Bread Financial Holdings Stock Earnings Reports

Bread Financial reported strong Q3 2025 results with adjusted net income of $191 million and adjusted EPS of $4.02. Tangible book value per share rose 19% year-over-year to $56.36 and return on average tangible common equity was 28.6%. Credit sales grew 5% YoY, delinquency and net loss rates improved (3Q net loss rate 7.4%), and management expects to finish the year at the low end of its net loss guidance (7.8%–7.9%). Revenue was roughly flat (down 1% YoY) as higher payment rates, lower billed late fees and product mix shifts offset pricing actions and lower funding costs. Adjusted noninterest expense decreased slightly year-over-year despite tech investments, and adjusted pretax preprovision earnings were roughly flat. Capital actions: CET1 of 14.0% (top of target range) supported a $200M repurchase program (plus an additional $200M authorization announced) and a 10% increase to the quarterly dividend; Moody’s upgraded the rating with a positive outlook. Liquidity and funding remain strong (direct-to-consumer deposits $8.2B, 77% of funding; total liquid assets & undrawn facilities $7.8B). Management emphasized disciplined, profitability-focused underwriting, continued investment in tech/AI to drive operating leverage, and a robust pipeline for partner growth (notably expansion in the home vertical). Outlook unchanged: average loans flat to slightly down, revenue roughly flat ex-portfolio gains, continued expectation of positive operating leverage (ex-portfolio gains & repurchase-debt impacts).