What does Bread Financial do and what are its main business segments?

What were the key takeaways from Bread Financial's earnings call?

What were the key takeaways from Bread Financial’s earnings call?

What is the revenue and EPS growth rate for Bread Financial year over year?

What guidance did Bread Financial's management provide for the next earnings period?

Did Bread Financial beat or miss consensus estimates last quarter?

What is Bread Financial's gross profit margin?

What is Bread Financial's latest dividend and current dividend yield?

- **2025 Financial Milestones**: 10 new brand signings, 7 renewals, $350M capital return. 2026 loan growth guidance: low single digits.
- **Credit Quality Improvements**: 7.4% net loss rate (down 60bps YoY), 11.2% reserve rate (down 70bps YoY). 2025 AI-driven underwriting cost savings: $50M+.
- **AI Expansion**: 200+ ML models, 1M+ hours saved via automation. 2026 BNPL loans growth: 12% YoY.
- **Regulatory Compliance**: 13.0% CET1 ratio, 26.4% tangible common equity.


**【Management Opening Remarks】**
- Ralph Andretta highlighted 2025 achievements, including 10 new brand signings (e.g., Bed Bath & Beyond, Caesars Entertainment) and 7 major renewals. The company returned $350M to shareholders through $310M share repurchases and a 10% dividend increase.
- Credit metrics improved with a 7.4% net loss rate (down 60bps YoY) and 11.2% reserve rate (down 70bps YoY). The company maintained a 13.0% CET1 ratio and 26.4% tangible common equity.

**【CFO Financial Commentary】**
- GAAP net income: $420M; Non-GAAP EPS: $1.08 (exceeding expectations). Operating expenses declined 5% YoY due to cost control initiatives. Debt refinancing reduced interest expense by $40M.
- Direct-to-consumer deposits grew to 48% of total funding; buy now, pay later (BNPL) loans increased 12% YoY. Credit card penetration rate reached 66%.

**【Q&A Highlights】**
- **Loan Growth & Credit Quality**: 2026 loan growth expected in low single digits; 2025 reserve rate improvement driven by AI-driven underwriting. 2026 NIM outlook: stable to +20bps; 2025 tax refund season credit sales guidance: low single digits.
- **AI Implementation**: 200+ machine learning models deployed; 1M+ hours saved via automation. 2025 AI R&D spend: $150M; 2026 AI-driven cost savings: $50M+.
- **Capital Allocation**: $240M remaining on $310M share repurchase authorization; 2026 CET1 target: 12.5%-13.5%.


Bread Financial Holdings, Inc. (BFH) Q4 2025 Earnings Call Transcript

- **Revenue Growth & Shareholder Returns**: 5% YoY revenue growth to $6.8B, $200M share buyback authorization, and 10% dividend hike.
- **Credit Health & AI Efficiency**: 72% of new accounts at prime+, 200+ AI models driving 1%+ operating leverage, and 58% of cardholders at 660+ FICO scores.
- **Capital Strength**: CET1 ratio at 14.0%, up 70bps YoY, with $340M available for repurchases and 13-14% CET1 target range.
- **Macroeconomic Resilience**: Delinquency rate down 30bps QoQ, reserve rate up 20bps YoY, and 3.4% wage growth vs. 2.9% inflation.

**【CEO Summary Section】**
- Reported third-quarter revenue of $6.8 billion, up 5% year-over-year, driven by new brand partnerships and back-to-school spending.
- Emphasized disciplined underwriting with 72% of new accounts at prime or above, and a 10% increase in the quarterly dividend to $0.23 per share.
- Announced a $200 million share repurchase program, bringing total available repurchases to $340 million.
- Highlighted AI investments in operational efficiency, with 200+ machine learning models and 100+ processes automated via robotic process automation.

**【CFO Financial Commentary】**
- GAAP net income of $188 million, with adjusted non-GAAP EPS of $1.08 exceeding expectations.
- Total non-interest expenses decreased 1% year-over-year to $971 million, driven by cost control and operational excellence.
- Net loss rate of 7.4% remained stable, within the guided range of 7.8% to 7.9% for the full year.
- CET1 ratio improved to 14.0%, up 70 basis points year-over-year, reflecting capital optimization and risk management.
- Billed late fees declined 1% due to lower delinquencies, partially offsetting higher paper statement fees.

**【Q&A Key Highlights】**
- Credit metrics showed sequential improvement: delinquency rate down 30 basis points, reserve rate up 20 basis points year-over-year.
- Executives emphasized cautious optimism on consumer resilience, with 58% of cardholders now at 660+ FICO scores.
- Discussed AI's role in accelerating efficiency, with a focus on fast-following regulatory-compliant use cases.
- Highlighted home vertical growth, with 3 new brand partnerships announced, and 47% of deposits coming from direct-to-consumer channels.
- Warned of ongoing macroeconomic risks, including inflation and consumer sentiment, but noted wage growth outpacing inflation (3.4% vs. 2.9%).

Bread Financial Holdings, Inc. (BFH) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: $929M revenue (-1% YoY) driven by co-brand expansion and lower gas prices.
- **Credit Improvement**: Net loss rate 7.9% (down 70bps YoY), with 2025 guidance of 7.8-7.9%.
- **Capital Strength**: CET1 ratio 13.0% (target 13-14%), $8.1B direct deposits (45% of funding).
- **Strategic Growth**: Launched crypto.com co-brand, renewed Caesars partnership, and 10 largest programs secured to 2028.
- **Risk Management**: Delinquency rate 5.7% (down 30bps YoY), reserve rate 11.9% (down 30bps YoY).

**【CEO Summary Section】**
- Reported adjusted net income of $149 million and adjusted EPS of $3.15 (excluding $10M post-tax debt repurchase impact). 
- Credit sales grew 4% YoY, driven by co-brand and proprietary products (50% of total sales) and lower gas prices boosting prime/near-prime spending.
- Net loss rate improved to 7.9% (down 70bps YoY), with updated full-year guidance of 7.8-7.9%.
- Direct-to-consumer deposits grew 12% YoY to $8.1B, and completed $150M share repurchase program.
- Launched crypto.com co-brand credit card and renewed Caesars Entertainment partnership through 2028.

**【CFO Financial Commentary】**
- Revenue: $929M (-1% YoY) due to lower finance charges, offset by lower interest expense.
- Expenses: Total noninterest expenses up $12M YoY ($13M debt repurchase cost), but flat on adjusted basis.
- Net interest margin: 17.7% (down 30bps YoY) due to mix shift to lower-yield co-brand cards.
- Credit metrics: Delinquency rate 5.7% (down 30bps YoY), reserve rate 11.9% (down 30bps YoY).
- Capital: CET1 ratio 13.0% (up 100bps QoQ), targeting 13-14% medium-term.

**【Q&A Highlights】**
- **Consumer Trends**: July credit sales momentum continues, with 4% Q2 growth driven by co-brands and prime customers. July net loss rate expected to match June's 7.8%.
- **Capital Allocation**: $150M senior note tender offer announced; no immediate buyback plans beyond $194M share repurchase. May introduce preferreds in 2026.
- **Top Line Growth**: 2025 revenue flat vs 2024 due to rate cuts, but pricing changes and lower gross losses provide tailwinds.
- **Merchant Strategy**: Top 10 partners secured through 2028; focus on BNPL, crypto integration, and direct-to-consumer engagement.
- **Risk Management**: Maintaining cautious underwriting despite improving trends; 2025 reserve rate expected to remain stable before seasonal decline.


Bread Financial (BFH)-24 Jul 25-2025 Q2 Earnings call transcript

- **Strong Financial Performance**: Q1 net income $138M, EPS $2.78, driven by resilient business model and capital optimization.
- **Capital Flexibility**: $400M subordinated notes issuance and $150M share buyback enhance liquidity, CET1 ratio 12.0%.
- **Growth Drivers**: Direct deposits up 13% YoY to $7.9B, credit sales +1% YoY, new partnerships with Crypto.com and AAA.
- **Credit Resilience**: Delinquency rate 5.9% (down 30bps YoY), net loss rate 8.2% stable, improving roll rates.
- **Macro Risks**: Elevated consumer uncertainty, potential tariff inflation headwinds, cautious loan growth outlook.
- **Margin Outlook**: NIM 18.1% (sequential up), targeting slight full-year expansion despite rate cuts and product mix shifts.


**【CEO Summary Section】**
- Reported net income of $138 million and EPS of $2.78, reflecting resilient business model and strategic actions.
- Completed $400 million subordinated note offering and $150 million share repurchase program, enhancing capital flexibility.
- Direct-to-consumer deposits grew to $7.9 billion (13% YoY), with credit sales up 1% driven by general-purpose spending.
- Expanded partnerships with Crypto.com and AAA, diversifying industry verticals and product offerings.
- Focused on disciplined credit management, prudent underwriting, and operational excellence to navigate macroeconomic challenges.

**【CFO Financial Commentary】**
- Credit sales $6.1 billion (1% YoY), average loans $18.2 billion (-2% YoY) due to macroeconomic pressures.
- Revenue $970 million (-2% YoY), with noninterest expenses down 1% through operational efficiency.
- Net interest margin 18.1% (sequential improvement), impacted by lower prime rates and product mix shift.
- Completed $400M subordinated notes offering, improving total risk-based capital ratio by 200bps.
- Share repurchases of 3.2M shares at 5% below tangible book value, demonstrating confidence in intrinsic value.
- 2025 outlook: loans flat to down, revenue flat to up, net loss rate 8.0%-8.2%, effective tax rate 25%-26%.

**【Q&A Highlights】**
- **Credit Trends**: Delinquency rate 5.9% (down 30bps YoY), net loss rate 8.2% (stable QoQ). Multiyear credit tightening actions improving roll rates.
- **Macro Risks**: Elevated consumer confidence uncertainty, potential tariff-driven inflation impacting spending patterns.
- **Capital Allocation**: Prioritized share buybacks (below tangible book) and capital strength, CET1 ratio 12.0%.
- **Regulatory Impact**: Vacated CFPB late fee rule benefits industry, no immediate regulatory changes expected.
- **NIM Outlook**: Slight full-year expansion despite headwinds from rate cuts and product mix shifts.

**【Operational Wins】**
- Expanded deposit base to 43% of funding (vs. 36% YoY), reducing reliance on wholesale funding.
- Total loss absorption capacity 25.3% of loans, up 40bps YoY, providing margin of safety.
- 97% program renewal rate, winning 12 new programs including co-brand, private label, and installment lending.


Bread Financial (BFH)-24 Apr 25-2025 Q1 Earnings call transcript

- **Resilient Growth**: 85% of loans secured through 2026, with 9/10 top programs secured until 2028, ensuring 2025 stability.
- **Credit Strength**: Delinquency rate improved to 5.9% in Q4 2024, with net loss rate stable at 8.0%.
- **Balance Sheet**: 50% debt reduction over 3 years, CET1 ratio at 12.4%, and 19% annual growth in tangible book value.
- **NIM Outlook**: 2025 NIM expected to rise modestly as CFPB late fee mitigation offsets Fed rate cuts.
- **Capital Discipline**: CET1 target of 14% prioritized, with buybacks dependent on macro conditions.


**【CEO Summary Section】**
- **Resilient Growth Amid Macro Challenges**: Despite prolonged inflation and regulatory uncertainty, the company achieved 85% of loans secured through 2026 and 9 out of 10 top programs secured until 2028, ensuring a solid 2025 run rate.
- **Credit Risk Management**: Proactive credit tightening maintained stable delinquency rates, with a 50-basis-point year-over-year improvement to 5.9% in Q4 2024.
- **Balance Sheet Strength**: Reduced parent-level debt by 50% over 3 years, achieving a double leverage ratio of 105%, and improved tangible book value by 19% annually.
- **Operational Excellence**: Delivered positive operating leverage with 7% year-over-year growth in tangible book value and a 20-basis-point increase in the common equity Tier 1 capital ratio to 12.4%.

**【CFO Financial Commentary】**
- **Q4 2024 Financial Highlights**: Adjusted income from continuing operations of $21 million and adjusted diluted EPS of $0.41, excluding $13 million post-tax impact from convertible note repurchases.
- **Revenue Trends**: Credit sales grew 1% YoY in Q4 2024, driven by holiday sales and new partners, but full-year revenue decreased 11% due to lower finance charges and late fees.
- **Net Interest Margin (NIM)**: Q4 2024 NIM of 17.8% reflected pressure from Fed rate cuts and a shift to lower-yield co-brand and proprietary products, with expectations for a modest NIM increase in 2025 due to CFPB late fee mitigation.
- **Credit Performance**: Net loss rate of 8.0% in Q4 2024, stable YoY, with delinquency rates improving to 5.9% as credit quality stabilized.

**【Q&A Key Takeaways】**
- **NIM Path and Mitigation**: CFPB late fee rule mitigation actions (e.g., APR increases) are phased in, with 95% of brand partners aligned on contractual commitments. NIM is expected to improve in 2025 as mitigation effects materialize, offsetting Fed rate cuts and product mix shifts.
- **Loan Growth Drivers**: Green shoots in specialty apparel, T&E, and Gen Z/millennial spending suggest cautious optimism for 2025 loan growth, driven by new partnerships and maturing pipelines.
- **Capital Allocation**: CET1 ratio target of 14% remains a priority, with buybacks contingent on hitting capital thresholds and macroeconomic stability.
- **Credit Outlook**: Delinquency trends and tax refund usage (37% plan to pay down debt) suggest potential credit improvement, but 2025 net loss rate guidance of 8.0%-8.2% reflects ongoing macroeconomic risks.


Actual																0.5982	1.4836	2.7519	2.6402	5.0092	4.7779	4.11	1.21	4.21	0.25	2.69	-2.68	9.08	1.27	3.46	0.9	2.73	2.66	1.84	0.41	2.86	3.14	4.02	2.07
Forecast																2.1684	0.8618	1.7959	1.92	2.5119	2.9357	2.8256	1.8106	4.3179	2.209	2.5199	-2.9384	7.0017	0.0633	2.3279	-0.6748	2.9836	1.6548	1.9404	0.2517	2.2272	1.9585	2.1127	0.3642
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-72.41%	+72.15%	+53.23%	+37.51%	+99.42%	+62.75%	+45.46%	-33.17%	-2.50%	-88.68%	+6.75%	+8.79%	+29.68%	+1906.32%	+48.63%	+233.37%	-8.50%	+60.74%	-5.17%	+62.89%	+28.41%	+60.33%	+90.28%	+468.37%

Actual	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	1.38B	979.30M	1.05B	1.11B	1.08B	1.01B	1.10B	855.00M	921.00M	893.00M	979.00M	1.03B	1.29B	952.00M	1.03B	1.02B	991.00M	939.00M	983.00M	926.00M	970.00M	929.00M	971.00M	975.00M
Forecast	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	1.28B	1.16B	1.01B	1.12B	1.06B	1.05B	1.09B	1.11B	907.90M	901.65M	968.53M	1.00B	1.06B	965.81M	994.98M	983.41M	998.96M	922.01M	981.26M	959.37M	955.37M	936.18M	968.09M	953.34M
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+7.91%	-15.35%	+4.07%	-1.23%	+2.14%	-3.82%	+1.10%	-22.68%	+1.44%	-0.96%	+1.08%	+3.14%	+22.16%	-1.43%	+3.62%	+3.42%	-0.80%	+1.84%	+0.18%	-3.48%	+1.53%	-0.77%	+0.30%	+2.27%

BFH

BFH fundamentals

BFH Q4 2025 Earnings

Earnings Call

You can ask Aime

BFH

BFH fundamentals

BFH Q4 2025 Earnings

Earnings Call

BFH Earnings Call Summary for Q4/20258:30 AM on Jan 29, 2026

BFH Earnings Call Summary for Q3/20258:30 AM on Oct 23, 2025

BFH Earnings Call Summary for Q2/20258:30 AM on Jul 24, 2025

BFH Earnings Call Summary for Q1/20258:30 AM on Apr 24, 2025

BFH Earnings Call Summary for Q4/20248:30 AM on Jan 30, 2025

You can ask Aime