Core Insights - Bread Financial Holdings (BFH) reported a revenue of $975 million for the quarter ended December 2025, reflecting a year-over-year increase of 5.3% and a surprise of +3.62% over the Zacks Consensus Estimate of $940.92 million [1] - The earnings per share (EPS) for the quarter was $2.07, significantly higher than the $0.41 reported in the same quarter last year, resulting in an EPS surprise of +417.5% compared to the consensus estimate of $0.40 [1] Financial Performance Metrics - Net Interest Margin was reported at 18.9%, exceeding the average estimate of 18% from three analysts [4] - The net loss rate was 7.4%, better than the average estimate of 7.7% from three analysts [4] - The Tier 1 capital ratio stood at 13%, below the average estimate of 13.6% based on two analysts [4] - The total risk-based capital ratio was 16.8%, slightly above the average estimate of 16.6% from two analysts [4] - Total interest income reached $1.25 billion, surpassing the average estimate of $1.22 billion from four analysts [4] - Interest on cash and investment securities was $38 million, slightly below the average estimate of $39.45 million from four analysts [4] - Interchange revenue, net of retailer shares arrangements, was reported at $-127 million, worse than the average estimate of $-121 million from four analysts [4] - Interest and fees on loans totaled $1.21 billion, exceeding the average estimate of $1.18 billion from four analysts [4] - Net interest income was $1.05 billion, above the average estimate of $1.01 billion from four analysts [4] - Total non-interest income was reported at $-72 million, worse than the average estimate of $-66.41 million from four analysts [4] - Other income was $55 million, slightly above the average estimate of $54.59 million from four analysts [4] Stock Performance - Over the past month, shares of Bread Financial have returned -7.9%, contrasting with the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Bread Financial reported a net income available to common stockholders of $53 million for Q4 2025, with adjusted net income of $95 million and earnings per diluted share of $2.07, reflecting a strong performance [12][13] - For the full year 2025, credit sales reached $27.8 billion, a 3% increase year-over-year, while average loans decreased by 1% to $17.9 billion [15][16] - The company achieved a tangible book value per common share growth of 23% year-over-year to $57.57, with a return on average tangible common equity of 20% for the full year [12][22] Business Line Data and Key Metrics Changes - Co-brand credit sales comprised 52% of total credit sales in Q4 2025, up from 48% in Q4 2024, indicating a positive trend in brand partnerships [8][9] - The direct-to-consumer deposit balances increased by 11% year-over-year, now representing 48% of total funding, up from 43% a year ago [9][10] Market Data and Key Metrics Changes - Consumer finance health remained resilient, driving a 2% year-over-year increase in credit sales due to higher transaction sizes and increased transaction frequency [13][14] - The delinquency rate for Q4 was 5.8%, down 10 basis points year-over-year, while the net loss rate improved to 7.4%, down 60 basis points from the previous year [25][26] Company Strategy and Development Direction - The company aims to capitalize on strengths while fortifying its business to offset potential external pressures, focusing on responsible growth and disciplined credit management [33][34] - Continued investment in technology modernization and product innovation, including AI, is expected to drive growth and efficiencies [29][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumers and the gradual improvement in credit metrics, anticipating a positive trajectory for loan growth entering 2026 [13][14] - The outlook for 2026 includes expectations for low single-digit growth in average credit card and other loans, supported by a stable partner base and new business launches [27][30] Other Important Information - The company returned $350 million in capital to shareholders in 2025, including $310 million in common share repurchases and a 10% increase in the quarterly common stock dividend [10][24] - A credit rating upgrade from Moody's and Fitch was received, reflecting the company's strengthened financial resilience [10][22] Q&A Session Summary Question: What is driving the loan growth into 2026? - Management noted that loan growth is driven by resilient consumer behavior, sales momentum, and stable partnerships, with no loosening of underwriting standards [37][39] Question: How does the company view the impact of the labor market on credit quality? - Management is encouraged by underlying data, observing improvements in roll rates and credit metrics, indicating a resilient consumer base despite potential economic pressures [41][43] Question: What are the objectives for direct-to-consumer deposits? - The company aims for direct-to-consumer deposits to reach 70% of total funding over time, benefiting from competitive pricing due to its online presence [59][60] Question: What is the outlook for the reserve rate? - The reserve rate is expected to improve in line with credit quality, with management optimistic about gradually moving risk weightings back to neutral [62][63] Question: How does the company plan to achieve positive operating leverage in 2026? - Management indicated that positive operating leverage will depend on macro conditions impacting revenue, with a focus on operational excellence and continuous improvement initiatives [84][85]

Financial Data and Key Metrics Changes - Bread Financial reported a net income available to common stockholders of $53 million for Q4 2025, with adjusted net income of $95 million and earnings per diluted share of $2.07, reflecting a strong performance [12][13] - Full-year credit sales reached $27.8 billion, a 3% increase year-over-year, while average loans decreased by 1% to $17.9 billion [15][17] - The company achieved a tangible book value per common share growth of 23% year-over-year to $57.57, with a return on average tangible common equity of 20% for the full year [12][22] Business Line Data and Key Metrics Changes - The Home vertical saw significant expansion with new partnerships, including Bed Bath & Beyond and Raymour & Flanigan, contributing to a 52% share of credit sales in Q4, up from 48% in Q4 2024 [8][9] - The direct-to-consumer deposit balances increased by 11% year-over-year, now representing 48% of total funding, up from 43% a year ago [9][10] Market Data and Key Metrics Changes - Consumer finance health remained resilient, driving a 2% year-over-year increase in credit sales, with notable increases in travel and entertainment spending [13][14] - The delinquency rate for Q4 was 5.8%, down 10 basis points year-over-year, while the net loss rate improved to 7.4%, down 60 basis points from the previous year [25][26] Company Strategy and Development Direction - The company aims to capitalize on strengths while fortifying its business against external pressures, focusing on responsible growth and disciplined credit management [33][34] - Continued investment in technology modernization and product innovation, including AI, is a priority to drive growth and efficiencies [29][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumers and the gradual improvement in credit metrics, anticipating a positive trajectory for loan growth entering 2026 [13][14] - The outlook for 2026 includes expectations for low single-digit growth in average credit card and other loans, supported by a stable partner base and new business launches [27][30] Other Important Information - The company returned $350 million in capital to shareholders in 2025, including $310 million in share repurchases and a 10% increase in quarterly dividends [10][24] - A credit rating upgrade from Moody's and Fitch was received, reflecting improved financial resilience and risk management [10][11] Q&A Session Summary Question: What is driving the anticipated loan growth into 2026? - Management indicated that loan growth is driven by resilient consumer behavior and stable partnerships, with no loosening of underwriting standards [37][39] Question: How does the company view the impact of credit quality and potential economic pressures? - Management remains optimistic about credit quality improvements and consumer resilience, despite potential economic pressures [41][43] Question: Can you elaborate on the new travel and entertainment products? - The company has introduced new fee-based products with existing partners, contributing to growth in the travel and entertainment vertical [49][50] Question: What are the expectations for net interest margin (NIM) in 2026? - Management expects NIM to remain stable to slightly higher, influenced by pricing changes and the mix of products [51][52] Question: What is the outlook for direct-to-consumer deposits? - The long-term goal is to increase direct-to-consumer deposits to over 70% of total funding, with competitive pricing expected [59][60] Question: How will the reserve rate evolve with improving credit metrics? - The reserve rate is expected to decrease as credit quality improves, with a target around 10% over time [62][63]

Financial Data and Key Metrics Changes - Bread Financial reported a net income available to common stockholders of $53 million for Q4 2025, with adjusted net income of $95 million and earnings per diluted share of $2.07, reflecting a strong performance [11] - The company's tangible book value per common share grew 23% year-over-year to $57.57, and the return on average tangible common equity was 8% for the quarter and 20% for the full year [11] - Credit sales for the full year reached $27.8 billion, a 3% increase year-over-year, while average loans decreased by 1% to $17.9 billion [14][17] - Total non-interest expenses decreased by $72 million or 3%, driven by lower impacts from debt repurchases [14] Business Line Data and Key Metrics Changes - Co-brand credit sales comprised 52% of total credit sales in Q4 2025, up from 48% in Q4 2024, indicating a positive trend in brand partnerships [6] - The company signed seven major new brand partnerships in 2025, including Bed Bath & Beyond and Crypto.com, while renewing multiple existing partnerships [4][5] - The direct-to-consumer deposit balances increased by 11% year-over-year, now representing 48% of total funding, up from 43% a year ago [8] Market Data and Key Metrics Changes - Consumer finance health remained resilient, driving a 2% year-over-year increase in credit sales due to higher transaction sizes and frequency [12] - The delinquency rate for Q4 was 5.8%, down 10 basis points year-over-year, while the net loss rate was 7.4%, down 60 basis points from the previous year [25] Company Strategy and Development Direction - The company aims to capitalize on its strengths while fortifying its business to offset potential external pressures, focusing on responsible growth and disciplined credit management [32][33] - Continued investment in technology modernization and product innovation, including AI, is a priority to drive growth and efficiencies [28][33] - The company plans to optimize its capital structure and return excess capital to shareholders through share repurchases and dividends [24][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate returns and navigate economic challenges, supported by strong capital levels and cash flow generation [13][33] - The outlook for 2026 anticipates continued consumer resilience and gradual improvements in credit metrics, with expectations for low single-digit growth in credit card and other loans [27][30] - Management noted that while there are pressures from anticipated lower prime rates, the company remains optimistic about its credit performance and overall financial health [20][30] Other Important Information - The company returned $350 million in capital to shareholders in 2025, including $310 million in share repurchases and a 10% increase in quarterly dividends [8][9] - A credit rating upgrade from Moody's and Fitch was received, reflecting the company's strengthened financial resilience [9] Q&A Session Summary Question: What is driving the anticipated loan growth into 2026? - Management indicated that loan growth is driven by a resilient consumer and stable partnerships, with no loosening of underwriting standards [36][38] Question: What is the company's outlook on Bread Pay and its growth potential? - Management expects Bread Pay volume to increase with the addition of new partners and improved underwriting [39] Question: Are there any underlying economic pressures affecting credit quality? - Management noted improvements in roll rates and credit metrics, indicating consumer resilience despite potential economic pressures [41][42] Question: What is the company's strategy regarding direct-to-consumer deposits? - The long-term goal is to increase direct-to-consumer deposits to over 70% of total funding, with competitive pricing expected [56][57] Question: How does the company view the reserve rate and its future trajectory? - Management anticipates the reserve rate will decrease as credit quality improves, with a target around 10% over time [60]

分组1 - Bread Financial Holdings (BFH) reported quarterly earnings of $2.07 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, and compared to earnings of $0.41 per share a year ago, adjusted for non-recurring items [1] - The earnings surprise for the quarter was +417.50%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] - The company posted revenues of $975 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.62%, compared to year-ago revenues of $926 million [3] 分组2 - The stock has underperformed the market, losing about 7.9% since the beginning of the year, while the S&P 500 gained 1.9% [4] - The current consensus EPS estimate for the coming quarter is $2.46 on revenues of $971.13 million, and for the current fiscal year, it is $8.87 on revenues of $3.97 billion [8] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9]

Fourth quarter and full year 2025 results January 29, 2026 © 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 2025 achievements Delivered responsible growth Adapted to the macroeconomic and regulatory environment Disciplined capital allocation and risk management Drove operational excellence and technology advancement Achieved full year 2025 financial outlook (2) In the calculation of Full year 2025 actuals, Revenue (excl. gain on sale) excludes from Total revenue $3 m ...

Core Insights - Bread Financial Holdings, Inc. reported a net loss rate of 7.4% and a delinquency rate of 5.8% as of December 31, 2025, showing stability compared to the previous year [1] - The company has a total of $18.805 billion in end-of-period credit card and other loans, with a year-over-year change in average loans of -1% [1] Financial Performance - For the three months ended December 31, 2025, the average credit card and other loans were $18.474 billion, slightly down from $17.961 billion [1] - Net principal losses for the period were reported at $116 million, with total net losses amounting to $336 million [1] - The delinquency rate decreased from 5.9% in December 2024 to 5.8% in December 2025, indicating a slight improvement in credit 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 has been operational for 30 years, focusing on empowering customers through its financial products [3]

Core Viewpoint - Bread Financial Holdings, Inc. announced its fourth quarter and full year 2025 financial results, highlighting its position as a tech-forward financial services company providing flexible payment, lending, and saving solutions [1]. Group 1: Financial Performance - The company released its financial results for the fourth quarter and full year 2025, with all earnings-related materials available on its investor relations website [1]. - A conference call will be hosted by the President and CEO Ralph Andretta and CFO Perry Beberman to discuss the results [2]. Group 2: Company Overview - Bread Financial is recognized for offering personalized payment, lending, and saving solutions to millions of U.S. consumers, including general purpose credit cards and savings products [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]. - Bread Financial is celebrating 30 years of success in 2026, emphasizing its commitment to performance and sustainability [4].

Exhibit 99.3 ( bread financial. Fourth quarter and full year 2025 results January 29, 2026 2025 achievements Delivered responsible growth 000 Adapted to the macroeconomic and regulatory environment Disciplined capital allocation and risk management Drove operational excellence and technology advancement Achieved full vear 2025 financial outlook | | Full year | Full year | | --- | --- | --- | | | 2025 outlook | 2025 actuals | | Average loans | Flat to slightly down | (1.3)% | | Revenue (excl. gain on sale)(2 ...

Core Viewpoint - Bread Financial Holdings, Inc. has declared quarterly dividends for both its preferred and common stock for the first quarter of 2026, reflecting its ongoing commitment to returning value to shareholders [1]. Dividend Announcements - The Board declared a quarterly cash dividend of $26.35 per share on its 8.625% Non-Cumulative Perpetual Preferred Stock, Series A, payable on March 16, 2026, to stockholders of record as of February 27, 2026 [2]. - A quarterly cash dividend of $0.23 per share was declared on the common stock, also payable on March 16, 2026, to common stockholders of record at the close of business on February 27, 2026 [3]. Company Overview - Bread Financial is a tech-forward financial services company that offers simple, personalized payment, lending, and saving solutions to millions of U.S. consumers, enhancing customer experiences and supporting various brands in multiple sectors [4]. - The company is celebrating 30 years of success in 2026, indicating a long-standing presence and experience in the financial services industry [5].