Financial Data and Key Metrics Changes - Total net revenues reached a record high of $23.9 billion, up 22% year-over-year [24] - Adjusted earnings per share grew by 50% year-over-year to a record $4.87 [24] - Adjusted pre-tax profit margin expanded by nearly 800 basis points to 50% [24] - Organic growth rate of core net new assets (NNA) reached 5.1% [11] Business Line Data and Key Metrics Changes - Managed investing net flows grew by 36% over 2024, achieving a new record [3] - Bank lending balances reached an all-time high of $58 billion, representing a year-over-year increase of 28% [25] - Daily average trades reached a record 7.7 million per day for the year [8] Market Data and Key Metrics Changes - Clients opened 4.7 million new brokerage accounts, a 13% increase over 2024 [3] - The average retail client is now in their 40s, with nearly 60% of new clients under the age of 40 [12] - Gen Z investors comprised nearly a third of new retail client accounts opened in 2025 [12] Company Strategy and Development Direction - The company is focused on a holistic view of growth, emphasizing both attracting new clients and deepening relationships with existing clients [9] - Strategic investments in wealth services, lending, and trading capabilities are being made to enhance client offerings [14] - The acquisition of Forge aims to provide clients with access to alternative investments, enhancing the company's alternatives platform [19] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in sustaining momentum from 2025 into 2026, expecting total revenue growth of 9.5%-10.5% [30] - The company anticipates a slight pullback in trading volumes to approximately 7.4 million daily average trades for the full year 2026 [30] - Management highlighted the importance of capital return and maintaining strong capital levels to support long-term growth [27] Other Important Information - The company supported 1.9 billion trades and over 30 million calls to service centers, reflecting high client engagement [6] - The average response time for client service calls was under 30 seconds [7] - The company plans to invest in expanding branches and hiring more financial consultants to enhance client relationships [31] Q&A Session Summary Question: Balance sheet and asset remixing - Management indicated strong lending momentum in 2026 and plans to reinvest in the securities portfolio, primarily in U.S. Treasuries [38][39] Question: Alternatives platform engagement - The alternatives program is growing and attracting interest from higher net worth clients, with expectations for net new asset growth [41][44] Question: Growth trends in advisor services vs. investor services - Both segments are experiencing strong growth, with retail growth driven by younger demographics and increased engagement [47][50] Question: Lending offerings penetration - There is significant upside potential in the lending business, particularly with the pledged asset line capability [54][56] Question: Capital return assumptions - The capital return framework remains unchanged, with expectations for a 20%-30% payout of GAAP earnings [60][61]

Financial Data and Key Metrics Changes - Total net revenues reached a record high of $23.9 billion, up 22% year-over-year [4][21] - Adjusted earnings per share were $4.87, representing a 50% increase compared to the previous year [4][23] - The adjusted pre-tax profit margin expanded by nearly 800 basis points to 50% [23] Business Line Data and Key Metrics Changes - Managed investing net flows grew by 36% over 2024, achieving a new record [3][14] - Bank lending balances reached an all-time high of $58 billion, reflecting a 28% year-over-year increase [24] - Daily average trades reached a record of 7.7 million, with trading revenue increasing by 22% year-over-year [9][21] Market Data and Key Metrics Changes - The company attracted $519 billion in core net new assets (NNA), a 42% increase over the previous year [3][4] - The average retail client age has decreased to the 40s, with nearly a third of new retail client accounts opened by Gen Z investors [12][46] - The company ended the year with nearly $12 trillion in total client assets [9] Company Strategy and Development Direction - The company is focused on a holistic growth strategy, emphasizing both attracting new clients and deepening existing client relationships [10][12] - Significant investments have been made in wealth services, banking, and trading capabilities to enhance client offerings [13][14] - The acquisition of Forge aims to democratize private investing and expand access to alternative investments [5][18] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in sustaining momentum into 2026, with expectations of continued growth in NNA and client engagement [33] - The economic environment remains strong, with high market valuations, which has fueled record levels of client engagement [6][9] - The company anticipates total revenue growth of 9.5%-10.5% in 2026, with a focus on deepening relationships with existing clients [28][30] Other Important Information - The company has leveraged artificial intelligence to improve client service efficiency, with a 20% reduction in cost per account over the last five years [19] - The adjusted Tier-One Leverage Ratio finished the year at 7.1%, reflecting strong capital levels and a commitment to capital return [25][26] Q&A Session Summary Question: Balance sheet and asset remixing - Management highlighted strong lending momentum and plans for continued growth in lending opportunities, particularly in margin lending and bank products [35][36] Question: Alternatives platform engagement - The alternatives program is growing, particularly among higher net worth clients, with significant interest in new product capabilities [39][40] Question: Growth trends between advisor services and investor services - Both advisor and retail services are experiencing strong growth, with a notable increase in younger investors and active traders [44][46] Question: Lending offerings penetration - There is significant upside potential in the lending business, with low penetration rates among existing clients indicating room for growth [51][52] Question: Capital return assumptions - The company plans to maintain a capital return framework that supports franchise growth, with expectations for a 20%-30% payout of GAAP earnings [55][56] Question: Tax-advantaged long-short strategies - The company sees growth potential in tax-advantaged strategies, which are being utilized by advisors for high net worth clients [59][60]