Charles Schwab (SCHW) delivered its strongest quarterly results ever, with revenue reaching a record $7.1 billion, representing a 21% increase from the previous year. According to reports from The Motley Fool, the brokerage firm's adjusted earnings of $1.62 per share also topped Wall Street consensus estimates of $1.55. The company's net income surged 32% to $2.8 billion, while client assets grew 22% to a record $13.08 trillion. Client trading activity reached a new high of 11.9 million trades per day, up 57% from the previous year, demonstrating strong client engagement across the platform.
As reported by The Motley Fool, clients opened 1.4 million new brokerage accounts during the quarter and brought $120 billion in core net new assets to the firm. Margin balances nearly doubled to $165.1 billion, indicating clients are taking larger positions in the market. However, Schwab earned 19% less per trade than a year ago, at $1.64, though the company benefited from increased trading volume rather than improved pricing. Net interest margin improved to 3.00% from 2.66%, as the firm continues recovering from cash flow challenges that impacted it through 2023.
According to The Motley Fool, Schwab launched direct Bitcoin (BTC) and Ethereum (ETH) trading for retail clients for the first time, marking a significant expansion into cryptocurrency services. Bitcoin currently trades near $66,690, down 43% over the past year, while Ethereum is near $1,927, down 49%. The timing represents a bold move as the cryptocurrency market faces significant headwinds. Schwab joins competitors like Robinhood, which has offered retail crypto since 2018, and Interactive Brokers and Fidelity, which launched crypto services in 2021 and 2022 respectively.
As reported by The Motley Fool, Schwab introduced Portfolio Insights, a new artificial intelligence tool that summarizes daily portfolio moves for clients. Access to Cboe's prediction markets is scheduled for the coming months, further expanding the platform's capabilities. CEO Rick Wurster, who has led the firm since January 2025, credited the firm's asset gathering success in the earnings release. The company's strong performance has set a positive tone for other brokerage firms reporting this quarter, with analysts raising price targets for rivals ahead of Robinhood's July 29 earnings report.
