LPL Financial Holdings Inc Q3 2025 Earnings Call Summary

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

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Hey, guys. Good afternoon. Thank you for all the details, including the snack preferences. Just maybe starting with Commonwealth, obviously, it's a big topic; helpful update with the 80%. Maybe help us frame how that's tracking at this point of integration relative to your original plan and given that 80% is already quite a sizable number, at what point do you find that your recruiting teams could start to focus more externally again to re-accelerate the pace of net organic growth? Thank you.

Question: Craig Siegenthaler - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Thanks. Good evening, everyone. I have another follow-up on Commonwealth. And congrats on getting to the 80% retention. That fell faster than expected. But on the 90% target, is the timeline there the 4Q26 onboarding target, or could that actually be sooner?

Question: Brennan Hawken - Bank of Montreal - Analyst : Good afternoon. Thanks for taking my question, Rich and Matt. Good to hear from you. So I know Commonwealth brings new capabilities to you. You've also been steadily investing in building out the service offering, particularly for high-net-worth investors. You know, really with the goal of pursuing larger teams and targeting to more wirehouse advisors. Could you speak to how that's progressing and what your updated expectations are on that front? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2025 / 9:00PM, LPLA.OQ - Q3 2025 LPL Financial Holdings Inc Earnings Call

Question: Devin Ryan - Citizens JMP Securities LLC - Analyst : Hey, thanks. Good afternoon, Rich and Matt. One asked a question just on expenses. Obviously, it's good to see the improvement on the 2025 G&A guide. So, just trying to think about bigger picture, there's been a lot of moving parts on expenses just with a couple big acquisitions coming into the system here in recent quarters, the same time you guys are taking actions to become more efficient. So, I'd love to just think about, I guess, first off, some of the drivers that improve the guidance for the year, how much of that is structural, carries into 2026? And then just more broadly, how you're feeling about the expense trajectory of the firm is, you're probably finding more efficiencies with these transactions at the same time? There's still plenty of growth investment to do and some business inflation. So just trying to think about the guidance, but then also the trajectory. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2025 / 9:00PM, LPLA.OQ - Q3 2025 LPL Financial Holdings Inc Earnings Call

Question: Benjamin Budish - Barclays Services Corp - Analyst : Hi. Good evening, and thanks for taking my question. Matt, a few questions ago you were talking about how the slowdown in advisors in motion has resulted in some elevated TA rates, not just that are impacting Commonwealth, but across the industry more broadly. I'm curious, you know, you guys have talked in the past about, you know, these sort of slowdowns being temporary. Given where rates are -- you know, I think you've explained in the past that TA rates rose as somewhat reflecting a reinvestment of higher rates on cash balances. What would your expectation be or how do you think about the, you know, the progression of TA rates from here as rates come down? Would it be natural to expect that if advisors in motion, the turnover picks up, that rates come back down? Or what would your expectation be there? How should we be thinking about the oversight the next 12 months?

Question: Bill Katz - Cowen and Company LLC - Analyst : Great. Thanks very much for taking the questions, and congrats on the one year. I bet you can't believe how quick it's been. Maybe a two-part question, just embedded, a little bit disparate in nature, so I apologize for that. Can you give us a sense of where you might stand on the enterprise side? Now that you're working your way through CFN and how you might be able to sort of multitask maybe some larger platforms to the extent that that pipeline is building. And then on the net new money that's coming in the door, can you tell us what kind of cash allocation it is relative to roughly 2.5%,that's the legacy book right now? Thank you.

Question: Bill Katz - Cowen and Company LLC - Analyst : I apologize for coughing on the call. Yes, like the cash allocation as a percentage of net new assets compared to roughly the 2.5%, that's the average for the quarter.