What it does
The company states that it is a savings and loan holding company operating through subsidiaries in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. It serves individuals and institutional clients through Investor Services and Advisor Services. Investor Services includes retail brokerage, investment advisory, banking and trust, workplace-plan, and corporate brokerage services. Advisor Services provides custody, trading, banking and trust, and support services to independent registered investment advisors, independent retirement advisors, and recordkeepers. The filing reports $11.90 trillion in client assets at December 31, 2025.
Source: The Charles Schwab Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The filing identifies net interest revenue, asset management and administration fees, trading revenue, and bank deposit account fees as Schwab’s largest revenue sources. Net interest revenue reflects interest earned on interest-earning assets less interest paid on funding sources, with uninvested client cash balances described as the primary funding source. The segment table shows Investor Services revenue of $19.0 billion, or 79.4% of revenue, and Advisor Services revenue of $4.9 billion, or 20.6%. Asset-management and administration fees include revenue associated with proprietary and third-party funds, ETFs, and managed investing solutions.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Mutual funds, ETFs, and CTFs | $3.7 billion | 30.1% | 13.8% |
| Managed investing solutions | $2.4 billion | 20.0% | 14.6% |
| Order flow revenue | $1.9 billion | 15.9% | 30.7% |
| Commissions | $1.8 billion | 14.8% | 12.9% |
| Bank deposit account fees | $977.0 million | 8.03% | 34.0% |
| Other | $767.0 million | 6.30% | 1.86% |
| Other | $401.0 million | 6.30% | 1.86% |
| Principal transactions | $194.0 million | 1.59% | −1.02% |
Source: The Charles Schwab Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
The company serves individual investors across a range of investing and wealth-management needs, as well as businesses and their employees through workplace and corporate brokerage services. Its Advisor Services clients include independent registered investment advisors, independent retirement advisors, recordkeepers, and the clients of RIAs. At December 31, 2025, the filing reports 38.5 million active brokerage accounts, 5.7 million workplace plan participant accounts, and 2.2 million banking accounts. The filing also describes access to U.S. markets for non-U.S. clients, multicurrency trading for U.S.-based investors, and operations subject to regulation in countries outside the U.S.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Investor Services | $19.0 billion | 79.4% | 22.1% |
| Advisor Services | $4.9 billion | 20.6% | 21.6% |
Source: The Charles Schwab Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
The filing does not name specific competitor companies. For individual investors, it says Schwab competes with brokerage, wealth management, and asset management firms, as well as banks, trust companies, financial technology companies, and retirement service providers. In Advisor Services, the filing lists institutional custodians, wirehouses, regional and independent broker-dealers, fintech custodians, banks, and trust companies. The company describes its stated competitive advantages as scale, operating efficiency, operating structure, brand and corporate reputation, service culture, and willingness to disrupt industry practices.
Source: The Charles Schwab Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
Key risks
- Developments in the business, economic, and geopolitical environment could negatively impact the business.
- A significant decrease in liquidity could negatively affect the business and reduce client confidence.
- Security breaches of Schwab’s systems, or those of clients or third parties, may create significant liability and reputational damage.
- The company may suffer significant losses from credit exposures.
- Extensive regulatory supervision may result in significant penalties or limitations on business activities.
- Potential strategic transactions could negatively affect the company’s financial position.
Source: The Charles Schwab Corporation Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
The filing states that Schwab had the equivalent of approximately 33,000 full-time employees at December 31, 2025, including full-time, part-time, temporary, and contract personnel. It describes compensation as including base pay, performance-based incentive pay, equity and recognition awards, and health and wellness benefits. The company also describes mentorship, development, leadership, and education-support programs. Its work-arrangement approach is hybrid and flexible, intended to balance employee flexibility with in-person training, learning, connection, and culture. The supplied filing excerpt does not state facilities or seasonality information.
Source: The Charles Schwab Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov