Charles Schwab vs Robinhood
Business model, scale, and a side-by-side Litmus framework score — which model wins, and for whom.
Schwab wins on scale, trust and HNW/RIA assets; Robinhood wins on Gen Z UX, crypto and 24/5 trading.
At a glance
| Metric | Charles Schwab | Robinhood |
|---|---|---|
| Revenue | ~$23.9B (FY2025 actual) | $4.5B (FY2025); $1.07B in Q1 2026 |
| Profit | ~$8.9B (FY2025 net income: $8.852B actual) | $1.9B net income (FY2025); $346M in Q1'26 |
| Active users | 39.1M Active Brokerage Accounts (Q1 2026) | 27.4M funded customers |
| Employees | 33,500 (Q1 2026, up 4% YoY) | ~2,900 (pre-layoff, FY2025 10-K); cut ~10% (~290 roles) in Jun 2026 |
| Founded | 1971 | 2013 |
| HQ | Westlake, TX | Menlo Park, USA |
LLitmus Framework Score
Overall: Charles Schwab 93 · Robinhood 82
Customer Segment
97
88
Value Proposition
96
85
Marketing Channel
92
82
Engagement
89
80
Income Source
98
86
Asset Validation
94
83
Core Operations
90
78
Strategic Alliance
87
75
Expense Validation
93
84
Charles Schwab leads 9 modules, Robinhood leads 0. Overall edge: Charles Schwab.
Head to head
| Dimension | Charles Schwab | Robinhood |
|---|---|---|
| Client assets | $11.77T | A fraction of Schwab |
| Accounts | 39.1M | 27.0M+ (FY25-end) |
| Revenue | $23.9B (FY25 actual) | $4.5B (FY25) |
| Core revenue | Net interest on swept cash (~49%) | PFOF + crypto + net interest |
| Audience | Mass-affluent + RIAs | Gen Z / new investors |
FAQ
Is Charles Schwab or Robinhood a better business?
Schwab wins on scale, trust and HNW/RIA assets; Robinhood wins on Gen Z UX, crypto and 24/5 trading. It depends on what you optimise for — see the module-by-module breakdown above.
What is the difference between Charles Schwab and Robinhood's business model?
Charles Schwab operates in Fintech / Banking (Own your tomorrow), while Robinhood is Fintech (Investing for Everyone). Their revenue, scale and Litmus scores are compared in detail above.
Which is more profitable, Charles Schwab or Robinhood?
Charles Schwab: ~$8.9B (FY2025 net income: $8.852B actual). Robinhood: $1.9B net income (FY2025); $346M in Q1'26.