Key highlights First quarter 2025 results April 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 $970 million Revenue • Closely monitoring the impact of the new administration's policies including tariffs, trade, immigration, tax and deregulation, and the impacts they have on consumers and our business. • While consumer financial health was relatively steady in the first quarter, we will remain disciplined with our credit risk management given ongoing macroe ...

Core Insights - Bread Financial Holdings (BFH) reported a revenue of $970 million for the quarter ended March 2025, reflecting a decrease of 2.1% year-over-year, while EPS increased to $2.86 from $2.73 in the previous year, indicating a positive trend in earnings despite revenue decline [1] - The revenue exceeded the Zacks Consensus Estimate by 1.28%, while the EPS surpassed the consensus estimate by 36.19%, suggesting stronger-than-expected performance in earnings [1] Financial Performance Metrics - Efficiency Ratio stood at 49.1%, better than the average estimate of 52.4% from three analysts [4] - Net Interest Margin was reported at 18.1%, slightly above the estimated 17.8% [4] - Total Risk-based Capital Ratio was 15.5%, exceeding the average estimate of 14.2% [4] - Common equity tier 1 Capital Ratio was 12%, below the estimated 12.8% [4] - Total interest income reached $1.23 billion, slightly below the average estimate of $1.25 billion [4] - Interest on cash and investment securities was $46 million, lower than the estimated $49.26 million [4] - Interchange revenue was reported at -$83 million, better than the estimated -$96.84 million [4] - Interest and fees on loans totaled $1.19 billion, slightly below the estimate of $1.20 billion [4] - Net interest income matched the average estimate of $1.01 billion [4] - Total non-interest income was -$36 million, outperforming the estimate of -$51.58 million [4] - Other Non-Interest Income was $47 million, exceeding the estimated $44.74 million [4] Stock Performance - Shares of Bread Financial have returned -7% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Insights - Bread Financial Holdings (BFH) reported quarterly earnings of $2.86 per share, exceeding the Zacks Consensus Estimate of $2.10 per share, and up from $2.73 per share a year ago [1] - The earnings surprise for the quarter was 36.19%, and the company has surpassed consensus EPS estimates three times in the last four quarters [2] - The company generated revenues of $970 million for the quarter, surpassing the Zacks Consensus Estimate by 1.28%, but down from $991 million year-over-year [3] Earnings Performance - The earnings surprise of 36.19% indicates strong performance relative to expectations [2] - The company has consistently exceeded revenue estimates, achieving this three times in the last four quarters [3] Stock Performance - Bread Financial shares have declined approximately 21.6% year-to-date, compared to a decline of 8.6% for the S&P 500 [4] - The current Zacks Rank for the stock is 3 (Hold), suggesting it is expected to perform in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.77 on revenues of $952.44 million, and for the current fiscal year, it is $6.50 on revenues of $3.9 billion [8] - The industry outlook is favorable, with the Financial - Miscellaneous Services sector ranking in the top 36% of Zacks industries, indicating potential for outperformance [9] Related Industry Insights - Upstart Holdings, Inc. (UPST), another company in the same industry, is expected to report quarterly earnings of $0.19 per share, reflecting a year-over-year increase of 161.3% [10] - UPST's anticipated revenues are projected to be $200.74 million, representing a 57.1% increase from the previous year [11]

Core Insights - Bread Financial Holdings, Inc. reported a performance update highlighting its financial metrics for the month and three months ended March 31, 2025, indicating a net loss rate of 8.1% and a delinquency rate of 5.9% [1] Financial Performance - End-of-period credit card and other loans stood at $17,815 million as of March 31, 2025, with an average of $17,818 million for the same period [1] - There was a year-over-year decrease of 2% in average credit card and other loans [1] - Net principal losses were reported at $123 million for the month and $365 million for the three months ended March 31, 2025 [1] - The net loss rate slightly improved from 8.2% in the previous year to 8.1% [1] - Delinquency rate decreased from 6.2% in March 2024 to 5.9% in March 2025, with 30 days or more delinquencies amounting to $973 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] - It also supports growth for recognized brands in various sectors through private label and co-brand credit cards [2]

Kev Demonstrated financial resilience and opportunistic capital allocation Exhibit 99.2 bread financial. First quarter 2025 results April 24, 2025 First quarter 2025 Proactive risk management given ongoing macroeconomic uncertainty (1) Represents a Non-GAAP financial measure. See "Non-GAAP Financial Measures" and "Reconsiliation of GAAP to Non-GAAP Financal Measures" bread financial 2 ©2025 Bread Financial Enhanced financial resilience through responsible growth, proactive risk management, prudent capital a ...

Core Viewpoint - Bread Financial has entered into a multi-year agreement with Crypto.com to launch the first Crypto.com credit card program in the United States, aiming to enhance customer access to cryptocurrency rewards and payment options [1][4]. Company Overview - Bread Financial is a tech-forward financial services company that provides personalized payment, lending, and saving solutions to millions of U.S. consumers [5]. - The company focuses on delivering growth for recognized brands through private label and co-brand credit cards, as well as pay-over-time products [5]. Product Details - The Crypto.com Visa Signature® Credit Card will feature five tiers, allowing cardmembers to earn uncapped CRO rewards at varying rates, with elevated rates for the first twelve months for select tiers [2][4]. - Cardmembers can pre-qualify or apply for the credit card through the Crypto.com app, and once approved, they can add the card to their digital wallets [3]. Customer Benefits - The credit card program is designed to help both novice and experienced traders maximize their investments through straightforward rewards [4]. - Higher-tier cardmembers will receive additional benefits, including unlimited rebates for services like Spotify and Netflix through Crypto.com's Level Up program [2][4]. Market Position - Crypto.com is recognized as an industry leader with over 140 million customers globally, committed to accelerating cryptocurrency adoption through innovative solutions [4][7].

Core Insights - Bread Financial Holdings, Inc. reported its first quarter 2025 financial results, emphasizing its position as a tech-forward financial services company [1] - The company provides flexible payment, lending, and saving solutions to millions of U.S. consumers, enhancing customer experiences and supporting various brands [3] Financial Performance - The financial results for the first quarter of 2025 were announced, with all related materials available on the company's investor relations website [1] - A conference call was scheduled to discuss these results, indicating a commitment to transparency and communication with investors [2] Company Overview - Bread Financial specializes in personalized financial solutions, including general purpose credit cards and savings products, aimed at improving customers' lives [3] - The company collaborates with well-known brands across various sectors, including travel, entertainment, health, beauty, jewelry, and specialty apparel, through private label and co-brand credit cards [3]

Company Overview - Bread Financial Holdings (BFH) is expected to report a year-over-year decline in earnings due to lower revenues, with a consensus EPS estimate of $2.08, reflecting a -23.8% change [3][12] - Revenues are anticipated to be $957.76 million, down 3.4% from the previous year [3] Earnings Expectations - The earnings report is scheduled for April 24, 2025, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised down by 7.66% over the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP for Bread Financial is +4.18%, suggesting a likelihood of beating the consensus EPS estimate [11] - The stock currently holds a Zacks Rank of 3 (Hold), which indicates a moderate outlook [11] Historical Performance - In the last reported quarter, Bread Financial exceeded the expected EPS of $0.33 by delivering $0.41, resulting in a surprise of +24.24% [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Industry Comparison - Moody's (MCO), a peer in the financial services industry, is expected to report an EPS of $3.57, reflecting a +5.9% year-over-year change, with revenues projected at $1.89 billion, up 5.7% [17] - Moody's has a consensus EPS estimate that has been revised up by 0.1% over the last 30 days, but it currently has an Earnings ESP of -0.38%, making predictions about beating the consensus EPS challenging [18]

Company Overview - Bread Financial Holdings (BFH) shares increased by 12.7% to $48.28, following a broader market rally after President Trump's announcement of a 90-day pause on reciprocal tariffs for most countries [1] - The stock had previously experienced a 10.1% decline over the past four weeks [1] Earnings Expectations - For the upcoming quarterly report, Bread Financial is expected to post earnings of $2.08 per share, reflecting a year-over-year decrease of 23.8% [2] - Revenue projections stand at $957.76 million, which is a 3.4% decline compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Bread Financial has been revised down by 12.4% over the last 30 days [4] - A negative trend in earnings estimate revisions typically does not lead to price appreciation, indicating potential caution for future stock performance [4] Industry Context - Bread Financial operates within the Zacks Financial - Miscellaneous Services industry, where Applied Digital Corporation (APLD) also resides [4] - APLD's shares rose by 8.7% to $5.52, but the company has seen a 20.3% decline over the past month [4] - APLD's consensus EPS estimate remains unchanged at -$0.11, which is a 78.9% improvement compared to the previous year [5]

Core Viewpoint - Bread Financial Holdings, Inc. will host a conference call on April 24, 2025, to discuss its first quarter 2025 results [1] Group 1: Company Overview - Bread Financial is a tech-forward financial services company providing personalized payment, lending, and saving solutions to millions of U.S. consumers [3] - The company offers payment solutions, including general purpose credit cards and savings products, aimed at empowering customers [3] - Bread Financial collaborates with recognized brands in various sectors, including travel & entertainment, health & beauty, jewelry, and specialty apparel through private label and co-brand credit cards [3] Group 2: Conference Call Details - The conference call will take place at 8:30 a.m. ET and will be available on the company's investor relations website [1][2] - Participants are encouraged to register in advance and download necessary software at least 15 minutes prior to the call [2] - The webcast will be archived on the investor relations website for future access [2]