Financial Analysis

Commitments and Contingencies Loan portfolio : CSB provides a co-branded loan origination program for CSB clients (the Program) with Rocket Mortgage, LLC. Pursuant to the Program, Rocket Mortgage, LLC originates and services First Mortgages and HELOCs for CSB clients. Under the Program, CSB purchases certain First Mortgages and HELOCs that are originated by Rocket Mortgage, LLC. CSB purchased First Mortgages of $6.7 billion and $4.2 billion during 2025 and 2024, respectively. CSB purchased HELOCs with commitments of $231 million and $157 million during 2025 and 2024, respectively. The Companys commitments to extend credit on lines of credit and to purchase First Mortgages are as follows: December 31, 2025 2024 Commitments to extend credit related to unused HELOCs and other lines of credit $ 1,793 $ 1,895 Commitments to purchase First Mortgage loans 925 511 Total $ 2,718 $ 2,406 Guarantees and indemnifications : Schwab has clients that sell (i.e., write) listed option contracts that are cleared by the Options Clearing Corporation a clearing house that establishes margin requirements on these transactions. We satisfy the margin requirements of these transactions through pledging certain client securities. For additional information on these pledged securities, refer to Note 17. In connection with its securities lending activities, Schwab is required to provide collateral to certain brokerage clients. The Company satisfies the collateral requirements by providing cash as collate …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans Schwabs 2022 Stock Incentive Plan provides for granting options and restricted stock units to employees and non-employee directors. In addition, we offer retirement and employee stock purchase plans to eligible employees and sponsor deferred compensation plans for certain eligible employees and non-employee directors. A summary of share-based compensation expense and related income tax benefit is as follows: Year Ended December 31, 2025 2024 2023 Restricted stock unit expense $ 264 $ 266 $ 262 Stock option expense 24 47 33 Employee stock purchase plan expense 29 24 25 Total share-based compensation expense $ 317 $ 337 $ 320 Income tax benefit on share-based compensation expense (1) $ (76) $ (80) $ (76) (1) Excludes income tax benefits from stock options exercised and restricted stock units vested of $40 million, $20 million, and $31 million in 2025, 2024, and 2023, respectively. The Company issues shares for stock options and restricted stock units from treasury stock. At December 31, 2025, the Company was authorized to grant up to 102 million common shares under the 2022 Stock Incentive Plan. Additionally, at December 31, 2025, the Company had 21 million shares reserved for future issuance under its employee stock purchase plan. As of December 31, 2025, there was $328 million of total unrecognized compensation cost related to outstanding stock options and restricted stock units, which is expe …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

Borrowings CSC Senior Notes : CSCs Senior Notes are unsecured obligations. CSC may redeem some or all of the Senior Notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances. Interest is payable semi-annually for the fixed-rate Senior Notes and quarterly for the floating-rate Senior Notes. Interest for the fixed-to-floating rate Senior Notes is payable semi-annually during the fixed-rate period of the notes and quarterly during the floating-rate period of the notes. Ameritrade Holding LLC Senior Notes : Ameritrade Holding LLCs Senior Notes are unsecured obligations. Ameritrade Holding LLC may redeem some or all of the Senior Notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances. Interest is payable semi-annually for the fixed-rate Senior Notes. The following table lists long-term debt by instrument outstanding as of December 31, 2025 and 2024: Date of Principal Amount Outstanding Issuance 2025 2024 CSC Fixed-rate Senior Notes: 3.000% due March 10, 2025 03/10/15 $ $ 375 4.200% due March 24, 2025 03/24/20 600 3.625% due April 1, 2025 09/24/21 418 3.850% due May 21, 2025 05/22/18 750 3.450% due February 13, 2026 11/13/15 350 350 0.900% due March 11, 2026 12/11/20 1,250 1,250 1.150% due May 13, 2026 05/13/21 1,000 1,000 5.875% due August 24, 2026 08/24/23 1,000 1,000 3.200% due March 2, 2027 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregation of Schwabs revenue by major source is as follows: Year Ended December 31, 2025 2024 2023 Net interest revenue Cash and cash equivalents $ 1,189 $ 1,539 $ 1,894 Cash and investments segregated 1,862 1,443 1,355 Receivables from brokerage clients (1) 5,700 5,420 4,793 Available for sale securities 1,538 2,166 2,987 Held to maturity securities 2,386 2,636 2,872 Bank loans 2,168 1,867 1,664 Securities lending revenue 437 330 419 Other interest revenue (1) 224 136 127 Interest revenue 15,504 15,537 16,111 Bank deposits (1,185) (3,152) (3,363) Payables to brokers, dealers, and clearing organizations (701) (372) (147) Payables to brokerage clients (1) (244) (272) (271) Other short-term borrowings (324) (504) (375) Federal Home Loan Bank borrowings (356) (1,245) (1,810) Long-term debt (836) (846) (715) Other interest expense (1) (108) (2) (3) Interest expense (3,754) (6,393) (6,684) Net interest revenue 11,750 9,144 9,427 Asset management and administration fees Mutual funds, ETFs, and CTFs 3,665 3,221 2,563 Managed investing solutions 2,440 2,129 1,868 Other 401 366 325 Asset management and administration fees 6,506 5,716 4,756 Trading revenue Commissions 1,797 1,591 1,601 Order flow revenue 1,930 1,477 1,404 Principal transactions 194 196 225 Trading revenue 3,921 3,264 3,230 Bank deposit account fees 977 729 705 Other 767 753 719 Total net revenues $ 23,921 $ 19,606 $ 18,837 (1) Beginning in the fourth quarter of 2025, interest revenue and interest expense from clie …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Values of Assets and Liabilities For a description of the fair value hierarchy and Schwabs fair value methodologies, including the use of independent third-party pricing services, see Note 2. The Company did not adjust prices received from the primary independent third-party pricing services at December 31, 2025 or 2024. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis: December 31, 2025 Level 1 Level 2 Level 3 Balance at Fair Value Cash equivalents: Money market funds $ 13,947 $ $ $ 13,947 U.S. Treasury securities 1,989 1,989 Total cash equivalents 13,947 1,989 15,936 Investments segregated and on deposit for regulatory purposes: U.S. government securities 23,555 23,555 Total investments segregated and on deposit for regulatory purposes 23,555 23,555 Available for sale securities: U.S. agency mortgage-backed securities 41,434 41,434 U.S. Treasury securities 11,364 11,364 Corporate debt securities 4,667 4,667 Asset-backed securities 4,199 4,199 U.S. state and municipal securities 561 561 Non-agency commercial mortgage-backed securities 113 113 Other 19 19 Total available for sale securities 62,357 62,357 Other assets: Other securities owned: Equity, corporate debt, and other securities 1,704 84 1,788 Mutual funds and ETFs 1,314 1,314 State and municipal debt obligations 45 45 U.S. government securities 15 15 Total other securities …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Acquired Intangible Assets The changes in the carrying amount of goodwill, as allocated to our reportable segments, are presented in the following table: Investor Services Advisor Services Total December 31, 2023 $ 7,969 $ 3,982 $ 11,951 Goodwill acquired and other changes during the period (1) 114 (114) December 31, 2024 $ 8,083 $ 3,868 $ 11,951 Goodwill acquired and other changes during the period December 31, 2025 $ 8,083 $ 3,868 $ 11,951 (1) In connection with certain changes in Schwabs organizational management structure, in the fourth quarter of 2024, the Retirement Business Services business unit was transferred from the Advisor Services segment to the Investor Services segment. Related goodwill amounts were transferred from the Advisor Services segment to the Investor Services segment. We performed an assessment of each of the Companys reporting units as of our annual testing date. Based on this analysis, we concluded that goodwill was not impaired. There were no indicators that goodwill was impaired after our annual testing date. Schwab did not recognize any goodwill impairment in any of the years presented. Acquired intangible assets are detailed below: December 31, 2025 December 31, 2024 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Client relationships $ 9,819 $ (2,679) $ 7,140 $ 9,819 $ (2,171) $ 7,648 Technology 216 (216) 216 (212) 4 Trade names 113 (20) 93 111 (20) …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Taxes on Income The components of taxes on income are as follows: Year Ended December 31, 2025 2024 2023 Current: Federal $ 1,898 $ 1,705 $ 1,658 State 348 236 131 Total current 2,246 1,941 1,789 Deferred: Federal 318 (180) (395) State 43 (11) (83) Total deferred 361 (191) (478) Taxes on income $ 2,607 $ 1,750 $ 1,311 The temporary differences that created deferred tax assets and liabilities are detailed below: December 31, 2025 2024 Deferred tax assets: Net unrealized loss on available for sale securities $ 3,429 $ 4,635 Employee compensation, severance, and benefits 268 265 Operating lease liabilities 222 200 Section 174 capitalization associated with internal-use software development 59 458 Net operating loss carryforwards 21 13 Other 195 222 Total deferred tax assets 4,194 5,793 Valuation allowance (27) (20) Deferred tax assets net of valuation allowance 4,167 5,773 Deferred tax liabilities: Amortization of acquired intangible assets (1,657) (1,710) Operating lease ROU assets (175) (146) Capitalized internal-use software development costs (141) (167) Capitalized contract costs (138) (116) Other (87) (107) Total deferred tax liabilities (2,198) (2,246) Deferred tax assets (liabilities) net (1) $ 1,969 $ 3,527 (1) Amounts are included in other assets on the consolidated balance sheets. A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: Year Ended December 31, 2025 2024 2023 Amount Percent Amount Percent Amount Percent F …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The following table details the amounts and locations of lease assets and liabilities on the consolidated balance sheets: December 31, 2025 2024 Balance Sheet Classification Lease assets: Operating lease ROU assets Other assets $ 705 $ 591 Finance lease ROU assets Equipment, office facilities, and property net 35 47 Lease liabilities: Operating lease liabilities Accrued expenses and other liabilities $ 903 $ 816 Finance lease liabilities Long-term debt 37 49 The components of lease expense are as follows: Year Ended December 31, 2025 2024 2023 Lease Cost Operating lease cost (1) $ 215 $ 215 $ 260 Variable lease cost (2) 45 48 48 (1) Includes short-term lease cost, which is immaterial. (2) Includes payments that are entirely variable and amounts that represent the difference between payments based on an index or rate that is reflected in the lease liability and amounts actually incurred. The Company had immaterial finance lease cost and sublease income for the years ended December 31, 2025, 2024, and 2023. In addition to the costs noted above and as a result of its Ameritrade integration and restructuring efforts, the Company recognized impairment losses on ROU assets of $157 million for the year ended December 31, 2023. These losses are included in other expense on the consolidated statements of income. For the purpose of measuring impairment loss, the fair value of the asset group was determined using a discounted cash flow analysis. The fair value of the asset group …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Accounting Standards Adoption of New Accounting Standards Standard Description Date of Adoption Effects on the Financial Statements or Other Significant Matters Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures Expands income tax disclosures, primarily by enhancing the rate reconciliation table and requiring additional disaggregated information about income taxes paid. Adoption allows retrospective or prospective application, with early adoption permitted. January 1, 2025 (applies to the annual financial statements for 2025 and interim periods thereafter) The Company adopted this guidance on January 1, 2025 on a retrospective basis for all periods presented within these 2025 annual financial statements. The impact of adoption was the additional tax disclosures included in Note 22. New Accounting Standards Not Yet Adopted Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses Requires additional disclosures about certain expenses including, but not limited to, employee compensation, depreciation, amortization of intangible assets, and selling expenses. Also requires annual disclosure of how selling expenses are defined. Adoption allows retrospective or prospective application, with early adoption per …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue Recognition Disaggregated Revenue Disaggregation of Schwabs revenue by major source is as follows: Year Ended December 31, 2025 2024 2023 Net interest revenue Cash and cash equivalents $ 1,189 $ 1,539 $ 1,894 Cash and investments segregated 1,862 1,443 1,355 Receivables from brokerage clients (1) 5,700 5,420 4,793 Available for sale securities 1,538 2,166 2,987 Held to maturity securities 2,386 2,636 2,872 Bank loans 2,168 1,867 1,664 Securities lending revenue 437 330 419 Other interest revenue (1) 224 136 127 Interest revenue 15,504 15,537 16,111 Bank deposits (1,185) (3,152) (3,363) Payables to brokers, dealers, and clearing organizations (701) (372) (147) Payables to brokerage clients (1) (244) (272) (271) Other short-term borrowings (324) (504) (375) Federal Home Loan Bank borrowings (356) (1,245) (1,810) Long-term debt (836) (846) (715) Other interest expense (1) (108) (2) (3) Interest expense (3,754) (6,393) (6,684) Net interest revenue 11,750 9,144 9,427 Asset management and administration fees Mutual funds, ETFs, and CTFs 3,665 3,221 2,563 Managed investing solutions 2,440 2,129 1,868 Other 401 366 325 Asset management and administration fees 6,506 5,716 4,756 Trading revenue Commissions 1,797 1,591 1,601 Order flow revenue 1,930 1,477 1,404 Principal transactions 194 196 225 Trading revenue 3,921 3,264 3,230 Bank deposit account fees 977 729 705 Other 767 753 719 Total net revenues $ 23,921 $ 19,606 $ 18,837 (1) Beginning in the fourth quarter of 2025, inter …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information Schwabs two reportable segments are Investor Services and Advisor Services. Schwab structures the operating segments according to its clients and the services provided to those clients. The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, 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 RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are attributed to the two segments based on which segment services the client. Schwabs chief operating decision makers (CODMs) are the President and Chief Executive Officer, and the Managing Director and Chief Financial Officer. The accounting policies of the segments are the same as those described in Note 2. For the computation of its segment information, Schwab utilizes an activity-based costing model to allocate traditional income statement line item expenses (e.g., compensation and benefits, depreciation and amortization, and professional services) to the business activities driving segment expenses (e.g., client service, opening new accounts, or business development) and a funds transfer pricing methodology to allocate certain revenues. The CODMs evaluate the performance of the segments on a pre-tax basis and use income before t …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Revenue recognition Net interest revenue Net interest revenue is not within the scope of Accounting Standards Codification (ASC) 606 Revenue From Contracts With Customers (ASC 606), because it is generated from financial instruments covered by various other areas of GAAP. Net interest revenue is the difference between interest generated on interest-earning assets and interest paid on funding sources. Our primary interest-earning assets include cash and cash equivalents; segregated cash and investments; margin loans; investment securities; and bank loans. Interest revenue and expense also include interest received or paid on resale and repurchase agreements, respectively, and fees earned and incurred on securities borrowing and lending activities. Asset management and administration fees The majority of asset management and administration fees are generated through our proprietary and third-party mutual fund and ETF offerings, as well as fee-based advisory solutions. Mutual fund and ETF service fees are charged for investment management, shareholder, and administration services provided to Schwab Funds and Schwab ETFs, as well as recordkeeping, shareholder, and administration services provided to third-party funds. Managed investing solutions fees are charged for brokerage and asset management services provided to managed investing solutions clients. Both mutual fund and ETF service fees and managed investing solutions fees are earned …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stockholders Equity Common and Nonvoting Common Stock Except as described below, CSC did not issue common shares through external offerings during the years ended December 31, 2025, 2024, or 2023. In conjunction with its acquisition of Ameritrade in 2020, the Company issued shares of a nonvoting class of CSC common stock to TD Bank and its affiliates. Each share of nonvoting common stock has identical rights to common stock, including liquidation and dividend rights, except that holders of nonvoting common stock have no voting rights other than over matters that significantly and adversely affect the rights or preferences of the nonvoting common stock, or as required by applicable law. Holders of nonvoting common stock are restricted from transferring shares except for permitted inside or outside transfers, as defined in the Companys certificate of incorporation. Shares of nonvoting common stock transferred in a permitted outside transfer are automatically converted to shares of common stock. On February 12, 2025, TD Group US Holdings LLC, an affiliate of TD Bank, completed a secondary public offering of the Companys common shares through which TD Group US Holdings LLC sold 133.8 million shares of the Companys common stock and 31.7 million shares of the Companys nonvoting common stock, which automatically converted into common stock. The offering was completed at a price of $79.25 per share, for an aggregate amount of $13.1 billion. The Company did not receive any of the proc …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Loan portfolio : CSB provides a co-branded loan origination program for CSB clients (the Program) with Rocket Mortgage, LLC. Pursuant to the Program, Rocket Mortgage, LLC originates and services First Mortgages and HELOCs for CSB clients. Under the Program, CSB purchases certain First Mortgages and HELOCs that are originated by Rocket Mortgage, LLC. CSB purchased First Mortgages of $1.7 billion and $1.1 billion during the third quarter of 2025 and 2024, respectively, and $4.4 billion and $2.6 billion during the first nine months of 2025 and 2024, respectively. CSB purchased HELOCs with commitments of $52 million and $38 million during the third quarter of 2025 and 2024, respectively, and $181 million and $121 million during the first nine months of 2025 and 2024, respectively. The Companys commitments to extend credit on lines of credit and to purchase First Mortgages are as follows: September 30, 2025 December 31, 2024 Commitments to extend credit related to unused HELOCs and other lines of credit $ 1,819 $ 1,895 Commitments to purchase First Mortgage loans 1,215 511 Total $ 3,034 $ 2,406 Guarantees and indemnifications : Schwab has clients that sell (i.e., write) listed option contracts that are cleared by the Options Clearing Corporation a clearing house that establishes margin requirements on these transactions. We satisfy the margin requirements of these transactions through pledging certain client securities. For additional information on t …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Borrowings CSC Senior Notes CSCs Senior Notes are unsecured obligations. CSC may redeem some or all of the Senior Notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances. Interest is payable semi-annually for the fixed-rate Senior Notes and quarterly for the floating-rate Senior Notes. Interest for the fixed-to-floating rate Senior Notes is payable semi-annually during the fixed-rate period of the notes and quarterly during the floating-rate period of the notes. Ameritrade Holding Senior Notes Ameritrade Holdings Senior Notes are unsecured obligations. Ameritrade Holding may redeem some or all of the Senior Notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances. Interest is payable semi-annually for the fixed-rate Senior Notes. The following table lists long-term debt by instrument outstanding as of September 30, 2025 and December 31, 2024: Date of Issuance Principal Amount Outstanding September 30, 2025 December 31, 2024 CSC Fixed-rate Senior Notes: 3.000% due March 10, 2025 03/10/15 $ $ 375 4.200% due March 24, 2025 03/24/20 600 3.625% due April 1, 2025 09/24/21 418 3.850% due May 21, 2025 05/22/18 750 3.450% due February 13, 2026 11/13/15 350 350 0.900% due March 11, 2026 12/11/20 1,250 1,250 1.150% due May 13, 2026 05/13/21 1,000 1,000 5.875% due August 24, 2026 08/24/23 1,000 1,000 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregation of Schwabs revenue by major source is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net interest revenue Cash and cash equivalents $ 264 $ 369 $ 897 $ 1,205 Cash and investments segregated 494 345 1,412 1,014 Receivables from brokerage clients 1,490 1,431 4,204 4,042 Available for sale securities 360 531 1,198 1,680 Held to maturity securities 587 650 1,811 1,998 Bank loans 557 484 1,568 1,384 Securities lending revenue 183 87 339 258 Other interest revenue 21 31 71 105 Interest revenue 3,956 3,928 11,500 11,686 Bank deposits (248) (841) (1,010) (2,602) Payables to brokers, dealers, and clearing organizations (1) (188) (118) (492) (230) Payables to brokerage clients (97) (79) (217) (229) Other short-term borrowings (87) (150) (256) (382) Federal Home Loan Bank borrowings (79) (310) (322) (988) Long-term debt (207) (208) (625) (640) Other interest expense (2) Interest expense (906) (1,706) (2,922) (5,073) Net interest revenue 3,050 2,222 8,578 6,613 Asset management and administration fees Mutual funds, ETFs, and CTFs 946 827 2,695 2,370 Managed investing solutions 619 559 1,777 1,572 Other 108 90 301 265 Asset management and administration fees 1,673 1,476 4,773 4,207 Trading revenue Commissions 453 388 1,315 1,184 Order flow revenue 490 357 1,399 1,066 Principal transactions 52 52 141 141 Trading revenue 995 797 2,855 2,391 Bank deposit account fees 247 152 739 488 Other 170 200 640 578 Total net revenues $ 6, …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Values of Assets and Liabilities Assets and Liabilities Measured at Fair Value on a Recurring Basis Schwabs assets and liabilities measured at fair value on a recurring basis include: certain cash equivalents, certain investments segregated and on deposit for regulatory purposes, AFS securities, certain other assets, interest rate swaps, and certain accrued expenses and other liabilities. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. Quoted prices for investments in exchange-traded securities represent end-of-day close prices published by exchanges. Quoted prices for money market funds and other mutual funds represent reported net asset values. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices in active markets do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets, and we generally obtain prices from three independent third-party pricing sources for such assets recorded at fair value. Our primary independent pricing service provides prices for our fixed income investments such as commercial paper; certificates of deposit; U.S. government and agency securities; state and municipal securities; corporate debt securities; asset-b …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Adoption of New Accounting Standards Standard Description Date of Adoption Effects on the Financial Statements or Other Significant Matters Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures Expands annual income tax disclosures, primarily by enhancing the rate reconciliation table and requiring additional disaggregated information about income taxes paid. Adoption allows retrospective or prospective application. January 1, 2025 The Company does not expect this guidance will have a material impact on its financial statements or related disclosures. This guidance will be reflected in the annual financial statements for 2025. New Accounting Standards Not Yet Adopted Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses Requires additional disclosures about certain expenses including, but not limited to, employee compensation, depreciation, amortization of intangible assets, and selling expenses. Also requires annual disclosure of how selling expenses are defined. Adoption allows retrospective or prospective application, with early adoption permitted. January 1, 2027 (applies to the annual financial statements for 2027 and interim periods thereafter) The Company is evaluating the impact of this guidance on …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue Recognition Disaggregation of Schwabs revenue by major source is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net interest revenue Cash and cash equivalents $ 264 $ 369 $ 897 $ 1,205 Cash and investments segregated 494 345 1,412 1,014 Receivables from brokerage clients 1,490 1,431 4,204 4,042 Available for sale securities 360 531 1,198 1,680 Held to maturity securities 587 650 1,811 1,998 Bank loans 557 484 1,568 1,384 Securities lending revenue 183 87 339 258 Other interest revenue 21 31 71 105 Interest revenue 3,956 3,928 11,500 11,686 Bank deposits (248) (841) (1,010) (2,602) Payables to brokers, dealers, and clearing organizations (1) (188) (118) (492) (230) Payables to brokerage clients (97) (79) (217) (229) Other short-term borrowings (87) (150) (256) (382) Federal Home Loan Bank borrowings (79) (310) (322) (988) Long-term debt (207) (208) (625) (640) Other interest expense (2) Interest expense (906) (1,706) (2,922) (5,073) Net interest revenue 3,050 2,222 8,578 6,613 Asset management and administration fees Mutual funds, ETFs, and CTFs 946 827 2,695 2,370 Managed investing solutions 619 559 1,777 1,572 Other 108 90 301 265 Asset management and administration fees 1,673 1,476 4,773 4,207 Trading revenue Commissions 453 388 1,315 1,184 Order flow revenue 490 357 1,399 1,066 Principal transactions 52 52 141 141 Trading revenue 995 797 2,855 2,391 Bank deposit account fees 247 152 739 488 Other 170 200 640 578 Tot …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information Schwabs two reportable segments are Investor Services and Advisor Services. Schwab structures the operating segments according to its clients and the services provided to those clients. 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 RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are attributed to the two segments based on which segment services the client. Schwabs chief operating decision makers (CODMs) are the President and Chief Executive Officer, and the Managing Director and Chief Financial Officer. The accounting policies of the segments are the same as those described in Item 8 Note 2 in the 2024 Form 10-K. For the computation of its segment information, Schwab utilizes an activity-based costing model to allocate traditional income statement line item expenses (e.g., compensation and benefits, depreciation and amortization, and professional services) to the business activities driving segment expenses (e.g., client service, opening new accounts, or business development) and a funds transfer pricing methodology to allocate certain revenues. The CODMs evaluate the performance of the segments on a pre- …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders Equity Common and Nonvoting Common Stock On February 12, 2025, TD Group US Holdings LLC, an affiliate of TD Bank, completed a secondary public offering of the Companys common shares through which TD Group US Holdings LLC sold 133.8 million shares of the Companys common stock and 31.7 million shares of the Companys nonvoting common stock, which automatically converted into common stock. The offering was completed at a price of $79.25 per share, for an aggregate amount of $13.1 billion. The Company did not receive any of the proceeds from this sale. Concurrent with the completion of the secondary offering, and pursuant to a repurchase agreement dated February 9, 2025, the Company repurchased directly from TD Group US Holdings LLC its remaining 19.2 million shares of nonvoting common stock at a price of $77.982 per share for an aggregate repurchase amount of $1.5 billion, which settled on February 12, 2025. The shares of nonvoting common stock automatically converted into common stock upon repurchase and are now held in treasury stock, reducing the number of shares outstanding. These shares were purchased under CSCs $15.0 billion share repurchase authorization. Through the completion of the secondary offering and the Companys repurchase of nonvoting common stock, TD Bank disposed of all of its common shares of CSC and as of February 12, 2025, the Company had no remaining nonvoting common stock outstanding. CSC repurchased an additional 3.9 million shares of its comm …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events On November 6, 2025, Schwab announced that it has entered into a definitive agreement to acquire Forge Global Holdings, Inc. (Forge), operator of a leading private market platform and trading marketplace, in a transaction valued at approximately $660 million. The Company anticipates that incorporating Forges private markets capabilities will enhance Schwabs ability to meet the evolving needs of investors across our growing client base. The transaction is expected to close in the first half of 2026, subject to customary closing conditions, including approval by Forges stockholders and regulatory approvals. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing