Bread Financial Posts Strong 2025 Results, Raises Shareholder Returns

Bread Financial Holdings ( (BFH) ) has provided an update.

On January 29, 2026, Bread Financial reported fourth-quarter and full-year 2025 results showing solid profitability and capital return alongside a stronger balance sheet. For 2025, the company generated $518 million in net income available to common stockholders, nearly doubled earnings per diluted share year over year, and lifted tangible book value per common share by 23% to $57.57, supported by higher net interest income, improved credit performance and lower credit-loss provisions. Management highlighted a resilient consumer backdrop, modest 3% growth in credit sales and stable partner relationships, with all top 10 programs renewed into at least 2028, while direct-to-consumer deposits rose 11% to $8.5 billion, now nearly half of total funding. The company also optimized its capital structure by retiring high-cost debt, issuing subordinated debt and preferred equity, and repurchasing $350 million of common stock in 2025, actions that contributed to credit rating upgrades and an improved outlook from major agencies. In conjunction with the earnings release, the board declared quarterly cash dividends payable on March 16, 2026 of $26.35 per share on its Series A preferred stock and $0.23 per share on common stock to shareholders of record on February 27, 2026, signaling continued commitment to shareholder returns while maintaining a common equity Tier 1 capital ratio of 13.0%.

The most recent analyst rating on (BFH) stock is a Sell with a $62.00 price target. To see the full list of analyst forecasts on Bread Financial Holdings stock, see the BFH Stock Forecast page.

Spark’s Take on BFH Stock

According to Spark, TipRanks’ AI Analyst, BFH is a Outperform.

BFH scores well on strong cash generation and improving profitability, supported by constructive earnings-call signals (buyback, dividend raise, ratings upgrade). Valuation is also favorable with a low P/E. The main risks are contracting revenue/more volatile margins and an overbought technical setup that could pressure the stock in the near term.

To see Spark’s full report on BFH stock, click here.

More about Bread Financial Holdings

Bread Financial Holdings, Inc. (NYSE: BFH) is a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, including private-label and co-branded credit products, with a focus on partnering with brands across sectors such as travel, entertainment, technology and home to support consumer spending and loyalty programs.

Average Trading Volume: 811,503

Technical Sentiment Signal: Buy

Current Market Cap: $3.17B

For an in-depth examination of BFH stock, go to TipRanks’ Overview page.