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LPL Financial LPLA

LPL Financial scores good on business quality (7.4 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$330.88Oct 9, 2026
Business qualityGood
Next earningsOct 27, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What LPL Financial does

    LPL Financial operates an independent broker-dealer platform, making money by providing clearing, compliance, and technology services to independent financial advisors who pay fees based on client assets. The firm is expanding its advisor network through recruited assets, driving top-line expansion visible in recent revenue gains.

  2. What it does best

    LPL excels at advisor recruitment, posting a revenue growth rate of 37.2% that sits in the top decile of its sector at the 94th percentile, outperforming peers like Goldman Sachs at -1.4%.

  3. The main risk

    Regulatory scrutiny and advisor misconduct present the primary threat, evidenced by recent disciplinary actions such as a broker barring for stealing $1.7 million from clients, which risks reputational damage and compliance costs.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin lags at 11.6%, placing it in the bottom quartile of its sector at the 14th percentile due to heavy operational expansion costs as it scales.

MoatStrong

The moat relies on high switching costs for advisors moving client assets, backed by a gross margin of 99.0% which ranks in the 96th percentile of its sector.

GrowthFast

Revenue is driven by its core advisor platform, surging 37.2% to $19.6 billion, accelerating significantly compared to historical figures like $10.1 billion in 2023.

Financial healthStrong

Debt-to-equity sits at 1.4 with interest coverage at 5.5x, while free cash flow stands at negative $931 million, showing a softening cash profile despite rising revenues.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

2 sold $1.6M outside pre-planned sales.

Our sealed record on LPLA

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is LPLA a good business?

LPL Financial scores good on the Cluenex quality check (7.4 of 10), measured against its own industry. Profitability is weak, moat strong, growth fast and financial health strong.

Are insiders buying LPLA?

In the last 90 days of SEC Form 4 filings: 2 sold $1.6M outside pre-planned sales.

When does LPLA report earnings?

Oct 27, 2026, after the close.

For members

See LPLA today

  • Today's verdict on LPLA, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “LPL Financial (LPLA)”, https://cluenex.com/stocks/lpla/, data as of Oct 10, 2026.