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Good morning, everyone, and welcome to Schwab's 2026 Winter Business Update. This is Jeff Edwards, Head of Investor Relations. I'm joined in Westlake today by our President and CEO, Rick Wurster; as well as our CFO, Mike Verdeschi. During our time together this morning, the team will review 2025, a year where the business delivered growth across all fronts and discuss the growing set of opportunities we see to help clients even more in 2026 and beyond. A quick rundown on the housekeeping front. The slides for today's business update will be posted to their usual spot on the IR website at the end of the prepared remarks. Q&A remains one question no follow-ups then please try to limit the nested but boosted all questions. If you have multiple questions, we encourage you to simply hop back into the queue and ask another one if time allows. And as always, the IR team is here to assist with any questions following today's update. And last but not least, the ever-present forward-looking statements page or the artist formerly known as the wall of words, which reminds us that outcomes may differ from expectations. So please keep in touch with our disclosures. And with that out of the way, I'll turn it over to Rick.

Thank you, Jeff, and good morning, everyone. Thanks for joining our winter business update. 2025 was a record year for Schwab. Guided by our Through Clients' Eyes strategy and with a supportive market, engaged clients and strong execution, we delivered growth on all fronts with clients across our solutions and in our financial results. We attracted $519 billion in core net new assets or NNA, a 42% increase over last year. In 2025, clients opened 4.7 million new brokerage accounts, a 13% increase over 2024. Solutions growth, one measure of deepening relationships with clients by helping them conduct more of their financial lives at Schwab reached new records. Managed investing net flows grew 36% over 2024, achieving a new record. Bank lending balances reached an all-time high of $58 billion. This diversified combination of client and solutions growth, supported by our disciplined financial management approach resulted in record financial growth. Total net revenues reached a new record high of $23.9 billion, and we delivered record adjusted earnings of $4.87, up 50% over last year. With strong execution across our strategic focus areas, growth, scale and efficiency, brilliant basics and our people, we continue to innovate to help our clients grow, manage, enjoy, protect and pass on their wealth. This is how we've always approached innovation at Schwab with a focus on helping our clients achieve better financial outcomes. I'll share just a few examples from 2025. We opened 10 new branches and hired hundreds of financial consultants and wealth advisers. Clients with an FC bring in more than 2x the NNA, are more engaged with our wealth solutions and have higher client Promoter Scores. We strengthened our lending, wealth and trading offers. We leveraged artificial intelligence to serve clients more efficiently. In our Advisor Services business, we launched Advisor ProDirect, a subscription service supporting RIAs wherever they are in their journey to separately managed accounts program and nearly doubled the size of our institutional no transaction fee mutual fund platform. We entered a definitive agreement to acquire Forge, which will help us provide clients with multiple ways to access alternatives while democratizing private investing. We also made a strategic investment in Qapita, a complete equity management solution designed to support private companies in the late stages prior to IPO. With Forge and Qapita, we are creating an ecosystem where we can administer private stock plans while providing access to liquidity for private company employees and investors, all while creating a pre-IPO pipeline of future stock plan services clients for Schwab. We took an ownership stake in Wealth.com and began rolling out their estate analysis capability to our specialists, giving us more tools to help clients integrate their estate planning into their investment life. We delivered this -- all of this in a year where our clients achieved record levels of wealth through market ups and downs. As the year came to a close and from where we stand today, market valuations are high, but the economy remains strong. All of this fueled record levels of client engagement. We supported 1.9 billion trades, more than 30 million calls to our service centers and about 2.2 billion digital log-ins, up approximately 18% from 2024. Clients reaching out to our service centers had their calls answered in less than 30 seconds on average as our professionals fielded client questions ranging from whether stocks were overvalued to how to navigate market volatility to inquiries about cryptocurrencies to how to protect their wealth. Millions of investors consumed our educational content. While clients embraced our easy and intuitive digital experiences, they showed us they want more than an app when what's at stake is their financial future. In short, we were there for our clients when, where and how they needed us. You can see this in our third-party recognition and more importantly, in strong and improving client Promoter Scores across retail, adviser services and our workplace business. We ended the year with more than 46 million client accounts and nearly $12 trillion in total client assets, reinforcing our position as an industry leader and ranking #1 among peers by total client assets, RIA custodial assets and daily average trades, which reached a record $7.7 million a day for the year. We are entering 2026 in a leading competitive position and our momentum is strong. I want to spend a few minutes laying out what collectively positions us to continue delivering earnings growth through the cycle. Most importantly, we are taking a holistic view of growth. We have 2 important levers: serving more clients and deepening relationships by serving more of their financial needs. Attracting more clients will always be important. But with nearly $12 trillion in assets and more than 46 million client accounts, doing more for our clients is as important a source of growth as acquiring new clients. We are equally focused on growing NNA and growing our wealth, lending and product areas. This growth is key to our revenue growth and our revenue diversification. There are 2 more critical pieces to the puzzle. First, our sheer scale, combined with efficiency efforts that make it easier for clients to do business with us, keeps our cost to serve clients low. This also allows us to invest in client capabilities that will fuel our growth and fuel experiences that drive more efficiencies. Second, our disciplined financial management approach and capital return underpins it all. Taken together, when we deliver on each of these effectively, we are cycle. I'll spend the next few minutes unpacking growth and scale and efficiency, and Mike will dive into our financials. Serving a growing number of clients and attracting net new assets is our first growth lever. And in 2025, the organic growth rate of core NNA reached 5.1%. In Advisor Services, we are attracting net new assets from new and existing advisers of all sizes as we help them serve their clients grow their businesses and succeed in an increasingly competitive industry. No matter an RIA size, we serve them all in a way no competitor can. 1 million new retail households turned to Schwab in 2025. These new households represent a broad and diverse client base. Our average retail client is now in their 40s, and our average new-to-firm retail client is in their 30s. Gen

Thank you, Rick, and good morning, everyone. During today's call, I will discuss how we converted our strong business momentum into record financial results for 2025. I'll highlight some of the steps we took to further enhance our capabilities to meet our clients' evolving needs through a range of environments and finally, outline our financial scenario for 2026. Starting with the fourth quarter results. Total revenue was up 19% year-over-year to a record $6.3 billion. Net interest revenue increased 25% versus the prior year as we further reduced wholesale funding at the bank to the lower end of our BAU range and clients increased their utilization of our margin and bank loan offerings. Robust equity markets plus client demand for our wealth and asset management solutions helped asset management and administration fees grow by 15% versus 4Q '24. Daily average trades of $8.3 million, the second highest quarter on record, drove a 22% year-over-year increase in trading revenue. Now looking at expenses. Adjusted expenses for the fourth quarter were up 6% versus 4Q '24 bringing full year adjusted expense growth to 6% as we supported record levels of investor engagement across our suite of trading, wealth, banking and asset management solutions. While we had anticipated some moderation in client trading activity towards the back end of the year, we instead saw an acceleration in activity, which contributed to higher volume-related costs, inclusive of performance-based compensation. This incremental expense was more than offset by the significant pickup in revenues and therefore, supported stronger earnings. Putting everything together, we recorded an adjusted pretax profit margin of just over 52% in the fourth quarter and grew adjusted earnings per share by 38% year-over-year to a record $1.39. This strong finish to the year helped us print record financial results for 2025, including total revenue of $23.9 billion, up 22% versus 2024, adjusted pretax profit margin expansion of nearly 800 basis points to 50% and adjusted earnings per share reaching a record $4.87, representing year-over-year earnings growth of 50% and putting earnings above the upper end of the updated scenario range we shared during the fall business update in October. Moving on to our balance sheet. We continue to support our clients as their needs evolve. Demand for our lending solutions increased during the quarter, led by [ Powell ], total bank loan balances grew to $58 billion, representing a year-over-year increase of 28%. Client margin loan balances exceeded $112 billion at quarter end, up 34% versus year-end 2024, reflecting equity market strength and investor engagement. On the cash front, we observed typical fourth quarter seasonality, including over $26 billion of cash inflows in December to bring the quarter end balance to $453.7 billion, which represents a sequential quarter increase of $28.1 billion or approximately 7%. This building cash, along with the use of investment portfolio proceeds and balances transferred from the BDA allowed us to further reduce high-cost funding at the bank to $5 billion, the lower end of our $5 billion to $15 billion business as usual range. We'd expect normal cash behavior to continue in 2026 with cash levels generally growing in proportion with the franchise, with history suggesting we could pick up some modest amounts of incremental cash if interest rates move lower from current levels. We also expect typical intra-year cash seasonality trends to persist in 2026, including clients redeploying the fourth quarter cash build early in the first quarter as well as seasonal tax payments during 2Q. Capital levels remain strong with our adjusted Tier 1 leverage ratio finishing the year just above the upper bound of our 6.75% to 7% objective. At 7.1%, our adjusted ratio also reflects the repurchase of common shares for $2.7 billion during the fourth quarter, bringing year-to-date total capital return across all forms to $11.8 billion. As we move into the new year, our capital management framework remains unchanged. We will continue to prioritize capital levels that support long-term business growth and the evolving needs of our clients across a range of environments. Beyond that, we would seek to opportunistically return excess capital to stockholders in multiple forms. While the absolute level of capital return may vary over time, we believe capital return will continue to be a meaningful part of our through-the-cycle financial growth story. Transitioning to the setup for 2026. As is the case in any year, our financial outcomes will be influenced by a range of factors. Beginning with select macroeconomic factors, our 2026 financial scenario assumes interest rates follow the current forward curve expectations, which call for 225 basis point cuts to the Fed's target rate, bringing the funds rate down to 3.25% by the end of 2026 and 6.5% equity market returns, which is consistent with the long-term average. On the business side, we expect to sustain our momentum from 2025 into the new year with strong new account formation and full year organic asset growth of around 5%. At the same time, we will continue to deepen relationships with the 46 million total accounts and nearly $12 trillion of client assets already on Schwab's platform today. Increased investor utilization of our expanding set of solutions across trading, wealth, banking and more helps to further diversify our revenue as well as support franchise growth over time as clients with deeper relationships tend to consolidate more of their assets at Schwab. Specifically on trading activity, given the record volumes we supported last year, our 2026 scenario does allow for a slight pullback in volumes to roughly 7.4 million daily average trades for the full year. This level aligns more closely with volumes observed in early 2025. Under this scenario, we would expect total revenue growth of 9.5% to 10.5% in 2026. Full year net interest margin expands to a range of 2.85% to 2.95% with average 4Q 2026 NIM expected to finish above 2.9% despite assuming the Fed funds rate comes down by another 50 basis points. Full year 2026 interest-earning assets are expected to expand modestly year-over-year following the paydown of supplemental borrowings at the bank. From an expense planning perspective, we initially anchored to mid-single-digit year-over-year growth and adjust for a range of factors, including the macroeconomic backdrop, client engagement levels, our strategic initiatives and, of course, the revenue outlook. Therefore, within this financial scenario for 2026, we anticipate annual expense growth to range from 5.5% to 6.5%. Our spending plan aligns to our key strategic initiatives and aims to help us continue delivering financial growth through the cycle by driving new client growth and deepening relationships with individual investors and RIAs by further expanding our leading suite of offerings to serve their evolving needs, bolstering our best-in-class service experience while also harnessing incremental scale and efficiency. Select examples for 2026 include investing in branches, adding more financial consultants and wealth advisers, advertising and marketing, expanding our digital asset offering to include spot crypto trading and incorporating more AI across the firm, particularly within our service and technology organizations. So putting all the pieces together, the combination of strong top line growth and balanced expense management implies meaningful operating leverage within this scenario with further pretax margin expansion into the low 50s. If you follow the math down to the bottom line, this full year scenario implies potential adjusted earnings of around the $5.70 to $5.80 range, which would represent year-over-year earnings growth in the upper teens. As always, while rates, client activity and other variables may differ from what we have outlined within today's scenario, we are confident in our ability to drive strong financial outcomes across a range of environments. Similar to last year, we have provided a set of static revenue sensitivities based on year-end 2025 levels. These high-level sensitivities are intended to serve as a complement to the scenario we just walked through, helping you adjust estimates and shape your own perspective around 2026. While most of you are quite familiar with this page, given the focus on the potential path of interest rates, it may be worth spending a moment on the net interest revenue sensitivity. Throughout 2025, we took a number of steps to further enhance our flexibility and financial management capabilities, including standing up a hedge program that helped reduce our interest rate sensitivity by about 1/3. We have continued to build out these capabilities in the early days of 2026 by putting in place a modest amount of income hedges against our margin loan book. Therefore, if you were to assume the Fed funds rate moves much lower than the current market expectations, perhaps approaching the 2% level, we would still anticipate delivering year-over-year earnings growth of at least 10%, probably a bit better, holding all else equal. Of course, there would be other moving pieces to consider in that environment. And although interest rates are an important macro factor, the combination of our enhanced balance sheet management and inherent offsets within our model keeps us well positioned for financial growth across a range of environments. So in closing, we are entering 2026 with strong momentum following a record 2025, where we delivered growth on all fronts. Yet, as Rick outlined earlier on the call, we have tremendous opportunities still in front of us across nearly all areas of our business. Schwab's combination of an increasingly diverse revenue mix, industry-leading scale, enhanced financial capabilities to manage across a range of environments as well as capital return position us to deliver meaningful earnings growth through the cycle. And with that, Jeff, let's turn to Q&A.

Operator, can you please remind everyone how they can ask a question today?

[Operator Instructions] Our first question will come from Devin Ryan with Citizens Bank.

Question just on the balance sheet. Obviously, great work on the supplemental funding normalization there. With that largely complete and where capital ratios are right now, how should we think about the next phase of asset remixing? And as we look maybe even beyond kind of the pledged asset growth and margin lending, what should we be thinking about for the securities portfolio potentially growing again? How do we think about the timing size, maybe duration of that as well?

Thank you for the question. So yes, 2025, we certainly saw the aggressive paydown of supplemental borrowings. And from here, I think about the story more on the asset side, meaning we saw terrific lending momentum in 2025. We're looking for strong lending opportunities in 2026 as well. And that would be with our bank product as well as in margin lending. So I think the growth of lending will continue. In terms of securities, now that we paid down those supplemental borrowings, as those proceeds become available, yes, we do have the opportunity not just to, again, support the loan growth, but also reinvest in the securities portfolio. A couple of thoughts on that. As I've talked about the securities portfolio before, serves as 2 purposes. One is the store of liquidity. So with that in mind, we're going to maintain highly liquid product. The majority of that allocation would go to U.S. treasuries, I would say, short dated and then perhaps some allocation to high-quality asset-backed securities, but the main driver would be investing in U.S. treasuries. And we talked about that duration range being the overall portfolio in that 2- to 4-year range. So the expectation would be that those treasury investments would be on the shorter end of the curve. So we feel good about how the balance sheet has evolved. We're in a very good position to continue to support our client needs. And certainly, that activity will help us support strong earnings growth going forward.

Our next question comes from Ken Worthington with JPMorgan.

I'd love an update on the alternatives platform. How is engagement in the new platform? And if possible, I'd love to get a sense of assets. And the initiative is very young, but have there been any indications or do you anticipate that the alt program pricing is disruptive enough to attract either new customers or assets to Schwab?

Ken, thanks for the question. We are seeing the Alts program grow and succeed and most importantly, delight our clients and in particular, our higher net worth clients. And our goal has been to be the premier destination for all clients, including those higher net worth clients. And over the past few years, we've rolled out new product capabilities for them, including alternatives. We rolled out back lost harvesting capabilities for them to manage their capital gains. We've rolled out concentrated position management for them. We've done more to help them integrate their financial life. We've gone out and hired a bunch of wealth consultants who are experienced in helping the higher net worth clients navigate their financial life. All of those things are leading to a more robust ultra-high net worth offer than we've ever had, and alternatives has proven to be an important part of that. We see a real backlog for wanting to speak with our alternative investment consultants, meaning there's been more interest than we would have expected. We're dealing with that. But that's a good situation to be in. There's a lot of interest, and we are seeing clients engage in it. We're not putting out any asset numbers yet. I think it's so early in the process of rolling all this out. But I think ultimately, this will be the place for the ultra-high net worth investor and the place for them to get alternatives because we will have a great platform of leading alternatives managers. We will supplement that with a fund-based structure to access alternatives in a passive way or privates in a passive way. And then for those clients that want to buy an individual private company through our Forge acquisition, we'll be able to allow them to do that. And we want to be the industry -- the place in the industry where the private companies come because they know they can get liquidity, and we want to be the place where clients come. And I do think over time, that will help our net new asset growth because I do think we'll attract clients to Schwab, and we'll get more of them to bring all of their assets to us, whereas in the past, some of our higher net worth clients might go elsewhere for their alternatives. Now they're finding it at Schwab. So I think it will help our net new asset formation. So thanks for the question, Ken.

Our next question comes from Brennan Hawken with BMO Capital Markets.

I'd like to maybe hear a little bit of color and context around the growth recently. And could you maybe speak to the differences that you've seen in trends between Advisor Services and Investor Services in recent quarters and your expectation? And then maybe how these recent investments in the high net worth offering might have an impact on the Investor Services side?

Thanks for the question. We've seen our growth accelerate across the board. Our net new assets of $519 billion last year was a 42% increase year-over-year. So we're -- we were pleased with that rate of growth. If you break it down, we grew about 33-ish percent in retail and a little more than the 42% in our adviser business. So both are growing really strongly. What's so exciting to me about our retail growth is that we are winning with every demographic and every type of investor. We're winning the young investor. Our average age of our client has fallen by about 10 years in the last decade and is now in the 40s. 1/3 of our new-to-firm clients last year were Gen

Our next question comes from Dan Fannon with Jefferies.

I just wanted to ask about your lending offerings, clearly, a focus in an area of growth. what do you see as a reasonable level of penetration of your existing clients in the next couple of years for these offerings?

I think there's still tremendous upside on our lending business, both with existing products and one we may consider in the future. As I shared earlier, our higher net worth clients, there's only 9% penetration of our pledged asset line capability. And I think that number could be far higher as it's such a convenient, easy way to borrow. And if clients have assets at Schwab, the rates they can access are, I think, best or among the best in the industry and yet for us, are still an attractive spread to securities. So it's a win on all fronts. I think on the adviser front, when I go around and I speak to hundreds of advisers every single year to hear what are we doing well, what can we improve? The #1 thing I often hear about is doing more for them in banking and lending. And I think the pledged asset line has been a wonderful start, and you see the penetration rate up to 23%. I think that number will go higher. And at the same time, I think in the years to come, we will find other ways to bank and lend to the clients of our RIAs. If you put yourself in a position of an RIA, they're fiduciary. They're bringing that independence and to the client relationship and clients love that aspect of it. They do, from time to time, compete against the wealth divisions of wirehouses. And that independence means a lot to clients and is why they have grown their share. At the same time, I think the wirehouses are doing a better job of leveraging their banking capabilities. And the RIAs want to be able to match that, and we're the natural provider of that. So while I think we are doing extremely well, growing our lending today, and you see it with the 85% growth in originations in the last year of a pledged asset line, I think we're just getting started with our banking journey, and I couldn't be more excited about it.

Our next question comes from Alex Blostein with Goldman Sachs.

I was hoping we could touch on your capital return assumptions. into 2026, but also beyond. When you're thinking about sort of the $570 million to $580 million in earnings that you suggested in your scenarios of '26, maybe just level set us what you assume for buybacks then? And again, how are you thinking about longer-term trajectory?

Thank you for the question. So that -- what we provided in that scenario and the implied math does not include buybacks. But in terms of our thoughts on capital, the framework remains unchanged, where capital is going to be there to support the growth of the franchise, the needs of the clients. And beyond that, the capital framework that we have in place and will continue as we think across the capital forms and the way in which we could return it for dividends, we still think in terms of a 20% to 30% payout of GAAP earnings. We'll look at our preferred securities and -- over the course of this year, we'll look at a couple of securities in terms of perhaps might we wish to redeem those or leave those outstanding or perhaps replace. And so that will be a function of how we want the capital stack to look and the inclusion of those preferred securities. And then lastly, with buybacks, again, we'll talk about things like where we are in the ratio and of course, the growth of the overall franchise and making sure capital will be there to support the growth of the franchise. But again, with the strong earnings momentum that we've seen, we feel good about returning capital in multiple forms over the course of '26.

Our next question comes from Steven Chubak with Wolfe Research.

So I wanted to ask on some of the tax advantaged long/short strategies. It's an area where you've seen tremendous growth. The balances, they're NII accretive, but they do come in at lower spreads. And just wanted to better understand how much further you can deepen penetration rates across the RIA channel given such strong demand and the types of returns you're generating on the balances relative to [ CAL ] and other potential balance sheet growth opportunities.

Steven, thank you for the question. Yes, this is a product that our advisers are using this strategy with high net worth clients as a way to drive enhanced returns through leverage. And so it's a pairing of a long with some shorts. It's been a good tactical solution for those clients. And you're right, this is something that there's a net balance sheet treatment from it. So from our perspective, we're providing a service. It doesn't gross up that balance sheet, if you will. And so there is a fee associated with that. So I think it is a win-win. We're supporting clients and their need to manage their portfolio positions. There's some tax optimization that they can utilize with this portfolio. It helps them with concentration as well. But this is something that we still see is likely to grow in 2026. It is fee-based. Again, it's one of those revenue diversification opportunities that we have. And so again, it's a win-win from our perspective.

I might just add a couple of things, Mike, that really well said. A couple of things. As we broaden this out to the retail side as well, we'll see a couple of things. Number one, we will have the ability to offer this on a proprietary basis. And our Schwab personalized indexing capability has been something that our clients have absolutely loved and that has added tremendous client value. As we go to a long short, again, I think there's a win-win opportunity here related to that. We're also seeing the opportunity to have broader discussions with our clients and to have forward wealth relationships when we see clients with large concentrated positions, when we see them with big tax gains that they want to manage over time. And those conversations and those situations are part of what is powering our record growth in our wealth business. We had nearly $70 billion of flows into our managed investing solutions last year. That was up 36% or so over the prior year. So all of these capabilities need to be viewed within the lens of a much broader relationship. It is a huge win for a client because our highest client Promoter Scores at the firm are those ones where we have a broader relationship. And the economics for us are compelling because we're growing our fee-based revenue in our wealth business. So we love these conversations because they help clients and they're part of our strategy of continuing to grow and diversify how we generate our economics.

Our next question comes from Brian Bedell with Deutsche Bank.

Maybe, Rick, can you just comment on your views on prediction markets? I know you've talked about this in the press and interviews. Clearly, sports betting and prediction markets on mentioned and culture is clearly something you're not interested in. But if the contracts were to develop in more broadly in fundamental investing and other economic types of contracts, is that something you would be interested in launching on the platform? And how would you evaluate that? And what are you hearing from trading clients on that?

Thanks for the question, Brian. I'd love to expand on this one. A couple of principles that will drive my response. Number one is we always see through clients' eyes, and we want to deliver what's of importance to them and what they want and need to be successful. Number two, our mission is to champion our clients' financial goals with passion and integrity and help them live their best financial life. And those 2 things guide the way we're thinking about prediction markets. So first, as we think about prediction markets, the ones that are related to financial aspects like what's going to happen to employment, what's going to happen to inflation or whether at some point, it develops a market where you can take a position on the stock going up or down, all those kinds of things. Those are related to building an investment portfolio. And certainly, if there is client demand, we are going to make them available. As we work with our -- particularly our active traders to identify the things that are of most importance to them, it's not high on the list today. We're just not seeing a lot of client interest from our clients for those kinds of prediction markets. And I think that's true more broadly in the industry where 95% of the volume that we observe is all sports gambling and has nothing to do with these so-called prediction markets. So as the things that we're hearing from our active traders is keep pushing on the mobile app, keep giving us more research, keep giving us different futures and options capabilities, but we're not hearing a lot about prediction markets. That said, we're looking at this. And if it becomes of client interest, we will have prediction markets. We're not bearing our nose in the sand on this. We don't have a strong stance against prediction markets. I have nothing against prediction markets that are related to a client's portfolio. And as there's client interest or industry interest, we will absolutely be there should there be interest. Expanding into the sports gambling aspects of things, the second principle I mentioned of our focus being on doing everything we can to help our clients grow, protect, manage their wealth, sports gambling is contradictory to that. And so our view has been let the sports betting houses like DraftKings and Robinhood and FanDuel, let them take that. And we know there's a lot of data on this and less than 5% of clients that put money into these gambling houses or these gambling apps leave with more money than they put in. And I contrast that to the all-time record high wealth that our clients hold. It's just a fundamental different -- fundamentally different mission. And so that's our thoughts. We're open to prediction markets. Should there be client and industry interest. We're not interested in the sports gambling. We'll leave that to the FanDuels and Robinhoods, and we'll stay away from that.

Our next question comes from Bill Katz with TD Cowen.

Just want to unpack to your guidance. Number one, you mentioned that you'd be right around 5% organic growth for 2026. That would be a bit of a deceleration just factually from the 5.1% you put up to '25. And this was supposed to be a transition year. So you beat your goal for this year despite being a transition year. So maybe you can unpack why only 5%? Are you still thinking 5% to 7% is the right long-term goal? And then separately, just coming back to your commentary on the buyback. How should we think about your adjusted Tier 1 leverage ratio? Is 6.75% to 7% still the right way to think about that? Otherwise, if you don't buy back a ton of stock, that ratio is going to ramp pretty dramatically given your guidance?

I'll start with the NNA -- NNA numbers that Mike highlighted. And then, Mike, you can take the second part of that question. But on NNA, I still believe 5% or higher is the right long-term expectation. In the near term, we're focused on 5%. I think that's a realistic target. It's important to keep in mind that our total client assets grew by 18% year-over-year. So the target despite being similar to what we delivered last year, keeps going up. In the longer term, as we -- as I mentioned earlier, as we invest in our workplace business, we fully launched crypto, we add more retail relationships. I believe in the right market environment, we that above 5% still remains very much possible. But in the near term, that 5% with the asset growth we've seen from clients, that's the number we're shooting for.

In terms of that second part, 6.75% to 7% for the adjusted Tier 1 ratio, that is still our objective. And keep in mind, obviously, as we see the growth of the franchise, there is a component of that ratio as interest rates move around, it will change the value of the securities portfolio. That change in value impacts the adjusted Tier 1 ratio. So you could find us operating above that from time to time. But there's no change in that operating objective. That is still very much where we intend to be.

Our next question comes from Benjamin Budish with Barclays.

Maybe just a follow-up on Bill's first question there, just on the 5% expectation for the year. Could you give an update on the legacy Ameritrade customer base? I know in the past, you've indicated that, that cohort has been quite a bit or inflowing slower than the legacy Schwab base. So what are you seeing lately there? And maybe unpack that 5% a little bit in terms of Investor Services versus advisory services? Are you expecting any kind of mix shift, any acceleration? Or does that still remain sort of the longer-term expectation?

Thanks for the question. We're seeing Ameritrade behavior right where we'd want to see it, which is it has accelerated meaningfully in terms of net new assets, in terms of engagement with the platform and engagement with our other solutions. They've been between 1/3 and 40% of the flows that are going into our wealth solutions into our lending solutions. So it's just -- it's great to see the transformation of where we've gone with Ameritrade clients. And it's as expected. We expected during the transition that it would be a challenging time period, and it was. We saw Ameritrade clients that -- with net new assets that were slightly negative as a group. And now they've moved meaningfully positive and are very much in line with both what we expect and what we see from Schwab clients. And so we're right where we want to be. It's very encouraging. And again, the outlook on NNA, we're very bullish about our growth. And I think you saw that this year. We continue to be both in the -- particularly as I think longer term, there's a number of areas that we can invest in that are going to be accelerants to our NNA, whether it's our workplace business, our crypto business, our retail relationships, our wealth business. And equally as important to that growth, we're just as focused on spending just as much time on doing more for our clients because with $12 trillion in assets, 46 million client accounts, a huge source of our growth can be doing more for clients. They want that from us. They're happier when we do that, and it diversifies our growth, creates stickier, longer-lasting relationships that ultimately build more wealth for our clients, and that's what we're in the business to do.

Okay. Operator, looking at the clock, I think we have time for one final question.

Our final question comes from Mike Brown with UBS.

So I just wanted to ask about on the margin here. So guide to the low 50s for 2026, great to see that the margin continues to march higher here. How should we think about that longer-term potential? What's the ceiling there? And then specifically on the AI opportunity, can you maybe talk about some of the measurable revenue lift that we could see in terms of conversions, retention, adviser productivity, service triage? And what are kind of the key KPIs we should track here to know how well it's working and then how your key proprietary data gives you an advantage over some of the new entrants in the fintech space?

Mike, thanks for the question. So first on the margin lending growth -- margin growth -- sorry. The way we think about that is we've seen good margin expansion. Again, that is the result of a well-balanced approach to how we're managing our financials. As you've heard Rick and I talk about today, we're doing more for clients. We're seeing good take-up of our broader suite of products. And with that comes good revenue diversification, and that supports the durability of those revenues. Put that alongside a balanced approach to our expense management. We're investing in our strategic priorities. But at the same time, we're investing in efficiency, and that's ensuring that we can maintain a low cost to serve. That also helps to grow strong financials and see that margin expand. From here, we could see greater margin expansion. But again, there is no arbitrary target on that or ceiling on that per se. It is a result of that approach that we take to managing the financials. In AI, we're already seeing efficiencies where we've invested in having our client-facing reps use AI. We've grown client accounts, we've grown assets, and we've been able to moderate the amount of client-facing reps that we've grown. So we are already seeing efficiency. We want to continue to roll out AI, especially in our technology organization and continued in our service areas. I think the key metrics that we'll continue to focus on is that EOCA is that cost per account. I think you'll see that come through and continue to be relevant. We plan to continue to maintain that low cost to serve and continue to drive those costs lower. Thank you for the question.