01—Abstract
Summary
Summary of the 10-Q filed November 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Charles Schwab Corporation (SCHW) reported a strong third quarter and first nine months of 2025, demonstrating significant growth across key financial and client metrics.
Total net revenues surged by 27%a year-over-year for the quarter and 23% year-to-date, driven by robust net interest revenue, which benefited from reduced bank supplemental funding and growth in lending activities. Asset management and administration fees also saw a healthy 13% increase, supported by higher money market fund balances and managed investing solutions. The company reported substantial net income growth, up 67% for the quarter and 56% year-to-date, translating into a significant improvement in diluted earnings per share (EPS), which grew 77% for the quarter and 62% year-to-date.
Client asset gathering remained strong, with core net new assets up 44% for the quarter and 34% year-to-date, coupled with an 18% increase in new brokerage accounts. The company also continued its capital return initiatives, repurchasing $2.7 billionb in common stock during the quarter and increasing its dividend by 8%. Management highlighted the strategic advantages of its 'Through Clients' Eyes' strategy, emphasizing client relationships as a driver of asset growth and revenue.
The acquisition of Forge Global Holdings, Inc. for approximately $660 millionc was announced, expected to enhance private market capabilities. Financially, Schwab significantly reduced its bank supplemental funding by $35.1 billion year-to-date, improving its funding profile.
Capital ratios remain strong, with the consolidated Tier 1 Leverage Ratio at 9.7%d as of September 30, 2025. The company appears well-positioned to navigate the evolving market landscape, leveraging its scale, client focus, and disciplined expense management.
02—Key points
Key Highlights
- Total net revenues increased significantly, up 27% year-over-year in Q3 2025 and 23% year-to-date, driven by strong net interest revenue and asset management fees.
- Net income grew substantially, up 67% for the quarter and 56% year-to-date, leading to a 77% increase in diluted EPS for the quarter and 62% year-to-date.
- Client asset gathering accelerated, with core net new assets up 44% in Q3 2025 and new brokerage accounts increasing by 18% year-over-year.
- The company significantly reduced bank supplemental funding by $35.1 billion (70%) year-to-date, strengthening its funding structure.
- Capital returns remained a priority, with $2.7 billion in common stock repurchased in Q3 2025 and an 8% increase in the quarterly dividend.
- Schwab announced the acquisition of Forge Global Holdings, Inc. for approximately $660 million to expand into private markets.
- Strong operational efficiency was demonstrated through expense growth (4-5%) that lagged revenue growth, improving pre-tax profit margins to 49.2% in Q3 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 7, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $6.13B$4.85B | +26.6% |
| Net Income | $2.36B$1.41B | +67.5% |
| EPS (Basic) | $1.26$0.71 | +77.5% |
| EPS (Diluted) | $1.26$0.71 | +77.5% |
| Shares Outstanding (Basic) | 1.81B1.83B | −1.3% |
| Shares Outstanding (Diluted) | 1.81B1.83B | −1.3% |
05—Questions
Frequently Asked Questions
What was the key driver of the substantial increase in net interest revenue?
The significant increase in net interest revenue was primarily driven by lower interest expense resulting from substantial paydowns of bank supplemental funding, combined with lower average rates paid on funding sources. This was further supported by growth in bank and margin lending balances and an increase in securities lending revenue.
How did Schwab's client asset gathering perform in the quarter?
Client asset gathering was robust. Core net new client assets increased by 44% to $137.5 billion in the third quarter of 2025 compared to the prior year period. The company also saw an 18% increase in new brokerage accounts, with active brokerage accounts reaching 38.0 million.
What is the outlook for expenses, and how is Schwab managing costs?
Total expenses excluding interest increased by 4% in the third quarter and 5% year-to-date, which is lower than the revenue growth. This indicates effective expense discipline. Management continues to invest in growth and client-serving capabilities while driving efficiencies. Key expense increases were noted in compensation, benefits, and professional services, partially offset by lower regulatory fees.
What is the significance of the Forge Global Holdings acquisition?
The acquisition of Forge Global Holdings, Inc. for approximately $660 million is expected to enhance Schwab's ability to meet the evolving needs of its growing client base by integrating Forge's private markets capabilities and trading marketplace.
06—Continue