Core Insights - Bread Financial Holdings (BFH) reported quarterly earnings of $4.02 per share, significantly exceeding the Zacks Consensus Estimate of $2.11 per share, and up from $1.84 per share a year ago [1][2] - The earnings surprise for this quarter was +90.52%, following a previous surprise of +69.73% in the last quarter [2] - The company generated revenues of $971 million for the quarter ended September 2025, slightly surpassing the Zacks Consensus Estimate by 0.46%, but down from $983 million year-over-year [3] Earnings Performance - The company has consistently surpassed consensus EPS estimates over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $958.53 million, and for the current fiscal year, it is $8.33 on revenues of $3.87 billion [8] Stock Performance and Outlook - Bread Financial shares have declined approximately 0.9% year-to-date, contrasting with the S&P 500's gain of 13.9% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Financial - Miscellaneous Services industry, to which Bread Financial belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9] - Another company in the same industry, Sachem Capital Corp. (SACH), is expected to report quarterly earnings of $0.01 per share, reflecting a year-over-year increase of +107.7% [10]

Financial Performance - Net income reached $188 million, with diluted earnings per share at $3.96, including a $38 million favorable discrete tax item and a $3 million post-tax impact from repurchased debt[5] - Adjusted net income was $191 million[7] - Revenue totaled $1 billion[7] - Tangible book value per common share increased by $8.88, or 19%, year-over-year to $56.36[5] - Return on average tangible common equity was 28.6%[5] Deposits and Funding - Direct-to-consumer deposits increased by 9% year-over-year to $8.2 billion, representing 47% of average total funding[5] Capital Allocation - The company announced a share repurchase authorization of $200 million in August and repurchased 0.6 million shares during the quarter[5] - An additional 0.4 million shares were repurchased in October, totaling 1 million shares for $60 million[5] - A $200 million increase to the share repurchase authorization was announced, bringing the total available to $340 million[5] - A quarterly cash dividend of $0.23 per common share was declared, a 10% increase from the prior quarter[5] Credit Quality - The delinquency rate decreased from 6.4% to 6.0% compared to the third quarter of 2024[12] - The net loss rate decreased from 7.8% to 7.4% compared to the third quarter of 2024[12]

Financial Performance - Net income for Q3 2025 was $188 million, with earnings per diluted share of $3.96, reflecting a favorable discrete tax item of $38 million[7]. - Adjusted net income for Q3 2025 was $191 million, compared to $93 million in Q3 2024, representing a significant increase of 105% year-over-year[68]. - The company reported a net income of $188 million for Q3 2025, compared to $2 million in Q3 2024, marking a substantial increase[68]. - Net income for Q3 2023 was $173 million, with earnings per diluted share at $3.46[47]. - The return on average assets rose significantly to 3.4% in Q3 25 from 0.1% in Q3 2024, showcasing improved profitability[43]. - The return on average equity for Q3 2023 was 24.8%, reflecting strong profitability[45]. - Adjusted earnings per diluted share for Q3 2025 were $4.02, compared to $1.83 in Q3 2024, reflecting a growth of approximately 120% year-over-year[68]. Credit and Delinquency Metrics - The delinquency rate improved to 6.0%, down from 6.4% in Q3 2024, while the net loss rate decreased to 7.4% from 7.8%[13]. - The delinquency rate improved to 6.0% in 3Q25 from 6.4% in 3Q24, indicating better credit performance[43]. - The net loss rate for 2025 is expected to improve to between 7.8% and 7.9%, down from 8.2% in 2024, due to resilient consumer behavior and effective credit management actions[26]. - Provision for credit losses for YTD 2025 was $869 million, down from $980 million in YTD 2024, indicating a decrease of about 11%[69]. - Delinquency rates peaked at 6.5% in 4Q21, with a 15-year average rate of approximately 4.9%[53]. - Net loss rates peaked at 8.9% in 4Q10, with a 15-year average rate of around 5.9%[53]. Capital and Equity - The CET1 capital ratio improved to 14.0% in Q3 2025, up from 13.3% in Q3 2024[20]. - Tangible book value per common share increased by $8.88, or 19%, year-over-year, reaching $56.36[7]. - Tangible book value per common share increased by 19% to $56.36 in 3Q25 from $47.48 in 3Q24[43]. - Tangible common equity over tangible assets (TCE/TA) is utilized to assess capital adequacy, with TCE for Q3 2025 at $2,594 million[69]. - Common equity tier 1 capital ratio for the total company was 12.9% in 3Q23, projected to decrease to 12.0% by 1Q25[50]. - Total risk-based capital ratio for the total company was 14.2% in 3Q23, expected to rise to 15.5% by 1Q25[50]. - Tangible common equity to tangible assets ratio was 10.0% in 3Q23, projected to reach 12.4% by 3Q25[50]. - Average tangible common equity for Q3 2025 was $2,607 million, an increase from $2,566 million in Q3 2024, showing a growth of approximately 2%[69]. Operational Efficiency - Total non-interest expenses decreased by $98 million, or 17%, primarily due to the prior year impact from repurchased debt[13]. - Total non-interest expenses decreased by 17% compared to 3Q24, reflecting strategic adjustments in employee compensation and benefits[34]. - Total non-interest expenses for Q3 2025 were $476 million, down from $574 million in Q3 2024, reflecting a decrease of approximately 17% year-over-year[68]. - The efficiency ratio improved to 49.0% in 3Q25, down from 58.4% in 3Q24, indicating enhanced operational efficiency[43]. - The efficiency ratio for Q3 2023 was 48.7%, indicating operational efficiency[45]. Revenue and Sales - Credit sales amounted to $6.8 billion, an increase of $0.3 billion or 5%, driven by new partner growth and increased general-purpose spending[13]. - Revenue for 2025, excluding any gain on portfolio sale, is expected to remain flat at $3,827 million, impacted by pricing changes and interest rate reductions by the Federal Reserve[26]. - Credit sales for Q3 2023 were $6,668 million, showing a year-over-year decline of 13%[45]. - Average credit card and other loans decreased by 8% year-over-year to $17,540 million in Q3 2023[45]. - Net interest income for Q3 2023 was $1,082 million, with total interest income at $1,301 million[47]. - The net interest margin for Q3 2025 is projected to be 18.8%[49]. Deposits - Direct-to-consumer deposits reached $8.2 billion, marking a 9% year-over-year increase and representing 47% of average total funding[7]. - End-of-period direct-to-consumer deposits increased by 9% to $8,188 million in 3Q25 compared to $7,483 million in 3Q24[43]. - End-of-period direct-to-consumer deposits increased by 18% year-over-year, reaching $6,098 million in Q3 2023[45]. Shareholder Returns - A quarterly cash dividend of $0.23 per common share was declared, representing a 10% increase from the prior quarter[7]. - The company announced a $200 million increase to its share repurchase authorization, bringing the total available for repurchases to $340 million[7]. Strategic Focus - The company plans to focus on responsible growth and disciplined capital allocation to manage macroeconomic and regulatory challenges in 2025[30]. - The company emphasizes the importance of forward-looking statements regarding future financial performance and market conditions[63]. - Non-GAAP financial measures are used to provide additional clarity in understanding operational results and trends[66].

Core Insights - Bread Financial Holdings, Inc. reported a performance update highlighting a net loss rate of 6.9% for the three months ended September 30, 2025, a decrease from 7.4% in the same period last year [1] - The delinquency rate improved to 6.0% as of September 30, 2025, down from 6.4% a year earlier [1] - The company experienced a year-over-year decline in average credit card and other loans, with a 2% decrease in the three months ended September 30, 2025, compared to the previous year [1] Financial Performance - End-of-period credit card and other loans stood at $17.655 billion as of September 30, 2025, unchanged from the previous year [1] - Average credit card and other loans were reported at $17.605 billion for the three months ended September 30, 2025, compared to $17.596 billion in the same period last year [1] - Net principal losses for the period were $101 million, a significant decrease from $328 million in the previous year [1] Delinquency and Loss Rates - The net loss rate for the company was recorded at 6.9% for the three months ended September 30, 2025, compared to 7.4% for the same period in 2024 [1] - The total amount of 30 days or more delinquencies in principal was $963 million as of September 30, 2025, down from $1.062 billion a year prior [1] - The delinquency rate reflects an improvement, indicating better credit performance and management [1]

Core Insights - Raymour & Flanigan has entered a long-term agreement with Bread Financial to launch a private label credit program aimed at enhancing customer purchasing flexibility and convenience [1][2][3] Company Overview - Raymour & Flanigan is the largest furniture and mattress retailer in the Northeast and the seventh largest nationwide, with 104 showrooms, 36 outlet stores, and 5 clearance centers [6] - The company emphasizes exceptional customer service, advanced technology solutions, and quality products, alongside a commitment to sustainability by recycling over 99% of packaging materials, equating to 20 million pounds annually [6] Partnership Details - The new financing program will integrate seamlessly into Raymour & Flanigan's platforms, supporting their commitment to customer service and making home furnishings more accessible [2][3] - Bread Financial will utilize data-driven insights to enhance the customer experience across various channels [2][3] Strategic Goals - The partnership aims to provide immediate value and flexibility to shoppers, aligning with Raymour & Flanigan's vision of making it easier for customers to create their ideal homes [3] - Both companies are focused on delivering differentiated value to loyal customers through this new financing initiative [3]

Core Viewpoint - Bread Financial Holdings, Inc. announced its third quarter 2025 financial results, highlighting its position as a tech-forward financial services company that offers flexible payment, lending, and saving solutions [1]. Group 1: Financial Performance - The company has made its third quarter 2025 financial results 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 provides 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 recognized brands in various sectors such as travel & entertainment, health & beauty, jewelry, and specialty apparel through private label and co-brand credit cards [3].

Core Viewpoint - Bread Financial Holdings, Inc. has announced a quarterly cash dividend increase and a significant share repurchase authorization, reflecting strong financial health and commitment to shareholder value [1][2][3]. Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.23 per share, which is a 10% increase from the previous dividend of $0.21 per share [1]. - The dividend is payable on December 12, 2025, to stockholders of record as of November 7, 2025 [1]. Share Repurchase Authorization - The company approved a $200 million increase to its existing share repurchase authorization, bringing the total available for repurchases to $340 million [2]. - There is no expiration date for the share repurchase authorization [2]. Financial Strength and Strategy - The company emphasizes its strong capital and cash flow generation, along with a robust balance sheet, which allows it to pursue capital and growth priorities simultaneously [3]. - This strategy aims to deliver additional value to shareholders through increased dividends and share repurchases [3].

Core Insights - Bread Financial Holdings (BFH) has a strong history of exceeding earnings estimates and is well-positioned for continued success in upcoming reports [1][6] Earnings Performance - The company has consistently beaten earnings estimates, with an average surprise of 52.96% over the last two quarters [2] - For the last reported quarter, Bread Financial achieved earnings of $3.14 per share, surpassing the Zacks Consensus Estimate of $1.85 per share by 69.73% [3] - In the previous quarter, the company reported earnings of $2.86 per share against an expected $2.1 per share, resulting in a surprise of 36.19% [3] Earnings Estimates and Predictions - Recent estimates for Bread Financial have been increasing, indicating positive sentiment among analysts [6] - The Zacks Earnings ESP for the company is currently +0.71%, suggesting bullish expectations for future earnings [9] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high likelihood of another earnings beat [9] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [8]

Core Insights - Bread Financial Holdings, Inc. (BFH) shares are trading at a significant discount compared to the Zacks Financial - Miscellaneous Services industry, with a forward price-to-earnings multiple of 6.28X versus the industry average of 24.85X [1] - The company has a market capitalization of $2.55 billion and an average trading volume of 0.6 million shares over the last three months [1] Growth Projections - The Zacks Consensus Estimate for BFH's 2025 earnings per share indicates a year-over-year increase of 9.6%, with revenues projected at $3.87 billion, reflecting a 0.8% improvement [5] - For 2026, earnings per share and revenues are expected to increase by 6.1% and 3.4%, respectively, compared to 2025 estimates [5] Analyst Sentiment - One of three analysts covering BFH has raised estimates for 2025, and three of seven analysts have raised estimates for 2026 in the past 60 days, leading to a 4.1% and 1.8% increase in the Zacks Consensus Estimate for 2025 and 2026 earnings, respectively [7] Credit Sales and Strategic Investments - BFH anticipates credit sales growth driven by strong consumer spending, new partnerships, and holiday demand, with average loans expected to rise alongside higher credit sales [9][13] - The company is making strategic investments in digital innovation, technology, and marketing to drive growth [15] Financial Metrics - BFH's return on invested capital over the trailing 12 months was 9.7%, outperforming the industry average of 5.1% [12] - The company has been strengthening its balance sheet and reducing debt, with plans to pay down $100 million in 2026 bonds this year [16] Shareholder Value - BFH is focused on returning value to shareholders through share repurchases and intends to increase its focus on buybacks and mergers and acquisitions [17] - The stock has a favorable VGM Score of A, indicating attractive value, growth, and momentum compared to peers [18] Valuation and Market Position - The average target price for BFH, based on short-term price targets from 15 analysts, is $71 per share, suggesting a potential upside of 27.45% from the last closing price [10] - Higher return on capital, favorable growth estimates, and attractive valuations are expected to benefit BFH in the long term [19]

Core Viewpoint - Bread Financial Holdings, Inc. will host a conference call on October 23, 2025, to discuss its third quarter 2025 results, highlighting its focus on personalized financial services [1]. Group 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 [3]. - The company provides general purpose credit cards and savings products, aiming to empower customers and enhance their quality of life [3]. - Bread Financial also supports growth for recognized brands in various sectors, including travel, 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 participants can register in advance through the company's investor relations website [2]. - Analysts wishing to participate in the Q&A session are encouraged to register beforehand, and a webcast will accompany the call, which will also be archived for later access [2].