Schwab Reports Record Revenue and Earnings
WESTLAKE, Texas--( BUSINESS WIRE)--The Charles Schwab Corporation reported net income for the third quarter totaling $2.4 billion, or $1.26 earnings per share. Excluding $127 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $2.5 billion and $1.31, respectively.
Client Driven
Growth
44%
3Q25 Core NNA
Growth vs. 3Q24
“Our unwavering focus on delivering for clients helped us attract $137.5 billion in 3Q core net new assets plus over 1 million new brokerage accounts for the fourth straight quarter.”
President & CEO Rick Wurster
Diversified
Revenue Growth
27%
3Q25 Revenue
Growth vs. 3Q24
“Strengthening organic growth trends, increasing adoption of wealth solutions, and favorable macroeconomic tailwinds powered another quarter of record revenue and earnings per share.”
President & CEO Rick Wurster
Balance Sheet
Management
$12.9B
3Q25 Reduction in Bank
Supplemental Funding (2)
“Client transactional sweep cash grew by $13.5 billion versus 2Q25, helping us to further reduce higher cost bank funding by $12.9 billion to $14.8 billion at quarter-end.”
CFO Mike Verdeschi
Opportunistic
Capital Return
$2.7B
3Q25 Common
Stock Repurchases
“During 3Q25, we repurchased 28.9 million shares for $2.7 billion, bringing year-to-date capital return across all forms to $8.5 billion. This opportunistic return of excess capital complements our strong business momentum as we continue to prioritize capital flexibility.”
CFO Mike Verdeschi
3Q25 Client and Business Highlights
Three Months Ended
September 30,
%
Nine Months Ended
September 30,
%
Financial Highlights
2025
2024
Change
2025
2024
Change
Net revenues (in millions)
$
6,135
$
4,847
27
%
$
17,585
$
14,277
23
%
Net income (in millions)
GAAP
$
2,358
$
1,408
67
%
$
6,393
$
4,102
56
%
Adjusted
$
2,456
$
1,525
61
%
$
6,686
$
4,459
50
%
Diluted earnings per common share
GAAP
$
1.26
$
.71
77
%
$
3.33
$
2.05
62
%
Adjusted
$
1.31
$
.77
70
%
$
3.49
$
2.25
55
%
Pre-tax profit margin
GAAP
49.2
%
38.0
%
47.1
%
37.7
%
Adjusted
51.3
%
41.2
%
49.3
%
41.0
%
Return on average common stockholders’ equity (annualized)
21
%
14
%
20
%
14
%
Return on tangible common equity (annualized)
38
%
31
%
37
%
33
%
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.
3Q25 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)
Bank Supplemental Funding includes repurchase agreements at the banks, Schwab Bank Certificates of Deposit (CDs), and Federal Home Loan Bank balances.
(3)
The IBD Most Trusted Financial Companies award was given to Charles Schwab on September 12, 2025, and is licensed for a 15-month timeframe. The criteria, evaluation, and ranking were determined by Investor’s Business Daily in conjunction with its research partner, TechnoMetrica Market Intelligence. Schwab paid a licensing fee to York Graphic Services, LLC. for use of the award and logos.
(4)
The Kiplinger Best Online Brokers and Trading Platforms for 2025 survey was published by Kiplinger on September 9, 2025, and is for a 12-month timeframe. The criteria, evaluation, and ranking were determined Kiplinger. For more information on methodology, visit https://www.kiplinger.com/investing/wealth-management/online-brokers/605136/the-best-online-brokers-and-trading-platforms. Schwab paid a licensing fee to Adcetera, for the use of the accolade and corresponding logos through October 15, 2026.
Fall Business Update
The company will host its Fall 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 client adoption of wealth solutions, and the company’s organic growth, capital ratios and return of capital. 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 38.0 million active brokerage accounts, 5.6 million workplace plan participant accounts, 2.2 million banking accounts, and $11.59 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
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Net Revenues
Interest revenue
$
3,956
$
3,928
$
11,500
$
11,686
Interest expense
(906
)
(1,706
)
(2,922
)
(5,073
)
Net interest revenue
3,050
2,222
8,578
6,613
Asset management and administration fees
1,673
1,476
4,773
4,207
Trading revenue
995
797
2,855
2,391
Bank deposit account fees
247
152
739
488
Other
170
200
640
578
Total net revenues
6,135
4,847
17,585
14,277
Expenses Excluding Interest
Compensation and benefits
1,653
1,522
4,861
4,510
Professional services
293
256
853
756
Occupancy and equipment
280
271
824
784
Advertising and market development
101
101
305
296
Communications
149
147
478
460
Depreciation and amortization
212
231
644
692
Amortization of acquired intangible assets
127
130
385
389
Regulatory fees and assessments
59
88
225
309
Other
240
259
731
694
Total expenses excluding interest
3,114
3,005
9,306
8,890
Income before taxes on income
3,021
1,842
8,279
5,387
Taxes on income
663
434
1,886
1,285
Net Income
2,358
1,408
6,393
4,102
Preferred stock dividends and other
81
109
343
341
Net Income Available to Common Stockholders
$
2,277
$
1,299
$
6,050
$
3,761
Weighted-Average Common Shares Outstanding:
Basic
1,806
1,829
1,815
1,827
Diluted
1,811
1,834
1,820
1,833
Earnings Per Common Shares Outstanding:
Basic
$
1.26
$
.71
$
3.33
$
2.06
Diluted
$
1.26
$
.71
$
3.33
$
2.05
THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
Q3-25 % change
2025
2024
vs.
vs.
Third
Second
First
Fourth
Third
(In millions, except per share amounts and as noted)
Q3-24
Q2-25
Quarter
Quarter
Quarter
Quarter
Quarter
Net Revenues
Net interest revenue
37
%
8
%
$
3,050
$
2,822
$
2,706
$
2,531
$
2,222
Asset management and administration fees
13
%
7
%
1,673
1,570
1,530
1,509
1,476
Trading revenue
25
%
5
%
995
952
908
873
797
Bank deposit account fees
63
%
—
247
247
245
241
152
Other
(15
)%
(35
)%
170
260
210
175
200
Total net revenues
27
%
5
%
6,135
5,851
5,599
5,329
4,847
Expenses Excluding Interest
Compensation and benefits
9
%
8
%
1,653
1,536
1,672
1,533
1,522
Professional services
14
%
1
%
293
291
269
297
256
Occupancy and equipment
3
%
4
%
280
270
274
276
271
Advertising and market development
—
(6
)%
101
108
96
101
101
Communications
1
%
(15
)%
149
176
153
131
147
Depreciation and amortization
(8
)%
(1
)%
212
215
217
224
231
Amortization of acquired intangible assets
(2
)%
(1
)%
127
128
130
130
130
Regulatory fees and assessments
(33
)%
(23
)%
59
77
89
89
88
Other
(7
)%
(3
)%
240
247
244
243
259
Total expenses excluding interest
4
%
2
%
3,114
3,048
3,144
3,024
3,005
Income before taxes on income
64
%
8
%
3,021
2,803
2,455
2,305
1,842
Taxes on income
53
%
(2
)%
663
677
546
465
434
Net Income
67
%
11
%
2,358
2,126
1,909
1,840
1,408
Preferred stock dividends and other
(26
)%
(46
)%
81
149
113
123
109
Net Income Available to Common Stockholders
75
%
15
%
$
2,277
$
1,977
$
1,796
$
1,717
$
1,299
Earnings per common share:
Basic
77
%
16
%
$
1.26
$
1.09
$
.99
$
.94
$
.71
Diluted
77
%
17
%
$
1.26
$
1.08
$
.99
$
.94
$
.71
Dividends declared per common share
8
%
—
$
.27
$
.27
$
.27
$
.25
$
.25
Weighted-average common shares outstanding:
Basic
(1
)%
(1
)%
1,806
1,817
1,817
1,831
1,829
Diluted
(1
)%
(1
)%
1,811
1,822
1,822
1,836
1,834
Performance Measures
Pre-tax profit margin
49.2
%
47.9
%
43.8
%
43.3
%
38.0
%
Return on average common stockholders’ equity (annualized) (1)
21
%
19
%
18
%
18
%
14
%
Financial Condition (at quarter end, in billions)
Cash and cash equivalents
(12
)%
(5
)%
$
30.6
$
32.2
$
35.0
$
42.1
$
34.9
Cash and investments segregated
42
%
5
%
47.8
45.6
38.4
38.2
33.7
Receivables from brokers, dealers, and clearing organizations
38
%
9
%
4.7
4.3
2.9
2.4
3.4
Receivables from brokerage clients — net
27
%
13
%
93.8
82.8
84.4
85.4
74.0
Available for sale securities
(31
)%
(8
)%
62.3
67.6
74.8
83.0
90.0
Held to maturity securities
(9
)%
(2
)%
136.7
139.7
143.8
146.5
149.9
Bank loans — net
24
%
6
%
53.6
50.4
47.1
45.2
43.3
Total assets
—
1
%
465.3
458.9
462.9
479.8
466.1
Bank deposits
(3
)%
3
%
239.1
233.1
246.2
259.1
246.5
Payables to brokers, dealers, and clearing organizations (2)
37
%
20
%
22.4
18.6
15.7
13.3
16.4
Payables to brokerage clients
29
%
5
%
115.4
109.4
100.6
101.6
89.2
Accrued expenses and other liabilities (2)
2
%
6
%
11.4
10.8
11.0
12.3
11.2
Other short-term borrowings
(39
)%
(24
)%
6.5
8.5
6.9
6.0
10.6
Federal Home Loan Bank borrowings
(96
)%
(90
)%
0.9
9.0
11.5
16.7
22.6
Long-term debt
(10
)%
—
20.2
20.2
21.5
22.4
22.4
Total liabilities
(1
)%
2
%
415.9
409.5
413.4
431.5
418.8
Stockholders’ equity
5
%
—
49.4
49.5
49.5
48.4
47.2
Total liabilities and stockholders’ equity
—
1
%
465.3
458.9
462.9
479.8
466.1
Other
Full-time equivalent employees (at quarter end, in thousands)
2
%
—
32.7
32.6
32.1
32.1
32.1
Capital expenditures — purchases of equipment, office facilities, and property, net (in millions)
13
%
12
%
$
152
$
136
$
156
$
258
$
135
Expenses excluding interest as a percentage of average client assets (annualized)
0.11
%
0.12
%
0.12
%
0.12
%
0.12
%
Clients’ Daily Average Trades (DATs) (in thousands)
30
%
(2
)%
7,421
7,571
7,391
6,312
5,697
Number of Trading Days
—
2
%
63.5
62.0
60.0
63.0
63.5
Revenue Per Trade (3)
(4
)%
4
%
$
2.11
$
2.03
$
2.05
$
2.20
$
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)
Beginning in the fourth quarter of 2024, payables to brokers, dealers, and clearing organizations are presented separately from accrued expenses and other liabilities. Prior period amounts have been reclassified to reflect this change. Payables to brokers, dealers, and clearing organizations include securities loaned.
(3)
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
September 30,
Nine Months Ended
September 30,
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
$
24,298
$
264
4.26
%
$
27,623
$
369
5.24
%
$
27,571
$
897
4.29
%
$
30,128
$
1,205
5.26
%
Cash and investments segregated
46,046
494
4.20
%
26,220
345
5.15
%
44,104
1,412
4.22
%
25,744
1,014
5.18
%
Receivables from brokerage clients
90,121
1,490
6.47
%
73,102
1,431
7.66
%
84,317
4,204
6.57
%
68,557
4,042
7.75
%
Available for sale securities (1)
69,794
360
2.05
%
98,645
531
2.14
%
77,324
1,198
2.06
%
104,830
1,680
2.13
%
Held to maturity securities (1)
137,672
587
1.70
%
151,004
650
1.71
%
141,032
1,811
1.71
%
154,231
1,998
1.72
%
Bank loans
51,849
557
4.27
%
42,653
484
4.52
%
48,882
1,568
4.28
%
41,585
1,384
4.44
%
Total interest-earning assets
419,780
3,752
3.52
%
419,247
3,810
3.58
%
423,230
11,090
3.47
%
425,075
11,323
3.52
%
Securities lending revenue
183
87
339
258
Other interest revenue
21
31
71
105
Total interest-earning assets
$
419,780
$
3,956
3.71
%
$
419,247
$
3,928
3.69
%
$
423,230
$
11,500
3.60
%
$
425,075
$
11,686
3.63
%
Funding sources
Bank deposits
$
229,281
$
248
0.43
%
$
248,405
$
841
1.35
%
$
237,488
$
1,010
0.57
%
$
260,254
$
2,602
1.34
%
Payables to brokers, dealers, and clearing organizations (2)
19,131
188
3.84
%
9,825
118
4.68
%
16,673
492
3.89
%
7,004
230
4.31
%
Payables to brokerage clients
96,064
97
0.40
%
72,700
79
0.43
%
92,909
217
0.31
%
69,586
229
0.44
%
Other short-term borrowings
7,593
87
4.56
%
10,821
150
5.52
%
7,314
256
4.68
%
9,164
382
5.57
%
Federal Home Loan Bank borrowings
7,103
79
4.35
%
22,621
310
5.38
%
9,180
322
4.62
%
24,347
988
5.36
%
Long-term debt
20,204
207
4.01
%
22,446
208
3.71
%
21,029
625
3.92
%
23,299
640
3.66
%
Total interest-bearing liabilities (2)
379,376
906
0.94
%
386,818
1,706
1.75
%
384,593
2,922
1.01
%
393,654
5,071
1.71
%
Non-interest-bearing funding sources (2)
40,404
32,429
38,637
31,421
Other interest expense
—
—
—
2
Total funding sources
$
419,780
$
906
0.85
%
$
419,247
$
1,706
1.61
%
$
423,230
$
2,922
0.92
%
$
425,075
$
5,073
1.59
%
Net interest revenue
$
3,050
2.86
%
$
2,222
2.08
%
$
8,578
2.68
%
$
6,613
2.04
%
(1)
Amounts have been calculated based on amortized cost.
(2)
Beginning in the fourth quarter of 2024, payables to brokers, dealers, and clearing organizations is presented separately from non-interest-bearing funding sources and included in total interest-bearing liabilities. This line item includes securities loaned and related interest expense. Prior period amounts have been reclassified to reflect this change.
THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions, except ratios or as noted)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
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
$
663,218
$
458
0.27
%
$
551,945
$
379
0.27
%
$
643,168
$
1,318
0.27
%
$
525,166
$
1,072
0.27
%
Schwab equity and bond funds, exchange-traded
funds (ETFs), and collective trust funds (CTFs)
735,519
132
0.07
%
603,314
118
0.08
%
685,300
376
0.07
%
569,608
337
0.08
%
Mutual Fund OneSource ® and other no-
transaction-fee funds
443,660
259
0.23
%
354,664
224
0.25
%
384,614
699
0.24
%
335,813
647
0.26
%
Other third-party mutual funds and ETFs
618,032
97
0.06
%
611,555
106
0.07
%
617,441
302
0.07
%
606,026
314
0.07
%
Total mutual funds, ETFs, and CTFs (1)
$
2,460,429
$
946
0.15
%
$
2,121,478
$
827
0.16
%
$
2,330,523
$
2,695
0.15
%
$
2,036,613
$
2,370
0.16
%
Managed investing solutions (1)
Fee-based
$
654,220
$
619
0.38
%
$
554,726
$
559
0.40
%
$
613,302
$
1,777
0.39
%
$
528,850
$
1,572
0.40
%
Non-fee-based
127,592
—
—
114,307
—
—
122,920
—
—
110,191
—
—
Total managed investing solutions
$
781,812
$
619
0.31
%
$
669,033
$
559
0.33
%
$
736,222
$
1,777
0.32
%
$
639,041
$
1,572
0.33
%
Other balance-based fees (2)
922,030
81
0.03
%
795,737
72
0.04
%
870,045
233
0.04
%
759,645
210
0.04
%
Other (3)
27
18
68
55
Total asset management and administration fees
$
1,673
$
1,476
$
4,773
$
4,207
(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)
Q3-25 % Change
2025
2024
vs.
vs.
Third
Second
First
Fourth
Third
(In billions, at quarter end, except as noted)
Q3-24
Q2-25
Quarter
Quarter
Quarter
Quarter
Quarter
Assets in client accounts
Schwab One ®, certain cash equivalents, and bank deposits
7
%
4
%
$
357.1
$
342.7
$
345.2
$
358.8
$
334.1
Bank deposit account balances
(7
)%
(4
)%
78.5
82.1
83.7
87.5
84.0
Proprietary mutual funds (Schwab Funds ® and Laudus Funds ®) and CTF
Money market funds (1)
19
%
2
%
666.4
653.5
641.5
596.5
562.1
Equity and bond funds and CTFs (2)
18
%
8
%
269.7
249.7
227.0
232.2
228.9
Total proprietary mutual funds and CTFs
18
%
4
%
936.1
903.2
868.5
828.7
791.0
Mutual Fund Marketplace ® (3)
Mutual Fund OneSource ® and other no-transaction-fee funds
32
%
4
%
473.5
453.9
340.3
347.8
358.0
Mutual fund clearing services
14
%
7
%
320.2
298.3
280.6
280.7
280.8
Other third-party mutual funds
—
6
%
1,237.2
1,168.5
1,195.4
1,211.1
1,236.5
Total Mutual Fund Marketplace
8
%
6
%
2,030.9
1,920.7
1,816.3
1,839.6
1,875.3
Total mutual fund assets
11
%
5
%
2,967.0
2,823.9
2,684.8
2,668.3
2,666.3
Exchange-traded funds
Proprietary ETFs (2)
23
%
8
%
476.0
439.7
398.2
395.0
385.9
Other third-party ETFs
27
%
10
%
2,395.7
2,175.6
1,960.1
1,940.6
1,888.2
Total ETF assets
26
%
10
%
2,871.7
2,615.3
2,358.3
2,335.6
2,274.1
Equity and other securities
20
%
10
%
4,624.7
4,188.7
3,765.5
3,972.6
3,839.6
Fixed income securities
—
1
%
792.1
788.0
775.8
762.3
795.4
Margin loans outstanding
33
%
17
%
(97.2
)
(83.4
)
(83.6
)
(83.8
)
(73.0
)
Total client assets
17
%
8
%
$
11,593.9
$
10,757.3
$
9,929.7
$
10,101.3
$
9,920.5
Client assets by business (4)
Investor Services (5)
18
%
8
%
$
6,577.2
$
6,069.9
$
5,557.4
$
5,721.6
$
5,576.7
Advisor Services (6)
15
%
7
%
5,016.7
4,687.4
4,372.3
4,379.7
4,343.8
Total client assets
17
%
8
%
$
11,593.9
$
10,757.3
$
9,929.7
$
10,101.3
$
9,920.5
Net growth in assets in client accounts (for the quarter ended)
Net new assets by business (4)
Investor Services (5)
42
%
69
%
$
52.7
$
31.2
$
69.5
$
46.2
$
37.2
Advisor Services (6)
52
%
93
%
81.7
42.4
62.9
62.2
53.6
Total net new assets
48
%
83
%
$
134.4
$
73.6
$
132.4
$
108.4
$
90.8
Net market gains (losses)
702.2
754.0
(304.0
)
72.4
422.2
Net growth (decline)
$
836.6
$
827.6
$
(171.6
)
$
180.8
$
513.0
New brokerage accounts (in thousands, for the quarter ended)
18
%
4
%
1,143
1,098
1,183
1,119
972
Client accounts (in thousands)
Active brokerage accounts
6
%
1
%
37,963
37,476
37,011
36,456
35,982
Banking accounts
10
%
3
%
2,150
2,096
2,050
1,998
1,954
Workplace Plan Participant Accounts (7)
4
%
1
%
5,619
5,586
5,495
5,399
5,388
(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 September 30, 2025, off-platform equity and bond funds, CTFs, and ETFs were $41.1 billion, $4.9 billion, and $169.5 billion, respectively.
(3)
Excludes all proprietary mutual funds and ETFs.
(4)
In the fourth quarter of 2024, Retirement Business Services moved from Advisor Services to Investor Services. Prior periods have been recast.
(5)
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. Third quarter of 2024 includes net outflows of $4.4 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.1 billion from a large international relationship.
(6)
Fourth quarter of 2024 includes an outflow of $0.3 billion from a large international relationship.
(7)
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 September 2025
2024
2025
Change
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Mo.
Yr.
Market Indices (at month end)
Dow Jones Industrial Average ®
42,330
41,763
44,911
42,544
44,545
43,841
42,002
40,669
42,270
44,095
44,131
45,545
46,398
2
%
10
%
Nasdaq Composite ®
18,189
18,095
19,218
19,311
19,627
18,847
17,299
17,446
19,114
20,370
21,122
21,456
22,660
6
%
25
%
Standard & Poor’s ® 500
5,762
5,705
6,032
5,882
6,041
5,955
5,612
5,569
5,912
6,205
6,339
6,460
6,688
4
%
16
%
Client Assets (in billions of dollars)
Beginning Client Assets
9,737.7
9,920.5
9,852.0
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
Net New Assets (1)
30.3
22.7
25.5
60.2
30.5
46.6
55.3
1.1
33.6
38.9
45.7
43.3
45.4
5
%
50
%
Net Market Gains (Losses)
152.5
(91.2
)
427.9
(264.3
)
201.3
(99.5
)
(405.8
)
(38.6
)
423.2
369.4
160.5
221.3
320.4
Total Client Assets (at month end)
9,920.5
9,852.0
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
3
%
17
%
Core Net New Assets (1,2)
33.5
24.6
28.8
61.4
30.6
48.0
59.1
2.7
35.0
42.6
46.9
44.4
46.2
4
%
38
%
Receiving Ongoing Advisory Services (at month end)
Investor Services
675.1
665.6
688.9
682.0
698.7
703.5
688.8
688.2
711.2
737.6
747.9
771.1
792.5
3
%
17
%
Advisor Services
4,343.8
4,303.3
4,489.2
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
3
%
15
%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts
35,982
36,073
36,222
36,456
36,709
36,861
37,011
37,254
37,375
37,476
37,658
37,798
37,963
—
6
%
Banking Accounts
1,954
1,967
1,980
1,998
2,019
2,033
2,050
2,066
2,077
2,096
2,116
2,137
2,150
1
%
10
%
Workplace Plan Participant Accounts (3)
5,388
5,407
5,393
5,399
5,450
5,464
5,495
5,518
5,563
5,586
5,619
5,606
5,619
—
4
%
Client Activity
New Brokerage Accounts (in thousands)
321
331
357
431
433
362
388
439
336
323
377
382
384
1
%
20
%
Client Cash as a Percentage of Client Assets (4)
9.5
%
9.8
%
9.5
%
10.1
%
9.8
%
10.0
%
10.6
%
10.5
%
10.1
%
9.9
%
9.7
%
9.5
%
9.4
%
(10) bp
(10) bp
Derivative Trades as a Percentage of Total Trades
21.5
%
21.4
%
19.7
%
18.6
%
19.3
%
19.9
%
19.5
%
18.4
%
21.0
%
20.8
%
21.3
%
22.5
%
22.3
%
(20) bp
80 bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (5)
420,203
422,327
425,789
431,177
431,523
424,805
425,228
430,884
419,638
417,768
418,640
417,194
423,629
2
%
1
%
Average Margin Balances
72,755
74,105
76,932
81,507
82,551
84,233
82,725
77,478
79,132
82,339
85,492
90,399
94,609
5
%
30
%
Average Bank Deposit Account Balances (6)
82,336
83,261
84,385
85,384
84,790
83,089
84,302
84,060
81,495
81,014
80,755
79,781
79,308
(1
)%
(4
)%
Mutual Funds and Exchange-Traded Funds
Net Buys (Sells) (7,8) (in millions of dollars)
Equities
5,217
7,176
13,226
14,805
10,050
4,987
(1,221
)
7,950
10,473
8,987
10,936
8,402
8,832
Hybrid
(432
)
(1,397
)
(329
)
124
(1,324
)
(464
)
(603
)
(1,663
)
(287
)
(1,038
)
(463
)
(604
)
(452
)
Bonds
11,015
10,442
7,473
10,969
8,747
12,162
11,438
(1,490
)
8,483
6,050
11,920
12,993
12,502
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (7)
(1,261
)
(4,905
)
(4,492
)
(4,331
)
(6,785
)
(3,971
)
(8,537
)
(13,955
)
(3,224
)
(5,351
)
(3,442
)
(2,217
)
(4,754
)
Exchange-Traded Funds (8)
17,061
21,126
24,862
30,229
24,258
20,656
18,151
18,752
21,893
19,350
25,835
23,008
25,636
Money Market Funds
9,672
11,032
9,172
8,956
11,584
12,306
14,586
(6,158
)
5,794
5,814
2,452
4,319
(517
)
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. 2024 also includes outflows from a large international relationship of $0.3 billion in October and $0.6 billion in November.
(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.
(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 third 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 September 30,
Nine Months Ended September 30,
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)
$
3,114
$
2,358
$
3,005
$
1,408
$
9,306
$
6,393
$
8,890
$
4,102
Amortization of acquired intangible assets
(127
)
127
(130
)
130
(385
)
385
(389
)
389
Acquisition and integration-related costs (1)
—
—
(23
)
23
—
—
(97
)
97
Restructuring costs (2)
—
—
—
—
—
—
18
(18
)
Income tax effects (3)
N/A
(29
)
N/A
(36
)
N/A
(92
)
N/A
(111
)
Adjusted total expenses (non-GAAP), Adjusted net income (non-GAAP)
$
2,987
$
2,456
$
2,852
$
1,525
$
8,921
$
6,686
$
8,422
$
4,459
(1)
There were no acquisition and integration-related costs for the three and nine months ended September 30, 2025. Acquisition and integration-related costs for the three and nine months ended September 30, 2024 primarily consist of $9 million and $44 million of compensation and benefits, $3 million and $32 million of professional services, and $8 million and $13 million of depreciation and amortization.
(2)
There were no restructuring costs for the three and nine months ended September 30, 2025 and three months ended September 30, 2024. Restructuring costs for the nine months ended September 30, 2024 reflect a benefit due to a change in estimate of $34 million in compensation and benefits, offset by $3 million of occupancy and equipment expense and $13 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 September 30,
Nine Months Ended September 30,
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)
$
3,021
49.2
%
$
1,842
38.0
%
$
8,279
47.1
%
$
5,387
37.7
%
Amortization of acquired intangible assets
127
2.1
%
130
2.7
%
385
2.2
%
389
2.7
%
Acquisition and integration-related costs
—
—
23
0.5
%
—
—
97
0.7
%
Restructuring costs
—
—
—
—
—
—
(18
)
(0.1
)%
Adjusted income before taxes on income (non-GAAP), Adjusted pre-tax profit margin (non-GAAP)
$
3,148
51.3
%
$
1,995
41.2
%
$
8,664
49.3
%
$
5,855
41.0
%
Three Months Ended September 30,
Nine Months Ended September 30,
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)
$
2,277
$
1.26
$
1,299
$
.71
$
6,050
$
3.33
$
3,761
$
2.05
Amortization of acquired intangible assets
127
.07
130
.07
385
.21
389
.21
Acquisition and integration-related costs
—
—
23
.01
—
—
97
.05
Restructuring costs
—
—
—
—
—
—
(18
)
(.01
)
Income tax effects
(29
)
(.02
)
(36
)
(.02
)
(92
)
(.05
)
(111
)
(.05
)
Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted EPS (non-GAAP)
$
2,375
$
1.31
$
1,416
$
.77
$
6,343
$
3.49
$
4,118
$
2.25
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Return on average common stockholders’ equity (GAAP)
21
%
14
%
20
%
14
%
Average common stockholders’ equity
$
42,655
$
36,393
$
40,903
$
34,895
Less: Average goodwill
(11,951
)
(11,951
)
(11,951
)
(11,951
)
Less: Average acquired intangible assets — net
(7,423
)
(7,938
)
(7,552
)
(8,067
)
Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net
1,695
1,735
1,695
1,747
Average tangible common equity
$
24,976
$
18,239
$
23,095
$
16,624
Adjusted net income available to common stockholders (1)
$
2,375
$
1,416
$
6,343
$
4,118
Return on tangible common equity (non-GAAP)
38
%
31
%
37
%
33
%
(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)
September 30, 2025
CSC
CSB
Tier 1 Leverage Ratio (GAAP)
9.7
%
12.4
%
Tier 1 Capital
$
43,491
$
31,514
Plus: AOCI adjustment
(11,826
)
(10,272
)
Adjusted Tier 1 Capital
31,665
21,242
Average assets with regulatory adjustments
447,094
253,874
Plus: AOCI adjustment
(12,176
)
(10,613
)
Adjusted average assets with regulatory adjustments
$
434,918
$
243,261
Adjusted Tier 1 Leverage Ratio (non-GAAP)
7.3
%
8.7
%