SCHW
FinancialsCharles Schwab Corporation
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Market Data
Financials
XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $5.0B | $5.2B | $4.2B | $4.2B | $4.7B | $4.9B | $5.4B | $6.1B | $6.4B | $7.5B | $8.6B | $10.1B | $10.7B | $11.7B | $18.5B | $20.8B | $18.8B | $19.6B | $23.9B | +22.0% |
| Net Income | $2.4B | $1.2B | $787.0M | $454.0M | $864.0M | $928.0M | $1.1B | $1.3B | $1.4B | $1.9B | $2.4B | $3.5B | $3.7B | $3.3B | $5.9B | $7.2B | $5.1B | $5.9B | $8.9B | +49.0% |
| Net Margin | 48.2% | 23.5% | 18.8% | 10.7% | 18.4% | 19.0% | 19.7% | 21.8% | 22.7% | 25.3% | 27.3% | 34.6% | 34.5% | 28.2% | 31.6% | 34.6% | 26.9% | 30.3% | 37.0% | +6.7pp |
| Free Cash Flow | $1.6B | -$186.0M | $1.3B | -$138.0M | $2.3B | $1.1B | — | — | — | $3.3B | -$1.2B | $11.9B | $8.6B | $6.2B | $1.2B | $1.1B | $18.9B | $2.0B | $8.8B | +327.5% |
| FCF Margin | 31.6% | -3.6% | 30.9% | -3.2% | 48.7% | 22.9% | — | — | — | 43.6% | -14.4% | 117.3% | 80.4% | 53.2% | 6.5% | 5.2% | 100.3% | 10.5% | 36.6% | +26.2pp |
| EPS (Diluted) | $1.96 | $1.05 | $0.68 | $0.38 | $0.70 | $0.69 | $0.78 | $0.95 | $1.03 | $1.31 | $1.61 | $2.45 | $2.67 | $2.12 | $2.83 | $3.50 | $2.54 | $2.99 | $4.65 | +55.5% |
1. THE BIG PICTURE
Charles Schwab has successfully evolved from a discount broker into a diversified financial powerhouse where banking, not trading, is the primary engine. While it markets itself through a "Through Clients’ Eyes" strategy of low costs and transparency, its financial health is increasingly defined by its ability to generate net interest revenue from its $11.9 trillion in client assets (Competitive Position). Charles Schwab Corporation is currently a bet on the stability of client cash behavior in a fluctuating interest rate environment.
2. WHERE THE RISKS HIT HARDEST
Schwab’s primary strength—its massive scale and operating efficiency—is directly threatened by client cash reallocation. Charles Schwab Corporation’s ability to "spread operating costs over a large client base" (Business) is compromised when clients shift assets away from sweep cash into higher-yielding alternatives, as seen in 2022 and 2023 (Risks). This forces Schwab to utilize higher-cost funding, which directly erodes the net interest revenue that constitutes nearly half of its quarterly top line (Recent Results).
Furthermore, the "no trade-offs" approach of providing low-cost products is vulnerable to regulatory sensitivity. If supervisory authorities impose stricter capital requirements—specifically including Accumulated Other Comprehensive Income (AOCI) in regulatory capital—Schwab may be forced to restrict the very growth and share repurchases that underpin its competitive standing (Risks).
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a company with elite profitability but cautious capital distribution. Schwab’s operating margin of 49.7% and net margin of 34.8% lead most of its peer group, yet its buyback yield of 0.9% is the lowest among its direct competitors (Peer Benchmarking). This suggests that despite record full-year revenue of $23.9 billion, Schwab is prioritizing liquidity and regulatory cushions over aggressive shareholder returns (Recent Results).
The most recent quarterly revenue growth of 19% (8-K) shows a slight cooling compared to the 22% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter growth rate (XBRL). This divergence is likely a result of the "client cash reallocation" mentioned in the risk disclosures, which pressured net interest revenue in previous periods but appears to be stabilizing as net interest revenue reached $3.17 billion in the fourth quarter (8-K).
4. IS IT WORTH IT AT THIS PRICE?
At a forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 13.8x, Schwab trades at a 12% discount to the peer median of 15.7x (Peer Benchmarking). According to the provided CAPM analysis, the market is pricing in a long-term growth rate of just 2.3%. This valuation appears modest given that Schwab delivered 22% revenue growth over the last twelve months and maintains the highest free cash flow margin in its peer group at 127.7% (Peer Benchmarking).
The discount likely reflects investor anxiety over the "broad discretion" of regulators and the potential for "unrealized losses on investment securities" if interest rates remain volatile (Risks). However, if Schwab can maintain its 34.8% net margin while integrating new acquisitions like Forge Global, the current price assumes a level of stagnation that Charles Schwab Corporation’s recent performance contradicts.
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if bank deposit account fees (which were flat year-over-year at $238 million) begin to decline significantly, signaling that the "cash sorting" phenomenon is accelerating again (Recent Results).
- Constructive if the acquisition of Forge Global, valued at $660 million, leads to a measurable increase in asset management and administration fees, diversifying the revenue mix away from interest rate sensitivity (Recent Results).
6. BOTTOM LINE
Structural Advantage: Massive scale and an integrated "operating structure" that combines banking and wealth management to produce industry-leading 49.7% operating margins.
Bottom Line: Schwab is a high-margin market leader currently priced for a stagnation that its recent 19% quarterly growth suggests is unlikely to materialize.
1. Top 5 Material Risks
- Interest Rate Sensitivity: Charles Schwab Corporation faces profitability risks if interest rates decline, reducing net interest revenue and bank deposit account fees, or if rising rates increase funding costs and unrealized losses on investment securities.
- Client Cash Reallocation: A significant shift in client assets away from sweep cash into higher-yielding alternatives—as seen in 2022 and 2023—forces Charles Schwab Corporation to utilize higher-cost funding sources, negatively impacting net income.
- Cybersecurity and Data Privacy: As a frequent target of cyberattacks, Charles Schwab Corporation faces risks of unauthorized access, data loss, and service unavailability, which could lead to significant liability, regulatory action, and the need to expend resources on remediation.
- Operational and Technology Failures: Reliance on complex technology systems and third-party service providers exposes Charles Schwab Corporation to service disruptions, execution errors, and reputational damage, particularly during periods of extraordinary trading volume.
- Regulatory Capital and Liquidity Requirements: Charles Schwab Corporation must maintain specific capital and liquidity standards; failure to meet these, or the imposition of stricter rules (such as including Accumulated Other Comprehensive Income (AOCI) in regulatory capital), could limit Charles Schwab Corporation's ability to return capital to stockholders or expand operations.
2. Company-Specific Risks
- 2023 IDA Agreement Constraints: The agreement with TD Depository Institutions limits Charles Schwab Corporation’s ability to respond to interest rate changes and may result in lower revenue compared to using those deposits for margin loans or internal banking subsidiaries.
- Digital Asset Expansion: The planned 2026 launch of spot trading in select cryptocurrencies introduces new risks related to custody, irreversible transactions, and the potential for permanent loss of assets due to private key compromise.
- Proprietary Fund Support: While not obligated, Charles Schwab Corporation may choose to provide credit or liquidity support to its proprietary money market mutual funds during market stress, which could result in significant charges or the consolidation of funds on its financial statements.
- Strategic Integration Risks: Acquisitions, such as the purchase of Forge, require the integration of disparate systems and controls, which may divert management attention and result in unforeseen expenditures or the loss of key clients.
3. Regulatory/Legal Risks
- CCAR Process: Charles Schwab Corporation is subject to the Comprehensive Capital Analysis and Review (CCAR) process, which mandates an annual capital plan and subjects Charles Schwab Corporation to a stress capital buffer that restricts capital distributions if ratios approach minimums.
- Category II Thresholds: If total consolidated assets reach $700 billion or cross-jurisdictional activity reaches $75 billion for four consecutive quarters, Charles Schwab Corporation will become subject to more stringent Category II requirements, including annual stress testing and the advanced approaches framework.
- Litigation and Arbitration: Charles Schwab Corporation faces ordinary-course litigation, including class actions and claims from clients of third-party advisors, which can result in substantial damages, settlements, or injunctions that impact operating results.
- Regulatory Enforcement: Governmental agencies and SROs have broad discretion to impose fines, cease and desist orders, or limitations on business activities, even for inadvertent noncompliance with evolving regulatory frameworks.
4. Financial Impact Map
Interest Rate Volatility → Net Interest Revenue and Bank Deposit Account Fee Revenue → Declines in rates or increased funding costs can compress margins and reduce fee income. Client Cash Reallocation → Net Income → Increased reliance on higher-cost funding sources to support client shifts reduces overall profitability. Cybersecurity Breaches → Operating Expenses → Costs associated with remediation, potential ransom payments, and legal liability for data exposure. Operational/Technology Failures → Client Assets and Transaction Revenue → Service outages can lead to client dissatisfaction, loss of assets, and potential claims for damages from erroneous execution prices. Regulatory Capital Requirements → Share Repurchases and Dividends → Failure to meet capital buffers or stress testing requirements restricts Charles Schwab Corporation's ability to return capital to stockholders.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Jan 2026 | — |
| 10-Q | Nov 2025 | Sep 2025 |
| 14A | Apr 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Charles Schwab Launches Teen Investor Account Offering $50 Incentive for Educational Completion
- ▸Launched Schwab Teen Investor account for ages 13-17
- ▸Offers $50 in fractional shares for completing online education course
- ▸Completed acquisition of Forge Global Holdings for $45 per share
- ▸Integrates private market pre-IPO access into Schwab platform
- ▸Manages $12.22 trillion in total client assets
Charles Schwab Launches Teen Investor Accounts Targeting Younger Demographic for Long-Term Client Acquisition
- ▸Launched Teen Investor account for ages 13-17
- ▸Requires joint brokerage account with parent or guardian oversight
- ▸Offers $50 fractional share incentive for completing educational modules
- ▸Includes zero commissions on online listed equity trades
- ▸Restricts access to high-risk products like options and margin
Charles Schwab Launches Teen Investor Account to Drive Long-Term Client Acquisition
- ▸Launched Schwab Teen Investor account for ages 13-17
- ▸Total client accounts reached 46.5 million
- ▸New brokerage account openings exceeded 1 million for fifth consecutive quarter
- ▸One-third of new-to-firm clients in 2024 were Gen Z investors
- ▸Average client age declined by 10 years over the past decade
Charles Schwab raises quarterly dividend 19% to $0.32; repurchased $2.74B shares in Q4
- ▸Quarterly dividend increased 19% to $0.32 per share
- ▸Q4 share repurchases totaled 29.19M shares for $2.74B
- ▸Total buybacks since July 2025 reached 58.1M shares for $5.49B
- ▸Multiple analysts raised price targets to ~$120 range citing improved earnings power
- ▸Analyst and Investor Day scheduled to update on business developments
Charles Schwab Launches Teen Investor Account for Ages 13-17 With $50 Incentive
- ▸Launched Schwab Teen Investor account for ages 13-17
- ▸Joint brokerage account structure requires parent or guardian oversight
- ▸$50 reward in fractional shares for completing online education course
- ▸Features $0 commissions, no minimum deposit, and no maintenance fees
- ▸Excludes high-risk products like margin, options, futures, and leveraged ETFs
Charles Schwab Q1 revenue projected to grow 16% YoY on strong client engagement
- ▸Q1 2026 revenue growth projected at approximately 16% YoY
- ▸February total client assets $12.22 trillion, up 18.9% YoY
- ▸February core net new assets $32.5 billion, down 32.3% YoY
- ▸February margin balances $120.6 billion, up 39.4% YoY
- ▸February new brokerage accounts 395,000, up 9.1% YoY
Charles Schwab Q1 revenue growth projected at 16% YoY; February net new assets $32.5B
- ▸February core net new assets $32.5B; adjusted basis $50.0B
- ▸Added 395,000 new brokerage accounts in February
- ▸Q1 revenue growth guidance upgraded to 16% YoY
- ▸Finalized acquisition of Forge Global to expand private-market access
- ▸Long-term projections target $30.2B revenue and $11.0B earnings by 2028
Schwab February Core Net New Assets $32.5B, Total Client Assets Reach $12.22 Trillion
- ▸Core net new assets $32.5B, including $17.5B mutual fund clearing client deconversion outflow
- ▸Total client assets $12.22T, up 19% YoY and 1% MoM
- ▸New brokerage accounts 395,000, up 9% YoY
- ▸Daily average trades reached record 9.9 million
- ▸Q1 revenue growth expected to accelerate to approximately 16% versus 1Q25
Charles Schwab raises quarterly dividend 19% to $0.32, repurchased $2.7B shares in Q4
- ▸Quarterly cash dividend increased 19% to $0.32 per share
- ▸Q4 share repurchases totaled 29.2 million shares for $2.7 billion
- ▸Total buybacks under July 2025 authorization reached $5.45 billion
- ▸Dividend payable February 27, 2026 to shareholders of record February 13, 2026
- ▸Maintained over 7 million daily average trades for three consecutive quarters