Bread Financial (BFH) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

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]