Charles Schwab (SCHW) Q2 2025 earnings summary

Strategic and Financial Highlights

• Core net new assets reached $218 billion in H1 2025, up 39% year-over-year, with $80.3 billion added in Q2 and 1.1 million new brokerage accounts opened, reflecting strong client engagement and growth across wealth, banking, trading, and asset management.

• Daily average trades hit 7.6 million in Q2, up 38% year-over-year, margin balances were $83.4 billion, and managed investing net flows rose 37% year-over-year.

• Total Q2 revenue was $5.9 billion, up 25% year-over-year, with adjusted EPS at $1.14 (up 56%) and GAAP EPS at $1.08 (up 64%); pre-tax profit margin was 50.1% (adjusted) and 47.9% (GAAP).

• Client interactions across all channels rose 17% year-over-year, with margin loans up 16% and Pledged Asset Line balances at a record $21 billion.

• Over $25 billion in client assets are in crypto ETPs, representing 20% of the total market, with plans to launch spot trading for Bitcoin and Ethereum.

Growth Initiatives and Client Trends

• Retail business attracted 606,000 new-to-firm households in H1, with 30% of new clients under 30 and nearly 60% under 40; advanced trading behavior is rising among new clients.

• Advisor ProDirect launched for new RIAs, and discretionary wealth management capabilities expanded; retail alternatives platform and estate planning tools are being enhanced.

• AI investments include 40 use cases in development, aimed at improving client service and internal efficiency.

• Schwab Wealth Advisory and legacy Ameritrade client promoter scores are high and improving, with advisor services Easy Score at 93%.

• Attracted a diverse spectrum of individual investors and RIAs, with significant growth in new-to-firm retail households.

Financial Performance and Profitability

• Net income for Q2 2025 rose 60% year-over-year to $2.1 billion; diluted EPS up 64% to $1.08.

• Net interest revenue for Q2 2025 was $2.8 billion, up 31% year-over-year, mainly due to lower funding costs and growth in bank lending.

• Asset management and administration fees rose 14% to $1.6 billion in Q2 2025, reflecting growth in money market funds and managed solutions.

• Trading revenue increased 23% to $952 million, driven by higher order flow and commission revenue.

• Adjusted expenses rose 5% year-over-year, reflecting investments in strategic initiatives and higher client activity.