AI Takeaway
Charles Schwab delivered a strong FY2025 with revenue surging 22% to $23.9B and net income skyrocketing to $8.85B, driven by robust operating cash flow of $9.3B and the resumption of share buybacks totaling $7.35B.
Revenue
$23.92B
++22.01% YoY
EPS (Basic)
$4.67
++55.67% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew 22.0% year-over-year from $19.6B to $23.9B in FY2025, reflecting a significant rebound in net interest income and client activity as the interest rate environment normalized and client cash sorting dynamics stabilized.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Net income surged to $8.85B in FY2025 compared to approximately $5.9M in the prior year, representing a near-complete earnings recovery as margin compression from elevated funding costs and balance sheet restructuring charges abated.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating cash flow improved dramatically by 248.7% to $9.31B from $2.67B in the prior year, signaling restored earnings quality and cash generation capacity as the company moved past peak integration and restructuring costs from the TD Ameritrade merger.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockSchwab's debt-to-equity ratio stands at approximately 8.93x, reflecting the highly leveraged nature of its banking operations. While typical for financial institutions, this level of leverage means that adverse changes in interest rates, credit conditions, or client behavior could disproportionately impact equity and capital ratios.
Source: Source: 10-K Balance Sheet (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.39 versus the $1.42 analyst consensus — a -2.3% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $23.92B | $19.61B | +22.01% |
Net Income | $8.85B | $5.94M | +148873.41% |
EPS (Basic) | $4.67 | $3.00 | +55.67% |
EPS (Diluted) | $4.65 | $2.99 | +55.52% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $491B | $479.84B | +2.32% |
Total Liabilities | $441.57B | $431.47B | +2.34% |
Stockholders' Equity | $49.42B | $48.38B | +2.17% |
Cash & Equivalents | $46.03B | $42.08B | +9.38% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $9.31B | $2.67B | +248.73% |
Investing Cash Flow | $24.54B | $35.43B | -30.74% |
Financing Cash Flow | $-29.7B | $-47.06B | +36.88% |
Dividends Paid | $2.33B | $2.27B | +2.37% |
Share Buybacks | $7.35B | $0 | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 37.0% | — | — |
ROE | 17.9% | — | — |
ROA | 1.8% | — | — |
Debt to Equity | $8.934 | — | — |
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Charles Schwab had an outstanding FY2025, with revenue growing 22% to $23.9B and net income recovering dramatically to $8.85B. Basic EPS rose 55.7% to $4.67, and the company resumed share buybacks totaling $7.35B, signaling strong financial health.
Schwab's net income surged from approximately $5.9M in the prior year to $8.85B in FY2025, a recovery driven by the normalization of net interest income, stabilization of client cash sorting, and the fading of prior-year restructuring and integration costs. The net margin reached 37%, reflecting restored earnings power.
Yes, Schwab resumed share buybacks in FY2025, repurchasing $7.35B worth of stock after spending $0 on buybacks in the prior year. The company also paid $2.33B in dividends, returning a total of approximately $9.68B to shareholders.
Key risks for Schwab include its high debt-to-equity ratio of 8.93x, significant sensitivity to interest rate changes that could compress net interest margins, and potential recurrence of client cash sorting behavior. Ongoing TD Ameritrade integration execution and evolving banking regulations also pose medium-term risks.
Schwab's balance sheet showed modest but stable growth, with total assets rising 2.3% to $491.0B and cash and equivalents increasing 9.4% to $46.0B. Stockholders' equity stood at $49.4B, and operating cash flow of $9.31B underscores solid liquidity, though the leverage ratio remains elevated at 8.93x debt-to-equity.