Schwab operates in the wealth management, securities brokerage, banking, asset management, custody, and financial advisory services industries. At December 31, 2025, Schwab had $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. Management estimates that investable wealth in the United States currently exceeds $80 trillion, which means the Company's $11.90 trillion in client assets leaves substantial opportunity for growth.

Schwab's key competitive advantages include scale and size of the business, operating efficiency, operating structure, brand and corporate reputation, service culture, and willingness to disrupt. Across both segments, the Company competes with brokerage, wealth management, and asset management firms, banks, trust companies, financial technology companies, retirement service providers, institutional custodians, wirehouses, regional and independent broker-dealers, fintech custodians, and trust companies.

Schwab generates revenue through 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, with the primary funding source being uninvested client cash balances held on the balance sheet. Asset management and administration fees are primarily earned from proprietary money market mutual funds, proprietary and third-party mutual funds and ETFs, and fee-based managed investing solutions. Trading revenue includes commissions, order flow revenue, and principal transactions revenue. Bank deposit account fees are primarily recognized pursuant to the Second Amended and Restated Insured Deposit Account Agreement with TD Bank USA, National Association and TD Bank, National Association.

The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan and business services, as well as other corporate brokerage services, to businesses and their employees. This segment includes the Retail Investor business unit, Workplace Services, Mutual Fund Clearing Services, and Off-Platform Sales. The Retail Investor business unit serves individual investors with products such as Schwab Stock Slices and the Schwab Starter Kit, and offers several relationship models including Schwab Private Client Services for clients with $1 million to $10 million in qualifying assets and Schwab Private Wealth Services for clients with more than $10 million. Workplace Services includes Retirement Plan Services, Retirement Business Services, Stock Plan Services, and Designated Brokerage Services. Introduced in late 2025, Schwab Private Issuer Equity Services provides a complete equity management solution for private companies. For the year ended December 31, 2025, Investor Services total net revenues were $18.999 billion ¹, net interest revenue was $9.328 billion ², asset management and administration fees were $4.756 billion ³, trading revenue was $3.525 billion ⁴, and bank deposit account fees were $766 million ⁵.

The Advisor Services segment provides custodial, trading, banking and trust, and support services to independent registered investment advisors, independent retirement advisors, and recordkeepers. Schwab has become one of the largest providers of custodial, trading, banking, and support services to RIAs and their clients. In 2025, Schwab launched Schwab Advisor ProDirect, a membership-based program designed to help independent RIA firms accelerate sustainable growth. For the year ended December 31, 2025, Advisor Services total net revenues were $4.922 billion ⁶, net interest revenue was $2.422 billion ⁷, asset management and administration fees were $1.750 billion ⁸, trading revenue was $396 million ⁹, and bank deposit account fees were $211 million ¹⁰.

On November 6, 2025, Schwab announced it had entered into a definitive agreement to acquire Forge Global Holdings, Inc., operator of a leading private market platform and trading marketplace, in a transaction valued at approximately $660 million ¹¹. The transaction was approved by Forge's stockholders in January 2026 and is expected to close in March 2026. On July 24, 2025, CSC publicly announced that its Board of Directors terminated its prior share repurchase authorization and replaced it with a new authorization to repurchase up to $20.0 billion ¹² of common stock. During the year ended December 31, 2025, CSC repurchased 58.2 million ¹³ shares of its common stock under the new authorization for $5.5 billion ¹⁴. Total common stock repurchased during the year amounted to $7.3 billion ¹⁵. On June 2, 2025, the Company redeemed all of the 24,580 ¹⁶ outstanding shares of its fixed-rate reset non-cumulative perpetual preferred stock, Series G, and the corresponding 2,457,964 ¹⁷ depositary shares for a total of $2.5 billion ¹⁸. The Company increased its common dividend by 8% ¹⁹ to $.27 ²⁰ per share in the first quarter of 2025.

Total net revenues increased 22% ²¹ year-over-year to $23.921 billion ²² in 2025. Net income reached $8.852 billion ²³ in 2025, rising 49% ²⁴ from 2024, and diluted EPS was $4.65 ²⁵, an increase of 56% ²⁶ over the prior year. Net interest revenue was $11.750 billion ²⁷ in 2025, up 28% ²⁸ from 2024. Asset management and administration fees totaled $6.506 billion ²⁹ in 2025, increasing 14% ³⁰ from 2024. Trading revenue was $3.921 billion ³¹ in 2025, rising 20% ³² from 2024. Bank deposit account fee revenue increased to $977 million ³³ in 2025, up 34% ³⁴ from the prior year. Total expenses excluding interest were $12.462 billion ³⁵ in 2025, higher by 5% ³⁶ from 2024. Return on average common stockholders' equity was 21% ³⁷ in 2025, rising from 15% ³⁸ in 2024.

Management currently anticipates total expenses excluding interest in full-year 2026 will increase approximately 5.5% to 6.5% ³⁹ from 2025. The Company currently expects the acquisition of Forge to close in March 2026, and costs related to the operations and integration of Forge would be in addition to the 5.5% to 6.5% expected growth in expenses. Management anticipates capital expenditures for 2026 to be within the longer term expectation of 3-5% ⁴⁰ of total net revenues.

The planned acquisition of Forge Global Holdings, Inc., operator of a leading private market platform and trading marketplace, in a transaction valued at approximately $660 million ⁴¹, is expected to enhance Schwab's ability to meet the evolving needs of investors across the growing client base by incorporating Forge's private company investment capabilities. The Company anticipates it will begin offering expanded client access to trading in digital assets including spot trading in select cryptocurrencies in 2026. Introduced in late 2025, Schwab Private Issuer Equity Services provides a complete equity management solution designed to support private companies in the late stages prior to an initial public offering.

Management currently anticipates total expenses excluding interest in full-year 2026 will increase approximately 5.5% to 6.5% ⁴² from 2025. Adjusted total expenses were $11.950 billion ⁴³ in 2025, increasing 6% ⁴⁴ from the prior year. The Company maintains a long-term operating objective for its consolidated adjusted Tier 1 Leverage Ratio of 6.75% - 7.00% ⁴⁵.

Capital expenditures were $602 million ⁴⁶, $607 million ⁴⁷, and $804 million ⁴⁸ in 2025, 2024, and 2023, respectively. Capital expenditures were 2.5% ⁴⁹ of total net revenues in 2025, slightly lower than the previously disclosed expected range of approximately 3-5% of total net revenues. The Company anticipates capital expenditures for 2026 to be within the longer term expectation of 3-5% ⁵⁰ of total net revenues.

On July 24, 2025, CSC publicly announced that its Board of Directors approved a share repurchase authorization to repurchase up to $20.0 billion ⁵¹ of common stock, replacing the previous authorization. The new share repurchase authorization does not have an expiration date. As of December 31, 2025, approximately $14.5 billion ⁵² remained on the new authorization. The Company increased its common dividend by 8% ⁵³ to $.27 ⁵⁴ per share in the first quarter of 2025. On January 29, 2026, the Board of Directors declared a five cent, or 19% ⁵⁵, increase in the quarterly cash dividend to $.32 ⁵⁶ per common share. CSC currently targets its common stock cash dividend at approximately 20% to 30% ⁵⁷ of net income.

The Company's net interest revenue sensitivity analyses assume a statically-sized balance sheet with simulated changes to net interest revenue over the next twelve months beginning December 31, 2025 of a gradual increase or decrease in market interest rates relative to prevailing market rates. As of December 31, 2025, an increase of 200 basis points would result in an 8.6% ⁵⁸ change, an increase of 100 basis points would result in a 4.1% ⁵⁹ change, an increase of 50 basis points would result in a 1.7% ⁶⁰ change, a decrease of 50 basis points would result in a (2.2)% ⁶¹ change, a decrease of 100 basis points would result in a (4.4)% ⁶² change, and a decrease of 200 basis points would result in a (8.8)% ⁶³ change. The Company's EVE profile is characterized by a more stable asset duration relative to liabilities in both higher and lower interest rate environments, with greater exposure to rates decreasing.

The Company faces structural headwinds from the monetary policies of the Federal Reserve, which regulates the supply of money and credit in the United States and has a significant effect on operating results. Actions taken by the Federal Reserve, including changes in its target funds rate and its own balance sheet management, are difficult to predict and can affect financial results, including net interest revenue and bank deposit account fees, and the market value of investment securities. A significant reduction in clients' allocation to cash, a change in the allocation of that cash, or a transfer of cash away from the Company, would likely reduce income. The rapid increases in market interest rates experienced in 2022 and 2023 contributed to increased unrealized losses on the investment securities portfolios, and increased unrealized losses can reduce market or client confidence in the Company.

Management's message emphasizes the 'Through Clients' Eyes' strategy, with a generally supportive market and engaged clients, Schwab delivered growth in 2025 across multiple client metrics and in financial results, and continued to innovate to help clients achieve their financial goals. Management currently anticipates total expenses excluding interest in full-year 2026 will increase approximately 5.5% to 6.5% ⁶⁶ from 2025. The Company currently expects the acquisition of Forge to close in March 2026, and costs related to the operations and integration of Forge would be in addition to the 5.5% to 6.5% expected growth in expenses. Management anticipates capital expenditures for 2026 to be within the longer term expectation of 3-5% ⁶⁷ of total net revenues. The Company maintains a long-term operating objective for its consolidated adjusted Tier 1 Leverage Ratio of 6.75% - 7.00% ⁶⁸.

For the year ended December 31, 2025, total net revenues were $23.921 billion ⁶⁹ compared to $19.606 billion ⁷⁰ in 2024 and $18.837 billion ⁷¹ in 2023. Net income was $8.852 billion ⁷² in 2025, $5.942 billion ⁷³ in 2024, and $5.067 billion ⁷⁴ in 2023. Diluted EPS was $4.65 ⁷⁵ in 2025, $2.99 ⁷⁶ in 2024, and $2.54 ⁷⁷ in 2023. Net interest revenue was $11.750 billion ⁷⁸ in 2025, $9.144 billion ⁷⁹ in 2024, and $9.427 billion ⁸⁰ in 2023. Net interest margin was 2.74% ⁸¹ in 2025, 2.12% ⁸² in 2024, and 1.98% ⁸³ in 2023. Pre-tax profit margin was 47.9% ⁸⁴ in 2025, 39.2% ⁸⁵ in 2024, and 33.9% ⁸⁶ in 2023. Return on average common stockholders' equity was 21% ⁸⁷ in 2025, 15% ⁸⁸ in 2024, and 16% ⁸⁹ in 2023. The consolidated Tier 1 Leverage Ratio was 9.3% ⁹⁰ at year-end 2025, 9.9% ⁹¹ at year-end 2024, and 8.5% ⁹² at year-end 2023. The Company recognized a charge of $172 million ⁹³ in 2023 for its estimated portion of the FDIC special assessment, an additional charge of $30 million ⁹⁴ recognized in 2024, and a subsequent reduction of $32 million ⁹⁵ recognized in 2025. For segment performance, Investor Services income before taxes on income was $9.321 billion ⁹⁶ in 2025, $6.320 billion ⁹⁷ in 2024, and $5.211 billion ⁹⁸ in 2023. Advisor Services income before taxes on income was $2.138 billion ⁹⁹ in 2025, $1.372 billion ¹⁰⁰ in 2024, and $1.167 billion ¹⁰¹ in 2023.

A significant reduction in clients' allocation to cash, a change in the allocation of that cash, or a transfer of cash away from the Company, would likely reduce income. As a result of rapid increases in short-term interest rates in 2022 and 2023, the Company saw a significant decrease in clients' asset allocation to sweep cash and greater client investment in higher-yielding alternatives, and the Company extensively utilized higher-cost funding sources, which negatively impacted net income. The Company's interest-earning assets include significant holdings of investment securities, including substantial holdings of mortgage-backed securities, and the Company could be adversely affected by a decline in interest rates if the rates earned on interest-earning assets decline more than the rates paid on funding sources. The rapid increases in market interest rates experienced in 2022 and 2023 contributed to increased unrealized losses on the investment securities portfolios, and increased unrealized losses can reduce market or client confidence in the Company. The Company's margin lending activity has significantly increased in recent years, and margin loans ended the year at $112.3 billion ⁶⁴ at December 31, 2025, up 34% ⁶⁵ from year-end 2024. The Company faces significant risks related to its planned expansion of digital asset client offerings, including risks related to digital asset custody, trading, settlement, and liquidity, and increased risk related to fraud and other illicit activity.