Free cash flow remains highly erratic, oscillating between a $20.0 billion peak in 2023Q4 and a -$11.1 billion trough in 2024Q4 due to massive shifts in client cash balances.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 2.95B | 9.31B | 2.67B | 19.59B | 2.06B | 2.12B | 6.85B | 9.32B | 12.46B | -839M | 3.6B | 1.25B | 2.35B | 1.66B | 1.27B | 2.46B | -9M | 1.44B | 2M | 1.75B | 1.76B | 777M | 686M | 7M | 169M | -584M | 2.92B | 1.09B | 718.1M | 268.1M | 357.7M |
| Operating CF Margin % | - | 33.64% | 10.27% | 76.75% | 9.22% | 11.15% | 56.59% | 79.13% | 113.35% | -9.36% | 47.1% | 19.17% | 38.14% | 29.9% | 25.07% | 50.45% | -0.2% | 32.12% | 0.04% | 31.08% | 35.28% | 18.86% | 15.32% | 0.16% | 3.82% | -11.23% | 40.84% | 20.32% | 21.19% | 9.42% | 15.71% |
| Operating CF Growth % | 70.49% | 248.73% | -86.37% | 852.21% | -2.88% | -69.09% | -26.52% | -25.14% | 1584.62% | -123.29% | 189.17% | -46.93% | 41.79% | 30.81% | -48.62% | 27477.78% | -100.63% | 71750% | -99.89% | -0.8% | 126.51% | 13.27% | 9700% | -95.86% | 128.94% | -120.03% | 166.54% | 52.35% | 167.85% | -25.05% | 44.64% |
| Net Income | 9.42B | 8.85B | 5.94B | 5.07B | 7.18B | 5.86B | 3.3B | 3.7B | 3.51B | 2.35B | 1.89B | 1.45B | 1.32B | 1.07B | 928M | 864M | 454M | 787M | 1.23B | 2.41B | 1.23B | 725M | 286M | 472M | 109M | 199M | 718M | 666M | 348.5M | 270.3M | 233.8M |
| Depreciation & Amortization | 1.01B | 1.36B | 1.44B | 1.34B | 1.25B | 1.16B | 604M | 349M | 306M | 269M | 234M | 224M | 199M | 202M | 196M | 155M | 146M | 159M | 152M | 156M | 157M | 179M | 226M | 284M | 321M | 404M | 308M | 181M | 138.5M | 124.7M | 98.3M |
| Stock-Based Compensation | 191M | 317M | 337M | 320M | 366M | 254M | 204M | 183M | 197M | 153M | 141M | 135M | 115M | 116M | 105M | 99M | 87M | 75M | 69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 396M | 361M | -191M | -478M | -18M | 53M | -138M | 2M | 49M | 58M | 15M | -7M | -25M | -21M | 5M | 52M | -51M | 16M | 97M | 175M | -31M | -4M | -4M | 27M | 4M | -79M | -27M | -3M | -6.2M | -29.1M | -5.2M |
| Other Non-Cash Items | 1.1B | 1.42B | 1.36B | 1.53B | 1.86B | 2.72B | 1.94B | 645M | 487M | 393M | 270M | 147M | 115M | 186M | 368M | 323M | 23M | -3M | 60M | -932M | -287M | 278M | 19M | 0 | 121M | 24M | 420M | 262M | -3.39B | 3M | -1.78B |
| Working Capital Changes | -6.7B | -3B | -6.21B | 11.81B | -8.59B | -7.93B | 948M | 4.44B | 7.91B | -4.07B | 1.05B | -700M | 623M | 102M | -336M | 971M | -668M | 403M | -1.61B | -60M | 694M | -401M | 159M | -776M | -386M | -1.13B | 1.5B | -12M | 3.63B | -100.8M | 1.81B |
| Change in Receivables | -24.56B | -24.14B | -15.89B | -2.59B | 24.12B | -26.17B | -14.61B | -125M | -1.1B | -3.43B | 3M | -1.76B | -1.68B | -671M | -2.5B | 561M | -2.46B | -1.3B | 5.14B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 15.76B | 14.78B | 16.77B | -12.65B | -28.23B | 21.47B | 22.91B | 6.49B | 1.48B | -4.65B | 2.71B | -1.12B | -1.03B | -5B | 4.95B | 3.41B | 4.89B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 14.07B | 24.54B | 35.43B | 57.41B | 32.05B | -75.66B | -125.85B | 11.96B | -40.55B | -20.47B | -38.77B | -28.62B | -8.39B | -20.05B | -16.26B | -8.67B | -15.41B | -14.06B | -10.9B | 367M | -3.24B | -3.37B | -2.56B | -3.69B | -739M | -807M | -1.42B | -956M | -186.9M | -140.6M | -164.5M |
| Capital Expenditures | -431M | -548M | -620M | -700M | -971M | -916M | -631M | -708M | -570M | -400M | -346M | -266M | -400M | -249M | -148M | -180M | -129M | -140M | -188M | -168M | -59M | -78M | -194M | -153M | -160M | -301M | -705M | -370M | -185.5M | -139.4M | -159.8M |
| CapEx % of Revenue | 1.52% | 1.98% | 2.38% | 2.74% | 4.35% | 4.82% | 5.21% | 6.01% | 5.19% | 4.46% | 4.52% | 4.09% | 6.5% | 4.5% | 2.93% | 3.69% | 2.88% | 3.13% | 3.46% | 2.99% | 1.18% | 1.89% | 4.33% | 3.54% | 3.62% | 5.79% | 9.87% | 6.87% | 5.47% | 4.9% | 7.02% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 2M | 258.21B | 272.85B | 305.64B | 359.99B | 427.8B | 362.95B | 215.71B | 228.22B | 221.83B | 168.69B | 130.73B | 103.2B | 94.98B | 75.79B | 49.67B | 42.09B | 37.37B | 36.1B | 11.7B | 8.75B | 21.78B | 31.22B | 31.13B | 27.28B | 5.75B | 15.76B | 12.85B | 242.1M | 282.6M | 127.9M |
| Other Investing | -10.75B | -12.54B | -4.8B | -836M | -6.33B | -11.23B | -5.84B | -1.79B | 148M | -1.45B | -1.21B | -1.01B | -1.03B | -1.63B | -975M | -1.12B | -1.44B | -1.41B | -2.64B | 2.17B | -892M | -1.81B | -817M | -1.11B | -483M | -562M | -458M | -518M | -1.4M | -1.2M | -4.7M |
| Cash from Financing | -9.34B | -29.7B | -47.06B | -61.24B | -68.72B | 96.32B | 143.98B | -13.94B | 47.17B | 22.6B | 34.96B | 27.99B | 9.68B | 13.46B | 18.98B | 9.95B | 12.11B | 15.42B | 9.58B | 144M | 4.08B | 2.25B | 1.86B | 3.4B | -726M | 924M | 477M | 840M | -172.5M | 36.6M | -15.3M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -5.83B | -12.11B | 0 | -3.31B | -3.65B | 2.21B | 4.94B | -2.22B | -1B | 7M | 1.32B | 581M | 0 | 0 | 863M | 0 | 543M | 0 | -350M | -2.33B | -615M | -582M | -332M | 2M | -265M | -338M | 85M | 12M | -119.4M | -3.7M | -28.2M |
| Dividends Paid | -1.73B | -2.33B | -2.27B | -2.28B | -2.11B | -1.82B | -1.28B | -1.06B | -787M | -592M | -486M | -387M | -373M | -368M | -337M | -295M | -288M | -279M | -253M | -1.5B | -173M | -116M | -101M | -68M | -60M | -61M | -62M | -61M | -43.1M | -37.1M | -31.5M |
| Share Repurchases | -5.85B | -9.8B | 0 | -2.84B | -3.4B | 0 | 0 | -2.22B | -1B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -350M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 7.22B | -1.02B | -30.85B | -76.82B | -77.08B | 85.87B | 137.95B | -11.25B | 61.84B | 6.31B | 34.14B | 26.81B | 10.06B | 13.86B | 18.53B | 10.36B | 11.36B | 15.03B | 10.2B | 3.47B | 4.94B | 3B | 2.81B | 3.08B | -217M | 1.14B | 4M | 790M | 0 | 0 | 7.9M |
| Net Change in Cash | 7.68B | 4.15B | -8.96B | 15.75B | -34.62B | 22.78B | 24.98B | 7.35B | 19.07B | 1.29B | -209M | 615M | 3.63B | -4.93B | 3.98B | 3.75B | -3.31B | 2.8B | -1.32B | 2.26B | 2.6B | -346M | -7M | -282M | -1.29B | -469M | 1.97B | 980M | 358.5M | 164.1M | 178.3M |
| Free Cash Flow | 2.52B | 8.76B | 2.05B | 18.89B | 1.09B | 1.2B | 6.22B | 8.62B | 11.89B | -1.24B | 3.26B | 980M | 1.95B | 1.41B | 1.12B | 2.28B | -138M | 1.3B | -186M | 1.58B | 1.7B | 699M | 492M | -146M | 9M | -885M | 2.21B | 898M | 532.6M | 128.7M | 197.9M |
| FCF Margin % | 8.9% | 31.66% | 7.88% | 74.01% | 4.87% | 6.33% | 51.38% | 73.12% | 108.16% | -13.83% | 42.58% | 15.07% | 31.64% | 25.4% | 22.14% | 46.76% | -3.08% | 28.99% | -3.42% | 28.09% | 34.1% | 16.97% | 10.98% | -3.37% | 0.2% | -17.01% | 30.97% | 16.68% | 15.72% | 4.52% | 8.69% |
| FCF Growth % | -74.25% | 327.46% | -89.15% | 1639.13% | -9.65% | -80.68% | -27.81% | -27.5% | 1059.32% | -138.04% | 232.35% | -49.69% | 38.45% | 25.85% | -51.05% | 1755.07% | -110.64% | 797.31% | -111.79% | -7.23% | 143.35% | 42.07% | 436.99% | -1722.22% | 101.02% | -140.03% | 146.21% | 68.61% | 313.83% | -34.97% | 142.23% |
| FCF per Share | 1.44 | 4.93 | 1.12 | 10.32 | 0.57 | 0.63 | 4.34 | 6.53 | 8.73 | -0.92 | 2.44 | 0.74 | 1.48 | 1.09 | 0.88 | 1.86 | -0.12 | 1.12 | -0.16 | 1.29 | 1.32 | 0.53 | 0.36 | -0.11 | 0.01 | -0.63 | 1.57 | 0.65 | 0.43 | 0.10 | 0.16 |
| FCF Conversion (FCF/Net Income) | 0.27x | 1.05x | 0.45x | 3.87x | 0.29x | 0.36x | 2.08x | 2.52x | 3.55x | -0.36x | 1.91x | 0.86x | 1.78x | 1.55x | 1.36x | 2.85x | -0.02x | 1.83x | 0.00x | 0.73x | 1.43x | 1.07x | 2.40x | 0.01x | 1.55x | -2.93x | 4.06x | 1.64x | 2.06x | 0.99x | 1.53x |
| Interest Paid | 3.36B | 4.56B | 6.66B | 5.62B | 1.35B | 501M | 434M | 1.07B | 798M | 327M | 160M | 121M | 103M | 99M | 143M | 168M | 178M | 173M | 232M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.53B | 1.57B | 1.49B | 1.62B | 2.13B | 2.05B | 803M | 1.2B | 927M | 1.21B | 991M | 810M | 778M | 624M | 508M | 517M | 327M | 446M | 767M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in financial statements, the relationship between net income and operating cash flow exhibits extreme variance, with OCF/NI ratios swinging from a high of 19.17 in 2023Q4 to a low of -5.88 in 2024Q4, indicating that reported earnings are frequently decoupled from immediate cash generation.
The significant divergence between net income and operating cash flow suggests that non-cash items and working capital fluctuations heavily influence the firm's reported profitability. Investors should monitor whether this volatility is a structural byproduct of the banking segment's deposit movements or a sign of underlying earnings quality degradation.
Based on recent SEC filings, SCHW's free cash flow trajectory has been inconsistent, oscillating between a peak of $20.0 billion in 2023Q4 and a trough of -$11.1 billion in 2024Q4, which highlights the sensitivity of cash flow to the firm's broader financial and investment activities.
The erratic nature of FCF appears to be driven by the firm's unique position as both a brokerage and a bank, where liquidity needs can shift rapidly. This instability warrants further investigation into whether the firm can maintain consistent cash generation to support its dividend and buyback programs.
According to the provided data, working capital changes have been the primary driver of cash flow volatility, with swings as large as $18.5 billion in 2023Q4 and -$13.4 billion in 2024Q4, reflecting the massive, rapid shifts in client cash balances inherent to the business model.
These massive fluctuations in working capital suggest that the firm's cash flow is highly susceptible to client behavior and broader market sentiment regarding interest rates. The firm's ability to manage these liquidity swings without compromising its core operations appears to be a critical, yet unpredictable, component of its financial health.
As indicated by recent financial disclosures, the company has maintained a consistent dividend payout, with quarterly payments hovering near $560 million, while simultaneously resuming share repurchases of $2.8 billion in 2025Q4, suggesting a management focus on returning capital despite the underlying volatility in operating cash flow.
The resumption of buybacks alongside steady dividends may indicate management's confidence in the long-term stability of the RIA custody platform. However, investors should monitor whether these capital returns remain sustainable if the current volatility in operating cash flow persists or if regulatory capital requirements tighten further.
Quick answers to the most common questions about buying SCHW stock.
The Charles Schwab Corporation (SCHW) generated $9.31B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Charles Schwab Corporation (SCHW) generated $8.76B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
The Charles Schwab Corporation (SCHW) spent $548.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, The Charles Schwab Corporation (SCHW) returned $2.33B to shareholders via cash dividends and spent $9.80B on share repurchases. This shows the company's commitment to returning capital to its equity investors.