greeksoup/ stock research
Stock research / United States / SCHW / FY2025

Charles Schwab (SCHW) FY2025 results: revenue $23.9 billion, up 22.0% on the year

Charles Schwab Corp. (SCHW) reported revenue of $23.9 billion for fiscal 2025, the year ended 31 December 2025, up 22.0% on the year before. Net income was $8.9 billion, up 49.0%, and diluted earnings per share $4.65. The figures are the company's own, from the 10-K it filed with the SEC on 25 February 2026.

Revenue
$23.9 billion
+22.0% on the year
FY2018FY2025
Operating margin
n/a
FY2018FY2025
Net income
$8.9 billion
+49.0% on the year
FY2018FY2025
Diluted EPS
$4.65
+55.5% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

  • Quarterly revenue grew 19%: Quarterly net revenues grew 19% year over year to $6.3 billion.
  • Quarterly EPS rose 38% adjusted: Diluted EPS was $1.33 GAAP and $1.39 adjusted; adjusted EPS rose 38% from 4Q24.
  • Advisor Services drew most inflows: Advisor Services net new assets were $97.8 billion in the quarter, against $60.4 billion for Investor Services.
  • Net interest margin up 57bp: Net interest margin was 2.90% for the quarter, 57 basis points above 4Q24.
  • Quarterly expenses up 4%, adjusted 6%: GAAP expenses rose 4% year over year; adjusted expenses, which exclude $127 million of amortization of acquired intangibles, rose 6%.
Read the Q4 FY2025 earnings call summary

From this 10-K

The Charles Schwab Corporation is a savings and loan holding company whose subsidiaries do wealth management, securities brokerage, banking, asset management, custody and financial advisory work. At 31 December 2025 it held $11.90 trillion in client assets, 38.5 million active brokerage accounts, 5.7 million workplace plan participant accounts and 2.2 million banking accounts. Its principal business subsidiaries are Charles Schwab & Co., a securities broker-dealer incorporated in 1971; Charles Schwab Bank, SSB, the principal banking entity; and Charles Schwab Investment Management, the investment advisor for the Schwab Funds and the Schwab ETFs.

Charles Schwab Corp., the 10-K for 2025

The Charles Schwab Corporation is a savings and loan holding company whose subsidiaries do wealth management, securities brokerage, banking, asset management, custody and financial advisory work. At 31 December 2025 it held $11.90 trillion in client assets, 38.5 million active brokerage accounts, 5.7 million workplace plan participant accounts and 2.2 million banking accounts. Its principal business subsidiaries are Charles Schwab & Co., a securities broker-dealer incorporated in 1971; Charles Schwab Bank, SSB, the principal banking entity; and Charles Schwab Investment Management, the investment advisor for the Schwab Funds and the Schwab ETFs.

The business is reported in two segments. Investor Services provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan and business services and other corporate brokerage services to businesses and their employees. Advisor Services provides custodial, trading, banking and trust, and support services to independent registered investment advisors, independent retirement advisors and recordkeepers.

What it sells

Brokerage accounts carry equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities including money market funds and certificates of deposit. Third-party mutual funds are sold through the Mutual Fund Marketplace, which includes no-transaction-fee funds through Mutual Fund OneSource, and Schwab also provides mutual fund trading and clearing services to other broker-dealers. It offers both proprietary and third-party ETFs, managed portfolios of mutual funds and ETFs, separately managed accounts, and access to third-party alternative investments such as private equity and real estate through Schwab Alternative Investment OneSource and Alternative Investment Select.

On digital assets it offers cryptocurrency exchange-traded products, options on select cryptocurrency ETPs and cryptocurrency futures, and the filing says expanded access to select cryptocurrencies is expected to be offered to clients beginning in 2026. The banking products are checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit and pledged asset lines.

On 6 November 2025 Schwab announced an agreement to acquire Forge Global Holdings, an operator of a private market platform and trading marketplace, in a transaction valued at approximately $660 million, which it states is expected to close in March 2026 subject to regulatory approvals.

Investor Services

The segment is built from the Retail Investor unit; Workplace Services, which covers Retirement Plan Services, Retirement Business Services, Stock Plan Services and Designated Brokerage Services; Mutual Fund Clearing Services; and Off-Platform Sales. The Retail Investor unit serves individual investors from those just beginning through to clients with complex wealth management needs, with Schwab Stock Slices and the Schwab Starter Kit at the entry end and service delivered online, by mobile, by telephone and through branches.

Schwab Private Client Services covers clients with $1 million to $10 million in qualifying assets and Schwab Private Wealth Services those with more than $10 million. Self-directed clients get trading platforms, real-time market data and research tools, and can trade equities, mutual funds, ETFs, fixed income, options, futures and forex, with Schwab Trading Powered by Ameritrade giving access to the thinkorswim suite.

Advisor Services

The company says it has become one of the largest providers of custodial, trading, banking and support services to RIAs and their clients, a business it traces to supporting a small group of advisors who created independent firms more than thirty years ago. RIAs who custody client accounts at Schwab may use proprietary software giving them client account information and trading capabilities, and the Advisor Services website is the platform for account opening, money movement, transfer of assets, trading and communicating with the service team.

How it gets paid

The largest sources of net revenues are net interest revenue, asset management and administration fees, trading revenue and bank deposit account fees. Net interest revenue is the difference between interest generated on interest-earning assets and interest paid on funding sources, the primary funding source being uninvested client cash balances and the interest-earning assets being mainly fixed income securities, margin loans and bank loans. Asset management and administration fees come mainly from proprietary money market mutual funds, proprietary and third-party mutual funds and ETFs, and fee-based managed investing solutions. Trading revenue is commissions for executing client trades, order flow revenue, and principal transactions revenue earned mainly from supporting client trading in fixed income securities.

From Charles Schwab's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 25 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue23,92119,60618,837+22.0%
Interest expensen/an/a6,684
Pre-tax income11,4597,6926,378+49.0%
Income tax2,6071,7501,311+49.0%
Effective tax rate22.8%22.8%20.6%
Net income8,8525,9425,067+49.0%
Net margin37.0%30.3%26.9%
Diluted EPS$4.65$2.99$2.54+55.5%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow9,3112,67019,587+248.7%
Capital expenditure548620700-11.6%
Free cash flow8,7632,05018,887+327.5%
Free cash flow margin36.6%10.5%100.3%
Cash from investing24,53835,43157,411-30.7%
Cash from financing-29,702-47,060-61,245
Depreciation and amortisationn/an/a804
Share-based compensation317337320-5.9%
Buybacks7,3460.02,842
Dividends paid2,3292,2752,276+2.4%
Dividend per share$1.08$1.00$1.00+8.0%
Diluted shares, weighted1,809m1,834m1,831m-1.4%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity49,42548,37540,958+2.2%
Deposits255,747259,121289,953-1.3%
Debt22,19922,42826,128-1.0%
Other liabilities163,624149,919136,139+9.1%
Total liabilities and equity490,995479,843493,178+2.3%
Goodwill11,95111,95111,9510.0%
Intangible assets7,2337,7438,260-6.6%
Securities held for sale or to maturity196,326229,447267,098-14.4%
Loans57,95545,21540,439+28.2%
Securities borrowed4,7976951,563+590.2%
Cash and equivalents46,03042,08343,337+9.4%
Other assets166,703142,709120,530+16.8%
Total assets490,995479,843493,178+2.3%

10-K for the year ended 31 December 2025, filed 25 February 2026: the filing.