SCHWAB CHARLES CORP (SCHW) · Material Event (8-K) SEC Filing

EX-99.1 2 a2q26exhibit991.htm EX-99.1 DocumentExhibit 99.1 SCHWAB REPORTS RECORD QUARTERLY REVENUE AND EARNINGSRecord June Core Net New Assets Grew 47% Year-Over-Year to $62.7 Billion2Q Net Revenues Reached a Record $7.1 Billion, Up 21% Year-Over-YearRecord GAAP Earnings Per Share of $1.54 $1.62 Adjusted (1) up 42% versus 2Q25 WESTLAKE, Texas, July 21, 2026 The Charles Schwab Corporation reported net income for the second quarter totaling $2.8 billion, or earnings per share of $1.54. Excluding $170 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $2.9 billion and $1.62, respectively. Client Driven Growth $120B2Q26 CoreNet New Assets Schwab s leading value proposition continued to resonate in 2Q26, as investors opened 1.4 million new brokerage accounts and brought $120 billion in core net new assets to the firm. June core asset gathering totaled a record $62.7 billion an annualized organic growth rate of 5.8%. President CEO Rick Wurster Deepen Client Relationships 53%2Q26 Managed InvestingNet Flows Growth Investors continued to engage with Schwab s expanding set of solutions during 2Q as daily average trades reached a record 11.9 million, net flows into Schwab Wealth AdvisoryTM increased 80% year-over-year, and Pledged Asset LineTM balances equaled $33.4 billion up 59% from 2Q25. President CEO Rick Wurster Diversified Revenue Growth 21%2Q26 RevenueGrowth vs. 2Q25 Our ability to do more for clients throughout their financial lives enables Schwab to deliver robust results across a range of environments. During the second quarter, strong client engagement helped drive year-over-year revenue growth of 21% to a record $7.1 billion. CFO Mike Verdeschi Strong Earnings Momentum 43%2Q26 GAAP EPSGrowth vs. 2Q25 During 2Q26, the strength of Schwab s diversified business model, our industry-leading scale, and opportunistic capital return in multiple forms combined to deliver year-over-year GAAP earnings growth of 43% to a record $1.54 per share, or $1.62 on an adjusted (1) basis. CFO Mike Verdeschi 2Q26 Client and Business Highlights Total client assets increased 22% year-over-year to $13.08 trillion Core net new assets totaled $119.8 billion, up 49% versus 2Q25 New brokerage account openings equaled 1.4 million, helping bring total client accounts to 48.0 million Managed Investing Solutions net flows grew 53% versus 2Q25 Bank loan balances equaled $67.0 billion at June month-end, up 33% year-over-year Margin loan balances increased 30% quarter-over-quarter to $165.1 billion at quarter-end Long short strategy interest remained strong amongst RIA clients (2), with margin loan debits and short cash credits equaling $42.1 billion and $43.7 billion, respectively, as of June 30, 2026 Daily average trading volume reached a record 11.9 million up 57% versus 2Q25 Launched Schwab CryptoTM, providing direct access to Bitcoin and Ethereum trading for retail clients Introduced Portfolio Insights, a generative AI-powered capability that helps investors understand portfolio performance (3) Schwab recognized as the Best Investing Platform by U.S. News for the 4th consecutive year (4)- 1 - Three Months EndedJune 30, % Six Months EndedJune 30, % Financial Highlights 2026 2025 Change 2026 2025 Change Net revenues (in millions) $ 7,072 $ 5,851 21% $ 13,554 $ 11,450 18% Net income (in millions) GAAP $ 2,800 $ 2,126 32% $ 5,279 $ 4,035 31% Adjusted $ 2,930 $ 2,222 32% $ 5,518 $ 4,230 30% Diluted earnings per common share GAAP $ 1.54 $ 1.08 43% $ 2.91 $ 2.07 41% Adjusted $ 1.62 $ 1.14 42% $ 3.05 $ 2.17 41% Pre-tax profit margin GAAP 51.9 % 47.9 % 50.6 % 45.9 % Adjusted 54.3 % 50.1 % 52.9 % 48.2 % Return on average common stockholders equity (annualized) 25 % 19 % 23 % 18 % Return on tangible common equity (annualized) 44 % 35 % 41 % 34 % Note Items labeled adjusted are non-GAAP financial measures further details are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding. 2Q26 Financial Commentary Quarterly net revenues grew year-over-year by 21% to a record $7.1 billion Net interest margin for the quarter expanded 12 basis points quarter-over-quarter to 3.00% Client transactional sweep cash balances ended June at $485.7 billion, an increase of $24.2 billion versus the prior quarter-end, reflecting typical 2Q tax seasonality, organic growth, and client asset allocation decisions Average interest-earning assets for the quarter equaled $445.0 billion, up 5% versus 2Q25 Asset management and administration fees grew by 16% year-over-year to $1.8 billion, powered by the firm s organic growth and investors increased utilization of our wealth and asset management solutions Record client trading activity drove trading revenue of $1.2 billion, up 28% year-over-year GAAP expenses for the quarter increased 12% year-over-year excluding acquisition and integration-related costs and the amortization of acquired intangibles of $170 million, adjusted total expenses (1) were up 11% relative to 2Q25 Capital ratios across the firm remained strong including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) equaling 8.7% and 6.8%, respectively Redeemed $2.1 billion Series I Preferred Stock and issued $1.5 billion Series L Preferred Stock Repurchased 11.2 million shares of our common stock for $1.0 billion during the quarter(1) Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.(2) Client margin loans and short credits related to certain long short strategies utilized by RIAs are excluded from interest-earning assets and company funding sources.(3) Portfolio Insights (Insights) is a generative artificial intelligence feature designed to provide (1) a narrative snapshot of a client s Portfolio s Day Change performance as of now versus the prior trading day s close (2) a recap of recent news about the top S P 500 equity movers (up to five securities) most affecting the value of a client s portfolio and (3) snippets of the day s Schwab Center for Financial Research and other Schwab expert content related to a client s portfolio. The summaries can be refreshed throughout the day. Insights into specific securities are not necessarily representative of a client s portfolio. The securities referenced to prepare each Insight vary and certain asset types are excluded. Insights should not be construed as investment advice or recommendations and are for informational and educational purposes only. Generative AI output may be inaccurate, containing hallucinated, stale, or incomplete information. Clients should consult their Account Statement(s) for complete account information. For more information about Schwab Portfolio Insights, please visit https www.schwab.com legal portfolio-insights-disclosure.(4) U.S. News World Report s Best Investing Platforms awards were given on 04 16 2026. The criteria, evaluation, and ranking were determined by U.S. News World Report. See https money.usnews.com investing best-brokers methodology for more information. Schwab paid a licensing fee to U.S. News World Report for use of the award and logos.Summer Business UpdateThe company will host its Summer Business Update for institutional investors this morning from 7 30 a.m. - 8 30 a.m. CT, 8 30 a.m. - 9 30 a.m. ET. Registration for this Update webcast is accessible at https www.aboutschwab.com schwabevents.- 2 -Forward-Looking StatementsThis press release contains forward-looking statements relating to the company s diversified business model, scale, solutions, client engagement, and capital return. These forward-looking statements reflect management s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences are described in the company s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company s website (https www.aboutschwab.com financial-reports) and on the Securities and Exchange Commission s website (https www.sec.gov). The company makes no commitment to update any forward-looking statements.About Charles SchwabThe Charles Schwab Corporation (NYSE SCHW) is a leading provider of financial services, with 39.8 million active brokerage accounts, 5.9 million workplace plan participant accounts, 2.4 million banking accounts, and $13.08 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab Co., Inc. (member SIPC, https www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds financial planning and investment advice retirement plan and equity compensation plan services referrals to independent, fee-based investment advisors and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor ServicesTM. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https www.aboutschwab.com.Contact InformationMEDIAMayura Hooper, 415-667-1525 public.relations schwab.comINVESTORS ANALYSTSJeff Edwards, 817-854-6177 investor.relations schwab.com- 3 -THE CHARLES SCHWAB CORPORATIONConsolidated Statements of Income(In millions, except per share amounts)(Unaudited) Three Months EndedJune 30, Six Months EndedJune 30, 2026 2025 2026 2025 Net Revenues Interest revenue $ 4,432 $ 3,787 $ 8,394 $ 7,544 Interest expense (1,075) (965) (1,893) (2,016) Net interest revenue 3,357 2,822 6,501 5,528 Asset management and administration fees 1,825 1,570 3,584 3,100 Trading revenue 1,215 952 2,304 1,860 Bank deposit account fees 333 247 628 492 Other 342 260 537 470 Total net revenues 7,072 5,851 13,554 11,450 Expenses Excluding Interest Compensation and benefits 1,790 1,536 3,602 3,208 Professional services 307 291 610 560 Occupancy and equipment 301 270 586 544 Advertising and market development 111 108 212 204 Communications 198 176 361 329 Depreciation and amortization 198 215 399 432 Amortization of acquired intangible assets 142 128 274 258 Regulatory fees and assessments 63 77 138 166 Other 293 247 515 491 Total expenses excluding interest 3,403 3,048 6,697 6,192 Income before taxes on income 3,669 2,803 6,857 5,258 Taxes on income 869 677 1,578 1,223 Net Income 2,800 2,126 5,279 4,035 Preferred stock dividends and other 119 149 201 262 Net Income Available to Common Stockholders $ 2,681 $ 1,977 $ 5,078 $ 3,773 Weighted-Average Common Shares Outstanding Basic 1,735 1,817 1,740 1,819 Diluted 1,739 1,822 1,745 1,825 Earnings Per Common Shares Outstanding Basic $ 1.55 $ 1.09 $ 2.92 $ 2.07 Diluted $ 1.54 $ 1.08 $ 2.91 $ 2.07 - 4 - THE CHARLES SCHWAB CORPORATION Financial and Operating Highlights (Unaudited) Q2-26 % change 2026 2025 vs. vs. Second First Fourth Third Second (In millions, except per share amounts and as noted) Q2-25 Q1-26 Quarter Quarter Quarter Quarter Quarter Net Revenues Net interest revenue 19 % 7 % $ 3,357 $ 3,144 $ 3,172 $ 3,050 $ 2,822 Asset management and administration fees 16 % 4 % 1,825 1,759 1,733 1,673 1,570 Trading revenue 28 % 12 % 1,215 1,089 1,066 995 952 Bank deposit account fees 35 % 13 % 333 295 238 247 247 Other 32 % 75 % 342 195 127 170 260 Total net revenues 21 % 9 % 7,072 6,482 6,336 6,135 5,851 Expenses Excluding Interest Compensation and benefits 17 % (1) % 1,790 1,812 1,630 1,653 1,536 Professional services 5 % 1 % 307 303 344 293 291 Occupancy and equipment 11 % 6 % 301 285 293 280 270 Advertising and market development 3 % 10 % 111 101 115 101 108 Communications 13 % 21 % 198 163 142 149 176 Depreciation and amortization (8) % (1) % 198 201 206 212 215 Amortization of acquired intangible assets 11 % 8 % 142 132 127 127 128 Regulatory fees and assessments (18) % (16) % 63 75 62 59 77 Other 19 % 32 % 293 222 237 240 247 Total expenses excluding interest 12 % 3 % 3,403 3,294 3,156 3,114 3,048 Income before taxes on income 31 % 15 % 3,669 3,188 3,180 3,021 2,803 Taxes on income 28 % 23 % 869 709 721 663 677 Net Income 32 % 13 % 2,800 2,479 2,459 2,358 2,126 Preferred stock dividends and other (20) % 45 % 119 82 92 81 149 Net Income Available to Common Stockholders 36 % 12 % $ 2,681 $ 2,397 $ 2,367 $ 2,277 $ 1,977 Earnings per common share Basic 42 % 13 % $ 1.55 $ 1.37 $ 1.34 $ 1.26 $ 1.09 Diluted 43 % 12 % $ 1.54 $ 1.37 $ 1.33 $ 1.26 $ 1.08 Dividends declared per common share 19 % $ .32 $ .32 $ .27 $ .27 $ .27 Weighted-average common shares outstanding Basic (5) % (1) % 1,735 1,746 1,772 1,806 1,817 Diluted (5) % (1) % 1,739 1,752 1,777 1,811 1,822 Performance Measures Pre-tax profit margin 51.9 % 49.2 % 50.2 % 49.2 % 47.9 % Return on average common stockholders equity (annualized) (1) 25 % 23 % 22 % 21 % 19 % Financial Condition (at quarter end, in billions) Cash and cash equivalents 26 % (10) % $ 40.6 $ 45.0 $ 46.0 $ 30.6 $ 32.2 Cash and investments segregated (28) % (17) % 33.0 39.8 42.9 47.8 45.6 Receivables from brokers, dealers, and clearing organizations N M 86 % 22.0 11.8 7.2 4.7 4.3 Receivables from brokerage clients net 48 % 16 % 122.8 106.2 104.7 93.8 82.8 Available for sale securities (8) % 2 % 62.5 61.1 62.4 62.3 67.6 Held to maturity securities (7) % (1) % 130.6 131.7 134.0 136.7 139.7 Bank loans net 33 % 10 % 67.0 60.9 58.0 53.6 50.4 Total assets 13 % 5 % 517.3 493.3 491.0 465.3 458.9 Bank deposits 7 % (1) % 249.7 253.0 255.7 239.1 233.1 Payables to brokers, dealers, and clearing organizations 135 % 56 % 43.8 28.1 25.7 22.4 18.6 Payables to brokerage clients 13 % 5 % 124.0 118.0 116.3 115.4 109.4 Accrued expenses and other liabilities 16 % 4 % 12.5 12.0 12.8 11.4 10.8 Other short-term borrowings 64 % 11 % 13.9 12.5 6.9 6.5 8.5 Federal Home Loan Bank borrowings (94) % N M 0.5 1.9 0.9 9.0 Long-term debt 12 % 11 % 22.7 20.5 22.2 20.2 20.2 Total liabilities 14 % 5 % 467.1 444.1 441.6 415.9 409.5 Stockholders equity 1 % 2 % 50.1 49.2 49.4 49.4 49.5 Total liabilities and stockholders equity 13 % 5 % 517.3 493.3 491.0 465.3 458.9 Other Full-time equivalent employees (at quarter end, in thousands) 3 % 1 % 33.7 33.5 33.0 32.7 32.6 Capital expenditures purchases of equipment, office facilities, and property, net (in millions) (2) N M N M $ 792 $ 173 $ 158 $ 152 $ 136 Expenses excluding interest as a percentage of average client assets (annualized) 0.11 % 0.11 % 0.11 % 0.11 % 0.12 % Clients Daily Average Trades (DATs) (in thousands) 57 % 20 % 11,920 9,899 8,274 7,421 7,571 Number of Trading Days 2 % 62.0 61.0 63.0 63.5 62.0 Revenue Per Trade (3) (19) % (9) % $ 1.64 $ 1.80 $ 2.05 $ 2.11 $ 2.03 (1) Return on average common stockholders equity is calculated using net income available to common stockholders divided by average common stockholders equity.(2) Second quarter of 2026 includes incremental capital expenditures of $633 million related to a multi-year software license agreement with a corresponding liability recognized in long-term debt.(3) Revenue per trade is calculated as trading revenue divided by the product of DATs and the number of trading days.N M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.- 5 -THE CHARLES SCHWAB CORPORATIONNet Interest Revenue Information(In millions, except ratios or as noted)(Unaudited) Three Months EndedJune 30, Six Months EndedJune 30, 2026 2025 2026 2025 AverageBalance InterestRevenue Expense AverageYield Rate AverageBalance InterestRevenue Expense AverageYield Rate AverageBalance InterestRevenue Expense AverageYield Rate AverageBalance InterestRevenue Expense AverageYield Rate Interest-earning assets Cash and cash equivalents $ 30,707 $ 278 3.58 % $ 28,000 $ 305 4.30 % $ 31,587 $ 566 3.57 % $ 29,236 $ 633 4.30 % Cash and investments segregated 41,326 374 3.58 % 47,574 506 4.20 % 42,629 771 3.60 % 43,117 918 4.23 % Receivables from brokerage clients (1) 112,136 1,609 5.68 % 78,732 1,321 6.64 % 108,349 3,108 5.71 % 80,805 2,700 6.64 % Available for sale securities (2) 65,864 358 2.17 % 77,750 405 2.08 % 65,561 684 2.09 % 81,151 838 2.06 % Held to maturity securities (2) 131,126 570 1.73 % 141,098 602 1.70 % 131,656 1,137 1.73 % 142,740 1,224 1.71 % Bank loans 63,823 693 4.35 % 48,691 518 4.27 % 61,567 1,320 4.31 % 47,374 1,011 4.29 % Total interest-earning assets 444,982 3,882 3.47 % 421,845 3,657 3.45 % 441,349 7,586 3.43 % 424,423 7,324 3.44 % Securities lending revenue 178 96 269 156 Other interest revenue (1) 372 34 539 64 Total interest-earning assets $ 444,982 $ 4,432 3.96 % $ 421,845 $ 3,787 3.57 % $ 441,349 $ 8,394 3.79 % $ 424,423 $ 7,544 3.54 % Funding sources Bank deposits $ 246,346 $ 114 0.19 % $ 237,645 $ 326 0.55 % $ 244,522 $ 232 0.19 % $ 241,660 $ 762 0.64 % Payables to brokers, dealers, and clearing organizations 31,693 276 3.45 % 16,657 167 3.97 % 28,617 493 3.43 % 15,424 304 3.93 % Payables to brokerage clients (1) 108,840 59 0.22 % 92,425 60 0.26 % 106,978 115 0.22 % 91,305 109 0.24 % Other short-term borrowings 11,082 111 3.98 % 7,644 87 4.55 % 10,098 203 4.02 % 7,172 169 4.74 % Federal Home Loan Bank borrowings 126 1 3.79 % 9,753 110 4.48 % 699 13 3.85 % 10,236 243 4.72 % Long-term debt 21,324 228 4.23 % 20,624 206 3.94 % 21,512 429 3.97 % 21,448 418 3.87 % Total interest-bearing liabilities 419,411 789 0.75 % 384,748 956 0.99 % 412,426 1,485 0.72 % 387,245 2,005 1.04 % Non-interest-bearing funding sources 25,571 37,097 28,923 37,178 Other interest expense (1) 286 9 408 11 Total funding sources $ 444,982 $ 1,075 0.96 % $ 421,845 $ 965 0.91 % $ 441,349 $ 1,893 0.85 % $ 424,423 $ 2,016 0.95 % Net interest revenue $ 3,357 3.00 % $ 2,822 2.66 % $ 6,501 2.94 % $ 5,528 2.59 % (1) Beginning in the fourth quarter of 2025, average balances of client margin loans and short credits related to certain client long short strategies from which the Company earns a fixed net yield are excluded from interest-earning assets and funding sources. Prior period amounts and average yields have been reclassified and recalculated to reflect this change. Average margin loans related to these client strategies totaled $33.1 billion and $23.7 billion for the three and six months ended June 30, 2026, respectively, compared to $884 million and $562 million for the same periods in 2025. Average short credits related to these client strategies totaled $34.3 billion and $24.5 billion for the three and six months ended June 30, 2026, respectively, compared to $898 million and $569 million for the same periods in 2025. Interest revenue and expense related to these client strategies are presented in other interest revenue and other interest expense, respectively.(2) Amounts have been calculated based on amortized cost.- 6 -THE CHARLES SCHWAB CORPORATIONAsset Management and Administration Fees Information(In millions, except ratios or as noted)(Unaudited) Three Months EndedJune 30, Six Months EndedJune 30, 2026 2025 2026 2025 AverageClientAssets Revenue AverageFee AverageClientAssets Revenue AverageFee AverageClientAssets Revenue AverageFee AverageClientAssets Revenue AverageFee Schwab money market funds $ 692,896 $ 473 0.27 % $ 644,811 $ 442 0.27 % $ 694,727 $ 941 0.27 % $ 633,143 $ 860 0.27 % Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs) 882,538 157 0.07 % 661,793 122 0.07 % 850,427 303 0.07 % 660,191 244 0.07 % Mutual Fund OneSource and other no- transaction-fee funds (NTFs) 484,076 273 0.23 % 350,487 218 0.25 % 476,089 535 0.23 % 355,092 440 0.25 % Other third-party mutual funds, ETFs, and alternatives (1) 677,708 117 0.07 % 623,167 116 0.07 % 671,797 232 0.07 % 633,008 232 0.07 % Total mutual funds, ETFs, CTFs, and alternatives (1,2) $ 2,737,218 $ 1,020 0.15 % $ 2,280,258 $ 898 0.16 % $ 2,693,040 $ 2,011 0.15 % $ 2,281,434 $ 1,776 0.16 % Managed investing solutions (2) Fee-based $ 763,716 $ 707 0.37 % $ 595,203 $ 589 0.40 % $ 745,799 $ 1,381 0.37 % $ 592,843 $ 1,158 0.39 % Non-fee-based 159,255 120,726 152,442 120,584 Total managed investing solutions $ 922,971 $ 707 0.31 % $ 715,929 $ 589 0.33 % $ 898,241 $ 1,381 0.31 % $ 713,427 $ 1,158 0.33 % Other balance-based fees (1,3) 991,946 70 0.03 % 826,894 61 0.03 % 977,724 139 0.03 % 824,621 125 0.03 % Other (4) 28 22 53 41 Total asset management and administration fees $ 1,825 $ 1,570 $ 3,584 $ 3,100 (1) Beginning in the first quarter of 2026, alternative investments and related revenue were moved from other balance-based fees to other third-party mutual funds, ETFs, and alternatives. Prior period amounts and average fees have been reclassified and recalculated to reflect this change.(2) Managed investing solutions includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth AdvisoryTM, Schwab Managed PortfoliosTM, Managed Account Select , Schwab Advisor Network , Windhaven Strategies , ThomasPartners Strategies, Wasmer Schroeder StrategiesTM, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios , Institutional Intelligent Portfolios, Schwab Intelligent Portfolios Premium, Schwab Wealth Portfolios , AdvisorDirect , Essential Portfolios, Selective Portfolios, and Personalized Portfolios as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.(3) Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees. (4) Includes miscellaneous service and transaction fees, including fees relating to mutual funds and ETFs that are not balance-based. - 7 -THE CHARLES SCHWAB CORPORATIONGrowth in Client Assets and Accounts(Unaudited) Q2-26 % Change 2026 2025 vs. vs. Second First Fourth Third Second (In billions, at quarter end, except as noted) Q2-25 Q1-26 Quarter Quarter Quarter Quarter Quarter Assets in client accounts Schwab One , certain cash equivalents, and bank deposits 21 % 6 % $ 415.4 $ 390.5 $ 379.5 $ 357.1 $ 342.7 Bank deposit account balances (14) % (4) % 70.6 73.5 76.2 78.5 82.1 Proprietary mutual funds (Schwab Funds and Laudus Funds ) and CTFs Money market funds 6 % (1) % 690.5 700.8 693.8 666.4 653.5 Equity and bond funds and CTFs (1) 25 % 14 % 311.2 271.8 277.4 269.7 249.7 Total proprietary mutual funds and CTFs 11 % 3 % 1,001.7 972.6 971.2 936.1 903.2 Mutual Fund Marketplace (2) Mutual Fund OneSource and other NTF funds 7 % 10 % 485.7 443.3 454.2 473.5 453.9 Mutual fund clearing services 12 % 7 % 334.3 311.1 327.7 320.2 298.3 Other third-party mutual funds 17 % 8 % 1,366.0 1,263.7 1,274.3 1,237.2 1,168.5 Total Mutual Fund Marketplace 14 % 8 % 2,186.0 2,018.1 2,056.2 2,030.9 1,920.7 Total mutual fund assets 13 % 7 % 3,187.7 2,990.7 3,027.4 2,967.0 2,823.9 Exchange-traded funds Proprietary ETFs (1) 33 % 14 % 583.7 512.6 495.3 476.0 439.7 Other third-party ETFs 36 % 15 % 2,959.7 2,579.8 2,527.5 2,395.7 2,175.6 Total ETF assets 35 % 15 % 3,543.4 3,092.4 3,022.8 2,871.7 2,615.3 Equity and other securities 25 % 14 % 5,228.4 4,566.9 4,722.6 4,624.7 4,188.7 Fixed income securities 2 % 3 % 804.5 780.6 786.8 792.1 788.0 Margin loans outstanding 98 % 30 % (165.1) (126.7) (112.3) (97.2) (83.4) Total client assets 22 % 11 % $ 13,084.9 $ 11,767.9 $ 11,903.0 $ 11,593.9 $ 10,757.3 Client assets by business Investor Services (3) 21 % 12 % $ 7,343.0 $ 6,566.4 $ 6,707.5 $ 6,577.2 $ 6,069.9 Advisor Services 22 % 10 % 5,741.9 5,201.5 5,195.5 5,016.7 4,687.4 Total client assets 22 % 11 % $ 13,084.9 $ 11,767.9 $ 11,903.0 $ 11,593.9 $ 10,757.3 Net growth in assets in client accounts (for the quarter ended) Net new assets by business Investor Services (3) 23 % (29) % $ 38.5 $ 54.1 $ 60.4 $ 52.7 $ 31.2 Advisor Services 89 % (7) % 80.2 85.8 97.8 81.7 42.4 Total net new assets 61 % (15) % $ 118.7 $ 139.9 $ 158.2 $ 134.4 $ 73.6 Net market gains (losses) 1,198.3 (275.0) 150.9 702.2 754.0 Net growth (decline) $ 1,317.0 $ (135.1) $ 309.1 $ 836.6 $ 827.6 New brokerage accounts (in thousands, for the quarter ended) 26 % 7 % 1,388 1,299 1,268 1,143 1,098 Client accounts (in thousands) Active brokerage accounts 6 % 2 % 39,802 39,099 38,506 37,963 37,476 Banking accounts 12 % 3 % 2,352 2,281 2,214 2,150 2,096 Workplace Plan Participant Accounts (4) 5 % 1 % 5,888 5,844 5,740 5,619 5,586 (1) Includes balances held on and off the Schwab platform. As of June 30, 2026, off-platform equity and bond funds, CTFs, and ETFs were $53.8 billion, $5.0 billion, and $208.5 billion, respectively. (2) Excludes all proprietary mutual funds and ETFs.(3) Second quarter of 2026 includes net outflows of $1.1 billion from off-platform Schwab Bank Retail CDs. First quarter of 2026 includes net outflows of $0.1 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2025 includes net outflows of $5.7 billion from off-platform Schwab Bank Retail CDs. Third quarter of 2025 includes net outflows of $3.1 billion from off-platform Schwab Bank Retail CDs. Second quarter of 2025 includes net outflows of $6.7 billion from off-platform Schwab Bank Retail CDs.(4) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.- 8 -The Charles Schwab Corporation Monthly Activity Report For June 2026 2025 2026 Change Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Mo. Yr. Number of Trading Days 20.0 21.5 21.0 21.0 23.0 18.5 21.5 20.0 19.0 22.0 21.0 20.0 21.0 Market Indices (at month end) Dow Jones Industrial Average 44,095 44,131 45,545 46,398 47,563 47,716 48,063 48,892 48,978 46,342 49,652 51,032 52,319 3% 19% Nasdaq Composite 20,370 21,122 21,456 22,660 23,725 23,366 23,242 23,462 22,668 21,591 24,892 26,973 26,214 (3)% 29% Standard Poor s 500 6,205 6,339 6,460 6,688 6,840 6,849 6,846 6,939 6,879 6,529 7,209 7,580 7,499 (1)% 21% Client Assets (in billions of dollars) Beginning Client Assets 10,349.0 10,757.3 10,963.5 11,228.1 11,593.9 11,828.0 11,834.3 11,903.0 12,148.5 12,220.3 11,767.9 12,605.3 13,135.3 Net New Assets (1) 38.9 45.7 43.3 45.4 41.6 38.7 77.9 27.6 32.5 79.8 6.7 49.9 62.1 24% 60% Net Market Gains (Losses) 369.4 160.5 221.3 320.4 192.5 (32.4) (9.2) 217.9 39.3 (532.2) 830.7 480.1 (112.5) Total Client Assets (at month end) 10,757.3 10,963.5 11,228.1 11,593.9 11,828.0 11,834.3 11,903.0 12,148.5 12,220.3 11,767.9 12,605.3 13,135.3 13,084.9 22% Core Net New Assets (1,2) 42.6 46.9 44.4 46.2 44.4 40.4 79.1 27.8 32.5 79.7 7.2 49.9 62.7 26% 47% Receiving Ongoing Advisory Services (at month end) Investor Services 737.6 747.9 771.1 792.5 807.6 817.9 824.8 849.5 866.8 841.3 895.0 925.8 929.8 26% Advisor Services 4,687.4 4,765.1 4,888.2 5,016.7 5,106.1 5,155.9 5,195.5 5,311.7 5,394.3 5,201.5 5,525.7 5,716.0 5,741.9 22% Client Accounts (at month end, in thousands) Active Brokerage Accounts 37,476 37,658 37,798 37,963 38,145 38,266 38,506 38,730 38,925 39,099 39,300 39,536 39,802 1% 6% Banking Accounts 2,096 2,116 2,137 2,150 2,172 2,189 2,214 2,239 2,258 2,281 2,305 2,329 2,352 1% 12% Workplace Plan Participant Accounts (3) 5,586 5,619 5,606 5,619 5,696 5,730 5,740 5,793 5,829 5,844 5,864 5,886 5,888 5% Client Activity New Brokerage Accounts (in thousands) 323 377 382 384 429 365 474 476 395 428 437 461 490 6% 52% Client Daily Average Trades (DATs) (in thousands) 7,147 7,252 7,182 7,832 8,617 8,459 7,746 9,512 9,922 10,232 10,328 11,813 13,615 15% 90% Derivative Trades as a Percentage of Total Trades 20.8 % 21.3 % 22.5 % 22.3 % 23.8 % 21.7 % 21.4 % 20.1 % 20.1 % 20.4 % 21.4 % 19.8 % 17.7 % (210) bp (310) bp Margin Balances at month end (in billions of dollars) (4) 83.4 88.3 92.4 97.2 105.6 110.1 112.3 116.3 120.6 126.7 136.0 154.6 165.1 7% 98% Schwab Trading Activity IndexTM (STAX) (5) 40.7 41.8 43.7 46.1 48.1 48.8 48.5 50.0 57.3 56.0 50.1 55.1 59.1 7% 45% Selected Balances (in billions of dollars) Average Interest-Earning Assets (6) 416.5 416.7 414.4 419.8 428.3 429.1 436.0 441.7 434.2 436.8 444.6 442.0 448.4 1% 8% Transactional Sweep Cash (4,7) (at month end) 412.1 407.5 406.7 425.6 428.8 427.5 453.7 433.3 436.1 461.5 467.6 472.4 485.7 3% 18% Total Money Market Funds (at month end) 653.9 658.6 665.2 667.0 675.5 685.9 694.5 693.4 696.2 702.2 688.1 694.6 691.9 6% Client Cash as a Percentage of Client Assets (8) 9.9 % 9.7 % 9.5 % 9.4 % 9.3 % 9.4 % 9.7 % 9.3 % 9.3 % 9.9 % 9.2 % 8.9 % 9.0 % 10 bp (90) bp Net Buy (Sell) Activity (in billions of dollars) (9) Mutual Funds (5.4) (3.4) (2.2) (4.8) (6.3) (7.3) (3.6) (0.9) (2.4) (8.5) (5.7) (7.4) (10.4) Exchange-Traded Funds (ETFs) 19.4 25.8 23.0 25.6 28.1 24.9 39.8 34.8 37.4 25.3 27.4 34.2 32.0 (1) Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs. (2) Net new assets before significant one-time inflows or outflows, such as acquisitions divestitures or extraordinary flows (generally greater than $25 billion) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.(3) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. (4) Balances include margin loans and short credits related to certain long short strategies from which the Company earns a fixed net yield. For the month of June 2026, margin loans totaled $42.1 billion and short credits totaled $43.7 billion.(5) For additional information regarding STAX, please visit https www.schwab.com investment-research stax view-schwab-trading-activity-index.(6) Represents average total interest-earning assets on the Company s balance sheet. Beginning in December 2025, average balances of client margin loans and short credits related to certain client long short strategies from which the Company earns a fixed net yield are excluded from average interest-earning assets. Prior period amounts have been adjusted accordingly.(7) Transactional sweep cash includes bank sweep deposits, broker-dealer cash balances, other client cash held on the balance sheet (such as bank checking and savings deposits, short credits related to certain client long short strategies, and broker-dealer non-interest-bearing credits), and bank deposit account balances excludes proprietary and third-party CDs.(8) Schwab One , certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets client cash excludes brokered CDs issued by Charles Schwab Bank.(9) Represents the principal value of client mutual fund and ETF transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to investment managers. Excludes money market fund transactions.- 9 -THE CHARLES SCHWAB CORPORATIONNon-GAAP Financial Measures(In millions, except ratios and per share amounts)(Unaudited)In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab s second quarter earnings release contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide useful supplemental information about the financial performance of the Company, and facilitate meaningful comparison of Schwab s results in the current period to both historic and future results. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may not be comparable to non-GAAP financial measures presented by other companies.Schwab s use of non-GAAP measures is reflective of certain adjustments made to GAAP financial measures as described below. Non-GAAP Adjustment or Measure Definition Usefulness to Investors and Uses by Management Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs Schwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company s acquisitions, amortization of acquired intangible assets, restructuring costs, and, where applicable, the income tax effect of these expenses. Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company s revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives. We exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab s ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods. Costs related to acquisition and integration or restructuring fluctuate based on the timing of acquisitions, integration and restructuring activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company s ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company s underlying operating performance. Return on tangible common equity Return on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets net, and related deferred tax liabilities. Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab s balance sheet. Adjusted Tier 1 Leverage Ratio Adjusted Tier 1 Leverage Ratio represents the Tier 1 Leverage Ratio as prescribed by bank regulatory guidance for the consolidated company and for Charles Schwab Bank, SSB (CSB), adjusted to reflect the inclusion of accumulated other comprehensive income (AOCI) in the ratio. Inclusion of the impacts of AOCI in the Company s Tier 1 Leverage Ratio provides additional information regarding the Company s current capital position. We believe Adjusted Tier 1 Leverage Ratio may be useful to investors as a supplemental measure of the Company s capital levels. The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for employee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC s Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective.- 10 -THE CHARLES SCHWAB CORPORATIONNon-GAAP Financial Measures(In millions, except ratios and per share amounts)(Unaudited)The tables below present reconciliations of GAAP measures to non-GAAP measures Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Total Expenses Excluding Interest Net Income Total Expenses Excluding Interest Net Income Total Expenses Excluding Interest Net Income Total Expenses Excluding Interest Net Income Total expenses excluding interest (GAAP), Net income (GAAP) $ 3,403 $ 2,800 $ 3,048 $ 2,126 $ 6,697 $ 5,279 $ 6,192 $ 4,035 Amortization of acquired intangible assets (142) 142 (128) 128 (274) 274 (258) 258 Acquisition and integration-related costs (1) (28) 28 (39) 39 Income tax effects (2) N A (40) N A (32) N A (74) N A (63) Adjusted total expenses (non-GAAP), Adjusted net income (non-GAAP) $ 3,233 $ 2,930 $ 2,920 $ 2,222 $ 6,384 $ 5,518 $ 5,934 $ 4,230 (1) Acquisition and integration-related costs for the three months ended June 30, 2026 primarily consist of compensation and benefits. Acquisition and integration-related costs for the six months ended June 30, 2026 consist of $26 million of compensation and benefits and $13 million of professional services. There were no acquisition and integration-related costs for the three and six months ended June 30, 2025.(2) The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non-deductible acquisition costs and are used to present the acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs on an after-tax basis.N A Not applicable. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Amount % of Total Net Revenues Amount % of Total Net Revenues Amount % of Total Net Revenues Amount % of Total Net Revenues Income before taxes on income (GAAP), Pre-tax profit margin (GAAP) $ 3,669 51.9 % $ 2,803 47.9 % $ 6,857 50.6 % $ 5,258 45.9 % Amortization of acquired intangible assets 142 2.0 % 128 2.2 % 274 2.0 % 258 2.3 % Acquisition and integration-related costs 28 0.4 % 39 0.3 % Adjusted income before taxes on income (non-GAAP), Adjusted pre-tax profit margin (non-GAAP) $ 3,839 54.3 % $ 2,931 50.1 % $ 7,170 52.9 % $ 5,516 48.2 % Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Amount Diluted EPS Amount Diluted EPS Amount Diluted EPS Amount Diluted EPS Net income available to common stockholders (GAAP), Earnings per common share diluted (GAAP) $ 2,681 $ 1.54 $ 1,977 $ 1.08 $ 5,078 $ 2.91 $ 3,773 $ 2.07 Amortization of acquired intangible assets 142 .08 128 .07 274 .16 258 .14 Acquisition and integration-related costs 28 .02 39 .02 Income tax effects (40) (.02) (32) (.01) (74) (.04) (63) (.04) Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted EPS (non-GAAP) $ 2,811 $ 1.62 $ 2,073 $ 1.14 $ 5,317 $ 3.05 $ 3,968 $ 2.17 - 11 -THE CHARLES SCHWAB CORPORATIONNon-GAAP Financial Measures(In millions, except ratios and per share amounts)(Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Return on average common stockholders equity annualized (GAAP) 25 % 19 % 23 % 18 % Average common stockholders equity $ 43,203 $ 41,504 $ 43,298 $ 40,936 Less Average goodwill (12,294) (11,951) (12,121) (11,951) Less Average acquired intangible assets net (7,348) (7,551) (7,258) (7,615) Plus Average deferred tax liabilities related to goodwill and acquired intangible assets net 1,742 1,710 1,714 1,716 Average tangible common equity $ 25,303 $ 23,712 $ 25,633 $ 23,086 Adjusted net income available to common stockholders (1) $ 2,811 $ 2,073 $ 5,317 $ 3,968 Return on tangible common equity annualized (non-GAAP) 44 % 35 % 41 % 34 % (1) See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP). (Preliminary) June 30, 2026 CSC CSB Tier 1 Leverage Ratio (GAAP) 8.7% 10.7% Tier 1 Capital $ 42,751 $ 27,085 Plus AOCI adjustment (10,225) (8,899) Adjusted Tier 1 Capital 32,526 18,186 Average assets with regulatory adjustments 489,718 254,224 Plus AOCI adjustment (10,249) (9,022) Adjusted average assets with regulatory adjustments $ 479,469 $ 245,202 Adjusted Tier 1 Leverage Ratio (non-GAAP) 6.8 % 7.4 % - 12 -