Bread Financial (BFH) Q2 2025 Earnings Call July 24, 2025 08:30 AM ET Company ParticipantsBrian Vereb - Head of Investor RealtionsRalph Andretta - CEO, President & DirectorPerry Beberman - Executive VP & CFOSanjay Sakhrani - Managing DirectorReggie Smith - ED - Equity ResearchJeffrey Adelson - Executive DirectorRyan Shelley - High Grade & High Yield Credit Research - VPConference Call ParticipantsMihir Bhatia - AnalystMoshe Orenbuch - MD & Senior AnalystTerry Ma - Senior Equity Research AnalystBill Carcache ...

Bread Financial (BFH) Q2 2025 Earnings Call July 24, 2025 08:30 AM ET Speaker0Good morning and welcome to Bred Financial's Second Quarter twenty twenty five Earnings Conference Call. At this time, all parties have been placed on a listen only mode. Following today's presentation, the floor will be open for your questions. It is now my pleasure to introduce Mr. Brian Verib, Head of Investor Relations at Bred Financial.The floor is yours.Speaker1Thank you. Copies of the slides we will be reviewing in the earn ...

Second quarter 2025 results July 24, 2025 © 2 0 2 2 B r e a d F i n a n c i a l | C o n f i d e n t i a l & P r o p r i e t a r y 1 Key highlights Second quarter 2025 Demonstrated financial resilience and focused capital allocation Proactive risk management given macroeconomic uncertainty (1) Represents a Non-GAAP financial measure. See "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures". ©2025 Bread Financial 2 • Enhanced financial resilience through ongoing operationa ...

Exhibit 99.2 ( bread financial. Second quarter 2025 results July 24, 2025 Second quarter 2025 Kev Demonstrated financial resilience and focused capital allocation Proactive risk management given macroeconomic uncertainty (1) Represents a Non-GAAP financial measure. See "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" bread financial Revenue $0.9 billion Net income Adj. net income(2) $139 milli $149 million Adj. diluted EPS(2) Diluted EPS $2.93 $3.14 Year-over-year co ...

Core Insights - Caesars Entertainment is launching a new premium credit card, the Caesars Rewards Prestige Visa Signature, in partnership with Bread Financial, aimed at enhancing customer experience and loyalty [1][2][3] Group 1: Credit Card Features - The Caesars Rewards Prestige Visa Signature credit card has a $149 annual fee and offers up to $450 in annual value through various perks [1][2] - Cardmembers can earn rewards on everyday purchases and unlock exclusive benefits in travel, entertainment, dining, and gaming [2][3] - The card includes a complimentary hotel night upon anniversary (up to $300), $50 Slot Play, and $100 Caesars dining credit [4] Group 2: Tier Credits and Bonuses - New cardholders can earn up to 25,000 additional Tier Credits in their first year, accelerating their progress in the Caesars Rewards loyalty program [2][5] - The card provides multiple opportunities for earning Tier Credits, including bonuses for spending outside Caesars Rewards destinations [5] Group 3: Company Background - Caesars Entertainment is the largest casino entertainment company in the U.S., operating under various brand names and offering a wide range of gaming and hospitality services [7] - The company focuses on enhancing guest value through its Caesars Rewards loyalty program and a commitment to operational excellence and technology leadership [7] Group 4: Partner Company Overview - Bread Financial is a tech-forward financial services company that provides personalized payment and lending solutions, enhancing customer experiences in various sectors [8]

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Bread Financial Holdings (BFH) , which belongs to the Zacks Financial - Miscellaneous Services industry, could be a great candidate to consider.This manager of loyalty and rewards programs for retailers and others has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average ...

Core Insights - Bread Financial Holdings, Inc. is set to host a conference call on July 24, 2025, at 8:30 a.m. ET to discuss its second quarter 2025 results [1] - The company is recognized as a tech-forward financial services provider, offering personalized payment, lending, and saving solutions [3] Company Overview - Bread Financial provides payment solutions, including general purpose credit cards and savings products, aimed at enhancing customer experiences [3] - The company supports growth for well-known brands in various sectors such as travel & entertainment, health & beauty, jewelry, and specialty apparel through private label and co-brand credit cards [3] Conference Call Details - Participants can register in advance for the conference call, which will also feature accompanying slides [2] - The webcast will be archived on the company's investor relations website for future access [2]

Core Insights - The rising trend of bankruptcy filings among consumers with retail credit card debt is linked to record-high interest rates, which have reached an average of 30.45% as of September [2][3] - The proportion of bankruptcy filings that include retail credit card debt has increased at a faster rate than overall new filings, with a 12% rise in such cases compared to a 5.8% increase in total consumer bankruptcy filings between 2023 and 2024 [3] Industry Context - Retail credit cards typically have higher interest rates than traditional credit cards due to the lower credit scores of their holders, making them riskier for banks [1] - The increase in interest rates was influenced by banks anticipating regulatory changes regarding credit card late fees, which ultimately did not take effect, leading to sustained high rates [2] - The Consumer Bankers Association emphasized the role of retail credit cards in helping consumers manage expenses and build credit, while also highlighting the availability of various financial tools for consumers [4]

Summary of Bread Financial (BFH) 2025 Conference Call Company Overview - **Company**: Bread Financial (BFH) - **Date of Conference**: June 11, 2025 Key Industry Insights - **Consumer Spending Trends**: Positive trends observed in consumer spending and credit sales, with expectations for an increase in second quarter compared to the first quarter [5][6][10] - **Impact of Natural Disasters**: Anticipated $13 million impact on the non-performing loan (NCL) rate due to hurricane-related accommodations for affected consumers [6][10] - **Credit Quality**: Year-over-year improvement in credit quality, with a noted decrease in the NCL loss rate by 83 basis points in May [10][12] Financial Performance - **Guidance for Full Year**: Confidence in achieving the low end of the guidance at 8% for the year, contingent on June data and tariff resolutions [11][12] - **Bond Tender Offer**: Successful cash tender offer for $150 million of senior notes, with strong demand exceeding $500 million [14][15] - **Capital Management**: Focus on maintaining liquidity and capital levels while being opportunistic with buybacks and debt management [16][60][61] Strategic Transformation - **Company Evolution**: Significant transformation over the past four years, focusing on simplifying operations and enhancing financial discipline [20][21][22] - **Partnership Model**: Emphasis on building strong relationships with retail partners to drive co-branding opportunities and improve customer engagement [24][27] - **Credit Underwriting Improvements**: Shift in credit mix from subprime to higher quality, with subprime now at low 40% of the portfolio [30][31] Competitive Landscape - **Buy Now Pay Later (BNPL) Impact**: BNPL competition is acknowledged, but it primarily affects lower credit tiers, with Bread Financial focusing on prime and near-prime customers [28][29] - **Regulatory Environment**: Recent favorable rulings regarding late fees and pricing changes are expected to provide a tailwind to net interest margin (NIM) and revenues [46][50] Future Outlook - **Strategic Priorities**: Focus on operational excellence, optimizing the balance sheet, and enhancing technology capabilities to drive growth and efficiency [68][70] - **Long-term Goals**: Aim for a return on tangible common equity (ROTCE) target of over 20% through disciplined capital management and growth strategies [68][70] Additional Considerations - **Student Loan Impact**: Monitoring of consumers with student loans shows stable performance, with no significant uptick in delinquencies despite the resumption of payments [39][40][41] - **Market Conditions**: Caution regarding macroeconomic conditions and their potential impact on credit quality and consumer behavior [35][36] This summary encapsulates the key points discussed during the conference call, highlighting Bread Financial's current performance, strategic direction, and outlook in the context of the broader financial services industry.

Core Insights - Bread Financial Holdings, Inc. reported a performance update highlighting a decrease in net loss rate and delinquency rate year-over-year [1] Financial Performance - As of May 31, 2025, the end-of-period credit card and other loans stood at $17,702 million, a slight decrease from $17,847 million in the same period of 2024, reflecting a year-over-year change of -1% [1] - The net principal losses for May 2025 were $120 million, down from $133 million in May 2024, resulting in a net loss rate of 8.0%, compared to 8.8% a year earlier [1] - The delinquency rate as of May 31, 2025, was 5.7%, a decrease from 5.9% in May 2024, with 30 days + delinquencies totaling $926 million, down from $976 million [1] Company Overview - Bread Financial is a tech-forward financial services company that offers personalized payment, lending, and saving solutions to millions of U.S. consumers [2] - The company provides general purpose credit cards and savings products, aiming to empower customers and enhance their lifestyles [2] - Bread Financial also supports growth for recognized brands in various sectors through private label and co-brand credit cards [2]