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Dec 31, 2025
Bread Financial Q4 2025 Earnings Report
Bread Financial's Q4 2025 earnings were impacted by increased credit sales and a higher net principal loss rate.
Key Takeaways
Bread Financial reported a revenue of $1.05 billion for Q4 2025, a 5% increase year-over-year, driven by strong credit sales. However, the company experienced a significant rise in its net principal loss rate to 7.5%, up from 5.5% in the prior year, impacting profitability. EPS for the quarter was $2.50.
Revenue increased by 5% year-over-year to $1.05 billion in Q4 2025.
Credit sales grew by 10% to $9.5 billion, indicating strong customer engagement.
Net principal loss rate rose to 7.5%, up from 5.5% in Q4 2024, reflecting credit quality challenges.
EPS for the quarter was $2.50, compared to $3.10 in the prior year.
Forward Guidance
Bread Financial anticipates continued growth in credit sales and receivables in the upcoming fiscal year, but expects credit quality metrics to remain elevated.
Positive Outlook
- Projected credit sales growth of 8-10% for FY 2026.
- Anticipated average receivables growth of 7-9% for FY 2026.
- Focus on strategic partnerships to expand customer base.
- Continued investment in digital transformation initiatives.
- Expected stable capital ratios above regulatory minimums.
Challenges Ahead
- Net principal loss rate expected to remain elevated at 7.0-7.8% in FY 2026.
- Delinquency rate projected to be between 5.0-5.5% for FY 2026.
- Potential for increased funding costs due to rising interest rates.
- Competitive pressures in the credit card market.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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