Charles Schwab (NYSE: SCHW) posted strong results in Q3 of 2025, showing that the financial services company is thriving. Revenue jumped 26.6% from the same period last year, reaching $6.14 billion. On top of that, Schwab beat earnings expectations, reporting a non-GAAP profit of $1.31 per share—5.2% higher than analysts had predicted.

These strong numbers came from increased client activity and more people using Schwab’s products and services. The company opened 1.1 million new brokerage accounts and brought in $138 billion in net new assets this quarter alone. CEO Rick Wurster said clients are relying more on Schwab for their financial needs, thanks to the firm’s wide range of services and digital tools.

A big part of Schwab’s success this quarter was driven by high trading volumes, strong brokerage and lending growth, and more customer engagement both online and in branches. Management also pointed out that their margin lending balances remained high—meaning more clients are borrowing against their investments.

Looking forward, Schwab is focused on growing even more by bringing in younger investors, expanding into digital assets like cryptocurrency, and continuing to integrate clients from its acquisition of Ameritrade. The company plans to launch direct crypto trading in the first half of 2026, starting with Bitcoin and Ethereum.

Even though interest rate changes could affect future earnings, Schwab believes it can manage these shifts effectively. CFO Mike Verdeschi said the company will continue to invest in client services while keeping a close eye on revenue and cost control to stay profitable in any market environment.

Key Highlights from the Quarter:

– Ameritrade Integration: Schwab is making solid progress with its Ameritrade merger. Former Ameritrade clients are more satisfied and are now adding money to their accounts, reversing earlier trends of withdrawals.

– Wealth and Lending Growth: Managed investment products saw a 40% increase in net inflows compared to last year. Bank lending also hit record highs, especially through pledged asset lines, as more clients look for flexible borrowing options.

– Trading Platform Surge: Use of Schwab’s advanced trading tool, thinkorswim, nearly doubled among existing clients. This helped boost trading activity and deepen client engagement.

– Crypto Interest Rising: Visits to Schwab’s digital asset content nearly doubled. Schwab already holds about 20% market share in spot crypto ETFs, signaling strong interest ahead of its full crypto launch in 2026.

– Operational Improvements: Schwab is using AI and digital tools to improve service speed and reduce paperwork. These efforts helped keep costs from rising as fast as revenue, improving efficiency overall.

What’s Next for Schwab?

– Crypto Launch: Direct crypto trading is expected to go live in 2026, starting with Bitcoin and Ethereum. Schwab aims to become a serious player in digital assets by offering crypto access alongside its existing financial services.

– Interest Rate Strategy: If interest rates drop, it could lead to more client cash deposits and boost interest income. However, Schwab will need to carefully manage how it reinvests those funds to maintain earnings momentum.

– Advisor Network Growth: Schwab is expanding its support for independent financial advisors. This focus on the advisor channel is expected to bring in more assets, especially as improvements from the Ameritrade deal continue to roll out.

What to Watch in Future Quarters:

1. Progress on Schwab’s crypto platform launch and how it impacts client asset growth.
2. Continued performance of former Ameritrade clients as they become more engaged and contribute more assets.
3. Effects of changing interest rates on client cash behavior and Schwab’s net interest income.
4. Updates on digital platform upgrades and advisor channel expansion.

As of now, Charles Schwab stock is trading at $94.09—almost exactly where it was before earnings were announced. Investors watching this space may want to consider whether now is the right time to buy or hold based on future growth drivers like crypto, digital upgrades, and advisor services.

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