SCHWAB CHARLES CORP
For the period ended Dec 31, 2025. Filed Feb 25, 2026.
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FY2025 · Filed Feb 25, 2026
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Earnings Per Common Share
- Earnings Per Common Share
As described in Note 19, TD Bank disposed of all of its common shares of CSC during the first quarter of 2025, including its holdings of nonvoting common stock. As of February 12, 2025, the Company hadno remaining nonvoting common stock outstanding and accordingly, no dividends were paid on nonvoting common stock during the year ended December 31, 2025.
EPS is computed using the two-class method. Preferred stock dividends, and undistributed earnings and dividends allocated to participating securities are subtracted from net income in determining net income available to common stockholders. Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is calculated similar to basic EPS except that the numerator and denominator are adjusted as necessary for any effects of dilutive potential common shares, which include, if dilutive, outstanding stock options and non-vested restricted stock units.
For the computations of basic and diluted EPS, undistributed net income of the Company was allocated on a proportionate basis to the voting and nonvoting common stock, as the distribution rights of the two classes were identical. Diluted EPS was calculated using the treasury stock method for outstanding stock options and non-vested restricted stock units and the if-converted method for nonvoting common stock, which assumed conversion of all outstanding nonvoting common stock to common stock.
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The computations of basic and diluted EPS for common stock and nonvoting common stock for the year ended December 31, 2025 are as follows:
| Year Ended December 31, | 2025 | ||
|---|---|---|---|
| Common Stock | Nonvoting Common Stock | Consolidated Common Stock | |
| Basic earnings per share: | |||
| Numerator | |||
| Net income | $8,830 | $22 | $8,852 |
| Preferred stock dividends and other (1) | (434) | (1) | (435) |
| Net income available to common stockholders | $8,396 | $21 | $8,417 |
| Denominator | |||
| Weighted-average common shares outstanding — basic | 1,798 | 51 | 1,804 |
| Basic earnings per share | $4.67 | $.41 | $4.67 |
| Diluted earnings per share: | |||
| Numerator | |||
| Net income available to common stockholders | $8,396 | $21 | $8,417 |
| Reallocation of net income available to common stockholders as a result of conversion of nonvoting to voting shares | 21 | — | — |
| Allocation of net income available to common stockholders | $8,417 | $21 | $8,417 |
| Denominator | |||
| Weighted-average common shares outstanding — basic | 1,798 | 51 | 1,804 |
| Conversion of nonvoting shares to voting shares | 6 | — | — |
| Common stock equivalent shares related to stock incentive plans | 5 | — | 5 |
| Weighted-average common shares outstanding — diluted (2) | 1,809 | 51 | 1,809 |
| Diluted earnings per share | $4.65 | $.41 | $4.65 |
(1)Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units.
(2)Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 13 million in 2025.
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As of December 31, 2024 and 2023, the Company had voting and nonvoting common stock outstanding. The computations of basic and diluted EPS for the two classes for the years ended December 31, 2024 and 2023 are as follows:
| Year Ended December 31, | 2024 | 2023 | ||
|---|---|---|---|---|
| Common Stock | Nonvoting Common Stock | Common Stock | Nonvoting Common Stock | |
| Basic earnings per share: | ||||
| Numerator | ||||
| Net income | $5,777 | $165 | $4,925 | $142 |
| Preferred stock dividends and other (1) | (451) | (13) | (406) | (12) |
| Net income available to common stockholders | $5,326 | $152 | $4,519 | $130 |
| Denominator | ||||
| Weighted-average common shares outstanding — basic | 1,777 | 51 | 1,773 | 51 |
| Basic earnings per share | $3.00 | $3.00 | $2.55 | $2.55 |
| Diluted earnings per share: | ||||
| Numerator | ||||
| Net income available to common stockholders | $5,326 | $152 | $4,519 | $130 |
| Reallocation of net income available to common stockholders as a result of conversion of nonvoting to voting shares | 152 | — | 130 | — |
| Allocation of net income available to common stockholders | $5,478 | $152 | $4,649 | $130 |
| Denominator | ||||
| Weighted-average common shares outstanding — basic | 1,777 | 51 | 1,773 | 51 |
| Conversion of nonvoting shares to voting shares | 51 | — | 51 | — |
| Common stock equivalent shares related to stock incentive plans | 6 | — | 7 | — |
| Weighted-average common shares outstanding — diluted (2) | 1,834 | 51 | 1,831 | 51 |
| Diluted earnings per share | $2.99 | $2.99 | $2.54 | $2.54 |
(1)Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units.
(2)Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 18 million and 19 million in 2024 and 2023, respectively.
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