LPL Financial Holdings Inc. reported significant financial performance for the third quarter of 2024, with total revenue reaching $3.1 billion, a 23% increase from $2.5 billion in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $8.9 billion, up 20% from $7.4 billion year-over-year. The company’s net income for Q3 2024 was $255.3 million, or $3.39 per diluted share, compared to $224.3 million, or $2.91 per diluted share, in Q3 2023. However, net income for the nine months decreased to $787.9 million from $848.7 million in the prior year.
The increase in revenue was primarily driven by a 27% rise in advisory revenue, totaling $1.4 billion, and a 25% increase in total commission revenue, which reached $806.5 million. Sales-based commission revenue also saw a notable 38% increase, amounting to $429.1 million. The company’s gross profit for Q3 2024 was $1.1 billion, reflecting a 12% increase from the previous year.
LPL Financial's total advisory and brokerage assets served reached $1.6 trillion as of September 30, 2024, up from $1.2 trillion a year earlier. Advisory assets alone increased by 35% to $892.0 billion, while brokerage assets rose by 22% to $700.1 billion. The company reported net new advisory assets of $23.7 billion for Q3 2024, a slight increase from $22.7 billion in Q3 2023, although total net new assets decreased to $27.5 billion from $33.2 billion year-over-year.
Strategically, LPL Financial completed the acquisition of Atria Wealth Solutions, Inc. on October 1, 2024, for an initial cash payment of approximately $835 million, with potential contingent consideration of up to $330 million based on future performance. The company also underwent leadership changes, terminating Dan H. Arnold as President and CEO and appointing Rich Steinmeier as his successor. Matt Audette was named President and Chief Financial Officer.
Total expenses for Q3 2024 were $2.8 billion, a 25% increase from $2.2 billion in Q3 2023, driven by higher compensation and benefits, promotional expenses, and interest expenses. The effective income tax rate decreased to 26.5% from 29.4% in the prior year, primarily due to lower non-deductible expenses.
As of September 30, 2024, LPL Financial's corporate debt stood at $4.4 billion, up from $3.5 billion at the end of 2023, reflecting increased borrowings to fund acquisitions. The company maintained a leverage ratio of 1.61, up from 1.26 a year earlier.
About LPL Financial Holdings Inc.
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