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LPL serves the financial advisor-mediated marketplace as the nation s largest independent broker-dealer, a leading investment advisory firm, and a top custodian. We support more than 32,000 financial advisors, and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $2.4 trillion in brokerage and advisory assets.
Operating margin is thin at 6.77%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 37.2%, still solid. Margins contracted 4.5pp, which offsets some of the top-line progress.
ROIC dropped from 14.38% to 8.03%, capital efficiency is deteriorating. Negative free cash flow of -$982M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$18.26B
▲ +37.2% YoY
Net Income (TTM)
$901M
▼ -18.5% YoY
Op. Margin
6.66%
▼ -4.5pp YoY
ROIC
7.06%
▼ -6.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$1.08B
▼ -244.6% YoY
Op. Cash Flow (TTM)
-$461M
▼ -248.2% YoY
Net Debt
$6.29B
Cash & Equiv.
$1.12B
5Y CAGR: +23.7%
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