, plus interest. We consider conversions from and to advisory accounts as deposits and withdrawals, respectively.
(2) Market impact is the difference between the beginning and ending asset balance less the net new asset amounts, representing the implied growth or decline in asset balances due to market changes over the same period of time.
Asset-Based
Asset-based revenue consists of fees from our client cash programs, fees from our sponsorship programs with financial product manufacturers and fees from omnibus processing and networking services (collectively referred to as “recordkeeping”). Client cash revenue is generated on advisors’ clients’ cash balances in insured bank sweep accounts and money market accounts. We also receive fees from certain financial product manufacturers in connection with sponsorship programs that support our marketing and sales force education and training efforts. Compensation for these performance obligations is either a fixed fee, a percentage of the average annual amount of product sponsor assets held in advisors’ clients’ accounts, a percentage of new sales or a combination. Omnibus processing revenue is paid to us by mutual fund product sponsors or their affiliates and is based on the value of mutual fund assets in accounts for which the Company provides omnibus processing services and the number of accounts in which the related mutual fund positions are held. Networking revenue on brokerage assets is correlated to the number of positions we administer and is paid to us by mutual fund product sponsors and annuity product manufacturers.
Asset-based revenue increased by $11.3 million for the three months ended June 30, 2024 and decreased by $9.7 million for the six months ended June 30, 2024 as compared to 2023, primarily due to increases in other asset-based revenues that offset the decreases in client cash revenues for both the three and six month periods. Client cash revenue for the three and six months ended June 30, 2024 decreased compared to 2023 due to lower average client cash balances during the three and six months ended June 30, 2024 as compared to 2023. For the three
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months ended June 30, 2024, our average client cash balances decreased to $43.0 billion compared to $49.0 billion in 2023. For the six months ended June 30, 2024, our average client cash balances decreased to $43.7 billion compared to $52.3 billion in 2023.
Service and Fee
Service and fee revenue is generated from advisor and retail investor services, including technology, insurance, conferences, licensing, business services and planning and advice services, Individual Retirement Account (“IRA”) custodian and other client account fees. We charge separate fees to RIAs on our Independent RIA advisory platform for technology, clearing, administrative, oversight and custody services, which may vary. We also host certain advisor conferences that serve as training, education, sales and marketing events for which we charge sponsors a fee. Service and fee revenue for the three and six months ended June 30, 2024 increased compared to 2023, primarily due to increases in IRA custodian fees, business services and planning and advice services fees, and fees relating to error and omission insurance.
Transaction
Transaction revenue includes transaction charges generated in both advisory and brokerage accounts from mutual funds, exchange-traded funds and fixed income products. Transaction revenue for the three and six months ended June 30, 2024 increased compared to 2023, primarily due to increases in the number of transactions and transaction charges for managed assets and fixed income products.
Interest Income, Net
Interest income is primarily generated from bank deposits, client margin loans, client cash account (“CCA”) balances segregated under federal or other regulations and advisor repayable loans. Interest income, net for the three and six months ended June 30, 2024 increased compared to 2023 primarily due to increases in interest earned on bank deposits, short-term U.S treasury bills, and margin loans, partially offset by increases in interest paid on CCAs.
Other Revenue
Other revenue primarily includes unrealized gains and losses on assets held by us in our advisor non-qualified deferred compensation plan and model research portfolios and other miscellaneous revenue, which is not generated from contracts with customers. Other revenue decreased for the three months ended June 30, 2024 and remained flat for the six months ended June 30, 2024 as compared to 2023. The decrease during the three months ended June 30, 2024 as compared to the same period in 2023 was due primarily to lower unrealized gains in our deferred compensation plan.
Expense
Advisory and Commission
Advisory and commission expense consists of the following: payout amounts that are earned by and paid out to advisors and institutions based on advisory and commission revenue earned on each client’s account, production-based bonuses earned by advisors and institutions based on the levels of advisory and commission revenue they produce, compensation and benefits paid to employee advisors, share-based compensation expense from equity awards granted to advisors and institutions based on the fair value of the awards at grant date and the deferred advisory and commission fee expense associated with mark-to-market gains or losses on the non-qualified deferred compensation plan offered to our advisors.
The following table sets forth our payout rate, which is a statistical or operating measure, for the periods presented:
Three Months Ended June 30,Six Months Ended June 30,
20242023Change20242023Change
Payout rate87.32%86.70%62 bps86.99%86.45%54 bps
Our payout rate for the three and six months ended June 30, 2024 increased slightly compared to 2023, primarily due to the effect of changes in product mix, large bank integrations and pricing changes as compared to the prior periods.
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Compensation and Benefits
Compensation and benefits expense includes salaries, wages, benefits, share-based compensation and related taxes for our employees, as well as compensation for temporary workers and contractors. The following table sets forth our average number of employees for the periods presented:
Three Months Ended June 30,Six Months Ended June 30,
20242023Change20242023Change
Average number of employees9,0237,45721%8,8737,29122%
Compensation and benefits expense for the three and six months ended June 30, 2024 increased by $42.3 million and $83.2 million, respectively, compared to 2023, primarily due to an increase in average headcount.
Promotional
Promotional expense includes business development costs related to advisor recruitment and retention, costs related to hosting certain advisory conferences that serve as training, sales and marketing events, and other costs that support advisor business growth. Promotional expense for the three and six months ended June 30, 2024 increased by $33.6 million and $62.0 million, respectively, compared to 2023, primarily due to increases in recruited assets and advisors that led to higher costs to support transition assistance and retention and increases in large institutional onboarding costs.
Depreciation and Amortization
Depreciation and amortization expense relates to the use of property and equipment, which includes internally developed software, hardware, leasehold improvements and other equipment. Depreciation and amortization expense for the three and six months ended June 30, 2024 increased by $12.6 million and $23.7 million, respectively, compared to 2023, primarily due to our continued investment in technology to support integrations, enhance our advisor platform and experience, and support onboarding of institutions.
Interest Expense on Borrowings
Interest expense on borrowings includes the interest associated with the Company’s senior notes, senior secured Term Loan B (“Term Loan B”) and revolving credit facilities; amortization of debt issuance costs; and fees associated with the Company’s revolving lines of credit. Interest expense on borrowings for the three and six months ended June 30, 2024 increased by $19.5 million and $40.4 million, respectively, compared to 2023, primarily due to increases as a result of our issuance of $750.0 million senior notes in November 2023 and $1.0 billion senior notes in May 2024. See Note 9 - Corporate Debt and Other Borrowings, Net, within the notes to the condensed consolidated financial statements for further detail.
Other Expense
Other expense includes the costs of the investigation, settlement and resolution of regulatory matters (including customer restitution and remediation), licensing fees, insurance, broker-dealer regulatory fees, travel-related expenses, fair value adjustments to contingent consideration liabilities, and other miscellaneous expenses. Other expense for the three and six months ended June 30, 2024 increased by $28.4 million and $32.3 million, respectively, compared to 2023, primarily due to fair value adjustments to our contingent consideration liabilities. See Note 4 - Acquisitions within the notes to the condensed consolidated financial statements for further detail.
Provision for Income Taxes
Our effective income tax rate was 26.1% and 26.6% for the three months ended June 30, 2024 and 2023, respectively, and 24.4% and 25.1% for the six months ended June 30, 2024 and 2023, respectively. The Company’s effective income tax rate differs from the federal corporate tax rate of 21.0%, primarily as a result of state taxes, reserves for uncertain tax positions and non-deductible expenses. Our effective income tax rate is reduced by tax benefits received from income tax credits as well as share-based compensation vesting and exercises. The decrease in our effective tax rate for the three and six months ended June 30, 2024 was primarily driven by higher tax benefits related to share-based compensation deductions through the second quarter of 2024 as compared to the same periods in the prior year.
Liquidity and Capital Resources
We have established liquidity and capital policies intended to support the execution of strategic initiatives, while meeting regulatory capital requirements and maintaining ongoing and sufficient liquidity. We believe liquidity is of
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critical importance to the Company and, in particular, to LPL Financial, our primary broker-dealer subsidiary. The objective of our policies is to ensure that we can meet our strategic, operational and regulatory liquidity and capital requirements under both normal operating conditions and under periods of stress in the financial markets.
Liquidity
Our liquidity needs are primarily driven by capital requirements at LPL Financial, interest due on our corporate debt and other capital returns to stockholders. Our liquidity needs at LPL Financial are driven primarily by the level and volatility of our client activity. Management maintains a set of liquidity sources and monitors certain business trends and market metrics closely in an effort to ensure we have sufficient liquidity. We believe that based on current levels of cash flows from operations and anticipated growth, together with available cash balances and external liquidity sources, we have adequate liquidity to satisfy our short-term and long-term working capital needs, the payment of all of our obligations and the funding of anticipated capital expenditures.
Parent Company Liquidity
LPL Holdings, Inc. (the “Parent”), the direct holding company of our operating subsidiaries, considers its primary sources of liquidity to be dividends from and excess capital generated by LPL Financial, as well as capacity for additional borrowing under its $2.25 billion secured revolving credit facility, which it has the ability to borrow against for working capital and general corporate purposes.
Dividends from and excess capital generated by LPL Financial are primarily generated through our cash flow from operations. Subject to regulatory approval or notification, capital generated by regulated subsidiaries can be distributed to the Parent to the extent the capital levels exceed regulatory requirements, Credit Agreement requirements and internal capital thresholds. During the six months ended June 30, 2024 and 2023, LPL Financial paid dividends of $260.0 million and $395.0 million to the Parent, respectively.
We believe Corporate Cash, a component of cash and equivalents, is a useful measure of the Parent’s liquidity as it represents the capital available for use in excess of the amount we are required to maintain pursuant to the Credit Agreement. Corporate Cash is the sum of cash and equivalents from the following: (1) cash and equivalents held at the Parent, (2) cash and equivalents held at regulated subsidiaries as defined by the Credit Agreement, which include LPL Financial and The Private Trust Company, N.A. (“PTC”), in excess of the capital requirements of the Credit Agreement (which, in the case of LPL Financial, is net capital in excess of 10% of its aggregate debits, or five times the net capital required in accordance with Exchange Act Rule 15c3-1) and (3) cash and equivalents held at non-regulated subsidiaries.
The following table presents the components of Corporate Cash (in thousands):
June 30, 2024December 31, 2023
Cash and equivalents$1,318,894 $465,671 
Cash at regulated subsidiaries(828,145)(410,313)
Excess cash at regulated subsidiaries per the Credit Agreement193,342 128,327 
Corporate Cash$684,091 $183,685 
Corporate Cash
Cash at the Parent$450,505 $26,587 
Excess cash at regulated subsidiaries per the Credit Agreement193,342 128,327 
Cash at non-regulated subsidiaries40,244 28,771 
Corporate Cash$684,091 $183,685 
Corporate Cash is monitored as part of our liquidity risk management strategy, and we target maintaining approximately $200 million of Corporate Cash to meet our near-term corporate debt obligations. Corporate Cash increased by $500.4 million during the six months ended June 30, 2024 primarily as a result of proceeds received from our $1.0 billion debt issuance in May 2024 offset by the repayment of balances outstanding on our senior secured revolving credit facility. See Note 9 - Corporate Debt and Other Borrowings, Net, within the notes to the condensed consolidated financial statements for additional information.
We actively monitor changes to our liquidity needs caused by general business volumes and price volatility, including higher margin requirements of clearing corporations and exchanges, and stress scenarios involving a sustained market downturn and the persistence of current interest rates. We believe that based on current levels of operations and anticipated growth, our cash flow from operations, together with other available sources of funds,
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which include five uncommitted lines of credit, the revolving credit facility established through our Credit Agreement and the committed revolving credit facility of LPL Financial, will provide us with adequate liquidity to satisfy our short-term and long-term working capital needs, the payment of all of our obligations and the funding of anticipated capital expenditures.
We regularly evaluate our existing indebtedness, including potential issuances and refinancing opportunities, based on a number of factors, including our capital requirements, future prospects, contractual restrictions, the availability of refinancing on attractive terms and general market conditions. As of June 30, 2024, the earliest principal maturity date for our corporate debt with outstanding balances is in 2026 and our revolving credit facilities and uncommitted lines of credit mature between 2024 and 2029.
Share Repurchases
We engage in a share repurchase program that was approved by our Board of Directors (the “Board”), pursuant to which we may repurchase our issued and outstanding shares of common stock from time to time. Purchases may be effected in open market or privately negotiated transactions. Our current capital deployment framework remains focused on investing in organic growth first, pursuing acquisitions where appropriate and returning excess capital to stockholders. We repurchased 296,145 shares for a total of $70.0 million during the six months ended June 30, 2024. As of June 30, 2024, we had $830.0 million remaining under our existing repurchase program. As a result of our planned acquisition of Atria, we paused share repurchases beginning in the first quarter of 2024. Subsequent to the closing of the transaction, we will evaluate resuming share repurchases, consistent with our existing capital management strategy. The timing and amount of share repurchases, if any, is determined at our discretion within the constraints of our Credit Agreement, applicable laws and consideration of our general liquidity needs. See Note 11 - Stockholders’ Equity, within the notes to the condensed consolidated financial statements for additional information regarding our share repurchases.
Common Stock Dividends
The payment, timing and amount of any dividends are subject to approval by LPLFH’s Board, as well as certain limits under our Credit Agreement. See Note 11 - Stockholders’ Equity, within the notes to the condensed consolidated financial statements for additional information regarding our dividends.
LPL Financial Liquidity
LPL Financial relies primarily on client payables to fund margin lending. LPL Financial maintains additional liquidity through external lines of credit totaling $1.2 billion at June 30, 2024. LPL Financial also maintains a line of credit with the Parent.
External Liquidity Sources
The following table presents amounts outstanding and available under our external lines of credit at June 30, 2024 (in millions):
DescriptionBorrowerMaturity DateOutstandingAvailable
Senior secured, revolving credit facility
LPL Holdings, Inc.May 2029$— $2,250 
Broker-dealer revolving credit facility
LPL Financial LLCMay 2025$— $1,000 
Unsecured, uncommitted lines of creditLPL Financial LLC
None
$— $75 
Unsecured, uncommitted lines of creditLPL Financial LLCSeptember 2024$— $50 
Secured, uncommitted lines of creditLPL Financial LLCMarch 2025$— $75 
Secured, uncommitted lines of creditLPL Financial LLCNone$— unspecified
Secured, uncommitted lines of creditLPL Financial LLCNone$— unspecified
Capital Resources
The Company seeks to manage capital levels in support of its business strategy of generating and effectively deploying capital for the benefit of our stockholders.
Our primary requirement for working capital relates to funds we loan to our advisors’ clients for trading conducted on margin and funds we are required to maintain for regulatory capital and reserves based on the requirements of our regulators and clearing organizations, which also consider client balances and trading activities. We have several sources of funds that enable us to meet increases in working capital requirements that relate to increases in client margin activities and balances. These sources include cash and equivalents on hand, the committed revolving credit facility of LPL Financial and proceeds from repledging or selling client securities in margin accounts. When an
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advisor’s client purchases securities on margin or uses securities as collateral to borrow from us on margin, we are permitted, pursuant to the applicable securities industry regulations, to repledge, loan or sell securities, up to 140% of the client’s margin loan balance, that collateralize those margin accounts.
Our other working capital needs are primarily related to loans we are making to advisors and timing associated with receivables and payables, which we have satisfied in the past from internally generated cash flows.
We may sometimes be required to fund capital requirements necessary to effect client transactions in securities markets and cash sweep balances held at third-party banks that arise from the delayed receipt of client funds. These capital requirements are funded either with internally generated cash flows or, if needed, with funds drawn on our uncommitted lines of credit at LPL Financial or one of our revolving credit facilities.
Our broker-dealer subsidiaries are subject to the SEC’s Uniform Net Capital Rule (Rule 15c3-1 under the Exchange Act), which requires the maintenance of minimum net capital. LPL Financial, our primary broker-dealer subsidiary, computes net capital requirements under the alternative method, which requires firms to maintain minimum net capital equal to the greater of $250,000 or 2% of aggregate debit balances arising from client transactions.
The following table presents the net capital position of the Company’s primary broker-dealer subsidiary (in thousands):
June 30, 2024
LPL Financial LLC
Net capital$271,649 
Less: required net capital17,550 
Excess net capital$254,099 
Payment by our broker-dealer subsidiaries of dividends greater than 10% of their respective excess net capital during any 35-day rolling period requires approval from FINRA. In addition, each broker-dealer subsidiary’s ability to pay dividends would be restricted if its net capital would be less than 5% of aggregate customer debit balances.
LPL Financial also acts as an introducing broker-dealer for commodities and futures. Accordingly, its trading activities are subject to the National Futures Association’s (“NFA”) financial requirements and it is required to maintain net capital that is in excess of or equal to the greatest of NFA’s minimum financial requirements. The NFA was designated by the Commodity Futures Trading Commission as LPL Financial’s primary regulator for such activities. Currently, the highest NFA requirement is the minimum net capital calculated and required pursuant to the SEC’s Uniform Net Capital Rule.
Our subsidiary PTC is also subject to various regulatory capital requirements. Failure to meet the respective minimum capital requirements can result in certain mandatory and discretionary actions by regulators that, if undertaken, could have substantial monetary and non-monetary impacts on PTC’s operations.
Supplemental Guarantor Financial Information
The Company filed a registration statement on Form S-3 to register, among other things, non-convertible debt securities that may be offered by LPL Holdings, Inc. (the “Issuer”), a wholly owned subsidiary of LPL Financial Holdings Inc. (“LPLFH” and together with the Issuer, the “Obligor Group”), and full and unconditional guarantees by LPLFH of such debt securities. The debt securities issued by the Issuer pursuant to such registration statement are fully and unconditionally guaranteed by LPLFH. LPLFH is a Delaware holding corporation that manages substantially all of its operations through investments in subsidiaries. See Note 1 - Organization and Description of the Company and Note 9 - Corporate Debt and Other Borrowings, Net, within the notes to the condensed consolidated financial statements for additional information.
Pursuant to Rule 3-10 of Regulation S-X under the Securities Act of 1933, as amended, the following tables present unaudited summarized financial information for the Obligor Group on a combined basis. Balances and transactions between the Obligor Group have been eliminated. Financial information for non-guarantor subsidiaries, which includes all other subsidiaries of the Issuer, has been excluded and intercompany balances and transactions between the Obligor Group and non-guarantor subsidiaries are presented on separate lines. The summarized financial information below should be read in conjunction with the Company’s condensed consolidated financial statements contained herein as the summarized financial information for the Obligor Group may not be indicative of results of operations or financial position of the Issuer or LPLFH had they operated as independent entities.
15
The following tables present the summarized financial information for the periods presented (in thousands):
LPL Holdings, Inc. & LPL Financial Holdings Inc.
Six Months Ended June 30,
Combined Summarized Statements of Income
2024
Revenues(1)
$60,626 
Revenues from non-guarantor subsidiaries
10,670 
Advisory and commission expense(1)
57,823 
Interest expense on borrowings
122,253 
Expenses from non-guarantor subsidiaries
7,017 
Loss before provision for income taxes
(144,687)
Net loss
(109,658)
____________________
(1)Revenues primarily include unrealized gains and losses on assets held in the non-qualified deferred compensation plan offered to advisors and employees, while advisory and commission expense includes the deferred advisory and commission fee expense associated with mark-to-market gains or losses on the non-qualified deferred compensation plan offered to advisors.
LPL Holdings, Inc. & LPL Financial Holdings Inc.
Combined Summarized Statements of Financial Condition
June 30, 2024December 31, 2023
Cash and equivalents$450,505 $26,587 
Other receivables, net
4,731 2,793 
Property and equipment, net
159,248 154,920 
Goodwill
1,251,908 1,251,908 
Other intangibles, net
81,474 95,461 
Receivables from non-guarantor subsidiaries
161,493 153,377 
Other assets
1,137,640 1,017,289 
Corporate debt and other borrowings, net
4,442,840 3,734,111 
Accounts payable and accrued liabilities
59,214 53,817 
Payables to non-guarantor subsidiaries
76,170 76,683 
Other liabilities
1,066,560 986,274 
Debt and Related Covenants
The Credit Agreement contains a number of covenants that, among other things, restrict, subject to certain exceptions, our ability to:
•incur additional indebtedness or issue disqualified stock or preferred stock;
•declare dividends, or other distributions to stockholders;
•repurchase equity interests;
•redeem indebtedness that is subordinated in right of payment to certain debt instruments;
•make investments or acquisitions;
•create liens;
•sell assets;
•guarantee indebtedness;
•engage in certain transactions with affiliates;
•enter into agreements that restrict dividends or other payments from subsidiaries; and
•consolidate, merge or transfer all or substantially all of our assets.
Our Credit Agreement allows us to pay dividends and distributions or repurchase our common stock only when certain conditions are met. In addition, our revolving credit facility requires us to be in compliance with certain financial covenants as of the last day of each fiscal quarter. The financial covenants require the calculation of Credit Agreement EBITDA, as defined in, and calculated by management in accordance with, the Credit Agreement. The Credit Agreement defines Credit Agreement EBITDA as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions.
16
As of June 30, 2024, we were in compliance with our Credit Agreement financial covenants, which include a maximum Consolidated Total Debt to Consolidated EBITDA Ratio (as defined in the Credit Agreement) or “Leverage Ratio” and a minimum Consolidated EBITDA to Consolidated Interest Expense Ratio (as defined in the Credit Agreement) or “Interest Coverage”. The breach of these financial covenants would be subject to certain equity cure rights. The required ratios under our financial covenants and actual ratios were as follows:
June 30, 2024
Financial RatioCovenant RequirementActual Ratio
Leverage Ratio (Maximum)
4.01.68
Interest Coverage (Minimum)3.010.47
Certain restrictive covenants under certain of our Indentures are currently suspended. However, a credit rating downgrade to a below investment grade rating could cause currently suspended restrictive covenants under certain of our Indentures to be automatically reinstated.
See Note 9 - Corporate Debt and Other Borrowings, Net, within the notes to the condensed consolidated financial statements for further detail regarding the Credit Agreement.
Contractual Obligations
During the six months ended June 30, 2024, there were no material changes in our contractual obligations, other than in the ordinary course of business, from those disclosed in our 2023 Annual Report on Form 10-K. See Note 4 - Acquisitions, Note 9 - Corporate Debt and Other Borrowings, Net and Note 10 - Commitments and Contingencies, within the notes to the condensed consolidated financial statements, as well as the Contractual Obligations section within Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2023 Annual Report on Form 10-K, for further detail.
Risk Management
Risk is an inherent part of our business and activities. To effectively manage these risks, we have an enterprise risk management (“ERM”) framework that is designed to facilitate the incorporation of risk assessment into decision-making processes across the Company, enable execution our business strategy, and protect our Company and its franchise. This framework aims to ensure policies and procedures are in place and appropriately designed to identify and manage risk at appropriate levels throughout our organization and within various departments. These control mechanisms attempt to ensure that operational policies and procedures are being followed and that our employees and advisors operate within established corporate policies and limits. Please consult the “Risks Related to Our Technology” and the “Risks Related to Our Business and Industry” sections within Part I, “Item 1A. Risk Factors” and the “Risk Management” section within Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2023 Annual Report on Form 10-K for more information about our risks, our risk management policies and procedures, the potential related effects on our operations, and our ERM framework.
Operational Risk
Operational Risk is reviewed, monitored and challenged by the Operational Risk Oversight Committee. Operational risk is defined as the risk of loss resulting from failed or inadequate processes or systems, actions by people or external events. Please consult the “Risk Management” section within Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2023 Annual Report on Form 10-K for more information about the operational risks that we face.
Regulatory and Compliance Risk
The regulatory environment in which we operate is discussed in detail within Part I, “Item 1. Business” in our 2023 Annual Report on Form 10-K. In recent years, and during the periods presented in this Quarterly Report on Form 10-Q, we have observed the SEC, FINRA, the U.S. Department of Labor and state regulators broaden the scope, frequency and depth of their examinations and inquiries to include greater emphasis on the quality, consistency and oversight of our compliance systems and programs. Please consult the “Risks Related to Our Regulatory Environment” and the “Risks Related to Our Business and Industry” sections within Part I, “Item 1A. Risk Factors” in our 2023 Annual Report on Form 10-K for more information about the risks associated with operating within our regulatory environment, pending regulatory matters and the potential related effects on our operations.
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Critical Accounting Policies and Estimates
In the notes to our consolidated financial statements and in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2023 Annual Report on Form 10-K, we have disclosed those accounting policies that we consider to be most significant in determining our results of operations and financial condition and involve a higher degree of judgment and complexity. There have been no changes to those policies that we consider to be material since the filing of our 2023 Annual Report on Form 10-K. The accounting principles used in preparing our condensed consolidated financial statements conform in all material respects to GAAP.
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Item 1. Financial Statements (unaudited)
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
REVENUE
 Advisory$1,288,163 $1,014,565 $2,487,974 $1,968,622 
Commission:
Sales-based423,070 298,961 808,305 585,033 
Trailing363,976 323,925 725,187 641,578 
Total commission787,046 622,886 1,533,492 1,226,611 
Asset-based:
Client cash341,475 378,415 693,857 796,690 
Other asset-based259,533 211,300 507,872 414,773 
Total asset-based601,008 589,715 1,201,729 1,211,463 
Service and fee135,000 123,122 267,172 242,109 
Transaction58,935 46,936 116,193 95,871 
Interest income, net47,478 37,972 91,003 75,330 
Other14,139 33,608 66,799 66,630 
Total revenue2,931,769 2,468,804 5,764,362 4,886,636 
EXPENSE 
Advisory and commission1,819,027 1,448,763 3,552,514 2,819,397 
Compensation and benefits274,000 231,680 548,369 465,213 
Promotional136,125 102,565 262,744 200,788 
Depreciation and amortization70,999 58,377 138,157 114,431 
Occupancy and equipment69,529 65,005 135,793 125,178 
Interest expense on borrowings64,341 44,842 124,423 84,026 
Brokerage, clearing and exchange32,984 29,148 63,516 55,274 
Amortization of other intangibles30,607 26,741 60,159 50,833 
Professional services22,100 18,092 35,379 32,312 
Communications and data processing19,406 20,594 39,150 38,269 
Other62,580 34,178 99,895 67,599 
Total expense2,601,698 2,079,985 5,060,099 4,053,320 
INCOME BEFORE PROVISION FOR INCOME TAXES330,071 388,819 704,263 833,316 
PROVISION FOR INCOME TAXES86,271 103,299 171,699 208,912 
NET INCOME$243,800 $285,520 $532,564 $624,404 
EARNINGS PER SHARE 
Earnings per share, basic$3.26 $3.70 $7.13 $8.01 
Earnings per share, diluted$3.23 $3.65 $7.05 $7.90 
Weighted-average shares outstanding, basic74,725 77,234 74,644 77,988 
Weighted-average shares outstanding, diluted75,548 78,194 75,529 79,083 
See notes to unaudited condensed consolidated financial statements.
19
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Financial Condition
(In thousands, except share data)
(Unaudited)
ASSETSJune 30, 2024December 31, 2023
Cash and equivalents$1,318,894 $465,671 
Cash and equivalents segregated under federal or other regulations1,530,150 2,007,312 
Restricted cash109,618 108,180 
Receivables from clients, net563,923 588,585 
Receivables from brokers, dealers and clearing organizations74,432 50,069 
Advisor loans, net1,757,727 1,479,690 
Other receivables, net763,632 743,317 
Investment securities89,853 91,311 
Property and equipment, net1,066,395 933,091 
Goodwill1,860,062 1,856,648 
Other intangibles, net783,031 671,585 
Other assets1,586,010 1,390,021 
Total assets$11,503,727 $10,385,480 
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Client payables$1,963,988 $2,266,176 
Payables to brokers, dealers and clearing organizations212,394 163,337 
Accrued advisory and commission expenses payable240,370 216,541 
Corporate debt and other borrowings, net4,442,840 3,734,111 
Accounts payable and accrued liabilities461,277 485,963 
Other liabilities1,667,511 1,440,373 
Total liabilities8,988,380 8,306,501 
Commitments and contingencies (Note 10)
Common stock, $0.001 par value; 600,000,000 shares authorized; 130,746,590 shares and 130,233,328 shares issued at June 30, 2024 and December 31, 2023, respectively
131 130 
Additional paid-in capital2,038,216 1,987,684 
Treasury stock, at cost — 55,985,188 shares and 55,576,970 shares at June 30, 2024 and December 31, 2023, respectively
(4,101,955)(3,993,949)
Retained earnings4,578,955 4,085,114 
Total stockholders’ equity2,515,347 2,078,979 
Total liabilities and stockholders’ equity$11,503,727 $10,385,480 

See notes to unaudited condensed consolidated financial statements.
20
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders’ Equity
(In thousands)
(Unaudited)
Three Months Ended June 30, 2023
Additional
Paid-In
Capital		Retained
Earnings		Total
Stockholders’
Equity
 Common StockTreasury Stock
 SharesAmountSharesAmount
BALANCE — March 31, 2023130,086 $130 $1,933,988 51,749 $(3,159,714)$3,418,529 $2,192,933 
Net income— — — — — 285,520 285,520 
Issuance of common stock to settle restricted stock units28 — — 10 (1,994)— (1,994)
Treasury stock purchases— — — 1,777 (353,405)— (353,405)
Cash dividends on common stock - $0.30 per share
— — — — — (23,139)(23,139)
Stock option exercises and other28 — 1,422 (21)749 2,562 4,733 
Share-based compensation— — 17,418 — — — 17,418 
BALANCE — June 30, 2023130,142 $130 $1,952,828 53,515 $(3,514,364)$3,683,472 $2,122,066 
Three Months Ended June 30, 2024
Additional
Paid-In
Capital		Retained
Earnings		Total
Stockholders’
Equity
Common StockTreasury Stock
SharesAmountSharesAmount
BALANCE — March 31, 2024130,705 $131 $2,016,666 55,999 $(4,101,055)$4,354,139 $2,269,881 
Net income— — — — — 243,800 243,800 
Issuance of common stock to settle restricted stock units15 — — 6 (1,589)— (1,589)
Treasury stock purchases— — — — — — — 
Cash dividends on common stock - $0.30 per share
— — — — — (22,422)(22,422)
Stock option exercises and other27 — 901 (20)689 3,438 5,028 
Share-based compensation— 20,649 — — — 20,649 
BALANCE — June 30, 2024130,747 $131 $2,038,216 55,985 $(4,101,955)$4,578,955 $2,515,347 
Six Months Ended June 30, 2023
Additional
Paid-In
Capital
Retained
Earnings
Total
Stockholders’
Equity
Common StockTreasury Stock
SharesAmountSharesAmount
BALANCE — December 31, 2022129,656 $130 $1,912,886 50,408 $(2,846,536)$3,101,072 $2,167,522 
Net income— — — — — 624,404 624,404 
Issuance of common stock to settle restricted stock units396 — — 158 (38,596)— (38,596)
Treasury stock purchases— — — 2,983 (630,458)— (630,458)
Cash dividends on common stock - $0.60 per share
— — — — — (46,723)(46,723)
Stock option exercises and other90 — 3,888 (34)1,226 4,719 9,833 
Share-based compensation— — 36,054 — — — 36,054 
BALANCE — June 30, 2023130,142 $130 $1,952,828 53,515 $(3,514,364)$3,683,472 $2,122,066 
Six Months Ended June 30, 2024
Additional
Paid-In
Capital
Retained
Earnings
Total
Stockholders’
Equity
Common StockTreasury Stock
SharesAmountSharesAmount
BALANCE — December 31, 2023
130,233 $130 $1,987,684 55,577 $(3,993,949)$4,085,114 $2,078,979 
Net income— — — — — 532,564 532,564 
Issuance of common stock to settle restricted stock units368 — — 150 (39,318)— (39,318)
Treasury stock purchases— — — 296 (70,005)— (70,005)
Cash dividends on common stock - $0.60 per share
— — — — — (44,833)(44,833)
Stock option exercises and other146 1 6,548 (38)1,317 6,110 13,976 
Share-based compensation— — 43,984 — — — 43,984 
BALANCE — June 30, 2024
130,747 $131 $2,038,216 55,985 $(4,101,955)$4,578,955 $2,515,347 
See notes to unaudited condensed consolidated financial statements.
21

LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$532,564 $624,404 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization138,157 114,431 
Amortization of other intangibles60,159 50,833 
Amortization of debt issuance costs5,486 4,051 
Share-based compensation43,984 36,054 
Provision for credit losses9,594 7,834 
Deferred benefit for income taxes(65)(142)
Loan forgiveness132,993 100,891 
Other33,463 11,400 
Changes in operating assets and liabilities:
Receivables from clients, net25,330 (17,701)
Receivables from brokers, dealers and clearing organizations(24,363)(10,648)
Advisor loans, net(416,481)(217,793)
Other receivables, net(25,181)4,328 
Investment securities - trading2,862 2,211 
Other assets(151,553)(87,539)
Client payables(302,188)(606,260)
Payables to brokers, dealers and clearing organizations49,057 8,233 
Accrued advisory and commission expenses payable23,829 3,194 
Accounts payable and accrued liabilities(44,545)(61,614)
Other liabilities155,513 232,304 
Operating leases
(1,583)(1,578)
Net cash provided by operating activities
247,032 196,893 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures(249,946)(202,395)
Acquisitions, net of cash acquired(125,244)(300,320)
Purchases of securities classified as held-to-maturity(3,565)(2,442)
Proceeds from maturities of securities classified as held-to-maturity2,500 3,000 
Net cash used in investing activities(376,255)(502,157)

Continued on following page
22
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
20242023
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facilities280,000 607,000 
Repayments of revolving credit facilities(560,000)(320,000)
Repayment of senior secured term loans(5,350)(5,350)
Proceeds from senior unsecured notes998,325 — 
Payment of debt issuance costs(17,332)— 
Payment of contingent consideration(48,563)— 
Tax payments related to settlement of restricted stock units(39,318)(38,596)
Repurchase of common stock(70,005)(625,059)
Dividends on common stock(44,833)(46,723)
Proceeds from stock option exercises and other13,976 9,833 
Principal payment of finance leases and obligations(178)(118)
Net cash provided by (used in) financing activities
506,722 (419,013)
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH
377,499 (724,277)
CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH — Beginning of period2,581,163 3,137,270 
CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH — End of period$2,958,662 $2,412,993 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid$118,103 $84,000 
Income taxes paid$198,037 $75,239 
Cash paid for amounts included in the measurement of operating lease liabilities$14,284 $13,781 
Cash paid for amounts included in the measurement of finance lease liabilities$4,351 $4,276 
NONCASH DISCLOSURES:
Capital expenditures included in accounts payable and accrued liabilities$43,131 $13,317 
Lease assets obtained in exchange for operating lease liabilities$8,884 $10,408 
Contingent consideration liabilities recognized at acquisition date
$40,380 $45,387 
June 30,
20242023
Cash and equivalents$1,318,894 $761,187 
Cash and equivalents segregated under federal or other regulations1,530,150 1,548,065 
Restricted cash109,618 103,741 
Total cash and equivalents, cash and equivalents segregated under federal or other regulations and restricted cash shown in the statements of cash flows$2,958,662 $2,412,993 
See notes to unaudited condensed consolidated financial statements.
23
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)


NOTE 1 - ORGANIZATION AND DESCRIPTION OF THE COMPANY
LPL Financial Holdings Inc. (“LPLFH”), a Delaware holding corporation, together with its consolidated subsidiaries (collectively, the “Company”), provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at institutions (collectively, “advisors”) in the United States. Through its custody and clearing platform, using both proprietary and third-party technology, the Company provides access to diversified financial products and services, enabling its advisors to offer personalized financial advice and brokerage services to retail investors (their “clients”). The Company’s most significant, wholly owned subsidiaries are described below:
•LPL Holdings, Inc. (“LPLH” or “Parent”) is an intermediate holding company and directly or indirectly owns 100% of the issued and outstanding common equity interests of all of LPLFH’s indirect subsidiaries, including a captive insurance subsidiary that underwrites insurance for various legal and regulatory risks of the Company.
•LPL Financial LLC (“LPL Financial”), with primary offices in San Diego, California; Fort Mill, South Carolina; Boston, Massachusetts; and Austin, Texas is a clearing broker-dealer and an investment advisor that principally transacts business for its advisors and institutions on behalf of their clients in a broad array of financial products and services. LPL Financial is licensed to operate in all 50 states, Washington D.C., Puerto Rico and the U.S. Virgin Islands.
•LPL Insurance Associates, Inc. operates as an insurance brokerage general agency that offers life and disability insurance products and services for LPL Financial advisors.
•AW Subsidiary, Inc. is a holding company for AdvisoryWorld and Blaze Portfolio Systems LLC (“Blaze”). AdvisoryWorld offers technology products, including proposal generation, investment analytics and portfolio modeling, to both the Company’s advisors and external clients in the wealth management industry. Blaze provides an advisor-facing trading and portfolio rebalancing platform.
•PTC Holdings, Inc. (“PTCH”) is a holding company for The Private Trust Company, N.A. (“PTC”). PTC is chartered as a non-depository limited purpose national bank, providing a wide range of trust, investment management oversight and custodial services for estates and families. PTC, together with its affiliate Fiduciary Trust Company of New Hampshire, also provides Individual Retirement Account (“IRA”) custodial services for LPL Financial.
•LPL Employee Services, LLC and its subsidiary, Allen & Company of Florida, LLC, along with their affiliate Financial Resources Group Investment Services, LLC (“FRGIS”), provide primary support for the Company’s employee advisor affiliation model.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
These unaudited condensed consolidated financial statements (“condensed consolidated financial statements”) are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), which require the Company to make estimates and assumptions regarding the valuation of certain financial instruments, acquisitions, goodwill and other intangibles, allowance for credit losses on receivables, share-based compensation, accruals for liabilities, income taxes, revenue and expense accruals and other matters that affect the condensed consolidated financial statements and related disclosures. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the results of operations for the interim periods presented. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the condensed consolidated financial statements.
The condensed consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the related notes for the year
24
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

ended December 31, 2023, contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”).
Recently Issued or Adopted Accounting Pronouncements
There are no relevant recently issued accounting pronouncements that would materially impact the Company’s condensed consolidated financial statements and related disclosures. There were no new accounting pronouncements adopted during the six months ended June 30, 2024 that materially impacted the Company’s condensed consolidated financial statements and related disclosures.
NOTE 3 - REVENUE
Commission
The following table presents total commission revenue disaggregated by product category (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Commission revenue
Annuities$469,100 $358,845 $905,573 $702,906 
Mutual funds187,432 165,194 373,972 330,232 
Fixed income53,192 36,183 101,833 71,450 
Equities34,434 27,474 69,885 53,364 
Other42,888 35,190 82,229 68,659 
Total commission revenue
$787,046 $622,886 $1,533,492 $1,226,611 
The following table presents sales-based and trailing commission revenue disaggregated by product category (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Commission revenue
Sales-based
Annuities
$260,188 $172,540 $489,265 $334,716 
Fixed income
53,192 36,183 101,833 71,450 
Mutual funds
42,981 36,431 86,477 73,908 
Equities
34,434 27,474 69,885 53,364 
Other
32,275 26,333 60,845 51,595 
Total sales-based revenue
$423,070 $298,961 $808,305 $585,033 
Trailing
Annuities$208,912 $186,305 $416,308 $368,190 
Mutual funds144,451 128,763 287,495 256,324 
Other10,613 8,857 21,384 17,064 
Total trailing revenue$363,976 $323,925 $725,187 $641,578 
Total commission revenue
$787,046 $622,886 $1,533,492 $1,226,611 
25
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

Asset-Based
The following table sets forth asset-based revenue disaggregated by product category (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Asset-based revenue
Client cash
$341,475 $378,415 $693,857 $796,690 
Sponsorship programs
141,687 109,256 275,788 211,726 
Recordkeeping
117,846 102,044 232,084 203,047 
Total asset-based revenue$601,008 $589,715 $1,201,729 $1,211,463 
Service and Fee
The following table sets forth service and fee revenue disaggregated by recognition pattern (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Service and fee revenue
Over time(1)
$105,543 $94,587 $208,079 $187,616 
Point-in-time(2)
29,457 28,535 59,093 54,493 
Total service and fee revenue$135,000 $123,122 $267,172 $242,109 
_______________________________
(1)Service and fee revenue recognized over time includes revenue such as error and omission insurance fees, IRA custodian fees, and technology fees.
(2)Service and fee revenue recognized at a point-in-time includes revenue such as IRA termination fees, account fees, and confirmation fees.
Unearned Revenue
The Company records unearned revenue when cash payments are received or due in advance of the Company’s performance obligations, including amounts which are refundable. Unearned revenue increased from $156.2 million as of December 31, 2023 to $208.3 million as of June 30, 2024. The increase in unearned revenue for the six months ended June 30, 2024 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations, partially offset by $154.6 million of revenue recognized during the six months ended June 30, 2024 that was included in the unearned revenue balance as of December 31, 2023.
The Company receives cash in advance for advisory services to be performed and conferences to be held in future periods. For advisory services, revenue is recognized as the Company provides the administration, brokerage and execution services over time to satisfy the performance obligations. For conference revenue, the Company recognizes revenue as the conferences are held.
NOTE 4 - ACQUISITIONS
Acquisitions in the Current Period
Entered into a definitive purchase agreement to acquire Atria Wealth Solutions, Inc (“Atria”)
On February 13, 2024, the Company announced that it had entered into a definitive purchase agreement to acquire Atria, a wealth management solutions holding company headquartered in New York. As part of the agreement, Atria will transition its brokerage and advisory assets to the Company’s platform. The Company expects to close the transaction in the second half of 2024 for an initial purchase price of approximately $805 million and potential contingent consideration of up to $230 million based on future retention and up to approximately $100 million if other milestones, including the conversion of off-platform assets to the Company’s platform, are achieved. The
26
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

closing and the conversion, which is expected to be completed in mid-2025, are both subject to receipt of regulatory approval and other closing conditions.
Other Acquisitions
During the six months ended June 30, 2024, the Company completed nine acquisitions, eight of which were completed under the Liquidity & Succession solution in which the Company buys advisor practices. Certain of these acquisitions have been accounted for as business combinations and certain have been accounted for as asset acquisitions.
Business Combinations
The Company accounted for three acquisitions under the acquisition method of accounting for business combinations. Total consideration for these transactions was $80.6 million, which included $49.9 million of cash, and liabilities of $30.7 million for contingent consideration, which represents the acquisition date fair value of the additional cash consideration that may be transferred to the sellers if certain asset growth is achieved in the one to seven years following the closing. This contingent consideration may be settled for amounts up to $125.6 million in the years following the closing.
At June 30, 2024, the Company provisionally allocated $20.5 million of the purchase price to goodwill and $60.1 million to client relationships acquired as part of these acquisitions. The goodwill primarily includes synergies expected to result from combining operations and is deductible for tax purposes. The client relationships were valued using the income approach and assigned useful lives of 14 years. See Note 7 – Goodwill and Other Intangibles, Net, for additional information.
Asset Acquisitions
The Company accounted for six other acquisitions as asset acquisitions. These transactions included total initial consideration of $77.4 million, including $48.5 million which was allocated to advisor relationships and $28.9 million which was allocated to client relationships. These relationships were assigned useful lives of 14 years and the related transactions include potential contingent payments of up to $36.9 million in the years following the closing if certain asset growth is achieved. The Company has not recognized a liability for these contingent payments as the amounts to be paid will be uncertain until a future measurement date. See Note 7 – Goodwill and Other Intangibles, Net, for additional information.
Acquisitions Completed in Prior Periods
Acquisition of Financial Resources Group Investment Services, LLC
On January 31, 2023, the Company acquired Financial Resources Group Investment Services, LLC, a broker-dealer and independent branch office, in order to expand its addressable markets and complement organic growth. The Company accounted for the acquisition under the acquisition method of accounting for business combinations, and total consideration for the transaction was $189.2 million, which included an initial cash payment of $143.8 million and a liability of $45.4 million for contingent consideration. The Company allocated $129.7 million of the purchase price to goodwill, $53.5 million to definite-lived intangible assets, $9.0 million to cash acquired and the remainder to other assets acquired and liabilities assumed as part of the acquisition. The goodwill primarily includes synergies expected to result from combining operations and is deductible for tax purposes. See Note 7 – Goodwill and Other Intangibles, Net, for additional information.
Other Acquisitions
During the year ended December 31, 2023, the Company completed a total of 19 acquisitions under the Liquidity & Succession solution. The Company also completed the acquisition of Boenning & Scattergood’s Private Client Group on January 31, 2023. Certain of these acquisitions have been accounted for as business combinations and certain have been accounted for as asset acquisitions.
27
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

Business Combinations
The Company accounted for five Liquidity & Succession transactions under the acquisition method of accounting for business combinations during the year ended December 31, 2023. Total consideration for these transactions was $190.2 million, which included initial consideration of $147.4 million, including $140.3 million of cash and a liability of $42.7 million for contingent consideration. At December 31, 2023, the Company allocated $84.5 million of the purchase price to goodwill and $105.7 million to the definite-lived intangible assets acquired as part of these acquisitions. The goodwill primarily includes synergies expected to result from combining operations and is deductible for tax purposes.
The Company recorded purchase accounting adjustments during the six months ended June 30, 2024 related to acquisitions which were completed during the fourth quarter of 2023 and for which the Company’s purchase accounting analysis was ongoing. These adjustments resulted in a $39.4 million increase in customer relationships, a $9.7 million increase in liabilities for contingent consideration, a $12.5 million decrease in technology, and a $17.1 million decrease in goodwill. The intangible assets are comprised primarily of client relationships which were assigned useful lives of 15 years. See Note 7 – Goodwill and Other Intangibles, Net, for additional information.
Asset Acquisitions
The Company accounted for 15 other acquisitions as asset acquisitions during the year ended December 31, 2023. These transactions included initial consideration of $180.4 million, including $142.3 million of which was allocated to client relationships and $38.1 million of which was allocated to advisor relationships. These transactions include potential contingent payments of up to $73.1 million in the three years following the closing if certain asset growth is achieved. The Company has not recognized a liability for these contingent payments as the amounts to be paid will be uncertain until a future measurement date. See Note 7 - Goodwill and Other Intangibles, Net, for additional information.
NOTE 5 - FAIR VALUE MEASUREMENTS
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:    
Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
There have been no transfers of assets or liabilities between these fair value measurement classifications during the six months ended June 30, 2024 or 2023.
The Company’s fair value measurements are evaluated within the fair value hierarchy, based on the nature of inputs used to determine the fair value at the measurement date. At June 30, 2024 and December 31, 2023, the Company had the following financial assets and liabilities that are measured at fair value on a recurring basis:
Cash Equivalents — The Company’s cash equivalents include money market funds and U.S. government obligations, which are short term in nature with readily determinable values derived from active markets.
Cash Equivalents Segregated Under Federal or Other Regulations — The Company’s cash equivalents segregated under federal or other regulations include U.S. treasury bills, which are short term in nature with readily determinable values derived from active markets.
28
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

Trading Securities and Securities Sold, But Not Yet Purchased — The Company’s trading securities consist of house account model portfolios established and managed for the purpose of benchmarking the performance of its fee-based advisory platforms and temporary positions resulting from the processing of client transactions.
The Company uses prices obtained from independent third-party pricing services to measure the fair value of its trading securities. Prices received from the pricing services are validated when security prices move beyond a certain deviation threshold using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices and review of other relevant market data including implied yields of major categories of securities. In general, these quoted prices are derived from active markets for identical assets or liabilities. When quoted prices in active markets for identical assets and liabilities are not available, the quoted prices are based on similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. For negotiable certificates of deposit and treasury securities, the Company utilizes market-based inputs, including observable market interest rates that correspond to the remaining maturities or the next interest reset dates. At June 30, 2024 and December 31, 2023, the Company did not adjust prices received from the independent third-party pricing services.
Other Assets — The Company’s other assets include: (1) deferred compensation plan assets that are invested in life insurance, money market and other mutual funds, which are actively traded and valued based on quoted market prices; and (2) certain non-traded real estate investment trusts, which are valued using quoted prices for identical or similar securities and other inputs that are observable or can be corroborated by observable market data.
Fractional Shares — The Company’s investment in fractional shares held by customers is reflected in other assets while the related purchase obligation for such shares is reflected in other liabilities. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its investment in fractional shares held by customers and the related repurchase obligation. Prices received from the pricing services are validated using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices and review of other relevant market data including implied yields of major categories of securities. At June 30, 2024 and December 31, 2023, the Company did not adjust prices received from the independent third-party pricing services.
Contingent Consideration — The Company measures contingent consideration liabilities at fair value at the acquisition date, as applicable, and thereafter on a recurring basis using unobservable (Level 3) inputs. These contingent consideration liabilities are reflected in other liabilities. See Note 4 - Acquisitions for additional information.
Level 3 Recurring Fair Value Measurements
The Company determines the fair value for its contingent consideration obligations using Monte-Carlo simulation and discounted cash flows models. Contingent payments are estimated by applying significant unobservable inputs, including forecasted growth rates applied to project future revenue or asset growth and discount rates which are based on the cost of debt and equity. These projections are measured against the performance targets specified in each respective acquisition agreement, which may include growth in assets under management, net new assets, asset conversion or retention, or revenue growth. Significant increases or decreases in the Company’s forecasted growth rates over the measurement period or discount rates would result in a higher or lower fair value measurement.
29
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table summarizes inputs used in the measurement of contingent consideration (dollars in thousands):
Quantitative Information About Level 3 Fair Value Measurements
June 30, 2024TypeValuation TechniquesUnobservable InputsRange
$129,848 Contingent Consideration
Monte-Carlo Simulation Model
Forecasted Growth Rates
12.0% -29.5%
Discount Rate
13.3%- 15.3%
Equivalency Rate(1)
5.3% - 6.3%
— 
Contingent Consideration
Discounted Cash Flow Model
Discount Rate
9.3%
$129,848 
____________________
(1)Equivalency rate is defined as the prevailing market interest rate used to discount future payments.
Quantitative Information About Level 3 Fair Value Measurements
December 31, 2023TypeValuation TechniquesUnobservable InputsRange
$114,844 Contingent Consideration
Monte-Carlo Simulation Model
Forecasted Growth Rates
12.0% - 29.5%
Discount Rate
13.6%- 15.7%
4,000 
Contingent Consideration
Discounted Cash Flow Model
Discount Rate
9.3%
$118,844 


The following table summarizes the changes in fair value for the Company’s Level 3 liabilities during the periods presented (in thousands):

Three Months Ended June 30,
Six Months Ended June 30,
2024202320242023
Balance - Beginning of period
$87,262 $45,280 $118,844 $3,860 
Additions
20,462 4,053 40,380 45,387 
Payments
(2,500)— (54,000)— 
Fair value adjustments
24,624 54 24,624 140 
Balance - End of period
$129,848 $49,387 $129,848 $49,387 

30
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

Recurring Fair Value Measurements
The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
June 30, 2024Level 1Level 2Level 3Total
Assets    
Cash equivalents$398,185 $— $— $398,185 
Cash equivalents segregated under federal or other regulations645,568 — — 645,568 
Restricted cash
103,038 — — 103,038 
Investment securities — trading:    
Mutual funds44,651 — — 44,651 
U.S. treasury obligations28,401 — — 28,401 
Equity securities137 — — 137 
Money market funds119 — — 119 
Debt securities— 155 — 155 
Total investment securities — trading73,308 155 — 73,463 
Other assets:
Deferred compensation plan768,321 — — 768,321 
Fractional shares — investment(1)
210,930 — — 210,930 
Other investments— 4,201 — 4,201 
Total other assets:979,251 4,201 — 983,452 
Total assets at fair value$2,199,350 $4,356 $— $2,203,706 
Liabilities    
Other liabilities:
Securities sold, but not yet purchased:    
Equity securities$160 $— $— $160 
Mutual funds
2 — — 2 
Total securities sold, but not yet purchased162 — — 162 
Fractional shares — repurchase obligation(1)
210,930 — — 210,930 
Contingent consideration
— — 129,848 129,848 
Total other liabilities211,092 — 129,848 340,940 
Total liabilities at fair value$211,092 $— $129,848 $340,940 
____________________
(1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s dividend reinvestment program (“DRIP”).


31
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
December 31, 2023Level 1Level 2Level 3Total
Assets
Cash equivalents$166 $— $— $166 
Cash equivalents segregated under federal or other regulations720,077 — — 720,077 
Restricted cash
103,226 — — 103,226 
Investment securities — trading:
Mutual funds50,518 — — 50,518 
U.S. treasury obligations25,388 — — 25,388 
Money market funds107 — — 107 
Equity securities43 — — 43 
Debt securities— 32 — 32 
Total investment securities — trading76,056 32 — 76,088 
Other assets:
Deferred compensation plan677,548 — — 677,548 
Fractional shares — investment(1)
177,131 — — 177,131 
Other investments— 3,960 — 3,960 
Total other assets854,679 3,960 — 858,639 
Total assets at fair value$1,754,204 $3,992 $— $1,758,196 
Liabilities
Other liabilities:
Securities sold, but not yet purchased:
Equity securities$487 $— $— $487 
Mutual funds55 — — 55 
Total securities sold, but not yet purchased542 — — 542 
Fractional shares — repurchase obligation(1)
177,131 — — 177,131 
    Contingent consideration
— — 118,844 118,844 
Total other liabilities177,673 — 118,844 296,517 
Total liabilities at fair value$177,673 $— $118,844 $296,517 
____________________
(1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP.
32
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

Fair Value of Financial Instruments Not Measured at Fair Value
The following tables summarize the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not measured at fair value (in thousands):
June 30, 2024Carrying ValueLevel 1Level 2Level 3Total Fair Value
Assets    
Cash$920,709 $920,709 $— $— $920,709 
Cash segregated under federal or other regulations884,582 884,582 — — 884,582 
Restricted cash6,580 6,580 — — 6,580 
Receivables from clients, net563,923 — 563,923 — 563,923 
Receivables from brokers, dealers and clearing organizations74,432 — 74,432 — 74,432 
Advisor repayable loans, net(1)
356,851 — — 271,546 271,546 
Other receivables, net763,632 — 763,632 — 763,632 
Investment securities — held-to-maturity securities16,390 — 16,240 — 16,240 
Other assets:
Securities borrowed3,726 — 3,726 — 3,726 
Deferred compensation plan(2)
9,503 9,503 — — 9,503 
Other investments(3)
5,298 — 5,298 — 5,298 
Total other assets18,527 9,503 9,024 — 18,527 
Liabilities
Client payables$1,963,988 $— $1,963,988 $— $1,963,988 
Payables to brokers, dealers and clearing organizations212,394 — 212,394 — 212,394 
Corporate debt and other borrowings, net4,442,840 — 4,396,340 — 4,396,340 
December 31, 2023Carrying ValueLevel 1Level 2Level 3Total Fair Value
Assets
Cash$465,505 $465,505 $— $— $465,505 
Cash segregated under federal or other regulations1,287,235 1,287,235 — — 1,287,235 
Restricted cash4,954 4,954 — — 4,954 
Receivables from clients, net588,585 — 588,585 — 588,585 
Receivables from brokers, dealers and clearing organizations50,069 — 50,069 — 50,069 
Advisor repayable loans, net(1)
340,985 — — 236,888 236,888 
Other receivables, net743,317 — 743,317 — 743,317 
Investment securities - held-to-maturity securities15,223 — 15,079 — 15,079 
Other assets:
Securities borrowed4,334 — 4,334 — 4,334 
Deferred compensation plan(2)
6,217 6,217 — — 6,217 
Other investments(3)
4,695 — 4,695 — 4,695 
Total other assets15,246 6,217 9,029 — 15,246 
Liabilities
Client payables$2,266,176 $— $2,266,176 $— $2,266,176 
Payables to brokers, dealers and clearing organizations163,337 — 163,337 — 163,337 
Corporate debt and other borrowings, net3,734,111 — 3,680,199 — 3,680,199 
__________________
(1)Includes repayable loans and forgivable loans which have converted to repayable upon advisor termination or change in agreed upon terms.
(2)Includes cash balances awaiting investment or distribution to plan participants.
(3)Other investments include Depository Trust Company common shares and Federal Reserve stock.
33
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 6 - INVESTMENT SECURITIES
The Company’s investment securities include debt and equity securities that the Company has classified as trading securities, which are carried at fair value, as well as investments in U.S. government notes, which are held by The Private Trust Company, N.A. to satisfy minimum capital requirements of the OCC. These securities are recorded at amortized cost and classified as held-to-maturity as the Company has both the intent and ability to hold these investments to maturity.

The following table summarizes investment securities (in thousands):
 June 30, 2024December 31, 2023
Trading securities — at fair value:  
Mutual funds$44,651 $50,518 
U.S. treasury obligations28,401 25,388 
Equity securities137 43 
Money market funds119 107 
Debt securities155 32 
Total trading securities$73,463 $76,088 
Held-to-maturity securities — at amortized cost:
U.S. government notes$16,390 $15,223 
Total held-to-maturity securities$16,390 $15,223 
Total investment securities$89,853 $91,311 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
At June 30, 2024, the held-to-maturity securities were scheduled to mature as follows (in thousands):
Within one yearAfter one but within five yearsAfter five but within ten yearsAfter ten yearsTotal
U.S. government notes — at amortized cost$2,494 $13,896 $— $— $16,390 
U.S. government notes — at fair value$2,471 $13,769 $— $— $16,240 
NOTE 7 - GOODWILL AND OTHER INTANGIBLES, NET
A summary of the activity impacting goodwill is presented below (in thousands):
Balance at December 31, 2022
$1,642,468 
Goodwill acquired214,180 
Balance at December 31, 2023
1,856,648 
Purchase accounting adjustments
(17,120)
Goodwill acquired20,534 
Balance at June 30, 2024
$1,860,062 
The Company completed various acquisitions, which were accounted for under the acquisition method of accounting for business combinations and as asset acquisitions, and recorded purchase accounting adjustments during the periods presented. See Note 4 - Acquisitions, for additional information.
34
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

The components of other intangibles, net were as follows at June 30, 2024 (in thousands):
Weighted-Average Life 
Remaining
(in years)		Gross
 Carrying 
Value		 Accumulated AmortizationNet
 Carrying 
Value
Definite-lived intangibles, net(1):
    
Advisor and institution relationships
8.2$984,677 $(651,312)$333,365 
Product sponsor relationships1.7234,086 (215,031)19,055 
Client relationships12.8448,521 (66,338)382,183 
Technology8.420,930 (12,321)8,609 
Total definite-lived intangible assets, net $1,688,214 $(945,002)$743,212 
Other indefinite-lived intangibles:    
Trademark and trade name   39,819 
Total other intangibles, net   $783,031 
_______________________________
(1)During the six months ended June 30, 2024, the Company completed various acquisitions. See Note 4 - Acquisitions, for additional information.
The components of other intangibles, net were as follows at December 31, 2023 (in thousands):
Weighted-Average Life 
Remaining
(in years)		Gross
 Carrying 
Value		 Accumulated AmortizationNet
 Carrying 
Value
Definite-lived intangibles, net(1):
    
Advisor and institution relationships
7.3$935,478 $(614,277)$321,201 
Product sponsor relationships2.2234,086 (209,076)25,010 
Client relationships
12.6313,585 (51,328)262,257 
Technology8.733,460 (10,162)23,298 
Total definite-lived intangibles, net$1,516,609 $(884,843)$631,766 
Other indefinite-lived intangibles:
Trademark and trade name39,819 
Total other intangibles, net$671,585 
_______________________________
(1)    During the year ended December 31, 2023, the Company completed various acquisitions. See Note 4 - Acquisitions, for additional information.
Total amortization of other intangibles was $30.6 million and $26.7 million for the three months ended June 30, 2024 and 2023, respectively, and $60.2 million and $50.8 million for the six months ended June 30, 2024 and 2023, respectively. Future amortization is estimated as follows (in thousands):
2024 - remainder$61,211 
2025113,428 
202675,172 
202770,023 
202864,231 
Thereafter359,147 
Total
$743,212 

35
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 8 - OTHER ASSETS AND OTHER LIABILITIES
The components of other assets and other liabilities were as follows (dollars in thousands):
 June 30, 2024December 31, 2023
Other assets:
Deferred compensation$777,824 $683,765 
Prepaid assets151,447 173,039 
Fractional shares — investment(1)
210,930 177,131 
Deferred tax assets, net167,515 167,450 
Operating lease assets93,912 93,797 
Debt issuance costs, net16,665 9,065 
Other167,717 85,774 
Total other assets$1,586,010 $1,390,021 
Other liabilities:
Deferred compensation$775,690 $684,178 
Unearned revenue(2)
208,257 156,214 
Fractional shares — repurchase obligation(1)
210,930 177,131 
Operating lease liabilities122,008 123,477 
Finance lease liabilities105,287 105,465 
Taxes payable
65,330 24,522 
Contingent consideration
129,848 118,844 
Other50,161 50,542 
Total other liabilities$1,667,511 $1,440,373 
_______________________________
(1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP program.
(2)See Note 3 - Revenue for further information.



36
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 9 - CORPORATE DEBT AND OTHER BORROWINGS, NET
The Company’s outstanding corporate debt and other borrowings, net were as follows (in thousands):
June 30, 2024December 31, 2023
Corporate Debt
 
Balance
Applicable
Margin
Interest Rate
 
Balance
Applicable
Margin
Interest rateMaturity
Term Loan B(1)
$1,021,850 
SOFR+185 bps
7.179 %$1,027,200 
SOFR+185 bps
7.206 %11/12/2026
2027 Senior Notes(1)
500,000 Fixed Rate5.700 %— — — %5/20/2027
2027 Senior Notes(1)
400,000 Fixed Rate4.625 %400,000 Fixed Rate4.625 %11/15/2027
2028 Senior Notes(1)
750,000 Fixed Rate6.750 %750,000 
Fixed Rate
6.750 %11/17/2028
2029 Senior Notes(1)
900,000 Fixed Rate4.000 %900,000 Fixed Rate4.000 %3/15/2029
2031 Senior Notes(1)
400,000 Fixed Rate4.375 %400,000 Fixed Rate4.375 %5/15/2031
2034 Senior Notes(1)
500,000 Fixed Rate6.000 %— — — %5/20/2034
Total Corporate Debt4,471,850 3,477,200 
Less: Unamortized Debt Issuance Cost(29,010)(23,089)
Corporate debt, net$4,442,840 $3,454,111 
Other Borrowings
Revolving Credit Facility
— 
ABR+37.5 bps / SOFR+147.5 bps
8.875 %280,000 
ABR+37.5 bps / SOFR+147.5 bps
6.966 %5/20/2029
Total other borrowings$— $280,000 
Corporate Debt and Other Borrowings, Net$4,442,840 $3,734,111 
_______________________________
(1)No leverage or interest coverage maintenance covenants.

The following table presents amounts outstanding and available under the Company’s external lines of credit at June 30, 2024 (in millions):
DescriptionBorrowerMaturity DateOutstandingAvailable
Senior secured, revolving credit facilityLPL Holdings, Inc.May 2029$— $2,250 
Broker-dealer revolving credit facilityLPL Financial LLCMay 2025$— $1,000 
Unsecured, uncommitted lines of creditLPL Financial LLC
None
$— $75 
Unsecured, uncommitted lines of creditLPL Financial LLC
September 2024
$— $50 
Secured, uncommitted lines of creditLPL Financial LLCMarch 2025$— $75 
Secured, uncommitted lines of creditLPL Financial LLCNone$— unspecified
Secured, uncommitted lines of creditLPL Financial LLCNone$— unspecified
37
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

Issuance of 2027 Senior Notes and 2034 Senior Notes
On May 20, 2024, LPLH issued $500.0 million in aggregate principal amount of 5.700% senior notes due 2027 (“2027 Senior Notes”) and $500.0 million in aggregate principal amount of 6.000% senior notes due 2034 (the “2034 Senior Notes” and, together with the 2027 Notes, the “Senior Notes”). The Senior Notes are unsecured obligations of the Company and are fully and unconditionally guaranteed on a senior unsecured basis by LPLFH. The Company used a portion of the proceeds from the issuance to repay borrowings made under its senior secured revolving credit facility and intends to use a portion of the proceeds to finance the Atria acquisition.
The 2027 Senior Notes will mature on May 20, 2027, and interest is payable semi-annually. The Company may redeem all or part of the 2027 Senior Notes on or prior to April 20, 2027 at a redemption price that is equal to the greater of: (i) the remaining scheduled payments of principal and interest discounted at the Treasury Rate (as defined in the Second Supplemental Indenture dated May 20, 2024) plus 20 basis points less interest accrued to the redemption date, and (ii) 100% of the principal amount of the 2027 Senior Notes to be redeemed plus accrued interest. On or after April 20, 2027, the Company may redeem the 2027 Senior Notes at 100% of the principal amount of the notes to be redeemed plus accrued interest. The 2027 Senior Notes are also subject to a special mandatory redemption if the Atria acquisition is terminated or does not occur before March 7, 2025, in which case, the Company will be required to redeem all of the 2027 Senior Notes at a redemption price equal to 101% of the aggregate principal, plus accrued and unpaid interest.
The 2034 Senior Notes will mature on May 20, 2034 and interest is payable semi-annually. The Company may redeem all or part of the 2034 Senior Notes on or prior to February 20, 2034 at a redemption price that is equal to the greater of: (i) the remaining scheduled payments of principal and interest discounted at the Treasury Rate (as defined in the Third Supplemental Indenture dated May 20, 2024) plus 25 basis points less interest accrued to the redemption date, and (ii) 100% of the principal amount of the 2034 Senior Notes to be redeemed plus accrued interest. On or after February 20, 2034, the Company may redeem the 2034 Senior Notes at 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest. The 2034 Notes will not be subject to any special mandatory redemption if the Atria acquisition is not completed.
In connection with the issuance of the Senior Notes, the Company incurred $7.1 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition.
Issuance of 2028 Senior Notes
LPLH issued $750.0 million in aggregate principal amount of 6.750% senior notes on November 17, 2023 at 99.929% (“2028 Senior Notes”). The 2028 Senior Notes are unsecured obligations that will mature on November 17, 2028, and are fully and unconditionally guaranteed on a senior unsecured basis by LPLFH. The Company used the proceeds from the issuance to repay borrowings made under its senior secured revolving credit facility and for general corporate purposes. In connection with the issuance of the 2028 Senior Notes, the Company incurred $6.3 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition.
Credit Agreement and Parent Revolving Credit Facility
On March 13, 2023, LPLFH and LPLH entered into a sixth amendment agreement to the Company’s amended and restated credit agreement (the “Credit Agreement”), which, among other things, replaced LIBOR with SOFR.
On May 20, 2024, LPLH amended its revolving credit facility to, among other things, increase the maximum borrowing from $2.0 billion to $2.25 billion and extend the maturity of the revolving credit facility to May 2029. In connection with the amendment of the credit facility, LPLH incurred $8.6 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition.
The Credit Agreement subjects the Company to certain financial and non-financial covenants. As of June 30, 2024, the Company was in compliance with such covenants.

38
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

Broker-Dealer Revolving Credit Facility
On May 20, 2024, LPL Financial, the Company’s broker-dealer subsidiary, renewed its revolving credit facility to extend the maturity of the revolving credit facility to May 2025. The revolving credit facility allows for a maximum borrowing of up to $1.0 billion and borrowings under the credit facility bear interest at a rate per annum equal to 1.25% per annum plus the greatest of (i) SOFR plus 0.10%, (ii) the effective federal funds rate and (iii) the overnight bank funding rate, in each case, as such rate is administered or determined by the Federal Reserve Bank of New York from time to time. In connection with the renewal of the credit facility, LPL Financial incurred $1.6 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition. The broker-dealer credit agreement subjects LPL Financial to certain financial and non-financial covenants. LPL Financial was in compliance with such covenants as of June 30, 2024.
Other External Lines of Credit
LPL Financial maintained five uncommitted lines of credit as of June 30, 2024. Two of the lines have unspecified limits, which are primarily dependent on LPL Financial’s ability to provide sufficient collateral. The other three lines have a total limit of $200.0 million, which allow for uncollateralized borrowings. There were no balances outstanding under these lines at June 30, 2024 or December 31, 2023.
NOTE 10 - COMMITMENTS AND CONTINGENCIES
Service and Development Contracts 
The Company is party to certain long-term contracts for systems and services that enable back-office trade processing and clearing for its product and service offerings.
Guarantees 
The Company occasionally enters into contracts that contingently require it to indemnify certain parties against third-party claims. The terms of these obligations vary and, because a maximum obligation is not explicitly stated, the Company has determined that it is not possible to make an estimate of the amount that it could be obligated to pay under such contracts.
LPL Financial provides guarantees to securities clearing houses and exchanges under their standard membership agreements, which require a member to guarantee the performance of other members. Under these agreements, if a member becomes unable to satisfy its obligations to the clearing houses and exchanges, all other members would be required to meet any shortfall. The Company’s liability under these arrangements is not quantifiable and could exceed the cash and securities it has posted as collateral. However, the potential requirement for the Company to make payments under these agreements is remote. Accordingly, no liability has been recognized for these transactions.
Loan Commitments 
From time to time, LPL Financial makes loans to advisors and institutions, primarily to newly recruited advisors and institutions to assist in the transition process, which may be forgivable. Due to timing differences, LPL Financial may make commitments to issue such loans prior to actually funding them. These commitments are generally contingent upon certain events occurring, including but not limited to the advisor or institution joining LPL Financial. LPL Financial had no significant unfunded loan commitments at June 30, 2024 or December 31, 2023.
Legal and Regulatory Matters
The Company is subject to extensive regulation and supervision by U.S. federal and state agencies and various self-regulatory organizations. The Company and its advisors periodically engage with such agencies and organizations, in the context of examinations or otherwise, to respond to inquiries, informational requests and investigations. From time to time, such engagements result in regulatory complaints or other matters, the resolution of which has in the past and may in the future include fines, customer restitution and other remediation. Assessing the probability of a loss occurring and the timing and amount of any loss related to a legal proceeding or regulatory matter is inherently difficult. While the Company exercises significant and complex judgments to make certain estimates presented in its condensed consolidated financial statements, there are particular uncertainties and complexities involved when assessing the potential outcomes of legal proceedings and regulatory matters. The Company’s assessment process considers a variety of factors and assumptions, which may include: the procedural
39
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

status of the matter and any recent developments; prior experience and the experience of others in similar matters; the size and nature of potential exposures; available defenses; the progress of fact discovery; the opinions of counsel and experts; or the potential opportunities for settlement and the status of any settlement discussions. The Company monitors these factors and assumptions for new developments and re-assesses the likelihood that a loss will occur and the estimated range or amount of loss, if those amounts can be reasonably determined. The Company has established an accrual for those legal proceedings and regulatory matters for which a loss is both probable and the amount can be reasonably estimated.
In October 2022, the Company received a request for information from the SEC in connection with an investigation of the Company’s compliance with records preservation requirements for business-related electronic communications stored on personal devices or messaging platforms that have not been approved by the Company. In 2023, the SEC proposed a potential settlement, under which the Company would pay a $50.0 million civil monetary penalty. As a result, the Company recorded $40.0 million in other expense in the consolidated statements of income for the year ended December 31, 2023 to reflect the amount of the penalty that is not covered by the Company’s captive insurance subsidiary. On March 22, 2024, the Company reached a settlement in principle with the staff of the SEC to resolve its civil investigation. The Company expects to pay the civil monetary penalty of $50.0 million during the second half of 2024. The settlement in principle remains subject to approval by the SEC.

In July 2024, a putative class action lawsuit was filed against LPL Financial in federal district court alleging certain violations of law in connection with its cash sweep programs. The Company intends to defend vigorously against the lawsuit.
Third-Party Insurance
The Company maintains third-party insurance coverage for certain potential legal proceedings, including those involving certain client claims. With respect to such client claims, the estimated losses on many of the pending matters are less than the applicable deductibles of the insurance policies.
Self-Insurance
The Company has self-insurance for certain potential liabilities through its captive insurance subsidiary. Liabilities associated with the risks that are retained by the Company are not discounted and are estimated by considering, in part, historical claims experience, severity factors, and actuarial assumptions and estimates. The estimated accruals for these potential liabilities could be significantly affected if future occurrences and claims differ from such assumptions and historical trends, so there are particular complexities and uncertainties involved when assessing the adequacy of loss reserves for potential liabilities that are self-insured. Self-insurance liabilities are included in accounts payable and accrued liabilities in the condensed consolidated statements of financial condition. Self-insurance related charges are included in other expense in the condensed consolidated statements of income.
The following table provides a reconciliation of the beginning and ending balances of self-insurance liabilities for the periods presented (in thousands):
Six Months Ended June 30,
20242023
Beginning balance — January 1$82,883 $74,071 
Losses incurred18,611 18,093 
Losses paid(20,339)(10,424)
Ending balance — June 30
$81,155 $81,740 
Other Commitments
As of June 30, 2024, the Company had approximately $481.0 million of client margin loans that were collateralized with securities having a fair value of approximately $673.4 million that LPL Financial can repledge, loan or sell. Of these securities, approximately $362.6 million were client-owned securities pledged to the Options Clearing Corporation as collateral to secure client obligations related to options positions. As of June 30, 2024, there were no restrictions that materially limited the Company’s ability to repledge, loan or sell the remaining $310.8 million of client collateral.
Investment securities on the condensed consolidated statements of financial condition include $8.5 million and $5.5 million of trading securities pledged to the Options Clearing Corporation at June 30, 2024 and December 31, 2023,
40
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

respectively, and $19.9 million of trading securities pledged to the National Securities Clearing Corporation at both June 30, 2024 and December 31, 2023.
NOTE 11 - STOCKHOLDERS’ EQUITY
Dividends
The payment, timing and amount of any dividends are subject to approval by the Company’s Board of Directors (the “Board”) as well as certain limits under the Credit Agreement. Cash dividends per share of common stock and total cash dividends paid on a quarterly basis were as follows (in millions, except per share data):
20242023
Dividend per ShareTotal Cash DividendDividend per ShareTotal Cash Dividend
First quarter$0.30 $22.4 $0.30 $23.6 
Second quarter$0.30 $22.4 $0.30 $23.1 
Share Repurchases
The Company engages in a share repurchase program that was approved by the Board, pursuant to which LPLFH may repurchase its issued and outstanding shares of common stock from time to time. Repurchased shares are included in treasury stock on the condensed consolidated statements of financial condition.
During the six months ended June 30, 2024 LPLFH repurchased 296,145 shares of common stock at a weighted-average price of $236.39 for a total of $70.0 million. As of June 30, 2024, the Company had $830.0 million remaining under the existing share repurchase program. As a result of the Company’s planned acquisition of Atria, the Company paused share repurchases during the first quarter of 2024. Future share repurchases may be effected in open market or privately negotiated transactions, including transactions with affiliates, with the timing of purchases and the amount of stock purchased generally determined at the discretion of the Company within the constraints of the Credit Agreement and the Company’s general working capital needs.
NOTE 12 - SHARE-BASED COMPENSATION
In May 2021, the Company adopted its 2021 Omnibus Equity Incentive Plan (the “2021 Plan”), which provides for the granting of stock options, warrants, restricted stock awards, restricted stock units, deferred stock units, performance stock units and other equity-based compensation to the Company’s employees, non-employee directors and other service providers. The 2021 Plan serves as the successor to the Company’s 2010 Omnibus Equity Incentive Plan (the “2010 Plan”). Following the adoption of the 2021 Plan, the Company is no longer making grants under the 2010 Plan, and the 2021 Plan is the only plan under which equity awards are granted. However, awards previously granted under the 2010 Plan will remain outstanding until vested, exercised or forfeited, as applicable.
There were 17,754,197 shares authorized for grant under the 2021 Plan and 11,713,249 shares remaining available for future issuance at June 30, 2024.
41
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

Stock Options and Warrants
The Company has not granted stock options or warrants since 2019. The following table summarizes the Company’s stock option and warrant activity as of and for the six months ended June 30, 2024:
Number of
Shares		Weighted-
Average
Exercise Price		Weighted-Average
Remaining
Contractual Term
(Years)		Aggregate
Intrinsic
Value
(In thousands)
Outstanding — December 31, 2023
546,820 $54.81 
Granted— $— 
Exercised(138,012)$47.17 
Forfeited and Expired— $— 
Outstanding — June 30, 2024408,808 $57.39 3.34$90,718 
Exercisable — June 30, 2024408,808 $57.39 3.34$90,718 
Exercisable and expected to vest — June 30, 2024408,808 $57.39 3.34$90,718 
The following table summarizes information about outstanding stock options and warrants as of June 30, 2024:
 OutstandingExercisable
Range of Exercise PricesNumber of
Shares		Weighted-
Average
Exercise
Price		Weighted-Average
Remaining Life
(Years)		Number of
Shares		Weighted-
Average
Exercise
Price
$19.85 - $25.0058,581 $19.85 1.6558,581 $19.85 
$25.01 - $35.00— $— 0.00— $— 
$35.01 - $45.0081,863 $39.48 2.5981,863 $39.48 
$45.01 - $65.006,332 $45.55 0.686,332 $45.55 
$65.01 - $75.00127,691 $65.50 3.52127,691 $65.50 
$75.01 - $80.00134,341 $77.53 4.50134,341 $77.53 
 408,808 $57.39 3.34408,808 $57.39 
The Company recognized no share-based compensation expense related to the vesting of stock options awarded to employees and officers during the three and six months ended June 30, 2024 and 2023. As of June 30, 2024, there was no unrecognized compensation cost related to non-vested stock options.
Restricted Stock and Stock Units
The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units and performance stock units, as of and for the six months ended June 30, 2024:
Restricted Stock AwardsStock Units
Number of
Shares		Weighted-Average
Grant-Date
Fair Value		Number of
Units		Weighted-Average
Grant-Date
Fair Value
Outstanding — December 31, 20231,568 $187.93 776,604 $205.73 
  Granted7,803 $268.64 412,487 $263.12 
  Vested(3,080)$227.55 (367,447)$190.50 
  Forfeited— $— (38,068)$249.08 
Outstanding — June 30, 20246,291 $268.64 783,576 (1)$240.97 
Expected to vest — June 30, 20246,291 $268.64 617,178 $261.39 
_______________________________
(1)    Includes 95,990 vested and undistributed deferred stock units.
42
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company grants restricted stock awards and deferred stock units to its directors and restricted stock units and performance stock units to its employees and officers. Restricted stock awards and stock units must vest or are subject to forfeiture; however, restricted stock awards are included in shares outstanding upon grant and have the same dividend and voting rights as the Company’s common stock. The Company recognized $17.3 million and $14.6 million of share-based compensation expense related to the vesting of these restricted stock awards and stock units during the three months ended June 30, 2024 and 2023, respectively and $37.6 million and $30.8 million during the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, total unrecognized compensation cost for restricted stock awards and stock units was $119.2 million, which is expected to be recognized over a weighted-average remaining period of 2.08 years.
The Company also grants restricted stock units to its advisors and to institutions. The Company recognized share-based compensation expense of $0.7 million and $0.6 million related to the vesting of these awards during the three months ended June 30, 2024 and 2023, and $1.4 million and $1.3 million during the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, total unrecognized compensation cost for restricted stock units granted to advisors and institutions was $3.8 million, which is expected to be recognized over a weighted-average remaining period of 1.82 years.
NOTE 13 - EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. The calculation of basic and diluted earnings per share for the periods noted was as follows (in thousands, except per share data):
Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Net income$243,800 $285,520 $532,564 $624,404 
Basic weighted-average number of shares outstanding74,725 77,234 74,644 77,988 
Dilutive common share equivalents823 960 885 1,095 
Diluted weighted-average number of shares outstanding75,548 78,194 75,529 79,083 
Basic earnings per share$3.26 $3.70 $7.13 $8.01 
Diluted earnings per share$3.23 $3.65 $7.05 $7.90 
The computation of diluted earnings per share excludes stock options, warrants and stock units that are anti-dilutive. For the three months ended June 30, 2024 and 2023, stock options, warrants and stock units representing common share equivalents of 5,174 shares and 208,654 shares, respectively, were anti-dilutive. For the six months ended June 30, 2024 and 2023, stock options, warrants and stock units representing common share equivalents of 3,568 shares and 107,544 shares, respectively, were anti-dilutive.
NOTE 14 - NET CAPITAL AND REGULATORY REQUIREMENTS
The Company’s broker-dealer subsidiaries are subject to the SEC’s Uniform Net Capital Rule (Rule 15c3-1 under the Exchange Act of 1934, as amended), which requires the maintenance of minimum net capital. The net capital rules also provide that a broker-dealer’s capital may not be withdrawn if the resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and the Financial Industry Regulatory Authority (“FINRA”) to the extent they exceed defined levels, even though such withdrawals would not cause net capital to be less than minimum requirements. Net capital and the related net capital requirement may fluctuate on a daily basis.
43
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents the net capital position of the Company’s primary broker-dealer subsidiary (in thousands):
June 30, 2024
LPL Financial LLC
Net capital$271,649 
Less: required net capital17,550 
Excess net capital$254,099 
The Company’s subsidiary, PTC, also operates in a highly regulated industry and is subject to various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have substantial monetary and non-monetary impacts on PTC’s operations.
As of June 30, 2024, LPL Financial and PTC met all capital adequacy requirements to which they were subject.

NOTE 15 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET CREDIT RISK
AND CONCENTRATIONS OF CREDIT RISK
LPL Financial may offer loans to new and existing advisors and institutions to facilitate their relationship with LPL Financial, transition to LPL Financial’s platform or fund business development activities. LPL Financial may incur losses if advisors or institutions do not fulfill their obligations with respect to these loans. To mitigate this risk, LPL Financial evaluates the performance and creditworthiness of the advisor or institution prior to offering repayable loans.
LPL Financial’s client securities activities are transacted on either a cash or margin basis. In margin transactions, LPL Financial extends credit to the advisor’s client, subject to various regulatory and internal margin requirements, which is collateralized by cash and securities in the client’s account. As clients write options contracts or sell securities short, LPL Financial may incur losses if the clients do not fulfill their obligations and the collateral in the clients’ accounts is not sufficient to fully cover losses that clients may incur from these strategies. To control this risk, LPL Financial monitors margin levels daily and clients are required to deposit additional collateral, or reduce positions, when necessary.
LPL Financial is obligated to settle transactions with brokers and other financial institutions even if its advisors’ clients fail to meet their obligation to LPL Financial. Clients are required to complete their transactions on the settlement date, generally two business days after the trade date. If clients do not fulfill their contractual obligations, LPL Financial may incur losses. In addition, the Company occasionally enters into certain types of contracts to fulfill its sale of when-issued securities. When-issued securities have been authorized but are contingent upon the actual issuance of the security. LPL Financial has established procedures to reduce this risk by generally requiring that clients deposit cash or securities into their account prior to placing an order.
LPL Financial may at times hold equity securities on both a long and short basis that are recorded on the condensed consolidated statements of financial condition at market value. While long inventory positions represent LPL Financial’s ownership of securities, short inventory positions represent obligations of LPL Financial to deliver specified securities at a contracted price, which may differ from market prices prevailing at the time of completion of the transaction. Accordingly, both long and short inventory positions may result in losses or gains to LPL Financial as market values of securities fluctuate. To mitigate the risk of losses, long and short positions are marked-to-market daily and are continuously monitored by LPL Financial.
44
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 16 - SUBSEQUENT EVENTS
The Board declared a cash dividend of $0.30 per share on LPLFH’s outstanding common stock to be paid on August 23, 2024 to all stockholders of record on August 9, 2024.



45
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Market Risk
We maintain trading securities and securities sold, but not yet purchased in order to facilitate client transactions, to meet a portion of our clearing deposit requirements at various clearing organizations, to track the performance of our research models and in connection with our dividend reinvestment program. Trading securities are included in investment securities while securities sold, but not yet purchased are included in other liabilities on the condensed consolidated statements of financial condition and can include mutual funds, money market funds, debt securities and equity securities. We enter into market risk sensitive instruments for purposes other than trading, which are included in other assets on the condensed consolidated statements of financial condition and can include deferred compensation plan assets invested in life insurance, money market and other mutual funds, investments in fractional shares held by customers, and other non-traded real estate investment trusts. Changes in the value of our market risk sensitive instruments may result from fluctuations in interest rates, credit ratings of the issuer, equity prices or a combination of these factors.
In facilitating client transactions, our trading securities and securities sold, but not yet purchased generally involve mutual funds, including dividend reinvestments. Our positions held are based upon the settlement of client transactions, which are monitored by our Trading and Operations department.
Positions held to meet clearing deposit requirements consist of U.S. government securities and equity securities. The amount of securities deposited depends upon the requirements of the clearing organization. The level of securities deposited is monitored by the settlements group within our Trading and Operations department.
Our Research department develops model portfolios that are used by advisors in developing client portfolios. We maintain securities owned in internal accounts based on these model portfolios to track the performance of our Research department. At the time a portfolio is developed, we purchase the securities in that model portfolio in an amount equal to the account minimum, which varies by product.
In addition, we are subject to market risk resulting from operational risk events, which can require customer trade corrections. We also bear market risk on the fees we earn that are based on the market value of advisory and brokerage assets, as well as assets on which trailing commissions are paid and assets eligible for sponsor payments.
As of June 30, 2024, the fair value of our trading securities was $73.5 million and securities sold, but not yet purchased were not material. The fair value of market risk sensitive instruments entered into for other than trading purposes included within other assets was $983.5 million as of June 30, 2024. See Note 5 - Fair Value Measurements, within the notes to the condensed consolidated financial statements for information regarding the fair value of trading securities; securities sold, but not yet purchased; and other assets associated with our client facilitation activities.
Interest Rate Risk
We are exposed to risk associated with changes in interest rates. As of June 30, 2024, $1.0 billion of our outstanding debt was subject to floating interest rate risk. While our senior secured term loan is subject to increases in interest rates, we do not believe that a short-term change in interest rates would have a material impact on our net income given revenue generated by our client cash balances, which is generally subject to the same, but off-setting, interest rate risk.
46
The following table summarizes the impact of increasing interest rates on our interest expense from the variable portion of our debt outstanding, calculated using the projected average outstanding balance over the subsequent twelve-month period (in thousands):
 
Outstanding Balance at
June 30, 2024
Annual Impact of an Interest Rate(†) Increase of
 10 Basis25 Basis50 Basis100 Basis
Corporate Debt and Other BorrowingsPointsPointsPointsPoints
Term Loan B$1,021,850 $1,018 $2,545 $5,089 $10,178 
Revolving Credit Facility— — — — — 
Variable Rate Debt Outstanding$1,021,850 $1,018 $2,545 $5,089 $10,178 
____________________
(†) Our interest rate for our Term Loan B is locked in for one, two, three, six or twelve months as allowed under the Credit Agreement. At the end of the selected periods, the rates will be locked in at the then current rate. The effect of these interest rate locks are not included in the table above.
See Note 9 - Corporate Debt and Other Borrowings, Net, within the notes to the condensed consolidated financial statements for additional information.
We offer our advisors and their clients two FDIC insured bank sweep vehicles and a client cash account (“CCA”) that are interest rate sensitive. Our FDIC insured sweep vehicles include an (1) insured cash account (“ICA”) for individuals, trusts, sole proprietorships and entities organized or operated to make a profit, such as corporations, partnerships, associations, business trusts and other organizations and (2) an insured deposit cash account (“DCA”) for advisory individual retirement accounts. Clients earn interest on deposits in the ICA and the DCA while we earn a fee. The fees we earn from cash held in the ICA are based primarily on prevailing interest rates in the current interest rate environment, and are therefore subject to interest rate risk. The fees we earn from the DCA are calculated as a per account fee, and such fees increase as the federal funds target rate increases, subject to a cap.
The Company places ICA sweep overflow into the CCA. These deposits are either used to fund client margin lending or placed in third-party bank or investment accounts, both of which are segregated under federal or other regulations, where they are held as cash or invested in short-term U.S. treasury bills. We earn interest income on these bank deposits and investments in short-term U.S. treasury bills and pay interest to clients on these CCA balances, which are sensitive to prevailing interest rates. This interest income and expense is included in interest income, net in the condensed consolidated statements of income. Changes in interest rates and fees for the deposit sweep vehicles are monitored by our Rate Setting Committee (the “RSC”), which governs and approves any changes to our fees. By meeting promptly around the time of Federal Open Market Committee meetings, or for other market or non-market reasons, the RSC considers financial risk of the deposit sweep vehicles relative to other products into which clients may move cash balances.
Credit Risk
Credit risk is the risk of loss due to adverse changes in a borrower’s, issuer’s or counterparty’s ability to meet its financial obligations under contractual or agreed upon terms. We are subject to credit risk from certain loans extended to advisors and institutions when we extend loans with repayment terms to facilitate advisors’ and institutions’ transition to our platform or to fund business development activities. We are also subject to credit risk when a forgivable loan to an advisor or institution converts to repayable upon advisor or institution termination or change in agreed upon terms.
Credit risk also arises when collateral posted with LPL Financial by clients to support margin lending or derivative trading is insufficient to meet clients’ contractual obligations to LPL Financial. Our credit exposure in these transactions consists primarily of margin accounts, through which we extend credit to advisors’ clients collateralized by securities in the clients’ accounts. Under many of these agreements, we are permitted to sell, repledge or loan these securities held as collateral and use these securities to enter into securities lending arrangements or to deliver to counterparties to cover short positions.
As our advisors execute margin transactions on behalf of their clients, we may incur losses if clients do not fulfill their obligations, the collateral in the clients’ accounts is insufficient to fully cover losses from such investments and our advisors fail to reimburse us for such losses. Our losses on margin accounts were not material during the three and six months ended June 30, 2024 or 2023. We monitor exposure to industry sectors and individual securities and perform analyses on a regular basis in connection with our margin lending activities. We adjust our margin requirements if we believe our risk exposure is not appropriate based on market conditions.
We are subject to concentration risk if we extend large loans to or have large commitments with a single counterparty, borrower or group of similar counterparties or borrowers, or if we accept a concentrated position as
47
collateral for a margin loan. Receivables from and payables to clients and stock borrowing and lending activities are conducted with a large number of clients and counterparties and potential concentration is monitored. We seek to limit this risk through review of the underlying business and the use of limits established by senior management taking into consideration factors including current market conditions, the financial strength of the counterparty, the size of the position or commitment, the expected duration of the position or commitment and other positions or commitments outstanding.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report were effective.
Change in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting that occurred during the second quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II — OTHER INFORMATION

Item 1. Legal Proceedings
From time to time, we have been subjected to and are currently subject to legal and regulatory proceedings arising out of our business operations, including lawsuits, arbitration claims, and inquiries, investigations and enforcement proceedings initiated by the SEC, FINRA and state securities regulators, as well as other actions and claims. See Note 10 - Commitments and Contingencies, within the notes to the condensed consolidated financial statements for additional information.
Item 1A. Risk Factors
There have been no material changes in the information regarding the Company’s risks, as set forth under Part I, “Item 1A. Risk Factors” in the Company’s 2023 Annual Report on Form 10-K.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
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Item 5. Other Information
During the three months ended June 30, 2024, certain of our officers (as defined in Rule 16a-1(f) under the Exchange Act) entered into contracts, instructions or written plans for the purchase or sale of our common stock that are intended to satisfy the affirmative defense conditions specified in Rule 10b5-1(c) under the Exchange Act (“Rule 10b5-1 trading arrangements”). The table below sets forth certain information regarding such Rule 10b5-1 trading arrangements:
OfficerDate of Plan AdoptionCommencement of Trading Period
Termination of Trading Period(1)
Maximum Number of Securities to be Purchased or Sold Pursuant to the Rule 10b5-1 Trading ArrangementsPurchase or Sale
Dan Arnold, President and Chief Executive OfficerJune 12, 2024September 16, 2024December 12, 202420,000Sale
(1) Represents the outside termination date pursuant to terms of each applicable plan. The agreement governing the applicable plan may terminate earlier pursuant to its terms in certain circumstances outside of the control of the applicable officer, including if all trades under the plan are completed prior to the termination of the trading period.
Item 6. Exhibits
3.1 
3.2 
3.3 
3.4 
4.1 
4.2 
10.1 
10.2 
10.3 
22.1 
31.1 
31.2 
32.1 
32.2 
101.SCHInline XBRL Taxonomy Extension Schema*
101.CALInline XBRL Taxonomy Extension Calculation*
101.LABInline XBRL Taxonomy Extension Label*
101.PREInline XBRL Taxonomy Extension Presentation*
101.DEFInline XBRL Taxonomy Extension Definition*
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
____________________
49
*Filed herewith.
**Furnished herewith.

50
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
LPL Financial Holdings Inc.
 
Date:July 30, 2024By:  /s/ DAN H. ARNOLD
  Dan H. Arnold
  
President and Chief Executive Officer
  
Date:July 30, 2024By:  /s/ MATTHEW J. AUDETTE
  Matthew J. Audette
  
Chief Financial Officer and Head of Business Operations

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Exhibit 10.1
LPL FINANCIAL HOLDINGS INC.
Non-Employee Director Compensation Policy
Annual Retainer
•All non-employee directors receive an annual retainer of $285,000, which is paid in advance on the next business day following the Company’s annual meeting of stockholders (the “Annual Payment Date”). Of this amount, $100,000 is paid in a lump sum in cash and $185,000 is paid in the form of restricted shares of the Company’s common stock (the “Common Stock”).
•The restricted shares are issued under the Company’s 2021 Omnibus Equity Incentive Plan (the “2021 Plan”) and vest in full on the date immediately prior to the date of the Company’s next annual meeting of stockholders (the “Vesting Date”). The number of restricted shares is determined by dividing $185,000 by the average of the closing price per share of the Common Stock on The NASDAQ Stock Market for the trailing thirty consecutive trading days inclusive of the Annual Payment Date (the “Grant Price”), rounded down to the nearest whole share.
•In lieu of the above cash payment, a non-employee director may make an election (an “Election”) to be issued, on the Annual Payment Date, a number of shares of the Common Stock under the 2021 Plan determined by dividing $100,000 by the Grant Price, rounded down to the nearest whole share. An Election must be delivered in writing (including electronic mail) prior to the Annual Payment Date during an open trading window under the Company’s insider trading policy.
Additional Service Retainers
•Members of the standing committees of the Board of Directors receive annual service retainers in the following amounts, paid in cash in quarterly installments following the end of each quarter of service:
ChairEach Other Member
Audit Committee$30,000$15,000
Compensation and Human Resources Committee$25,000$12,500
Nominating and Governance Committee$20,000$10,000
•The Chair of the Board receives an additional annual service retainer of $140,000, paid in cash in quarterly installments following the end of each quarter of service.
Newly Elected Directors
Following a non-employee director’s initial election to the Board of Directors other than on the date of an annual meeting of stockholders, he or she will receive a portion of the annual retainer (the “Pro-Rated Retainer”), payable on the first business day of the month immediately following such election (the “Election Payment Date”).
•The cash portion of the Pro-Rated Retainer will be calculated by multiplying $100,000 by a fraction, the numerator of which is the number of full months between the Election Payment Date and the Vesting Date and the denominator of which is 12 (the “Cash Amount”).
•The number of restricted shares to be issued will be determined by (i) multiplying $185,000 by a fraction, the numerator of which is the number of full months between the Election Payment Date and the Vesting Date and the denominator of which is 12, and (ii) dividing such product by the average of the closing price per share of the Common Stock on The NASDAQ Stock Market for the trailing thirty consecutive trading days inclusive of the Election Payment Date, rounded down to the nearest
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whole share. The restricted shares will be issued under the 2021 Plan and vest in full on the Vesting Date.
•In lieu of the above cash payment, a non-employee director may make an election to be issued, on the Election Payment Date, a number of shares of Common Stock under the 2021 Plan determined by dividing the Cash Amount by the average of the closing price per share of the Common Stock on The NASDAQ Stock Market for the trailing thirty consecutive trading days inclusive of the Election Payment Date, rounded down to the nearest whole share. Such an election must be delivered in writing (including electronic mail) on or prior to the date of the director’s election to the Board of Directors.
Newly elected directors, and directors who are newly appointed to a committee, will also be entitled to pro-rated service retainers for any full month following his or her initial election to the Board of Directors or initial appointment to a committee of the Board of Directors, as applicable.
Directors may elect to defer their annual retainer, but not, for the avoidance of doubt, their additional service retainers, under the Company’s Non-Employee Director Deferred Compensation Plan. If the restricted stock portion of the annual retainer is deferred, a director will receive a grant of restricted stock units under the 2021 Plan in lieu of restricted stock.
In the discretion of the Board of Directors, the grant date of shares of Common Stock, including restricted shares, may be delayed until the next open trading window under the Company’s insider trading policy then in effect.

Effective as of May 9, 2024
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Exhibit 10.2
LPL FINANCIAL HOLDINGS, INC.
NON-EMPLOYEE DIRECTOR DEFERRED COMPENSATION PLAN
Amended as of May 9, 2024
1.DEFINED TERMS
Exhibit A, which is incorporated by reference, defines the terms used in this Plan and sets forth certain operational rules relating to those terms.
2.PURPOSE; EFFECTIVE DATE
The purpose of the Plan is to enable Directors to defer the receipt of certain compensation earned in their capacity as non-employee directors of the Company. The Plan is an unfunded deferred compensation plan that is intended to (a) comply with Section 409A of the Code, and shall be construed, administered and interpreted accordingly, and (b) be exempt from the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Plan was adopted as of November 19, 2015, and has been most recently amended effective as of May 9, 2024.
3.ADMINISTRATION
The Plan is administered by the Administrator. The Administrator has discretionary authority, subject only to the express provisions of the Plan, to interpret the Plan; to prescribe forms, rules and procedures relating to the Plan; and to otherwise do all things necessary or appropriate to carry out the purpose of the Plan. Determinations of the Administrator made under the Plan will be conclusive and will bind all parties. No individual acting as Administrator may determine his or her own rights or entitlements under the Plan, if any.
4.ELIGIBILITY AND PARTICIPATION
(a)Commencement of Participation. A Director will become a Participant on the day that his or her first deferral election under Section 5 becomes irrevocable, as provided for in Section 5(c).
(b)Termination of Eligibility and Participation. A Director shall remain a Participant until his or her Account has been fully distributed.
5.DEFERRAL ELECTIONS
(a)Director Equity Retainer. A Director may defer the receipt of 100% of the Equity Retainer awarded to such Director as compensation for services to be performed in any calendar year by completing and delivering a deferral election in accordance with Section 5(c) below not later than December 31 of the preceding calendar year (or such earlier date as may be specified by the Administrator). Subject to Section 5(d) below, any individual who becomes a Director after January 1 of any year may elect within 30 days after becoming a Director to defer the receipt of 100% of the pro-rata Equity Retainer awarded to such Director as compensation for services to be performed subsequent to such election in the remainder of such calendar year by completing and delivering a deferral election in accordance with Section 5(c) below within such 30-day period. For the avoidance of doubt, a Director who elects to defer his or her Equity Retainer for services to be performed in a calendar year may defer no less than 100% of such Equity Retainer and any deferral election to the contrary shall be null and void and shall have no effect.
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(b)Director Cash Retainer. For any calendar year with respect to which a Director elects to defer his or her Equity Retainer pursuant to Section 5(a), the Director may also defer the receipt of 100% of the Cash Retainer payable as compensation for services to be performed in the same calendar year by completing and delivering a deferral election form in accordance with Section 5(c) below not later than December 31 of the preceding calendar year (or such earlier date as may be specified by the Administrator). Subject to Section 5(d) below, any individual who becomes a Director after January 1 of any year, and elects to make a deferral of his or her Equity Retainer for the remainder of such calendar year pursuant to Section 5(a), may elect within 30 days after becoming a Director to defer the receipt of 100% of the pro-rata Cash Retainer payable as compensation for services to performed subsequent to such election in the remainder of such calendar year by completing and delivering a deferral election in accordance with Section 5(c) below within such 30-day period. A Director’s Cash Retainer shall be treated as earned for services performed in a calendar year if paid with respect to services performed in such year. For the avoidance of doubt, (i) a Director may not elect to defer a Cash Retainer payable for services to be performed in a calendar year pursuant to this Section 5(b) unless such Director has made a deferral of the Equity Retainer payable for services to be performed in the same calendar year pursuant to Section 5(a), and (ii) a Director who elects to defer his or her Cash Retainer for services to be performed in a calendar year may defer no less than 100% of such Cash Retainer and, in each case, any deferral election to the contrary shall be null and void and shall have no effect.
(c)Form of Deferral Election. Each deferral election under this Section 5 shall be made in writing on the form set forth on Exhibit B hereto, or in such other writing (including an electronic writing) as prescribed by the Administrator. The Administrator may condition the effectiveness of any election upon the delivery by the Director of such other form or forms as the Administrator may prescribe. A deferral election under this Section 5 for a particular calendar year shall become irrevocable once that year has begun or upon such earlier date as may be specified by the Administrator (or in the case of an initial year of participation under Section 5(a) or 5(b) for an individual who becomes a Director after January 1 of any calendar year, once the 30-day initial election period has expired). Any election submitted in accordance with this Section 5 shall remain in effect for the calendar year to which such election relates and each subsequent calendar year in which an individual serves as a Director unless the election is changed or revoked prior to the applicable election deadline for the relevant calendar year, in accordance with such rules and procedures as the Administrator may establish from time to time and consistent, in the Administrator’s judgment, with the requirements of Section 409A of the Code and the applicable Treasury Regulations thereunder.
(d)Limitation on Mid-Year Elections. Any individual who becomes a Director after January 1 of any year and who already participates or is eligible to participate in (including, except to the extent otherwise provided in Section 1.409A-2(a)(7) of the Treasury Regulations, an individual who has any entitlement, vested or unvested, to payments under) any other nonqualified deferred compensation plan that would be required to be aggregated with the Plan for purposes of Section 1.409A-1(c)(2) of the Treasury Regulations shall not be treated as eligible for the mid-year election rules of this Section 5 with respect to the Plan, even if he or she had never previously been eligible to participate in the Plan itself.
6.ACCOUNTS
(a)Establishment of Accounts. The Company shall maintain an Account on behalf of each Participant and shall make additions to and subtractions from such Account as provided herein.
(b)Investment in Stock Units. For each Equity Retainer and Cash Retainer deferred by a Director under Section 5, there shall be credited to a Participant’s Account a number of Stock Units that is
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equal to the quotient obtained by dividing (i) the dollar amount of such deferred Cash Retainer or Equity Retainer by (ii) the fair market value of a share of Stock (as determined in accordance with the Policy and the Equity Plan) on the date the Cash Retainer or Equity Retainer then being allocated to the Account would otherwise have been paid (or, in the case of any deferred Equity Retainer, granted) to the Participant, rounded down to the nearest whole number of Stock Units.
(c)Dividends. On the payment date of any cash dividend with respect to Stock, the number of vested and unvested Stock Units credited to a Participant’s Account shall be increased by that number of Stock Units which is equal to the quotient obtained by dividing (i) the Dividend Amount by (ii) the fair market value of a share of Stock (as determined in accordance with the Policy and the Equity Plan) on the payment date, rounded down to the nearest whole number of Stock Units. In the case of any dividend declared on Stock which is payable in Stock, a Participant’s Account shall be increased by that number of Stock Units which is equal to the product of (x) the number of Stock Units credited to the Participant’s Account on the related dividend record date and (y) the number of shares of Stock (including any fraction thereof) declared as a dividend with respect to a share of Stock, rounded down to the nearest whole number of Stock Units.
(d)Application of the Equity Plan. Stock Units credited to a Participant’s Account pursuant to this Section 6 shall be considered awards of Stock Units granted under the Equity Plan and the shares of Stock issuable upon the distribution of a Participant’s Account shall be counted against the share reserve of the Equity Plan in accordance with Section 4 of the Equity Plan. Stock Units credited to a Participant’s Account shall be subject to adjustment in accordance with Section 7 of the Equity Plan, in each case, in a manner consistent with the requirements of Section 409A of the Code. In all other respects, Stock Units credited to a Participant’s Account and, the Stock issued upon distribution thereof shall be subject to the terms and conditions of the Equity Plan, which are incorporated herein by reference. For the avoidance of doubt, no Stock has been separately reserved for issuance under the Plan.
7.VESTING
(a)Stock Units Attributable to Cash Retainer. A Participant shall be fully vested in the portion of his or her Account, including any Stock Units credited to such Participant’s account pursuant to Section 6(c), that is attributable to the deferral of a Cash Retainer.
(b)Stock Units Attributable to Equity Retainer. A Participant shall become fully vested in the portion of his or her Account, including any Stock Units credited to such Participant’s account pursuant to Section 6(c), that is attributable to the deferral of an Equity Retainer on the date on which such Equity Retainer would have vested in accordance with the Policy if it had not been deferred pursuant to the Plan (for each such deferral of an Equity Retainer, the “Vesting Date”), subject, in all cases, to the Director’s continuous service as a Director through the applicable Vesting Date. Upon a termination of a Director’s service prior to a Vesting Date for any reason, any unvested portion of his or her Account, including any Stock Units credited to such Participant’s account pursuant to Section 6(c), shall be automatically and immediately forfeited.
(c)Change of Control. Notwithstanding anything to the contrary in this Section 7, any unvested portion of a Director’s Account shall vest upon the occurrence of a Change of Control, provided that the Director remains in service at such date.
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8.DISTRIBUTIONS
(a)Form of Distribution. The Company shall make a distribution to a Participant in the form of a single distribution of Stock equal in number to the number of vested Stock Units credited to such Participant’s Account.
(b)Timing of Distribution. A distribution described in Section 8(a) shall be made to the Participant by the Company within 30 days following the earlier of (i) such Participant’s Separation from Service for any reason (including by reason of death) or (ii) a Change of Control.
9.AMENDMENT AND TERMINATION
The Administrator may at any time or times amend the Plan for any purposes which may at the time be permitted by law, and may at any time terminate the Plan; provided, however, that, except as otherwise expressly provided in the Plan, the Administrator may not, without the Participant’s consent, alter the rights of a Participant with respect to vested amounts, if any, standing to the credit of such Participant’s Account prior to such alteration so as to affect materially and adversely the Participant’s rights with respect to such amount. Any amendments to the Plan shall be conditioned upon stockholder approval only to the extent, if any, such approval is required by law (including the Code and applicable stock exchange requirements), as determined by the Administrator. In addition, a Participant's deferral election in effect for the calendar year in which the termination of the Plan occurs shall not be cancelled for such year, and no distributions shall be made upon termination of the Plan, unless permitted by and in accordance with Section 409A of the Code.
10.GOVERNING LAW
The provisions of the Plan and deferral election agreement under the Plan and all claims or disputes arising out of or based upon the Plan or any deferral election agreement under the Plan or relating to the subject matter hereof or thereof will be governed by and construed in accordance with the domestic substantive laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.
11.MISCELLANEOUS
(a)Unfunded Plan. This Plan shall not be construed to create a trust of any kind or a fiduciary relationship between the Company and any Participant. The Company shall not be obligated to fund its liabilities under the Plan and no person (including, without limitation, any Participant or any beneficiary thereof) shall have any claim against the Company or its assets in connection with the Plan other than as an unsecured general creditor.
(b)No Warranties. The Company does not warrant or represent in any way that the value of a Participant’s Account will increase or not decrease. Each Participant (and his or her designated beneficiaries) assumes all risk in connection with participation in the Plan, including, without limitation, any change in such value.
(c)Limitation on Liability. Notwithstanding anything to the contrary in the Plan, neither the Company, nor any Affiliate, nor the Administrator, nor any person acting on behalf of the Company, any Affiliate, or the Administrator, shall be liable to any Participant or to the estate or beneficiary of any
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Participant by reason of any acceleration of income, or any additional tax (including any interest and penalties), asserted by reason of any deferral to satisfy the requirements of Section 409A of the Code.
(d)No Stock Ownership. Stock Units do not create any interest in any class of equity securities of the Company, and no Participant (or beneficiary) shall have any rights of a shareholder with respect to Stock Units (including, for the avoidance of doubt, any voting rights) by virtue of participation in the Plan, except as to shares of Stock actually distributed to him or her (or his or her designated beneficiaries) pursuant to the Stock Units credited to his or her Account.
(e)Designation of Beneficiary. Subject to such rules and limitations as the Administrator may prescribe, each Participant from time to time may designate one or more persons (including a trust) to receive benefits payable with respect to the Participant under the Plan upon or after the Participant’s death, and may change such designation at any time. Each designation will revoke all prior designations by the same Participant, shall be in a form prescribed by the Administrator, and will be effective only when filed in writing with the Administrator during the Participant’s lifetime. In the absence of a valid beneficiary designation, or if, at the time any benefit payment is due to a beneficiary there is no living Beneficiary validly named by the Participant, the Administrator shall cause such benefit to be paid to the Participant’s estate.
(f)Inalienability of Benefits. No benefit under, or interest in, the Plan or any Account shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to do so shall be void other than pursuant to a beneficiary designation filed under the Plan or by will or under the applicable laws of descent and distribution.
(g)Status as a Director. Nothing in the Plan shall be deemed to create any obligation on the part of the Board to nominate any Director for reelection by the Company's stockholders or to confer any right on the part of a Director to receive any, or any particular level, of Cash Retainer or Equity Retainer.
•* * * * *
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Exhibit A
DEFINITION OF TERMS
The following terms, when used in the Plan, have the meanings and are subject to the provisions set forth below:
“Account”: A book entry account established and maintained by the Company on behalf of a Participant to record his or her deferral of any Equity Retainer and Cash Retainer under the Plan and any additions thereto or subtractions therefrom credited or charged in accordance with Section 6 hereof.
“Administrator”: The Compensation Committee, except with respect to such matters that are not delegated to the Compensation Committee by the Board (whether pursuant to committee charter or otherwise). The Compensation Committee (or the Board, with respect to such matters over which it retains authority under the Plan or otherwise) may delegate (i) to one or more of its members (or one or more other members of the Board) such of its duties, powers and responsibilities as it may determine; and (ii) to such employees or other persons as it determines such ministerial tasks as it deems appropriate. For purposes of the Plan, the term “Administrator” will include the Board, the Compensation Committee, and the person or persons delegated authority under the Plan to the extent of such delegation, as applicable.
“Affiliate”: Any corporation or other entity that stands in a relationship to the Company that would result in the Company and such corporation or other entity being treated as one employer under Section 414(b) and Section 414(c) of the Code, except that in determining eligibility for the grant of an Award by reason of service for an Affiliate, Sections 414(b) and 414(c) of the Code shall be applied by substituting “at least 50%” for “at least 80%” under Section 1563(a)(1), (2) and (3) of the Code and Treas. Regs. § 1.414(c)-2; provided, that to the extent permitted under Section 409A, “at least 20%” shall be used in lieu of “at least 50%”; and further provided, that the lower ownership threshold described in this definition (50% or 20% as the case may be) shall apply only if the same definition of affiliation is used consistently with respect to all compensatory stock options or stock awards (whether under the Plan or another plan). The Company may at any time by amendment provide that different ownership thresholds (consistent with Section 409A) apply but any such change shall not be effective for 12 months.
“Board”: The Board of Directors of the Company.
“Cash Retainer”: The portion of any annual retainer payable to a Director in cash, as set forth in the Policy, other than any portion of the annual retainer payable in cash solely in respect of a Director’s service on a committee of the Board (whether standing or otherwise) or as Lead Director of the Board. The portion of any annual retainer payable to a Director in cash shall be determined prior to taking into account the ability of a Director to make an election pursuant to the Policy to have such portion payable in Stock in lieu of cash.
“Change of Control”: The consummation of (i) any transaction or series of related transactions, whether or not the Company is party thereto, after giving effect to which in excess of 50% of the Company’s voting power is owned directly, or indirectly through one or more entities, by any person and its “affiliates” or “associates” (as such terms are defined in the Exchange Act Rules) or any “group” (as defined in the Exchange Act Rules) other than, in each case, the Company or any person and entity directly or indirectly controlling, controlled by or under common control with the Company (where control may be by management authority, contract or equity interest) immediately following the Effective Date, or (ii) a sale or other disposition of all or substantially all of the consolidated assets of the Company (each of the foregoing, a “Business Combination”); provided that, notwithstanding the foregoing, a
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Change of Control shall not be deemed to occur as a result of a Business Combination following which the individuals or entities who were beneficial owners of the outstanding securities entitled to vote generally in the election of directors of the Company immediately prior to such Business Combination beneficially own, directly or indirectly, 50% or more of the outstanding securities entitled to vote generally in the election of directors of the resulting, surviving or acquiring corporation in such transaction. In no event, however, shall a transaction constitute a “Change of Control” unless it also constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the Treasury Regulations.
“Code”: The U.S. Internal Revenue Code of 1986, as from time to time amended and in effect, or any successor statute as from time to time in effect.
“Company”: LPL Financial Holdings Inc.
“Compensation Committee”: The Compensation and Human Resources Committee of the Board.
“Director”: A member of the Board who is not an employee of the Company or any of its Affiliates.
“Equity Plan”: The LPL Financial Holdings Inc. 2021 Omnibus Equity Incentive Plan, as amended from time to time.
“Equity Retainer”: The portion of any annual retainer payable to a Director in the form of restricted shares of the Company’s common stock, as set forth in the Policy.
“Exchange Act”: The Securities Exchange Act of 1934, as from time to time amended and in effect.
“Dividend Amount”: An amount equal to the product of (i) the number of vested and unvested Stock Units credited to the Participant’s Account on the date of a dividend and (ii) the amount of the dividend with respect to a share of Stock.
“Participant”: A Director that participates in the Plan.
“Policy”: The LPL Financial Holdings Inc. Non-Employee Director Compensation Policy, as may be amended from time to time and any successor policy thereto.
“Plan”: The LPL Financial Holdings Inc. Non-Employee Director Deferred Compensation Plan, as may be amended from time to time.
“Separation from Service”: A “separation from service” (as defined at Section 1.409A-1(h) of the Treasury Regulations after giving effect to the presumptions contained therein) from the Company and all other corporations and trades or businesses, if any, that would be treated as a single “service recipient” with the Company under Section 1.409A-1(h)(3) of the Treasury Regulations; and correlative terms shall be construed to have a corresponding meaning.
“Stock”: A share of common stock of the Company, par value $0.001 per share.
“Stock Unit”: An unfunded and unsecured promise, denominated in shares of Stock, to deliver Stock or cash measured by the value of Stock in the future.
A-2
308467-1

* * * * *
A-3
308467-1
Exhibit B
DEFERRAL ELECTION AGREEMENT
THIS DEFERRAL ELECTION AGREEMENT, dated as of ________________, 20__, is entered into by and between LPL Financial Holdings Inc. (the “Company”), a Delaware corporation, and the undersigned Director of the Company (the “Director”). This Deferral Election Agreement is intended to comply with the requirements of Section 409A of the Code, and shall be construed, administered and interpreted accordingly. All definitions shall have the meaning set forth in the Company’s Non-Employee Director Deferred Compensation Plan, as may be amended from time to time, except as otherwise set forth herein.
WHEREAS, the Director serves as a non-employee director of the Company and will earn remuneration in the form of an Equity Retainer and a Cash Retainer from the Company in that capacity pursuant to the Company’s Non-Employee Director Compensation Policy, as may be amended from time to time; and
WHEREAS, the Director and the Company desire to enter into an agreement to provide for the deferral of the Equity Retainer and, if applicable, the Cash Retainer in a manner consistent with the Plan and the requirements of Section 409A of the Code.
NOW, THEREFORE, it is agreed as follows:
1.    The Director irrevocably elects to defer receipt of:
□    100% of the Equity Retainer awarded for services to be performed after the date of this Agreement in calendar year 20__.
□    100% of the Equity Retainer awarded for services to be performed after the date of this Agreement in calendar year 20__ and 100% of the Cash Retainer awarded for services to be performed after the date of this Agreement in calendar year 20__.
2.    The Director hereby acknowledges that (i) he or she may defer no less than 100% of the Equity Retainer and, if applicable, the Cash Retainer pursuant to Section 1 and (ii) an election to defer receipt of the Cash Retainer pursuant to Section 1 shall be valid only if the Director has elected to defer receipt of the Equity Retainer for the same calendar year. In each case, any deferral election to the contrary shall be null and void and shall have no effect.
3.    An election to defer receipt of the Equity Retainer and, if applicable, the Cash Retainer shall remain in effect for such Equity Retainer and, if applicable, such Cash Retainer earned in calendar year 20__ and each subsequent calendar year in which the individual serves as a Director unless the election is changed or revoked prior to the applicable election deadline for the relevant calendar year, in accordance with such rules and procedures as the Administrator may establish from time to time and consistent, in the Administrator’s judgment, with the requirements of Section 409A of the Code and the applicable Treasury Regulations thereunder.
[Remainder of Page Intentionally Left Blank]
308467-1

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its duly authorized officer, and the Director has executed this Agreement, in each case, as of the date first written above.

LPL FINANCIAL HOLDINGS INC.


By:                         
Name:    
Title:    





Director:


Signature:                     

Print Name:                     
[Signature Page to Deferral Election Agreement]

Exhibit 22.1
List of Subsidiary Guarantors and Issuers of Guaranteed Securities

As of June 30, 2024, LPL Financial Holdings Inc., a Delaware corporation, has fully and unconditionally guaranteed the 5.700% Senior Notes due 2027, the 6.750% Senior Notes due 2028 and the 6.000% Senior Notes due 2034 issued by LPL Holdings, Inc., a Massachusetts corporation, pursuant to offerings registered under the Securities Act of 1933, as amended.


Exhibit 31.1
CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

I, Dan H. Arnold, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of LPL Financial Holdings Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 30, 2024
/s/ Dan H. Arnold 
Dan H. Arnold 
President and Chief Executive Officer
(principal executive officer) 
 
 


Exhibit 31.2
CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

I, Matthew J. Audette, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of LPL Financial Holdings Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 30, 2024
/s/ Matthew J. Audette 
Matthew J. Audette 
Chief Financial Officer and Head of Business Operations
(principal financial officer) 
 
 


Exhibit 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     In connection with the Quarterly Report on Form 10-Q of LPL Financial Holdings Inc. (the “Company”) for the period ending June 30, 2024 as filed with the Securities and Exchange Commission (“SEC”) on the date hereof (the “Report”), I, Dan H. Arnold, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:
1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
     A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: July 30, 2024

/s/ Dan H. Arnold 
Dan H. Arnold 
President and Chief Executive Officer 
 
 



Exhibit 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     In connection with the Quarterly Report on Form 10-Q of LPL Financial Holdings Inc. (the “Company”) for the period ending June 30, 2024 as filed with the Securities and Exchange Commission (“SEC”) on the date hereof (the “Report”), I, Matthew J. Audette, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:
1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
     A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: July 30, 2024

/s/ Matthew J. Audette 
Matthew J. Audette 
Chief Financial Officer and Head of Business Operations 
 


v3.24.2
Document and Entity Information Document - shares
 6 Months Ended
Jun. 30, 2024
Jul. 25, 2024
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Jun. 30, 2024  
Entity File Number 001-34963  
Entity Registrant Name LPL Financial Holdings Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-3717839  
Entity Address, Address Line One 4707 Executive Drive,  
Entity Address, City or Town San Diego,  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 92121  
City Area Code (800)  
Local Phone Number 877-7210  
Title of 12(b) Security Common Stock - $0.001 par value per share  
Trading Symbol LPLA  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   74,762,890
Entity Central Index Key 0001397911  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
v3.24.2
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
REVENUES:        
Advisory $ 1,288,163 $ 1,014,565 $ 2,487,974 $ 1,968,622
Commission 787,046 622,886 1,533,492 1,226,611
Asset-based 601,008 589,715 1,201,729 1,211,463
Service and fee 135,000 123,122 267,172 242,109
Transaction and fee 58,935 46,936 116,193 95,871
Interest Income 47,478 37,972 91,003 75,330
Other 14,139 33,608 66,799 66,630
Total net revenues 2,931,769 2,468,804 5,764,362 4,886,636
EXPENSES:        
Advisory and commission 1,819,027 1,448,763 3,552,514 2,819,397
Compensation and benefits 274,000 231,680 548,369 465,213
Promotional 136,125 102,565 262,744 200,788
Occupancy and equipment 69,529 65,005 135,793 125,178
Depreciation and amortization 70,999 58,377 138,157 114,431
Interest Expense, Debt 64,341 44,842 124,423 84,026
Brokerage, clearing and exchange 32,984 29,148 63,516 55,274
Amortization of intangible assets 30,607 26,741 60,159 50,833
Professional services 22,100 18,092 35,379 32,312
Communications and data processing 19,406 20,594 39,150 38,269
Other 62,580 34,178 99,895 67,599
Costs and Expenses, Total 2,601,698 2,079,985 5,060,099 4,053,320
INCOME BEFORE PROVISION FOR INCOME TAXES 330,071 388,819 704,263 833,316
PROVISION FOR INCOME TAXES 86,271 103,299 171,699 208,912
NET INCOME $ 243,800 $ 285,520 $ 532,564 $ 624,404
EARNINGS PER SHARE        
Earnings per share, basic $ 3.26 $ 3.70 $ 7.13 $ 8.01
Earnings per share, diluted $ 3.23 $ 3.65 $ 7.05 $ 7.90
Weighted-average shares outstanding, basic 74,725 77,234 74,644 77,988
Weighted-average shares outstanding, diluted 75,548 78,194 75,529 79,083
Client cash        
REVENUES:        
Asset-based $ 341,475 $ 378,415 $ 693,857 $ 796,690
Other asset-based        
REVENUES:        
Asset-based 259,533 211,300 507,872 414,773
Trailing        
REVENUES:        
Commission 363,976 323,925 725,187 641,578
Sales-based        
REVENUES:        
Commission $ 423,070 $ 298,961 $ 808,305 $ 585,033
v3.24.2
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
ASSETS    
Cash and cash equivalents $ 1,318,894 $ 465,671
Cash and equivalents segregated under federal or other regulations 1,530,150 2,007,312
Restricted cash 109,618 108,180
Receivables from:    
Receivables from clients, net 563,923 588,585
Receivables from brokers, dealers and clearing organizations 74,432 50,069
Advisor loans, net 1,757,727 1,479,690
Other receivables, net 763,632 743,317
Investment securities 89,853 91,311
Property and equipment, net 1,066,395 933,091
Goodwill 1,860,062 1,856,648
Intangible Assets, Net (Excluding Goodwill) 783,031 671,585
Other assets 1,586,010 1,390,021
Total assets 11,503,727 10,385,480
LIABILITIES:    
Payables to clients 1,963,988 2,266,176
Payables to broker-dealers and clearing organizations 212,394 163,337
Accrued advisory and commission expenses payable 240,370 216,541
Long-term Debt 4,442,840 3,734,111
Accounts payable and accrued liabilities 461,277 485,963
Other Liabilities, Noncurrent 1,667,511 1,440,373
Total liabilities 8,988,380 8,306,501
STOCKHOLDERS' EQUITY:    
Common stock, $0.001 par value; 600,000,000 shares authorized; 130,746,590 shares and 130,233,328 shares issued at June 30, 2024 and December 31, 2023, respectively 131 130
Additional paid-in capital 2,038,216 1,987,684
Treasury stock, at cost — 55,985,188 shares and 55,576,970 shares at June 30, 2024 and December 31, 2023, respectively (4,101,955) (3,993,949)
Retained earnings 4,578,955 4,085,114
Total stockholders' equity 2,515,347 2,078,979
Total liabilities and stockholders' equity $ 11,503,727 $ 10,385,480
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 600,000,000 600,000,000
Common stock, shares issued 130,746,590 130,233,328
v3.24.2
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parentheticals) - $ / shares
Jun. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 600,000,000 600,000,000
Common stock, shares issued 130,746,590 130,233,328
Treasury stock, shares 55,985,188 55,576,970
v3.24.2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Treasury Stock
Retained Earnings
BEGINNING BALANCE at Dec. 31, 2022 $ 2,167,522 $ 130 $ 1,912,886 $ (2,846,536) $ 3,101,072
BEGINNING BALANCE, shares at Dec. 31, 2022   129,656,000   50,408,000  
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Cash dividends on common stock (23,600)        
ENDING BALANCE at Mar. 31, 2023 2,192,933 $ 130 1,933,988 $ (3,159,714) 3,418,529
ENDING BALANCE, shares at Mar. 31, 2023   130,086,000   51,749,000  
BEGINNING BALANCE at Dec. 31, 2022 2,167,522 $ 130 1,912,886 $ (2,846,536) 3,101,072
BEGINNING BALANCE, shares at Dec. 31, 2022   129,656,000   50,408,000  
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 624,404       624,404
Issuance of common stock to settle restricted stock units (38,596)     $ (38,596)  
Issuance of common stock to settle restricted stock units, net, shares   396,000   158,000  
Treasury stock purchases (630,458)     $ (630,458)  
Treasury stock purchases, shares       2,983,000  
Cash dividends on common stock (46,723)       (46,723)
Stock option exercises and other 9,833   3,888 $ 1,226 4,719
Stock option exercises and other, shares   (90,000)   (34,000)  
Share-based compensation 36,054   36,054    
ENDING BALANCE at Jun. 30, 2023 2,122,066 $ 130 1,952,828 $ (3,514,364) 3,683,472
ENDING BALANCE, shares at Jun. 30, 2023   130,142,000   53,515,000  
BEGINNING BALANCE at Mar. 31, 2023 2,192,933 $ 130 1,933,988 $ (3,159,714) 3,418,529
BEGINNING BALANCE, shares at Mar. 31, 2023   130,086,000   51,749,000  
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 285,520       285,520
Issuance of common stock to settle restricted stock units (1,994)     $ (1,994)  
Issuance of common stock to settle restricted stock units, net, shares   28,000   10,000  
Treasury stock purchases (353,405)     $ (353,405)  
Treasury stock purchases, shares       1,777,000  
Cash dividends on common stock (23,139)       (23,139)
Stock option exercises and other 4,733 $ 0 1,422 $ 749 2,562
Stock option exercises and other, shares   (28,000)   (21,000)  
Share-based compensation 17,418   17,418    
ENDING BALANCE at Jun. 30, 2023 2,122,066 $ 130 1,952,828 $ (3,514,364) 3,683,472
ENDING BALANCE, shares at Jun. 30, 2023   130,142,000   53,515,000  
BEGINNING BALANCE at Dec. 31, 2023 2,078,979 $ 130 1,987,684 $ (3,993,949) 4,085,114
BEGINNING BALANCE, shares at Dec. 31, 2023   130,233,000   55,577,000  
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Cash dividends on common stock (22,400)        
ENDING BALANCE at Mar. 31, 2024 2,269,881 $ 131 2,016,666 $ (4,101,055) 4,354,139
ENDING BALANCE, shares at Mar. 31, 2024   130,705,000   55,999,000  
BEGINNING BALANCE at Dec. 31, 2023 2,078,979 $ 130 1,987,684 $ (3,993,949) 4,085,114
BEGINNING BALANCE, shares at Dec. 31, 2023   130,233,000   55,577,000  
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 532,564       532,564
Issuance of common stock to settle restricted stock units (39,318)     $ (39,318)  
Issuance of common stock to settle restricted stock units, net, shares   368,000   150,000  
Treasury stock purchases $ (70,005)     $ (70,005)  
Treasury stock purchases, shares 296,145     296,000  
Cash dividends on common stock $ (44,833)       (44,833)
Stock option exercises and other 13,976 $ 1 6,548 $ 1,317 6,110
Stock option exercises and other, shares   (146,000)   (38,000)  
Share-based compensation 43,984   43,984    
ENDING BALANCE at Jun. 30, 2024 2,515,347 $ 131 2,038,216 $ (4,101,955) 4,578,955
ENDING BALANCE, shares at Jun. 30, 2024   130,747,000   55,985,000  
BEGINNING BALANCE at Mar. 31, 2024 2,269,881 $ 131 2,016,666 $ (4,101,055) 4,354,139
BEGINNING BALANCE, shares at Mar. 31, 2024   130,705,000   55,999,000  
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 243,800       243,800
Issuance of common stock to settle restricted stock units (1,589)     $ (1,589)  
Issuance of common stock to settle restricted stock units, net, shares   15,000   6,000  
Treasury stock purchases 0     $ 0  
Treasury stock purchases, shares       0  
Cash dividends on common stock (22,422)       (22,422)
Stock option exercises and other 5,028   901 $ 689 3,438
Stock option exercises and other, shares   (27,000)   (20,000)  
Share-based compensation 20,649   20,649    
ENDING BALANCE at Jun. 30, 2024 $ 2,515,347 $ 131 $ 2,038,216 $ (4,101,955) $ 4,578,955
ENDING BALANCE, shares at Jun. 30, 2024   130,747,000   55,985,000  
v3.24.2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]        
Cash dividends (in dollars per share) $ 0.30 $ 0.30 $ 0.60 $ 0.60
v3.24.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 532,564 $ 624,404
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 138,157 114,431
Amortization of intangible assets 60,159 50,833
Amortization of debt issuance costs 5,486 4,051
Share-based compensation 43,984 36,054
Provision for bad debts 9,594 7,834
Deferred income taxes (65) (142)
Loan forgiveness 132,993 100,891
Other 33,463 11,400
Changes in operating assets and liabilities:    
Receivables from clients 25,330 (17,701)
Receivables from product sponsors, broker-dealers and clearing organizations (24,363) (10,648)
Advisor loans, net (416,481) (217,793)
Receivables from others (25,181) 4,328
Increase (Decrease) in Debt Securities, Trading, and Equity Securities, FV-NI 2,862 2,211
Operating leases (1,583) (1,578)
Other assets (151,553) (87,539)
Payables to clients (302,188) (606,260)
Payables to broker-dealers and clearing organizations 49,057 8,233
Accrued advisory and commission expenses payable 23,829 3,194
Accounts payable and accrued liabilities (44,545) (61,614)
Increase (Decrease) in Other Operating Liabilities 155,513 232,304
Net cash provided by operating activities 247,032 196,893
CASH FLOWS FROM INVESTING ACTIVITIES:    
Capital expenditures (249,946) (202,395)
Acquisitions, net of cash acquired (125,244) (300,320)
Payments to Acquire Held-to-Maturity Securities (3,565) (2,442)
Proceeds from maturity of securities classified as held-to-maturity 2,500 3,000
Net cash used in investing activities (376,255) (502,157)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from revolving credit facilities 280,000 607,000
Repayments of revolving credit facilities (560,000) (320,000)
Repayment of senior secured term loans (5,350) (5,350)
Proceeds from senior unsecured notes 998,325 0
Payment of debt issuance costs (17,332) 0
Payment of contingent consideration (48,563) 0
Tax payments related to settlement of restricted stock units (39,318) (38,596)
Repurchase of common stock (70,005) (625,059)
Dividends on common stock (44,833) (46,723)
Proceeds from stock option exercises and other 13,976 9,833
Principal payment of finance leases and obligations (178) (118)
Net cash provided by (used in) financing activities 506,722 (419,013)
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH 377,499 (724,277)
CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH — Beginning of period 2,581,163 3,137,270
CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH — End of period 2,958,662 2,412,993
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:    
Interest paid 118,103 84,000
Income taxes paid 198,037 75,239
Cash paid for amounts included in the measurement of operating lease liabilities 14,284 13,781
Cash paid for amounts included in the measurement of finance lease liabilities 4,351 4,276
NONCASH DISCLOSURES:    
Capital expenditures included in accounts payable and accrued liabilities 43,131 13,317
Lease assets obtained in exchange for operating lease liabilities 8,884 10,408
Contingent consideration liabilities recognized at acquisition date $ 40,380 $ 45,387
v3.24.2
Condensed Consolidated Statements of Cash Flows (Unaudited) cash, cash equivalent and restricted cash reconciliation - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]        
Cash and cash equivalents $ 1,318,894 $ 465,671 $ 761,187  
Cash segregated under federal and other regulations 1,530,150 2,007,312 1,548,065  
Restricted cash 109,618 108,180 103,741  
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 2,958,662 $ 2,581,163 $ 2,412,993 $ 3,137,270
v3.24.2
Organization and Description of the Company
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Description of the Company ORGANIZATION AND DESCRIPTION OF THE COMPANY
LPL Financial Holdings Inc. (“LPLFH”), a Delaware holding corporation, together with its consolidated subsidiaries (collectively, the “Company”), provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at institutions (collectively, “advisors”) in the United States. Through its custody and clearing platform, using both proprietary and third-party technology, the Company provides access to diversified financial products and services, enabling its advisors to offer personalized financial advice and brokerage services to retail investors (their “clients”). The Company’s most significant, wholly owned subsidiaries are described below:
•LPL Holdings, Inc. (“LPLH” or “Parent”) is an intermediate holding company and directly or indirectly owns 100% of the issued and outstanding common equity interests of all of LPLFH’s indirect subsidiaries, including a captive insurance subsidiary that underwrites insurance for various legal and regulatory risks of the Company.
•LPL Financial LLC (“LPL Financial”), with primary offices in San Diego, California; Fort Mill, South Carolina; Boston, Massachusetts; and Austin, Texas is a clearing broker-dealer and an investment advisor that principally transacts business for its advisors and institutions on behalf of their clients in a broad array of financial products and services. LPL Financial is licensed to operate in all 50 states, Washington D.C., Puerto Rico and the U.S. Virgin Islands.
•LPL Insurance Associates, Inc. operates as an insurance brokerage general agency that offers life and disability insurance products and services for LPL Financial advisors.
•AW Subsidiary, Inc. is a holding company for AdvisoryWorld and Blaze Portfolio Systems LLC (“Blaze”). AdvisoryWorld offers technology products, including proposal generation, investment analytics and portfolio modeling, to both the Company’s advisors and external clients in the wealth management industry. Blaze provides an advisor-facing trading and portfolio rebalancing platform.
•PTC Holdings, Inc. (“PTCH”) is a holding company for The Private Trust Company, N.A. (“PTC”). PTC is chartered as a non-depository limited purpose national bank, providing a wide range of trust, investment management oversight and custodial services for estates and families. PTC, together with its affiliate Fiduciary Trust Company of New Hampshire, also provides Individual Retirement Account (“IRA”) custodial services for LPL Financial.
•LPL Employee Services, LLC and its subsidiary, Allen & Company of Florida, LLC, along with their affiliate Financial Resources Group Investment Services, LLC (“FRGIS”), provide primary support for the Company’s employee advisor affiliation model.
v3.24.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
These unaudited condensed consolidated financial statements (“condensed consolidated financial statements”) are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), which require the Company to make estimates and assumptions regarding the valuation of certain financial instruments, acquisitions, goodwill and other intangibles, allowance for credit losses on receivables, share-based compensation, accruals for liabilities, income taxes, revenue and expense accruals and other matters that affect the condensed consolidated financial statements and related disclosures. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the results of operations for the interim periods presented. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the condensed consolidated financial statements.
The condensed consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the related notes for the year
ended December 31, 2023, contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”).
Recently Issued or Adopted Accounting Pronouncements
There are no relevant recently issued accounting pronouncements that would materially impact the Company’s condensed consolidated financial statements and related disclosures. There were no new accounting pronouncements adopted during the six months ended June 30, 2024 that materially impacted the Company’s condensed consolidated financial statements and related disclosures.
v3.24.2
Revenue
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenues REVENUE
Commission
The following table presents total commission revenue disaggregated by product category (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Commission revenue
Annuities$469,100 $358,845 $905,573 $702,906 
Mutual funds187,432 165,194 373,972 330,232 
Fixed income53,192 36,183 101,833 71,450 
Equities34,434 27,474 69,885 53,364 
Other42,888 35,190 82,229 68,659 
Total commission revenue
$787,046 $622,886 $1,533,492 $1,226,611 
The following table presents sales-based and trailing commission revenue disaggregated by product category (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Commission revenue
Sales-based
Annuities
$260,188 $172,540 $489,265 $334,716 
Fixed income
53,192 36,183 101,833 71,450 
Mutual funds
42,981 36,431 86,477 73,908 
Equities
34,434 27,474 69,885 53,364 
Other
32,275 26,333 60,845 51,595 
Total sales-based revenue
$423,070 $298,961 $808,305 $585,033 
Trailing
Annuities$208,912 $186,305 $416,308 $368,190 
Mutual funds144,451 128,763 287,495 256,324 
Other10,613 8,857 21,384 17,064 
Total trailing revenue$363,976 $323,925 $725,187 $641,578 
Total commission revenue
$787,046 $622,886 $1,533,492 $1,226,611 
Asset-Based
The following table sets forth asset-based revenue disaggregated by product category (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Asset-based revenue
Client cash
$341,475 $378,415 $693,857 $796,690 
Sponsorship programs
141,687 109,256 275,788 211,726 
Recordkeeping
117,846 102,044 232,084 203,047 
Total asset-based revenue$601,008 $589,715 $1,201,729 $1,211,463 
Service and Fee
The following table sets forth service and fee revenue disaggregated by recognition pattern (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Service and fee revenue
Over time(1)
$105,543 $94,587 $208,079 $187,616 
Point-in-time(2)
29,457 28,535 59,093 54,493 
Total service and fee revenue$135,000 $123,122 $267,172 $242,109 
_______________________________
(1)Service and fee revenue recognized over time includes revenue such as error and omission insurance fees, IRA custodian fees, and technology fees.
(2)Service and fee revenue recognized at a point-in-time includes revenue such as IRA termination fees, account fees, and confirmation fees.
Unearned Revenue
The Company records unearned revenue when cash payments are received or due in advance of the Company’s performance obligations, including amounts which are refundable. Unearned revenue increased from $156.2 million as of December 31, 2023 to $208.3 million as of June 30, 2024. The increase in unearned revenue for the six months ended June 30, 2024 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations, partially offset by $154.6 million of revenue recognized during the six months ended June 30, 2024 that was included in the unearned revenue balance as of December 31, 2023.
The Company receives cash in advance for advisory services to be performed and conferences to be held in future periods. For advisory services, revenue is recognized as the Company provides the administration, brokerage and execution services over time to satisfy the performance obligations. For conference revenue, the Company recognizes revenue as the conferences are held.
v3.24.2
Acquisitions
 3 Months Ended
Jun. 30, 2024
Business Combinations [Abstract]  
Acquisitions ACQUISITIONS
Acquisitions in the Current Period
Entered into a definitive purchase agreement to acquire Atria Wealth Solutions, Inc (“Atria”)
On February 13, 2024, the Company announced that it had entered into a definitive purchase agreement to acquire Atria, a wealth management solutions holding company headquartered in New York. As part of the agreement, Atria will transition its brokerage and advisory assets to the Company’s platform. The Company expects to close the transaction in the second half of 2024 for an initial purchase price of approximately $805 million and potential contingent consideration of up to $230 million based on future retention and up to approximately $100 million if other milestones, including the conversion of off-platform assets to the Company’s platform, are achieved. The
closing and the conversion, which is expected to be completed in mid-2025, are both subject to receipt of regulatory approval and other closing conditions.
Other Acquisitions
During the six months ended June 30, 2024, the Company completed nine acquisitions, eight of which were completed under the Liquidity & Succession solution in which the Company buys advisor practices. Certain of these acquisitions have been accounted for as business combinations and certain have been accounted for as asset acquisitions.
Business Combinations
The Company accounted for three acquisitions under the acquisition method of accounting for business combinations. Total consideration for these transactions was $80.6 million, which included $49.9 million of cash, and liabilities of $30.7 million for contingent consideration, which represents the acquisition date fair value of the additional cash consideration that may be transferred to the sellers if certain asset growth is achieved in the one to seven years following the closing. This contingent consideration may be settled for amounts up to $125.6 million in the years following the closing.
At June 30, 2024, the Company provisionally allocated $20.5 million of the purchase price to goodwill and $60.1 million to client relationships acquired as part of these acquisitions. The goodwill primarily includes synergies expected to result from combining operations and is deductible for tax purposes. The client relationships were valued using the income approach and assigned useful lives of 14 years. See Note 7 – Goodwill and Other Intangibles, Net, for additional information.
Asset Acquisitions
The Company accounted for six other acquisitions as asset acquisitions. These transactions included total initial consideration of $77.4 million, including $48.5 million which was allocated to advisor relationships and $28.9 million which was allocated to client relationships. These relationships were assigned useful lives of 14 years and the related transactions include potential contingent payments of up to $36.9 million in the years following the closing if certain asset growth is achieved. The Company has not recognized a liability for these contingent payments as the amounts to be paid will be uncertain until a future measurement date. See Note 7 – Goodwill and Other Intangibles, Net, for additional information.
Acquisitions Completed in Prior Periods
Acquisition of Financial Resources Group Investment Services, LLC
On January 31, 2023, the Company acquired Financial Resources Group Investment Services, LLC, a broker-dealer and independent branch office, in order to expand its addressable markets and complement organic growth. The Company accounted for the acquisition under the acquisition method of accounting for business combinations, and total consideration for the transaction was $189.2 million, which included an initial cash payment of $143.8 million and a liability of $45.4 million for contingent consideration. The Company allocated $129.7 million of the purchase price to goodwill, $53.5 million to definite-lived intangible assets, $9.0 million to cash acquired and the remainder to other assets acquired and liabilities assumed as part of the acquisition. The goodwill primarily includes synergies expected to result from combining operations and is deductible for tax purposes. See Note 7 – Goodwill and Other Intangibles, Net, for additional information.
Other Acquisitions
During the year ended December 31, 2023, the Company completed a total of 19 acquisitions under the Liquidity & Succession solution. The Company also completed the acquisition of Boenning & Scattergood’s Private Client Group on January 31, 2023. Certain of these acquisitions have been accounted for as business combinations and certain have been accounted for as asset acquisitions.
Business Combinations
The Company accounted for five Liquidity & Succession transactions under the acquisition method of accounting for business combinations during the year ended December 31, 2023. Total consideration for these transactions was $190.2 million, which included initial consideration of $147.4 million, including $140.3 million of cash and a liability of $42.7 million for contingent consideration. At December 31, 2023, the Company allocated $84.5 million of the purchase price to goodwill and $105.7 million to the definite-lived intangible assets acquired as part of these acquisitions. The goodwill primarily includes synergies expected to result from combining operations and is deductible for tax purposes.
The Company recorded purchase accounting adjustments during the six months ended June 30, 2024 related to acquisitions which were completed during the fourth quarter of 2023 and for which the Company’s purchase accounting analysis was ongoing. These adjustments resulted in a $39.4 million increase in customer relationships, a $9.7 million increase in liabilities for contingent consideration, a $12.5 million decrease in technology, and a $17.1 million decrease in goodwill. The intangible assets are comprised primarily of client relationships which were assigned useful lives of 15 years. See Note 7 – Goodwill and Other Intangibles, Net, for additional information.
Asset Acquisitions
The Company accounted for 15 other acquisitions as asset acquisitions during the year ended December 31, 2023. These transactions included initial consideration of $180.4 million, including $142.3 million of which was allocated to client relationships and $38.1 million of which was allocated to advisor relationships. These transactions include potential contingent payments of up to $73.1 million in the three years following the closing if certain asset growth is achieved. The Company has not recognized a liability for these contingent payments as the amounts to be paid will be uncertain until a future measurement date. See Note 7 - Goodwill and Other Intangibles, Net, for additional information.
v3.24.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:    
Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
There have been no transfers of assets or liabilities between these fair value measurement classifications during the six months ended June 30, 2024 or 2023.
The Company’s fair value measurements are evaluated within the fair value hierarchy, based on the nature of inputs used to determine the fair value at the measurement date. At June 30, 2024 and December 31, 2023, the Company had the following financial assets and liabilities that are measured at fair value on a recurring basis:
Cash Equivalents — The Company’s cash equivalents include money market funds and U.S. government obligations, which are short term in nature with readily determinable values derived from active markets.
Cash Equivalents Segregated Under Federal or Other Regulations — The Company’s cash equivalents segregated under federal or other regulations include U.S. treasury bills, which are short term in nature with readily determinable values derived from active markets.
Trading Securities and Securities Sold, But Not Yet Purchased — The Company’s trading securities consist of house account model portfolios established and managed for the purpose of benchmarking the performance of its fee-based advisory platforms and temporary positions resulting from the processing of client transactions.
The Company uses prices obtained from independent third-party pricing services to measure the fair value of its trading securities. Prices received from the pricing services are validated when security prices move beyond a certain deviation threshold using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices and review of other relevant market data including implied yields of major categories of securities. In general, these quoted prices are derived from active markets for identical assets or liabilities. When quoted prices in active markets for identical assets and liabilities are not available, the quoted prices are based on similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. For negotiable certificates of deposit and treasury securities, the Company utilizes market-based inputs, including observable market interest rates that correspond to the remaining maturities or the next interest reset dates. At June 30, 2024 and December 31, 2023, the Company did not adjust prices received from the independent third-party pricing services.
Other Assets — The Company’s other assets include: (1) deferred compensation plan assets that are invested in life insurance, money market and other mutual funds, which are actively traded and valued based on quoted market prices; and (2) certain non-traded real estate investment trusts, which are valued using quoted prices for identical or similar securities and other inputs that are observable or can be corroborated by observable market data.
Fractional Shares — The Company’s investment in fractional shares held by customers is reflected in other assets while the related purchase obligation for such shares is reflected in other liabilities. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its investment in fractional shares held by customers and the related repurchase obligation. Prices received from the pricing services are validated using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices and review of other relevant market data including implied yields of major categories of securities. At June 30, 2024 and December 31, 2023, the Company did not adjust prices received from the independent third-party pricing services.
Contingent Consideration — The Company measures contingent consideration liabilities at fair value at the acquisition date, as applicable, and thereafter on a recurring basis using unobservable (Level 3) inputs. These contingent consideration liabilities are reflected in other liabilities. See Note 4 - Acquisitions for additional information.
Level 3 Recurring Fair Value Measurements
The Company determines the fair value for its contingent consideration obligations using Monte-Carlo simulation and discounted cash flows models. Contingent payments are estimated by applying significant unobservable inputs, including forecasted growth rates applied to project future revenue or asset growth and discount rates which are based on the cost of debt and equity. These projections are measured against the performance targets specified in each respective acquisition agreement, which may include growth in assets under management, net new assets, asset conversion or retention, or revenue growth. Significant increases or decreases in the Company’s forecasted growth rates over the measurement period or discount rates would result in a higher or lower fair value measurement.
The following table summarizes inputs used in the measurement of contingent consideration (dollars in thousands):
Quantitative Information About Level 3 Fair Value Measurements
June 30, 2024TypeValuation TechniquesUnobservable InputsRange
$129,848 Contingent Consideration
Monte-Carlo Simulation Model
Forecasted Growth Rates
12.0% -29.5%
Discount Rate
13.3%- 15.3%
Equivalency Rate(1)
5.3% - 6.3%
— 
Contingent Consideration
Discounted Cash Flow Model
Discount Rate
9.3%
$129,848 
____________________
(1)Equivalency rate is defined as the prevailing market interest rate used to discount future payments.
Quantitative Information About Level 3 Fair Value Measurements
December 31, 2023TypeValuation TechniquesUnobservable InputsRange
$114,844 Contingent Consideration
Monte-Carlo Simulation Model
Forecasted Growth Rates
12.0% - 29.5%
Discount Rate
13.6%- 15.7%
4,000 
Contingent Consideration
Discounted Cash Flow Model
Discount Rate
9.3%
$118,844 


The following table summarizes the changes in fair value for the Company’s Level 3 liabilities during the periods presented (in thousands):

Three Months Ended June 30,
Six Months Ended June 30,
2024202320242023
Balance - Beginning of period
$87,262 $45,280 $118,844 $3,860 
Additions
20,462 4,053 40,380 45,387 
Payments
(2,500)— (54,000)— 
Fair value adjustments
24,624 54 24,624 140 
Balance - End of period
$129,848 $49,387 $129,848 $49,387 
Recurring Fair Value Measurements
The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
June 30, 2024Level 1Level 2Level 3Total
Assets    
Cash equivalents$398,185 $— $— $398,185 
Cash equivalents segregated under federal or other regulations645,568 — — 645,568 
Restricted cash
103,038 — — 103,038 
Investment securities — trading:    
Mutual funds44,651 — — 44,651 
U.S. treasury obligations28,401 — — 28,401 
Equity securities137 — — 137 
Money market funds119 — — 119 
Debt securities— 155 — 155 
Total investment securities — trading73,308 155 — 73,463 
Other assets:
Deferred compensation plan768,321 — — 768,321 
Fractional shares — investment(1)
210,930 — — 210,930 
Other investments— 4,201 — 4,201 
Total other assets:979,251 4,201 — 983,452 
Total assets at fair value$2,199,350 $4,356 $— $2,203,706 
Liabilities    
Other liabilities:
Securities sold, but not yet purchased:    
Equity securities$160 $— $— $160 
Mutual funds
2 — — 2 
Total securities sold, but not yet purchased162 — — 162 
Fractional shares — repurchase obligation(1)
210,930 — — 210,930 
Contingent consideration
— — 129,848 129,848 
Total other liabilities211,092 — 129,848 340,940 
Total liabilities at fair value$211,092 $— $129,848 $340,940 
____________________
(1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s dividend reinvestment program (“DRIP”).
The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
December 31, 2023Level 1Level 2Level 3Total
Assets
Cash equivalents$166 $— $— $166 
Cash equivalents segregated under federal or other regulations720,077 — — 720,077 
Restricted cash
103,226 — — 103,226 
Investment securities — trading:
Mutual funds50,518 — — 50,518 
U.S. treasury obligations25,388 — — 25,388 
Money market funds107 — — 107 
Equity securities43 — — 43 
Debt securities— 32 — 32 
Total investment securities — trading76,056 32 — 76,088 
Other assets:
Deferred compensation plan677,548 — — 677,548 
Fractional shares — investment(1)
177,131 — — 177,131 
Other investments— 3,960 — 3,960 
Total other assets854,679 3,960 — 858,639 
Total assets at fair value$1,754,204 $3,992 $— $1,758,196 
Liabilities
Other liabilities:
Securities sold, but not yet purchased:
Equity securities$487 $— $— $487 
Mutual funds55 — — 55 
Total securities sold, but not yet purchased542 — — 542 
Fractional shares — repurchase obligation(1)
177,131 — — 177,131 
    Contingent consideration
— — 118,844 118,844 
Total other liabilities177,673 — 118,844 296,517 
Total liabilities at fair value$177,673 $— $118,844 $296,517 
____________________
(1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP.
Fair Value of Financial Instruments Not Measured at Fair Value
The following tables summarize the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not measured at fair value (in thousands):
June 30, 2024Carrying ValueLevel 1Level 2Level 3Total Fair Value
Assets    
Cash$920,709 $920,709 $— $— $920,709 
Cash segregated under federal or other regulations884,582 884,582 — — 884,582 
Restricted cash6,580 6,580 — — 6,580 
Receivables from clients, net563,923 — 563,923 — 563,923 
Receivables from brokers, dealers and clearing organizations74,432 — 74,432 — 74,432 
Advisor repayable loans, net(1)
356,851 — — 271,546 271,546 
Other receivables, net763,632 — 763,632 — 763,632 
Investment securities — held-to-maturity securities16,390 — 16,240 — 16,240 
Other assets:
Securities borrowed3,726 — 3,726 — 3,726 
Deferred compensation plan(2)
9,503 9,503 — — 9,503 
Other investments(3)
5,298 — 5,298 — 5,298 
Total other assets18,527 9,503 9,024 — 18,527 
Liabilities
Client payables$1,963,988 $— $1,963,988 $— $1,963,988 
Payables to brokers, dealers and clearing organizations212,394 — 212,394 — 212,394 
Corporate debt and other borrowings, net4,442,840 — 4,396,340 — 4,396,340 
December 31, 2023Carrying ValueLevel 1Level 2Level 3Total Fair Value
Assets
Cash$465,505 $465,505 $— $— $465,505 
Cash segregated under federal or other regulations1,287,235 1,287,235 — — 1,287,235 
Restricted cash4,954 4,954 — — 4,954 
Receivables from clients, net588,585 — 588,585 — 588,585 
Receivables from brokers, dealers and clearing organizations50,069 — 50,069 — 50,069 
Advisor repayable loans, net(1)
340,985 — — 236,888 236,888 
Other receivables, net743,317 — 743,317 — 743,317 
Investment securities - held-to-maturity securities15,223 — 15,079 — 15,079 
Other assets:
Securities borrowed4,334 — 4,334 — 4,334 
Deferred compensation plan(2)
6,217 6,217 — — 6,217 
Other investments(3)
4,695 — 4,695 — 4,695 
Total other assets15,246 6,217 9,029 — 15,246 
Liabilities
Client payables$2,266,176 $— $2,266,176 $— $2,266,176 
Payables to brokers, dealers and clearing organizations163,337 — 163,337 — 163,337 
Corporate debt and other borrowings, net3,734,111 — 3,680,199 — 3,680,199 
__________________
(1)Includes repayable loans and forgivable loans which have converted to repayable upon advisor termination or change in agreed upon terms.
(2)Includes cash balances awaiting investment or distribution to plan participants.
(3)Other investments include Depository Trust Company common shares and Federal Reserve stock.
v3.24.2
Investment Securities
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIES
The Company’s investment securities include debt and equity securities that the Company has classified as trading securities, which are carried at fair value, as well as investments in U.S. government notes, which are held by The Private Trust Company, N.A. to satisfy minimum capital requirements of the OCC. These securities are recorded at amortized cost and classified as held-to-maturity as the Company has both the intent and ability to hold these investments to maturity.

The following table summarizes investment securities (in thousands):
 June 30, 2024December 31, 2023
Trading securities — at fair value:  
Mutual funds$44,651 $50,518 
U.S. treasury obligations28,401 25,388 
Equity securities137 43 
Money market funds119 107 
Debt securities155 32 
Total trading securities$73,463 $76,088 
Held-to-maturity securities — at amortized cost:
U.S. government notes$16,390 $15,223 
Total held-to-maturity securities$16,390 $15,223 
Total investment securities$89,853 $91,311 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
At June 30, 2024, the held-to-maturity securities were scheduled to mature as follows (in thousands):
Within one yearAfter one but within five yearsAfter five but within ten yearsAfter ten yearsTotal
U.S. government notes — at amortized cost$2,494 $13,896 $— $— $16,390 
U.S. government notes — at fair value$2,471 $13,769 $— $— $16,240 
v3.24.2
Goodwill and Other Intangible Assets
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets GOODWILL AND OTHER INTANGIBLES, NET
A summary of the activity impacting goodwill is presented below (in thousands):
Balance at December 31, 2022
$1,642,468 
Goodwill acquired214,180 
Balance at December 31, 2023
1,856,648 
Purchase accounting adjustments
(17,120)
Goodwill acquired20,534 
Balance at June 30, 2024
$1,860,062 
The Company completed various acquisitions, which were accounted for under the acquisition method of accounting for business combinations and as asset acquisitions, and recorded purchase accounting adjustments during the periods presented. See Note 4 - Acquisitions, for additional information.
The components of other intangibles, net were as follows at June 30, 2024 (in thousands):
Weighted-Average Life 
Remaining
(in years)		Gross
 Carrying 
Value		 Accumulated AmortizationNet
 Carrying 
Value
Definite-lived intangibles, net(1):
    
Advisor and institution relationships
8.2$984,677 $(651,312)$333,365 
Product sponsor relationships1.7234,086 (215,031)19,055 
Client relationships12.8448,521 (66,338)382,183 
Technology8.420,930 (12,321)8,609 
Total definite-lived intangible assets, net $1,688,214 $(945,002)$743,212 
Other indefinite-lived intangibles:    
Trademark and trade name   39,819 
Total other intangibles, net   $783,031 
_______________________________
(1)During the six months ended June 30, 2024, the Company completed various acquisitions. See Note 4 - Acquisitions, for additional information.
The components of other intangibles, net were as follows at December 31, 2023 (in thousands):
Weighted-Average Life 
Remaining
(in years)		Gross
 Carrying 
Value		 Accumulated AmortizationNet
 Carrying 
Value
Definite-lived intangibles, net(1):
    
Advisor and institution relationships
7.3$935,478 $(614,277)$321,201 
Product sponsor relationships2.2234,086 (209,076)25,010 
Client relationships
12.6313,585 (51,328)262,257 
Technology8.733,460 (10,162)23,298 
Total definite-lived intangibles, net$1,516,609 $(884,843)$631,766 
Other indefinite-lived intangibles:
Trademark and trade name39,819 
Total other intangibles, net$671,585 
_______________________________
(1)    During the year ended December 31, 2023, the Company completed various acquisitions. See Note 4 - Acquisitions, for additional information.
Total amortization of other intangibles was $30.6 million and $26.7 million for the three months ended June 30, 2024 and 2023, respectively, and $60.2 million and $50.8 million for the six months ended June 30, 2024 and 2023, respectively. Future amortization is estimated as follows (in thousands):
2024 - remainder$61,211 
2025113,428 
202675,172 
202770,023 
202864,231 
Thereafter359,147 
Total
$743,212 
v3.24.2
Other Assert and Other Liabilities
 6 Months Ended
Jun. 30, 2024
Other Assets And Other Liabilities [Abstract]  
Other Assets and Other Liabilities OTHER ASSETS AND OTHER LIABILITIES
The components of other assets and other liabilities were as follows (dollars in thousands):
 June 30, 2024December 31, 2023
Other assets:
Deferred compensation$777,824 $683,765 
Prepaid assets151,447 173,039 
Fractional shares — investment(1)
210,930 177,131 
Deferred tax assets, net167,515 167,450 
Operating lease assets93,912 93,797 
Debt issuance costs, net16,665 9,065 
Other167,717 85,774 
Total other assets$1,586,010 $1,390,021 
Other liabilities:
Deferred compensation$775,690 $684,178 
Unearned revenue(2)
208,257 156,214 
Fractional shares — repurchase obligation(1)
210,930 177,131 
Operating lease liabilities122,008 123,477 
Finance lease liabilities105,287 105,465 
Taxes payable
65,330 24,522 
Contingent consideration
129,848 118,844 
Other50,161 50,542 
Total other liabilities$1,667,511 $1,440,373 
_______________________________
(1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP program.
(2)See Note 3 - Revenue for further information.
v3.24.2
Corporate Debt and Other Borrowings, Net
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Corporate Debt and Other Borrowings, Net CORPORATE DEBT AND OTHER BORROWINGS, NET
The Company’s outstanding corporate debt and other borrowings, net were as follows (in thousands):
June 30, 2024December 31, 2023
Corporate Debt
 
Balance
Applicable
Margin
Interest Rate
 
Balance
Applicable
Margin
Interest rateMaturity
Term Loan B(1)
$1,021,850 
SOFR+185 bps
7.179 %$1,027,200 
SOFR+185 bps
7.206 %11/12/2026
2027 Senior Notes(1)
500,000 Fixed Rate5.700 %— — — %5/20/2027
2027 Senior Notes(1)
400,000 Fixed Rate4.625 %400,000 Fixed Rate4.625 %11/15/2027
2028 Senior Notes(1)
750,000 Fixed Rate6.750 %750,000 
Fixed Rate
6.750 %11/17/2028
2029 Senior Notes(1)
900,000 Fixed Rate4.000 %900,000 Fixed Rate4.000 %3/15/2029
2031 Senior Notes(1)
400,000 Fixed Rate4.375 %400,000 Fixed Rate4.375 %5/15/2031
2034 Senior Notes(1)
500,000 Fixed Rate6.000 %— — — %5/20/2034
Total Corporate Debt4,471,850 3,477,200 
Less: Unamortized Debt Issuance Cost(29,010)(23,089)
Corporate debt, net$4,442,840 $3,454,111 
Other Borrowings
Revolving Credit Facility
— 
ABR+37.5 bps / SOFR+147.5 bps
8.875 %280,000 
ABR+37.5 bps / SOFR+147.5 bps
6.966 %5/20/2029
Total other borrowings$— $280,000 
Corporate Debt and Other Borrowings, Net$4,442,840 $3,734,111 
_______________________________
(1)No leverage or interest coverage maintenance covenants.

The following table presents amounts outstanding and available under the Company’s external lines of credit at June 30, 2024 (in millions):
DescriptionBorrowerMaturity DateOutstandingAvailable
Senior secured, revolving credit facilityLPL Holdings, Inc.May 2029$— $2,250 
Broker-dealer revolving credit facilityLPL Financial LLCMay 2025$— $1,000 
Unsecured, uncommitted lines of creditLPL Financial LLC
None
$— $75 
Unsecured, uncommitted lines of creditLPL Financial LLC
September 2024
$— $50 
Secured, uncommitted lines of creditLPL Financial LLCMarch 2025$— $75 
Secured, uncommitted lines of creditLPL Financial LLCNone$— unspecified
Secured, uncommitted lines of creditLPL Financial LLCNone$— unspecified
Issuance of 2027 Senior Notes and 2034 Senior Notes
On May 20, 2024, LPLH issued $500.0 million in aggregate principal amount of 5.700% senior notes due 2027 (“2027 Senior Notes”) and $500.0 million in aggregate principal amount of 6.000% senior notes due 2034 (the “2034 Senior Notes” and, together with the 2027 Notes, the “Senior Notes”). The Senior Notes are unsecured obligations of the Company and are fully and unconditionally guaranteed on a senior unsecured basis by LPLFH. The Company used a portion of the proceeds from the issuance to repay borrowings made under its senior secured revolving credit facility and intends to use a portion of the proceeds to finance the Atria acquisition.
The 2027 Senior Notes will mature on May 20, 2027, and interest is payable semi-annually. The Company may redeem all or part of the 2027 Senior Notes on or prior to April 20, 2027 at a redemption price that is equal to the greater of: (i) the remaining scheduled payments of principal and interest discounted at the Treasury Rate (as defined in the Second Supplemental Indenture dated May 20, 2024) plus 20 basis points less interest accrued to the redemption date, and (ii) 100% of the principal amount of the 2027 Senior Notes to be redeemed plus accrued interest. On or after April 20, 2027, the Company may redeem the 2027 Senior Notes at 100% of the principal amount of the notes to be redeemed plus accrued interest. The 2027 Senior Notes are also subject to a special mandatory redemption if the Atria acquisition is terminated or does not occur before March 7, 2025, in which case, the Company will be required to redeem all of the 2027 Senior Notes at a redemption price equal to 101% of the aggregate principal, plus accrued and unpaid interest.
The 2034 Senior Notes will mature on May 20, 2034 and interest is payable semi-annually. The Company may redeem all or part of the 2034 Senior Notes on or prior to February 20, 2034 at a redemption price that is equal to the greater of: (i) the remaining scheduled payments of principal and interest discounted at the Treasury Rate (as defined in the Third Supplemental Indenture dated May 20, 2024) plus 25 basis points less interest accrued to the redemption date, and (ii) 100% of the principal amount of the 2034 Senior Notes to be redeemed plus accrued interest. On or after February 20, 2034, the Company may redeem the 2034 Senior Notes at 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest. The 2034 Notes will not be subject to any special mandatory redemption if the Atria acquisition is not completed.
In connection with the issuance of the Senior Notes, the Company incurred $7.1 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition.
Issuance of 2028 Senior Notes
LPLH issued $750.0 million in aggregate principal amount of 6.750% senior notes on November 17, 2023 at 99.929% (“2028 Senior Notes”). The 2028 Senior Notes are unsecured obligations that will mature on November 17, 2028, and are fully and unconditionally guaranteed on a senior unsecured basis by LPLFH. The Company used the proceeds from the issuance to repay borrowings made under its senior secured revolving credit facility and for general corporate purposes. In connection with the issuance of the 2028 Senior Notes, the Company incurred $6.3 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition.
Credit Agreement and Parent Revolving Credit Facility
On March 13, 2023, LPLFH and LPLH entered into a sixth amendment agreement to the Company’s amended and restated credit agreement (the “Credit Agreement”), which, among other things, replaced LIBOR with SOFR.
On May 20, 2024, LPLH amended its revolving credit facility to, among other things, increase the maximum borrowing from $2.0 billion to $2.25 billion and extend the maturity of the revolving credit facility to May 2029. In connection with the amendment of the credit facility, LPLH incurred $8.6 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition.
The Credit Agreement subjects the Company to certain financial and non-financial covenants. As of June 30, 2024, the Company was in compliance with such covenants.
Broker-Dealer Revolving Credit Facility
On May 20, 2024, LPL Financial, the Company’s broker-dealer subsidiary, renewed its revolving credit facility to extend the maturity of the revolving credit facility to May 2025. The revolving credit facility allows for a maximum borrowing of up to $1.0 billion and borrowings under the credit facility bear interest at a rate per annum equal to 1.25% per annum plus the greatest of (i) SOFR plus 0.10%, (ii) the effective federal funds rate and (iii) the overnight bank funding rate, in each case, as such rate is administered or determined by the Federal Reserve Bank of New York from time to time. In connection with the renewal of the credit facility, LPL Financial incurred $1.6 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition. The broker-dealer credit agreement subjects LPL Financial to certain financial and non-financial covenants. LPL Financial was in compliance with such covenants as of June 30, 2024.
Other External Lines of Credit
LPL Financial maintained five uncommitted lines of credit as of June 30, 2024. Two of the lines have unspecified limits, which are primarily dependent on LPL Financial’s ability to provide sufficient collateral. The other three lines have a total limit of $200.0 million, which allow for uncollateralized borrowings. There were no balances outstanding under these lines at June 30, 2024 or December 31, 2023.
v3.24.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies COMMITMENTS AND CONTINGENCIES
Service and Development Contracts 
The Company is party to certain long-term contracts for systems and services that enable back-office trade processing and clearing for its product and service offerings.
Guarantees 
The Company occasionally enters into contracts that contingently require it to indemnify certain parties against third-party claims. The terms of these obligations vary and, because a maximum obligation is not explicitly stated, the Company has determined that it is not possible to make an estimate of the amount that it could be obligated to pay under such contracts.
LPL Financial provides guarantees to securities clearing houses and exchanges under their standard membership agreements, which require a member to guarantee the performance of other members. Under these agreements, if a member becomes unable to satisfy its obligations to the clearing houses and exchanges, all other members would be required to meet any shortfall. The Company’s liability under these arrangements is not quantifiable and could exceed the cash and securities it has posted as collateral. However, the potential requirement for the Company to make payments under these agreements is remote. Accordingly, no liability has been recognized for these transactions.
Loan Commitments 
From time to time, LPL Financial makes loans to advisors and institutions, primarily to newly recruited advisors and institutions to assist in the transition process, which may be forgivable. Due to timing differences, LPL Financial may make commitments to issue such loans prior to actually funding them. These commitments are generally contingent upon certain events occurring, including but not limited to the advisor or institution joining LPL Financial. LPL Financial had no significant unfunded loan commitments at June 30, 2024 or December 31, 2023.
Legal and Regulatory Matters
The Company is subject to extensive regulation and supervision by U.S. federal and state agencies and various self-regulatory organizations. The Company and its advisors periodically engage with such agencies and organizations, in the context of examinations or otherwise, to respond to inquiries, informational requests and investigations. From time to time, such engagements result in regulatory complaints or other matters, the resolution of which has in the past and may in the future include fines, customer restitution and other remediation. Assessing the probability of a loss occurring and the timing and amount of any loss related to a legal proceeding or regulatory matter is inherently difficult. While the Company exercises significant and complex judgments to make certain estimates presented in its condensed consolidated financial statements, there are particular uncertainties and complexities involved when assessing the potential outcomes of legal proceedings and regulatory matters. The Company’s assessment process considers a variety of factors and assumptions, which may include: the procedural
status of the matter and any recent developments; prior experience and the experience of others in similar matters; the size and nature of potential exposures; available defenses; the progress of fact discovery; the opinions of counsel and experts; or the potential opportunities for settlement and the status of any settlement discussions. The Company monitors these factors and assumptions for new developments and re-assesses the likelihood that a loss will occur and the estimated range or amount of loss, if those amounts can be reasonably determined. The Company has established an accrual for those legal proceedings and regulatory matters for which a loss is both probable and the amount can be reasonably estimated.
In October 2022, the Company received a request for information from the SEC in connection with an investigation of the Company’s compliance with records preservation requirements for business-related electronic communications stored on personal devices or messaging platforms that have not been approved by the Company. In 2023, the SEC proposed a potential settlement, under which the Company would pay a $50.0 million civil monetary penalty. As a result, the Company recorded $40.0 million in other expense in the consolidated statements of income for the year ended December 31, 2023 to reflect the amount of the penalty that is not covered by the Company’s captive insurance subsidiary. On March 22, 2024, the Company reached a settlement in principle with the staff of the SEC to resolve its civil investigation. The Company expects to pay the civil monetary penalty of $50.0 million during the second half of 2024. The settlement in principle remains subject to approval by the SEC.

In July 2024, a putative class action lawsuit was filed against LPL Financial in federal district court alleging certain violations of law in connection with its cash sweep programs. The Company intends to defend vigorously against the lawsuit.
Third-Party Insurance
The Company maintains third-party insurance coverage for certain potential legal proceedings, including those involving certain client claims. With respect to such client claims, the estimated losses on many of the pending matters are less than the applicable deductibles of the insurance policies.
Self-Insurance
The Company has self-insurance for certain potential liabilities through its captive insurance subsidiary. Liabilities associated with the risks that are retained by the Company are not discounted and are estimated by considering, in part, historical claims experience, severity factors, and actuarial assumptions and estimates. The estimated accruals for these potential liabilities could be significantly affected if future occurrences and claims differ from such assumptions and historical trends, so there are particular complexities and uncertainties involved when assessing the adequacy of loss reserves for potential liabilities that are self-insured. Self-insurance liabilities are included in accounts payable and accrued liabilities in the condensed consolidated statements of financial condition. Self-insurance related charges are included in other expense in the condensed consolidated statements of income.
The following table provides a reconciliation of the beginning and ending balances of self-insurance liabilities for the periods presented (in thousands):
Six Months Ended June 30,
20242023
Beginning balance — January 1$82,883 $74,071 
Losses incurred18,611 18,093 
Losses paid(20,339)(10,424)
Ending balance — June 30
$81,155 $81,740 
Other Commitments
As of June 30, 2024, the Company had approximately $481.0 million of client margin loans that were collateralized with securities having a fair value of approximately $673.4 million that LPL Financial can repledge, loan or sell. Of these securities, approximately $362.6 million were client-owned securities pledged to the Options Clearing Corporation as collateral to secure client obligations related to options positions. As of June 30, 2024, there were no restrictions that materially limited the Company’s ability to repledge, loan or sell the remaining $310.8 million of client collateral.
Investment securities on the condensed consolidated statements of financial condition include $8.5 million and $5.5 million of trading securities pledged to the Options Clearing Corporation at June 30, 2024 and December 31, 2023,
respectively, and $19.9 million of trading securities pledged to the National Securities Clearing Corporation at both June 30, 2024 and December 31, 2023.
v3.24.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2024
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block] STOCKHOLDERS’ EQUITY
Dividends
The payment, timing and amount of any dividends are subject to approval by the Company’s Board of Directors (the “Board”) as well as certain limits under the Credit Agreement. Cash dividends per share of common stock and total cash dividends paid on a quarterly basis were as follows (in millions, except per share data):
20242023
Dividend per ShareTotal Cash DividendDividend per ShareTotal Cash Dividend
First quarter$0.30 $22.4 $0.30 $23.6 
Second quarter$0.30 $22.4 $0.30 $23.1 
Share Repurchases
The Company engages in a share repurchase program that was approved by the Board, pursuant to which LPLFH may repurchase its issued and outstanding shares of common stock from time to time. Repurchased shares are included in treasury stock on the condensed consolidated statements of financial condition.
During the six months ended June 30, 2024 LPLFH repurchased 296,145 shares of common stock at a weighted-average price of $236.39 for a total of $70.0 million. As of June 30, 2024, the Company had $830.0 million remaining under the existing share repurchase program. As a result of the Company’s planned acquisition of Atria, the Company paused share repurchases during the first quarter of 2024. Future share repurchases may be effected in open market or privately negotiated transactions, including transactions with affiliates, with the timing of purchases and the amount of stock purchased generally determined at the discretion of the Company within the constraints of the Credit Agreement and the Company’s general working capital needs.
v3.24.2
Share-Based Compensation
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity SHARE-BASED COMPENSATION
In May 2021, the Company adopted its 2021 Omnibus Equity Incentive Plan (the “2021 Plan”), which provides for the granting of stock options, warrants, restricted stock awards, restricted stock units, deferred stock units, performance stock units and other equity-based compensation to the Company’s employees, non-employee directors and other service providers. The 2021 Plan serves as the successor to the Company’s 2010 Omnibus Equity Incentive Plan (the “2010 Plan”). Following the adoption of the 2021 Plan, the Company is no longer making grants under the 2010 Plan, and the 2021 Plan is the only plan under which equity awards are granted. However, awards previously granted under the 2010 Plan will remain outstanding until vested, exercised or forfeited, as applicable.
There were 17,754,197 shares authorized for grant under the 2021 Plan and 11,713,249 shares remaining available for future issuance at June 30, 2024.
Stock Options and Warrants
The Company has not granted stock options or warrants since 2019. The following table summarizes the Company’s stock option and warrant activity as of and for the six months ended June 30, 2024:
Number of
Shares		Weighted-
Average
Exercise Price		Weighted-Average
Remaining
Contractual Term
(Years)		Aggregate
Intrinsic
Value
(In thousands)
Outstanding — December 31, 2023
546,820 $54.81 
Granted— $— 
Exercised(138,012)$47.17 
Forfeited and Expired— $— 
Outstanding — June 30, 2024408,808 $57.39 3.34$90,718 
Exercisable — June 30, 2024408,808 $57.39 3.34$90,718 
Exercisable and expected to vest — June 30, 2024408,808 $57.39 3.34$90,718 
The following table summarizes information about outstanding stock options and warrants as of June 30, 2024:
 OutstandingExercisable
Range of Exercise PricesNumber of
Shares		Weighted-
Average
Exercise
Price		Weighted-Average
Remaining Life
(Years)		Number of
Shares		Weighted-
Average
Exercise
Price
$19.85 - $25.0058,581 $19.85 1.6558,581 $19.85 
$25.01 - $35.00— $— 0.00— $— 
$35.01 - $45.0081,863 $39.48 2.5981,863 $39.48 
$45.01 - $65.006,332 $45.55 0.686,332 $45.55 
$65.01 - $75.00127,691 $65.50 3.52127,691 $65.50 
$75.01 - $80.00134,341 $77.53 4.50134,341 $77.53 
 408,808 $57.39 3.34408,808 $57.39 
The Company recognized no share-based compensation expense related to the vesting of stock options awarded to employees and officers during the three and six months ended June 30, 2024 and 2023. As of June 30, 2024, there was no unrecognized compensation cost related to non-vested stock options.
Restricted Stock and Stock Units
The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units and performance stock units, as of and for the six months ended June 30, 2024:
Restricted Stock AwardsStock Units
Number of
Shares		Weighted-Average
Grant-Date
Fair Value		Number of
Units		Weighted-Average
Grant-Date
Fair Value
Outstanding — December 31, 20231,568 $187.93 776,604 $205.73 
  Granted7,803 $268.64 412,487 $263.12 
  Vested(3,080)$227.55 (367,447)$190.50 
  Forfeited— $— (38,068)$249.08 
Outstanding — June 30, 20246,291 $268.64 783,576 (1)$240.97 
Expected to vest — June 30, 20246,291 $268.64 617,178 $261.39 
_______________________________
(1)    Includes 95,990 vested and undistributed deferred stock units.
The Company grants restricted stock awards and deferred stock units to its directors and restricted stock units and performance stock units to its employees and officers. Restricted stock awards and stock units must vest or are subject to forfeiture; however, restricted stock awards are included in shares outstanding upon grant and have the same dividend and voting rights as the Company’s common stock. The Company recognized $17.3 million and $14.6 million of share-based compensation expense related to the vesting of these restricted stock awards and stock units during the three months ended June 30, 2024 and 2023, respectively and $37.6 million and $30.8 million during the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, total unrecognized compensation cost for restricted stock awards and stock units was $119.2 million, which is expected to be recognized over a weighted-average remaining period of 2.08 years.
The Company also grants restricted stock units to its advisors and to institutions. The Company recognized share-based compensation expense of $0.7 million and $0.6 million related to the vesting of these awards during the three months ended June 30, 2024 and 2023, and $1.4 million and $1.3 million during the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, total unrecognized compensation cost for restricted stock units granted to advisors and institutions was $3.8 million, which is expected to be recognized over a weighted-average remaining period of 1.82 years.
v3.24.2
Earnings per Share
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Earnings per Share EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. The calculation of basic and diluted earnings per share for the periods noted was as follows (in thousands, except per share data):
Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Net income$243,800 $285,520 $532,564 $624,404 
Basic weighted-average number of shares outstanding74,725 77,234 74,644 77,988 
Dilutive common share equivalents823 960 885 1,095 
Diluted weighted-average number of shares outstanding75,548 78,194 75,529 79,083 
Basic earnings per share$3.26 $3.70 $7.13 $8.01 
Diluted earnings per share$3.23 $3.65 $7.05 $7.90 
The computation of diluted earnings per share excludes stock options, warrants and stock units that are anti-dilutive. For the three months ended June 30, 2024 and 2023, stock options, warrants and stock units representing common share equivalents of 5,174 shares and 208,654 shares, respectively, were anti-dilutive. For the six months ended June 30, 2024 and 2023, stock options, warrants and stock units representing common share equivalents of 3,568 shares and 107,544 shares, respectively, were anti-dilutive.
v3.24.2
Net Capital and Regulatory Requirements
 6 Months Ended
Jun. 30, 2024
Broker-Dealer [Abstract]  
Net Capital and Regulatory Requirements NET CAPITAL AND REGULATORY REQUIREMENTS
The Company’s broker-dealer subsidiaries are subject to the SEC’s Uniform Net Capital Rule (Rule 15c3-1 under the Exchange Act of 1934, as amended), which requires the maintenance of minimum net capital. The net capital rules also provide that a broker-dealer’s capital may not be withdrawn if the resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and the Financial Industry Regulatory Authority (“FINRA”) to the extent they exceed defined levels, even though such withdrawals would not cause net capital to be less than minimum requirements. Net capital and the related net capital requirement may fluctuate on a daily basis.
The following table presents the net capital position of the Company’s primary broker-dealer subsidiary (in thousands):
June 30, 2024
LPL Financial LLC
Net capital$271,649 
Less: required net capital17,550 
Excess net capital$254,099 
The Company’s subsidiary, PTC, also operates in a highly regulated industry and is subject to various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have substantial monetary and non-monetary impacts on PTC’s operations.
As of June 30, 2024, LPL Financial and PTC met all capital adequacy requirements to which they were subject.
v3.24.2
Financial Instruments with Off-Balance-Sheet Credit Risk and Concentrations of Credit Risk
 6 Months Ended
Jun. 30, 2024
Concentration Risk Credit Risk Financial Instruments Off Balance Sheet Risk [Abstract]  
Financial Instruments with Off-Balance-Sheet Credit Risk and Concentrations of Credit Risk FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET CREDIT RISK
AND CONCENTRATIONS OF CREDIT RISK
LPL Financial may offer loans to new and existing advisors and institutions to facilitate their relationship with LPL Financial, transition to LPL Financial’s platform or fund business development activities. LPL Financial may incur losses if advisors or institutions do not fulfill their obligations with respect to these loans. To mitigate this risk, LPL Financial evaluates the performance and creditworthiness of the advisor or institution prior to offering repayable loans.
LPL Financial’s client securities activities are transacted on either a cash or margin basis. In margin transactions, LPL Financial extends credit to the advisor’s client, subject to various regulatory and internal margin requirements, which is collateralized by cash and securities in the client’s account. As clients write options contracts or sell securities short, LPL Financial may incur losses if the clients do not fulfill their obligations and the collateral in the clients’ accounts is not sufficient to fully cover losses that clients may incur from these strategies. To control this risk, LPL Financial monitors margin levels daily and clients are required to deposit additional collateral, or reduce positions, when necessary.
LPL Financial is obligated to settle transactions with brokers and other financial institutions even if its advisors’ clients fail to meet their obligation to LPL Financial. Clients are required to complete their transactions on the settlement date, generally two business days after the trade date. If clients do not fulfill their contractual obligations, LPL Financial may incur losses. In addition, the Company occasionally enters into certain types of contracts to fulfill its sale of when-issued securities. When-issued securities have been authorized but are contingent upon the actual issuance of the security. LPL Financial has established procedures to reduce this risk by generally requiring that clients deposit cash or securities into their account prior to placing an order.
LPL Financial may at times hold equity securities on both a long and short basis that are recorded on the condensed consolidated statements of financial condition at market value. While long inventory positions represent LPL Financial’s ownership of securities, short inventory positions represent obligations of LPL Financial to deliver specified securities at a contracted price, which may differ from market prices prevailing at the time of completion of the transaction. Accordingly, both long and short inventory positions may result in losses or gains to LPL Financial as market values of securities fluctuate. To mitigate the risk of losses, long and short positions are marked-to-market daily and are continuously monitored by LPL Financial.
v3.24.2
Subsequent Events
 6 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events SUBSEQUENT EVENTSThe Board declared a cash dividend of $0.30 per share on LPLFH’s outstanding common stock to be paid on August 23, 2024 to all stockholders of record on August 9, 2024.
v3.24.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Pay vs Performance Disclosure        
Net income $ 243,800 $ 285,520 $ 532,564 $ 624,404
v3.24.2
Insider Trading Arrangements
 3 Months Ended 6 Months Ended
Jun. 30, 2024
shares
Jun. 30, 2024
shares
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   The table below sets forth certain information regarding such Rule 10b5-1 trading arrangements:
OfficerDate of Plan AdoptionCommencement of Trading Period
Termination of Trading Period(1)
Maximum Number of Securities to be Purchased or Sold Pursuant to the Rule 10b5-1 Trading ArrangementsPurchase or Sale
Dan Arnold, President and Chief Executive OfficerJune 12, 2024September 16, 2024December 12, 202420,000Sale
(1) Represents the outside termination date pursuant to terms of each applicable plan. The agreement governing the applicable plan may terminate earlier pursuant to its terms in certain circumstances outside of the control of the applicable officer, including if all trades under the plan are completed prior to the termination of the trading period.
Rule 10b5-1 Arrangement Adopted false  
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Dan Arnold [Member]    
Trading Arrangements, by Individual    
Arrangement Duration   90 days
Officer Trading Arrangement [Member]    
Trading Arrangements, by Individual    
Title Dan Arnold, President and Chief Executive Officer  
Officer Trading Arrangement [Member] | Dan Arnold [Member]    
Trading Arrangements, by Individual    
Name Dan Arnold, President and Chief Executive Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date June 12, 2024  
Aggregate Available 20,000 20,000
v3.24.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
These unaudited condensed consolidated financial statements (“condensed consolidated financial statements”) are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), which require the Company to make estimates and assumptions regarding the valuation of certain financial instruments, acquisitions, goodwill and other intangibles, allowance for credit losses on receivables, share-based compensation, accruals for liabilities, income taxes, revenue and expense accruals and other matters that affect the condensed consolidated financial statements and related disclosures. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the results of operations for the interim periods presented. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the condensed consolidated financial statements.
The condensed consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the related notes for the year
ended December 31, 2023, contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”).
Recently Issued & Adopted Accounting Pronouncements
Recently Issued or Adopted Accounting Pronouncements
There are no relevant recently issued accounting pronouncements that would materially impact the Company’s condensed consolidated financial statements and related disclosures. There were no new accounting pronouncements adopted during the six months ended June 30, 2024 that materially impacted the Company’s condensed consolidated financial statements and related disclosures.
v3.24.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2024
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue - Reporting Category [Table Text Block]
The following table presents total commission revenue disaggregated by product category (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Commission revenue
Annuities$469,100 $358,845 $905,573 $702,906 
Mutual funds187,432 165,194 373,972 330,232 
Fixed income53,192 36,183 101,833 71,450 
Equities34,434 27,474 69,885 53,364 
Other42,888 35,190 82,229 68,659 
Total commission revenue
$787,046 $622,886 $1,533,492 $1,226,611 
Disaggregation of Revenue - Reporting Category & Timing of Transfer of Good or Service [Table Text Block]
The following table presents sales-based and trailing commission revenue disaggregated by product category (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Commission revenue
Sales-based
Annuities
$260,188 $172,540 $489,265 $334,716 
Fixed income
53,192 36,183 101,833 71,450 
Mutual funds
42,981 36,431 86,477 73,908 
Equities
34,434 27,474 69,885 53,364 
Other
32,275 26,333 60,845 51,595 
Total sales-based revenue
$423,070 $298,961 $808,305 $585,033 
Trailing
Annuities$208,912 $186,305 $416,308 $368,190 
Mutual funds144,451 128,763 287,495 256,324 
Other10,613 8,857 21,384 17,064 
Total trailing revenue$363,976 $323,925 $725,187 $641,578 
Total commission revenue
$787,046 $622,886 $1,533,492 $1,226,611 
Disaggregation of Revenue - Product and Service [Table Text Block]
The following table sets forth asset-based revenue disaggregated by product category (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Asset-based revenue
Client cash
$341,475 $378,415 $693,857 $796,690 
Sponsorship programs
141,687 109,256 275,788 211,726 
Recordkeeping
117,846 102,044 232,084 203,047 
Total asset-based revenue$601,008 $589,715 $1,201,729 $1,211,463 
Disaggregation of Revenue - Timing of Transfer of Good or Service [Table Text Block]
The following table sets forth service and fee revenue disaggregated by recognition pattern (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Service and fee revenue
Over time(1)
$105,543 $94,587 $208,079 $187,616 
Point-in-time(2)
29,457 28,535 59,093 54,493 
Total service and fee revenue$135,000 $123,122 $267,172 $242,109 
_______________________________
(1)Service and fee revenue recognized over time includes revenue such as error and omission insurance fees, IRA custodian fees, and technology fees.
(2)Service and fee revenue recognized at a point-in-time includes revenue such as IRA termination fees, account fees, and confirmation fees.
v3.24.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Disclosure, Measurement of Contingent Consideration Using Monte-Carlo Simulation Model
The following table summarizes inputs used in the measurement of contingent consideration (dollars in thousands):
Quantitative Information About Level 3 Fair Value Measurements
June 30, 2024TypeValuation TechniquesUnobservable InputsRange
$129,848 Contingent Consideration
Monte-Carlo Simulation Model
Forecasted Growth Rates
12.0% -29.5%
Discount Rate
13.3%- 15.3%
Equivalency Rate(1)
5.3% - 6.3%
— 
Contingent Consideration
Discounted Cash Flow Model
Discount Rate
9.3%
$129,848 
____________________
(1)Equivalency rate is defined as the prevailing market interest rate used to discount future payments.
Quantitative Information About Level 3 Fair Value Measurements
December 31, 2023TypeValuation TechniquesUnobservable InputsRange
$114,844 Contingent Consideration
Monte-Carlo Simulation Model
Forecasted Growth Rates
12.0% - 29.5%
Discount Rate
13.6%- 15.7%
4,000 
Contingent Consideration
Discounted Cash Flow Model
Discount Rate
9.3%
$118,844 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table summarizes the changes in fair value for the Company’s Level 3 liabilities during the periods presented (in thousands):

Three Months Ended June 30,
Six Months Ended June 30,
2024202320242023
Balance - Beginning of period
$87,262 $45,280 $118,844 $3,860 
Additions
20,462 4,053 40,380 45,387 
Payments
(2,500)— (54,000)— 
Fair value adjustments
24,624 54 24,624 140 
Balance - End of period
$129,848 $49,387 $129,848 $49,387 
Financial assets and financial liabilities measured at fair value on a recurring basis
The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
June 30, 2024Level 1Level 2Level 3Total
Assets    
Cash equivalents$398,185 $— $— $398,185 
Cash equivalents segregated under federal or other regulations645,568 — — 645,568 
Restricted cash
103,038 — — 103,038 
Investment securities — trading:    
Mutual funds44,651 — — 44,651 
U.S. treasury obligations28,401 — — 28,401 
Equity securities137 — — 137 
Money market funds119 — — 119 
Debt securities— 155 — 155 
Total investment securities — trading73,308 155 — 73,463 
Other assets:
Deferred compensation plan768,321 — — 768,321 
Fractional shares — investment(1)
210,930 — — 210,930 
Other investments— 4,201 — 4,201 
Total other assets:979,251 4,201 — 983,452 
Total assets at fair value$2,199,350 $4,356 $— $2,203,706 
Liabilities    
Other liabilities:
Securities sold, but not yet purchased:    
Equity securities$160 $— $— $160 
Mutual funds
2 — — 2 
Total securities sold, but not yet purchased162 — — 162 
Fractional shares — repurchase obligation(1)
210,930 — — 210,930 
Contingent consideration
— — 129,848 129,848 
Total other liabilities211,092 — 129,848 340,940 
Total liabilities at fair value$211,092 $— $129,848 $340,940 
____________________
(1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s dividend reinvestment program (“DRIP”).
The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
December 31, 2023Level 1Level 2Level 3Total
Assets
Cash equivalents$166 $— $— $166 
Cash equivalents segregated under federal or other regulations720,077 — — 720,077 
Restricted cash
103,226 — — 103,226 
Investment securities — trading:
Mutual funds50,518 — — 50,518 
U.S. treasury obligations25,388 — — 25,388 
Money market funds107 — — 107 
Equity securities43 — — 43 
Debt securities— 32 — 32 
Total investment securities — trading76,056 32 — 76,088 
Other assets:
Deferred compensation plan677,548 — — 677,548 
Fractional shares — investment(1)
177,131 — — 177,131 
Other investments— 3,960 — 3,960 
Total other assets854,679 3,960 — 858,639 
Total assets at fair value$1,754,204 $3,992 $— $1,758,196 
Liabilities
Other liabilities:
Securities sold, but not yet purchased:
Equity securities$487 $— $— $487 
Mutual funds55 — — 55 
Total securities sold, but not yet purchased542 — — 542 
Fractional shares — repurchase obligation(1)
177,131 — — 177,131 
    Contingent consideration
— — 118,844 118,844 
Total other liabilities177,673 — 118,844 296,517 
Total liabilities at fair value$177,673 $— $118,844 $296,517 
____________________
(1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP.
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value
The following tables summarize the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not measured at fair value (in thousands):
June 30, 2024Carrying ValueLevel 1Level 2Level 3Total Fair Value
Assets    
Cash$920,709 $920,709 $— $— $920,709 
Cash segregated under federal or other regulations884,582 884,582 — — 884,582 
Restricted cash6,580 6,580 — — 6,580 
Receivables from clients, net563,923 — 563,923 — 563,923 
Receivables from brokers, dealers and clearing organizations74,432 — 74,432 — 74,432 
Advisor repayable loans, net(1)
356,851 — — 271,546 271,546 
Other receivables, net763,632 — 763,632 — 763,632 
Investment securities — held-to-maturity securities16,390 — 16,240 — 16,240 
Other assets:
Securities borrowed3,726 — 3,726 — 3,726 
Deferred compensation plan(2)
9,503 9,503 — — 9,503 
Other investments(3)
5,298 — 5,298 — 5,298 
Total other assets18,527 9,503 9,024 — 18,527 
Liabilities
Client payables$1,963,988 $— $1,963,988 $— $1,963,988 
Payables to brokers, dealers and clearing organizations212,394 — 212,394 — 212,394 
Corporate debt and other borrowings, net4,442,840 — 4,396,340 — 4,396,340 
December 31, 2023Carrying ValueLevel 1Level 2Level 3Total Fair Value
Assets
Cash$465,505 $465,505 $— $— $465,505 
Cash segregated under federal or other regulations1,287,235 1,287,235 — — 1,287,235 
Restricted cash4,954 4,954 — — 4,954 
Receivables from clients, net588,585 — 588,585 — 588,585 
Receivables from brokers, dealers and clearing organizations50,069 — 50,069 — 50,069 
Advisor repayable loans, net(1)
340,985 — — 236,888 236,888 
Other receivables, net743,317 — 743,317 — 743,317 
Investment securities - held-to-maturity securities15,223 — 15,079 — 15,079 
Other assets:
Securities borrowed4,334 — 4,334 — 4,334 
Deferred compensation plan(2)
6,217 6,217 — — 6,217 
Other investments(3)
4,695 — 4,695 — 4,695 
Total other assets15,246 6,217 9,029 — 15,246 
Liabilities
Client payables$2,266,176 $— $2,266,176 $— $2,266,176 
Payables to brokers, dealers and clearing organizations163,337 — 163,337 — 163,337 
Corporate debt and other borrowings, net3,734,111 — 3,680,199 — 3,680,199 
__________________
(1)Includes repayable loans and forgivable loans which have converted to repayable upon advisor termination or change in agreed upon terms.
(2)Includes cash balances awaiting investment or distribution to plan participants.
(3)Other investments include Depository Trust Company common shares and Federal Reserve stock.
v3.24.2
Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Debt Securities, Trading, and Equity Securities, FV-NI
The following table summarizes investment securities (in thousands):
 June 30, 2024December 31, 2023
Trading securities — at fair value:  
Mutual funds$44,651 $50,518 
U.S. treasury obligations28,401 25,388 
Equity securities137 43 
Money market funds119 107 
Debt securities155 32 
Total trading securities$73,463 $76,088 
Held-to-maturity securities — at amortized cost:
U.S. government notes$16,390 $15,223 
Total held-to-maturity securities$16,390 $15,223 
Total investment securities$89,853 $91,311 
Maturities of securities held-to-maturity
At June 30, 2024, the held-to-maturity securities were scheduled to mature as follows (in thousands):
Within one yearAfter one but within five yearsAfter five but within ten yearsAfter ten yearsTotal
U.S. government notes — at amortized cost$2,494 $13,896 $— $— $16,390 
U.S. government notes — at fair value$2,471 $13,769 $— $— $16,240 
v3.24.2
Goodwill and Other Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of activity in goodwill
A summary of the activity impacting goodwill is presented below (in thousands):
Balance at December 31, 2022
$1,642,468 
Goodwill acquired214,180 
Balance at December 31, 2023
1,856,648 
Purchase accounting adjustments
(17,120)
Goodwill acquired20,534 
Balance at June 30, 2024
$1,860,062 
The Company completed various acquisitions, which were accounted for under the acquisition method of accounting for business combinations and as asset acquisitions, and recorded purchase accounting adjustments during the periods presented. See Note 4 - Acquisitions, for additional information.
Components of intangible assets
The components of other intangibles, net were as follows at June 30, 2024 (in thousands):
Weighted-Average Life 
Remaining
(in years)		Gross
 Carrying 
Value		 Accumulated AmortizationNet
 Carrying 
Value
Definite-lived intangibles, net(1):
    
Advisor and institution relationships
8.2$984,677 $(651,312)$333,365 
Product sponsor relationships1.7234,086 (215,031)19,055 
Client relationships12.8448,521 (66,338)382,183 
Technology8.420,930 (12,321)8,609 
Total definite-lived intangible assets, net $1,688,214 $(945,002)$743,212 
Other indefinite-lived intangibles:    
Trademark and trade name   39,819 
Total other intangibles, net   $783,031 
_______________________________
(1)During the six months ended June 30, 2024, the Company completed various acquisitions. See Note 4 - Acquisitions, for additional information.
The components of other intangibles, net were as follows at December 31, 2023 (in thousands):
Weighted-Average Life 
Remaining
(in years)		Gross
 Carrying 
Value		 Accumulated AmortizationNet
 Carrying 
Value
Definite-lived intangibles, net(1):
    
Advisor and institution relationships
7.3$935,478 $(614,277)$321,201 
Product sponsor relationships2.2234,086 (209,076)25,010 
Client relationships
12.6313,585 (51,328)262,257 
Technology8.733,460 (10,162)23,298 
Total definite-lived intangibles, net$1,516,609 $(884,843)$631,766 
Other indefinite-lived intangibles:
Trademark and trade name39,819 
Total other intangibles, net$671,585 
_______________________________
(1)    During the year ended December 31, 2023, the Company completed various acquisitions. See Note 4 - Acquisitions, for additional information.
Amortization expense Future amortization is estimated as follows (in thousands):
2024 - remainder$61,211 
2025113,428 
202675,172 
202770,023 
202864,231 
Thereafter359,147 
Total
$743,212 
v3.24.2
Other Assert and Other Liabilities (Tables)
 6 Months Ended
Jun. 30, 2024
Other Assets And Other Liabilities [Abstract]  
Schedule of other assets and other liabilities
The components of other assets and other liabilities were as follows (dollars in thousands):
 June 30, 2024December 31, 2023
Other assets:
Deferred compensation$777,824 $683,765 
Prepaid assets151,447 173,039 
Fractional shares — investment(1)
210,930 177,131 
Deferred tax assets, net167,515 167,450 
Operating lease assets93,912 93,797 
Debt issuance costs, net16,665 9,065 
Other167,717 85,774 
Total other assets$1,586,010 $1,390,021 
Other liabilities:
Deferred compensation$775,690 $684,178 
Unearned revenue(2)
208,257 156,214 
Fractional shares — repurchase obligation(1)
210,930 177,131 
Operating lease liabilities122,008 123,477 
Finance lease liabilities105,287 105,465 
Taxes payable
65,330 24,522 
Contingent consideration
129,848 118,844 
Other50,161 50,542 
Total other liabilities$1,667,511 $1,440,373 
_______________________________
(1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP program.
(2)See Note 3 - Revenue for further information.
v3.24.2
Corporate Debt and Other Borrowings, Net (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Long-term and Other Borrowings
The Company’s outstanding corporate debt and other borrowings, net were as follows (in thousands):
June 30, 2024December 31, 2023
Corporate Debt
 
Balance
Applicable
Margin
Interest Rate
 
Balance
Applicable
Margin
Interest rateMaturity
Term Loan B(1)
$1,021,850 
SOFR+185 bps
7.179 %$1,027,200 
SOFR+185 bps
7.206 %11/12/2026
2027 Senior Notes(1)
500,000 Fixed Rate5.700 %— — — %5/20/2027
2027 Senior Notes(1)
400,000 Fixed Rate4.625 %400,000 Fixed Rate4.625 %11/15/2027
2028 Senior Notes(1)
750,000 Fixed Rate6.750 %750,000 
Fixed Rate
6.750 %11/17/2028
2029 Senior Notes(1)
900,000 Fixed Rate4.000 %900,000 Fixed Rate4.000 %3/15/2029
2031 Senior Notes(1)
400,000 Fixed Rate4.375 %400,000 Fixed Rate4.375 %5/15/2031
2034 Senior Notes(1)
500,000 Fixed Rate6.000 %— — — %5/20/2034
Total Corporate Debt4,471,850 3,477,200 
Less: Unamortized Debt Issuance Cost(29,010)(23,089)
Corporate debt, net$4,442,840 $3,454,111 
Other Borrowings
Revolving Credit Facility
— 
ABR+37.5 bps / SOFR+147.5 bps
8.875 %280,000 
ABR+37.5 bps / SOFR+147.5 bps
6.966 %5/20/2029
Total other borrowings$— $280,000 
Corporate Debt and Other Borrowings, Net$4,442,840 $3,734,111 
_______________________________
(1)No leverage or interest coverage maintenance covenants.

The following table presents amounts outstanding and available under the Company’s external lines of credit at June 30, 2024 (in millions):
DescriptionBorrowerMaturity DateOutstandingAvailable
Senior secured, revolving credit facilityLPL Holdings, Inc.May 2029$— $2,250 
Broker-dealer revolving credit facilityLPL Financial LLCMay 2025$— $1,000 
Unsecured, uncommitted lines of creditLPL Financial LLC
None
$— $75 
Unsecured, uncommitted lines of creditLPL Financial LLC
September 2024
$— $50 
Secured, uncommitted lines of creditLPL Financial LLCMarch 2025$— $75 
Secured, uncommitted lines of creditLPL Financial LLCNone$— unspecified
Secured, uncommitted lines of creditLPL Financial LLCNone$— unspecified
v3.24.2
Commitment and Contingencies (Tables)
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Financial Guarantee Insurance Contracts, Claim Liability
The following table provides a reconciliation of the beginning and ending balances of self-insurance liabilities for the periods presented (in thousands):
Six Months Ended June 30,
20242023
Beginning balance — January 1$82,883 $74,071 
Losses incurred18,611 18,093 
Losses paid(20,339)(10,424)
Ending balance — June 30
$81,155 $81,740 
v3.24.2
Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2024
Stockholders' Equity Note [Abstract]  
Dividends Declared [Table Text Block] Cash dividends per share of common stock and total cash dividends paid on a quarterly basis were as follows (in millions, except per share data):
20242023
Dividend per ShareTotal Cash DividendDividend per ShareTotal Cash Dividend
First quarter$0.30 $22.4 $0.30 $23.6 
Second quarter$0.30 $22.4 $0.30 $23.1 
v3.24.2
Share-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of stock option and warrant activity The following table summarizes the Company’s stock option and warrant activity as of and for the six months ended June 30, 2024:
Number of
Shares		Weighted-
Average
Exercise Price		Weighted-Average
Remaining
Contractual Term
(Years)		Aggregate
Intrinsic
Value
(In thousands)
Outstanding — December 31, 2023
546,820 $54.81 
Granted— $— 
Exercised(138,012)$47.17 
Forfeited and Expired— $— 
Outstanding — June 30, 2024408,808 $57.39 3.34$90,718 
Exercisable — June 30, 2024408,808 $57.39 3.34$90,718 
Exercisable and expected to vest — June 30, 2024408,808 $57.39 3.34$90,718 
Summary of outstanding stock options and warrant information
The following table summarizes information about outstanding stock options and warrants as of June 30, 2024:
 OutstandingExercisable
Range of Exercise PricesNumber of
Shares		Weighted-
Average
Exercise
Price		Weighted-Average
Remaining Life
(Years)		Number of
Shares		Weighted-
Average
Exercise
Price
$19.85 - $25.0058,581 $19.85 1.6558,581 $19.85 
$25.01 - $35.00— $— 0.00— $— 
$35.01 - $45.0081,863 $39.48 2.5981,863 $39.48 
$45.01 - $65.006,332 $45.55 0.686,332 $45.55 
$65.01 - $75.00127,691 $65.50 3.52127,691 $65.50 
$75.01 - $80.00134,341 $77.53 4.50134,341 $77.53 
 408,808 $57.39 3.34408,808 $57.39 
Summary of restricted stock awards and restricted stock units activity
The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units and performance stock units, as of and for the six months ended June 30, 2024:
Restricted Stock AwardsStock Units
Number of
Shares		Weighted-Average
Grant-Date
Fair Value		Number of
Units		Weighted-Average
Grant-Date
Fair Value
Outstanding — December 31, 20231,568 $187.93 776,604 $205.73 
  Granted7,803 $268.64 412,487 $263.12 
  Vested(3,080)$227.55 (367,447)$190.50 
  Forfeited— $— (38,068)$249.08 
Outstanding — June 30, 20246,291 $268.64 783,576 (1)$240.97 
Expected to vest — June 30, 20246,291 $268.64 617,178 $261.39 
_______________________________
(1)    Includes 95,990 vested and undistributed deferred stock units.
v3.24.2
Earnings per Share (Tables)
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Basic and diluted earnings per share computations The calculation of basic and diluted earnings per share for the periods noted was as follows (in thousands, except per share data):
Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Net income$243,800 $285,520 $532,564 $624,404 
Basic weighted-average number of shares outstanding74,725 77,234 74,644 77,988 
Dilutive common share equivalents823 960 885 1,095 
Diluted weighted-average number of shares outstanding75,548 78,194 75,529 79,083 
Basic earnings per share$3.26 $3.70 $7.13 $8.01 
Diluted earnings per share$3.23 $3.65 $7.05 $7.90 
v3.24.2
Net Capital and Regulatory Requirements (Tables)
 6 Months Ended
Jun. 30, 2024
Broker-Dealer [Abstract]  
Broker-Dealer, Net Capital Requirement, SEC Regulation
The following table presents the net capital position of the Company’s primary broker-dealer subsidiary (in thousands):
June 30, 2024
LPL Financial LLC
Net capital$271,649 
Less: required net capital17,550 
Excess net capital$254,099 
v3.24.2
Organization and Description of the Company Consolidation, Parent Ownership Interest (Details) - LPL Financial LLC
 6 Months Ended
Jun. 30, 2024
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]  
Ownership Interest Percentage In Subsidiary 100.00%
Number of States in which Entity Operates 50
v3.24.2
Revenue - Asset-based Revenue disaggregated by Product and Service (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Asset Based Fees $ 601,008 $ 589,715 $ 1,201,729 $ 1,211,463
Client cash        
Disaggregation of Revenue [Line Items]        
Asset Based Fees 341,475 378,415 693,857 796,690
Sponsorship Programs [Member]        
Disaggregation of Revenue [Line Items]        
Asset Based Fees 141,687 109,256 275,788 211,726
Recordkeeping Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Asset Based Fees $ 117,846 $ 102,044 $ 232,084 $ 203,047
v3.24.2
Revenue - Commission Revenue Disaggregated by Product Category (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Commission $ 787,046 $ 622,886 $ 1,533,492 $ 1,226,611
Annuities [Member]        
Disaggregation of Revenue [Line Items]        
Commission 469,100 358,845 905,573 702,906
Mutual Funds [Member]        
Disaggregation of Revenue [Line Items]        
Commission 187,432 165,194 373,972 330,232
Fixed Income [Member]        
Disaggregation of Revenue [Line Items]        
Commission 53,192 36,183 101,833 71,450
Equities [Member]        
Disaggregation of Revenue [Line Items]        
Commission 34,434 27,474 69,885 53,364
Other [Member]        
Disaggregation of Revenue [Line Items]        
Commission $ 42,888 $ 35,190 $ 82,229 $ 68,659
v3.24.2
Revenue - Commission Revenue Disaggregated by Product Category and Timing of Transfer of Good or Service (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Commission $ 787,046 $ 622,886 $ 1,533,492 $ 1,226,611
Point-in-time [Member]        
Disaggregation of Revenue [Line Items]        
Commission 423,070 298,961 808,305 585,033
Over time [Member]        
Disaggregation of Revenue [Line Items]        
Commission 363,976 323,925 725,187 641,578
Annuities [Member]        
Disaggregation of Revenue [Line Items]        
Commission 469,100 358,845 905,573 702,906
Annuities [Member] | Point-in-time [Member]        
Disaggregation of Revenue [Line Items]        
Commission 260,188 172,540 489,265 334,716
Annuities [Member] | Over time [Member]        
Disaggregation of Revenue [Line Items]        
Commission 208,912 186,305 416,308 368,190
Mutual Funds [Member]        
Disaggregation of Revenue [Line Items]        
Commission 187,432 165,194 373,972 330,232
Mutual Funds [Member] | Point-in-time [Member]        
Disaggregation of Revenue [Line Items]        
Commission 42,981 36,431 86,477 73,908
Mutual Funds [Member] | Over time [Member]        
Disaggregation of Revenue [Line Items]        
Commission 144,451 128,763 287,495 256,324
Fixed Income [Member]        
Disaggregation of Revenue [Line Items]        
Commission 53,192 36,183 101,833 71,450
Fixed Income [Member] | Point-in-time [Member]        
Disaggregation of Revenue [Line Items]        
Commission 53,192 36,183 101,833 71,450
Equities [Member]        
Disaggregation of Revenue [Line Items]        
Commission 34,434 27,474 69,885 53,364
Equities [Member] | Point-in-time [Member]        
Disaggregation of Revenue [Line Items]        
Commission 34,434 27,474 69,885 53,364
Other [Member]        
Disaggregation of Revenue [Line Items]        
Commission 42,888 35,190 82,229 68,659
Other [Member] | Point-in-time [Member]        
Disaggregation of Revenue [Line Items]        
Commission 32,275 26,333 60,845 51,595
Other [Member] | Over time [Member]        
Disaggregation of Revenue [Line Items]        
Commission $ 10,613 $ 8,857 $ 21,384 $ 17,064
v3.24.2
Revenue - Transaction and Fee Revenue Disaggregated by Timing of Transfer of Good or Service (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Service and fee $ 135,000 $ 123,122 $ 267,172 $ 242,109
Point-in-time [Member]        
Disaggregation of Revenue [Line Items]        
Service and fee 29,457 28,535 59,093 54,493
Over time [Member]        
Disaggregation of Revenue [Line Items]        
Service and fee $ 105,543 $ 94,587 $ 208,079 $ 187,616
v3.24.2
Revenue - Unearned Revenue Recognized (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Unearned Revenue [Abstract]    
Contract with Customer, Liability $ 208.3 $ 156.2
Deferred Revenue, Revenue Recognized $ 154.6  
v3.24.2
Acquisitions (Details)
$ in Thousands
 1 Months Ended 6 Months Ended 12 Months Ended
Feb. 13, 2024
USD ($)
Jan. 31, 2023
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2024
USD ($)
acquistion
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
acquistion
Dec. 31, 2022
USD ($)
Business Acquisition [Line Items]              
Contingent consideration     $ 129,848 $ 129,848   $ 118,844  
Goodwill     1,860,062 1,860,062   $ 1,856,648 $ 1,642,468
Acquisitions, net of cash acquired       125,244 $ 300,320    
Decrease to provisional goodwill       $ (17,120)      
Number of Business Combinations | acquistion       3      
Asset Acquisitions              
Business Acquisition [Line Items]              
Number of asset acquisitions | acquistion       6   15  
Asset acquisition, consideration transferred       $ 77,400   $ 180,400  
Asset acquisition, consideration transferred, contingent consideration       $ 36,900   $ 73,100  
Asset acquisition, asset growth achieved duration           3 years  
Customer Relationships              
Business Acquisition [Line Items]              
Weighted-average life remaining (in years)       12 years 9 months 18 days   12 years 7 months 6 days  
Customer Relationships | Asset Acquisitions              
Business Acquisition [Line Items]              
Weighted-average life remaining (in years)       14 years      
Asset acquisition, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles     28,900 $ 28,900   $ 142,300  
Technology              
Business Acquisition [Line Items]              
Weighted-average life remaining (in years)       8 years 4 months 24 days   8 years 8 months 12 days  
Advisor Relationships | Asset Acquisitions              
Business Acquisition [Line Items]              
Asset acquisition, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles     48,500 $ 48,500   $ 38,100  
Atria Wealth Solutions, Inc              
Business Acquisition [Line Items]              
Business combination, consideration transferred $ 805,000            
Contingent consideration 230,000            
Business combination, recognized identifiable assets acquired and liabilities assumed, assets     80,600 80,600      
Business combination, recognized identifiable assets acquired and liabilities assumed, cash and equivalents     49,900 49,900      
Business combination, recognized identifiable assets acquired and liabilities assumed, liabilities     30,700 30,700      
Business combination, contingent consideration arrangements, change in range of outcomes, contingent consideration, liability, value, high       125,600      
Goodwill     20,500 $ 20,500      
Revenue, Potential Milestone Consideration $ 100,000            
Atria Wealth Solutions, Inc | Customer Relationships              
Business Acquisition [Line Items]              
Finite-lived intangible assets acquired     $ 60,100        
Weighted-average life remaining (in years)     14 years        
Atria Wealth Solutions, Inc | Minimum              
Business Acquisition [Line Items]              
Business acquisition, asset growth achieved duration       1 year      
Atria Wealth Solutions, Inc | Maximum              
Business Acquisition [Line Items]              
Business acquisition, asset growth achieved duration       7 years      
Other Acquisitions              
Business Acquisition [Line Items]              
Number of acquisitions | acquistion       9   19  
Number of Acquisitions, Liquidity And Succession Solution | acquistion       8      
FRGIS              
Business Acquisition [Line Items]              
Business combination, consideration transferred   $ 189,200          
Contingent consideration   45,400          
Business combination, recognized identifiable assets acquired and liabilities assumed, cash and equivalents   9,000          
Goodwill   129,700          
Acquisitions, net of cash acquired   143,800          
Finite-lived intangible assets acquired   $ 53,500          
Five Liquidity & Succession              
Business Acquisition [Line Items]              
Business combination, consideration transferred           $ 190,200  
Contingent consideration           $ 42,700  
Number of acquisitions | acquistion           5  
Business combination, recognized identifiable assets acquired and liabilities assumed, cash and equivalents           $ 140,300  
Payments to acquire businesses, gross           147,400  
Other 2023 Acquisitions              
Business Acquisition [Line Items]              
Goodwill           84,500  
Finite-lived intangible assets acquired           $ 105,700  
Business combination, provisional information, initial accounting incomplete, adjustment, liabilities       $ 9,700      
Decrease to provisional goodwill       17,100      
Other 2023 Acquisitions | Customer Relationships              
Business Acquisition [Line Items]              
Increase to provisional intangible assets acquired       39,400      
Other 2023 Acquisitions | Technology              
Business Acquisition [Line Items]              
Increase to provisional intangible assets acquired       $ 12,500      
Finite-lived intangible asset, useful life     15 years 15 years      
v3.24.2
Fair Value Measurements - Fair Value Disclosure, Measurement of Contingent Consideration Using Monte-Carlo Simulation Model (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
lineOfCredit
Dec. 31, 2023
USD ($)
lineOfCredit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration $ 129,848 $ 118,844
Monte-Carlo Simulation Model    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration $ 129,848 $ 114,844
Monte-Carlo Simulation Model | Minimum | Forecasted Growth Rates    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range | lineOfCredit 0.120 0.120
Monte-Carlo Simulation Model | Minimum | Discount Rate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range 0.133 0.136
Monte-Carlo Simulation Model | Minimum | Equivalency Rate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range 0.053  
Monte-Carlo Simulation Model | Maximum | Forecasted Growth Rates    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range | lineOfCredit 0.295 0.295
Monte-Carlo Simulation Model | Maximum | Discount Rate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range 0.153 0.157
Monte-Carlo Simulation Model | Maximum | Equivalency Rate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range 0.063  
Discounted Cash Flow Model    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration $ 0 $ 4,000
Discounted Cash Flow Model | Discount Rate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range 0.093 0.093
v3.24.2
Fair Value Measurements - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Balance - Beginning of period $ 87,262 $ 45,280 $ 118,844 $ 3,860
Additions 20,462 4,053 40,380 45,387
Payments (2,500) 0 (54,000) 0
Fair value adjustments 24,624 54 24,624 140
Balance - End of period $ 129,848 $ 49,387 $ 129,848 $ 49,387
v3.24.2
Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring and Nonrecurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Restricted cash $ 109,618 $ 108,180 $ 103,741
Securities owned — trading 73,463 76,088  
Investment securities 89,853 91,311  
Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents   166  
Restricted cash 103,038 103,226  
Securities owned — trading 73,463 76,088  
Other assets 983,452 858,639  
Total assets at fair value 2,203,706 1,758,196  
Securities sold, but not yet purchased   177,131  
Accounts payable and accrued liabilities   118,844  
Other Liabilities, Fair Value Disclosure 340,940 296,517  
Total liabilities at fair value 340,940 296,517  
Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents   166  
Restricted cash 103,038 103,226  
Securities owned — trading 73,308 76,056  
Other assets 979,251 854,679  
Total assets at fair value 2,199,350 1,754,204  
Accounts payable and accrued liabilities   0  
Other Liabilities, Fair Value Disclosure 211,092 177,673  
Total liabilities at fair value 211,092 177,673  
Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents   0  
Restricted cash 0 0  
Securities owned — trading 155 32  
Other assets 4,201 3,960  
Total assets at fair value 4,356 3,992  
Securities sold, but not yet purchased   0  
Accounts payable and accrued liabilities   0  
Other Liabilities, Fair Value Disclosure 0 0  
Total liabilities at fair value 0 0  
Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents   0  
Restricted cash 0 0  
Securities owned — trading 0 0  
Other assets 0 0  
Total assets at fair value 0 0  
Securities sold, but not yet purchased 0 0  
Accounts payable and accrued liabilities   118,844  
Other Liabilities, Fair Value Disclosure 129,848 118,844  
Total liabilities at fair value 129,848 118,844  
Equity Securities [Member] | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased 160 487  
Equity Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased 160 487  
Equity Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased 0 0  
Equity Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased 0 0  
Mutual Funds [Member] | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased   55  
Mutual Funds [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased   55  
Mutual Funds [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased   0  
Mutual Funds [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased   0  
Securities Sold, Not yet Purchased | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased 162 542  
Securities Sold, Not yet Purchased | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased 162 542  
Securities Sold, Not yet Purchased | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased 0 0  
Securities Sold, Not yet Purchased | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased   0  
U.S. Treasury Securities [Member] | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased 2    
U.S. Treasury Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased 2    
U.S. Treasury Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased 0    
U.S. Treasury Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities sold, but not yet purchased 0    
Cash Equivalents Segregated Under Federal Or Other Regulations | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents 645,568 720,077  
Cash Equivalents Segregated Under Federal Or Other Regulations | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents 645,568 720,077  
Cash Equivalents Segregated Under Federal Or Other Regulations | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents 0 0  
Cash Equivalents Segregated Under Federal Or Other Regulations | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents 0 0  
Cash Equivalents Not Subject To Segregation | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents 398,185    
Cash Equivalents Not Subject To Segregation | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents 398,185    
Cash Equivalents Not Subject To Segregation | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents 0    
Cash Equivalents Not Subject To Segregation | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash equivalents 0    
Money Market Funds [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 119 107  
Money Market Funds [Member] | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 119 107  
Money Market Funds [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 119 107  
Money Market Funds [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 0 0  
Money Market Funds [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 0 0  
Other Security Investments      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 155 32  
Other Security Investments | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 155 32  
Other Security Investments | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 0 0  
Other Security Investments | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 155 32  
Other Security Investments | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 0 0  
Mutual Funds [Member] | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 44,651 50,518  
Mutual Funds [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 44,651 50,518  
Mutual Funds [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 0 0  
Mutual Funds [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 0 0  
Equity Securities [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 137 43  
Equity Securities [Member] | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 137 43  
Equity Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 137 43  
Equity Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 0 0  
Equity Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 0 0  
U.S. Treasury Securities [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 28,401 25,388  
U.S. Treasury Securities [Member] | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 28,401 25,388  
U.S. Treasury Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 28,401 25,388  
U.S. Treasury Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 0 0  
U.S. Treasury Securities [Member] | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Securities owned — trading 0 0  
Deferred Compensation Plan | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 768,321 677,548  
Deferred Compensation Plan | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 768,321 677,548  
Deferred Compensation Plan | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 0 0  
Deferred Compensation Plan | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 0 0  
Other Investments | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 4,201 3,960  
Other Investments | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 0 0  
Other Investments | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 4,201 3,960  
Other Investments | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 0 0  
Fractional Shares | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 210,930 177,131  
Other Liabilities, Fair Value Disclosure 210,930    
Fractional Shares | Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 210,930 177,131  
Securities sold, but not yet purchased   177,131  
Other Liabilities, Fair Value Disclosure 210,930    
Fractional Shares | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 0 0  
Other Liabilities, Fair Value Disclosure 0    
Fractional Shares | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other assets 0 $ 0  
Other Liabilities, Fair Value Disclosure 0    
contingent consideration [Domain] | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other Liabilities, Fair Value Disclosure 129,848    
contingent consideration [Domain] | Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other Liabilities, Fair Value Disclosure 0    
contingent consideration [Domain] | Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other Liabilities, Fair Value Disclosure $ 129,848    
v3.24.2
Fair Value Measurements - Not Measured at Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Assets, not measured at fair value      
Cash and cash equivalents $ 1,318,894 $ 465,671 $ 761,187
Cash segregated under federal and other regulations 1,530,150 2,007,312 1,548,065
Restricted cash 109,618 108,180 $ 103,741
Receivables from clients, net 563,923 588,585  
Receivables from brokers, dealers and clearing organizations 74,432 50,069  
Advisor loans, net 1,757,727 1,479,690  
Other receivables, net 763,632 743,317  
Investment securities - held-to-maturity securities 16,390 15,223  
Other assets 1,586,010 1,390,021  
Liabilities, not measured at fair value      
Payables to clients 1,963,988 2,266,176  
Payables to broker-dealers and clearing organizations 212,394 163,337  
Corporate long-term debt 4,442,840 3,734,111  
Financial instruments not measured at fair value      
Assets, not measured at fair value      
Cash and cash equivalents 920,709 465,505  
Cash segregated under federal and other regulations 884,582 1,287,235  
Restricted cash 6,580 4,954  
Receivables from clients, net 563,923 588,585  
Receivables from brokers, dealers and clearing organizations 74,432 50,069  
Advisor loans, net 356,851 340,985  
Other receivables, net 763,632 743,317  
Investment securities - held-to-maturity securities 16,390 15,223  
Other assets 18,527 15,246  
Liabilities, not measured at fair value      
Payables to clients 1,963,988 2,266,176  
Payables to broker-dealers and clearing organizations 212,394 163,337  
Corporate long-term debt 4,442,840 3,734,111  
Financial instruments not measured at fair value | Other Investments      
Assets, not measured at fair value      
Other assets 5,298 4,695  
Financial instruments not measured at fair value | Securities borrowed      
Assets, not measured at fair value      
Other assets 3,726 4,334  
Financial instruments not measured at fair value | Deferred Compensation Plan      
Assets, not measured at fair value      
Other assets 9,503 6,217  
Financial instruments not measured at fair value | Total Fair Value      
Assets, not measured at fair value      
Cash and cash equivalents 920,709 465,505  
Cash segregated under federal and other regulations 884,582 1,287,235  
Restricted cash 6,580 4,954  
Receivables from clients, net 563,923 588,585  
Receivables from brokers, dealers and clearing organizations 74,432 50,069  
Advisor loans, net 271,546 236,888  
Other receivables, net 763,632 743,317  
Investment securities - held-to-maturity securities 16,240 15,079  
Other assets 18,527 15,246  
Liabilities, not measured at fair value      
Payables to clients 1,963,988 2,266,176  
Payables to broker-dealers and clearing organizations 212,394 163,337  
Corporate long-term debt 4,396,340 3,680,199  
Financial instruments not measured at fair value | Total Fair Value | Other Investments      
Assets, not measured at fair value      
Other assets 5,298 4,695  
Financial instruments not measured at fair value | Total Fair Value | Securities borrowed      
Assets, not measured at fair value      
Other assets 3,726 4,334  
Financial instruments not measured at fair value | Total Fair Value | Deferred Compensation Plan      
Assets, not measured at fair value      
Other assets 9,503 6,217  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 1 [Member]      
Assets, not measured at fair value      
Cash and cash equivalents 920,709 465,505  
Cash segregated under federal and other regulations 884,582 1,287,235  
Restricted cash 6,580 4,954  
Receivables from clients, net 0 0  
Receivables from brokers, dealers and clearing organizations 0 0  
Advisor loans, net 0 0  
Other receivables, net 0 0  
Investment securities - held-to-maturity securities 0 0  
Other assets 9,503 6,217  
Liabilities, not measured at fair value      
Payables to clients 0 0  
Payables to broker-dealers and clearing organizations 0 0  
Corporate long-term debt 0 0  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 1 [Member] | Other Investments      
Assets, not measured at fair value      
Other assets 0 0  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 1 [Member] | Securities borrowed      
Assets, not measured at fair value      
Other assets 0 0  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Plan      
Assets, not measured at fair value      
Other assets 9,503 6,217  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 2 [Member]      
Assets, not measured at fair value      
Cash and cash equivalents 0 0  
Cash segregated under federal and other regulations 0 0  
Restricted cash 0 0  
Receivables from clients, net 563,923 588,585  
Receivables from brokers, dealers and clearing organizations 74,432 50,069  
Advisor loans, net 0 0  
Other receivables, net 763,632 743,317  
Investment securities - held-to-maturity securities 16,240 15,079  
Other assets 9,024 9,029  
Liabilities, not measured at fair value      
Payables to clients 1,963,988 2,266,176  
Payables to broker-dealers and clearing organizations 212,394 163,337  
Corporate long-term debt 4,396,340 3,680,199  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 2 [Member] | Other Investments      
Assets, not measured at fair value      
Other assets 5,298 4,695  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 2 [Member] | Securities borrowed      
Assets, not measured at fair value      
Other assets 3,726 4,334  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 2 [Member] | Deferred Compensation Plan      
Assets, not measured at fair value      
Other assets 0 0  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 3 [Member]      
Assets, not measured at fair value      
Cash and cash equivalents 0 0  
Cash segregated under federal and other regulations 0 0  
Restricted cash 0 0  
Receivables from clients, net 0 0  
Receivables from brokers, dealers and clearing organizations 0 0  
Advisor loans, net 271,546 236,888  
Other receivables, net 0 0  
Investment securities - held-to-maturity securities 0 0  
Other assets 0 0  
Liabilities, not measured at fair value      
Payables to clients 0 0  
Payables to broker-dealers and clearing organizations 0 0  
Corporate long-term debt 0 0  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 3 [Member] | Other Investments      
Assets, not measured at fair value      
Other assets 0 0  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 3 [Member] | Securities borrowed      
Assets, not measured at fair value      
Other assets 0 0  
Financial instruments not measured at fair value | Fair Value, Inputs, Level 3 [Member] | Deferred Compensation Plan      
Assets, not measured at fair value      
Other assets $ 0 $ 0  
v3.24.2
Investment Securities - Summary (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Trading securities - at fair value:    
Securities owned — trading $ 73,463 $ 76,088
Held-to-maturity securities - at amortized cost:    
Total held-to-maturity securities 16,390 15,223
Short-term Investments 89,853 91,311
Money Market Funds [Member]    
Trading securities - at fair value:    
Securities owned — trading 119 107
Mutual funds    
Trading securities - at fair value:    
Securities owned — trading 44,651 50,518
Equity Securities [Member]    
Trading securities - at fair value:    
Securities owned — trading 137 43
U.S. treasury obligations [Member]    
Trading securities - at fair value:    
Securities owned — trading 28,401 25,388
Held-to-maturity securities - at amortized cost:    
Total held-to-maturity securities 16,390  
US Government Agencies Debt Securities    
Held-to-maturity securities - at amortized cost:    
Total held-to-maturity securities 16,390 15,223
Other Security Investments    
Trading securities - at fair value:    
Securities owned — trading $ 155 $ 32
v3.24.2
Investment Securities (Details 1) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Maturities of securities held-to-maturity    
U.S. government notes - at amortized cost, Total $ 16,390 $ 15,223
U.S. Treasury Securities [Member]    
Maturities of securities held-to-maturity    
U.S. government notes - at amortized cost, Within one year 2,494  
U.S. government notes - at amortized cost, After one but within five years 13,896  
U.S. government notes - at amortized cost, After five but within ten years 0  
U.S. government notes - at amortized cost, Total 16,390  
U.S. government notes - at fair value, Within one year 2,471  
U.S. government notes - at fair value, After one but within five years 13,769  
U.S. government notes - at fair value, After five but within ten years 0  
U.S. government notes - at fair value, Total 16,240  
US Government Agencies Debt Securities    
Maturities of securities held-to-maturity    
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date, after Year 10 0  
U.S. government notes - at amortized cost, Total 16,390 $ 15,223
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 10 $ 0  
v3.24.2
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Goodwill [Roll Forward]    
Goodwill, beginning balance $ 1,856,648 $ 1,642,468
Goodwill acquired 20,534 214,180
Purchase accounting adjustments (17,120)  
Goodwill, ending balance $ 1,860,062 $ 1,856,648
v3.24.2
Goodwill and Other Intangible Assets - Intangible Assets (Components) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Finite-Lived Intangible Assets          
Gross Carrying Value $ 1,688,214   $ 1,688,214   $ 1,516,609
Accumulated Amortization (945,002)   (945,002)   (884,843)
Net Carrying Value 743,212   743,212   631,766
Indefinite-lived Intangible Assets          
Total intangible assets 783,031   783,031   671,585
Amortization of intangible assets 30,607 $ 26,741 60,159 $ 50,833  
Trademarks and Trade Names [Member]          
Indefinite-lived Intangible Assets          
Net Carrying Value 39,819   $ 39,819   $ 39,819
Advisor And Financial Institution Relationships [Member]          
Finite-Lived Intangible Assets          
Weighted-average life remaining (in years)     8 years 2 months 12 days   7 years 3 months 18 days
Gross Carrying Value 984,677   $ 984,677   $ 935,478
Accumulated Amortization (651,312)   (651,312)   (614,277)
Net Carrying Value 333,365   $ 333,365   $ 321,201
Product Sponsor Relationships [Member]          
Finite-Lived Intangible Assets          
Weighted-average life remaining (in years)     1 year 8 months 12 days   2 years 2 months 12 days
Gross Carrying Value 234,086   $ 234,086   $ 234,086
Accumulated Amortization (215,031)   (215,031)   (209,076)
Net Carrying Value 19,055   $ 19,055   $ 25,010
Customer Relationships          
Finite-Lived Intangible Assets          
Weighted-average life remaining (in years)     12 years 9 months 18 days   12 years 7 months 6 days
Gross Carrying Value 448,521   $ 448,521   $ 313,585
Accumulated Amortization (66,338)   (66,338)   (51,328)
Net Carrying Value 382,183   $ 382,183   $ 262,257
Technology          
Finite-Lived Intangible Assets          
Weighted-average life remaining (in years)     8 years 4 months 24 days   8 years 8 months 12 days
Gross Carrying Value 20,930   $ 20,930   $ 33,460
Accumulated Amortization (12,321)   (12,321)   (10,162)
Net Carrying Value $ 8,609   $ 8,609   $ 23,298
Trade Names [Member]          
Finite-Lived Intangible Assets          
Weighted-average life remaining (in years)        
v3.24.2
Goodwill and Other Intangible Assets (Future Amortization Expense) (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Future amortization expense    
Remainder of Fiscal Year $ 61,211  
Due Year One 113,428  
Due Year Two 75,172  
Due Year Three 70,023  
Due Year Four 64,231  
Due after Year Four 359,147  
Net Carrying Value $ 743,212 $ 631,766
v3.24.2
Other Assert and Other Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Other assets:    
Deferred compensation $ 777,824 $ 683,765
Prepaid assets 151,447 173,039
Fractional shares - investment 210,930 177,131
Deferred Income Tax Assets, Net 167,515 167,450
Operating lease assets 93,912 93,797
Debt issuance costs, net 16,665 9,065
Other 167,717 85,774
Total other assets $ 1,586,010 1,390,021
Operating lease assets [Extensible List] Total other assets  
Other liabilities:    
Deferred compensation $ 775,690 684,178
Unearned revenue 208,257 156,214
Fractional shares - repurchase obligation 210,930 177,131
Operating lease liabilities 122,008 123,477
Finance lease liabilities 105,287 105,465
Taxes payable 65,330 24,522
Contingent consideration 129,848 118,844
Other 50,161 50,542
Total other liabilities $ 1,667,511 $ 1,440,373
Operating lease liabilities [Extensible List] Total other liabilities  
Finance lease liabilities [Extensible List] Total other liabilities Total other liabilities
v3.24.2
Corporate Debt and Other Borrowings, Net (Long-Term Borrowings Outstanding) (Details) - USD ($)
 6 Months Ended 12 Months Ended
May 20, 2024
Jun. 30, 2024
Dec. 31, 2023
Borrowings [Line Items]      
Balance   $ 4,471,850,000 $ 3,477,200,000
Less: Unamortized Debt Issuance Cost   (29,010,000) (23,089,000)
Corporate debt, net   4,442,840,000 3,454,111,000
Corporate Debt and Other Borrowings, Net   4,442,840,000 3,734,111,000
Other Borrowings   0 280,000,000
Senior Notes Due 2027      
Borrowings [Line Items]      
Applicable Margin 0.20%    
Senior Notes Due 2034      
Borrowings [Line Items]      
Applicable Margin 0.25%    
Secured Debt | Fourth Amendment Agreement Term Loan B      
Borrowings [Line Items]      
Balance   $ 1,021,850,000 $ 1,027,200,000
Variable Interest Rate (as percent)   7.179% 7.206%
Secured Debt | Fourth Amendment Agreement Term Loan B | SOFR      
Borrowings [Line Items]      
Applicable Margin   1.85% 1.85%
Unsecured Debt | Senior Notes Due 2027      
Borrowings [Line Items]      
Balance   $ 500,000,000 $ 0
Fixed Interest Rate (as percent)   5.70% 0.00%
Unsecured Debt | Senior Notes Due 2027      
Borrowings [Line Items]      
Balance   $ 400,000,000 $ 400,000,000
Fixed Interest Rate (as percent)   4.625% 4.625%
Unsecured Debt | Senior Notes Due 2028      
Borrowings [Line Items]      
Balance   $ 750,000,000 $ 750,000,000
Fixed Interest Rate (as percent)   6.75% 6.75%
Unsecured Debt | Senior Notes Due 2029      
Borrowings [Line Items]      
Balance   $ 900,000,000 $ 900,000,000
Fixed Interest Rate (as percent)   4.00% 4.00%
Unsecured Debt | Senior Notes Due 2031      
Borrowings [Line Items]      
Balance   $ 400,000,000 $ 400,000,000
Fixed Interest Rate (as percent)   4.375% 4.375%
Unsecured Debt | Senior Notes Due 2034      
Borrowings [Line Items]      
Balance   $ 500,000,000  
Fixed Interest Rate (as percent)   6.00%  
Line of Credit      
Borrowings [Line Items]      
Other Borrowings     $ 280,000,000
Revolving Credit Facility | Line of Credit      
Borrowings [Line Items]      
Corporate Debt and Other Borrowings, Net   $ 0 $ 0
Variable Interest Rate (as percent)   8.875% 6.966%
Other Borrowings   $ 0  
Revolving Credit Facility | Line of Credit | SOFR      
Borrowings [Line Items]      
Applicable Margin   1.475% 1.475%
Revolving Credit Facility | Line of Credit | ABR      
Borrowings [Line Items]      
Applicable Margin   0.375% 0.375%
v3.24.2
Corporate Debt and Other Borrowings, Net (Other Borrowings Outstanding) (Details) - Line of Credit
$ in Millions
Jun. 30, 2024
USD ($)
Revolving Credit Facility | Senior secured, revolving credit facility  
Line of Credit Facility [Line Items]  
Outstanding $ 0
Available 2,250
Revolving Credit Facility | Broker-dealer revolving credit facility  
Line of Credit Facility [Line Items]  
Outstanding 0
Available 1,000
Unsecured Debt | Unsecured, uncommitted lines of credit  
Line of Credit Facility [Line Items]  
Outstanding 0
Available 75
Unsecured Debt | Unsecured, uncommitted lines of credit  
Line of Credit Facility [Line Items]  
Outstanding 0
Available 50
Secured Debt | Secured, uncommitted lines of credit  
Line of Credit Facility [Line Items]  
Outstanding 0
Available 75
Secured Debt | Secured, uncommitted lines of credit  
Line of Credit Facility [Line Items]  
Outstanding 0
Secured Debt | Secured, uncommitted lines of credit  
Line of Credit Facility [Line Items]  
Outstanding $ 0
v3.24.2
Corporate Debt and Other Borrowings, Net - Textuals (Details)
 6 Months Ended
May 20, 2024
USD ($)
Jul. 18, 2023
USD ($)
Jun. 30, 2024
USD ($)
lineOfCredit
Dec. 31, 2023
USD ($)
Nov. 17, 2023
USD ($)
Rate
Line of Credit Facility [Line Items]          
Corporate long-term debt     $ 4,442,840,000 $ 3,734,111,000  
Line of Credit          
Line of Credit Facility [Line Items]          
Total number of uncommitted lines of credit | lineOfCredit     5    
Number of uncommitted lines of credit with an unspecified limit | lineOfCredit     2    
Number of uncommitted lines of credit with a specified limit | lineOfCredit     3    
Senior Notes, 2028 | Senior Notes          
Line of Credit Facility [Line Items]          
Debt instrument, face amount         $ 750,000,000
Stated rate         6.75%
Debt issuance costs         $ 6,300,000
Debt instrument, issued at a discount, percent of principal | Rate         99.929%
Senior Notes Due 2027          
Line of Credit Facility [Line Items]          
Basis spread on variable rate 0.20%        
Debt Instrument, Redemption Price, Percentage 100.00%        
Senior Notes Due 2027 | Atria Acquisition          
Line of Credit Facility [Line Items]          
Debt Instrument, Redemption Price, Percentage 101.00%        
Senior Notes Due 2027 | Senior Notes          
Line of Credit Facility [Line Items]          
Debt instrument, face amount $ 500,000,000        
Stated rate 5.70%        
Senior Notes Due 2034          
Line of Credit Facility [Line Items]          
Basis spread on variable rate 0.25%        
Debt Instrument, Redemption Price, Percentage 100.00%        
Senior Notes Due 2034 | Senior Notes          
Line of Credit Facility [Line Items]          
Debt instrument, face amount $ 500,000,000        
Stated rate 6.00%        
2027 Senior Notes and 2034 Senior Notes | Senior Notes          
Line of Credit Facility [Line Items]          
Debt issuance costs     $ 7,100,000    
Revolving Credit Facility | Line of Credit          
Line of Credit Facility [Line Items]          
Line of credit, maximum borrowing capacity     200,000,000.0    
Corporate long-term debt     0 $ 0  
Revolving Credit Facility | Broker-Dealer, Revolving Credit Facility | LPL Financial LLC | Line of Credit          
Line of Credit Facility [Line Items]          
Stated rate   1.25%      
Debt issuance costs   $ 1,600,000      
Line of credit, maximum borrowing capacity   $ 1,000,000,000      
Revolving Credit Facility | Broker-Dealer, Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | LPL Financial LLC | Line of Credit          
Line of Credit Facility [Line Items]          
Basis spread on variable rate   0.10%      
Revolving Credit Facility | Parent Revolving Credit Facility | Line of Credit          
Line of Credit Facility [Line Items]          
Debt issuance costs     $ 8,600,000    
Line of credit, maximum borrowing capacity $ 2,250,000,000 $ 2,000,000,000      
Revolving Credit Facility | Parent Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | Line of Credit          
Line of Credit Facility [Line Items]          
Basis spread on variable rate   50.00%      
v3.24.2
Commitments and Contingencies (Legal) (Details) - SEC Civil Penalty - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Mar. 22, 2024
Settlement In Principle Is Reached    
Loss Contingencies [Line Items]    
Loss contingency, accrual, current   $ 50.0
Settlement In Principle Is Not Reached    
Loss Contingencies [Line Items]    
Civil penalty $ 50.0  
Litigation expense $ 40.0  
v3.24.2
Commitments and Contingencies (Other Commitments) (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Broker-Dealer [Abstract]    
Collateral securities $ 481.0  
Collateral security (Fair value) 673.4  
Amount pledged with client-owned securities 362.6  
Remaining collateral securities that can be re-pledged, loaned, or sold 310.8  
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Remaining collateral securities that can be re-pledged, loaned, or sold 310.8  
Options Clearing Corporation [Member]    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Marketable Securities 8.5 $ 5.5
National Securities Clearing Corporation [Member]    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Marketable Securities $ 19.9  
v3.24.2
Commitments and Contingencies - Self insurance Liabilities (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Self-Insurance Liability [Roll Forward]    
Self-insurance liability, beginning balance $ 81,155 $ 81,740
Losses incurred 18,611 18,093
Losses paid (20,339) (10,424)
Self-insurance liability, ending balance $ 82,883 $ 74,071
v3.24.2
Stockholders' Equity (Dividends Paid) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]            
Common Stock, Dividends, Per Share, Cash Paid $ 0.30 $ 0.30 $ 0.30 $ 0.30    
Dividends, Common Stock [Abstract]            
Cash dividends on common stock $ 22,422 $ 22,400 $ 23,139 $ 23,600 $ 44,833 $ 46,723
v3.24.2
Stockholdes' Equity (Share Repurchases) (Details)
$ / shares in Units, $ in Millions
 6 Months Ended
Jun. 30, 2024
USD ($)
$ / shares
shares
Stockholders' Equity Note [Abstract]  
Shares Purchased | shares 296,145
Weighted-Average Price Paid Per Share | $ / shares $ 236.39
Treasury Stock, Valued, Acquired, Excluding Excise Tax $ 70.0
Stock Repurchase Program, Authorized Amount $ 830.0
v3.24.2
Share-Based Compensation (Texuals) (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-based compensation:        
Authorized shares 17,754,197   17,754,197  
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant 11,713,249   11,713,249  
Employees, officers and directors [Member] | Restricted Stock [Member]        
Share-based compensation:        
Share-based compensation expense $ 17,300,000 $ 14,600,000 $ 37,600,000 $ 30,800,000
Share-based compensation cost unrecognized 119,200,000   $ 119,200,000  
Non-vested compensation cost weighted-average period     2 years 29 days  
Employees, officers and directors [Member] | Stock options and warrants [Member]        
Share-based compensation:        
Share-based compensation expense     $ 0  
Advisors and Financial Institutions [Member] | Restricted stock units (RSUs) [Member]        
Share-based compensation:        
Share-based compensation expense 700,000 $ 600,000 1,400,000 $ 1,300,000
Share-based compensation cost unrecognized $ 3,800,000   $ 3,800,000  
Non-vested compensation cost weighted-average period     1 year 9 months 25 days  
v3.24.2
Share-Based Compensation - Stock Option and Warrant Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 6 Months Ended
Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]  
Number of Shares Outstanding, Ending Balance 408,808
Stock options and warrants [Member]  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]  
Number of Shares Outstanding, Beginning Balance 546,820
Number of Shares, Granted 0
Stock option exercises and other, shares (138,012)
Number of Shares, Forfeited 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]  
Weighed-Average Exercise Price, Beginning Balance $ 54.81
Weighted-Average Exercise Price, Granted 0
Weighted-Average Exercise Price, Exercised 47.17
Weighted-Average Exercise Price, Forfeited 0
Weighed-Average Exercise Price, Ending Balance $ 57.39
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]  
Number of Shares Exercisable, Ending Balance 408,808
Weighted-Average Exercise Price, Exercisable $ 57.39
Weighted-Average Remaining Contractual Term, Options Exercisable 3 years 4 months 2 days
Aggregate Intrinsic Value, Exercisable, Ending Balance $ 90,718,000
Weighted-Average Remaining Contractual Term, Options Outstanding 3 years 4 months 2 days
Aggregate Intrinsic Value, Outstanding, Ending Balance $ 90,718,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]  
Number of Shares Exercisable and expect to vest 408,808
Weighed-Average Exercise Price, Excercisable and expect to vest $ 57.39
Weighted-Average Remaining Contractual Term, Exercisable and expected to vest 3 years 4 months 2 days
Aggregate Intrinsic Value, Exercisable and expected to vest, Ending Balance $ 90,718,000
v3.24.2
Share-Based Compensation - Outstanding Stock Options and Warrant Information (Details)
 6 Months Ended
Jun. 30, 2024
$ / shares
shares
Summary information about outstanding stock options and warrants  
Total number of shares, Outstanding | shares 408,808
Number of shares, Exercisable | shares 408,808
Stock options and warrants [Member]  
Summary information about outstanding stock options and warrants  
Weighted-average remaining life (years), Outstanding 3 years 4 months 2 days
Weighted-average exercise price, Outstanding | $ / shares $ 57.39
Weighted-average exercise price, Exercisable | $ / shares $ 57.39
$19.85 - $25.00 | Stock options and warrants [Member]  
Summary information about outstanding stock options and warrants  
Total number of shares, Outstanding | shares 58,581
Weighted-average remaining life (years), Outstanding 1 year 7 months 24 days
Weighted-average exercise price, Outstanding | $ / shares $ 19.85
Number of shares, Exercisable | shares 58,581
Weighted-average exercise price, Exercisable | $ / shares $ 19.85
$25.01 - $35.00 | Stock options and warrants [Member]  
Summary information about outstanding stock options and warrants  
Total number of shares, Outstanding | shares 0
Weighted-average remaining life (years), Outstanding 0 years
Weighted-average exercise price, Outstanding | $ / shares $ 0
Number of shares, Exercisable | shares 0
Weighted-average exercise price, Exercisable | $ / shares $ 0
$35.01 - $45.00 | Stock options and warrants [Member]  
Summary information about outstanding stock options and warrants  
Total number of shares, Outstanding | shares 81,863
Weighted-average remaining life (years), Outstanding 2 years 7 months 2 days
Weighted-average exercise price, Outstanding | $ / shares $ 39.48
Number of shares, Exercisable | shares 81,863
Weighted-average exercise price, Exercisable | $ / shares $ 39.48
$45.01 - $65.00 | Stock options and warrants [Member]  
Summary information about outstanding stock options and warrants  
Total number of shares, Outstanding | shares 6,332
Weighted-average remaining life (years), Outstanding 8 months 4 days
Weighted-average exercise price, Outstanding | $ / shares $ 45.55
Number of shares, Exercisable | shares 6,332
Weighted-average exercise price, Exercisable | $ / shares $ 45.55
$65.01 - $75.00 | Stock options and warrants [Member]  
Summary information about outstanding stock options and warrants  
Total number of shares, Outstanding | shares 127,691
Weighted-average remaining life (years), Outstanding 3 years 6 months 7 days
Weighted-average exercise price, Outstanding | $ / shares $ 65.50
Number of shares, Exercisable | shares 127,691
Weighted-average exercise price, Exercisable | $ / shares $ 65.50
$75.01 - $80.00 | Stock options and warrants [Member]  
Summary information about outstanding stock options and warrants  
Total number of shares, Outstanding | shares 134,341
Weighted-average remaining life (years), Outstanding 4 years 6 months
Weighted-average exercise price, Outstanding | $ / shares $ 77.53
Number of shares, Exercisable | shares 134,341
Weighted-average exercise price, Exercisable | $ / shares $ 77.53
v3.24.2
Share-Based Compensation - Restricted Stock Activity (Details)
 6 Months Ended
Jun. 30, 2024
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Stock units vested and undistributed 95,990
Restricted stock awards [Member]  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Number of Shares, Beginning Balance 1,568
Number of Shares, Granted 7,803
Number of Shares, Vested (3,080)
Number of Shares, Forfeited 0
Number of Shares, Ending Balance 6,291
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ / shares $ 187.93
Weighted-Average Grant-Date Fair Value, Granted | $ / shares 268.64
Weighted-Average Grant-Date Fair Value, Vested | $ / shares 227.55
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares 0
Weighted-Average Grant-Date Fair Value, Ending Balance | $ / shares $ 268.64
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number 6,291
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares $ 268.64
Restricted stock units (RSUs) [Member]  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Number of Shares, Beginning Balance 776,604
Number of Shares, Granted 412,487
Number of Shares, Vested (367,447)
Number of Shares, Forfeited (38,068)
Number of Shares, Ending Balance 783,576
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ / shares $ 205.73
Weighted-Average Grant-Date Fair Value, Granted | $ / shares 263.12
Weighted-Average Grant-Date Fair Value, Vested | $ / shares 190.50
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares 249.08
Weighted-Average Grant-Date Fair Value, Ending Balance | $ / shares $ 240.97
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number 617,178
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares $ 261.39
v3.24.2
Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Earnings Per Share [Abstract]        
Net income $ 243,800 $ 285,520 $ 532,564 $ 624,404
Basic weighted-average number of shares outstanding 74,725 77,234 74,644 77,988
Dilutive common share equivalents 823 960 885 1,095
Diluted weighted-average number of shares outstanding 75,548 78,194 75,529 79,083
Basic earnings per share $ 3.26 $ 3.70 $ 7.13 $ 8.01
Diluted earnings per share $ 3.23 $ 3.65 $ 7.05 $ 7.90
v3.24.2
Earnings per Share (Textuals) (Details) - shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Earnings Per Share [Abstract]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 5,174 208,654 3,568 107,544
v3.24.2
Net Capital and Regulatory Requirements (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Broker-Dealer [Abstract]  
Net capital $ 271,649
Less: required net capital 17,550
Excess net capital $ 254,099
v3.24.2
Subsequent Events - Dividend Declared (Details) - Subsequent Event - $ / shares
Aug. 23, 2024
Aug. 09, 2024
Subsequent Event [Line Items]    
Dividend payable, amount per share (in USD per share)   $ 0.30
Forecast    
Subsequent Event [Line Items]    
Dividends payable, date to be paid Aug. 23, 2024  
Dividends payable, date of record   Aug. 09, 2024
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