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Schwab Reports Record 4Q and Full Year 2025 Results

01/21/2026

4Q Core Net New Assets Total $163.9 Billion; Full-Year Organic Growth of 5.1%
4Q Net Revenues Up 19% Year-Over-Year to a Record $6.3 Billion
Quarterly GAAP Earnings Per Share of $1.33, $1.39 Adjusted(1) – Up 38% versus 4Q24

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation reported net income for the fourth quarter totaling $2.5 billion, or $1.33 earnings per share. Excluding $127 million of pre-tax transaction-related costs, adjusted(1) net income and earnings per share equaled $2.6 billion and $1.39, respectively.

Client Driven
Growth

$519B
2025 Core
Net New Assets

“Schwab delivered growth on all fronts in 2025. Total client accounts grew 6% year-over-year to 46.5 million. New and existing clients entrusted us with $519 billion in core net new assets – a 5.1% organic growth rate – bringing total client assets to a record $11.90 trillion.”
President & CEO Rick Wurster

Deepen Client
Relationships

36%
2025 Managed Investing
Net Inflows Growth

“Clients are conducting more of their financial lives at Schwab, with record engagement across wealth management, trading, and banking. Net inflows into our Managed Investing solutions grew by 36% versus 2024, while bank loan originations achieved another record year.”
President & CEO Rick Wurster

Diversified
Revenue Growth

22%
2025 Revenue
Growth vs. 2024

“Doing more for our growing client base bolsters Schwab’s diversified revenue model. In 2025, the combination of our business momentum, strong engagement, and favorable equity markets resulted in record revenue of $23.9 billion – up 22% versus the prior year.”
CFO Mike Verdeschi

Opportunistic
Capital Return

$7.3B
2025 Common
Stock Repurchases

“During 4Q25, we repurchased 29.2 million shares for $2.7 billion, bringing 2025 capital return to $11.8 billion across all forms. Our capital ratios remained strong while enhancing our balance sheet flexibility to meet the needs of clients in different environments.”
CFO Mike Verdeschi

4Q25 Client and Business Highlights

  • Total client assets increased 18% year-over-year to a record $11.90 trillion
  • Record 4Q core net new assets of $163.9 billion brings total 2025 asset gathering to $519.4 billion – up 42% versus the prior year
  • New brokerage account openings exceeded 1 million for the 5th consecutive quarter, pushing active brokerage accounts and total client accounts to 38.5 million and 46.5 million, respectively
  • Managed Investing Solutions net inflows for the quarter grew 50% versus 4Q24
  • Bank loan balances equaled $58.0 billion at December month-end – up 28% year-over-year
  • Margin loan balances increased 34% versus year-end 2024 to end the quarter at $112.3 billion (2)
  • Daily average trading volume was 8.3 million – up 31% versus 4Q24
  • Announced definitive agreement to acquire Forge Global; transaction expected to close during first half 2026
  • Schwab awarded by Forbes, Best Customer Service 2026 (3)

Three Months Ended
December 31,

%

Twelve Months Ended
December 31,

%

Financial Highlights

2025

2024

Change

2025

2024

Change

Net revenues (in millions)

$

6,336

$

5,329

19

%

$

23,921

$

19,606

22

%

Net income (in millions)

GAAP

$

2,459

$

1,840

34

%

$

8,852

$

5,942

49

%

Adjusted

$

2,556

$

1,974

29

%

$

9,242

$

6,433

44

%

Diluted earnings per common share

GAAP

$

1.33

$

.94

41

%

$

4.65

$

2.99

56

%

Adjusted

$

1.39

$

1.01

38

%

$

4.87

$

3.25

50

%

Pre-tax profit margin

GAAP

50.2

%

43.3

%

47.9

%

39.2

%

Adjusted

52.2

%

46.6

%

50.0

%

42.5

%

Return on average common stockholders’ equity (annualized)

22

%

18

%

21

%

15

%

Return on tangible common equity (annualized)

39

%

36

%

38

%

35

%

Note:

Items labeled “adjusted” are non-GAAP financial measures; further details are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.

4Q25 Financial Commentary

  • Quarterly net revenues grew year-over-year by 19% to a record $6.3 billion
  • Net interest margin for the fourth quarter equaled 2.90%, or 57 basis points of expansion versus 4Q24
  • Client transactional sweep cash balances ended December at $453.7 billion, an increase of $28.1 billion versus the prior quarter-end, reflecting organic growth, client net buying activity, and year-end seasonality
  • Bank Supplemental Funding (4) declined by $9.7 billion to end the quarter at $5.1 billion
  • Asset management and administration fees grew by 15% year-over-year to $1.7 billion, powered by the firm’s organic growth, equity market appreciation, and investors’ utilization of our wealth and asset management solutions
  • Trading revenue increased 22% versus 4Q24 due to continued strong engagement
  • GAAP expenses for the quarter increased 4% year-over-year; excluding amortization of acquired intangibles of $127 million, adjusted total expenses (1) were up 6% relative to 4Q24
  • Full-year 2025 GAAP expense growth equaled 5% – 6% adjusted (1) – including higher volume-related costs as well as incremental employee compensation and benefit spend
  • Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) equaling 9.3% and 7.1%, respectively
  • Repurchased 29.2 million shares of our common stock for $2.7 billion during the quarter

(1)

Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.

(2)

Includes $9.6 billion of client margin loans related to long/short strategies implemented by RIA clients.

(3)

Forbes Best Customer Service List 2026 was given on November 11, 2025, and expires November 10, 2026. The criteria, evaluation, and ranking were determined by Forbes, partnered with HundredX. For more information, visit https://www.forbes.com/lists/best-customer-service/. Schwab paid a licensing fee to Forbes for use of the award and logos.

(4)

Bank Supplemental Funding includes repurchase agreements at the banks, Schwab Bank Certificates of Deposit (CDs), and Federal Home Loan Bank balances.

Winter Business Update

The company will host its Winter Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.

Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents.

Forward-Looking Statements

This press release contains forward-looking statements relating to the company’s growing client base, client engagement, diversified revenue model, balance sheet flexibility, return of capital, and the closing of the Forge Global acquisition. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 38.5 million active brokerage accounts, 5.7 million workplace plan participant accounts, 2.2 million banking accounts, and $11.90 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services™. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.

THE CHARLES SCHWAB CORPORATION

Consolidated Statements of Income

(In millions, except per share amounts)

(Unaudited)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2025

2024

2025

2024

Net Revenues

Interest revenue

$

4,004

$

3,851

$

15,504

$

15,537

Interest expense

(832

)

(1,320

)

(3,754

)

(6,393

)

Net interest revenue

3,172

2,531

11,750

9,144

Asset management and administration fees

1,733

1,509

6,506

5,716

Trading revenue

1,066

873

3,921

3,264

Bank deposit account fees

238

241

977

729

Other

127

175

767

753

Total net revenues

6,336

5,329

23,921

19,606

Expenses Excluding Interest

Compensation and benefits

1,630

1,533

6,491

6,043

Professional services

344

297

1,197

1,053

Occupancy and equipment

293

276

1,117

1,060

Advertising and market development

115

101

420

397

Communications

142

131

620

591

Depreciation and amortization

206

224

850

916

Amortization of acquired intangible assets

127

130

512

519

Regulatory fees and assessments

62

89

287

398

Other

237

243

968

937

Total expenses excluding interest

3,156

3,024

12,462

11,914

Income before taxes on income

3,180

2,305

11,459

7,692

Taxes on income

721

465

2,607

1,750

Net Income

2,459

1,840

8,852

5,942

Preferred stock dividends and other

92

123

435

464

Net Income Available to Common Stockholders

$

2,367

$

1,717

$

8,417

$

5,478

Weighted-Average Common Shares Outstanding:

Basic

1,772

1,831

1,804

1,828

Diluted

1,777

1,836

1,809

1,834

Earnings Per Common Shares Outstanding:

Basic

$

1.34

$

.94

$

4.67

$

3.00

Diluted

$

1.33

$

.94

$

4.65

$

2.99

THE CHARLES SCHWAB CORPORATION

Financial and Operating Highlights

(Unaudited)

Q4-25 % change

2025

2024

(In millions, except per share amounts and as noted)

vs.

vs.

Fourth

Third

Second

First

Fourth

Q4-24

Q3-25

Quarter

Quarter

Quarter

Quarter

Quarter

Net Revenues

Net interest revenue

25

%

4

%

$

3,172

$

3,050

$

2,822

$

2,706

$

2,531

Asset management and administration fees

15

%

4

%

1,733

1,673

1,570

1,530

1,509

Trading revenue

22

%

7

%

1,066

995

952

908

873

Bank deposit account fees

(1

)%

(4

)%

238

247

247

245

241

Other

(27

)%

(25

)%

127

170

260

210

175

Total net revenues

19

%

3

%

6,336

6,135

5,851

5,599

5,329

Expenses Excluding Interest

Compensation and benefits

6

%

(1

)%

1,630

1,653

1,536

1,672

1,533

Professional services

16

%

17

%

344

293

291

269

297

Occupancy and equipment

6

%

5

%

293

280

270

274

276

Advertising and market development

14

%

14

%

115

101

108

96

101

Communications

8

%

(5

)%

142

149

176

153

131

Depreciation and amortization

(8

)%

(3

)%

206

212

215

217

224

Amortization of acquired intangible assets

(2

)%

—

127

127

128

130

130

Regulatory fees and assessments

(30

)%

5

%

62

59

77

89

89

Other

(2

)%

(1

)%

237

240

247

244

243

Total expenses excluding interest

4

%

1

%

3,156

3,114

3,048

3,144

3,024

Income before taxes on income

38

%

5

%

3,180

3,021

2,803

2,455

2,305

Taxes on income

55

%

9

%

721

663

677

546

465

Net Income

34

%

4

%

2,459

2,358

2,126

1,909

1,840

Preferred stock dividends and other

(25

)%

14

%

92

81

149

113

123

Net Income Available to Common Stockholders

38

%

4

%

$

2,367

$

2,277

$

1,977

$

1,796

$

1,717

Earnings per common share:

Basic

43

%

6

%

$

1.34

$

1.26

$

1.09

$

.99

$

.94

Diluted

41

%

6

%

$

1.33

$

1.26

$

1.08

$

.99

$

.94

Dividends declared per common share

8

%

—

$

.27

$

.27

$

.27

$

.27

$

.25

Weighted-average common shares outstanding:

Basic

(3

)%

(2

)%

1,772

1,806

1,817

1,817

1,831

Diluted

(3

)%

(2

)%

1,777

1,811

1,822

1,822

1,836

Performance Measures

Pre-tax profit margin

50.2

%

49.2

%

47.9

%

43.8

%

43.3

%

Return on average common stockholders’ equity (annualized)(1)

22

%

21

%

19

%

18

%

18

%

Financial Condition (at quarter end, in billions)

Cash and cash equivalents

9

%

50

%

$

46.0

$

30.6

$

32.2

$

35.0

$

42.1

Cash and investments segregated

12

%

(10

)%

42.9

47.8

45.6

38.4

38.2

Receivables from brokers, dealers, and clearing organizations

200

%

53

%

7.2

4.7

4.3

2.9

2.4

Receivables from brokerage clients — net

23

%

12

%

104.7

93.8

82.8

84.4

85.4

Available for sale securities

(25

)%

—

62.4

62.3

67.6

74.8

83.0

Held to maturity securities

(9

)%

(2

)%

134.0

136.7

139.7

143.8

146.5

Bank loans — net

28

%

8

%

58.0

53.6

50.4

47.1

45.2

Total assets

2

%

6

%

491.0

465.3

458.9

462.9

479.8

Bank deposits

(1

)%

7

%

255.7

239.1

233.1

246.2

259.1

Payables to brokers, dealers, and clearing organizations

93

%

15

%

25.7

22.4

18.6

15.7

13.3

Payables to brokerage clients

14

%

1

%

116.3

115.4

109.4

100.6

101.6

Accrued expenses and other liabilities

4

%

12

%

12.8

11.4

10.8

11.0

12.3

Other short-term borrowings

15

%

6

%

6.9

6.5

8.5

6.9

6.0

Federal Home Loan Bank borrowings

(89

)%

111

%

1.9

0.9

9.0

11.5

16.7

Long-term debt

(1

)%

10

%

22.2

20.2

20.2

21.5

22.4

Total liabilities

2

%

6

%

441.6

415.9

409.5

413.4

431.5

Stockholders’ equity

2

%

—

49.4

49.4

49.5

49.5

48.4

Total liabilities and stockholders’ equity

2

%

6

%

491.0

465.3

458.9

462.9

479.8

Other

Full-time equivalent employees (at quarter end, in thousands)

3

%

1

%

33.0

32.7

32.6

32.1

32.1

Capital expenditures — purchases of equipment, office facilities, and property, net (in millions)

(39

)%

4

%

$

158

$

152

$

136

$

156

$

258

Expenses excluding interest as a percentage of average client assets (annualized)

0.11

%

0.11

%

0.12

%

0.12

%

0.12

%

Clients’ Daily Average Trades (DATs) (in thousands)

31

%

11

%

8,274

7,421

7,571

7,391

6,312

Number of Trading Days

—

(1

)%

63.0

63.5

62.0

60.0

63.0

Revenue Per Trade(2)

(7

)%

(3

)%

$

2.05

$

2.11

$

2.03

$

2.05

$

2.20

(1)

Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.

(2)

Revenue per trade is calculated as trading revenue divided by the product of DATs multiplied by the number of trading days.

THE CHARLES SCHWAB CORPORATION

Net Interest Revenue Information

(In millions, except ratios or as noted)

(Unaudited)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2025

2024

2025

2024

Average

Balance

Interest

Revenue/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Revenue/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Revenue/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Revenue/

Expense

Average

Yield/

Rate

Interest-earning assets

Cash and cash equivalents

$

29,491

$

292

3.88

%

$

28,332

$

334

4.61

%

$

28,054

$

1,189

4.18

%

$

29,676

$

1,539

5.10

%

Cash and investments segregated

45,114

450

3.91

%

36,510

429

4.60

%

44,359

1,862

4.14

%

28,450

1,443

4.99

%

Receivables from brokerage clients(1)

100,086

1,546

6.04

%

77,524

1,378

6.95

%

87,300

5,700

6.44

%

70,811

5,420

7.53

%

Available for sale securities(2)

66,031

340

2.05

%

92,216

486

2.09

%

74,478

1,538

2.06

%

101,659

2,166

2.12

%

Held to maturity securities(2)

134,742

575

1.70

%

147,608

638

1.72

%

139,447

2,386

1.71

%

152,566

2,636

1.72

%

Bank loans

55,677

600

4.29

%

44,248

483

4.36

%

50,595

2,168

4.28

%

42,255

1,867

4.42

%

Total interest-earning assets

431,141

3,803

3.48

%

426,438

3,748

3.46

%

424,233

14,843

3.47

%

425,417

15,071

3.51

%

Securities lending revenue

98

72

437

330

Other interest revenue(1)

103

31

224

136

Total interest-earning assets

$

431,141

$

4,004

3.66

%

$

426,438

$

3,851

3.56

%

$

424,233

$

15,504

3.62

%

$

425,417

$

15,537

3.61

%

Funding sources

Bank deposits

$

239,867

$

175

0.29

%

$

244,176

$

550

0.90

%

$

238,088

$

1,185

0.50

%

$

256,212

$

3,152

1.23

%

Payables to brokers, dealers, and clearing organizations

22,871

209

3.57

%

13,045

142

4.28

%

18,236

701

3.79

%

8,522

372

4.30

%

Payables to brokerage clients(1)

100,746

68

0.27

%

82,279

43

0.21

%

94,884

244

0.26

%

72,776

272

0.37

%

Other short-term borrowings

6,148

68

4.35

%

9,094

122

5.33

%

7,020

324

4.60

%

9,146

504

5.51

%

Federal Home Loan Bank borrowings

3,237

34

4.08

%

19,392

257

5.18

%

7,682

356

4.57

%

23,102

1,245

5.32

%

Long-term debt

21,284

211

3.88

%

22,438

206

3.67

%

21,093

836

3.91

%

23,083

846

3.66

%

Total interest-bearing liabilities

394,153

765

0.76

%

390,424

1,320

1.34

%

387,003

3,646

0.94

%

392,841

6,391

1.62

%

Non-interest-bearing funding sources

36,988

36,014

37,230

32,576

Other interest expense(1)

67

—

108

2

Total funding sources

$

431,141

$

832

0.76

%

$

426,438

$

1,320

1.23

%

$

424,233

$

3,754

0.88

%

$

425,417

$

6,393

1.49

%

Net interest revenue

$

3,172

2.90

%

$

2,531

2.33

%

$

11,750

2.74

%

$

9,144

2.12

%

(1)

Beginning in the fourth quarter of 2025, average balances of client margin loans and short credits related to certain client long/short strategies from which the Company earns a fixed net yield are excluded from interest-earning assets and funding sources. Average margin loans related to these client strategies totaled $7.2 billion and $2.8 billion for the three and twelve months ended December 31, 2025, respectively. Average short credits related to these client strategies totaled $7.4 billion and $2.8 billion for the three and twelve months ended December 31, 2025, respectively. Interest revenue and expense related to these client strategies are presented in other interest revenue and other interest expense, respectively. Year-to-date 2025 amounts and average yields have been reclassified and recalculated to reflect this change. This updated presentation results in an increase to net interest margin for the three and nine months ended September 30, 2025 of 0.02% and 0.01%, respectively, an increase of 0.01% for the three months ended June 30, 2025, and no impact to the six months ended June 30, 2025, the three months ended March 31, 2025, and prior-year amounts.

(2)

Amounts have been calculated based on amortized cost.

THE CHARLES SCHWAB CORPORATION

Asset Management and Administration Fees Information

(In millions, except ratios or as noted)

(Unaudited)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2025

2024

2025

2024

Average

Client

Assets

Revenue

Average

Fee

Average

Client

Assets

Revenue

Average

Fee

Average

Client

Assets

Revenue

Average

Fee

Average

Client

Assets

Revenue

Average

Fee

Schwab money market funds

$

681,688

$

465

0.27

%

$

580,957

$

389

0.27

%

$

652,798

$

1,783

0.27

%

$

539,113

$

1,461

0.27

%

Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs)

777,071

140

0.07

%

647,170

125

0.08

%

708,243

516

0.07

%

588,999

462

0.08

%

Mutual Fund OneSource® and other no-transaction-fee funds (NTFs)

462,417

267

0.23

%

363,024

231

0.25

%

404,065

966

0.24

%

342,615

878

0.26

%

Other third-party mutual funds and ETFs

627,846

98

0.06

%

629,913

106

0.07

%

620,042

400

0.06

%

611,999

420

0.07

%

Total mutual funds, ETFs, and CTFs(1)

$

2,549,022

$

970

0.15

%

$

2,221,064

$

851

0.15

%

$

2,385,148

$

3,665

0.15

%

$

2,082,726

$

3,221

0.15

%

Managed investing solutions(1)

Fee-based

$

695,933

$

663

0.38

%

$

582,464

$

557

0.38

%

$

633,960

$

2,440

0.38

%

$

542,253

$

2,129

0.39

%

Non-fee-based

132,573

—

—

115,712

—

—

125,333

—

—

111,571

—

—

Total managed investing solutions

$

828,506

$

663

0.32

%

$

698,176

$

557

0.32

%

$

759,293

$

2,440

0.32

%

$

653,824

$

2,129

0.33

%

Other balance-based fees(2)

965,676

85

0.03

%

827,930

76

0.04

%

893,953

318

0.04

%

776,715

286

0.04

%

Other(3)

15

25

83

80

Total asset management and administration fees

$

1,733

$

1,509

$

6,506

$

5,716

(1)

Managed investing solutions includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth Advisory™, Schwab Managed Portfolios™, Managed Account Select®, Schwab Advisor Network®, Windhaven Strategies®, ThomasPartners® Strategies, Wasmer Schroeder® Strategies, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios®, Institutional Intelligent Portfolios®, Schwab Intelligent Portfolios Premium®, Schwab Wealth Portfolios™, AdvisorDirect®, Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.

(2)

Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.

(3)

Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.

THE CHARLES SCHWAB CORPORATION

Growth in Client Assets and Accounts

(Unaudited)

Q4-25 % Change

2025

2024

(In billions, at quarter end, except as noted)

vs.

vs.

Fourth

Third

Second

First

Fourth

Q4-24

Q3-25

Quarter

Quarter

Quarter

Quarter

Quarter

Assets in client accounts

Schwab One®, certain cash equivalents, and bank deposits

6

%

6

%

$

379.5

$

357.1

$

342.7

$

345.2

$

358.8

Bank deposit account balances

(13

)%

(3

)%

76.2

78.5

82.1

83.7

87.5

Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs

Money market funds(1)

16

%

4

%

693.8

666.4

653.5

641.5

596.5

Equity and bond funds and CTFs(2)

19

%

3

%

277.4

269.7

249.7

227.0

232.2

Total proprietary mutual funds and CTFs

17

%

4

%

971.2

936.1

903.2

868.5

828.7

Mutual Fund Marketplace® (3)

Mutual Fund OneSource® and other NTF funds

31

%

(4

)%

454.2

473.5

453.9

340.3

347.8

Mutual fund clearing services

17

%

2

%

327.7

320.2

298.3

280.6

280.7

Other third-party mutual funds

5

%

3

%

1,274.3

1,237.2

1,168.5

1,195.4

1,211.1

Total Mutual Fund Marketplace

12

%

1

%

2,056.2

2,030.9

1,920.7

1,816.3

1,839.6

Total mutual fund assets

13

%

2

%

3,027.4

2,967.0

2,823.9

2,684.8

2,668.3

Exchange-traded funds

Proprietary ETFs(2)

25

%

4

%

495.3

476.0

439.7

398.2

395.0

Other third-party ETFs

30

%

6

%

2,527.5

2,395.7

2,175.6

1,960.1

1,940.6

Total ETF assets

29

%

5

%

3,022.8

2,871.7

2,615.3

2,358.3

2,335.6

Equity and other securities

19

%

2

%

4,722.6

4,624.7

4,188.7

3,765.5

3,972.6

Fixed income securities

3

%

(1

)%

786.8

792.1

788.0

775.8

762.3

Margin loans outstanding

34

%

16

%

(112.3

)

(97.2

)

(83.4

)

(83.6

)

(83.8

)

Total client assets

18

%

3

%

$

11,903.0

$

11,593.9

$

10,757.3

$

9,929.7

$

10,101.3

Client assets by business

Investor Services(4)

17

%

2

%

$

6,707.5

$

6,577.2

$

6,069.9

$

5,557.4

$

5,721.6

Advisor Services(5)

19

%

4

%

5,195.5

5,016.7

4,687.4

4,372.3

4,379.7

Total client assets

18

%

3

%

$

11,903.0

$

11,593.9

$

10,757.3

$

9,929.7

$

10,101.3

Net growth in assets in client accounts (for the quarter ended)

Net new assets by business

Investor Services(4)

31

%

15

%

$

60.4

$

52.7

$

31.2

$

69.5

$

46.2

Advisor Services(5)

57

%

20

%

97.8

81.7

42.4

62.9

62.2

Total net new assets

46

%

18

%

$

158.2

$

134.4

$

73.6

$

132.4

$

108.4

Net market gains (losses)

150.9

702.2

754.0

(304.0

)

72.4

Net growth (decline)

$

309.1

$

836.6

$

827.6

$

(171.6

)

$

180.8

New brokerage accounts (in thousands, for the quarter ended)

13

%

11

%

1,268

1,143

1,098

1,183

1,119

Client accounts (in thousands)

Active brokerage accounts

6

%

1

%

38,506

37,963

37,476

37,011

36,456

Banking accounts

11

%

3

%

2,214

2,150

2,096

2,050

1,998

Workplace Plan Participant Accounts(6)

6

%

2

%

5,740

5,619

5,586

5,495

5,399

(1)

Total client assets in purchased money market funds are located at: https://www.aboutschwab.com/investor-relations.

(2)

Includes balances held on and off the Schwab platform. As of December 31, 2025, off-platform equity and bond funds, CTFs, and ETFs were $42.6 billion, $5.0 billion, and $178.2 billion, respectively.

(3)

Excludes all proprietary mutual funds and ETFs.

(4)

Fourth quarter of 2025 includes net outflows of $5.7 billion from off-platform Schwab Bank Retail CDs. Third quarter of 2025 includes net outflows of $3.1 billion from off-platform Schwab Bank Retail CDs. Second quarter of 2025 includes net outflows of $6.7 billion from off-platform Schwab Bank Retail CDs. First quarter of 2025 includes net outflows of $5.3 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2024 includes net outflows of $5.5 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.6 billion from a large international relationship.

(5)

Fourth quarter of 2024 includes an outflow of $0.3 billion from a large international relationship.

(6)

Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.

The Charles Schwab Corporation Monthly Activity Report For December 2025

2024

2025

Change

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Mo.

Yr.

Market Indices (at month end)

Dow Jones Industrial Average®

42,544

44,545

43,841

42,002

40,669

42,270

44,095

44,131

45,545

46,398

47,563

47,716

48,063

1

%

13

%

Nasdaq Composite®

19,311

19,627

18,847

17,299

17,446

19,114

20,370

21,122

21,456

22,660

23,725

23,366

23,242

(1

)%

20

%

Standard & Poor’s® 500

5,882

6,041

5,955

5,612

5,569

5,912

6,205

6,339

6,460

6,688

6,840

6,849

6,846

—

16

%

Client Assets (in billions of dollars)

Beginning Client Assets

10,305.4

10,101.3

10,333.1

10,280.2

9,929.7

9,892.2

10,349.0

10,757.3

10,963.5

11,228.1

11,593.9

11,828.0

11,834.3

Net New Assets(1)

60.2

30.5

46.6

55.3

1.1

33.6

38.9

45.7

43.3

45.4

41.6

38.7

77.9

101

%

29

%

Net Market Gains (Losses)

(264.3

)

201.3

(99.5

)

(405.8

)

(38.6

)

423.2

369.4

160.5

221.3

320.4

192.5

(32.4

)

(9.2

)

Total Client Assets (at month end)

10,101.3

10,333.1

10,280.2

9,929.7

9,892.2

10,349.0

10,757.3

10,963.5

11,228.1

11,593.9

11,828.0

11,834.3

11,903.0

1

%

18

%

Core Net New Assets(1,2)

61.4

30.6

48.0

59.1

2.7

35.0

42.6

46.9

44.4

46.2

44.4

40.4

79.1

96

%

29

%

Receiving Ongoing Advisory Services (at month end)

Investor Services

682.0

698.7

703.5

688.8

688.2

711.2

737.6

747.9

771.1

792.5

807.6

817.9

824.8

1

%

21

%

Advisor Services

4,379.7

4,496.6

4,493.2

4,372.3

4,353.0

4,525.6

4,687.4

4,765.1

4,888.2

5,016.7

5,106.1

5,155.9

5,195.5

1

%

19

%

Client Accounts (at month end, in thousands)

Active Brokerage Accounts

36,456

36,709

36,861

37,011

37,254

37,375

37,476

37,658

37,798

37,963

38,145

38,266

38,506

1

%

6

%

Banking Accounts

1,998

2,019

2,033

2,050

2,066

2,077

2,096

2,116

2,137

2,150

2,172

2,189

2,214

1

%

11

%

Workplace Plan Participant Accounts(3)

5,399

5,450

5,464

5,495

5,518

5,563

5,586

5,619

5,606

5,619

5,696

5,730

5,740

—

6

%

Client Activity

New Brokerage Accounts (in thousands)

431

433

362

388

439

336

323

377

382

384

429

365

474

30

%

10

%

Client Cash as a Percentage of Client Assets(4)

10.1

%

9.8

%

10.0

%

10.6

%

10.5

%

10.1

%

9.9

%

9.7

%

9.5

%

9.4

%

9.3

%

9.4

%

9.7

%

30 bp

(40) bp

Derivative Trades as a Percentage of Total Trades

18.6

%

19.3

%

19.9

%

19.5

%

18.4

%

21.0

%

20.8

%

21.3

%

22.5

%

22.3

%

23.8

%

21.7

%

21.4

%

(30) bp

280 bp

Selected Average Balances (in millions of dollars)

Average Interest-Earning Assets(5)

431,177

431,367

424,572

424,912

430,402

418,749

416,486

416,714

414,415

419,818

428,281

429,080

435,995

2

%

1

%

Average Margin Balances

81,507

82,551

84,233

82,725

77,478

79,132

82,339

85,492

90,399

94,609

101,192

108,863

111,960

3

%

37

%

Average Bank Deposit Account Balances(6)

85,384

84,790

83,089

84,302

84,060

81,495

81,014

80,755

79,781

79,308

76,203

73,803

74,542

1

%

(13

)%

Mutual Funds and Exchange-Traded Funds

Net Buys (Sells)(7,8) (in millions of dollars)

Equities

14,805

10,050

4,987

(1,221

)

7,950

10,473

8,987

10,936

8,402

8,832

6,895

4,883

18,616

Hybrid

124

(1,324

)

(464

)

(603

)

(1,663

)

(287

)

(1,038

)

(463

)

(604

)

(452

)

(1,278

)

(600

)

(203

)

Bonds

10,969

8,747

12,162

11,438

(1,490

)

8,483

6,050

11,920

12,993

12,502

16,206

13,371

17,718

Net Buy (Sell) Activity (in millions of dollars)

Mutual Funds(7)

(4,331

)

(6,785

)

(3,971

)

(8,537

)

(13,955

)

(3,224

)

(5,351

)

(3,442

)

(2,217

)

(4,754

)

(6,289

)

(7,255

)

(3,625

)

Exchange-Traded Funds(8)

30,229

24,258

20,656

18,151

18,752

21,893

19,350

25,835

23,008

25,636

28,112

24,909

39,756

Money Market Funds

8,956

11,584

12,306

14,586

(6,158

)

5,794

5,814

2,452

4,319

(517

)

6,333

7,969

6,910

Note: Certain supplemental details related to the information above can be found at:https://www.aboutschwab.com/financial-reports.

(1)

Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs.

(2)

Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion beginning in 2025; $10 billion in prior periods) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.

(3)

Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.

(4)

Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank.

(5)

Represents average total interest-earning assets on the Company’s balance sheet. Beginning in December 2025, average balances of client margin loans and short credits related to certain client long/short strategies from which the Company earns a fixed net yield are excluded from average interest-earning assets. The 2025 amounts have been adjusted accordingly; December 2024 balances were not impacted.

(6)

Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.

(7)

Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to investment managers. Excludes money market fund transactions.

(8)

Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)

In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab’s fourth quarter earnings release contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide useful supplemental information about the financial performance of the Company, and facilitate meaningful comparison of Schwab’s results in the current period to both historic and future results. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may not be comparable to non-GAAP financial measures presented by other companies.

Schwab’s use of non-GAAP measures is reflective of certain adjustments made to GAAP financial measures as described below.

Non-GAAP Adjustment or Measure

Definition

Usefulness to Investors and Uses by Management

Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs

Schwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company’s acquisitions, amortization of acquired intangible assets, restructuring costs, and, where applicable, the income tax effect of these expenses.

Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company’s revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives.

We exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab’s ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods.

Costs related to acquisition and integration or restructuring fluctuate based on the timing of acquisitions, integration and restructuring activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company’s ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company’s underlying operating performance.

Return on tangible common equity

Return on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets — net, and related deferred tax liabilities.

Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab’s balance sheet.

Adjusted Tier 1 Leverage Ratio

Adjusted Tier 1 Leverage Ratio represents the Tier 1 Leverage Ratio as prescribed by bank regulatory guidance for the consolidated company and for Charles Schwab Bank, SSB (CSB), adjusted to reflect the inclusion of accumulated other comprehensive income (AOCI) in the ratio.

Inclusion of the impacts of AOCI in the Company’s Tier 1 Leverage Ratio provides additional information regarding the Company’s current capital position. We believe Adjusted Tier 1 Leverage Ratio may be useful to investors as a supplemental measure of the Company’s capital levels.

The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for employee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC’s Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective.

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)

The tables below present reconciliations of GAAP measures to non-GAAP measures:

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2025

2024

2025

2024

Total
Expenses
Excluding
Interest

Net

Income

Total
Expenses
Excluding
Interest

Net

Income

Total
Expenses
Excluding
Interest

Net

Income

Total
Expenses
Excluding
Interest

Net

Income

Total expenses excluding interest (GAAP), Net income (GAAP)

$

3,156

$

2,459

$

3,024

$

1,840

$

12,462

$

8,852

$

11,914

$

5,942

Amortization of acquired intangible assets

(127

)

127

(130

)

130

(512

)

512

(519

)

519

Acquisition and integration-related costs(1)

—

—

(20

)

20

—

—

(117

)

117

Restructuring costs(2)

—

—

(27

)

27

—

—

(9

)

9

Income tax effects(3)

N/A

(30

)

N/A

(43

)

N/A

(122

)

N/A

(154

)

Adjusted total expenses (non-GAAP), Adjusted net income (non-GAAP)

$

3,029

$

2,556

$

2,847

$

1,974

$

11,950

$

9,242

$

11,269

$

6,433

(1)

There were no acquisition and integration-related costs for the three and twelve months ended December 31, 2025. Acquisition and integration-related costs for the three and twelve months ended December 31, 2024 primarily consist of $10 million and $54 million of compensation and benefits, $4 million and $36 million of professional services, and $6 million and $19 million of depreciation and amortization.

(2)

There were no restructuring costs for the three and twelve months ended December 31, 2025. Restructuring costs for the three months ended December 31, 2024 primarily consist of $24 million of other expense. Restructuring costs for the twelve months ended December 31, 2024 reflect a benefit due to a change in estimate of $34 million in compensation and benefits, offset by $5 million of occupancy and equipment expense and $37 million of other expense.

(3)

The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non-deductible acquisition costs and are used to present the acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs on an after-tax basis.

N/A Not applicable.

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Amount

% of
Total Net
Revenues

Amount

% of
Total Net
Revenues

Amount

% of
Total Net
Revenues

Amount

% of
Total Net
Revenues

Income before taxes on income (GAAP), Pre-tax profit margin (GAAP)

$

3,180

50.2

%

$

2,305

43.3

%

$

11,459

47.9

%

$

7,692

39.2

%

Amortization of acquired intangible assets

127

2.0

%

130

2.4

%

512

2.1

%

519

2.7

%

Acquisition and integration-related costs

—

—

20

0.4

%

—

—

117

0.6

%

Restructuring costs

—

—

27

0.5

%

—

—

9

—

Adjusted income before taxes on income (non-GAAP), Adjusted pre-tax profit margin (non-GAAP)

$

3,307

52.2

%

$

2,482

46.6

%

$

11,971

50.0

%

$

8,337

42.5

%

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2025

2024

2025

2024

Amount

Diluted
EPS

Amount

Diluted
EPS

Amount

Diluted
EPS

Amount

Diluted
EPS

Net income available to common stockholders (GAAP), Earnings per common share — diluted (GAAP)

$

2,367

$

1.33

$

1,717

$

.94

$

8,417

$

4.65

$

5,478

$

2.99

Amortization of acquired intangible assets

127

.08

130

.07

512

.29

519

.28

Acquisition and integration-related costs

—

—

20

.01

—

—

117

.06

Restructuring costs

—

—

27

.01

—

—

9

—

Income tax effects

(30

)

(.02

)

(43

)

(.02

)

(122

)

(.07

)

(154

)

(.08

)

Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted EPS (non-GAAP)

$

2,464

$

1.39

$

1,851

$

1.01

$

8,807

$

4.87

$

5,969

$

3.25

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2025

2024

2025

2024

Return on average common stockholders’ equity (GAAP)

22

%

18

%

21

%

15

%

Average common stockholders’ equity

$

42,642

$

38,604

$

40,923

$

35,475

Less: Average goodwill

(11,951

)

(11,951

)

(11,951

)

(11,951

)

Less: Average acquired intangible assets — net

(7,297

)

(7,808

)

(7,488

)

(8,002

)

Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net

1,669

1,723

1,691

1,741

Average tangible common equity

$

25,063

$

20,568

$

23,175

$

17,263

Adjusted net income available to common stockholders(1)

$

2,464

$

1,851

$

8,807

$

5,969

Return on tangible common equity (non-GAAP)

39

%

36

%

38

%

35

%

(1)

See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP).

(Preliminary)

December 31, 2025

CSC

CSB

Tier 1 Leverage Ratio (GAAP)

9.3

%

11.1

%

Tier 1 Capital

$

42,888

$

28,122

Plus: AOCI adjustment

(11,017

)

(9,562

)

Adjusted Tier 1 Capital

31,871

18,560

Average assets with regulatory adjustments

462,517

252,824

Plus: AOCI adjustment

(11,333

)

(9,875

)

Adjusted average assets with regulatory adjustments

$

451,184

$

242,949

Adjusted Tier 1 Leverage Ratio (non-GAAP)

7.1

%

7.6

%

MEDIA
Mayura Hooper, 415-667-1525
public.relations@schwab.com

INVESTORS/ANALYSTS
Jeff Edwards, 817-854-6177
investor.relations@schwab.com

Source: The Charles Schwab Corporation

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