Charles Schwab reported a record second quarter on Wednesday, with revenue hitting $7.1 billion — up 21% from a year ago and beating Wall Street estimates. The firm also opened direct Bitcoin and Ethereum trading for its retail clients, marking a major step into crypto for one of the largest U.S. brokerages.
Record quarter across the board
Adjusted earnings per share came in at $1.62, above the consensus estimate of $1.55. Net income rose 32% to $2.8 billion. Client assets hit a record $13.08 trillion, up 22% year-over-year. Schwab opened 1.4 million new brokerage accounts in Q2 and brought in $120 billion in core net new assets.
Daily average trades reached a record 11.9 million, up 57% from a year ago. Margin balances nearly doubled to $165.1 billion. Net interest margin improved to 3.00% from 2.66%.
Crypto goes live for retail clients
Schwab now lets its retail customers buy and sell Bitcoin and Ethereum directly through their brokerage accounts. The timing is notable: Bitcoin is down 43% over the past year, trading near $66,690, and Ethereum is down 49%, near $1,927. Schwab is entering the space even as the broader crypto market remains in a prolonged downturn.
The move follows a trend of traditional financial firms adding crypto exposure. Schwab had previously offered crypto-related products like futures and trusts, but this is the first time it's offering spot trading to everyday clients.
New tools and what's next
Schwab also launched a new AI tool called Portfolio Insights, which provides daily portfolio summaries for clients. The company plans to offer access to Cboe's prediction markets in the coming months.
CEO Rick Wurster, who took the role in January 2025, didn't comment on the earnings call about the crypto launch beyond the prepared remarks. Schwab stock traded near $102.91 after the report.
The next concrete milestone: Schwab expects to roll out Cboe prediction market access later this year, though no exact date has been set.
