Bread Financial Holdings, Inc.
- Open
- 103.00
- Day high
- 104.73
- Day low
- 100.77
- Prev close
- 104.47
- Volume
- 28K
- Mkt cap
- $4.0B
- P/E (TTM)
- 7.9
- EPS (TTM)
- $13.01
- P/B
- 1.2
- P/S
- 0.8
- Yield
- 0.89%
- Per share
- $0.92
- ▼Insiders net selling -$297K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
Bread Financial Holdings, Inc. (BFH) is a Financial Services company listed on NYSE. The stock is up 60% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Bread Financial Holdings, Inc. (BFH) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 9 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
BFH earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 23, 2026 | $2.79 | $3.55 | +27.1% | $993M | +3.6% |
| Apr 23, 2026 | $3.03 | $4.18 | +37.9% | $1.0B | +2.6% |
| Jan 29, 2026 | $0.40 | $2.07 | +413.6% | $975M | -0.4% |
| Oct 23, 2025 | $2.10 | $4.02 | +91.5% | $971M | +0.4% |
| Jul 24, 2025 | $1.86 | $3.14 | +68.5% | $926M | -4.5% |
| Apr 24, 2025 | $2.09 | $2.86 | +37.1% | $970M | +2.1% |
| Jan 30, 2025 | $0.33 | $0.41 | +24.2% | $925M | -4.8% |
| Oct 24, 2024 | $1.94 | $1.84 | -5.2% | $983M | +0.3% |
| Jul 25, 2024 | $1.77 | $2.66 | +50.3% | $939M | +1.9% |
| Apr 25, 2024 | $3.02 | $2.70 | -10.6% | $991M | -3.0% |
| Jan 25, 2024 | $-0.88 | $0.90 | +202.3% | $1.0B | +0.1% |
| Oct 26, 2023 | $2.32 | $3.46 | +49.1% | $1.0B | +1.0% |
BFH insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 29, 2026 | Lakhwara Pranitidirector | Sell | 2,802 | $106.12 |
| Jul 17, 2026 | Gerspach John Cdirector | Grant | 730 | — |
| Jun 17, 2026 | St Clair Joycedirector | Grant | 1,638 | — |
| Jun 17, 2026 | Tucker Laurie Annedirector | Grant | 1,638 | — |
| Jun 17, 2026 | Gerspach John Cdirector | Grant | 1,638 | — |
| Jun 17, 2026 | Natarajan Rajeshdirector | Grant | 1,638 | — |
| Jun 17, 2026 | THERIAULT TIMOTHY Jdirector | Grant | 1,638 | — |
| Jun 17, 2026 | TURNEY SHAREN Jdirector | Grant | 1,638 | — |
| Jun 17, 2026 | Lakhwara Pranitidirector | Grant | 1,638 | — |
| Jun 17, 2026 | Fawcett John J.director | Grant | 1,638 | — |
| Jun 1, 2026 | Andretta Ralph Jdirector, officer: President and CEO | Sell | 1,500 | $88.23 |
| Jun 1, 2026 | Andretta Ralph Jdirector, officer: President and CEO | Sell | 12,500 | $89.17 |
| Jun 1, 2026 | Andretta Ralph Jdirector, officer: President and CEO | Sell | 1,000 | $89.57 |
| May 22, 2026 | Fawcett John J.director | Buy | 698 | $86.43 |
| Apr 27, 2026 | BALLOU ROGER Hdirector | Sell | 9,687 | $90.32 |
Source: BFH SEC Form 4 filings, latest Jul 29, 2026. For informational purposes only — not investment advice.
See the full BFH insider & 13F page →Bread Financial Holdings, Inc. company profile
Overview
Bread Financial Holdings, Inc. (NYSE:BFH) is a Columbus, Ohio-based financial services company that was founded in 1996 and originally operated as Alliance Data Systems Corporation before rebranding in March 2022. The company has evolved from a traditional data services provider into a technology-forward payment and lending solutions company specializing in private label and co-brand credit card programs. Through its transformation, Bread Financial has positioned itself as a key partner to retailers and merchants, providing comprehensive credit services that help drive customer loyalty and sales for approximately 130 private label and co-brand credit card programs across North America.
Business
Bread Financial operates in the consumer credit services industry, functioning as a specialized financial services provider that creates and manages credit card programs for retailers and merchants. The company's core business revolves around private label and co-brand credit card programs, which are store-branded credit cards that can only be used at specific retailers (private label) or can be used anywhere but offer enhanced rewards at the partner retailer (co-brand). The company operates through several key business segments. The Credit Services segment represents the largest portion of revenue, encompassing the origination, underwriting, and servicing of credit card loans for retail partners. This includes managing approximately 130 private label and co-brand credit card programs for major retailers. The Bread Pay platform offers buy-now-pay-later (BNPL) solutions and installment financing to over 500 small and medium-sized business merchants, providing point-of-sale financing options that allow consumers to split purchases into manageable payments. Additionally, the company operates Bread Savings, a direct-to-consumer deposit platform that has grown to $7.9 billion in deposits, and offers Comenity-branded general purpose credit cards that function like traditional credit cards but are issued directly by Bread Financial. The company also provides ancillary services including risk management solutions, account origination services, marketing support, and data analytics services to its retail partners. Through its unified software development kit and application programming interfaces, Bread Financial enables merchants to integrate various digital payment products into their e-commerce platforms, making credit and financing options available earlier in the customer shopping experience.
Revenue model
Bread Financial generates revenue through multiple streams within its credit services ecosystem. The primary revenue source comes from net interest income earned on the credit card loans it originates and holds on its balance sheet, with the company earning the spread between what it pays for funding and what it charges borrowers in interest. In 2024, the company reported total revenue of approximately $4.8 billion, with the majority derived from finance charges on outstanding loan balances. The company also earns interchange fees when cardholders use their credit cards for purchases, receiving a small percentage of each transaction from merchants. Late fees and other penalty charges represent another significant revenue stream, though this has faced regulatory scrutiny from the Consumer Financial Protection Bureau (CFPB) with proposed rules that could substantially reduce late fee income. Service fees are collected from retail partners for account management, marketing services, and technology platform access. The company's customers are primarily retail partners who pay for credit program management services and individual consumers who use the credit products and pay interest, fees, and charges. Bread Financial also generates revenue from its direct-to-consumer deposit platform by investing deposited funds at higher yields than the interest paid to depositors. Several factors significantly impact the company's margins and profitability. Interest rate environments affect both funding costs and the yields earned on loans, with rising rates generally benefiting net interest margins. Credit loss rates directly impact profitability, as higher default rates reduce net income - the company targets a through-the-cycle loss rate of around 6% but has experienced elevated losses during economic stress periods. Regulatory changes, particularly potential CFPB late fee restrictions, could reduce fee income substantially. Competition from other credit providers and alternative payment methods like traditional BNPL providers can pressure pricing and market share. Consumer spending patterns and economic conditions affect credit sales volumes and loss rates, with discretionary spending particularly sensitive to economic uncertainty.
Competitive moat
Bread Financial's competitive moat is moderate but faces several structural challenges. The company's primary competitive advantage lies in its established relationships with major retail partners, with 85% of its loan portfolio secured through 2026 and nine of its top ten programs secured through 2028. These long-term contracts provide revenue visibility and create switching costs for retail partners who would need to migrate customer data and integrate new systems to change providers. The company has also built specialized expertise in retail credit and possesses valuable consumer data that enables sophisticated risk management and targeted marketing. Its technology platform and APIs provide integration capabilities that smaller competitors may lack, and the scale of its operations allows for cost efficiencies in underwriting, servicing, and compliance. However, Bread Financial's moat faces significant competitive pressures. The private label credit card industry is mature and highly competitive, with established players like Synchrony Financial and Comenity Bank (now Bread's former name) competing for the same retail partnerships. Alternative payment methods including traditional buy-now-pay-later providers like Affirm, Klarna, and PayPal are increasingly popular with both merchants and consumers, potentially reducing demand for traditional store credit cards. Regulatory risks represent a substantial threat to the moat, particularly proposed CFPB rules that could eliminate or significantly reduce late fee income, which represents a meaningful portion of revenue. The company also faces disintermediation risk as large retailers might choose to bring credit operations in-house or partner with technology companies offering more modern solutions. Additionally, the business model is inherently cyclical and sensitive to economic conditions, with credit losses spiking during recessions and potentially eroding profitability during extended economic downturns.
Risks & safety
Bread Financial presents a moderate margin of safety with mixed financial health indicators that require careful monitoring. • Liquidity and Cash Position: Strong cash position with $4.2 billion in cash and short-term investments as of Q1 2025, providing substantial liquidity buffer. Positive operating cash flow of $393 million in Q1 2025 demonstrates ongoing cash generation capability. • Debt and Solvency: Improved capital structure with debt-to-equity ratio reduced significantly. Company has repurchased 97% of outstanding convertible notes and reduced parent-level debt by 50% since Q4 2021. CET1 capital ratio of 12.4% exceeds regulatory minimums, indicating adequate capital cushion for a financial services company. • Valuation Metrics: Attractive valuation with P/E ratio of 4.4x and price-to-book ratio of 0.8x, suggesting potential undervaluation. However, negative EV/EBITDA ratio indicates some financial stress periods. • Credit Risk Exposure: Net loss rate of 8.0-8.2% projected for 2025 remains elevated above historical norms of 6%, indicating ongoing credit stress. Company maintains conservative loan loss reserves but faces potential deterioration during economic downturns. • Regulatory Risk: Significant exposure to potential CFPB late fee rule changes that could materially impact revenue, though recent court rulings have been favorable. • Operational Performance: Revenue pressures with declining trends in recent quarters, though management expects stabilization in 2025.
Recent development
Over the past few years, Bread Financial has undergone significant strategic transformation and operational improvements. The company completed a major rebranding initiative in March 2022, changing from Alliance Data Systems Corporation to Bread Financial Holdings to better reflect its focus on financial services and digital payment solutions. Strategic partnerships and business development have been key growth drivers, with the company adding several high-profile retail partners including Hard Rock International, HP, Saks Fifth Avenue, Dell Technologies, and the New York Yankees. The company has also expanded its relationship with existing partners like AAA and Academy Sports, while securing long-term contract renewals that provide revenue visibility through 2028 for most major programs. The company has made substantial technology investments, spending over $125 million on technology modernization and digital advancement initiatives. This includes developing a unified software development kit and robust API suite that allows merchants to integrate financing options earlier in the customer shopping experience. The Bread Pay platform has been expanded to serve over 500 small and medium-sized business merchants with buy-now-pay-later and installment financing solutions. Balance sheet optimization has been a major focus, with management successfully reducing parent-level debt by over 50% since Q4 2021 and repurchasing 97% of outstanding convertible notes. The company has also grown its direct-to-consumer deposit platform (Bread Savings) to $7.9 billion, providing a more stable and cost-effective funding source. In response to regulatory challenges, particularly the proposed CFPB late fee rule, the company has proactively implemented mitigation strategies including APR increases, statement fees, and contract restructuring with brand partners. Management has also maintained a disciplined approach to credit underwriting, proactively tightening standards during periods of economic uncertainty to manage loss rates.
BFH company profile · for informational purposes only — not investment advice.
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