SC
SCHW
Jun 30, 2025
Quarter ended Jun 30, 2025 · FY2025 Q2

The Charles Schwab Corporation stock research

The Charles Schwab (SCHW) Free Cash Flow — Quarter Ended Jun 30, 2025

Revenue and free cash flow improved compared to both the prior quarter and the same quarter last year. Operating cash flow was lower than the prior quarter but turned positive from a negative level a year ago.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue and free cash flow improved compared to both the prior quarter and the same quarter last year. Operating cash flow was lower than the prior quarter but turned positive from a negative level a year ago.

  • Free cash flow margin was positive and above half of revenue, reflecting a conversion where operating cash flow exceeded capital expenditure. Revenue increased while operating cash flow decreased from the prior quarter, indicating a shift in cash generation efficiency.
  • Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Versus the same quarter last year, all metrics improved significantly, with operating cash flow and free cash flow turning from negative to positive.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$17.2B

Trailing twelve-month free cash flow.

Quarter free cash flow

$3.0B

Free cash flow in the selected fiscal quarter.

Operating cash flow

$3.2B

Cash generated by operations before capital spending.

CapEx

$128.0M

Capital spending and related asset purchases.

FCF margin

52.1%

The share of revenue converted into free cash flow.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2024-09-30$4.8B$19.1B$128.0M$19.0B391.4%
2024-12-31$5.3B-$10.8B$241.0M-$11.1B-207.7%
2025-03-31$5.6B$6.4B$117.0M$6.2B111.5%
2025-06-30$5.9B$3.2B$128.0M$3.0B52.1%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income143.4%Shows whether accounting earnings convert into cash.
CapEx / revenue2.2%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Revenue Growth Supporting Cash Flow

Revenue increased from both the prior quarter and the year-ago quarter, providing a larger base for cash generation. Free cash flow turned positive from a negative level a year ago, and the free cash flow margin improved substantially.

Higher revenue contributed to a positive free cash flow margin, contrasting with the negative margin from a year earlier.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Free cash flow margin was positive and above half of revenue, reflecting a conversion where operating cash flow exceeded capital expenditure. Revenue increased while operating cash flow decreased from the prior quarter, indicating a shift in cash generation efficiency.

Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Versus the same quarter last year, all metrics improved significantly, with operating cash flow and free cash flow turning from negative to positive.

Monitor the trend in operating cash flow relative to revenue, as it declined from the prior quarter despite higher revenue.