LPL shares spike on Q3 earnings as BD cuts fees and reports 80% retention in Commonwealth deal

Shares of LPL Financial rose more than 10% Friday morning after the independent brokerage giant reported strong quarterly financial results and announced plans to reduce fees for advisors on several of its platforms.

Although LPL recorded a $30m net loss on the quarter, driven by $419m in one-time costs associated with the closing of its $2.7bn purchase of Commonwealth Financial Network (CFN) in August, the firm’s adjusted earnings per share rose to a record $5.20, up 25% from last year. 

On a call with analysts and investors Thursday afternoon, LPL chief executive Rich Steinmeier said that advisors managing nearly 80% of CFN’s assets — about $275bn — have signed agreements to stay with LPL through the transaction. President and chief financial officer Matt Audette said LPL still expects to hit its 90% retention target for CFN advisors, but bumped the timeline back a few months to Q4 of 2026. The firm was initially targeting a conversion date in mid-2026.