Bread Financial (NYSE:BFH) Announces Quarterly Earnings Results, Beats Expectations By $1.81 EPS

Bread Financial (NYSE:BFH) released its earnings results on Thursday. The company reported $2.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.26 by $1.81, FiscalAI reports. The firm had revenue of $975.00 million for the quarter, compared to analysts’ expectations of $954.74 million. Bread Financial had a return on equity of 15.97% and a net margin of 10.08%.During the same quarter in the previous year, the business posted $0.41 earnings per share.

Here are the key takeaways from Bread Financial’s conference call:

• Bread reported strong 2025 execution with multiple new brand signings (including Bed Bath & Beyond, Furniture First, Raymour & Flanigan and Crypto.com), a growing co?brand mix that was 52% of Q4 credit sales, and continued direct?to?consumer deposit growth (up 11% YoY, now ~48% of funding).
• Credit metrics meaningfully improved — full?year net loss rate was 7.7% (Q4: 7.4%) and the reserve rate improved to 11.2%, with management expecting a 2026 net loss range of 7.2%–7.4% and gradual movement toward their longer?term ~6% target over time.
• Capital and funding were strengthened via opportunistic refinancing (paid down a 9.75% note and issued $500M at 6.75%), a Moody’s/Fitch upgrade, CET1 of 13.0%, issuance of $75M preferred, and $310M of common buybacks plus a 10% dividend increase — actions that lower funding costs and return capital to shareholders.
• Q4 GAAP earnings were pulled down by one?time costs tied to debt repurchases (a $42M post?tax impact and higher “other” expenses), creating near?term earnings volatility despite the longer?term funding benefits of the refinancing.
• 2026 guidance calls for low?single?digit loan and revenue growth, NIM near to slightly above 2025 but with a wide range due to potential Fed cuts, product?mix and fee changes, and consumer behavior (e.g., tax refunds), so outcomes remain macro?sensitive.

Bread Financial Stock Up 6.1%

Bread Financial stock traded up $4.19 during midday trading on Thursday, reaching $72.39. The stock had a trading volume of 468,991 shares, compared to its average volume of 972,326. The company has a fifty day moving average price of $72.73 and a two-hundred day moving average price of $65.38. The company has a market capitalization of $3.31 billion, a P/E ratio of 7.29, a PEG ratio of 0.47 and a beta of 1.27. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.33. Bread Financial has a 12 month low of $38.21 and a 12 month high of $82.03.

Bread Financial announced that its Board of Directors has approved a stock buyback plan on Thursday, October 23rd that permits the company to repurchase $200.00 million in shares. This repurchase authorization permits the company to repurchase up to 7.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Institutional Trading of Bread Financial

Several hedge funds have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Bread Financial by 141.2% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock worth $31,000 after acquiring an additional 329 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in Bread Financial by 127.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company’s stock worth $41,000 after purchasing an additional 398 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its position in shares of Bread Financial by 8,300.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company’s stock valued at $47,000 after acquiring an additional 830 shares during the last quarter. Quarry LP increased its position in shares of Bread Financial by 1,509.1% during the 3rd quarter. Quarry LP now owns 885 shares of the company’s stock valued at $49,000 after purchasing an additional 830 shares during the last quarter. Finally, Strs Ohio bought a new stake in shares of Bread Financial during the 1st quarter worth $65,000. Institutional investors and hedge funds own 99.52% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have recently commented on BFH. Zacks Research cut Bread Financial from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 22nd. The Goldman Sachs Group upgraded Bread Financial from a “sell” rating to a “hold” rating and set a $84.00 price target on the stock in a report on Tuesday, January 6th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Bread Financial in a report on Monday, December 29th. Wall Street Zen raised shares of Bread Financial from a “buy” rating to a “strong-buy” rating in a report on Friday, January 23rd. Finally, JPMorgan Chase & Co. reaffirmed an “underweight” rating and set a $72.00 price target on shares of Bread Financial in a research note on Thursday, December 4th. Four analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $78.82.

Bread Financial Company Profile

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.