Charles Schwab (NYSE:SCHW) Q4 2025 Earnings call January 21, 2026 08:30 AM ET Company ParticipantsMike Verdeschi - CFOJeff Edwards - Head of Investor RelationsRick Wurster - President and CEOConference Call ParticipantsBill Katz - AnalystBrennan Hawken - AnalystStephen Turek - AnalystKen Worthington - AnalystAlex Blostein - Lead Capital Markets AnalystBrian Bedell - AnalystDevin Ryan - AnalystDan Fannon - AnalystBenjamin Budish - AnalystMike Brown - AnalystJeff EdwardsGood morning, everyone, and welcome to ...

Summary of Charles Schwab's 2025 Update Call Company Overview - **Company**: Charles Schwab (NYSE:SCHW) - **Date of Call**: October 16, 2025 - **Key Speakers**: Lauren Gaspar (Managing Director of Investor Relations), Rick Worcester (President and CEO), Mike Verdeschi (CFO) Key Points Financial Performance - **Third Quarter Results**: - Revenue increased by 27% year over year to $6.1 billion, marking the fourth consecutive quarter of double-digit growth across all major line items [27] - Adjusted earnings per share reached a record $1.31, a 70% increase compared to Q3 2024 [31] - Adjusted pretax margins exceeded 51% [27] Client Growth and Engagement - **New Accounts**: - 1.1 million new brokerage accounts opened in Q3, with $138 billion in core net new assets (NNA), a 44% increase year over year [4][7] - Year-to-date core NNA reached nearly $356 billion [4] - **Client Engagement**: - Daily average trades remained above $7 million for three consecutive quarters, with margin balances at a record $97.2 billion [5][32] - Client satisfaction scores reached an all-time high of 88% [15] Market Position and Strategy - **Competitive Position**: - Schwab serves 45 million client accounts with $11.59 trillion in assets, leading in RIA custodial assets and retail trading [13] - The firm is focused on deepening relationships with clients, particularly former Ameritrade clients, who have shown improved satisfaction scores [9][10] Product and Service Innovations - **Wealth and Lending Solutions**: - Managed investing net flows increased by 40% year over year, with significant contributions from legacy Ameritrade clients [10] - Bank lending balances rose by 24%, with pledged asset line (PAL) balances reaching record levels [10] - **Crypto Offerings**: - Schwab plans to launch spot crypto trading in 2026, starting with Bitcoin and Ethereum, aiming to attract younger investors [12][57] - The firm currently holds approximately 20% of the spot crypto ETP market [11] Operational Efficiency - **Cost Management**: - Adjusted expenses increased by 5% year over year, reflecting ongoing investments in growth and efficiency [30] - The firm is utilizing AI to enhance service efficiency and reduce operational costs [23] Future Outlook - **Market Conditions**: - The firm anticipates continued strong client engagement and revenue growth, despite potential shifts in the macroeconomic environment [36][37] - Interest rates are expected to trend lower, which may influence cash inflows and overall earnings [53][84] Strategic Focus Areas - **Growth and Client Relationships**: - Schwab is committed to deepening relationships with clients and enhancing service offerings [20] - **Efficiency and Scale**: - The firm aims to maintain low costs while reinvesting in growth initiatives [23] - **Employee Investment**: - Continued investment in talent and culture to attract and retain top industry professionals [25] Additional Insights - **Younger Investor Engagement**: - One-third of new retail households at Schwab are Gen Z investors, indicating a shift towards younger demographics [17] - The firm is leveraging social media and educational content to engage younger clients effectively [18] - **Advisor Services Growth**: - The advisor business is thriving, with significant NNA growth attributed to both existing and new advisors transitioning to Schwab [44][46] This summary encapsulates the key insights and data points from Charles Schwab's 2025 update call, highlighting the company's strong financial performance, client engagement strategies, and future growth outlook.

Summary of Charles Schwab (SCHW) 2025 Update / Briefing Company Overview - **Company**: Charles Schwab (SCHW) - **Date of Update**: July 18, 2025 - **Key Speakers**: Rick Worcester (President and CEO), Mike Pradeshi (CFO), Jeff Edwards (Head of Investor Relations) Key Industry Insights - **Core Net New Assets**: Reached $218 billion in the first half of 2025, up 39% year-over-year [4][23] - **New Brokerage Accounts**: 1.1 million new accounts opened in Q2 2025, an 11% increase from 2024 [10] - **Daily Average Trades**: Increased to 7.6 million in Q2 2025, a 38% year-over-year growth [11][25] - **Margin Balances**: Reached $83.4 billion, following record trading days [5][28] - **Revenue Growth**: Total revenue for Q2 2025 was $5.9 billion, up 25% year-over-year [11][25] - **Earnings Per Share**: Adjusted EPS for Q2 2025 was $1.14, a 56% increase from the previous year [11][27] Strategic Focus Areas 1. **Client Engagement**: Schwab is deepening relationships with clients, leading to increased engagement across wealth, banking, trading, and asset management [5][9] 2. **Digital Assets**: Schwab is a leader in crypto ETPs with over $25 billion in client assets, representing about 20% of the total market. Plans to launch spot trading for Bitcoin and Ethereum are underway [15][42] 3. **Growth Initiatives**: The company is focused on attracting net new assets and enhancing client services through various strategic initiatives, including the launch of new products and capabilities [16][21] Financial Performance Highlights - **Revenue Drivers**: - Net interest revenue increased by 31% year-over-year due to reduced high-cost borrowings and increased client transactional activity [25] - Asset management and administration fees reached $1.6 billion, a 14% increase year-over-year [25] - **Expense Management**: Adjusted expenses were up 5% year-over-year, reflecting investments in growth and efficiency [26] - **Capital Return**: The company returned $5.3 billion in capital through dividends and stock repurchases in the first half of 2025 [30] Future Outlook - **2025 Financial Scenario**: - Anticipated total revenue growth of 18.5% to 19.5% for the full year [32] - Expected net interest margin of 2.65% to 2.75% [32] - Projected adjusted earnings in the range of $4.55 to $4.65 per share, indicating potential year-over-year growth in the high 40% range [34] - **Market Conditions**: The company is prepared to navigate a range of macroeconomic factors that may influence client cash allocations and trading volumes [29][31] Additional Insights - **Client Demographics**: A significant portion of new clients are younger investors, with nearly 60% of new to firm clients under 40 years old [14] - **AI Investments**: Schwab is investing in AI to enhance client service and operational efficiency, with 40 AI use cases in development [19] - **Tokenization and Digital Assets**: Schwab is exploring opportunities in tokenization and stablecoins, aiming to provide clients with a trusted platform for digital asset transactions [78][84] Conclusion - Schwab is positioned for continued growth through strategic investments in client services, digital assets, and operational efficiency, while maintaining a strong financial performance and capital return strategy. The company remains committed to adapting to market changes and client needs, ensuring a robust long-term trajectory.