Independent financial services firm LPL Financial (NASDAQ: LPLA) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 40.4% year on year to $4.93 billion. Its non-GAAP profit of $5.23 per share was 6.8% above analysts’ consensus estimates.

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"2025 was an outstanding year for LPL as we advanced our key strategic priorities," said Rich Steinmeier, CEO.

Company Overview

As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, LPL Financial’s revenue grew at an exceptional 23.7% compounded annual growth rate over the last five years. Its growth surpassed the average financials company and shows its offerings resonate with customers, a great starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. LPL Financial’s annualized revenue growth of 30% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, LPL Financial reported magnificent year-on-year revenue growth of 40.4%, and its $4.93 billion of revenue beat Wall Street’s estimates by 1.1%.

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Assets Under Management (AUM)

Assets Under Management (AUM) is the cornerstone of a financial firm's investment division, representing all client capital under its stewardship. Management fees on this AUM create reliable, recurring revenue that maintains stability even when investment performance struggles, though prolonged poor returns can eventually affect asset retention and growth.

LPL Financial’s AUM has grown at an annual rate of 21.5% over the last five years, better than the broader financials industry but slower than its total revenue. When analyzing LPL Financial’s AUM over the last two years, we can see that growth accelerated to 29.1% annually. This performance aligned with its total revenue.

LPL Financial’s AUM punched in at $2.4 trillion this quarter, beating analysts’ expectations by 2.5%. This print was 44% higher than the same quarter last year.

Key Takeaways from LPL Financial’s Q4 Results

We enjoyed seeing LPL Financial beat analysts’ AUM expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, this print had some key positives. Investors were likely hoping for more, and shares traded down 2.2% to $354.93 immediately following the results.

Is LPL Financial an attractive investment opportunity at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).