Charles Schwab 10-Q 2026-06-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

For the quarterly period ended June 30, 2026

or

For the transition period from ________ to ________

Commission File Number: 1-9700

THE CHARLES SCHWAB CORPORATION

(Exact name of registrant as specified in its charter)

3000 Schwab Way, Westlake, TX 76262

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (817) 859-5000

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

1,729,335,714 shares of $.01 par value Common Stock outstanding as of July 31, 2026

THE CHARLES SCHWAB CORPORATION

Quarterly Report on Form 10-Q

For the Quarter Ended June 30, 2026

Index

Part I – FINANCIAL INFORMATION

THE CHARLES SCHWAB CORPORATION

Management’s Discussion and Analysis of Financial Condition and Results of Operations

(Tabular Amounts in Millions, Except Ratios, or as Noted)

INTRODUCTION

The Charles Schwab Corporation (CSC) is a savings and loan holding company. CSC engages, through its subsidiaries (collectively referred to as Schwab or the Company), in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.

Principal business subsidiaries of CSC include the following:

• Charles Schwab & Co., Inc. (CS&Co), incorporated in 1971, a securities broker-dealer;

• Charles Schwab Bank, SSB (CSB), our principal banking entity; and

• Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds (Schwab Funds®) and for Schwab’s exchange-traded funds (Schwab ETFs).

Unless otherwise indicated, the terms “Schwab,” “the Company,” “we,” “us,” or “our” mean CSC together with its consolidated subsidiaries.

Schwab provides financial services to individuals and institutional clients through two segments – Investor Services and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan and business services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking and trust, and support services to independent registered investment advisors (RIAs), independent retirement advisors, and recordkeepers.

Schwab was founded on the belief that all Americans deserve access to a better investing experience. Although much has changed in the intervening years, our purpose remains clear – to champion every client’s goals with passion and integrity. Guided by this purpose and our vision of creating the most trusted leader in investment services, management has adopted a strategy described as “Through Clients’ Eyes.”

This strategy emphasizes placing clients’ perspectives, needs, and desires at the forefront. Because investing plays a fundamental role in building financial security, we strive to deliver a better investing experience for our clients – individual investors and the people and institutions who serve them – by disrupting longstanding industry practices on their behalf and providing superior service. We also aim to offer a broad range of products and solutions to meet client needs with a focus on transparency, value, and trust. In addition, management works to couple Schwab’s scale and resources with ongoing expense discipline to keep costs low and ensure that products and solutions are affordable as well as responsive to client needs. In combination, these are the key elements of our “no trade-offs” approach to serving investors. We believe that following this strategy is the best way to maximize our market valuation and stockholder returns over time.

Management estimates that investable wealth in the United States (U.S.) (consisting of assets in defined contribution, retail wealth management and brokerage, and RIA channels, along with bank deposits) currently exceeds $90 trillion, which means the Company’s $13.08 trillion in client assets leaves substantial opportunity for growth. Our strategy is based on the principle that developing trusted relationships will translate into more assets from both new and existing clients, ultimately driving more revenue, and along with expense discipline and thoughtful capital management, will generate earnings growth and build long-term stockholder value.

This Management’s Discussion and Analysis should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (2025 Form 10-K).

On our website, https://www.aboutschwab.com, we post the following filings after they are electronically filed with or furnished to the Securities and Exchange Commission (SEC or Commission): annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934. In addition, we post to the website the Dodd-Frank stress test results, our regulatory capital disclosures based on Basel III, our average liquidity coverage ratio (LCR), and our average net stable funding ratio (NSFR). The SEC maintains a website at https://www.sec.gov that contains reports, proxy statements, and other information that we file electronically with the Commission.

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THE CHARLES SCHWAB CORPORATION

Management’s Discussion and Analysis of Financial Condition and Results of Operations

(Tabular Amounts in Millions, Except Ratios, or as Noted)

FORWARD-LOOKING STATEMENTS

In addition to historical information, this Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are identified by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may,” “estimate,” “appear,” “could,” “would,” “aim,” “maintain,” “continue,” “seek,” and other similar expressions. In addition, any statements that refer to expectations, strategy, objectives, projections, or other characterizations of future events or circumstances are forward-looking statements.

These forward-looking statements, which reflect management’s expectations and objectives as of the date hereof, are based on the best judgment of Schwab’s senior management. These statements relate to, among other things:

• Maximizing our market valuation and stockholder returns over time; and our belief that developing trusted relationships will translate into more client assets which drives revenue and, along with expense discipline and thoughtful capital management, generates earnings growth and builds stockholder value (see Introduction in Part I – Item 2);

• Industry and competitive trends including artificial intelligence, digital assets, private company securities and other alternative investments;

• The Company’s spot crypto trading offer (see Overview in Part I – Item 2);

• The integration of Forge Global Holdings, Inc. and its private market capabilities (see Overview in Part I – Item 2);

• Estimates of market opportunity (see Introduction in Part I – Item 2);

• Growth of our client base and our business, strong client engagement, sustained demand for the Company’s offerings and solutions, and strategic initiatives (see Overview in Part I – Item 2);

• Capital expenditures and expense management (see Results of Operations in Part I – Item 2);

• SEC transaction fee increases (see Results of Operations in Part I – Item 2);

• Net interest revenue, client cash allocation, and adjustment of rates paid on client-related liabilities (see Results of Operations in Part I – Item 2);

• Wholesale funding and funding strategy (see Results of Operations in Part I – Item 2, and Liquidity Risk in Part I – Item 2);

• Management of interest rate risk; modeling and assumptions, the impact of changes in interest rates on net interest margin and revenue, bank deposit account fee revenue, economic value of equity (EVE), and liability and asset duration (see Risk Management in Part I – Item 2);

• Sources and uses of liquidity (see Liquidity Risk in Part I – Item 2);

• Capital management; long-term operating objective; and uses of capital and return of excess capital to stockholders (see Capital Management in Part I – Item 2);

• The expected impact of proposed and final rules (see Current Regulatory and Other Developments in Part I – Item 2);

• The likelihood of indemnification and guarantee payment obligations and clients failing to fulfill contractual obligations (see Commitments and Contingencies in Part I – Item 1 – Financial Information – Notes to Condensed Consolidated Financial Statements (Item 1) – Note 11, and Financial Instruments Subject to Off-Balance Sheet Credit Risk in Item 1 – Note 13); and

• The outcome and impact of

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For discussion of the quantitative and qualitative disclosures about market risk, see Risk Management in Item 2.

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Part I - FINANCIAL INFORMATION

THE CHARLES SCHWAB CORPORATION

Condensed Consolidated Statements of Income

(In Millions, Except Per Share Amounts)

(Unaudited)

(1) For additional information on earnings per common shares outstanding for both voting and nonvoting common stock, see Notes 15 and 17.

See Notes to Condensed Consolidated Financial Statements.

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THE CHARLES SCHWAB CORPORATION

Condensed Consolidated Statements of Comprehensive Income

(In Millions)

(Unaudited)

See Notes to Condensed Consolidated Financial Statements.

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THE CHARLES SCHWAB CORPORATION

Condensed Consolidated Balance Sheets

(In Millions, Except Per Share and Share Amounts)

(Unaudited)

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Evaluation of disclosure controls and procedures: The management of the Company, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of June 30, 2026. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2026.

Changes in internal control over financial reporting: No change in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) was identified during the quarter ended June 30, 2026, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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THE CHARLES SCHWAB CORPORATION

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

For a discussion of legal proceedings, see Part I – Item 1 – Note 11.

In evaluating the Company and our business, you should carefully consider the risks and uncertainties described in Part I – Item 1A – Risk Factors in our most recent Annual Report on Form 10-K, together with the other information in this Quarterly Report on Form 10-Q, including our condensed consolidated financial statements and related notes in Part I – Item 1 and Part I – Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations. Except as described below with respect to our spot cryptocurrency offer, there have been no material changes from the risk factors set forth in our 2025 Annual Report on Form 10-K. Additional risks not presently known to us, or that we currently believe to be immaterial, may also adversely affect our business, financial condition, results of operations, or cash flows.

Cryptocurrency

Cryptocurrency, or crypto, uses cryptography blockchain technology, and distributed networks to execute, record, and verify transactions. Unlike traditional financial markets, there may be no party that can prevent or reverse fraudulent transactions, restore lost or stolen assets, or halt operations during a disruption. This absence of a central counterparty or settlement intermediary makes cryptocurrencies susceptible to theft, fraud, and operational disruption and may make recovery of stolen assets difficult or impossible.

Cryptocurrency markets and service providers have been subject to regulatory actions, adverse publicity, and significant volatility. Custodians and other service providers have been targets of sophisticated cyber attacks, which may include intrusion into operations infrastructure, tampering with transaction-related software, theft or substitution of hardware security modules, impersonation of authorized signers, social engineering of personnel, manipulation of internal address books, and exploitation of administrative procedures.

Clients’ cryptocurrency held through Schwab CryptoTM is not a deposit or a security and is not protected by the FDIC or the Securities Investor Protection Corporation (SIPC).

Any operational or security failure at our sub-custodian could result in loss or theft of clients’ cryptocurrency and expose us to remediation costs, regulatory scrutiny, and reputational harm.

Our spot cryptocurrency offer currently relies on our sub-custodian to safeguard cryptocurrency held by our clients. Any operational failure, cybersecurity incident, fraud, insolvency, or other disruption at the sub-custodian, or a failure of the underlying blockchain infrastructure, could result in the theft or loss of our clients’ cryptocurrency, which may not be recoverable.

Cryptocurrency custodied through digital wallets is generally accessible only through associated private keys, which the sub-custodian holds and manages as part of its custodial services. Any loss or compromise of private keys or wallets, including through error, misconduct, or cyberattack affecting the sub-custodian or its personnel, could impair our clients’ ability to access or sell their cryptocurrency and could expose us to remediation obligations, financial losses, regulatory scrutiny, and reputational harm.

Our sub-custodian is contractually liable for the loss of our clients’ cryptocurrency under custody, but it may not have sufficient financial resources to satisfy its obligations in the event of a significant loss. Under certain circumstances, CSPB, as custodian, could be liable for losses greater than amounts recoverable from the sub-custodian, which could adversely affect our business.

Uncertainty about the treatment of our clients’ cryptocurrency in a receivership, conservatorship, bankruptcy, or similar proceeding could result in delays or losses for clients, claims against us, and reputational harm to the Company.

Although the sub-custodian expects to hold clients’ cryptocurrencies in segregated accounts on a bankruptcy-remote basis, the legal treatment of cryptocurrency custody arrangements has not been tested broadly in U.S. courts. In a receivership, conservatorship, bankruptcy, or similar proceeding involving the sub-custodian or its affiliates, CSPB, or another intermediary in the custody chain, a court, receiver, trustee, or other authority could determine our clients’ cryptocurrencies are the property

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THE CHARLES SCHWAB CORPORATION

of an insolvency estate and subject to competing claims or could impose restrictions on distributions to clients while ownership is adjudicated.

Even if clients’ cryptocurrencies are ultimately determined not to be part of an insolvency estate, clients could experience delays in accessing their assets due to administrative stays, reconciliation and tracing processes, valuation disputes, or operational constraints on the relevant blockchain networks. Because on-chain transfers are generally irreversible and may be affected by network congestion or protocol events, an insolvency administrator’s ability to return assets in kind may be constrained. Clients may receive distributions later than expected, in a different form, or at a value different from market value at the time of the distribution. Any such outcome could result in client losses, complaints and litigation, increased regulatory scrutiny, and harm to our business or reputation.

Uncertainties in or changes to the accounting treatment for cryptocurrencies could adversely affect our financial statements and related disclosures.

Accounting literature, standard-setting activity, and regulatory expectations for entities that enable customers to buy, sell, or hold cryptocurrencies continue to develop, and practice is not uniform. As a result, our accounting conclusions and related disclosures may be subject to heightened scrutiny by regulators, auditors, and investors and may change over time.

Determining whether and how to recognize revenue, assets, and liabilities related to clients’ cryptocurrencies is complex, involves significant judgment, and depends on the legal rights and obligations reflected in our customer agreements, our arrangements with sub-custodians and other service providers, and our operational practices. Regulatory or standard-setting developments, interpretive guidance, or changes in views by the SEC staff, the Financial Accounting Standards Board, or our auditors could affect recognition and measurement of revenue, assets, and liabilities, and may increase volatility in reported results, and impact key metrics and regulatory capital calculations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

On July 24, 2025, CSC publicly announced that its Board of Directors terminated its prior share repurchase authorization and replaced it with a new authorization to repurchase up to $20.0 billion of common stock. The new share repurchase authorization does not have an expiration date. See also Part I – Item 1 – Note 15.

The following table summarizes purchases made by or on behalf of CSC of its common stock for each calendar month in the second quarter of 2026 (in millions, except number of shares, which are in thousands, and per share amounts):

(1) Includes restricted shares withheld (under the terms of grants under employee stock incentive plans) to offset tax withholding obligations that occur upon vesting and release of restricted shares. CSC may receive shares delivered or attested to pay the exercise price and/or to satisfy tax withholding obligations by employees who exercise stock options granted under employee stock incentive plans, which are commonly referred to as stock swap exercises.

N/A Not applicable.

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THE CHARLES SCHWAB CORPORATION

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

During the three months ended June 30, 2026, no director or officer of the Company adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement as defined in Item 408 of Regulation S-K.

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THE CHARLES SCHWAB CORPORATION

The following exhibits are filed as part of this Quarterly Report on Form 10-Q:

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THE CHARLES SCHWAB CORPORATION

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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