Schwab’s long-short strategy balances accounted for about 82% of its margin-loan growth in the third quarter. Those loans rose by US$18.6 billion to US$60.7 billion, while total margin loans increased US$22.8 billion to US$187.9 billion. The financing shift accompanied record core net new assets of US$190.4 billion, 38% above the year-earlier quarter.[1][2]
Net revenue reached US$7.171 billion, up 17% year over year, and GAAP net income reached US$2.906 billion, up 23%. The company opened 1.2 million new brokerage accounts during the quarter, bringing total client accounts to 48.6 million. These results combine asset gathering, trading and financing, with different measures needed to understand each.[1]
Asset gathering accelerated even as trading cooled from June
Second quarter to third quarter
| Measure | Q2 2026 | Q3 2026 | Change or interpretation |
|---|---|---|---|
| Core net new assets | US$119.8bn | US$190.4bn | US$70.6bn higher in quarterly net flows.Source 2Source 1 |
| Total client assets | US$13.08tn | US$13.33tn | US$0.25tn higher; market prices and flows both affect the total.Source 2Source 1 |
| Total client accounts | 48.0m | 48.6m | Net increase of 0.6m across all reported account categories.Source 2Source 1 |
| Margin loans | US$165.1bn | US$187.9bn | Up US$22.8bn, or about 13.8%.Source 2Source 1 |
| Long-short strategy margin loans | US$42.1bn | US$60.7bn | Up US$18.6bn, about 82% of the total margin-loan increase.Source 2Source 1 |
| Daily average trades | 11.9m | 10.7m | Lower sequentially despite remaining 44% above the prior-year quarter.Source 2Source 1 |
Client assets rose US$250 billion from June to US$13.33 trillion. Core net new assets measure flows under Schwab’s methodology, while the asset total also reflects security prices and other balance changes. Daily average trades fell from 11.9 million to 10.7 million sequentially but remained 44% above the prior-year quarter, so the trading comparison depends on the period used.[1][2]
Long-short growth changes the financing mix
The US$60.7 billion long-short balance represented about 32.3% of total margin loans at September-end, compared with about 25.5% in June. Both shares and the 82% contribution to growth are calculations from reported rounded balances. The remaining margin-loan balance increased by US$4.2 billion over the quarter.[1][2]
Revenue and balance-sheet indicators
| Measure | Value | Context |
|---|---|---|
| Net interest margin | 3.04% | Up from 3.00% in the second quarter.Source 1Source 2 |
| Transactional sweep cash | US$492.8bn | US$7.1 billion above June; the company linked the movement partly to long-short demand and organic growth.Source 1 |
| Trading revenue | US$1.158bn | Up 16% year over year; not the same measure as client trading volume.Source 1 |
| Net interest revenue | US$3.476bn | The largest reported revenue line in the quarter.Source 1 |
| Bank loans | US$72.3bn | Up 35% year over year at September month-end.Source 1 |
The programme used by RIA clients produces margin-loan debits and short cash credits. Quarter-end short credits associated with the strategies were US$63.3 billion, compared with US$43.7 billion in June. Average related margin loans were US$51.4 billion during the quarter, versus US$2.8 billion a year earlier, showing that the expansion also affected balances held through the period.[1][2]
Schwab earns a fixed net yield on certain long-short strategy balances and excludes their average margin loans and short credits from reported interest-earning assets and funding sources. From the second quarter of 2026, the net fixed yield is presented in other interest revenue. That treatment matters when reading the 3.04% net interest margin: the growing gross strategy balances are not treated like ordinary margin balances throughout the interest table.[1]
The next comparison should therefore connect margin loans, short credits, sweep cash and net interest revenue, alongside asset flows and trade counts. Financing balances show the scale of the activity; their net yield and accounting treatment determine how that scale feeds into earnings.[1]
Sources & further reading
- Third-quarter 2026 results and operating tables The Charles Schwab Corporation · 15 Oct 2026 · Accessed 16 Oct 2026
- Second-quarter 2026 results and operating tables The Charles Schwab Corporation · 21 Jul 2026 · Accessed 16 Oct 2026