Bread Financial (NYSE:BFH) Releases Quarterly Earnings Results, Beats Expectations By $0.81 EPS

Bread Financial (NYSE:BFH) posted its quarterly earnings results on Thursday. The company reported $3.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.74 by $0.81, FiscalAI reports. The company had revenue of $993.00 million for the quarter, compared to analyst estimates of $959.32 million. Bread Financial had a net margin of 11.90% and a return on equity of 18.79%. The company’s quarterly revenue was up 6.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.15 earnings per share.

Here are the key takeaways from Bread Financial’s conference call:

• Bread Financial said second-quarter results were strong, with net income of $146 million, 11% credit sales growth, 5% loan growth, and 22% year-over-year growth in tangible book value per share.
• Credit quality improved materially, as the delinquency rate fell to 5.25% and the net loss rate declined to 6.98%; management also raised its full-year net loss guidance to 7.0%–7.1%.
• The company’s direct-to-consumer deposit franchise continued to scale, with deposits up 16% year over year to $9.4 billion and now representing 50% of the funding mix, which management called an important milestone.
• Management increased its 2026 loan growth and revenue outlook to low-to-mid single-digit growth and expects positive operating leverage, though it also warned that expenses will rise in the back half of the year as growth and technology investments ramp.
• Bread Financial continued to return capital aggressively, issuing preferred stock and repurchasing 2.8 million shares in the quarter, while ending with a strong CET1 ratio of 12.9% and ample liquidity.

Bread Financial Price Performance

Shares of BFH traded down $0.21 during midday trading on Thursday, reaching $101.66. The stock had a trading volume of 124,778 shares, compared to its average volume of 756,228. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.25. The company has a market capitalization of $4.11 billion, a price-to-earnings ratio of 8.33, a price-to-earnings-growth ratio of 0.90 and a beta of 1.10. The company’s 50-day moving average is $96.66 and its 200 day moving average is $83.81. Bread Financial has a 12-month low of $53.83 and a 12-month high of $109.91.

Insider Activity at Bread Financial

In other Bread Financial news, CEO Ralph J. Andretta sold 15,000 shares of the company’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $89.10, for a total value of $1,336,500.00. Following the completion of the sale, the chief executive officer owned 582,241 shares of the company’s stock, valued at $51,877,673.10. This represents a 2.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Roger H. Ballou sold 9,687 shares of the stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $90.32, for a total transaction of $874,929.84. Following the transaction, the director owned 30,079 shares in the company, valued at $2,716,735.28. The trade was a 24.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Bread Financial

Hedge funds have recently made changes to their positions in the business. Daiwa Securities Group Inc. raised its position in shares of Bread Financial by 5.6% in the 4th quarter. Daiwa Securities Group Inc. now owns 3,535 shares of the company’s stock worth $262,000 after acquiring an additional 187 shares in the last quarter. Vista Investment Management boosted its position in shares of Bread Financial by 1.1% during the fourth quarter. Vista Investment Management now owns 22,858 shares of the company’s stock valued at $1,692,000 after purchasing an additional 241 shares in the last quarter. Corient Private Wealth LLC grew its stake in Bread Financial by 6.6% in the fourth quarter. Corient Private Wealth LLC now owns 4,206 shares of the company’s stock worth $311,000 after purchasing an additional 259 shares during the period. Northwestern Mutual Wealth Management Co. grew its stake in Bread Financial by 141.2% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock worth $31,000 after purchasing an additional 329 shares during the period. Finally, Envestnet Asset Management Inc. raised its holdings in Bread Financial by 3.1% in the third quarter. Envestnet Asset Management Inc. now owns 11,433 shares of the company’s stock worth $638,000 after purchasing an additional 348 shares in the last quarter. 99.52% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

BFH has been the subject of a number of recent research reports. The Goldman Sachs Group lifted their price objective on shares of Bread Financial from $94.00 to $108.00 and gave the company a “neutral” rating in a research note on Tuesday, July 7th. Evercore reaffirmed an “outperform” rating and issued a $116.00 price target on shares of Bread Financial in a report on Monday, July 6th. BTIG Research lifted their price target on Bread Financial from $105.00 to $132.00 and gave the company a “buy” rating in a research report on Tuesday, June 30th. Bank of America reiterated a “buy” rating and set a $108.00 price objective on shares of Bread Financial in a research note on Wednesday, June 10th. Finally, Barclays raised Bread Financial from an “underweight” rating to an “equal weight” rating and increased their price objective for the stock from $70.00 to $104.00 in a report on Tuesday, July 7th. Eight investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Bread Financial currently has an average rating of “Hold” and a consensus target price of $108.25.

About Bread Financial

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.