o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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•	Earnings per share ("EPS") increased 97% year-over-year to $1.36.

◦	Net Income increased 88% year-over-year to $120 million.

•	EPS prior to Amortization of Intangible Assets** increased 96% year-over-year to $1.49.

•	Total Brokerage and Advisory Assets increased 2% year-over-year to $628 billion.

•	Total Net New Assets were an inflow of $5.9 billion, translating to a 3.5% annualized growth rate.

◦	Net new advisory assets were an inflow of $5.0 billion, translating to a 6.5% annualized growth rate.

◦	Net new brokerage assets were an inflow of $0.9 billion, translating to a 1.0% annualized rate.

◦	Recruited Assets(1) were $8.6 billion in Q4, and $27.3 billion for the year, up 9% from the prior year.

◦	Advisor count was 16,109 and production retention rate for the year was 96%.

•	Total client cash sweep balances increased 24% sequentially to $34.9 billion.

◦	Total client cash sweep balances as a percent of total assets was 5.6%, up from 4.1% in the prior quarter.

•	Gross Profit** increased 26% year-over-year to $508 million.

•	EBITDA** increased 67% year-over-year to $232 million.

◦	EBITDA** as a percentage of Gross Profit** was 46%, up from 35% a year ago.

◦	Core G&A** increased 11% year-over-year to $216 million, up 3% sequentially, including $2 million of expenses related to the acquisition of AdvisoryWorld.

•	Shareholder capital returns were $139 million, translating to $1.58 per share.

◦	Share repurchases were $118 million for 1.9 million shares at an average purchase price of $61.19.

◦	Weighted average fully diluted share count was 88.2 million, down 2% sequentially and down 5% year-over-year.

◦	Dividends were $22 million.

•	Cash available for corporate use was $339 million.

•	Credit Agreement Net Leverage Ratio(2) was 2.15x, down 0.09x from the prior quarter.

•	EPS increased 87% year-over-year to $4.85.

◦	Net Income increased 84% year-over-year to $439 million.

•	EPS prior to Amortization of Intangible Assets** increased 88% year-over-year to $5.33.

•	Gross Profit** increased 25% year-over-year to $1,948 million.

•	EBITDA** increased 40% year-over-year to $866 million.

◦	EBITDA** as a percentage of Gross Profit** was 44%, up from 40% a year ago.

◦	Core G&A** was $819 million, including $2 million of expenses related to the acquisition of AdvisoryWorld.

•	Shareholder capital returns were $506 million, translating to $5.59 per share.

◦	Share repurchases were $418 million for 6.5 million shares at an average purchase price of $63.96.

◦	Dividends were $88 million.

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•	Increased fixed ICA balances to ~35% of total ICA portfolio, up from ~10% in Q3.

•	Updated 2019 Core G&A** Outlook range to $850 to $875 million to include ~$5 million of costs related to AdvisoryWorld.

•	Provided capital plan updates in 8-K filed on December 4, 2018:

◦	Lowered target credit agreement net leverage ratio to a range of 2.00x to 2.75x, from 3.25x to 3.5x.

◦	Increased share repurchase authorization to $1 billion as of December 31, 2018.

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(a)	The Revolving Credit Facility has a borrowing capacity of $500 million.

(b)	The LIBOR rate option is one-month LIBOR rate and subject to an interest rate floor of 0 basis points.

(c)	The Senior Unsecured Notes were issued in two separate transactions; $500 million in notes were issued in March 2017 at par; the remaining $400 million were issued in September 2017 and priced at 103% of the aggregate principal amount.

(d)	Does not include unamortized premium of approximately $10.1 million as of December 31, 2018.

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(1)

Represents the estimated total brokerage and advisory assets expected to transition to the Company's broker-dealer subsidiary, LPL Financial LLC ("LPL Financial"), associated with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters including the initial quarter of the transition, and the actual amount transitioned may vary from the estimate.

(2)	Compliance with the Credit Agreement Leverage Ratio is only required under the revolving credit facility.

(3)	Certain information presented on pages 8-17 includes non-GAAP financial measures and operational and performance metrics. For more information on non-GAAP financial measures, please see the section titled “Non-GAAP Financial Measures” on page 3.

(4)	Consists of revenues from the Company's sponsorship programs with financial product manufacturers and omnibus processing and networking services, but does not include fees from cash sweep programs. Other asset-based revenues are a component of asset-based revenues and are derived from the Company's Unaudited Condensed Consolidated Statements of Income.

(5)	Core G&A is a non-GAAP financial measure. Please see a description of Core G&A under “Non-GAAP Financial Measures” on page 3 of this release for additional information. Below is a reconciliation of Core G&A against the Company’s total operating expense for the periods presented:

(6)	Consists of total advisory assets under custody at LPL Financial.

(7)	Consists of brokerage assets serviced by advisors licensed with LPL Financial.

(8)	Consists of total assets on LPL Financial's corporate advisory platform serviced by investment advisor representatives of LPL Financial.

(9)	Consists of total assets on LPL Financial's independent advisory platform serviced by investment advisor representatives of separate investment advisor firms ("Hybrid RIAs"), rather than of LPL Financial.

(10)	Represents those Advisory Assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios, and Guided Wealth Portfolios platforms.

(11)	Consists of total client deposits into advisory accounts less total client withdrawals from advisory accounts. The Company considers conversions from and to brokerage accounts as deposits and withdrawals respectively.

(12)	Consists of total client deposits into brokerage accounts less total client withdrawals from brokerage accounts. The Company considers conversions from and to advisory accounts as deposits and withdrawals respectively.

(13)	Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.

(14)	Calculated as annualized current period net new assets divided by preceding period assets in their respective categories of advisory assets or total brokerage and advisory assets.

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(15)	Consists of total client deposits into advisory accounts on LPL Financial's corporate advisory platform (FN 8) less total client withdrawals from advisory accounts on its corporate advisory platform.

(16)	Consists of total client deposits into advisory accounts on LPL Financial's independent advisory platform (FN 9) less total client withdrawals from advisory accounts on its independent advisory platform.

(17)	Consists of total client deposits into Centrally Managed Assets accounts (FN 10) less total client withdrawals from Centrally Managed Assets accounts.

(18)	Calculated by dividing revenue for the period by the average balance during the period.

(19)	Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial. Reported activity does not include any other cash activity, such as deposits, withdrawals, dividends received, or fees paid.

(20)	Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter, and in doing so may make further adjustments to prior quarters.

(21)	Represents estimated potential future cost savings, operating expense reductions or other synergies included in Credit Agreement EBITDA in accordance with the Credit Agreement relating to the acquisition of NPH. Such amounts do not represent actual performance and there can be no assurance that any such cost savings, operating expense reductions or other synergies will be realized.

(22)	Represents the portion of Credit Agreement EBITDA that management estimates to be attributable to the NPH acquisition, which is added back to offset NPH run-rate EBITDA accretion, in accordance with the Credit Agreement.

(23)	Represents items that are adjustable in accordance with the Credit Agreement to calculate Credit Agreement EBITDA, including employee severance costs, employee signing costs, employee retention or completion bonuses, and other non-recurring costs.

(24)	Consists of cash unrestricted by the Credit Agreement and other regulations available for operating, investing, and financing uses.

(25)	Calculated based on the average advisor count from the current period and prior period.

(26)	Calculated based on the end of period Total Brokerage and Advisory Assets divided by end of period Advisor count.

(27)	Represents the amortization expense amount of forgivable loans for transition assistance to advisors and financial institutions.

(28)	Represents annualized Gross Profit (FN 3) for the period, divided by average month-end Total Brokerage and Advisory Assets for the period.

(29)

Represents annualized operating expenses for the period, excluding production-related expense, divided by average month-end Total Brokerage and Advisory Assets for the period. Production-related expense includes commissions and advisory expense and brokerage, clearing and exchange expense. For purposes of this metric, operating expenses includes Core G&A (FN 5), Regulatory, Promotional, Employee Share Based Compensation, Depreciation & Amortization, and Amortization of Intangible Assets.

(30)	EBIT ROA is calculated as Gross Profit ROA less OPEX ROA.

(31)	Reflects retention of commission and advisory revenues, calculated by deducting the prior year production of the annualized year-to-date attrition rate, over the prior year total production.

(32)

Recurring Gross Profit Rate refers to the percentage of the Company’s gross profit, a non-GAAP financial measure, that was recurring for the trailing twelve month period. Management tracks recurring gross profit, a characterization of gross profit and a statistical measure, which is defined to include the Company’s revenues from asset-based fees, advisory fees, trailing commissions, cash sweep programs, and certain other fees that are based upon client accounts and advisors, less the expenses associated with such revenues and certain other recurring expenses not specifically associated with a revenue line. Management allocates such other recurring expenses, such as non-GDC sensitive production expenses, on a pro-rata basis against specific revenue lines at its discretion.

(33)	Capital Allocation per Share equals the amount of capital allocated for share repurchases and cash dividends divided by the diluted weighted-average shares outstanding.

(34)	EPS prior to amortization of intangible assets is a non-GAAP financial measure. Please see a description of EPS prior to amortization of intangible assets under “Non-GAAP Financial Measures” on page 3 of this release for additional information. Below is a reconciliation of EPS prior to amortization of intangible assets to the Company’s GAAP EPS for the periods presented:

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