Beberman said January credit results were “good numbers” and came in around expectations. He also flagged a seasonal increase in February, though he expects it to improve year-over-year. He said the company expects metrics to move “near 8” (but “not all the way to 8%”) as seasonal factors play out.He said customers have adjusted household budgets to cope with what he described as 30% to 35% compounded inflation post-COVID, and Bread is seeing consumers remain “choiceful” about what and when they purchase. W ...

Chief Executive Officer Ralph Andretta, marking roughly five years in the role, pointed to the buildout of the management team as a key achievement and said the company exited the fourth quarter and the full year “really strong.” He described Bread’s post-COVID period as a multi-year transformation and said the company has made notable progress strengthening its balance sheet, including paying down debt and improving tangible value. He also cited the company receiving ratings from rating agencies as “a grea ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-15749 __________________________________________________ BREAD FINANCIAL HOLDINGS, INC. (Exact name of registrant a ...

Core Viewpoint - The discussion features Perry Beberman, CFO of Bread Financial, highlighting the company's position as a major player in the credit card issuance market, particularly in private label, co-brand, and general purpose credit cards [1] Company Overview - Bread Financial is recognized as one of the largest credit card issuers in the industry [1] - The company primarily focuses on private label, co-brand, and general purpose credit cards, indicating a diverse product offering within the consumer finance sector [1] Industry Context - The consumer finance sector, particularly in credit card issuance, is characterized by significant competition and innovation, with companies like Bread Financial playing a crucial role [1]

Summary of Bread Financial Conference Call Company Overview - **Company**: Bread Financial (NYSE: BFH) - **Industry**: Consumer Finance, Credit Card Issuing Key Points Consumer Health and Economic Environment - Bread Financial primarily serves Middle America, focusing on near-prime to prime customers with an average income of approximately $95,000 for new vintages and just under $80,000 for the overall portfolio [3][4] - The company has observed a K-shaped economy, where consumers in the middle segment are adapting to elevated inflation, which has been around 30%-35% compounded since COVID-19 [4] - Consumers are making more deliberate purchasing choices, showing resilience despite some strain in the portfolio [5] Credit Quality and Loan Growth - January data indicated continued progress in credit quality, with expectations for credit losses to improve throughout 2026 [6][8] - The company anticipates average loan growth in the low single digits for the year, supported by new partner launches and tax refunds [12][14] - Tax refunds are expected to be a tailwind for consumers, potentially used for debt repayment or discretionary spending [10][11] Strategic Partnerships and Market Position - New partner launches in 2025, such as with Raymour & Flanigan and Cricket Wireless, are expected to contribute positively to loan growth [12][14] - Bread Financial is focused on maintaining a competitive edge by securing partnerships and exploring new opportunities in the market [15] Buy Now, Pay Later (BNPL) Segment - The BNPL segment is growing, now representing around 2% of outstanding loans and sales, appealing to consumers who may not qualify for traditional credit [17][19] - The company is working on white-labeled BNPL offerings with brand partners to enhance consumer engagement [18] Revenue and Margin Outlook - Pricing changes implemented in previous years are expected to support net interest margins, which are projected to remain flat to slightly up [21][22] - The company aims to achieve positive operating leverage by growing revenues faster than expenses [25] Operational Efficiency and AI Integration - Bread Financial has established a culture of operational excellence, generating tens of millions in savings annually, which are reinvested into technology and efficiency improvements [24] - The company has over 200 machine learning models in place and is exploring AI applications to enhance customer service and operational efficiency [35][38] Regulatory Environment and Capital Management - The company is cautious about potential price caps on credit cards, believing they could restrict credit access for many consumers [41] - Capital levels have improved significantly, with CET1 at 13%, and the company is focused on supporting profitable growth while returning capital to shareholders through buybacks [46][47] Future Outlook - Bread Financial expresses cautious optimism for 2026, anticipating continued credit improvement and a stable labor market, which could support consumer spending [49][50] - The company is committed to growing responsibly and profitably, focusing on enhancing customer service and expanding partnerships [48][50] Additional Insights - The merger of the two banks (Utah and Delaware) is aimed at improving funding flexibility and capital management [31][33] - The company is not currently focused on major disruptions but is adapting to changes in the market and consumer behavior [38]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Bread Financial Conference Call Summary Company Overview - **Company**: Bread Financial (NYSE: BFH) - **Industry**: Consumer finance and payments, focusing on private label card issuance, co-brand cards, proprietary cards, and buy now, pay later loans [1] Key Points and Arguments Financial Performance - **January Results**: Positive trends in January with flat loan growth and improved loss and delinquency rates. February is expected to see a seasonal increase in activity, approaching 8% [2] - **Expense Management**: Non-interest expenses were $500 million in Q4, expected to decrease slightly in Q1. Adjusted expenses exclude one-time charges from previous years [3] - **Loan Growth Outlook**: Anticipated low single-digit growth for the year, supported by new partnerships and improved credit quality [18] Customer Insights - **Customer Demographics**: Bread Financial primarily serves middle-income consumers with an average income of $94,000. The customer base is resilient despite economic challenges, adjusting spending habits due to inflation [9][10] - **Spending Behavior**: Consumers are making more budget-conscious choices, opting for lower-cost options while maintaining financial stability [10] Product Diversity and Partnerships - **Product Expansion**: Bread Financial has diversified its offerings beyond private label credit cards to include co-brand products, direct-to-consumer products, and buy now, pay later options [12][14] - **Partner Relationships**: The expanded product set enhances partnerships by providing more options for consumers, increasing revenue opportunities for partners [16] Market Dynamics and Competitive Landscape - **Pipeline and Competition**: The company has a robust pipeline for new partnerships, with opportunities in both de novo programs and existing partner renewals. Competition remains intense, but Bread Financial is well-positioned to leverage its expertise [39][41] - **Vertical Expertise**: Strong performance in verticals such as beauty, jewelry, and technology, with a focus on expanding into digital and home improvement sectors [43][44] Financial Strategy and Outlook - **Funding Strategy**: Significant progress made in refinancing debt, with a goal to increase direct-to-consumer deposits to 50% of total funding. The company aims to maintain a stable funding structure while exploring opportunities for preferred stock issuance [45][46] - **NIM Guidance**: Net interest margin (NIM) is expected to remain flat to slightly up, influenced by pricing changes and improvements in credit quality [49] Risks and Opportunities - **Macro Risks**: Potential impacts from tax refunds on consumer behavior and loan performance. The company is cautious in its guidance, accounting for various macroeconomic factors [24][25] - **Technology Transformation**: Ongoing tech transformation efforts, including migration to cloud services and AI integration, are seen as critical for future growth [53][58] Future Initiatives - **Focus Areas for 2026**: Emphasis on responsible growth, managing expenses, and leveraging technology to enhance customer service and underwriting processes [65][67] Additional Important Insights - **Consumer Behavior with Windfall Gains**: The use of tax refunds varies among consumers, with some opting to save, spend, or pay down debt, reflecting diverse financial strategies [27] - **AI Strategy**: Bread Financial is adopting a thoughtful approach to AI, focusing on governance, use cases, and ensuring returns on investments in technology [57][59] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Bread Financial's performance, market positioning, and future outlook.

Performance Update - Bread Financial Holdings, Inc. reported a net principal loss rate of 7.1% for January 31, 2026, down from 7.8% a year earlier, indicating improved credit performance [1] - The company experienced net principal losses of $111 million in January 2026, a decrease from $123 million in January 2025 [1] - The delinquency rate as of January 31, 2026, was 5.9%, compared to 6.1% in the previous year, reflecting a positive trend in loan performance [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 quality of life [2] - Bread Financial also supports growth for recognized brands in various sectors through private label and co-brand credit cards, offering value to shared customers [2] Company Milestone - In 2026, Bread Financial celebrates 30 years of success, highlighting its long-standing presence in the financial services industry [3]

Core Viewpoint - Bread Financial Holdings, Inc. is actively participating in the UBS Financial Services Conference, highlighting its commitment to engaging with investors and stakeholders in the financial services sector [1]. Company Participation - The company will have its Executive Vice President and Chief Financial Officer, Perry Beberman, participate in a fireside chat scheduled for February 11 at 12:10 p.m. ET, which will be broadcast live [1]. - The fireside chat will also be accessible through the company's investor relations website, with a replay available for 90 days post-event [2]. 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 [3]. - The company provides various payment solutions, including general-purpose credit cards and savings products, aimed at empowering customers and enhancing their lifestyles [3]. - Additionally, Bread Financial supports growth for well-known brands in sectors such as travel, entertainment, health, beauty, jewelry, and specialty apparel through private label and co-brand credit cards [3]. Company Milestone - In 2026, Bread Financial celebrates 30 years of success, reflecting its long-standing presence and performance in the financial services industry [4].

Core Viewpoint - Bread Financial Holdings, Inc. is actively participating in the Bank of America 2026 Financial Services Conference, highlighting its commitment to engaging with investors and stakeholders in the financial services sector [1][2]. 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 [3]. - The company provides various payment solutions, including general purpose credit cards and savings products, aimed at empowering customers and enhancing their quality of life [3]. - Bread Financial also supports growth for well-known brands in sectors such as travel & entertainment, health & beauty, jewelry, and specialty apparel through private label and co-brand credit cards [3]. Event Participation - The company's President and CEO, Ralph Andretta, along with EVP and CFO, Perry Beberman, will participate in a fireside chat at the conference scheduled for February 10, 2026, at 3:30 p.m. ET [2]. - The event will be broadcast live and will also be accessible through Bread Financial's investor relations website, with a replay available for 90 days post-event [2]. Company Milestone - Bread Financial is celebrating 30 years of success in 2026, marking a significant milestone in its operational history [4].