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SCHW-PJ

The Charles Schwab Corporation

SCHW-PJ

The Charles Schwab Corporation • NYSE
$18.85 ▼ -0.48% (-0.09)
Market Cap $34.29 B
52w High $21.20
52w Low $18.33
Dividend Yield 1.11%
P/E 6.81
Volume 30.53K
Outstanding Shares 1.82B

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $7.041B ▲ $3.114B ▲ $2.358B ▲ 33.49% ▲ $1.26 ▲ $3.36B ▲
Q2-2025 $6.816B ▲ $3.048B ▼ $2.126B ▲ 31.191% ▲ $1.09 ▲ $3.146B ▲
Q1-2025 $6.65B ▼ $3.144B ▲ $1.909B ▲ 28.707% ▲ $0.99 ▲ $2.802B ▲
Q4-2024 $6.651B ▲ $3.024B ▲ $1.84B ▲ 27.665% ▲ $0.94 ▲ $2.659B ▲
Q3-2024 $6.553B $3.005B $1.408B 21.486% $0.71 $2.203B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $92.569B ▼ $465.255B ▲ $415.871B ▲ $49.384B ▼
Q2-2025 $99.582B ▼ $458.936B ▼ $409.485B ▼ $49.451B ▼
Q1-2025 $109.466B ▼ $462.903B ▼ $413.392B ▼ $49.511B ▲
Q4-2024 $124.699B ▲ $479.843B ▲ $431.468B ▲ $48.375B ▲
Q3-2024 $124.68B $466.055B $418.84B $47.215B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $2.358B ▲ $538M ▼ $6.143B ▼ $-7.385B ▲ $-704M ▲ $393M ▼
Q2-2025 $2.126B ▲ $3.177B ▼ $9.076B ▼ $-18.665B ▲ $-6.412B ▼ $3.049B ▼
Q1-2025 $1.909B ▲ $6.359B ▲ $10.47B ▲ $-20.362B ▼ $-3.533B ▼ $6.242B ▲
Q4-2024 $1.84B ▲ $-10.827B ▼ $7.734B ▼ $1.604B ▲ $-1.489B ▼ $-11.081B ▼
Q3-2024 $1.408B $19.098B $8.516B $-7.726B $19.888B $18.97B

Revenue by Products

Product Q3-2024Q4-2024Q1-2025Q2-2025
Advisor Services
Advisor Services
 $1.06Bn ▲$2.48Bn ▲$1.15Bn ▼$1.22Bn ▲
Investor Services
Investor Services
 $3.79Bn ▲$11.77Bn ▲$4.45Bn ▼$4.63Bn ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown strongly over the past five years, roughly more than doubling from the start of the period, which signals that Schwab continues to attract assets and activity across its platform. Profitability is healthy, with solid margins, but earnings have been more up‑and‑down than revenue. Income and earnings per share peaked a couple of years ago, then dipped as the firm worked through interest‑rate volatility, funding costs, and the integration of TD Ameritrade. More recently, profits have begun to recover, though they are still below their best recent level. Overall, the income statement shows a large, profitable franchise with strong underlying economics, but also visible sensitivity to market conditions and interest rates.

Balance Sheet

Balance Sheet The balance sheet is large and bank‑like, reflecting Schwab’s role as both a broker and a bank. Total assets swelled earlier in the period and then gradually shrank, as the firm repositioned its balance sheet in response to higher interest rates and client cash movements. Debt levels have moved up meaningfully over time, though they eased somewhat in the most recent year. Shareholders’ equity dropped when rising rates hit the value of fixed‑income holdings, but has been rebuilding since. In simple terms, Schwab today is more leveraged than it was several years ago, yet still retains a substantial capital base. The key watchpoints are funding mix, interest‑rate exposure, and ongoing progress in rebuilding capital strength.

Cash Flow

Cash Flow Cash flow has been quite volatile, which is common for a financial institution where client cash and securities flows can swing widely from year to year. Underneath that noise, Schwab has generally produced positive cash from operations and free cash flow, supporting ongoing investment and balance‑sheet flexibility. Capital spending has been modest relative to the size of the business and fairly steady, reflecting ongoing investment in technology and platforms rather than heavy physical build‑outs. The standout year of very strong operating cash flow looks more like a one‑off driven by rate and balance‑sheet dynamics than a new baseline. Overall, cash generation appears adequate, but not smooth, and closely tied to the interest‑rate and market environment.

Competitive Edge

Competitive Edge Schwab holds a very strong competitive position in U.S. retail brokerage and advisory services. Its scale is a major asset: the firm manages trillions in client assets, which lets it spread technology and service costs over a very broad base and maintain a low‑cost offering. That scale, combined with a long‑established brand, helps attract and retain both individual investors and independent advisors. The acquisition of TD Ameritrade has deepened its moat, especially with the thinkorswim trading platform and access to more active traders. Schwab’s revenues are diversified across interest income, asset‑based fees, and other services, which adds resilience compared with pure trading‑driven models. The main strategic risks are competition from other large platforms, pressure to keep fees and pricing low, and exposure to shifts in interest rates and client cash behavior. Even with those pressures, Schwab’s combination of brand, scale, and breadth of services gives it a clear leadership position in its space.

Innovation and R&D

Innovation and R&D Instead of traditional lab research, Schwab’s “R&D” shows up as technology and platform investment. The company has a long history of disrupting its own industry: discount brokerage, early online trading, and later zero‑commission trading all came from a willingness to rethink the standard model. In recent years, Schwab has poured money into digital onboarding, mobile and web platforms, and automated investing through its robo‑advisory services. The integration of TD Ameritrade’s thinkorswim platform significantly boosted its capabilities for active traders. Schwab is also using artificial intelligence to streamline service interactions and personalize client experiences. Looking ahead, the firm is pushing into 24‑hour trading access, expanding tools and products for thematic and sustainable investing, and exploring private markets access through acquisitions. Overall, Schwab appears committed to continuous product and technology improvement, using its large client base and data to refine offerings over time.

Summary

Schwab today stands as a large, profitable financial services platform with strong revenue growth over the past several years and margins that, while pressured at times, remain attractive. Earnings have been bumpy, reflecting sensitivity to interest rates, funding costs, and integration work, but the recent trend shows some recovery from the prior dip. The balance sheet is sizable and more leveraged than in the past, with earlier rate shocks reflected in lower equity that is now being rebuilt. Cash flows are positive over time but volatile year to year, a reminder that a broker‑bank’s reported cash generation is closely tied to market and rate dynamics. Strategically, Schwab benefits from a powerful combination of brand trust, scale, and product breadth, now reinforced by the TD Ameritrade acquisition. Its ongoing investments in technology, digital experiences, AI, and new product areas like expanded trading hours and private markets suggest it is actively defending and extending its moat. Key uncertainties revolve around interest‑rate cycles, client cash behavior, regulatory developments, and intense competition, but the company’s position within U.S. capital markets remains firmly entrenched.