Bread Financial Holdings Inc (BFH)
NYSE:BFH
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Bread Financial Holdings
(NYSE:BFH)
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Rating:75Outperform
Price Target:
$106.00
▲(17.02% Upside)
Action:Reiterated
Date:06/10/26
BFH scores well due to strong technical momentum and an attractive low P/E, supported by a TTM financial recovery and solid cash generation. The score is held back by cyclicality/volatility in results, still-meaningful leverage for a credit lender, and earnings-call guidance that includes near-term noninterest income pressure and a still-elevated (though improving) loss-rate outlook.
Positive Factors
Improving credit metrics
Consistent improvement in delinquencies, net loss and reserve coverage signals durable portfolio healing. Lower credit volatility reduces required provisioning, supports more predictable earnings, enables quieter capital deployment and makes underwriting expansion with partners less risky over the next 2–6 months.
Negative Factors
Elevated credit losses
A persistently high net loss run-rate is a structural margin headwind for a private-label lender. Even as trends improve, sustained elevated losses compress net returns on receivables, require larger reserves, and limit capital available for growth or shareholder returns if macro stress returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving credit metrics
Consistent improvement in delinquencies, net loss and reserve coverage signals durable portfolio healing. Lower credit volatility reduces required provisioning, supports more predictable earnings, enables quieter capital deployment and makes underwriting expansion with partners less risky over the next 2–6 months.
Read all positive factors
Bread Financial Holdings (BFH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.11B
Dividend Yield1.12%
Average Volume (3M)574.47K
Price to Earnings (P/E)7.8
Beta (1Y)1.35
Revenue Growth-0.65%
EPS Growth118.03%
CountryUS
Employees6,000
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)12.38
Shares Outstanding40,407,066
10 Day Avg. Volume704,548
30 Day Avg. Volume574,468
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.00
Price to Sales (P/S)0.71
P/FCF Ratio1.59
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit1.27
Enterprise Value/Ebitda5.34
Forecast
1Y Price Target
$99.30Price Target Upside9.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)11.24
Revenue Forecast (FY)$3.95B
Bread Financial Holdings Business Overview & Revenue Model
Company Description
Bread Financial Holdings, Inc. offers cutting-edge payment and credit solutions to consumers and various industries throughout North America. Their services include comprehensive financing for credit cards and other loans, which involves managing ...
How the Company Makes Money
Bread Financial primarily makes money by originating and servicing credit card receivables through private label and co-brand card programs with partner merchants/brands. Key revenue streams typically include: (1) Net interest income: interest cha...
Bread Financial Holdings Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive picture: solid top-line momentum (7% credit sales growth), an inflection to loan growth, improving credit metrics, stronger margins and robust capital and liquidity positions. Offsetting items include pressure on noninterest income from higher retailer share arrangements (with an expected ~$40 million Q2 headwind), reduced billed late fees as delinquencies improve, ongoing investment-driven expense increases, and macroeconomic uncertainty (notably fuel prices and low consumer sentiment). On balance the operational progress, capital generation and improving credit trends outweigh the near-term income headwinds and cautious guidance.Positive Updates
Revenue and Profitability
Q1 revenue of $1.0+ billion increased $48 million, or 5% year over year; net income of $181 million and diluted EPS of $4.15.
Negative Updates
Noninterest Income Pressure from Retailer Share Arrangements
Noninterest income declined $13 million YoY driven by higher retailer share arrangements (higher credit sales-related partner payments and increased profit share), and management expects RSA dynamics to pressure noninterest income by up to $40 million in Q2 vs Q1.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Profitability
Q1 revenue of $1.0+ billion increased $48 million, or 5% year over year; net income of $181 million and diluted EPS of $4.15.
Read all positive updates
Company Guidance
Management reaffirmed an unchanged 2026 outlook: average credit card and other loan growth is expected to be up low single digits versus 2025 (after Q1 average loans of $18.3B and ending loans of $18.1B, with ending loans expected to finish higher than “low singles”), total revenue growth is anticipated to be up low single digits (Q1 revenue rose $48M, or 5% YoY), and net interest margin is expected to be higher than 2025 though incremental pricing benefits will slow as repricing completes; management expects to reach the low end of a 7.2%–7.4% net loss rate target for 2026, a normalized effective tax rate of 25%–27%, and to deliver positive operating leverage (excluding pretax impacts from debt repurchases). They warned Q2 noninterest income may be pressured by up to $40M versus Q1, estimated Q2 total expenses just under $500M, and reiterated strong capital and liquidity positions (Q1 CET1 13.3%, total loss-absorption capacity 25.5% of loans), with future share repurchases contingent on capital generation, potential preferred issuances, and remaining $690M repurchase authorization.Bread Financial Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
61
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.71B | 4.70B | 4.80B | 5.17B | 4.37B | 3.27B |
| Gross Profit | 3.02B | 2.98B | 2.44B | 3.07B | 2.28B | 2.06B |
| EBITDA | 719.00M | 694.00M | 471.00M | 1.08B | 413.00M | 1.17B |
| Net Income | 561.00M | 518.00M | 277.00M | 718.00M | 223.00M | 801.00M |
Balance Sheet | ||||||
| Total Assets | 22.31B | 22.66B | 22.89B | 23.14B | 25.41B | 21.75B |
| Cash, Cash Equivalents and Short-Term Investments | 3.64B | 3.77B | 3.85B | 3.76B | 3.99B | 3.22B |
| Total Debt | 3.88B | 4.39B | 5.68B | 5.44B | 8.13B | 7.58B |
| Total Liabilities | 18.98B | 19.34B | 19.84B | 20.22B | 23.14B | 19.66B |
| Stockholders Equity | 3.33B | 3.33B | 3.05B | 2.92B | 2.27B | 2.09B |
Cash Flow | ||||||
| Free Cash Flow | 2.18B | 2.09B | 1.86B | 1.99B | 1.78B | 1.46B |
| Operating Cash Flow | 2.19B | 2.09B | 1.86B | 1.99B | 1.85B | 1.54B |
| Investing Cash Flow | -1.75B | -1.37B | -1.17B | 788.00M | -5.11B | -1.69B |
| Financing Cash Flow | -720.00M | -807.00M | -592.00M | -3.09B | 3.27B | 608.00M |
Bread Financial Holdings Technical Analysis
Positive
90.58
Price Trends
86.17
Positive
79.60
Positive
72.65
Positive
Market Momentum
3.05
Negative
74.75
Negative
88.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFH, the sentiment is Positive. The current price of 90.58 is above the 20-day moving average (MA) of 89.67, above the 50-day MA of 86.17, and above the 200-day MA of 72.65, indicating a bullish trend. The MACD of 3.05 indicates Negative momentum. The RSI at 74.75 is Negative, neither overbought nor oversold. The STOCH value of 88.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BFH.
Bread Financial Holdings Risk Analysis
Bread Financial Holdings disclosed 60 risk factors in its most recent earnings report. Bread Financial Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bread Financial Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $4.33B | 29.34 | 90.93% | ― | 46.14% | 38.52% | |
75 Outperform | $4.11B | 7.75 | 17.08% | 1.12% | -0.65% | 118.03% | |
74 Outperform | $4.72B | 14.44 | 24.88% | ― | 17.46% | 46.61% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $2.10B | 11.99 | 11.92% | ― | 17.38% | 237.98% | |
62 Neutral | $2.29B | 5.23 | 47.95% | 10.18% | -2.34% | -49.33% | |
| ― | $2.33B | -1.93 | -2.37% | ― | ― | ― |
* Financial Sector Average
BFH
Bread Financial Holdings
101.63
48.73
92.12%
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Bread Financial Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Bread Financial Reports May 2026 Loan Growth, Credit Improvement
Positive
Jun 10, 2026
Bread Financial reported a May 2026 performance update on June 10, 2026, highlighting modest year-over-year loan growth and improving credit metrics. Average credit card and other loans rose 2.6% to $18.2 billion, while end-of-period loans reached...
Executive/Board ChangesShareholder Meetings
Bread Financial Holds 2026 Virtual Annual Stockholders Meeting
Positive
May 22, 2026
Bread Financial Holdings, Inc. held its 2026 annual meeting of stockholders on May 19, 2026, in a virtual-only format, with approximately 91% of outstanding shares represented, and stockholders elected nine directors to serve until the 2027 annual...
Business Operations and StrategyFinancial Disclosures
Bread Financial Reports Improving Credit Metrics and Loan Growth
Positive
May 15, 2026
Bread Financial Holdings on May 15, 2026 reported that for the month ended April 30, 2026, end-of-period credit card and other loans rose to $18.1 billion, with average loans up 2.0% year over year after having declined 1.6% a year earlier. Net pr...
Private Placements and FinancingRegulatory Filings and Compliance
Bread Financial Issues New Series B Preferred Shares
Positive
May 12, 2026
On May 11, 2026, Bread Financial Holdings filed a Certificate of Designations in Delaware, effective May 12, 2026, establishing the terms of its 8.875% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, with a $1,000 per share li...
Business Operations and StrategyPrivate Placements and Financing
Bread Financial Prices Series B Preferred Stock Offering
Positive
May 6, 2026
On May 5, 2026, Bread Financial Holdings priced an underwritten public offering of 4.8 million depositary shares, each representing a 1/40th interest in its 8.875% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, with a $25 liq...
Business Operations and StrategyPrivate Placements and Financing
Bread Financial Launches Preferred Depositary Share Public Offering
Neutral
May 5, 2026
On May 5, 2026, Bread Financial Holdings, Inc. announced the launch of an underwritten public offering of depositary shares, each representing a 1/40th interest in its Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, with a $25...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Bread Financial Highlights Strong Q1 Results and Capital Returns
Positive
Apr 23, 2026
On April 23, 2026, Bread Financial reported strong first-quarter 2026 results, highlighted by a return to loan growth and improving credit quality, with net income rising to $181 million, revenue up 5% year over year and end-of-period loans increa...
Financial Disclosures
Bread Financial Reports Stable Loan Growth, Improving Delinquencies
Positive
Apr 23, 2026
On April 23, 2026, Bread Financial reported operating metrics for the month and quarter ended March 31, 2026, highlighting modest growth in its lending portfolio and trends in credit performance. Average credit card and other loans stood at $18.04...
Business Operations and StrategyFinancial Disclosures
Bread Financial Highlights Improving Credit Metrics and Loan Growth
Positive
Mar 11, 2026
On March 11, 2026, Bread Financial Holdings reported a modest 1% year-over-year increase in average credit card and other loans to $18.3 billion for the month ended February 28, 2026, with end-of-period loans at $18.1 billion. Net principal losses...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.