Charles Schwab Corp. (SCHW) 10-K Red Flags
Risk signals extracted deterministically from Charles Schwab Corp.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (15)
- Receivables outpacing revenue: Accounts receivable grew +2.2% YoY vs revenue growth of -9.3%. The +11.5% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Leverage is building — debt rising while equity contracts: Long-term debt grew +83.5% while stockholders equity declined -34.9%. The debt-to-equity ratio is deteriorating, increasing financial risk and interest burden. This may constrain future borrowing capacity.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 5 filing(s).
- Material weakness in internal controls: The term "material weakness" appears in 19 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 3.87x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Endogenous analysis: Revenue grew -9.3% but receivables grew +2.2% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- Endogenous analysis: The combination of explicit "going concern" language in the filing with deteriorating cash flow or rising leverage is a severe warning signal — the company's own auditors have flagged doubt about the ability to continue as a going concern.
- 6 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 1 new risk-language term(s) detected in filing text: Going concern doubt.
- Ongoing high-severity risk language: Material weakness in internal controls.
- Revenue declined **+9.3%** YoY to $18.84B.
- 5-year revenue CAGR **+11.9%**; 10y CAGR +13.4%.
- Receivables outpacing revenue: Accounts receivable grew +2.2% YoY vs revenue growth of -9.3%. The +11.5% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Leverage is building — debt rising while equity contracts: Long-term debt grew +83.5% while stockholders equity declined -34.9%. The debt-to-equity ratio is deteriorating, increasing financial risk and interest burden. This may constrain future borrowing capacity.
Filings & ownership
- Latest annual report (10-K) filed Feb 25, 2026.
- Latest quarterly report (10-Q) filed May 8, 2026.
- 8 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference Charles Schwab Corp.; broad institutional reporting.
- Recent filers include VIMA LLC, ONYX CAPITAL MANAGEMENT LLC, BANKERS TRUST CO /IA/.
- 20 recent 13G passive institutional ownership notices.
Full SCHW analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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