Schwab 10-Q Released: Tech Spend Ballooned with a Large, Multi-Year Software License

The Charles Schwab Corporation. (2026, August 7). Form 10-Q: Quarterly report for the period ended June 30, 2026. U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/316709/000031670926000031/schw-20260630.htm

• Capital expenditures reached $792 million in the second quarter of 2026 and $965 million in the first six months, compared with $136 million and $292 million in the same periods of 2025.

• The increase is attributed primarily to a $633 million multi-year software license agreement recognized with a corresponding liability in long-term debt under Accounting Standards Codification 350, Intangibles: Goodwill and Other.

• Full-year 2026 capital expenditures are now expected to run slightly higher than the previously disclosed range of approximately 3% to 5% of total net revenues.

• Occupancy and equipment expense rose 11% to $301 million on higher software subscription costs, while depreciation and amortization declined 8% to $198 million on lower amortization of internally developed software.

• The filing identifies artificial intelligence, digital assets, private company securities, and other alternative investments among the industry and competitive trends affecting the business, while managed investing solutions fees grew 20% and total net revenues rose 21% to $7,072 million.

• Schwab began a phased retail rollout of Schwab Crypto, its spot crypto trading offer, in May 2026, with Paxos Trust Company, NA engaged as sub-custodian and trade execution provider and additional cryptocurrencies and in-kind transfer capabilities planned over time.

• The $636 million acquisition of Forge Global Holdings closed March 2, 2026, incorporating private company and private market investment capabilities into the platform.

Knote: We don't have any details on the mystery vendor behind this large tech contract yet, but at $633M, I would not be surprised it rhymed with Planthropic.