Charles Schwab reported its highest quarterly revenue ever, reaching $7.1 billion, a 21% increase from the previous year that surpassed Wall Street expectations. Adjusted earnings per share came in at $1.62, above the consensus estimate of around $1.55.
Financial Highlights and Trading Activity
Net income grew 32% to $2.8 billion, while client assets climbed 22% to a new peak of $13.08 trillion. Daily trades hit a record 11.9 million, up 57% year-over-year, and margin balances nearly doubled to $165.1 billion, indicating clients are engaging in larger trading positions.
Despite the volume surge, Schwab earned 19% less per trade at $1.64 compared to last year, meaning the 28% increase in trading revenue was driven by volume rather than higher fees. also net interest margin improved from 2.66% to 3.00%, reflecting recovery from the cash constraints experienced throughout 2023.
Rick Wurster, Schwab's CEO since January 2025, attributed the strong asset inflow to the firm's value proposition, noting the opening of 1.4 million new brokerage accounts and $120 billion in net core new assets during the quarter.
New Crypto Offering and Market Response
Schwab introduced direct Bitcoin and Ethereum trading for retail clients, shifting from previous access only through funds and futures. This move arrives as Bitcoin trades near $66,690, down 43% over the past year, while Ethereum is near $1,927, down 49%. Schwab is entering the crypto retail space later than competitors like Robinhood, which launched crypto trading in 2018, followed by Interactive Brokers and Fidelity.
The company also unveiled Portfolio Insights, an AI-powered tool summarizing clients' daily portfolio activity, and plans to add access to Cboe’s prediction markets soon.
Following the earnings release, Schwab shares remained nearly unchanged, trading around $102.91. Analysts suggest that record numbers were anticipated and already factored in by investors, with future growth potentially hinging on developments in crypto and AI offerings.
This information is provided for informational purposes and does not constitute financial advice.
