Charles Schwab vs Robinhood Markets: Revenue, Profit and Business Model
Charles Schwab reported $23.9B of revenue in FY2025 and $8.9B of net income. Robinhood Markets reported $4.5B of revenue in FY2025 and $1.9B of net income.
Latest financial snapshot
Charles Schwab
- Latest revenue
- $23.9B (FY2025)
- Net income
- $8.9B
- Net margin
- 37.0%
- Revenue growth
- +15.4% a year, FY2020–FY2025
Robinhood Markets
- Latest revenue
- $4.5B (FY2025)
- Net income
- $1.9B
- Net margin
- 42.1%
- Revenue growth
- +58.9% a year, FY2019–FY2025
Financial summary
Charles Schwab
Schwab is a spread-and-fee business. In FY2025, net revenues rose 22% to $23.921 billion and net income rose to $8.852 billion from $5.94 billion in 2024, as client cash stabilized, high-cost bank funding was paid down, and trading hit records. Momentum carried into 2026: first-half net revenues reached $13.554 billion (up 18%) and Q2 2026 GAAP EPS hit a record $1.54, with an annualized return on equity of 25%. Schwab returned $11.8 billion of capital to shareholders in 2025 through buybacks and dividends.
Robinhood Markets
Robinhood swung from a $541 million net loss in 2023 to $1.411 billion of net income in 2024 and $1.883 billion in 2025, as revenue grew from $1.865 billion to $4.473 billion. Adjusted EBITDA reached about $2.5 billion in 2025, a 56% margin. Growth in 2026 has shifted toward options, equities and event contracts: Q2 2026 event contracts revenue was $156 million, more than 10 times the prior year, while crypto revenue fell to $100 million.
Revenue and profit by year
Charles Schwab
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $23.9B | $8.9B | 37.0% | +22.0% | Source |
| FY2024 | $19.6B | — | 0.0% | +4.1% | Source |
| FY2023 | $18.8B | — | 0.0% | -9.3% | Source |
| FY2022 | $20.8B | — | 0.0% | +12.1% | Source |
| FY2021 | $18.5B | — | 0.0% | +58.4% | Source |
| FY2020 | $11.7B | — | 0.0% | — | Source |
Robinhood Markets
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $4.5B | $1.9B | 42.1% | +51.6% | Source |
| FY2024 | $3B | $1.4B | 47.8% | +58.2% | Source |
| FY2023 | $1.9B | -$541M | -29.0% | +37.3% | Source |
| FY2022 | $1.4B | -$1B | -75.7% | -25.2% | Source |
| FY2021 | $1.8B | -$3.7B | -203.1% | +89.5% | Source |
| FY2020 | $958M | $7M | 0.7% | +245.2% | Source |
| FY2019 | $277.5M | -$106.6M | -38.4% | — | Source |
Where the revenue comes from
Charles Schwab
- Net Interest Revenue49%
$11.750 billion in FY2025. The spread between what Schwab earns on client cash swept to Charles Schwab Bank, its investment portfolio, margin loans, Pledged Asset Lines, and mortgages, and what it pays clients on those balances. It is the most rate-sensitive line and fell during the 2023 cash-sorting period before recovering in 2024-2025.
- Asset Management and Administration Fees27%
$6.506 billion in FY2025. Fees on Schwab ETFs, mutual funds, and money market funds, managed and advisory programs such as Schwab Wealth Advisory, and third-party funds on the Mutual Fund OneSource platform. This line grows with markets and net new assets, so it partly offsets rate risk. It reached $1.8 billion in Q2 2026, up 16% year over year.
- Trading Revenue16%
$3.921 billion in FY2025. Options contract fees, payment for order flow, futures, and fixed-income markups. Online stock and ETF trades have been commission-free since October 2019, but record activity (11.9 million daily average trades in Q2 2026) has made trading a growing contributor again.
- Bank Deposit Account Fees4%
$977 million in FY2025, mostly fees earned from the insured deposit account arrangement under which certain client cash is swept to TD Bank.
- Other Revenue3%
$767 million in FY2025, including software and data fees, exchange processing fees, and other items.
Robinhood Markets
- options transaction revenue
- equities transaction revenue
- cryptocurrency transaction revenue
- event contracts (prediction markets)
- net interest revenue
- Robinhood Gold subscriptions
- credit card
Business model and strategy
Charles Schwab
How it makes money
Schwab offers $0 online commissions on U.S.-listed stocks and ETFs and earns revenue from five lines (FY2025 figures): 1) Net interest revenue, $11.75 billion: the spread between what Schwab earns on client cash swept to Charles Schwab Bank, margin loans, Pledged Asset Lines, and mortgages, and what it pays on those balances.
Growth strategy
Under CEO Rick Wurster, Schwab is focused on doing more for each client rather than just adding accounts. The playbook: grow wealth and advice (Schwab Wealth Advisory net flows rose 80% year over year in Q2 2026), expand lending through Pledged Asset Lines and mortgages, widen product access with Schwab Crypto and private-company shares via the $660 million Forge Global acquisition (closed March 2, 2026), keep winnin…
Competitive advantage
Schwab's edge is scale plus a low cost base. It held $13.08 trillion in client assets at June 30, 2026, and its expenses run at roughly 0.11% of client assets, so it can charge $0 commissions and still post a 51.9% GAAP pre-tax margin (Q2 2026). It is also the largest custodian for independent registered investment advisors, a sticky business-to-business franchise that grew with the TD Ameritrade deal.
Robinhood Markets
How it makes money
Robinhood charges no commission on US stock, ETF and options trades and earns revenue in three buckets. Transaction-based revenues ($776 million in Q2 2026) come from payment for order flow on options and equities, spreads on crypto trades, and fees on event contracts (prediction markets).
Growth strategy
Robinhood's growth strategy is to win "share of wallet" beyond trading: IRA matches and retirement transfers, the Gold Card, banking features, advisory custody through TradePMR, crypto exchange capacity through Bitstamp, event contracts, and expansion in the UK and EU. In June 2026 it cut about 10% of staff to flatten management layers while continuing to invest in new products.
Competitive advantage
Robinhood's edge is a single, well-designed mobile app that bundles brokerage, crypto, prediction markets, retirement, cash and credit, plus fast product shipping. Gold subscribers (4.8 million in Q2 2026) get perks such as an IRA match and a higher cash yield, which helps pull deposits away from older brokerages: net deposits were $75.7 billion in the 12 months to June 2026.
Questions about Charles Schwab vs Robinhood Markets
Which company has higher revenue — The Charles Schwab Corporation or Robinhood Markets, Inc.?
The Charles Schwab Corporation reported $23.9B (FY2025), while Robinhood Markets, Inc. reported $4.5B (FY2025). By last reported revenue, The Charles Schwab Corporation is the larger business, with Robinhood Markets, Inc. reporting a smaller revenue base.
What is the market cap of The Charles Schwab Corporation vs Robinhood Markets, Inc.?
The Charles Schwab Corporation's market capitalisation stands at $171.0B, while Robinhood Markets, Inc.'s is $101.0B. The Charles Schwab Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Robinhood Markets, Inc..
Which is more financially efficient — The Charles Schwab Corporation or Robinhood Markets, Inc.?
The Charles Schwab Corporation generates $725k / employee in revenue per employee, while Robinhood Markets, Inc. generates $1.54M / employee. Robinhood Markets, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do The Charles Schwab Corporation and Robinhood Markets, Inc. make money?
The Charles Schwab Corporation and Robinhood Markets, Inc. generate revenue in fundamentally different ways. The Charles Schwab Corporation: Schwab offers $0 online commissions on U. Robinhood Markets, Inc.: Robinhood charges no commission on US stock, ETF and options trades and earns revenue in three buckets.
Which company is valued higher relative to revenue — The Charles Schwab Corporation or Robinhood Markets, Inc.?
On a price-to-sales (P/S) basis, The Charles Schwab Corporation trades at 7.1x P/S and Robinhood Markets, Inc. at 22.6x P/S. Robinhood Markets, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to The Charles Schwab Corporation. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is The Charles Schwab Corporation bigger than Robinhood Markets, Inc.?
By last reported revenue, The Charles Schwab Corporation ($23.9B (FY2025)) is the larger company compared to Robinhood Markets, Inc. ($4.5B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Charles Schwab vs Robinhood Markets overview