Bread Financial Holdings Inc ( (BFH) ) has released its Q2 earnings. Here is a breakdown of the information Bread Financial Holdings Inc presented to its investors.
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Bread Financial Holdings Inc., a tech-forward financial services company, offers personalized payment, lending, and saving solutions primarily in the U.S. financial sector. The company has recently released its second-quarter earnings report for 2025, highlighting a net income of $139 million and an increase in tangible book value per common share by 7% to $52.21. Despite a slight decrease in revenue by 1% compared to the previous year, the company managed to increase income from continuing operations by 4% due to lower credit loss provisions and taxes.
Key financial metrics for the quarter include a 4% growth in credit sales, a decrease in average loans by 1%, and a reduction in the net loss rate to 7.9% from 8.6% in the previous year. The company successfully completed a $150 million tender offer for senior notes and repurchased 1.1 million shares, completing its board-authorized share repurchase program. The common equity tier 1 capital ratio improved sequentially to 13.0%, reflecting the company’s focus on balance sheet optimization.
The company also announced a multi-year extension of its partnership with Caesars Entertainment and launched a new Caesars Rewards® Prestige Visa Signature® credit card. This strategic move aims to enhance cardholder engagement and drive sales. Additionally, Bread Financial reported a 12% increase in direct-to-consumer deposits, representing 45% of total funding, which aligns with their goal of exceeding 50%.
Looking ahead, Bread Financial remains optimistic about its ability to achieve solid financial results for the year 2025. The company anticipates flat to slightly down average loan growth and relatively flat total revenue compared to the previous year. Despite potential economic uncertainties, the company is confident in delivering strong long-term returns through disciplined credit risk management and operational excellence.