Charles Schwab : Press release (schwab q1 2026 earnings release)

Published: 2026-04-16 07:38:15 ET SCHW

Published on 04/16/2026 at 07:38 am EDT

March Core Net New Assets Equal $79.7 Billion, Second Highest Month Ever

Robust Engagement Drove 1Q Net Revenues to a Record $6.5 Billion, Up 16% Year-Over-Year Record GAAP Earnings Per Share of $1.37; $1.43 Adjusted (1) - up 38% versus 1Q25

$2.5 billion, or earnings per share of $1.37. Excluding $143 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $2.6 billion and $1.43, respectively.

Client Driven Growth

"Schwab's strong business momentum continued into 2026 as investors

$140B opened 1.3 million new brokerage accounts and brought $140 billion of core net new assets to the firm during the first quarter. Excluding a

1Q26 Core planned mutual fund clearing deconversion, asset gathering totaled

Net New Assets $158 billion - an annualized growth rate of 5.4%."

President & CEO Rick Wurster

Deepen Client Relationships

"Clients continue to turn to us for more of their financial lives, helping

46% wealth and banking solutions reach record levels in 1Q. Led by Schwab

1Q26 Managed Investing Wealth AdvisoryTM, Managed Investing net flows grew 46% year-over-year Net Flows Growth while bank loans expanded 29% versus 1Q25 to $60.9 billion."

President & CEO Rick Wurster

Diversified Revenue Growth

"Schwab's diversified model delivered record results within an increasingly 16% uncertain macroeconomic environment. Driven by robust client engagement 1Q26 Revenue across our wealth, trading, and lending solutions, total first quarter revenue

Growth vs. 1Q25 increased 16% year-over-year to $6.5 billion."

CFO Mike Verdeschi

Opportunistic Capital Return

"During 1Q26, the company repurchased 24.3 million shares for $2.4 billion

$2.4B and increased its common stock dividend by 19%. These actions reflect

1Q26 Common Schwab's strong capital position as well as the sustained performance of the Stock Repurchases firm's through-the-cycle financial model."

CFO Mike Verdeschi

Total client assets increased 19% year-over-year to $11.77 trillion

Core net new assets totaled $140.0 billion, including a $17.5 billion outflow from a planned mutual fund clearing client deconversion; excluding this planned item, core net new assets for the quarter equaled $157.5 billion

New brokerage account openings equaled 1.3 million, pushing active brokerage accounts and total client accounts to

39.1 million and 47.2 million, respectively

Managed Investing Solutions net flows grew 46% versus 1Q25

Bank loan balances equaled $60.9 billion at March month-end, up 29% year-over-year

Margin loan balances increased 13% versus year-end 2025 to end the quarter at $126.7 billion - including $21.3 billion related to long/short strategies implemented by RIA clients (2)

Daily average trading volume reached a record 9.9 million - up 34% versus 1Q25

Launched the Schwab Teen InvestorTM Account, a unique and hands-on investing experience for young people ages 13-17

Closed Forge Global acquisition in early March

Schwab ranked #1 Overall Broker by StockBrokers.com, 2 years in a row (3)

Three Months Ended

March 31, %

Financial Highlights

2026

2025

Change

Net revenues (in millions)

$ 6,482

$ 5,599

16%

Net income (in millions)

GAAP

$ 2,479

$ 1,909

30%

Adjusted

$ 2,588

$ 2,008

29%

Diluted earnings per common share

GAAP

$ 1.37

$ .99

38%

Adjusted

$ 1.43

$ 1.04

38%

Pre-tax profit margin

GAAP

49.2%

43.8%

Adjusted

51.4%

46.2%

Return on average common

stockholders' equity (annualized) 23% 18%

Return on tangible

common equity (annualized) 40% 35%

Note: Items labeled "adjusted" are non-GAAP financial measures; further details are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.

Quarterly net revenues grew year-over-year by 16% to a record $6.5 billion

Net interest margin for the quarter was 2.88%

Client transactional sweep cash balances ended March at $461.5 billion, an increase of $7.8 billion versus the prior quarter-end, reflecting seasonality, organic growth, and client asset allocation decisions

Average interest-earning assets for the quarter equaled $437.7 billion, up 2% versus 1Q25

Asset management and administration fees grew by 15% year-over-year to $1.8 billion, powered by the firm's organic growth and investors' utilization of our wealth and asset management solutions

Trading revenue increased 20% versus 1Q25 due to record engagement

GAAP expenses for the quarter increased 5% year-over-year; excluding acquisition and integration-related costs and the amortization of acquired intangibles of $143 million, adjusted total expenses (1) were up 5% relative to 1Q25

Capital ratios across the firm remained strong - including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) equaling 8.9% and 6.8%, respectively

Increased the quarterly common stock dividend by 19% to $.32 per share

Repurchased 24.3 million shares of our common stock for $2.4 billion during the quarter

(1) Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.

(2) Client margin loans and short credits related to certain long/short strategies utilized by RIAs are excluded from interest-earning assets and company funding sources.

(3) The StockBrokers.com 2026 Annual Awards (https://www.stockbrokers.com/annual-awards-2026) were announced on January 27, 2026. Criteria, testing methodologies, and rankings were determined by StockBrokers.com. Companies were assessed across StockBrokers.com's 7 Primary Categories: Range of Investments, Advanced Trading, Mobile Trading Apps, Research, Education, Ease of Use, and Overall.

The company will host its Spring Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.

Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents.

This press release contains forward-looking statements relating to the company's business momentum, client relationships, capital position, and through-the-cycle financial model. These forward-looking statements reflect management's expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences are described in the company's most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company's website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission's website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 39.1 million active brokerage accounts, 5.8 million workplace plan participant accounts, 2.3 million banking accounts, and $11.77 trillion in client assets.

Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor ServicesTM. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.

MEDIA

Mayura Hooper, 415-667-1525 [email protected]

INVESTORS/ANALYSTS

Jeff Edwards, 817-854-6177 [email protected]

THE CHARLES SCHWAB CORPORATION

Three Months Ended March 31,

2026

2025

Net Revenues

Interest revenue

$ 3,962

$ 3,757

Interest expense

(818)

(1,051)

Net interest revenue

3,144

2,706

Asset management and administration fees

1,759

1,530

Trading revenue

1,089

908

Bank deposit account fees

295

245

Other

195

210

Total net revenues

6,482

5,599

Expenses Excluding Interest

Compensation and benefits

1,812

1,672

Professional services

303

269

Occupancy and equipment

285

274

Advertising and market development

101

Communications

163

153

Depreciation and amortization

201

217

Amortization of acquired intangible assets

132

130

Regulatory fees and assessments

Other

222

244

Total expenses excluding interest

3,294

3,144

Income before taxes on income

3,188

2,455

Taxes on income

709

546

Net Income

2,479

1,909

Preferred stock dividends and other

113

Net Income Available to Common Stockholders

$ 2,397

$ 1,796

Weighted-Average Common Shares Outstanding:

Basic

1,746

1,817

Diluted

1,752

1,822

Earnings Per Common Shares Outstanding:

Basic

$ 1.37

$ .99

Diluted

$ 1.37

$ .99

THE CHARLES SCHWAB CORPORATION

(Unaudited)

Q1-26 % change vs. vs.

Q1-25 Q4-25

2026

2025

(In millions, except per share amounts and as noted)

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

Net Revenues

Net interest revenue

16%

(1)%

$ 3,144

$ 3,172

$ 3,050

$ 2,822

$ 2,706

Asset management and administration fees

15%

1,759

1,733

1,673

1,570

1,530

Trading revenue

20%

1,089

1,066

995

952

908

Bank deposit account fees

20%

24%

295

238

247

245

Other

(7)%

54%

195

127

170

260

210

Total net revenues

16%

6,482

6,336

6,135

5,851

5,599

Expenses Excluding Interest

Compensation and benefits

11%

1,812

1,630

1,653

1,536

1,672

Professional services

13%

(12)%

303

344

293

291

269

Occupancy and equipment

(3)%

285

293

280

270

274

Advertising and market development

(12)%

101

115

101

108

Communications

15%

163

142

149

176

153

Depreciation and amortization

(7)%

(2)%

201

206

212

215

217

Amortization of acquired intangible assets

132

127

128

130

Regulatory fees and assessments

(16)%

21%

Other

(9)%

(6)%

222

237

240

247

244

Total expenses excluding interest

3,294

3,156

3,114

3,048

3,144

Income before taxes on income

30%

3,188

3,180

3,021

2,803

2,455

Taxes on income

30%

(2)%

709

721

663

677

546

Net Income

30%

2,479

2,459

2,358

2,126

1,909

Preferred stock dividends and other

(27)%

(11)%

149

113

Net Income Available to Common Stockholders

33%

$ 2,397

$ 2,367

$ 2,277

$ 1,977

$ 1,796

Earnings per common share:

Basic

38%

$ 1.37

$ 1.34

$ 1.26

$ 1.09

$ .99

Diluted

38%

$ 1.37

$ 1.33

$ 1.26

$ 1.08

$ .99

Dividends declared per common share

19%

$ .32

$ .27

Weighted-average common shares outstanding:

Basic

(4)%

(1)%

1,746

1,772

1,806

1,817

Diluted

(4)%

(1)%

1,752

1,777

1,811

1,822

Performance Measures

Pre-tax profit margin

49.2%

50.2%

49.2%

47.9%

43.8%

Return on average common stockholders' equity (annualized) (1)

23%

22%

21%

19%

18%

Financial Condition (at quarter end, in billions)

Cash and cash equivalents

29%

(2)%

$ 45.0

$ 46.0

$ 30.6

$ 32.2

$ 35.0

Cash and investments segregated

(7)%

39.8

42.9

47.8

45.6

38.4

Receivables from brokers, dealers, and clearing organizations

N/M

64%

11.8

7.2

4.7

4.3

2.9

Receivables from brokerage clients - net

26%

106.2

104.7

93.8

82.8

84.4

Available for sale securities

(18)%

(2)%

61.1

62.4

62.3

67.6

74.8

Held to maturity securities

(8)%

(2)%

131.7

134.0

136.7

139.7

143.8

Bank loans - net

29%

60.9

58.0

53.6

50.4

47.1

Total assets

493.3

491.0

465.3

458.9

462.9

Bank deposits

(1)%

253.0

255.7

239.1

233.1

246.2

Payables to brokers, dealers, and clearing organizations

79%

28.1

25.7

22.4

18.6

15.7

Payables to brokerage clients

17%

118.0

116.3

115.4

109.4

100.6

Accrued expenses and other liabilities

(6)%

12.0

12.8

11.4

10.8

11.0

Other short-term borrowings

81%

12.5

6.9

6.5

8.5

6.9

Federal Home Loan Bank borrowings

(100)%

1.9

0.9

9.0

11.5

Long-term debt

(5)%

(8)%

20.5

22.2

20.2

21.5

Total liabilities

444.1

441.6

415.9

409.5

413.4

Stockholders' equity

(1)%

49.2

49.4

49.5

Total liabilities and stockholders' equity

493.3

491.0

465.3

458.9

462.9

Other

Full-time equivalent employees (at quarter end, in thousands)

33.5

33.0

32.7

32.6

32.1

Capital expenditures - purchases of equipment, office facilities, and property, net (in millions)

11%

$ 173

$ 158

$ 152

$ 136

$ 156

Expenses excluding interest as a percentage of average client assets (annualized)

0.11%

0.12%

Clients' Daily Average Trades (DATs) (in thousands)

34%

20%

9,899

8,274

7,421

7,571

7,391

Number of Trading Days

(3)%

61.0

63.0

63.5

62.0

60.0

Revenue Per Trade (2)

(12)%

$ 1.80

$ 2.05

$ 2.11

$ 2.03

$ 2.05

(1) Return on average common stockholders' equity is calculated using net income available to common stockholders divided by average common stockholders' equity.

(2) Revenue per trade is calculated as trading revenue divided by the product of DATs and the number of trading days. N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.

THE CHARLES SCHWAB CORPORATION

Three Months Ended March 31,

2026 2025

Average Balance

Interest Revenue/ Expense

Average Yield/ Rate

Average Balance

Interest Revenue/ Expense

Average Yield/ Rate

Interest-earning assets

Cash and cash equivalents

$ 32,477

$ 288

3.56%

$ 30,483

$ 328

4.31%

Cash and investments segregated

43,946

397

3.61%

38,611

412

4.27%

Receivables from brokerage clients (1)

104,520

1,499

5.74%

82,902

1,379

6.65%

Available for sale securities (2)

65,255

326

2.00%

84,590

433

2.05%

Held to maturity securities (2)

132,192

567

1.72%

144,401

622

1.72%

Bank loans

59,285

627

4.27%

46,043

493

4.32%

Total interest-earning assets

437,675

3,704

3.39%

427,030

3,667

3.44%

Securities lending revenue

Other interest revenue (1)

167

Total interest-earning assets

$ 437,675

$ 3,962

3.63%

$ 427,030

$ 3,757

3.52%

Funding sources

Bank deposits

$ 242,679

$ 118

0.20%

$ 245,719

$ 436

0.72%

Payables to brokers, dealers, and clearing organizations

25,508

217

3.40%

14,177

137

3.88%

Payables to brokerage clients (1)

105,095

0.22%

90,173

0.22%

Other short-term borrowings

9,103

4.07%

6,695

4.96%

Federal Home Loan Bank borrowings

1,277

3.85%

10,725

133

4.94%

Long-term debt

21,702

201

3.71%

22,281

212

3.81%

Total interest-bearing liabilities

405,364

696

0.69%

389,770

1,049

1.08%

Non-interest-bearing funding sources

32,311

37,260

Other interest expense (1)

122

Total funding sources

$ 437,675

$ 818

0.75%

$ 427,030

$ 1,051

0.99%

Net interest revenue

$ 3,144

2.88%

$ 2,706

2.53%

(1) Beginning in the fourth quarter of 2025, average balances of client margin loans and short credits related to certain client long/short strategies from which the Company earns a fixed net yield are excluded from interest-earning assets and funding sources. Prior period amounts and average yields have been reclassified and recalculated to reflect this change. Average margin loans related to these client strategies totaled $14.1 billion and $235 million for the three months ended

March 31, 2026 and 2025, respectively. Average short credits related to these client strategies totaled $14.4 billion and $237 million for the three months ended March 31, 2026 and 2025, respectively. Interest revenue and expense related to these client strategies are presented in other interest revenue and other interest expense, respectively.

(2) Amounts have been calculated based on amortized cost.

THE CHARLES SCHWAB CORPORATION

(In millions, except ratios or as noted) (Unaudited)

Average Client

Three Months Ended March 31,

Average Client Assets

Revenue

Average Fee

Schwab money market funds

$ 696,558

$ 468

0.27%

$ 621,474

$ 418

0.27%

Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs)

818,316

146

0.07%

658,588

122

0.08%

Mutual Fund OneSource ® and other no-transaction-fee funds (NTFs)

468,101

262

0.23%

359,696

222

0.25%

Other third-party mutual funds, ETFs, and alternatives (1)

665,887

115

0.07%

642,852

116

0.07%

Total mutual funds, ETFs, CTFs, and alternatives (1,2)

$ 2,648,862

$ 991

0.15%

$ 2,282,610

$ 878

0.16%

Managed investing solutions (2)

Fee-based

$ 727,883

$ 674

0.38%

$ 590,483

$ 569

0.39%

Non-fee-based

145,628

120,442

Total managed investing solutions

$ 873,511

$ 674

0.31%

$ 710,925

$ 569

0.32%

Other balance-based fees (1,3)

963,502

0.03%

822,350

0.03%

Other (4)

Total asset management and administration fees

$ 1,759

$ 1,530

2026 2025

Average

Assets Revenue Fee

(1) Beginning in the first quarter of 2026, alternative investments and related revenue were moved from other balance-based fees to other third-party mutual funds, ETFs, and alternatives. Prior period amounts and average fees have been reclassified and recalculated to reflect this change.

(2) Managed investing solutions includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth AdvisoryTM, Schwab

Managed PortfoliosTM, Managed Account Select®, Schwab Advisor Network®, Windhaven Strategies®, ThomasPartners® Strategies, Wasmer Schroeder StrategiesTM, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios®, Institutional Intelligent Portfolios®, Schwab Intelligent Portfolios Premium®, Schwab Wealth Portfolios™, AdvisorDirect®, Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.

(3) Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.

(4) Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.

THE CHARLES SCHWAB CORPORATION

(Unaudited)

Q1-26 % Change

2026

2025

vs.

First

Fourth

Third

Second

First

(In billions, at quarter end, except as noted)

Q1-25

Q4-25

Quarter

Assets in client accounts

Schwab One®, certain cash equivalents, and bank deposits

13%

$ 390.5

$ 379.5

$ 357.1

$ 342.7

$ 345.2

Bank deposit account balances

(12)%

(4)%

73.5

76.2

78.5

82.1

83.7

Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs

Money market funds

700.8

693.8

666.4

653.5

641.5

Equity and bond funds and CTFs (1)

20%

(2)%

271.8

277.4

269.7

249.7

227.0

Total proprietary mutual funds and CTFs

12%

972.6

971.2

936.1

903.2

868.5

Mutual Fund Marketplace® (2)

Mutual Fund OneSource® and other NTF funds

30%

(2)%

443.3

454.2

473.5

453.9

340.3

Mutual fund clearing services

11%

(5)%

311.1

327.7

320.2

298.3

280.6

Other third-party mutual funds

(1)%

1,263.7

1,274.3

1,237.2

1,168.5

1,195.4

Total Mutual Fund Marketplace

11%

(2)%

2,018.1

2,056.2

2,030.9

1,920.7

1,816.3

Total mutual fund assets

11%

(1)%

2,990.7

3,027.4

2,967.0

2,823.9

2,684.8

Exchange-traded funds

Proprietary ETFs (1)

29%

512.6

495.3

476.0

439.7

398.2

Other third-party ETFs

32%

2,579.8

2,527.5

2,395.7

2,175.6

1,960.1

Total ETF assets

31%

3,092.4

3,022.8

2,871.7

2,615.3

2,358.3

Equity and other securities

21%

(3)%

4,566.9

4,722.6

4,624.7

4,188.7

3,765.5

Fixed income securities

(1)%

780.6

786.8

792.1

788.0

775.8

Margin loans outstanding

52%

13%

(126.7)

(112.3)

(97.2)

(83.4)

(83.6)

Total client assets

19%

(1)%

$ 11,767.9

$ 11,903.0

$ 11,593.9

$10,757.3

$ 9,929.7

Client assets by business

Investor Services (3)

18%

(2)%

$ 6,566.4

$ 6,707.5

$ 6,577.2

$ 6,069.9

$ 5,557.4

Advisor Services

19%

5,201.5

5,195.5

5,016.7

4,687.4

4,372.3

Total client assets

19%

(1)%

$ 11,767.9

$ 11,903.0

$ 11,593.9

$10,757.3

$ 9,929.7

Net growth in assets in client accounts (for the quarter ended)

Net new assets by business

Investor Services (3)

(22)%

(10)%

$ 54.1

$ 60.4

$ 52.7

$ 31.2

$ 69.5

Advisor Services

36%

(12)%

85.8

97.8

81.7

42.4

62.9

Total net new assets

(12)%

$ 139.9

$ 158.2

$ 134.4

$ 73.6

$ 132.4

Net market gains (losses)

(275.0)

150.9

702.2

754.0

(304.0)

Net growth (decline)

$ (135.1)

$ 309.1

$ 836.6

$ 827.6

$ (171.6)

New brokerage accounts (in thousands, for the quarter ended)

10%

1,299

1,268

1,143

1,098

1,183

Client accounts (in thousands)

Active brokerage accounts

39,099

38,506

37,963

37,476

37,011

Banking accounts

11%

2,281

2,214

2,150

2,096

2,050

Workplace Plan Participant Accounts (4)

5,844

5,740

5,619

5,586

5,495

(1) Includes balances held on and off the Schwab platform. As of March 31, 2026, off-platform equity and bond funds, CTFs, and ETFs were $46.5 billion, $4.5 billion, and $187.2 billion, respectively.

(2) Excludes all proprietary mutual funds and ETFs.

(3) First quarter of 2026 includes net outflows of $0.1 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2025 includes net outflows of $5.7 billion from off-platform Schwab Bank Retail CDs. Third quarter of 2025 includes net outflows of $3.1 billion from off-platform Schwab Bank Retail CDs. Second quarter of 2025 includes net outflows of $6.7 billion from off-platform Schwab Bank Retail CDs. First quarter of 2025 includes net outflows of $5.3 billion from off-platform Schwab Bank Retail CDs.

(4) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.

Mar

Number of Trading Days

21.0

20.0

21.5

21.0

23.0

18.5

21.5

20.0

19.0

22.0

Market Indices (at month end)

Dow Jones Industrial Average®

42,002

40,669

42,270

44,095

44,131

45,545

46,398

47,563

47,716

48,063

48,892

48,978

46,342

(5)%

10%

Nasdaq Composite®

17,299

17,446

19,114

20,370

21,122

21,456

22,660

23,725

23,366

23,242

23,462

22,668

21,591

(5)%

25%

Standard & Poor's® 500

5,612

5,569

5,912

6,205

6,339

6,460

6,688

6,840

6,849

6,846

6,939

6,879

6,529

(5)%

16%

Client Assets (in billions of dollars)

Beginning Client Assets

10,280.2

9,929.7

9,892.2

10,349.0

10,757.3

10,963.5

11,228.1

11,593.9

11,828.0

11,834.3

11,903.0

12,148.5

12,220.3

Net New Assets (1)

55.3

1.1

33.6

38.9

45.7

43.3

45.4

41.6

38.7

77.9

27.6

32.5

79.8

146%

44%

Net Market Gains (Losses)

(405.8)

(38.6)

423.2

369.4

160.5

221.3

320.4

192.5

(32.4)

(9.2)

217.9

39.3

(532.2)

Total Client Assets (at month end)

9,929.7

9,892.2

10,349.0

10,757.3

10,963.5

11,228.1

11,593.9

11,828.0

11,834.3

11,903.0

12,148.5

12,220.3

11,767.9

(4)%

19%

Core Net New Assets (1,2)

59.1

2.7

35.0

42.6

46.9

44.4

46.2

44.4

40.4

79.1

27.8

32.5

79.7

145%

35%

Receiving Ongoing Advisory Services (at month end)

Investor Services

688.8

688.2

711.2

737.6

747.9

771.1

792.5

807.6

817.9

824.8

849.5

866.8

841.3

(3)%

22%

Advisor Services

4,372.3

4,353.0

4,525.6

4,687.4

4,765.1

4,888.2

5,016.7

5,106.1

5,155.9

5,195.5

5,311.7

5,394.3

5,201.5

(4)%

19%

Client Accounts (at month end, in thousands)

Active Brokerage Accounts

37,011

37,254

37,375

37,476

37,658

37,798

37,963

38,145

38,266

38,506

38,730

38,925

39,099

Banking Accounts

2,050

2,066

2,077

2,096

2,116

2,137

2,150

2,172

2,189

2,214

2,239

2,258

2,281

11%

Workplace Plan Participant Accounts (3)

5,495

5,518

5,563

5,586

5,619

5,606

5,619

5,696

5,730

5,740

5,793

5,829

5,844

Client Activity

New Brokerage Accounts (in thousands)

388

439

336

323

377

382

384

429

365

474

476

395

428

10%

Client Daily Average Trades (DATs) (in thousands)

7,365

8,362

7,184

7,147

7,252

7,182

7,832

8,617

8,459

7,746

9,512

9,922

10,232

39%

Derivative Trades as a Percentage of Total Trades

19.5%

18.4%

21.0%

20.8%

21.3%

22.5%

22.3%

23.8%

21.7%

21.4%

20.1%

20.4%

30 bp

90 bp

Margin Balances at month end (in billions of dollars)

83.6

76.2

81.3

83.4

88.3

92.4

97.2

105.6

110.1

112.3

116.3

120.6

126.7

52%

Schwab Trading Activity IndexTM (STAX) (4)

48.4

41.2

39.7

40.7

41.8

43.7

46.1

48.1

48.8

48.5

50.0

57.3

56.0

(2)%

16%

Selected Balances (in billions of dollars)

Average Interest-Earning Assets (5)

424.9

430.4

418.7

416.5

416.7

414.4

419.8

428.3

429.1

436.0

441.7

434.2

436.8

Transactional Sweep Cash (6) (at month end)

407.8

403.3

398.1

412.1

407.5

406.7

425.6

428.8

427.5

453.7

433.3

436.1

461.5

13%

Total Money Market Funds (at month end)

641.9

637.8

645.8

653.9

658.6

665.2

667.0

675.5

685.9

694.5

693.4

696.2

702.2

Client Cash as a Percentage of Client Assets (7)

10.6%

10.5%

10.1%

9.9%

9.7%

9.5%

9.4%

9.3%

9.4%

9.7%

9.3%

9.9%

60 bp

(70) bp

Net Buy (Sell) Activity (in billions of dollars) (8)

Mutual Funds

(8.5)

(14.0)

(3.2)

(5.4)

(3.4)

(2.2)

(4.8)

(6.3)

(7.3)

(3.6)

(0.9)

(2.4)

(8.5)

Exchange-Traded Funds (ETFs)

18.2

18.8

21.9

19.4

25.8

23.0

25.6

28.1

24.9

39.8

34.8

37.4

25.3

(1) Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs.

(2) Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.

(3) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.

(4) For additional information regarding STAX, please visit: https://www.schwab.com/investment-research/stax/view-schwab-trading-activity-index.

(5) Represents average total interest-earning assets on the Company's balance sheet. Beginning in December 2025, average balances of client margin loans and short credits related to certain client long/short strategies from which the Company earns a fixed net yield are excluded from average interest-earning assets. Prior period amounts have been adjusted accordingly.

(6) Transactional sweep cash includes bank sweep deposits, broker-dealer cash balances, other client cash held on the balance sheet (such as bank checking and savings deposits, short credits related to certain client long/short strategies, and broker-dealer non-interest-bearing credits), and bank deposit account balances; excludes proprietary and third-party CDs.

(7) Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank.

(8) Represents the principal value of client mutual fund and ETF transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to investment managers. Excludes money market fund transactions.

- 9 -

THE CHARLES SCHWAB CORPORATION

(In millions, except ratios and per share amounts) (Unaudited)

In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab's first quarter earnings release contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide useful supplemental information about the financial performance of the Company, and facilitate meaningful comparison of Schwab's results in the current period to both historic and future results. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may not be comparable to non-GAAP financial measures presented by other companies.

Schwab's use of non-GAAP measures is reflective of certain adjustments made to GAAP financial measures as described below.

Non-GAAP Adjustment or Measure

Definition

Usefulness to Investors and Uses by Management

Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs

Schwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company's acquisitions, amortization of acquired intangible assets, restructuring costs, and, where applicable, the income tax effect of these expenses.

Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company's revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives.

We exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab's ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods.

Costs related to acquisition and integration or restructuring fluctuate based on the timing of acquisitions, integration and restructuring activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company's ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company's underlying operating performance.

Return on tangible common equity

Return on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets - net, and related deferred tax liabilities.

Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab's balance sheet.

Adjusted Tier 1 Leverage

Ratio

Adjusted Tier 1 Leverage Ratio represents the Tier 1 Leverage Ratio as prescribed by bank regulatory guidance for the consolidated company and for Charles Schwab Bank, SSB (CSB), adjusted to reflect the inclusion of accumulated other comprehensive income (AOCI) in the ratio.

Inclusion of the impacts of AOCI in the Company's Tier 1 Leverage Ratio provides additional information regarding the Company's current capital position. We believe Adjusted Tier 1 Leverage Ratio may be useful to investors as a supplemental measure of the Company's capital levels.

The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for employee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC's Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective.

THE CHARLES SCHWAB CORPORATION

(In millions, except ratios and per share amounts) (Unaudited)

The tables below present reconciliations of GAAP measures to non-GAAP measures:

Three Months Ended March 31,

2026

2025

Total Expenses Excluding

Net

Total Expenses Excluding

Net

Interest

Income

Interest

Income

Total expenses excluding interest (GAAP), Net income (GAAP)

$ 3,294 $

2,479 $

3,144

$ 1,909

Amortization of acquired intangible assets

(132)

132

(130)

130

Acquisition and integration-related costs (1)

(11)

Income tax effects (2)

N/A

(34)

N/A

(31)

Adjusted total expenses (non-GAAP), Adjusted net income (non-GAAP)

$ 3,151 $

2,588 $

3,014

$ 2,008

(1) Acquisition and integration-related costs for the three months ended March 31, 2026 primarily consist of professional services. There were no acquisition and integration-related costs for the three months ended March 31, 2025.

(2) The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non-deductible acquisition costs and are used to present the acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs on an after-tax basis.

N/A Not applicable.

Three Months Ended March 31,

2026

2025

Amount

% of Total Net Revenues

Amount

% of Total Net Revenues

Income before taxes on income (GAAP), Pre-tax profit margin (GAAP)

$ 3,188

49.2%

$ 2,455

43.8%

Amortization of acquired intangible assets

132

2.0%

130

2.4%

Acquisition and integration-related costs

0.2%

Adjusted income before taxes on income (non-GAAP), Adjusted pre-tax profit margin (non-GAAP)

3,331

51.4%

2,585

46.2%

Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted

EPS (non-GAAP)

2,506 $

1.43 $

1,895 $

1.04

Three Months Ended March 31,

2026

2025

Amount

Diluted EPS

Amount

Diluted EPS

Net income available to common stockholders (GAAP), Earnings per common share - diluted (GAAP)

$ 2,397

$ 1.37

$ 1,796

$ .99

Amortization of acquired intangible assets

132

.07

130

.07

Acquisition and integration-related costs

.01

Income tax effects

(34)

(.02)

(31)

(.02)

THE CHARLES SCHWAB CORPORATION

(In millions, except ratios and per share amounts) (Unaudited)

Three Months Ended March 31,

2026

2025

Return on average common stockholders' equity (GAAP)

23%

18%

Average common stockholders' equity

$ 42,567

$ 39,752

Less: Average goodwill

(12,125)

(11,951)

Less: Average acquired intangible assets - net

(7,323)

(7,679)

Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets - net

1,693

1,709

Average tangible common equity

$ 24,812

$ 21,831

Adjusted net income available to common stockholders (1)

$ 2,506

$ 1,895

Return on tangible common equity (non-GAAP)

40%

35%

(1) See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP).

CSC

CSB

Tier 1 Leverage Ratio (GAAP)

8.9%

10.9%

Tier 1 Capital

$ 41,894

$ 27,474

Plus: AOCI adjustment

(10,631)

(9,240)

Adjusted Tier 1 Capital

31,263

18,234

Average assets with regulatory adjustments

471,426

252,021

Plus: AOCI adjustment

(10,703)

(9,341)

Adjusted average assets with regulatory adjustments

$ 460,723

$ 242,680

Adjusted Tier 1 Leverage Ratio (non-GAAP)

6.8%

7.5%

(Preliminary) March 31, 2026

Disclaimer

The Charles Schwab Corporation published this content on April 16, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 16, 2026 at 11:37 UTC.