Bread Financial Holdings, Inc. offers cutting-edge payment and credit solutions to consumers and various industries throughout North America. Their services include comprehensive ...
Bread Financial Holdings, Inc. (NYSE: BFH), formerly Alliance Data Systems Corporation, is headquartered in Columbus, Ohio. The company has a rich history dating back to 1983, but rebranded as Bread Financial in March 2022 to reflect its focus on modern financial solutions. It operates primarily in the United States and ...Bread Financial Holdings, Inc. (NYSE: BFH), formerly Alliance Data Systems Corporation, is headquartered in Columbus, Ohio. The company has a rich history dating back to 1983, but rebranded as Bread Financial in March 2022 to reflect its focus on modern financial solutions. It operates primarily in the United States and is a leading provider of private label and co-branded credit card programs, managing over 130 such programs for well-known brands. Additionally, it supports around 500 small and medium-sized businesses through its Bread partnerships and issues Comenity-branded general purpose cash-back credit cards.
Beyond credit cards, Bread Financial offers flexible financing options through its Buy Now, Pay Later (BNPL) products, including installment loans and split-pay offerings. The company's digital platform provides a unified SDK and APIs that enable merchants and partners to integrate point-of-sale financing seamlessly into the retail experience. They also provide marketing, data, and analytics services to enhance customer engagement and loyalty.
Financially, Bread Financial has shown strong performance with a market cap of approximately $4.38 billion as of recent data. The company's revenue per share is $119.15, and it maintains a healthy net profit margin of 11.9%. It has a dividend yield of 0.8% and a payout ratio of 10.4%, indicating a commitment to returning value to shareholders while reinvesting in growth.
The company's leadership is headed by CEO Ralph J. Andretta, who joined in February 2020 and has over 30 years of industry experience. Under his guidance, Bread Financial has continued to innovate in the fintech space. The company employs around 6,000 people, categorized as 5,001-10,000 employees, and has a strong presence in the financial services sector.
With its comprehensive suite of products and services, Bread Financial aims to provide simple, personalized, and flexible financial solutions that meet the evolving needs of consumers and businesses alike. Its commitment to technology and customer-centricity positions it as a key player in the credit services industry.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$4.7B
-2.1%
-1.9%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$518.0M
+87.0%
-19.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+63.3%
+24.5%
-3.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+13.1%
+64.6%
-17.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+11.0%
+90.9%
-17.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$2.1B
+12.5%
+9.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+44.5%
+14.9%
+11.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
132.0%
-29.1%
-17.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.27x
-6.9%
—
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Good morning, and welcome to Bread Financial's Second Quarter 2026 Earnings Conference Call. My name is Shannon, and I will be coordinating your call today. It is now my pleasure to introduce Mr. Brian Vereb, Head of Investor Relations at Bread Financial. The floor is yours.
Brian Vereb : Thank you. A copy of the slides we will be reviewing and the earnings release can be found on the Investor Relations section of our website at breadfinancial.com. On the call today, we have Ralph Andretta, President and Chief Executive Officer; and Perry Beberman, Executive Vice President and Chief Financial Officer. Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are based on management's current expectations and assumptions and are subject to the risks and uncertainties described in the company's earnings release and other filings with the SEC. Also on today's call, our speakers will reference certain non-GAAP financial measures, which we believe will provide useful information for investors. Reconciliation of those measures to GAAP are included in our quarterly earnings materials posted on our Investor Relations website. With that, I would like to turn the call over to Ralph Andretta.
Ralph Andretta : Thank you, Brian, and good morning to everyone joining us today. We are pleased with the strong financial results Bread Financial delivered in the second quarter. We saw accelerating credit sales, continued loan and deposit growth, increased revenue and PPNR, and improving credit performance. These results demonstrate the strength of our business model and the benefits of our continued emphasis on responsible growth and operational excellence, positioning Bread Financial for sustained positive long-term performance. For the quarter, net income was $146 million, and tangible book value per common share increased 22% year-over-year to $63.66. Adjusted PPNR grew 11% year-over-year, supported by 7% revenue growth and ongoing disciplined expense management. Our strong execution across product mix and industry verticals is reflected in our second quarter credit sales growth of 11% year-over-year and 5% end-of-period loan growth. Our growth in the quarter was broad. Our existing co-brand partnerships, especially in travel and sporting goods, continue to see healthy growth. In addition, we continue to expand our reach to our Ford program launch, new home partnership with Raymour & Flanigan, Furniture First, and Ethan Allen, and our Bread Pay partnership with Vivint. These relationships reinforce the value we deliver through flexible payment solutions, disciplined underwriting, and a strong partner focus. End-of-period direct-to-consumer deposits grew 16% year-over-year to $9.4 billion. This marks our second strongest quarter of growth since the program began in 2019. Our direct-to-consumer deposits now comprise …
