LPL Raises Commonwealth EBITDA View by $25 Million as Q2 Profit Jumps to $379 Million
Updated
Updated · RIABiz · Jul 31
LPL Raises Commonwealth EBITDA View by $25 Million as Q2 Profit Jumps to $379 Million
2 articles · Updated · RIABiz · Jul 31
Summary
$355 after hours—up 4.67%—put LPL shares on track for a sharp gain after the broker-dealer lifted Commonwealth’s expected run-rate EBITDA to $435 million from $410 million.
$379 million in Q2 net income, or $4.74 a share, rose from $273 million, or $3.40, a year earlier, adding to momentum from strong quarterly metrics and a 35% revenue increase reported earlier.
$309 million of stock repurchases in Q2, versus an initial $125 million plan, reflected management’s push to exploit a share-price dip; the board also approved a new $2.5 billion buyback authorization with $300 million planned for Q3.
Mid-80s asset retention at Commonwealth still trails LPL’s 90% target, and the higher cash-flow outlook still depends on moving assets off Fidelity’s clearing platform and completing the conversion expected in Q4 2026.
J.D. Power ranked Commonwealth No. 1 and LPL No. 2 in independent advisor satisfaction, giving LPL fresh support for its strategy of preserving Commonwealth’s premium service model while folding it into the broader platform.