Bread Financial Reports Fourth Quarter and Full Year 2025 Financial Results

January 29, 2026 – Columbus, Ohio – Bread Financial® Holdings, Inc. (NYSE: BFH), a leading technology-forward financial services company in the United States, today released its much-anticipated fourth quarter and full year 2025 financial results. The report highlights the company’s performance across key financial metrics, including revenue, earnings, and operational highlights across its credit, lending, and payment services segments. This comprehensive analysis summarizes the results, contextual performance drivers, and management commentary from the earnings announcement and related disclosures.

Overview of Bread Financial’s Business Model

Bread Financial Holdings, Inc. operates as a diversified financial services company focused on providing innovative payment solutions, lending products, and savings tools to consumers and retail partners. The company’s portfolio includes:

• General purpose and co-brand credit cards
• Private label credit financing solutions
• Digital payment products (e.g., Bread Pay)
• Analytics, data insights, and loyalty tools for merchant clients

With a history dating back to its founding under the name Alliance Data Systems in 1996 and rebranding to Bread Financial in 2022, the company has expanded its capabilities in payment technologies and credit services. Bread Financial serves millions of consumers and partners across North America through its multi-channel offerings and tech-driven platforms.

Executive Leadership Commentary

According to the press release from Bread Financial, President and CEO Ralph Andretta and CFO Perry Beberman led today’s earnings release and hosted an investor conference call to discuss the results and insights into performance drivers. The call was webcast and archived on the company’s investor relations website.

While the official press release did not include detailed financial figures in the body text, additional financial services news outlets reported key metrics below that provide a comprehensive view of Bread Financial’s financial performance in Q4 2025 and the full year.

Fourth Quarter 2025 Financial Highlights

Multiple financial news sources reported Bread Financial’s Q4 2025 earnings as follows:

• Revenue: Approximately $975 million for the quarter, representing a year-over-year increase from about $926 million in Q4 2024.
• Net Income: $53 million for the fourth quarter, significantly higher than the $7 million reported in the same period last year.
• Earnings Per Share (EPS): $1.16 per share on a GAAP basis and $2.07 per share on an adjusted basis, reflecting strong operating performance excluding certain non-recurring items.

These results indicate continued profitable growth and effective cost management during the quarter. Adjusted earnings per share substantially beating expectations also points to operational efficiencies and favorable credit performance metrics compared to prior periods.

Revenue Growth and Drivers

Bread Financial’s revenue growth in the fourth quarter was driven by a combination of increased credit sales across its private label and co-brand portfolios, higher interest and fee income on loans, and continued expansion of its digital payment products. Analysts have noted that diversification of product mix and expanded partner programs likely contributed to revenue growth and stronger financial results.

Net Income and Earnings Per Share

Year-over-year net income improved significantly from Q4 2024 levels, demonstrating stronger profitability trends as the company scales its operations and manages credit risk. The adjusted EPS figure notably exceeded market forecasts, highlighting improved cost structure and revenue mix.

Full Year 2025 Financial Performance

For the full year ended December 31, 2025, Bread Financial delivered solid financial results reflective of stable revenue generation and profitability trends throughout the year. While the official press release did not provide full year figures in its text, historical metrics and available financial data indicate the following:

• Total Revenue (2025 Estimated): Bread Financial’s trailing annual revenue in 2025 was approximately $3.79 billion, roughly consistent with prior year levels.
• Credit Sales Growth: Credit sales across consumer and partner portfolios continued to show resilience, supported by expanding retail partnerships and stronger credit demand.
• Improved Net Loss Metrics: Net loss rates and delinquency levels improved compared to earlier in the year, underscoring favorable credit quality trends across the loan portfolio.

These full year trends suggest Bread Financial maintained steady revenue performance across its core business lines while effectively managing credit risk and costs throughout 2025.

Operational Initiatives and Strategic Progress

Bread Financial’s operational strategy in 2025 focused on:

• Expanding Payment Solutions: Continued development and distribution of the Bread Pay digital payment platform, which enables customers to access installment-based payment solutions during online and in-store checkout experiences.
• Strengthening Retail Partnerships: Enhanced co-brand credit card activations with major retail partners to drive higher transaction volume and deeper consumer engagement.
• Enhancing Credit Risk Management: Implementing improved credit risk analytics and portfolio management practices to maintain strong charge-off and delinquency performance.
• Technology Investments: Continued investments in its technology infrastructure to support digital product innovation and scalable back-end operations for payment products.

These strategic initiatives helped Bread Financial enhance customer value and grow its core segments while managing operational costs and credit risk.

Investor Conference Call and Webcast

Alongside the release of the earnings results, Bread Financial’s executive leadership hosted a conference call on January 29, 2026 at 8:30 a.m. ET to review detailed results with investors and analysts. The webcast included insights into key financial data and responses to analyst questions about future guidance and business priorities.

Analysts and investors were encouraged to register in advance for the webcast and Q&A session via the company’s investor relations site, where slides and a recorded replay were made available for later review.

Comparison to Prior Period Results

Looking at Bread Financial’s recent historical performance, the company has shown consistent progress in revenue and earnings generation throughout 2025:

• Q1 2025: Revenue of around $970 million.
• Q2 2025: Revenue of $929 million.
• Q3 2025: Revenue of $971 million with a notable earnings beat.
• Q4 2025: Revenue of approximately $975 million and strengthened profitability.

This trend reflects stable top-line performance quarter over quarter, with some quarter-to-quarter variability but a sustained high level of revenue relative to prior year periods.

Market and Industry Context

Bread Financial operates in a competitive financial services landscape, including rival credit card issuers, fintech payment solution providers, and traditional banks offering lending products. Analysts have noted that Bread Financial’s diversified portfolio of credit offerings and payment solutions positions it to benefit from broader trends in consumer spending and digital adoption.

Furthermore, consensus analyst estimates ahead of the Q4 2025 results had projected modest revenue growth and potential upside drivers from credit sales and fees, reflecting confidence in the company’s strategic direction.

Looking Ahead: Guidance and Future Expectations

While Bread Financial’s Q4 2025 and full year results provide a snapshot of recent performance, investors and market observers will be closely watching the company’s guidance for 2026. Key areas of focus include:

• Revenue Growth Expectations: Continued expansion of credit products and payment solutions to drive topline growth.
• Credit Quality Trends: Monitoring delinquency and charge-off rates as consumer credit dynamics evolve.
• Product Innovation: Launching new offerings and enhancing digital payment experiences to capture market share.
• Capital Allocation: Decisions around share repurchases, dividends, and strategic investments to balance shareholder returns and growth.

Given Bread Financial’s performance in 2025 and its strategic posturing, stakeholders expect continued emphasis on technological differentiation and portfolio diversification as major themes for the year ahead.

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