BFH
Bread Financial Holdings Inc (BFH) Q1 2026 Earnings Call Highlights: Strong Growth Amid ...
Article Summary
BUY- Bread Financial Holdings Inc. (NYSE: BFH) reported strong first-quarter results with a 7% year-over-year growth in credit sales driven by successful new partner launches and increased shopping activity, with Bread Financial Holdings launching new credit card relationships with Ford and Ethan Allen expanding its presence in automotive and home verticals.
- The company achieved net income of $181 million and 5% revenue growth, highlighting strong capital and cash flow generation as it retired 3.5 million shares of common stock enhancing shareholder value through ongoing stock repurchase activity.
- Credit metrics have improved for six consecutive quarters with a decrease in delinquency and net loss rates reflecting disciplined credit risk management, though the company provided conservative guidance for loan and revenue growth citing macroeconomic uncertainties.
- Non-interest income decreased year over year due to higher Retail Share Arrangements, impacting overall financial performance, and the company faces potential challenges from elevated oil prices which could affect consumer spending and sentiment.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | -0.7% | 25% | 0.0 ptsDeclining (-0.7%) - NOT a growth stock |
| EPS Growth Next 5Y ? | 3.3% | 25% | 10.0 ptsVery Weak (3.3%) - Minimal expectations |
| Target Price Upside ? | 2.0% | 20% | 20.0 ptsMinimal Upside (2.0%) - Target: $94.00 vs Current: $92.12 |
| Gross Margin % ? | — | 15% | 40.0 ptsNo Gross Margin Data |
| Drawdown from 52-Wk High ? | -7.1% | 15% | 20.0 ptsBarely a Dip (-7.1%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About BFH
- Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America.
- It offers credit card and other loans financing services, including risk management solutions, underwriting, and funding services for private label and co-brand credit card programs, as well as through Bread Pay partnerships.
- The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs, and installment loans and split-pay products; and provides marketing, and data and analytics services.
- In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience.
- Further, the company through Bread Pay, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products.
- Additionally, it offers retail and deposit products, primarily in the form of certificates of deposit and high-yield savings accounts, including traditional and Roth Individual Retirement Accounts.
- The company offers its products under the Bread, Bread Financial, Bread Cashback, Bread Rewards, Bread Pay, and Bread Savings brands.
- The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022.
- Bread Financial Holdings, Inc. was incorporated in 1995 and is headquartered in Columbus, Ohio.