Charles Schwab (NYSE:SCHW) Earnings Call Presentation

Acquisition Overview - Schwab is acquiring Forge Global to enhance its presence in private markets[1, 41] - The acquisition aims to create a best-in-class experience for individual investors and RIAs in both public and private markets[10, 36] - The deal involves Schwab acquiring all outstanding common stock of Forge for $45 per share, equating to an implied equity value of $660 million[34] - The transaction is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions[34] Forge Global's Key Metrics - Forge operates a technology-enabled marketplace for trading shares in pre-IPO companies, founded in 2014[12] - Forge's platform has facilitated over $17 billion in private market transaction volume[11, 13] - The platform supports trading in over 625 private companies and has over 3 million unique users[11, 13] - Forge's private asset AUC (Assets Under Custody) is over $18 billion[13] - Forge's total revenue grew by 24% from Q2 2024 to Q2 2025[13] Market Trends and Opportunities - Industry trends indicate a growing interest in private markets due to companies staying private longer and a decline of approximately 85% in the number of IPOs per year since 2000[14, 15] - Median IPO valuations are up more than 3x versus 2000[15] - Private wealth capital allocated to alternatives is expected to reach approximately $13 trillion by 2032, representing a 13% CAGR (Compound Annual Growth Rate)[16, 19] Strategic Benefits for Schwab - The acquisition diversifies Schwab's revenue mix and supports long-term organic growth[38, 40] - It enhances Schwab's competitive positioning and evolves its offerings to retail and RIA clients[38, 40] - The acquisition strengthens Schwab's Workplace Services solution set[38, 40]