# SCHWAB CHARLES CORP (SCHW) Informational only - not investment advice. CIK: 0000316709 SIC: 6211 Security Brokers, Dealers & Flotation Companies SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Security And Commodity Brokers, Dealers, Exchanges, And Services](/major-group/62/) > [SIC 6211 Security Brokers, Dealers & Flotation Companies](/industry/6211/) Latest 10-K filed: 2026-02-25 SEC page: https://www.sec.gov/edgar/browse/?CIK=316709 Filing source: https://www.sec.gov/Archives/edgar/data/316709/000031670926000009/schw-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-25 · accession 0000316709-26-000009 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000316709.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 23,921,000,000 USD | 2025 | verified | | Net income | 8,852,000,000 USD | 2025 | verified | | Assets | 490,995,000,000 USD | 2025 | verified | | Free cash flow | 8,763,000,000 USD | 2025 | computed | | Net margin | 37.01% | 2025 | computed | | Revenue YoY | +22.01% | 2025 | computed | | ROE | 17.91% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. Peer groups: [Brokers, exchanges, and market infrastructure](/compare/brokers-exchanges/) · SIC 6211 Security Brokers, Dealers & Flotation Companies No market price, no rating, no forecast on this site. Not investment advice. ## Peer comparisons including SCHW - Brokers, exchanges, and market infrastructure: [peer review](/compare/brokers-exchanges/) · [market-risk page](/compare/brokers-exchanges/risk/) ### Peer percentile fingerprint | Ratio | SCHW | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 37.0% | 14.8% | 89 | 19 | | Revenue growth | 22.0% | 14.4% | 78 | 19 | | FCF margin | 36.6% | 14.7% | 86 | 15 | | ROE | 17.9% | 15.1% | 61 | 19 | | ROA | 1.8% | 1.8% | 50 | 19 | | Liabilities / equity | 8.93 | 6.06 | 72 | 19 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6211 Security Brokers, Dealers & Flotation Companies, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 23921000000 | USD | 2025 | 2026-02-25 | | Net income | 8852000000 | USD | 2025 | 2026-02-25 | | Assets | 490995000000 | USD | 2025 | 2026-02-25 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000316709.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 7,478,000,000 | 8,618,000,000 | 10,132,000,000 | 10,721,000,000 | 11,691,000,000 | 18,520,000,000 | 20,762,000,000 | 18,837,000,000 | 19,606,000,000 | 23,921,000,000 | | Net income | 1,889,000,000 | 2,354,000,000 | 3,507,000,000 | 3,704,000,000 | 3,299,000,000 | 5,855,000,000 | 7,183,000,000 | 5,067,000,000 | 5,942,000,000 | 8,852,000,000 | | Diluted EPS | 1.31 | 1.61 | 2.45 | 2.67 | 2.12 | 2.83 | 3.50 | 2.54 | 2.99 | 4.65 | | Operating cash flow | 3,603,000,000 | -839,000,000 | 12,456,000,000 | 9,325,000,000 | 6,852,000,000 | 2,118,000,000 | 2,057,000,000 | 19,587,000,000 | 2,670,000,000 | 9,311,000,000 | | Capital expenditures | 346,000,000 | 400,000,000 | 570,000,000 | 708,000,000 | 631,000,000 | 916,000,000 | 971,000,000 | 700,000,000 | 620,000,000 | 548,000,000 | | Dividends paid | 486,000,000 | 592,000,000 | 787,000,000 | 1,060,000,000 | 1,280,000,000 | 1,822,000,000 | 2,110,000,000 | 2,276,000,000 | 2,275,000,000 | 2,329,000,000 | | Share buybacks | 0.00 | 0.00 | 1,000,000,000 | 2,220,000,000 | 0.00 | 0.00 | 3,395,000,000 | 2,842,000,000 | 0.00 | 7,346,000,000 | | Assets | 223,383,000,000 | 243,274,000,000 | 296,482,000,000 | 294,000,000,000 | 549,009,000,000 | 667,270,000,000 | 551,772,000,000 | 493,178,000,000 | 479,843,000,000 | 490,995,000,000 | | Liabilities | 206,962,000,000 | 224,749,000,000 | 275,812,000,000 | 272,260,000,000 | 492,949,000,000 | 611,009,000,000 | 515,164,000,000 | 452,220,000,000 | 431,468,000,000 | 441,570,000,000 | | Stockholders' equity | 16,421,000,000 | 18,525,000,000 | 20,670,000,000 | 21,745,000,000 | 56,060,000,000 | 56,261,000,000 | 36,608,000,000 | 40,958,000,000 | 48,375,000,000 | 49,425,000,000 | | Cash and cash equivalents | 10,828,000,000 | 14,217,000,000 | 27,938,000,000 | 29,345,000,000 | 40,348,000,000 | 62,975,000,000 | 40,195,000,000 | 43,337,000,000 | 42,083,000,000 | 46,030,000,000 | | Free cash flow | 3,257,000,000 | -1,239,000,000 | 11,886,000,000 | 8,617,000,000 | 6,221,000,000 | 1,202,000,000 | 1,086,000,000 | 18,887,000,000 | 2,050,000,000 | 8,763,000,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 25.26% | 27.31% | 34.61% | 34.55% | 28.22% | 31.61% | 34.60% | 26.90% | 30.31% | 37.01% | | Return on equity | 11.50% | 12.71% | 16.97% | 17.03% | 5.88% | 10.41% | 19.62% | 12.37% | 12.28% | 17.91% | | Return on assets | 0.85% | 0.97% | 1.18% | 1.26% | 0.60% | 0.88% | 1.30% | 1.03% | 1.24% | 1.80% | | Liabilities / equity | 12.60 | 12.13 | 13.34 | 12.52 | 8.79 | 10.86 | 14.07 | 11.04 | 8.92 | 8.93 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000316709.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.99 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.83 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.64 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 4,606,000,000 | 1,125,000,000 | 0.56 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 4,459,000,000 | 1,045,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 4,740,000,000 | 1,362,000,000 | 0.68 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 4,690,000,000 | 1,332,000,000 | 0.66 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 4,847,000,000 | 1,408,000,000 | 0.71 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 5,329,000,000 | 1,840,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 5,599,000,000 | 1,909,000,000 | 0.99 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 5,851,000,000 | 2,126,000,000 | 1.08 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 6,135,000,000 | 2,358,000,000 | 1.26 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 6,336,000,000 | 2,459,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 6,482,000,000 | 2,479,000,000 | 1.37 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 7,072,000,000 | 2,800,000,000 | 1.54 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from SCHW's latest 10-K: [/company/SCHW/business/](/company/SCHW/business/). ## Risk Factors Verbatim Item 1A Risk Factors from SCHW's latest 10-K: [/company/SCHW/risk-factors/](/company/SCHW/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/316709/000031670926000031/schw-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-07 Report date: 2026-06-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations INTRODUCTION The Charles Schwab Corporation (CSC) is a savings and loan holding company. CSC engages, through its subsidiaries (collectively referred to as Schwab or the Company), in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. Principal business subsidiaries of CSC include the following: •Charles Schwab & Co., Inc. (CS&Co), incorporated in 1971, a securities broker-dealer; •Charles Schwab Bank, SSB (CSB), our principal banking entity; and •Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds (Schwab Funds®) and for Schwab’s exchange-traded funds (Schwab ETFs). Unless otherwise indicated, the terms “Schwab,” “the Company,” “we,” “us,” or “our” mean CSC together with its consolidated subsidiaries. Schwab provides financial services to individuals and institutional clients through two segments – Investor Services and Advisor Services. 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. The Advisor Services segment provides custodial, trading, banking and trust, and support services to independent registered investment advisors (RIAs), independent retirement advisors, and recordkeepers. Schwab was founded on the belief that all Americans deserve access to a better investing experience. Although much has changed in the intervening years, our purpose remains clear – to champion every client’s goals with passion and integrity. Guided by this purpose and our vision of creating the most trusted leader in investment services, management has adopted a strategy described as “Through Clients’ Eyes.” This strategy emphasizes placing clients’ perspectives, needs, and desires at the forefront. Because investing plays a fundamental role in building financial security, we strive to deliver a better investing experience for our clients – individual investors and the people and institutions who serve them – by disrupting longstanding industry practices on their behalf and providing superior service. We also aim to offer a broad range of products and solutions to meet client needs with a focus on transparency, value, and trust. In addition, management works to couple Schwab’s scale and resources with ongoing expense discipline to keep costs low and ensure that products and solutions are affordable as well as responsive to client needs. In combination, these are the key elements of our “no trade-offs” approach to serving investors. We believe that following this strategy is the best way to maximize our market valuation and stockholder returns over time. Management estimates that investable wealth in the United States (U.S.) (consisting of assets in defined contribution, retail wealth management and brokerage, and RIA channels, along with bank deposits) currently exceeds $90 trillion, which means the Company’s $13.08 trillion in client assets leaves substantial opportunity for growth. Our strategy is based on the principle that developing trusted relationships will translate into more assets from both new and existing clients, ultimately driving more revenue, and along with expense discipline and thoughtful capital management, will generate earnings growth and build long-term stockholder value. This Management’s Discussion and Analysis should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (2025 Form 10-K). On our website, https://www.aboutschwab.com, we post the following filings after they are electronically filed with or furnished to the Securities and Exchange Commission (SEC or Commission): annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934. In addition, we post to the website the Dodd-Frank stress test results, our regulatory capital disclosures based on Basel III, our average liquidity coverage ratio (LCR), and our average net stable funding ratio (NSFR). The SEC maintains a website at https://www.sec.gov that contains reports, proxy statements, and other information that we file electronically with the Commission. - 1 - THE CHARLES SCHWAB CORPORATION Management’s Discussion and Analysis of Financial Condition and Results of Operations (Tabular Amounts in Millions, Except Ratios, or as Noted) FORWARD-LOOKING STATEMENTS In addition to historical information, this Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are identified by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may,” “estimate,” “appear,” “could,” “would,” “aim,” “maintain,” “continue,” “seek,” and other similar expressions. In addition, any statements that refer to expectations, strategy, objectives, projections, or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements, which reflect management’s expectations and objectives as of the date hereof, are based on the best judgment of Schwab’s senior management. These statements relate to, among other things: •Maximizing our market valuation and stockholder returns over time; and our belief that developing trusted relationships will translate into more client assets which drives revenue and, along with expense discipline and thoughtful capital management, generates earnings growth and builds stockholder value (see Introduction in Part I – Item 2); •Industry and competitive trends including artificial intelligence, digital assets, private company securities and other alternative investments; •The Company’s spot crypto trading offer (see Overview in Part I – Item 2); •The integration of Forge Global Holdings, Inc. and its private market capabilities (see Overview in Part I – Item 2); •Estimates of market opportunity (see Introduction in Part I – Item 2); •Growth of our client base and our business, strong client engagement, sustained demand for the Company’s offerings and solutions, and strategic initiatives (see Overview in Part I – Item 2); •Capital expenditures and expense management (see Results of Operations in Part I – Item 2); •SEC transaction fee increases (see Results of Operations in Part I – Item 2); •Net interest revenue, client cash allocation, and adjustment of rates paid on client-related liabilities (see Results of Operations in Part I – Item 2); •Wholesale funding and funding strategy (see Results of Operations in Part I – Item 2, and Liquidity Risk in Part I – Item 2); •Management of interest rate risk; modeling and assumptions, the impact of changes in interest rates on net interest margin and revenue, bank deposit account fee revenue, economic value of equity (EVE), and liability and asset duration (see Risk Management in Part I – Item 2); •Sources and uses of liquidity (see Liquidity Risk in Part I – Item 2); •Capital management; long-term operating objective; and uses of capital and return of excess capital to stockholders (see Capital Management in Part I – Item 2); •The expected impact of proposed and final rules (see Current Regulatory and Other Developments in Part I – Item 2); •The likelihood of indemnification and guarantee payment obligations and clients failing to fulfill contractual obligations (see Commitments and Contingencies in Part I – Item 1 – Financial Information – Notes to Condensed Consolidated Financial Statements (Item 1) – Note 11, and Financial Instruments Subject to Off-Balance Sheet Credit Risk in Item 1 – Note 13); and •The outcome and impact of legal proceedings and regulatory matters (see Legal Proceedings in Part II – Item 1, and Commitments and Contingencies in Item 1 – Note 11). Achievement of these expectations and objectives is subject to certain risks and uncertainties that could cause actual results to differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q or, in the case of documents incorporated by reference, as of the date of those documents. Important factors that may cause actual results to differ include, but are not limited to: •General economic and market conditions, including the level of interest rates, equity market valuations and volatility; •The impact of new and emerging technologies; •Our ability to attract and retain clients, develop trusted relationships, and grow client assets; •Client use of our advisory and lending solutions and other products and services; •The level of client assets, including cash balances; •Client cash allocations and sensitivity to deposit rates; •Competitive pressure on pricing, including deposit rates; - 2 - THE CHARLES SCHWAB CORPORATION Management’s Discussion and Analysis of Financial Condition and Results of Operations (Tabular Amounts in Millions, Except Ratios, or as Noted) •The level and mix of client trading activity, including daily average trades (DATs), margin balances, and balance sheet cash; •Regulatory guidance and adverse impacts from new or changed legislation, rulemaking or regulatory expectations; •Capital and liquidity needs and management; •Our ability to manage expenses; •Our ability to attract and retain talent; •Our ability to develop and launch new and enhanced products, services, and capabilities, as well as enhance our infrastructure, in a timely and successful manner; •Our ability to support client activity levels; •Increased compensation and other costs; •Real estate and workforce decisions; •The timing and scope of technology projects; •Balance sheet positioning relative to changes in interest rates; •Interest-earning asset mix and growth; •Our ability to access funding sources and the cost of funding; •Prepayment levels for mortgage-backed securities; •Regulatory and legislative developments; •Adverse developments in litigation or regulatory matters and any related charges; and •Potential breaches of contractual terms for which we have indemnification and guarantee obligations. Certain of these factors, as well as general risk factors affecting the Company, are discussed in greater detail in Part I – Item 1A – Risk Factors in the 2025 Form 10-K. - 3 - THE CHARLES SCHWAB CORPORATION Management’s Discussion and Analysis of Financial Condition and Results of Operations (Tabular Amounts in Millions, Except Ratios, or as Noted) OVERVIEW Management focuses on several client activity and financial metrics in evaluating Schwab’s financial position and operating performance. Results for the second quarter and first six months of 2026 and 2025 are as follows: [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/316709/000031670926000009/schw-20251231.htm Complete FY 2025 MD&A: /company/SCHW/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-25 Report date: 2025-12-31 Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations FORWARD-LOOKING STATEMENTS In addition to historical information, this Annual Report on Form 10-K contains “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are identified by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “prioritize,” “will,” “may,” “estimate,” “appear,” “could,” “would,” “expand,” “aim,” “maintain,” “continue,” “seek,” and other similar expressions. In addition, any statements that refer to expectations, strategy, objectives, projections, or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements, which reflect management’s expectations and objectives as of the date hereof, are based on the best judgment of Schwab’s senior management. These statements relate to, among other things: •Maximizing our market valuation and stockholder returns over time; and our belief that developing trusted relationships will translate into more client assets which drives revenue and, along with expense discipline and thoughtful capital management, generates earnings growth and builds stockholder value (see Business Strategy and Competitive Environment, and Products and Services in Part I – Item 1); •Industry and competitive trends including artificial intelligence, digital assets, private company securities and other alternative investments; •The Company’s plan to provide increased access for clients to trade in digital assets including select cryptocurrencies (see Products and Services in Part I – Item 1); •The acquisition and integration of Forge and its private markets capabilities (see Business Acquisition in Part I – Item 1; Overview in Part II – Item 7, and Results of Operations in Part II – Item 7); •Capital expenditures and expense management (see Results of Operations in Overview and Results of Operations – Total Expenses Excluding Interest in Part II – Item 7); •Net interest revenue, client cash allocation behavior, and adjustment of rates paid on client-related liabilities (see Results of Operations – Net Interest Revenue in Part II – Item 7); •Wholesale funding and funding strategy (see Results of Operations in Part II – Item 7, and Liquidity Risk in Part II – Item 7); •Management of interest rate risk; modeling and assumptions, the impact of changes in interest rates on net interest margin and revenue, bank deposit account fee revenue, economic value of equity (EVE), and liability and asset duration (see Risk Management in Part II – Item 7); •Sources and uses of liquidity (see Liquidity Risk in Part II – Item 7); •Capital management; long-term operating objective; and uses of capital and return of excess capital to stockholders (see Capital Management in Part II – Item 7; and Commitments and Contingencies in Part II – Item 8 – Note 15); •The expected impact of proposed and final rules (see Current Regulatory and Other Developments in Part II – Item 7 and Regulation in Part I – Item 1); •The expected impact of new accounting standards not yet adopted (see Summary of Significant Accounting Policies in Part II – Item 8 – Note 2); •The likelihood of indemnification and guarantee payment obligations and clients failing to fulfill contractual obligations (see Commitments and Contingencies in Part II – Item 8 – Note 15, and Financial Instruments Subject to Off-Balance Sheet Credit Risk – Note 17); and •The outcome and impact of legal proceedings and regulatory matters (see Commitments and Contingencies in Part II – Item 8 – Note 15, and Legal Proceedings in Part I – Item 3). Achievement of these expectations and objectives is subject to certain risks and uncertainties that could cause actual results to differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K or, in the case of documents incorporated by reference, as of the date of those documents. Important factors that may cause actual results to differ include, but are not limited to: •General economic and market conditions, including the level of interest rates, equity market valuations and volatility; •The impact of new and emerging technologies; •Our ability to attract and retain clients, develop trusted relationships, and grow client assets; •Client use of our advisory and lending solutions and other products and services; - 24 - THE CHARLES SCHWAB CORPORATION Management’s Discussion and Analysis of Financial Condition and Results of Operations (Tabular Amounts in Millions, Except Ratios, or as Noted) •The level of client assets, including cash balances; •Client cash allocations and sensitivity to deposit rates; •Competitive pressure on pricing, including deposit rates; •The level and mix of client trading activity, including daily average trades, margin balances, and balance sheet cash; •Regulatory guidance and adverse impacts from new or changed legislation, rulemaking or regulatory expectations; •Capital and liquidity needs and management; •Our ability to manage expenses; •Our ability to attract and retain talent; •Our ability to develop and launch new and enhanced products, services, and capabilities, as well as enhance our infrastructure, in a timely and successful manner; •Management’s ability to close the acquisition of Forge on the anticipated terms and timing; •Our ability to monetize client assets; •Our ability to support client activity levels; •Increased compensation and other costs; •Real estate and workforce decisions; •The timing and scope of technology projects; •Balance sheet positioning relative to changes in interest rates; •Interest-earning asset mix and growth; •Our ability to access funding sources; •Prepayment levels for mortgage-backed securities; •Balance sheet positioning relative to changes in interest rates; •Regulatory and legislative developments; •Adverse developments in litigation or regulatory matters and any related charges; and •Potential breaches of contractual terms for which we have indemnification and guarantee obligations. Certain of these factors, as well as general risk factors affecting the Company, are discussed in greater detail in Risk Factors in Part I – Item 1A. GLOSSARY OF TERMS Active brokerage accounts: Brokerage accounts with activity within the preceding 270 days. Accumulated Other Comprehensive Income (AOCI): A component of stockholders’ equity which primarily includes unrealized gains and losses on available for sale (AFS) securities and securities transferred from the AFS category to the held to maturity (HTM) category. Asset-backed securities: Debt securities backed by financial assets such as loans or receivables. Assets receiving ongoing advisory services: Market value of all client assets custodied at the Company under the guidance of an independent advisor or enrolled in one of Schwab’s managed investing solutions at the end of the reporting period. Bank deposit account balances (BDA balances): Clients’ uninvested cash balances held off-balance sheet in deposit accounts at unconsolidated third-party financial institutions, pursuant to the 2023 IDA agreement or agreements with other third-party financial institutions. Average BDA balances represent the daily average balance for the reporting period. Basel III: Global regulatory standards on bank capital adequacy and liquidity issued by the Basel Committee on Banking Supervision. Basis point: One basis point equals 1/100th of 1%, or 0.01%. Client assets: The market value, as of the end of the reporting period, of all client assets in our custody, BDA balances, and proprietary products, which includes both cash and securities. Average client assets are the daily average client asset balance for the reporting period. Client cash as a percentage of client assets: Calculated as the value, at the end of the reporting period, of all money market fund balances, bank deposits excluding brokered CDs issued by CSB, Schwab One® balances, BDA balances, and certain cash equivalents divided by client assets. - 25 - THE CHARLES SCHWAB CORPORATION Management’s Discussion and Analysis of Financial Condition and Results of Operations (Tabular Amounts in Millions, Except Ratios, or as Noted) Common Equity Tier 1 (CET1) Capital: The sum of common stock and related surplus net of treasury stock, retained earnings, AOCI, and qualifying minority interests, less applicable regulatory adjustments and deductions. As a Category III banking organization, CSC has elected to exclude most components of AOCI from CET1 Capital. Common Equity Tier 1 Risk-Based Capital Ratio: The ratio of CET1 Capital to total risk-weighted assets as of the end of the period. Core net new client assets: Net new client assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion ($10 billion prior to 2025)) relating to a specific client, and activity from off-platform brokered CDs issued by CSB. These flows may span multiple reporting periods.  Customer Protection Rule: Refers to Rule 15c3-3 of the Securities Exchange Act of 1934. Daily Average Trades (DATs): Includes daily average revenue trades by clients, trades by clients in asset-based pricing relationships, commission-free trades, and allocated trades by investment advisors. Delinquency roll rates: The rates at which loans transition through delinquency stages, ultimately resulting in a loss. Schwab considers a loan to be delinquent if it is 30 days or more past due. Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act): Regulatory reform legislation containing numerous provisions which expanded prudential regulation of large financial services companies. Duration: Duration is typically used to measure the expected change in value of a financial instrument for a 1% change in interest rates, expressed in years. First Mortgages: Refers to first lien residential real estate mortgage loans. Full-time equivalent employees: Represents the total number of hours worked divided by a 40-hour work week for the following categories: full-time, part-time, and temporary employees and persons employed on a contract basis. High Quality Liquid Assets (HQLA): HQLA is defined by the Federal Reserve, but includes assets that are actively traded and readily convertible to cash in times of stress. Industry Fees: Includes fees collected from clients for certain securities transactions to offset, as applicable, charges assessed on the Company by SROs and foreign governments. Such charges include Section 31 fees, FINRA trading activity fees, options regulatory fees, proprietary index options fees, and foreign transaction tax on American Depositary Receipts. Interest-bearing liabilities: Primarily includes bank deposits, payables to brokerage clients, payables to brokers, dealers, and clearing organizations, Federal Home Loan Bank (FHLB) borrowings, other short-term borrowings, and long-term debt on which Schwab pays interest. Interest-earning assets: Primarily includes cash and cash equivalents, cash and investments segregated, receivables from brokerage clients, investment securities, and bank loans on which Schwab earns interest. Investment grade: Defined as a rating equivalent to a Moody’s Investors Service (Moody’s) rating of “Baa3” or higher, or a Standard & Poor’s Rating Group (Standard & Poor’s) or Fitch Ratings, Inc. (Fitch) rating of “BBB-” or higher. Liquidity Coverage Ratio (LCR): The ratio of HQLA to projected net cash outflows during a 30-day stress scenario. Loan-To-Value (LTV) ratio: Calculated as the principal amount of a loan divided by the value of the collateral securing the loan. Margin loans: Money bor [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/SCHW/mda/fy2025/ All MD&A years: /company/SCHW/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/SCHW/mda/fy2024/): filed 2025-02-26; accession 0000316709-25-000010 (https://www.sec.gov/Archives/edgar/data/316709/000031670925000010/schw-20241231.htm) - [FY 2023 MD&A](/company/SCHW/mda/fy2023/): filed 2024-02-23; accession 0000316709-24-000018 (https://www.sec.gov/Archives/edgar/data/316709/000031670924000018/schw-20231231.htm) - [FY 2022 MD&A](/company/SCHW/mda/fy2022/): filed 2023-02-24; accession 0000316709-23-000009 (https://www.sec.gov/Archives/edgar/data/316709/000031670923000009/schw-20221231.htm) - [FY 2021 MD&A](/company/SCHW/mda/fy2021/): filed 2022-02-24; accession 0000316709-22-000009 (https://www.sec.gov/Archives/edgar/data/316709/000031670922000009/schw-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6211 Security Brokers, Dealers & Flotation Companies) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [M2SL](/indicator/M2SL/): M2 Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/SCHW.md · JSON record: /company/SCHW.json · verified financials: /company/SCHW/financials.json / /company/SCHW/financials.csv · machine TOC for the whole site: /llms.txt