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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•	Net income of $50 million, or $0.56 per share

•	Pre-tax income of $85 million

•	EBITDA of $137 million

•	Gross Profit of $356 million

•	Core G&A of $175 million

•	End of period total brokerage and advisory assets of $479 billion

•	Net new advisory assets of $2.0 billion

•	End of period cash sweep balances of $30.4 billion

•	Credit Agreement EBITDA of $144 million for the quarter, $518 million on a trailing twelve month basis

•	Credit Agreement Net Leverage of 3.7x and Credit Agreement Net Debt of $1.9 billion

•	Cash available for corporate use of $527 million

•	Share repurchases of $25 million in January, as previously disclosed, with no additional repurchases during the quarter

•	Dividends of $22 million paid on March 14, 2016

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•	S&P 500 index ended the quarter at 2,060, up 0.8% sequentially. The intra-quarter low was 1,829 and the volatility in the market produced an average of 1,951, down 5% from the fourth quarter average.

•	Federal Funds Daily Effective Rate ("FFER") averaged 36 bps during the quarter, up 20 bps sequentially.

•	Brokerage and advisory assets were $479 billion, up 0.7% sequentially.

•	Net new advisory assets were $2.0 billion, translating to a 4% annualized growth rate.

•	Cash sweep balances were $30.4 billion, up 5% sequentially.

•	Advisor headcount was 14,093, up 39 from the prior quarter. Production retention rate was 97%.

•	Commissions were $437 million, down 6% from the prior quarter. The decrease was driven by lower sales as well as and trailing commissions which declined due to lower average asset levels.

•	Advisory fees were $319 million, down 1% from the prior quarter. This was driven by lower billable asset levels.

•	Asset-based revenues were $136 million, up 10% sequentially. Sponsor revenues were down 1% due to lower average billable assets. Cash sweep revenue increased 59% from higher average FFER and higher average cash balances.

•	Transaction and fee revenues were $103 million, up 6% sequentially, primarily driven by increased advisory transaction volume.

•	Total payout ratio was 84.1%, down 2.9% sequentially. This was primarily driven by the seasonal decline in production-based bonuses which reset in Q1 of each year.

•	Core G&A expenses were $175 million, down $4 million sequentially. This was primarily driven by lower severance, seasonal expenses, and non-recurring items, partially offset by an increase in employee performance-based compensation, which was reduced in the prior quarter.

•	Promotional expenses were $36 million, up $1 million sequentially. Conference expenses increased approximately $4 million sequentially, but were mostly offset by seasonally lower marketing and transition assistance.

•	Regulatory expenses, which include the cost of restitution and remediation of previously settled regulatory matters, were $1 million, down $7 million sequentially. The decrease was primarily driven by lower activity.

•	Depreciation and amortization expenses were $19 million, down $4 million sequentially as the prior quarter included non-recurring items primarily related to real estate consolidation.

•	Interest expense was $24 million, up $5 million sequentially. Q4 had one month of increased expense following the November debt transaction while Q1 had a full quarter.

•	Credit Agreement EBITDA was $144 million for the quarter, up $32 million sequentially. Credit Agreement EBITDA was $518 million for the trailing 12 months, up $8 million from the prior quarter.

•	Credit Agreement Net Debt was $1.9 billion, calculated as $2.2 billion of total debt less $300 million of cash available for corporate use.

•	Credit Agreement Net Leverage was 3.7x, a decline of 0.1x from the prior quarter. Cash available for corporate use was $527 million as of quarter-end. After applying $300 million to Credit Agreement Net Debt, this left an additional $227 million of cash, which if applied to the debt, would further reduce Credit Agreement Net Leverage to 3.3x.

•	Share repurchases in January totaled $25 million, representing approximately 635 thousand shares with an average price of $39.41. There were no additional share repurchases during the quarter.

•	Dividends were $22 million, paid on March 14, 2016.

•	Capital expenditures were $20 million, down $1 million sequentially. The majority of capital expenditures were for technology and the construction of the Company's new campus in Fort Mill, South Carolina.

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(a)	The Company's Revolving Credit Facility has a borrowing capacity of $400 million

(b)	The Company's Term Loan B Credit Facilities have a LIBOR floor of 75 basis points

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(1)	The information presented on pages 8-15 includes non-GAAP financial measures and operational and performance metrics. For more information on non-GAAP measures, please see the section titled “Non-GAAP Financial Measures” on page 3.

(2)	GDC, or gross dealer concessions, a non-GAAP measure, is equal to the sum of Commission and Advisory revenues.

(3)	Cash sweep revenue consists of fees from the Company’s cash sweep program, specifically a money market sweep vehicle involving money market fund providers and an insured bank deposit sweep vehicle. Cash sweep revenues are a component of asset-based revenues and are derived from the Company’s Condensed Consolidated Statement of Operations.

(4)	Other asset-based revenues consists of the Company’s sponsorship programs with financial product manufacturers and omnibus processing and networking services, but not including fees from cash sweep programs. Other asset-based revenues are a component of asset-based revenues and are derived from the Company’s Condensed Consolidated Statement of Operations.

(5)	Other consists of interest income as well as Other revenues, as presented on the Company’s Condensed Consolidated Statement of Operations.

(6)

Gross Profit is calculated as net revenues less production expenses. Production expenses consist of the following expense categories from the Company’s condensed consolidated statements of income: (i) commission and advisory and (ii) brokerage, clearing, and exchange. All other expense categories, includes depreciation and amortization, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers its gross profit amounts to be non-GAAP measures that may not be comparable to those of others in its industry.

(7)	Core G&A expenses consists of total operating expenses excluding the following expenses: commission and advisory, regulatory (see FN 8), promotional (see FN 9), employee share-based compensation (see FN 10), other historical adjustments (see FN 11), depreciation and amortization, and brokerage, clearing, and exchange.

(8)	Regulatory charges consist of items that the Company’s management relates to the resolution of regulatory issues (including remediation, restitution, and fines).

(9)	Promotional expenses include costs related to hosting of advisor conferences, business development costs related to recruiting, such as transition assistance, and amortization related to forgivable loans issued to advisors.

(10)	Employee share-based compensation expense represents share-based compensation for equity awards granted to employees, officers, and directors. Such awards are measured based on the grant date fair value and recognized over the requisite service period of the individual awards, which generally equals the vesting period.

(11)	Primarily includes acquisition and integration costs resulting from various acquisitions and organizational restructuring and conversion costs. Beginning in Q1 2016, these items are included in Core G&A expenses (see FN 7).

(12)	Brokerage assets is a component of Total Brokerage and Advisory Assets (see FN 14) and consist of assets serviced by advisors licensed with the Company’s broker-dealer subsidiary LPL Financial LLC (“LPL Financial”) that are custodied, networked, and non-networked, and reflect market movement in addition to new assets, inclusive of new business development and net of attrition.

(13)	Advisory assets is a component of Total Brokerage and Advisory Assets (see FN 14) and consists of advisory assets under management on the Company’s corporate advisory platform (see FN 21) and Hybrid RIA assets in advisory accounts custodied at the Company (see FN 20).

(14)	End of period Total Brokerage and Advisory Assets are comprised of assets that are custodied, networked, and non-networked, and reflect market movement in addition to new assets, inclusive of new business development and net of attrition. End of period insured cash account and money market account balances are also included in Total Brokerage and Advisory Assets.

(15)	Insured Cash Account Assets represents advisors’ clients’ accounts balances in an insured bank deposit sweep vehicle at the end of the reporting period. These assets are included in Total Advisory and Brokerage Assets (see FN 14).

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(16)	Money Market Account Cash Assets represents advisors’ clients’ accounts balances in money market fund providers at the end of the reporting period. These assets are included in Total Advisory and Brokerage Assets (see FN 14).

(17)	Represents the sum of Insured Cash Account Assets and Money Market Account Cash Assets, which together comprise end of period assets in the Company’s cash sweep program. These assets are included in Total Advisory and Brokerage Assets (see FN 14).

(18)	Net New Advisory Assets consist of funds deposited into new advisory accounts and additional funds deposited into existing advisory accounts that are custodied in the Company's fee-based advisory platforms during the period, and exclude market impact.

(19)	Annualized growth is calculated by dividing Net New Advisory Assets (see FN 18) by end of period advisory assets and multiplying by four.

(20)

The Company serves independent RIAs that conduct their advisory business through separate entities (“Hybrid RIAs”) operating pursuant to the Investment Advisers Act of 1940 or through their respective states' investment advisory licensing rules, rather than through LPL Financial. Advisors associated with Hybrid RIAs pay fees to access the Company’s Hybrid RIA platform for an integrated offering of technology, clearing, compliance, and custody services to Hybrid RIAs. Most financial advisors associated with Hybrid RIAs carry their brokerage license with LPL Financial, although some financial advisors associated with Hybrid RIAs do not carry a brokerage license through LPL Financial. Total Hybrid Platform Assets consist of assets managed or serviced by advisors associated with a Hybrid RIA firm that are custodied, networked, and non-networked with the Company, and reflect market movement in addition to new assets, inclusive of new business development and net of attrition. This measure does not include assets managed by Hybrid RIAs that are custodied with a third-party custodian.

(21)	Corporate assets include assets served on the Company’s corporate brokerage and corporate advisory platforms.

(22)

Total Retirement Assets are a component of Total Advisory and Brokerage Assets (see FN 14), and consist of retirement plan assets held in advisory and brokerage accounts that are custodied, networked, and non-networked at the Company, and reflect market movement in addition to new assets, inclusive of new business development and net of attrition. This measure does not include additional retirement plan assets serviced by advisors through either LPL Financial or Hybrid RIAs, which assets the Company currently estimates at approximately $121 billion.

(23)	Reflects insured cash account and money market fees quarterly average.

(24)	The Company's production payout ratio is calculated as production expenses (see FN 6), excluding brokerage, clearing, and exchange fees, divided by GDC (see FN 2).

(25)	Production Non-GDC Sensitive Payout, a non-GAAP measure, includes share-based compensation expense from equity awards granted to advisors and financial institutions (see FN 27) and mark-to-market gains or losses on amounts designated by advisors as deferred.

(26)	The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance.

(27)	Advisor share-based compensation expense represents share-based compensation for the stock options and warrants awarded to advisors and financial institutions based on the fair value of the awards at each reporting period.

(28)	Other represents items that were adjusted in accordance with the Credit Agreement to calculate Credit Agreement EBITDA, including employee severance costs, employee signing costs, and employee retention or completion bonuses.

(29)	Credit Agreement EBITDA as presented for Q4 2015 reflects the final amounts for the period as calculated and delivered to the Company's agent under the Credit Agreement and represents a $1 million increase to the amount presented in the Company's Q4 2015 earnings release on February 11, 2016.

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

(31)	Parent refers to LPL Holdings, Inc., an intermediate subsidiary of the Company, which is the Borrower under the Credit Agreement.

(32)	Custom Clearing Services subscribers are financial advisors who are affiliated and licensed with insurance companies that receive customized clearing services, advisory platforms, and technology solutions from the Company.

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(33)	A simple average advisor count is used to calculate "per advisor" metrics by taking the average advisor count from the current period and sequential period. The calculation uses the average advisor count at the beginning and the end of period, and excludes Custom Clearing Services subscribers (see FN 32).

(34)

Transition assistance consists of payments to newly recruited advisors and financial institutions to assist in the transition process. Smaller advisor practices receive payments that are charged to earnings in the current period, whereas larger advisor practices and financial institutions typically receive transition assistance in the form of forgivable loans or recoverable advances that are generally amortized into earnings over a period of three to five years. Transition assistance loan amortization represents the amortizable amount of forgivable loans or recoverable advances that are charged to earnings in the period presented.

(35)	Based on annualized advisory revenues over corporate advisory assets at the prior quarter's end (corporate advisory assets is defined as total Advisory (see FN 14) less Hybrid Platform Advisory Assets (see FN 20)).

(36)	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.

(37)	Attachment revenue is comprised of asset-based revenues (including revenue from cash sweep programs), transaction and fee revenue, and other revenue. Attachment rate, excluding cash revenue is calculated as attachment revenue (less revenue from cash sweep programs) over total commission and advisory revenues for the quarter.

(38)	Capital allocation per share equals the amount of capital allocated for share repurchases and cash dividends over the diluted weighted average shares outstanding.