LPL Financial Holdings Inc at Goldman Sachs U.S. Financial Services Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : So Rich, since you became CEO a little bit over a year ago, there's been a lot. It's been quite an active year for LPL between several transactions, obviously, including the largest deal LPL has done in quite some time, a bunch of strategic initiatives as well. What are some of the key lessons learned so far? And what are the key strategic priorities as you look out into next year.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Great. Well, that's a great setup to talk about Commonwealth. Obviously, you guys are early in the integration, but so far, it sounds like things have been done quite well. Retention has been strong. You highlighted already about 80%. So you're definitely on your way to that 90% target. As you get deeper into integration, what are some of the lessons learned there and maybe other key observations for us to focus on?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yes. No, it's a lot. I get that. Maybe just building on that a little bit. So you're into the integration. You're now more in the process of actually onboarding some of these advisers to do that work. As you go through that process, what are some of the incremental opportunities you sort of finding underneath the surface that could further enhance either strategic or financial merits of the deal relative to what you expected? And then what are some of the risks you're still most mindful of?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Okay. Let's pivot a bit away from Commonwealth and talk about the rest of the business. I wanted to start with a couple of questions around just institutional pipeline and future deals. As you progress through onboarding, obviously, you highlighted it's a lot of work. It obviously makes sense that you guys would push some of the larger transactions further down, but they don't disappear. Presumably, they're still kind of out there. So as you go through this integration process, how do you envision activity in institutional channel rebuilding? And I guess, more importantly, because you've added so many different capabilities over the last couple of years, like the Pru deal in particular comes to mind, how should investors think about financial implications of future transactions from just like an incremental margin perspective?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : How far down the Commonwealth integration do you guys feel like you need to be for some of these institutional transactions to start the material. Is it late '26, is it into '27? Do you think it could be a little bit earlier? Kind of what do you think?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yes. Great. All right. Well, let's talk about the regular way recruiting and the net new asset trajectory for the business. Historically, you guys have been the leader in the space, best-in-class kind of high single-digit organic growth, excluding some of the larger deals. Over the past year or so, we've seen deceleration in organic growth at LPL, but really also across the industry, we obviously cover all your peers. Everyone had a bit of a step back in the pace of net investor growth. Two-part question there for you as well. I guess, one, how would you characterize the drivers of industry deceleration? And I guess, more importantly, how would you frame your expectations for LPL's net new investor growth into next year, especially as you kind of start to shift some of the resources from integration back into the recruiting pipeline. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 1:00PM, LPLA.OQ - LPL Financial Holdings Inc at Goldman Sachs U.S. Financial Services Conference

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : That's great. Look, one of the things you mentioned is sort of the source of some of your organic growth has been sort of this continued innovation, expansion in new markets, et cetera. So maybe we can talk a little bit about some of these more nascent channels and some of the nascent capabilities. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 1:00PM, LPLA.OQ - LPL Financial Holdings Inc at Goldman Sachs U.S. Financial Services Conference You launched liquidity and succession capability. That one definite stands out. But you're also on your way to building out a bunch of other offerings, the alternatives platform, securities-based lending, relaunch of that as well is quite important. I guess when you put it all together, what opportunities do you see this innovation unlocking? And what do you think is ultimately going to be the most needle moving from an investor perspective.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : That makes a lot of sense. Let's spend a couple of minutes on pricing. You guys announced several pricing changes across the platform. I guess, first, maybe help level set for us why that was the case and what was the rationale behind it? And I guess, more importantly, what are some of the other potential levers do you see in the business to drive incremental monetization within the existing customer base? And you talked about some of them already. So whether it's alts or securities-based lending, that is probably part of that. But maybe you could expand on the kind of pricing and monetization opportunity.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yes. You mentioned operating margin a number of times. So maybe we can head for a quick turn on that as well. So clearly, lots of progress. You made some changes. That obviously got elevated into a broader role and sort of some of those efficiencies cascaded throughout the organization. As you think about the G&A expense growth over kind of a multiyear basis, what does that look like? I mean I know you said this is not an anomaly, 2025 is not a one-off. But how do you think about just kind of the normalized pace of G&A growth?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : You're a growth -- (multiple speakers) LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 1:00PM, LPLA.OQ - LPL Financial Holdings Inc at Goldman Sachs U.S. Financial Services Conference

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : I think we're out of time. -- I think this is a great note to end on. So thank you so much for doing this. Great to see you.