Bread Financial shares rise over 6% as Q3 earnings beat expectations

NEW YORK - On Thursday, Bread Financial Holdings, Inc. (NYSE:BFH) reported third-quarter earnings that significantly exceeded analyst expectations.

The company’s shares were up 6.21% in pre-market trading following the results.

The financial services company posted adjusted earnings per share of $4.02 for the third quarter, substantially beating the analyst consensus of $2.16. Revenue came in at $971 million, slightly above the consensus estimate of $967.72 million but down 1% YoY. The quarter’s results included a favorable discrete tax item of $38 million and a $3 million post-tax impact from repurchased debt.

"Enhanced financial resilience through ongoing operational excellence initiatives, responsible growth, proactive credit risk management, and prudent capital allocation," contributed to the strong results, the company stated in its earnings release.

Net income reached $188 million for the quarter, a dramatic improvement from just $3 million in the same period last year. The company’s credit quality showed improvement with the delinquency rate decreasing to 6.0% from 6.4% in the third quarter of 2024, while the net loss rate fell to 7.4% from 7.8%.

"Our customers’ financial health remains resilient as evidenced by strong sales and payments and lower delinquencies and losses, despite ongoing inflationary concerns," said Ralph Andretta, President and CEO of Bread Financial.

The company also announced a $200 million increase to its share repurchase authorization, bringing the total amount available to $340 million. Additionally, Bread Financial declared a quarterly cash dividend of $0.23 per common share, representing a 10% increase from the prior quarter.

Credit sales for the quarter were $6.8 billion, an increase of 5% YoY, driven by new partner growth and increased general-purpose spending. The company maintained its full-year 2025 outlook, expecting average loans to be flat to slightly down and revenue to remain flat compared to 2024.

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