Bread Financial (NYSE:BFH) Announces Quarterly Earnings Results

Bread Financial (NYSE:BFH) announced its quarterly earnings data on Thursday. The company reported $3.55 earnings per share for the quarter, beating the consensus estimate of $2.74 by $0.81, FiscalAI reports. The firm 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 business’s quarterly revenue was up 6.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $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 Stock Performance

Shares of NYSE BFH traded down $0.21 during mid-day trading on Thursday, reaching $101.66. 124,778 shares of the company’s stock were exchanged, compared to its average volume of 756,228. The firm 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. Bread Financial has a 52 week low of $53.83 and a 52 week high of $109.91. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.15 and a quick ratio of 1.15. The firm has a 50-day moving average price of $96.66 and a two-hundred day moving average price of $83.81.

Analysts Set New Price Targets

A number of brokerages have commented on BFH. Wolfe Research reissued a “positive” rating on shares of Bread Financial in a research note on Wednesday, June 10th. Evercore restated an “outperform” rating and set a $116.00 price target on shares of Bread Financial in a research note on Monday, July 6th. Loop Capital assumed coverage on shares of Bread Financial in a report on Thursday, May 21st. They set a “buy” rating and a $104.00 price objective on the stock. Keefe, Bruyette & Woods reaffirmed an “outperform” rating on shares of Bread Financial in a research note on Wednesday, June 10th. Finally, Bank of America reiterated a “buy” rating and set a $108.00 price objective on shares of Bread Financial in a report on Wednesday, June 10th. Eight research 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. According to MarketBeat.com, Bread Financial presently has an average rating of “Hold” and an average target price of $108.25.

Insider Buying and Selling

In related news, Director John J. Fawcett purchased 698 shares of Bread Financial stock in a transaction that occurred on Thursday, May 21st. The stock was bought at an average price of $86.43 per share, for a total transaction of $60,328.14. Following the completion of the transaction, the director owned 11,000 shares in the company, valued at $950,730. This represents a 6.78% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Roger H. Ballou sold 9,687 shares of Bread Financial stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $90.32, for a total transaction of $874,929.84. Following the completion of the sale, the director directly owned 30,079 shares in the company, valued at approximately $2,716,735.28. This represents a 24.36% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Bread Financial

Institutional investors have recently bought and sold shares of the company. Kemnay Advisory Services Inc. purchased a new stake in Bread Financial in the fourth quarter worth $28,000. Northwestern Mutual Wealth Management Co. lifted its position in shares of Bread Financial by 141.2% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock valued at $31,000 after buying an additional 329 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Bread Financial by 127.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company’s stock valued at $41,000 after buying an additional 398 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its stake in shares of Bread Financial by 8,300.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company’s stock worth $47,000 after acquiring an additional 830 shares during the period. Finally, Quarry LP increased its holdings in Bread Financial by 1,509.1% in the 3rd quarter. Quarry LP now owns 885 shares of the company’s stock worth $49,000 after acquiring an additional 830 shares during the last quarter. Hedge funds and other institutional investors own 99.52% of the company’s stock.

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.