Charles Schwab (SCHW) Q3 2025 earnings summary

Strategic and Client Growth Highlights

• Opened 1.1 million new brokerage accounts in Q3, bringing total client accounts to 45.7 million, and attracted $137.5 billion in core net new assets, with year-to-date NNA at $356 billion.

• Client engagement remained high, with record wealth and lending flows, daily average trades above 7 million, and margin balances at a record $97.2 billion.

• Gen Z accounted for nearly one-third of new-to-firm retail households, reflecting success in attracting younger investors.

• Managed Investing net flows rose 40% year-over-year, and Pledged Asset Line originations increased by 77% versus 3Q24.

• Schwab Wealth Advisory achieved record flows and a Client Promoter Score of 85, while thinkorswim adoption among legacy clients rose 98% year-over-year.

Financial Performance and Guidance

• Q3 net revenues grew 27% year-over-year to $6.1 billion, with adjusted pre-tax margins above 51% and EPS up 70% to $1.31.

• Net income for Q3 2025 was $2.4 billion, up 67% year-over-year; diluted EPS was $1.26, up 77%.

• Asset management and administration fees reached a record $1.7 billion, up 13% year-over-year, and trading revenue rose 25%.

• Supplemental borrowings reduced to $14.8 billion, 85% below the May 2023 peak, and capital return year-to-date totaled $8.5 billion.

• Guidance for 2025 points to earnings 2% or more above the upper end of the July scenario, with continued strong client engagement and revenue growth.

Operational and Strategic Initiatives

• Investments in AI and digital tools are enhancing efficiency and client service, with Client Ease scores near all-time highs.

• Expansion of branch footprint and hiring of financial consultants to serve higher net worth clients.

• Continued focus on scale, efficiency, and the "brilliant basics" to maintain low cost-to-serve and reinvest in growth.

• Crypto offering to launch in first half of 2026, starting with Bitcoin and Ethereum, aiming to combine education, research, and risk management.

• Announced acquisition of Forge Global Holdings for $660 million to enhance private markets capabilities, expected to close in H1 2026.