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].

Financial Data and Key Metrics Changes - The company achieved a real GMV growth of 12.1% in 2024, with an unadjusted inflation basis GMV growth of 74% year on year [6][7] - Gross contribution margin improved to 11.3%, reflecting a 2.1 percentage point increase compared to the previous year [7][18] - EBITDA as a percentage of GMV reached 1.1%, marking a 0.7 percentage point rise year on year [7][18] Business Line Data and Key Metrics Changes - Active customers increased by 235,000, totaling 12,200,000, with orders growing by 16 percentage points year on year to 131,400,000 [8] - The company reported a 2.9 percentage point shift towards marketplace operations, with 3P operations accounting for approximately 70% of the business [19] - Lending solutions saw a total volume of TRY 16,200,000,000, which is 2.6 times the total volume in 2023 [12] Market Data and Key Metrics Changes - Revenue grew by 6.4% in Q4, leading to an 11.1% growth for the full year compared to the previous year [20] - Delivery service revenue increased by 50% in 2024, while other revenue, including advertising services, rose by 112% [20][21] - The gross contribution margin improved due to increased delivery service revenue and higher other revenue, including ads and premium subscription revenue [21] Company Strategy and Development Direction - The company focuses on three strategic priorities: customer loyalty, enhancing delivery services, and expanding B2B services [9][10] - The loyalty program, Hexo Product Premium, reached a member base of 3,700,000, with expanded offerings through partnerships [11] - The company aims to capitalize on differentiation through lending solutions and enhance capabilities for merchants [12][14] Management's Comments on Operating Environment and Future Outlook - The start of 2025 faced challenges due to macroeconomic headwinds and consumer purchasing power pressures [15] - A significant milestone was achieved with the closing of a transaction to purchase a 65.4% controlling stake in the company, which is expected to create value [15][16] - Management expressed excitement about future opportunities under new ownership, despite current challenges [24][25] Other Important Information - Free cash flow decreased by TRY 1,900,000,000 compared to the previous year, primarily due to a decrease in net cash from operating activities [23] - The company recorded a provision for license fees amounting to TRY 180,000,000 and higher bad debt provisions in 2024 [22] Q&A Session Summary - There was no Q&A session during the call, but the company encouraged participants to direct their questions to Investor Relations [25]