Schwab Reports Record 4Q and Full Year 2025 Results
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
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
(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
(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.
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
%