SCHWHIGH SIGNALFINANCIAL10-K

Schwab's interest expense exploded 333% to $6.7B while the company reduced outstanding shares by 3.4% and achieved strong growth across all key business metrics.

The massive interest expense increase likely reflects higher funding costs in a rising rate environment, though this was more than offset by revenue growth and operational improvements that drove net income up 49%. The share reduction of ~61 million shares suggests active capital return to shareholders, while the acquisition of Forge Global indicates continued strategic expansion.

Comparing 2026-02-25 vs 2025-02-26View on EDGAR →
FINANCIAL ANALYSIS

Schwab delivered exceptional financial performance with revenue growing 22% to $23.9B and net income surging 49% to $8.9B, despite interest expenses quadrupling to $6.7B due to higher funding costs. Operating cash flow more than tripled to $9.3B, demonstrating strong underlying cash generation, while total debt increased 39% to $18.9B to support business growth. The overall picture shows a company successfully navigating higher interest rate headwinds through strong operational execution and robust client asset growth to $11.90 trillion.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+332.6%
$1.5B→$6.7B

Interest expense surged 332.6% — significant debt increase or rising rates materially impacting earnings.

Operating Cash Flow
Cash Flow
+248.7%
$2.7B→$9.3B

Operating cash flow surged 248.7% — exceptional cash generation, highest quality earnings signal.

Net Income
P&L
+49%
$5.9B→$8.9B

Net income grew 49% — bottom-line growth signals improving overall business health.

Total Debt
Balance Sheet
+38.7%
$13.6B→$18.9B

Debt increased 38.7% — substantial leverage increase; assess whether deployed for growth or covering losses.

Revenue
P&L
+22%
$19.6B→$23.9B

Revenue growing 22% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-26
ADDED
1,752,210,425 shares of $.01 par value Common Stock outstanding as of January 30, 2026.
Business 1 General Corporate Overview 1 Business Strategy and Competitive Environment 1 Business Acquisition 2 Products and Services 2 Sources of Net Revenues 5 Regulation 5 Human Capital 10 Available Information 10 Item 1A.
Management s Discussion and Analysis of Financial Condition and Results of Operations 24 Forward-Looking Statements 24 Glossary of Terms 25 Overview 28 Current Regulatory and Other Developments 31 Results of Operations 32 Risk Management 41 Capital Management 52 Foreign Exposure 56 Fair Value of Financial Instruments 56 Critical Accounting Estimates 56 Non-GAAP Financial Measures 57 Item 7A.
Form 10-K Summary 128 Signatures 129 Supplemental Information F-1 THE CHARLES SCHWAB CORPORATION PART I Item 1.
At December 31, 2025, Schwab had $11.90 trillion in client assets, 38.5 million active brokerage accounts, 5.7 million workplace plan participant accounts, and 2.2 million banking accounts.
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REMOVED
As of February 12, 2025, 1,813,567,665 shares of $.01 par value Common Stock were outstanding.
Business 1 General Corporate Overview 1 Business Strategy and Competitive Environment 1 Business Acquisition 2 Products and Services 3 Sources of Net Revenues 6 Regulation 6 Human Capital 11 Available Information 11 Item 1A.
Management s Discussion and Analysis of Financial Condition and Results of Operations 24 Forward-Looking Statements 24 Glossary of Terms 25 Overview 28 Current Regulatory and Other Developments 32 Results of Operations 33 Risk Management 43 Capital Management 55 Foreign Exposure 58 Fair Value of Financial Instruments 58 Critical Accounting Estimates 58 Non-GAAP Financial Measures 60 Item 7A.
Form 10-K Summary 134 Signatures 135 Supplemental Information F-1 THE CHARLES SCHWAB CORPORATION PART I Item 1.
At December 31, 2024, Schwab had $10.10 trillion in client assets, 36.5 million active brokerage accounts, 5.4 million workplace plan participant accounts, and 2.0 million banking accounts.
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