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Schwab Reports Record Quarterly Revenue and Earnings

07/21/2026

Record June Core Net New Assets Grew 47% Year-Over-Year to $62.7 Billion
2Q Net Revenues Reached a Record $7.1 Billion, Up 21% Year-Over-Year
Record GAAP Earnings Per Share of $1.54; $1.62 Adjusted(1) – up 42% versus 2Q25

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation reported net income for the second quarter totaling $2.8 billion, or earnings per share of $1.54. Excluding $170 million of pre-tax transaction-related costs, adjusted(1) net income and earnings per share equaled $2.9 billion and $1.62, respectively.

Client Driven

Growth

$120B
2Q26 Core

Net New Assets

“Schwab’s leading value proposition continued to resonate in 2Q26, as investors opened 1.4 million new brokerage accounts and brought $120 billion in core net new assets to the firm. June core asset gathering totaled a record $62.7 billion – an annualized organic growth rate of 5.8%.”
President & CEO Rick Wurster

Deepen Client Relationships

53%
2Q26 Managed Investing

Net Flows Growth

“Investors continued to engage with Schwab’s expanding set of solutions during 2Q as daily average trades reached a record 11.9 million, net flows into Schwab Wealth Advisory™ increased 80% year-over-year, and Pledged Asset Line™ balances equaled $33.4 billion – up 59% from 2Q25.”

President & CEO Rick Wurster

Diversified Revenue Growth

21%
2Q26 Revenue

Growth vs. 2Q25

“Our ability to do more for clients throughout their financial lives enables Schwab to deliver robust results across a range of environments. During the second quarter, strong client engagement helped drive year-over-year revenue growth of 21% to a record $7.1 billion.”
CFO Mike Verdeschi

Strong Earnings Momentum

43%
2Q26 GAAP EPS

Growth vs. 2Q25

“During 2Q26, the strength of Schwab’s diversified business model, our industry-leading scale, and opportunistic capital return in multiple forms combined to deliver year-over-year GAAP earnings growth of 43% to a record $1.54 per share, or $1.62 on an adjusted (1) basis.”
CFO Mike Verdeschi

2Q26 Client and Business Highlights

  • Total client assets increased 22% year-over-year to $13.08 trillion
  • Core net new assets totaled $119.8 billion, up 49% versus 2Q25
  • New brokerage account openings equaled 1.4 million, helping bring total client accounts to 48.0 million
  • Managed Investing Solutions net flows grew 53% versus 2Q25
  • Bank loan balances equaled $67.0 billion at June month-end, up 33% year-over-year
  • Margin loan balances increased 30% quarter-over-quarter to $165.1 billion at quarter-end
  • Long/short strategy interest remained strong amongst RIA clients (2), with margin loan debits and short cash credits equaling $42.1 billion and $43.7 billion, respectively, as of June 30, 2026
  • Daily average trading volume reached a record 11.9 million – up 57% versus 2Q25
  • Launched Schwab Crypto™, providing direct access to Bitcoin and Ethereum trading for retail clients
  • Introduced Portfolio Insights, a generative AI-powered capability that helps investors understand portfolio performance (3)
  • Schwab recognized as the Best Investing Platform by U.S. News for the 4 th consecutive year (4)

Three Months Ended
June 30,

%

Six Months Ended
June 30,

%

Financial Highlights

2026

2025

Change

2026

2025

Change

Net revenues (in millions)

$

7,072

$

5,851

21

%

$

13,554

$

11,450

18

%

Net income (in millions)

GAAP

$

2,800

$

2,126

32

%

$

5,279

$

4,035

31

%

Adjusted

$

2,930

$

2,222

32

%

$

5,518

$

4,230

30

%

Diluted earnings per common share

GAAP

$

1.54

$

1.08

43

%

$

2.91

$

2.07

41

%

Adjusted

$

1.62

$

1.14

42

%

$

3.05

$

2.17

41

%

Pre-tax profit margin

GAAP

51.9

%

47.9

%

50.6

%

45.9

%

Adjusted

54.3

%

50.1

%

52.9

%

48.2

%

Return on average common stockholders’ equity (annualized)

25

%

19

%

23

%

18

%

Return on tangible common equity (annualized)

44

%

35

%

41

%

34

%

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.

2Q26 Financial Commentary

  • Quarterly net revenues grew year-over-year by 21% to a record $7.1 billion
  • Net interest margin for the quarter expanded 12 basis points quarter-over-quarter to 3.00%
  • Client transactional sweep cash balances ended June at $485.7 billion, an increase of $24.2 billion versus the prior quarter-end, reflecting typical 2Q tax seasonality, organic growth, and client asset allocation decisions
  • Average interest-earning assets for the quarter equaled $445.0 billion, up 5% versus 2Q25
  • Asset management and administration fees grew by 16% year-over-year to $1.8 billion, powered by the firm’s organic growth and investors’ increased utilization of our wealth and asset management solutions
  • Record client trading activity drove trading revenue of $1.2 billion, up 28% year-over-year
  • GAAP expenses for the quarter increased 12% year-over-year; excluding acquisition and integration-related costs and the amortization of acquired intangibles of $170 million, adjusted total expenses (1) were up 11% relative to 2Q25
  • Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) equaling 8.7% and 6.8%, respectively
  • Redeemed $2.1 billion Series I Preferred Stock and issued $1.5 billion Series L Preferred Stock
  • Repurchased 11.2 million shares of our common stock for $1.0 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)

Client margin loans and short credits related to certain long/short strategies utilized by RIAs are excluded from interest-earning assets and company funding sources.

(3)

Portfolio Insights (Insights) is a generative artificial intelligence feature designed to provide: (1) a narrative snapshot of a client’s Portfolio’s Day Change performance as of now versus the prior trading day’s close; (2) a recap of recent news about the top S&P 500® equity movers (up to five securities) most affecting the value of a client’s portfolio; and (3) snippets of the day’s Schwab Center for Financial Research and other Schwab expert content related to a client’s portfolio. The summaries can be refreshed throughout the day. Insights into specific securities are not necessarily representative of a client’s portfolio. The securities referenced to prepare each Insight vary and certain asset types are excluded. Insights should not be construed as investment advice or recommendations and are for informational and educational purposes only. Generative AI output may be inaccurate, containing hallucinated, stale, or incomplete information. Clients should consult their Account Statement(s) for complete account information. For more information about Schwab Portfolio Insights, please visit https://www.schwab.com/legal/portfolio-insights-disclosure.

(4)

U.S. News & World Report’s Best Investing Platforms awards were given on 04/16/2026. The criteria, evaluation, and ranking were determined by U.S. News & World Report. See https://money.usnews.com/investing/best-brokers/methodology for more information. Schwab paid a licensing fee to U.S. News & World Report for use of the award and logos.

Summer Business Update

The company will host its Summer 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 diversified business model, scale, solutions, client engagement, and capital return. 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 39.8 million active brokerage accounts, 5.9 million workplace plan participant accounts, 2.4 million banking accounts, and $13.08 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
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net Revenues

Interest revenue

$

4,432

$

3,787

$

8,394

$

7,544

Interest expense

(1,075

)

(965

)

(1,893

)

(2,016

)

Net interest revenue

3,357

2,822

6,501

5,528

Asset management and administration fees

1,825

1,570

3,584

3,100

Trading revenue

1,215

952

2,304

1,860

Bank deposit account fees

333

247

628

492

Other

342

260

537

470

Total net revenues

7,072

5,851

13,554

11,450

Expenses Excluding Interest

Compensation and benefits

1,790

1,536

3,602

3,208

Professional services

307

291

610

560

Occupancy and equipment

301

270

586

544

Advertising and market development

111

108

212

204

Communications

198

176

361

329

Depreciation and amortization

198

215

399

432

Amortization of acquired intangible assets

142

128

274

258

Regulatory fees and assessments

63

77

138

166

Other

293

247

515

491

Total expenses excluding interest

3,403

3,048

6,697

6,192

Income before taxes on income

3,669

2,803

6,857

5,258

Taxes on income

869

677

1,578

1,223

Net Income

2,800

2,126

5,279

4,035

Preferred stock dividends and other

119

149

201

262

Net Income Available to Common Stockholders

$

2,681

$

1,977

$

5,078

$

3,773

Weighted-Average Common Shares Outstanding:

Basic

1,735

1,817

1,740

1,819

Diluted

1,739

1,822

1,745

1,825

Earnings Per Common Shares Outstanding:

Basic

$

1.55

$

1.09

$

2.92

$

2.07

Diluted

$

1.54

$

1.08

$

2.91

$

2.07

THE CHARLES SCHWAB CORPORATION

Financial and Operating Highlights

(Unaudited)

Q2-26 % change

2026

2025

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

vs.

vs.

Second

First

Fourth

Third

Second

Q2-25

Q1-26

Quarter

Quarter

Quarter

Quarter

Quarter

Net Revenues

Net interest revenue

19

%

7

%

$

3,357

$

3,144

$

3,172

$

3,050

$

2,822

Asset management and administration fees

16

%

4

%

1,825

1,759

1,733

1,673

1,570

Trading revenue

28

%

12

%

1,215

1,089

1,066

995

952

Bank deposit account fees

35

%

13

%

333

295

238

247

247

Other

32

%

75

%

342

195

127

170

260

Total net revenues

21

%

9

%

7,072

6,482

6,336

6,135

5,851

Expenses Excluding Interest

Compensation and benefits

17

%

(1

)%

1,790

1,812

1,630

1,653

1,536

Professional services

5

%

1

%

307

303

344

293

291

Occupancy and equipment

11

%

6

%

301

285

293

280

270

Advertising and market development

3

%

10

%

111

101

115

101

108

Communications

13

%

21

%

198

163

142

149

176

Depreciation and amortization

(8

)%

(1

)%

198

201

206

212

215

Amortization of acquired intangible assets

11

%

8

%

142

132

127

127

128

Regulatory fees and assessments

(18

)%

(16

)%

63

75

62

59

77

Other

19

%

32

%

293

222

237

240

247

Total expenses excluding interest

12

%

3

%

3,403

3,294

3,156

3,114

3,048

Income before taxes on income

31

%

15

%

3,669

3,188

3,180

3,021

2,803

Taxes on income

28

%

23

%

869

709

721

663

677

Net Income

32

%

13

%

2,800

2,479

2,459

2,358

2,126

Preferred stock dividends and other

(20

)%

45

%

119

82

92

81

149

Net Income Available to Common Stockholders

36

%

12

%

$

2,681

$

2,397

$

2,367

$

2,277

$

1,977

Earnings per common share:

Basic

42

%

13

%

$

1.55

$

1.37

$

1.34

$

1.26

$

1.09

Diluted

43

%

12

%

$

1.54

$

1.37

$

1.33

$

1.26

$

1.08

Dividends declared per common share

19

%

—

$

.32

$

.32

$

.27

$

.27

$

.27

Weighted-average common shares outstanding:

Basic

(5

)%

(1

)%

1,735

1,746

1,772

1,806

1,817

Diluted

(5

)%

(1

)%

1,739

1,752

1,777

1,811

1,822

Performance Measures

Pre-tax profit margin

51.9

%

49.2

%

50.2

%

49.2

%

47.9

%

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

25

%

23

%

22

%

21

%

19

%

Financial Condition (at quarter end, in billions)

Cash and cash equivalents

26

%

(10

)%

$

40.6

$

45.0

$

46.0

$

30.6

$

32.2

Cash and investments segregated

(28

)%

(17

)%

33.0

39.8

42.9

47.8

45.6

Receivables from brokers, dealers, and clearing organizations

N/M

86

%

22.0

11.8

7.2

4.7

4.3

Receivables from brokerage clients — net

48

%

16

%

122.8

106.2

104.7

93.8

82.8

Available for sale securities

(8

)%

2

%

62.5

61.1

62.4

62.3

67.6

Held to maturity securities

(7

)%

(1

)%

130.6

131.7

134.0

136.7

139.7

Bank loans — net

33

%

10

%

67.0

60.9

58.0

53.6

50.4

Total assets

13

%

5

%

517.3

493.3

491.0

465.3

458.9

Bank deposits

7

%

(1

)%

249.7

253.0

255.7

239.1

233.1

Payables to brokers, dealers, and clearing organizations

135

%

56

%

43.8

28.1

25.7

22.4

18.6

Payables to brokerage clients

13

%

5

%

124.0

118.0

116.3

115.4

109.4

Accrued expenses and other liabilities

16

%

4

%

12.5

12.0

12.8

11.4

10.8

Other short-term borrowings

64

%

11

%

13.9

12.5

6.9

6.5

8.5

Federal Home Loan Bank borrowings

(94

)%

N/M

0.5

—

1.9

0.9

9.0

Long-term debt

12

%

11

%

22.7

20.5

22.2

20.2

20.2

Total liabilities

14

%

5

%

467.1

444.1

441.6

415.9

409.5

Stockholders’ equity

1

%

2

%

50.1

49.2

49.4

49.4

49.5

Total liabilities and stockholders’ equity

13

%

5

%

517.3

493.3

491.0

465.3

458.9

Other

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

3

%

1

%

33.7

33.5

33.0

32.7

32.6

Capital expenditures — purchases of equipment, office facilities, and property, net (in millions)(2)

N/M

N/M

$

792

$

173

$

158

$

152

$

136

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

0.11

%

0.11

%

0.11

%

0.11

%

0.12

%

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

57

%

20

%

11,920

9,899

8,274

7,421

7,571

Number of Trading Days

—

2

%

62.0

61.0

63.0

63.5

62.0

Revenue Per Trade(3)

(19

)%

(9

)%

$

1.64

$

1.80

$

2.05

$

2.11

$

2.03

(1)

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

(2)

Second quarter of 2026 includes incremental capital expenditures of $633 million related to a multi-year software license agreement with a corresponding liability recognized in long-term debt.

(3)

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

N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.

THE CHARLES SCHWAB CORPORATION

Net Interest Revenue Information

(In millions, except ratios or as noted)

(Unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

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

$

30,707

$

278

3.58

%

$

28,000

$

305

4.30

%

$

31,587

$

566

3.57

%

$

29,236

$

633

4.30

%

Cash and investments segregated

41,326

374

3.58

%

47,574

506

4.20

%

42,629

771

3.60

%

43,117

918

4.23

%

Receivables from brokerage clients(1)

112,136

1,609

5.68

%

78,732

1,321

6.64

%

108,349

3,108

5.71

%

80,805

2,700

6.64

%

Available for sale securities(2)

65,864

358

2.17

%

77,750

405

2.08

%

65,561

684

2.09

%

81,151

838

2.06

%

Held to maturity securities(2)

131,126

570

1.73

%

141,098

602

1.70

%

131,656

1,137

1.73

%

142,740

1,224

1.71

%

Bank loans

63,823

693

4.35

%

48,691

518

4.27

%

61,567

1,320

4.31

%

47,374

1,011

4.29

%

Total interest-earning assets

444,982

3,882

3.47

%

421,845

3,657

3.45

%

441,349

7,586

3.43

%

424,423

7,324

3.44

%

Securities lending revenue

178

96

269

156

Other interest revenue(1)

372

34

539

64

Total interest-earning assets

$

444,982

$

4,432

3.96

%

$

421,845

$

3,787

3.57

%

$

441,349

$

8,394

3.79

%

$

424,423

$

7,544

3.54

%

Funding sources

Bank deposits

$

246,346

$

114

0.19

%

$

237,645

$

326

0.55

%

$

244,522

$

232

0.19

%

$

241,660

$

762

0.64

%

Payables to brokers, dealers, and clearing

organizations

31,693

276

3.45

%

16,657

167

3.97

%

28,617

493

3.43

%

15,424

304

3.93

%

Payables to brokerage clients(1)

108,840

59

0.22

%

92,425

60

0.26

%

106,978

115

0.22

%

91,305

109

0.24

%

Other short-term borrowings

11,082

111

3.98

%

7,644

87

4.55

%

10,098

203

4.02

%

7,172

169

4.74

%

Federal Home Loan Bank borrowings

126

1

3.79

%

9,753

110

4.48

%

699

13

3.85

%

10,236

243

4.72

%

Long-term debt

21,324

228

4.23

%

20,624

206

3.94

%

21,512

429

3.97

%

21,448

418

3.87

%

Total interest-bearing liabilities

419,411

789

0.75

%

384,748

956

0.99

%

412,426

1,485

0.72

%

387,245

2,005

1.04

%

Non-interest-bearing funding sources

25,571

37,097

28,923

37,178

Other interest expense(1)

286

9

408

11

Total funding sources

$

444,982

$

1,075

0.96

%

$

421,845

$

965

0.91

%

$

441,349

$

1,893

0.85

%

$

424,423

$

2,016

0.95

%

Net interest revenue

$

3,357

3.00

%

$

2,822

2.66

%

$

6,501

2.94

%

$

5,528

2.59

%

(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. Prior period amounts and average yields have been reclassified and recalculated to reflect this change. Average margin loans related to these client strategies totaled $33.1 billion and $23.7 billion for the three and six months ended June 30, 2026, respectively, compared to $884 million and $562 million for the same periods in 2025. Average short credits related to these client strategies totaled $34.3 billion and $24.5 billion for the three and six months ended June 30, 2026, respectively, compared to $898 million and $569 million for the same periods in 2025. Interest revenue and expense related to these client strategies are presented in other interest revenue and other interest expense, respectively.

(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
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

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

$

692,896

$

473

0.27

%

$

644,811

$

442

0.27

%

$

694,727

$

941

0.27

%

$

633,143

$

860

0.27

%

Schwab equity and bond funds, exchange-traded

funds (ETFs), and collective trust funds (CTFs)

882,538

157

0.07

%

661,793

122

0.07

%

850,427

303

0.07

%

660,191

244

0.07

%

Mutual Fund OneSource ® and other no-

transaction-fee funds (NTFs)

484,076

273

0.23

%

350,487

218

0.25

%

476,089

535

0.23

%

355,092

440

0.25

%

Other third-party mutual funds, ETFs, and

alternatives(1)

677,708

117

0.07

%

623,167

116

0.07

%

671,797

232

0.07

%

633,008

232

0.07

%

Total mutual funds, ETFs, CTFs, and

alternatives(1,2)

$

2,737,218

$

1,020

0.15

%

$

2,280,258

$

898

0.16

%

$

2,693,040

$

2,011

0.15

%

$

2,281,434

$

1,776

0.16

%

Managed investing solutions(2)

Fee-based

$

763,716

$

707

0.37

%

$

595,203

$

589

0.40

%

$

745,799

$

1,381

0.37

%

$

592,843

$

1,158

0.39

%

Non-fee-based

159,255

—

—

120,726

—

—

152,442

—

—

120,584

—

—

Total managed investing solutions

$

922,971

$

707

0.31

%

$

715,929

$

589

0.33

%

$

898,241

$

1,381

0.31

%

$

713,427

$

1,158

0.33

%

Other balance-based fees(1,3)

991,946

70

0.03

%

826,894

61

0.03

%

977,724

139

0.03

%

824,621

125

0.03

%

Other(4)

28

22

53

41

Total asset management and administration fees

$

1,825

$

1,570

$

3,584

$

3,100

(1)

Beginning in the first quarter of 2026, alternative investments and related revenue were moved from other balance-based fees to other third-party mutual funds, ETFs, and alternatives. Prior period amounts and average fees have been reclassified and recalculated to reflect this change.

(2)

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.

(3)

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

(4)

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

THE CHARLES SCHWAB CORPORATION

Growth in Client Assets and Accounts

(Unaudited)

Q2-26 % Change

2026

2025

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

vs.

vs.

Second

First

Fourth

Third

Second

Q2-25

Q1-26

Quarter

Quarter

Quarter

Quarter

Quarter

Assets in client accounts

Schwab One®, certain cash equivalents, and bank deposits

21

%

6

%

$

415.4

$

390.5

$

379.5

$

357.1

$

342.7

Bank deposit account balances

(14

)%

(4

)%

70.6

73.5

76.2

78.5

82.1

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

Money market funds

6

%

(1

)%

690.5

700.8

693.8

666.4

653.5

Equity and bond funds and CTFs(1)

25

%

14

%

311.2

271.8

277.4

269.7

249.7

Total proprietary mutual funds and CTFs

11

%

3

%

1,001.7

972.6

971.2

936.1

903.2

Mutual Fund Marketplace® (2)

Mutual Fund OneSource® and other NTF funds

7

%

10

%

485.7

443.3

454.2

473.5

453.9

Mutual fund clearing services

12

%

7

%

334.3

311.1

327.7

320.2

298.3

Other third-party mutual funds

17

%

8

%

1,366.0

1,263.7

1,274.3

1,237.2

1,168.5

Total Mutual Fund Marketplace

14

%

8

%

2,186.0

2,018.1

2,056.2

2,030.9

1,920.7

Total mutual fund assets

13

%

7

%

3,187.7

2,990.7

3,027.4

2,967.0

2,823.9

Exchange-traded funds

Proprietary ETFs(1)

33

%

14

%

583.7

512.6

495.3

476.0

439.7

Other third-party ETFs

36

%

15

%

2,959.7

2,579.8

2,527.5

2,395.7

2,175.6

Total ETF assets

35

%

15

%

3,543.4

3,092.4

3,022.8

2,871.7

2,615.3

Equity and other securities

25

%

14

%

5,228.4

4,566.9

4,722.6

4,624.7

4,188.7

Fixed income securities

2

%

3

%

804.5

780.6

786.8

792.1

788.0

Margin loans outstanding

98

%

30

%

(165.1

)

(126.7

)

(112.3

)

(97.2

)

(83.4

)

Total client assets

22

%

11

%

$

13,084.9

$

11,767.9

$

11,903.0

$

11,593.9

$

10,757.3

Client assets by business

Investor Services(3)

21

%

12

%

$

7,343.0

$

6,566.4

$

6,707.5

$

6,577.2

$

6,069.9

Advisor Services

22

%

10

%

5,741.9

5,201.5

5,195.5

5,016.7

4,687.4

Total client assets

22

%

11

%

$

13,084.9

$

11,767.9

$

11,903.0

$

11,593.9

$

10,757.3

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

Net new assets by business

Investor Services(3)

23

%

(29

)%

$

38.5

$

54.1

$

60.4

$

52.7

$

31.2

Advisor Services

89

%

(7

)%

80.2

85.8

97.8

81.7

42.4

Total net new assets

61

%

(15

)%

$

118.7

$

139.9

$

158.2

$

134.4

$

73.6

Net market gains (losses)

1,198.3

(275.0

)

150.9

702.2

754.0

Net growth (decline)

$

1,317.0

$

(135.1

)

$

309.1

$

836.6

$

827.6

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

26

%

7

%

1,388

1,299

1,268

1,143

1,098

Client accounts (in thousands)

Active brokerage accounts

6

%

2

%

39,802

39,099

38,506

37,963

37,476

Banking accounts

12

%

3

%

2,352

2,281

2,214

2,150

2,096

Workplace Plan Participant Accounts(4)

5

%

1

%

5,888

5,844

5,740

5,619

5,586

(1)

Includes balances held on and off the Schwab platform. As of June 30, 2026, off-platform equity and bond funds, CTFs, and ETFs were $53.8 billion, $5.0 billion, and $208.5 billion, respectively.

(2)

Excludes all proprietary mutual funds and ETFs.

(3)

Second quarter of 2026 includes net outflows of $1.1 billion from off-platform Schwab Bank Retail CDs. First quarter of 2026 includes net outflows of $0.1 billion from off-platform Schwab Bank Retail CDs. 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.

(4)

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 June 2026

2025

2026

Change

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Mo.

Yr.

Number of Trading Days

20.0

21.5

21.0

21.0

23.0

18.5

21.5

20.0

19.0

22.0

21.0

20.0

21.0

Market Indices (at month end)

Dow Jones Industrial Average®

44,095

44,131

45,545

46,398

47,563

47,716

48,063

48,892

48,978

46,342

49,652

51,032

52,319

3%

19%

Nasdaq Composite®

20,370

21,122

21,456

22,660

23,725

23,366

23,242

23,462

22,668

21,591

24,892

26,973

26,214

(3)%

29%

Standard & Poor’s® 500

6,205

6,339

6,460

6,688

6,840

6,849

6,846

6,939

6,879

6,529

7,209

7,580

7,499

(1)%

21%

Client Assets (in billions of dollars)

Beginning Client Assets

10,349.0

10,757.3

10,963.5

11,228.1

11,593.9

11,828.0

11,834.3

11,903.0

12,148.5

12,220.3

11,767.9

12,605.3

13,135.3

Net New Assets(1)

38.9

45.7

43.3

45.4

41.6

38.7

77.9

27.6

32.5

79.8

6.7

49.9

62.1

24%

60%

Net Market Gains (Losses)

369.4

160.5

221.3

320.4

192.5

(32.4

)

(9.2

)

217.9

39.3

(532.2

)

830.7

480.1

(112.5

)

Total Client Assets (at month end)

10,757.3

10,963.5

11,228.1

11,593.9

11,828.0

11,834.3

11,903.0

12,148.5

12,220.3

11,767.9

12,605.3

13,135.3

13,084.9

—

22%

Core Net New Assets(1,2)

42.6

46.9

44.4

46.2

44.4

40.4

79.1

27.8

32.5

79.7

7.2

49.9

62.7

26%

47%

Receiving Ongoing Advisory Services (at month end)

Investor Services

737.6

747.9

771.1

792.5

807.6

817.9

824.8

849.5

866.8

841.3

895.0

925.8

929.8

—

26%

Advisor Services

4,687.4

4,765.1

4,888.2

5,016.7

5,106.1

5,155.9

5,195.5

5,311.7

5,394.3

5,201.5

5,525.7

5,716.0

5,741.9

—

22%

Client Accounts (at month end, in thousands)

Active Brokerage Accounts

37,476

37,658

37,798

37,963

38,145

38,266

38,506

38,730

38,925

39,099

39,300

39,536

39,802

1%

6%

Banking Accounts

2,096

2,116

2,137

2,150

2,172

2,189

2,214

2,239

2,258

2,281

2,305

2,329

2,352

1%

12%

Workplace Plan Participant Accounts(3)

5,586

5,619

5,606

5,619

5,696

5,730

5,740

5,793

5,829

5,844

5,864

5,886

5,888

—

5%

Client Activity

New Brokerage Accounts (in thousands)

323

377

382

384

429

365

474

476

395

428

437

461

490

6%

52%

Client Daily Average Trades (DATs) (in

thousands)

7,147

7,252

7,182

7,832

8,617

8,459

7,746

9,512

9,922

10,232

10,328

11,813

13,615

15%

90%

Derivative Trades as a Percentage of Total

Trades

20.8

%

21.3

%

22.5

%

22.3

%

23.8

%

21.7

%

21.4

%

20.1

%

20.1

%

20.4

%

21.4

%

19.8

%

17.7

%

(210) bp

(310) bp

Margin Balances at month end (in billions of

dollars)(4)

83.4

88.3

92.4

97.2

105.6

110.1

112.3

116.3

120.6

126.7

136.0

154.6

165.1

7%

98%

Schwab Trading Activity Index™ (STAX)(5)

40.7

41.8

43.7

46.1

48.1

48.8

48.5

50.0

57.3

56.0

50.1

55.1

59.1

7%

45%

Selected Balances (in billions of dollars)

Average Interest-Earning Assets(6)

416.5

416.7

414.4

419.8

428.3

429.1

436.0

441.7

434.2

436.8

444.6

442.0

448.4

1%

8%

Transactional Sweep Cash(4,7) (at month end)

412.1

407.5

406.7

425.6

428.8

427.5

453.7

433.3

436.1

461.5

467.6

472.4

485.7

3%

18%

Total Money Market Funds (at month end)

653.9

658.6

665.2

667.0

675.5

685.9

694.5

693.4

696.2

702.2

688.1

694.6

691.9

—

6%

Client Cash as a Percentage of Client Assets(8)

9.9

%

9.7

%

9.5

%

9.4

%

9.3

%

9.4

%

9.7

%

9.3

%

9.3

%

9.9

%

9.2

%

8.9

%

9.0

%

10 bp

(90) bp

Net Buy (Sell) Activity (in billions of dollars)(9)

Mutual Funds

(5.4

)

(3.4

)

(2.2

)

(4.8

)

(6.3

)

(7.3

)

(3.6

)

(0.9

)

(2.4

)

(8.5

)

(5.7

)

(7.4

)

(10.4

)

Exchange-Traded Funds (ETFs)

19.4

25.8

23.0

25.6

28.1

24.9

39.8

34.8

37.4

25.3

27.4

34.2

32.0

(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) 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)

Balances include margin loans and short credits related to certain long/short strategies from which the Company earns a fixed net yield. For the month of June 2026, margin loans totaled $42.1 billion and short credits totaled $43.7 billion.

(5)

For additional information regarding STAX, please visit: https://www.schwab.com/investment-research/stax/view-schwab-trading-activity-index.

(6)

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. Prior period amounts have been adjusted accordingly.

(7)

Transactional sweep cash includes bank sweep deposits, broker-dealer cash balances, other client cash held on the balance sheet (such as bank checking and savings deposits, short credits related to certain client long/short strategies, and broker-dealer non-interest-bearing credits), and bank deposit account balances; excludes proprietary and third-party CDs.

(8)

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.

(9)

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

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 second 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 June 30,

Six Months Ended June 30,

2026

2025

2026

2025

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)

$

3,403

$

2,800

$

3,048

$

2,126

$

6,697

$

5,279

$

6,192

$

4,035

Amortization of acquired intangible assets

(142

)

142

(128

)

128

(274

)

274

(258

)

258

Acquisition and integration-related costs(1)

(28

)

28

—

—

(39

)

39

—

—

Income tax effects(2)

N/A

(40

)

N/A

(32

)

N/A

(74

)

N/A

(63

)

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

$

3,233

$

2,930

$

2,920

$

2,222

$

6,384

$

5,518

$

5,934

$

4,230

(1)

Acquisition and integration-related costs for the three months ended June 30, 2026 primarily consist of compensation and benefits. Acquisition and integration-related costs for the six months ended June 30, 2026 consist of $26 million of compensation and benefits and $13 million of professional services. There were no acquisition and integration-related costs for the three and six months ended June 30, 2025.

(2)

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 June 30,

Six Months Ended June 30,

2026

2025

2026

2025

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)

$

3,669

51.9

%

$

2,803

47.9

%

$

6,857

50.6

%

$

5,258

45.9

%

Amortization of acquired intangible assets

142

2.0

%

128

2.2

%

274

2.0

%

258

2.3

%

Acquisition and integration-related costs

28

0.4

%

—

—

39

0.3

%

—

—

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

$

3,839

54.3

%

$

2,931

50.1

%

$

7,170

52.9

%

$

5,516

48.2

%

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

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)

$

2,681

$

1.54

$

1,977

$

1.08

$

5,078

$

2.91

$

3,773

$

2.07

Amortization of acquired intangible assets

142

.08

128

.07

274

.16

258

.14

Acquisition and integration-related costs

28

.02

—

—

39

.02

—

—

Income tax effects

(40

)

(.02

)

(32

)

(.01

)

(74

)

(.04

)

(63

)

(.04

)

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

$

2,811

$

1.62

$

2,073

$

1.14

$

5,317

$

3.05

$

3,968

$

2.17

THE CHARLES SCHWAB CORPORATION

Non-GAAP Financial Measures

(In millions, except ratios and per share amounts)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Return on average common stockholders’ equity — annualized (GAAP)

25

%

19

%

23

%

18

%

Average common stockholders’ equity

$

43,203

$

41,504

$

43,298

$

40,936

Less: Average goodwill

(12,294

)

(11,951

)

(12,121

)

(11,951

)

Less: Average acquired intangible assets — net

(7,348

)

(7,551

)

(7,258

)

(7,615

)

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

1,742

1,710

1,714

1,716

Average tangible common equity

$

25,303

$

23,712

$

25,633

$

23,086

Adjusted net income available to common stockholders(1)

$

2,811

$

2,073

$

5,317

$

3,968

Return on tangible common equity — annualized (non-GAAP)

44

%

35

%

41

%

34

%

(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)

June 30, 2026

CSC

CSB

Tier 1 Leverage Ratio (GAAP)

8.7

%

10.7

%

Tier 1 Capital

$

42,751

$

27,085

Plus: AOCI adjustment

(10,225

)

(8,899

)

Adjusted Tier 1 Capital

32,526

18,186

Average assets with regulatory adjustments

489,718

254,224

Plus: AOCI adjustment

(10,249

)

(9,022

)

Adjusted average assets with regulatory adjustments

$

479,469

$

245,202

Adjusted Tier 1 Leverage Ratio (non-GAAP)

6.8

%

7.4

%

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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