The Charles Schwab Corporation

Read together, the 2025 annual figures and the Q1 2026 10-Q describe a business with rising revenue and earnings, partly funded by a growing balance of short-term borrowing, with a capital ratio that has narrowed. The Beneish M-Score is -2.288, which the label places below -1.78 and not in the elevated zone. That means the standard screen did not flag the statements for manipulation-risk review, but it is a screening ratio, not proof that the statements are accurate. The Piotroski F-Score is 6 of 6 computable signals, meaning every signal the score could compute was favorable for 2025. Operating cash flow divided by net income was 1.05 for 2025, so cash from operations roughly matched reported earnings that year, although the multi-year cash flow history shows how much single years can vary. The Altman Z-Score and Fog Index are not on file for this filing, so this synthesis gives no value for either. The business runs through two reportable segments, Investor Services and Advisor Services. The 10-K reports $11.90 trillion in client assets, 38.5 million active brokerage accounts, and 2.2 million banking accounts at December 31, 2025. Management's non-GAAP presentation emphasizes adjusted diluted EPS of $1.43 and a 40% return on tangible common equity, both of which exclude amortization of acquired intangibles and acquisition costs. The GAAP diluted EPS of $1.37 and 23% GAAP return on average common equity include those costs. Readers may want to look at the Tier 1 leverage tables in the 10-Q, where the Charles Schwab Corporation ratio fell from 9.9% to 8.9% year over year, and at the risk-factor section of the 10-K, which the excerpt provided here mostly does not reproduce beyond the table of contents. The scores are favorable, but the cash, funding, and capital lines deserve the closest reading.

Catalyst.Management's Q1 2026 MD&A points to growth in net revenues, which rose to $6,482 million from $5,599 million, an increase of about 15.8%. Asset management and administration fees rose to $1,759 million from $1,530 million, and trading revenue rose to $1,089 million from $908 million. For full-year 2025, revenue was $23.92 billion, up 22.0% from $19.61 billion in 2024, and net income was $8.85 billion versus $5.94 billion. Q1 2026 diluted EPS was $1.37 versus $0.99. The filings also show $577 million of cash paid for an acquisition in Q1 2026, tied to the Forge Global Holdings deal valued at approximately $660 million.

Hidden risk.Cash flow and funding figures swing widely. Operating cash flow was $9.31 billion in 2025, but $2.67 billion in 2024 and $19.59 billion in 2023, so one year's cash-to-earnings ratio says little about the next. Bank deposits fell $2,706 million in Q1 2026 after falling $12,961 million in Q1 2025, while other short-term borrowings rose to $12,486 million from $6,913 million at December 31, 2025. The Charles Schwab Corporation Tier 1 leverage ratio was 8.9% at March 31, 2026, down from 9.9% a year earlier. Non-GAAP measures such as the 40% return on tangible common equity exclude goodwill and intangibles, so readers may want to compare them with the 23% GAAP return on average common equity.