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Charles Schwab Q2 revenue tops estimates as daily trades hit record 11.9 million

Charles Schwab Q2 revenue tops estimates as daily trades hit record 11.9 million

Schwab posted record quarterly revenue and profit, opened direct Bitcoin and Ethereum trading for retail clients, and drew 1.4 million new brokerage accounts alongside $120 billion in core net new assets.

BTC
ETH

Fact Check
Every specific claim is directly confirmed by the official Schwab press release: record quarterly revenue ($7.1B) and profit ($2.8B net income), launch of Schwab Crypto enabling direct Bitcoin and Ethereum trading for retail clients, 1.4 million new brokerage accounts, and record daily average trades of 11.9 million (+57% YoY). The core net new assets figure of $119.8 billion rounds to the stated '$120 billion.' Reuters and Yahoo Finance independently corroborate the same figures. The only minor caveat is that the claim revenue 'tops estimates' — Yahoo confirms revenue beat the $6.85B estimate, so this holds as well.
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Summary

Charles Schwab reported record quarterly revenue of $7.1 billion, up 21% from a year earlier and above Wall Street forecasts, as surging client activity lifted results. Adjusted earnings came in at $1.62 per share, topping consensus expectations near $1.55, while net income rose 32% to $2.8 billion. Daily average trading volume climbed 57% to a record 11.9 million, helping drive a 28% increase in trading revenue even as revenue per trade fell 19% to $1.64. Client assets rose 22% to a record $13.08 trillion, and Rick Wurster said investors opened 1.4 million new brokerage accounts and brought $120 billion in core net new assets to the firm in the quarter. Schwab also launched direct Bitcoin and Ethereum trading for retail clients for the first time, expanding beyond prior access through funds and futures. Net interest margin improved to 3.00% from 2.66%, extending the firm's recovery from the funding pressures that weighed on it through 2023.

Terms & Concepts
  • core net new assets: Client assets added to a firm during a period, reflecting inflows and transfers after accounting for outflows.
  • net interest margin: A measure of how much a financial firm earns on interest-bearing assets relative to what it pays on funding.
  • margin balances: Money clients borrow against their portfolios to trade securities, often signaling greater risk-taking when balances rise.