A Look At Bread Financial (BFH) Valuation After Capped Call Unwind And Planned Share Retirement
Bread Financial Holdings (BFH) is undergoing significant balance sheet changes, including unwinding capped call transactions to retire 1.5 million shares and a recent $160 million share buyback. Despite a 90-day return of 17.3%, its current trading price of US$73.16 is seen as a 14% discount to the average analyst price target, but a 39% discount according to one intrinsic value estimate of $50.00, which suggests it might be overvalued by 46.3%. However, its P/E ratio of 6.1x is significantly lower than the industry average, presenting a mixed picture for investors.
Bread Financial Announces Capped Call Unwind Share Retirement
Bread Financial Holdings (BFH) announced on February 17, 2026, the termination of capped call transactions related to its 4.25% convertible senior notes due 2028. This unwind is expected to result in the delivery and retirement of approximately 1.5 million shares, based on a hypothetical settlement at the February 17, 2026, volume-weighted average price, without impacting existing share repurchase authorizations. Spark, TipRanks' AI Analyst, rates BFH as "Outperform" due to its improving financial performance, strong cash generation, and favorable valuation.
Bread Financial Launches Capped Call Unwind; Hypothetical 1.5M Shares to Be Returned
Bread Financial has initiated Capped Call Unwind Agreements to terminate previous capped call transactions related to its 4.25% Convertible Senior Notes due 2028, which had no outstanding balance. The unwinds are expected to be completed by the end of February 2026, and based on a hypothetical calculation from Feb. 17, 2026, the company could receive and retire approximately 1.5 million shares. Option counterparties may adjust their hedges, potentially involving market purchases or sales of Bread Financial stock.
Credit Costs Have Been a Headwind for Bread, but Credit Trends Point to Stabilization
The article discusses how credit costs have negatively impacted Bread Financial Holdings (BFH), though credit trends suggest stabilization might be on the horizon. A primary risk for Bread is its high revenue concentration in retail credit cards, which makes it susceptible to losing major partners. This issue is highlighted by past instances where partners like Wayfair, Meijer, and BJ's Wholesale Club switched to other financial institutions.
BREAD FINANCIAL HOLDINGS, INC. SEC 10-K Report
Bread Financial Holdings, Inc. released its 2025 Form 10-K report detailing strong financial performance, including a significant increase in net income and diluted share earnings. The company focused on optimizing its capital structure through debt issuance and repurchases, while expanding its product offerings and partner base. Despite robust growth, Bread Financial faces challenges such as macroeconomic risks, intense competition, and regulatory complexities.
Zacks Research Expects Stronger Earnings for Bread Financial
Zacks Research increased its Q1 2026 EPS estimate for Bread Financial (NYSE: BFH) to $2.78 and updated several 2026–2027 earnings estimates, while maintaining a "Hold" rating. The company recently surpassed earnings expectations with $2.07 EPS against a $0.40 estimate and has a $200 million share repurchase authorization in addition to a quarterly dividend. Bread Financial also faces mixed analyst sentiment, with some upward revisions in future EPS estimates balanced by some downward adjustments, and institutional investors hold a significant portion of its stock.
Bread Financial Holdings, Inc. (NYSE:BFH) Receives Average Rating of "Hold" from Analysts
Bread Financial Holdings, Inc. (NYSE:BFH) has received an average "Hold" rating from analysts, with a consensus 12-month price target of $80.09. The company recently reported strong Q4 earnings, beating expectations with an EPS of $2.07 and revenue of $975 million, and authorized a $200 million share buyback. BFH also declared a quarterly dividend of $0.23, reflecting a 1.2% yield, and is trading at a relatively low valuation with a P/E ratio of 7.01.
Bread Financial at UBS Conference: Strategic Growth Amid Inflation
Bread Financial Holdings Inc. (NYSE:BFH) presented its strategic vision at the UBS Financial Services Conference 2026, with CFO Perry Beberman highlighting the resilience of its "Middle America" consumer base despite inflation. The company is focused on operational efficiency, strategic growth through new partnerships, and leveraging AI initiatives. Bread Financial anticipates low single-digit loan growth for the year and continuous credit improvement, aiming for mid-20s ROTCE by optimizing capital and efficiency.
A Look At Bread Financial Holdings (BFH) Valuation After Strong 2025 Earnings Update
Bread Financial Holdings (BFH) has reported strong Q4 and full-year 2025 earnings, leading to a significant increase in its share price over the past year. Despite its current trading price of US$79.53, a popular narrative suggests a fair value of $50, indicating it might be overvalued, although its P/E ratio is considerably lower than its peers. The company's valuation is complex, relying on assumptions about margins, receivables growth, and future profit multiples, with regulatory uncertainties and potential credit losses being key risk factors.
Bread Financial to Participate in the Bank of America 2026 Financial Services Conference
Bread Financial Holdings, Inc. announced its participation in the Bank of America 2026 Financial Services Conference. Ralph Andretta (President and CEO) and Perry Beberman (EVP and CFO) will participate in a fireside chat on February 10, 2026, at 3:30 p.m. ET, which will be broadcast live and available for replay.
Bread Financial raised to Outperform at Evercore ISI on inflecting growth (BFH:NYSE)
Evercore ISI has upgraded Bread Financial Holdings (BFH) to an Outperform rating from In Line. The upgrade is based on the credit card company's improving earnings trends and an inflecting growth trajectory. Analyst John Pancari anticipates improved net interest income dynamics despite near-term interest rate headwinds.
Allianz Asset Management GmbH Has $52.63 Million Stake in Bread Financial Holdings, Inc. $BFH
Allianz Asset Management GmbH significantly increased its stake in Bread Financial Holdings, Inc. (NYSE:BFH) by 44.5% in Q3, now owning 943,659 shares valued at $52.63 million. This increase makes Allianz Asset Management GmbH one of the largest institutional holders of the stock. Bread Financial recently outperformed earnings expectations, reported strong revenue, authorized a $200 million share repurchase program, and declared a quarterly dividend.
5 Revealing Analyst Questions From Bread Financial's Q4 Earnings Call
Bread Financial (BFH) exceeded Q4 earnings expectations, driven by product diversification, new brand signings, and disciplined credit management. This article highlights five key analyst questions from their earnings call, focusing on loan growth, strategy in travel/entertainment, direct-to-consumer deposits, credit tightening vs. growth, and AI adoption. Future catalysts include new partnerships, technology modernization, and sustained growth in direct-to-consumer deposits.
Bread Financial (BFH): Buy, Sell, or Hold Post Q4 Earnings?
Despite Bread Financial (BFH) stock seeing a 31.5% gain over the past six months and beating the S&P 500, analysts recommend caution. The company's long-term revenue growth (3.1% annualized) and EPS growth (5.3% compounded annual growth rate) are considered sluggish and barely growing, respectively. While the stock trades at an "optically cheap" 7.6x forward P/E, its shaky fundamentals suggest better investment opportunities elsewhere.
Bread Financial (BFH) Is Up 8.6% After Earnings Beat And Dividend Move Has The Bull Case Changed?
Bread Financial Holdings (BFH) reported strong Q4 and full-year 2025 earnings, with net income and EPS increasing year-on-year, despite flat net interest income. The company also affirmed its capital return by declaring first-quarter 2026 cash dividends. Although the stock is up 8.6% and potentially undervalued, the core concerns around credit risks and expected future earnings softening remain.
Earnings call transcript: Bread Financial Q4 2025 beats EPS expectations
Bread Financial Holdings Inc. reported strong Q4 2025 earnings, significantly exceeding Wall Street's EPS and revenue expectations, leading to a 6.36% rise in pre-market stock trading. The company secured seven major brand partnerships in 2025 and anticipates low single-digit credit sales growth in 2026, supported by stable macroeconomic conditions and strategic investments in AI. Executives highlighted a focus on profitability, technological advancements, and disciplined credit management, while addressing analyst questions on loan growth, credit quality, and the strategic use of AI.
Bread Financial to Participate in the Bank of America 2026 Financial Services Conference
Bread Financial Holdings, Inc. announced its participation in the Bank of America 2026 Financial Services Conference on February 10, 2026. President and CEO Ralph Andretta, along with EVP and CFO Perry Beberman, will participate in a live fireside chat at 3:30 p.m. ET, which will also be available on the company's investor relations website and for 90-day replay.
Analysts Offer Insights on Financial Companies: Bread Financial Holdings (BFH) and First Interstate Bancsystem (FIBK)
Two financial companies, Bread Financial Holdings (BFH) and First Interstate Bancsystem (FIBK), recently received bullish sentiments from analysts. KBW analyst Sanjay Sakhrani maintained a Buy rating on BFH with a $92.00 price target, and KBW analyst Kelly Motta maintained a Buy rating on FIBK with a $39.00 price target. The articles also provide analyst consensus details and average returns for the analysts.
Bread Financial Q4 Earnings and Revenues Top Estimates, Rise Y/Y
Bread Financial Holdings, Inc. (BFH) reported strong fourth-quarter 2025 results, with operating income and revenues surpassing estimates and showing significant year-over-year growth. The company's performance was driven by pricing changes, new partner growth, and increased general-purpose spending, despite a slight decrease in average and end-of-period loans. BFH also raised its dividend by 10% and provided a 2026 outlook anticipating low single-digit revenue growth.
Bread Financial Q4 Earnings and Revenues Top Estimates, Rise Y/Y
Bread Financial (BFH) reported strong Q4 and full-year 2025 results, with Q4 operating income significantly beating estimates by 417.5% and revenue exceeding expectations by 3.62%, primarily due to pricing changes. The company also announced a 10% dividend increase and outlined a 2026 outlook with expected low single-digit revenue growth and improved net loss rates. This performance reflects effective credit management and consumer resilience.
Bread Financial stock rises after Citizens reiterates Market Perform rating
Bread Financial Holdings (NYSE:BFH) stock rose approximately 6% after reporting strong Q4 2025 results, outperforming EPS and revenue forecasts. Citizens reiterated its "Market Perform" rating, citing the company's positive credit outlook, management's guidance for loan growth in 2026, and aggressive share buybacks, despite competitive pressures and net interest margin uncertainty. The company's financial health is rated "GREAT" with a 3.1/5 score by InvestingPro.
Bread Financial stock rises after Citizens reiterates Market Perform rating
Bread Financial Holdings (NYSE:BFH) stock rose approximately 6% after reporting strong fourth-quarter 2025 results, with Citizens maintaining a Market Perform rating. The company significantly beat EPS and revenue expectations, and analysts noted positive credit outlook despite competitive challenges. Bread Financial has shown impressive share buybacks and dividend consistency, but Citizens sees its shares as fairly valued.
AlphaQuest LLC Acquires New Stake in Bread Financial Holdings, Inc. $BFH
AlphaQuest LLC has acquired a new stake of 29,042 shares, valued at $1.62 million, in Bread Financial Holdings, Inc. (NYSE:BFH). This comes as Bread Financial materially beat Q4 expectations with strong EPS and revenue, highlighted improving credit metrics, and announced a $200 million share buyback and a $0.23 quarterly dividend. Institutional ownership in the company remains very high at 99.52%.
Bread Financial Holdings (BFH) Margin Improvement Tests Bearish Credit Risk Narratives
Bread Financial Holdings (BFH) reported strong FY 2025 Q4 revenue of US$602 million and basic EPS of US$1.15, with trailing twelve-month EPS at US$10.96. The company achieved a net profit margin of 20%, significantly improved from the previous year, and showed 86.7% earnings growth over the last 12 months. Despite this strong financial performance, a 5.6% non-performing loan ratio raises concerns about credit risk, creating a tension between the improved profitability and potential future headwinds for investors.
Bread Financial Holdings, Inc. (NYSE:BFH) Q4 2025 Earnings Call Transcript
Bread Financial Holdings, Inc. (NYSE: BFH) announced strong fourth quarter and full year 2025 results, exceeding earnings expectations with reported EPS of $2.07 against an expectation of $0.38. The company highlighted significant achievements including seven major new brand signings, renewal of multiple existing partners, and a substantial increase in direct-to-consumer deposits, which now account for 48% of total funding. They also outlined a positive outlook for 2026, anticipating low single-digit loan and revenue growth, continued improvement in credit metrics, and a commitment to operational excellence driven by technology advancements and AI adoption.
BFH Q4 Deep Dive: Product Diversification and Operational Discipline Drive Outperformance
Bread Financial (BFH) missed revenue expectations in Q4 CY2025 with $602 million but significantly beat non-GAAP profit estimates at $2.07 per share. The company attributes its outperformance to product diversification, new brand signings, and operational discipline, alongside disciplined credit management. Management anticipates modest loan and revenue growth in 2026, driven by continued consumer resilience, technology investments, and a stable funding base, despite macroeconomic uncertainties.
Morgan Stanley Raises Price Target on Bread Financial Holdings to $68 From $62, Keeps Underweight Rating
Morgan Stanley has increased its price target for Bread Financial Holdings (BFH) to $68 from $62, while maintaining an "Underweight" rating on the stock. This adjustment reflects an updated outlook for the consumer lending company. The article also notes recent news about Bread Financial Holdings' Q4 2025 earnings and revenue, which exceeded analyst estimates, and the declaration of a cash dividend.
Bread Financial Holdings, Inc. $BFH Shares Sold by Great Lakes Advisors LLC
Great Lakes Advisors LLC reduced its stake in Bread Financial Holdings (BFH) by 35.8% in the third quarter, while other institutional investors made various adjustments to their holdings. The company materially beat Q4 expectations with strong EPS and revenue, approved a $200 million share buyback, and declared a $0.23 quarterly dividend. Despite elevated credit losses, analysts generally rate BFH as a "Hold" with an average target price of $78.82.
Bread Financial Earnings Call: Solid Progress, Slower Growth
Bread Financial's latest Q4 earnings call revealed a mix of solid operational progress and balance sheet gains, alongside an acknowledgment of near-term pressures on growth and earnings. The company focused on strengthening its funding profile, improving credit metrics, and optimizing its capital structure through debt refinancing and returning capital to shareholders. Despite these achievements, flat loan balances, lower billed fees, and interest rate uncertainty are expected to lead to slower, low single-digit growth in 2026.
Bread Financial Holdings, Inc. (NYSE:BFH) Plans Quarterly Dividend of $0.23
Bread Financial Holdings, Inc. (NYSE:BFH) has announced a quarterly dividend of $0.23 per share, payable on March 16th to shareholders of record on February 27th. This dividend represents an annualized yield of 1.3% and is well-covered by the company's earnings, with a payout ratio of approximately 10.1%. Analysts expect the company to earn $6.45 per share for the current fiscal year, further supporting the sustainability of the dividend.
Why Are Bread Financial (BFH) Shares Soaring Today
Shares of Bread Financial (BFH) jumped over 5% after the company reported better-than-expected financial results for the fourth quarter of 2025. The company's adjusted earnings of $2.07 per share and revenue of $975 million significantly surpassed Wall Street's forecasts, driving investor optimism. Despite this surge, BFH shares are still down 4.2% year-to-date and trading below their 52-week high.
Earnings call transcript: Bread Financial’s Q4 2025 earnings beat expectations
Bread Financial Holdings Inc. (BFH) reported a significant earnings beat for Q4 2025, with EPS of $2.07 against a forecast of $0.35 and revenue of $975 million exceeding expectations by 2.04%. The company's stock rose 5.81% in pre-market trading following the announcement. Key takeaways include robust credit sales growth, new brand partnerships, and an optimistic outlook for low single-digit loan and revenue growth in 2026, supported by improved credit metrics and strategic investments in technology and AI.
Bread Financial Holdings Inc (NYSE:BFH) Shares Surge After Q4 Earnings Beat
Bread Financial Holdings Inc (NYSE:BFH) shares rose significantly in premarket trading after the company announced its Q4 and full-year 2025 financial results, which comfortably exceeded Wall Street's expectations. The company reported a non-GAAP EPS of $2.07 against an estimate of $0.36 and revenue of $975 million, surpassing the $963 million estimate. Additionally, Bread Financial provided a positive update on its credit performance and declared quarterly dividends for common and preferred stock.
Bread Financial: Q4 Earnings Snapshot
Bread Financial Holdings, Inc. (BFH) reported strong fourth-quarter earnings, with a profit of $53 million and adjusted earnings of $2.07 per share, significantly exceeding Wall Street's expectations of 40 cents per share. The company also surpassed revenue forecasts, posting adjusted revenue of $975 million. Despite an almost 8% drop in shares since the start of the year, the stock has shown an 8% increase over the last 12 months.
BREAD FINANCIAL HOLDINGS, INC. Q4 Profit Climbs
BREAD FINANCIAL HOLDINGS, INC. (BFH) reported a significant increase in its Q4 profit, with earnings climbing to $53 million, or $1.16 per share, compared to $7 million, or $0.14 per share, in the prior year. Adjusted earnings for the period reached $95 million, or $2.07 per share. The company also saw its revenue rise by 5.3% to $975 million from $926 million last year.
Bread Financial® Holdings, Inc. Declares Quarterly Dividends for First Quarter of 2026
Bread Financial Holdings, Inc. announced quarterly dividends for the first quarter of 2026, with $26.35 per share for its preferred stock and $0.23 per share for common stock. Both dividends are payable on March 16, 2026, to stockholders of record as of February 27, 2026. The company, celebrating its 30th anniversary, provides tech-driven financial services including various payment, lending, and saving solutions.
Bread Financial to pay March 16 cash dividends to shareholders
Bread Financial Holdings, Inc. (NYSE: BFH) has announced its Board of Directors declared quarterly cash dividends for the first quarter of 2026 for both its preferred and common stock. A dividend of $26.35 per share ($0.65875 per depositary share) was declared for the 8.625% Non-Cumulative Perpetual Preferred Stock, Series A, and $0.23 per share for common stock. Both dividends are payable on March 16, 2026, to shareholders of record as of the close of business on February 27, 2026.
Bread Financial Holdings (BFH) Beats Q4 Earnings and Revenue Estimates
Bread Financial Holdings (BFH) reported Q4 earnings of $2.07 per share, significantly surpassing the Zacks Consensus Estimate of $0.4 per share and showing a substantial increase from the prior year. The company's revenues also exceeded expectations, reaching $975 million, which was 3.62% above the consensus estimate. Despite underperforming the market year-to-date, BFH currently holds a Zacks Rank #3 (Hold).
Bread Financial Reports Fourth Quarter and Full Year 2025 Results
Bread Financial Holdings, Inc. (NYSE: BFH) has released its financial results for the fourth quarter and full year 2025, which are now available on the company's investor relations website. President and CEO Ralph Andretta and CFO Perry Beberman are scheduled to discuss these results during a conference call at 8:30 a.m. ET. The company, celebrating 30 years in 2026, provides tech-forward payment, lending, and saving solutions to millions of U.S. consumers.
Hussman Strategic Advisors Inc. Sells 21,000 Shares of Bread Financial Holdings, Inc. $BFH
Hussman Strategic Advisors Inc. reduced its stake in Bread Financial Holdings, Inc. by 40% in Q3, selling 21,000 shares and retaining 31,500 shares valued at $1.757 million. Despite this, other institutional investors increased their positions, and Bread Financial's board authorized a $200 million share repurchase program, signaling potential undervaluation. Analysts currently have a consensus "Hold" rating on the stock with a price target of $78.82.
How Investors May Respond To Bread Financial (BFH) Q4 Preview Spotlighting Bread Pay-Led Revenue Resilience
Bread Financial Holdings (BFH) is set to release its Q4 2025 results, with analysts expecting revenue growth driven by co-brand programs, proprietary cards, and Bread Pay, despite projections for softer earnings. The company's large positive Earnings ESP suggests potential outperformance. Investors are keen to see if product diversification and digital payments growth can translate into stable credit performance, while closely monitoring asset quality and earnings volatility.
Unlocking Q4 Potential of Bread Financial (BFH): Exploring Wall Street Estimates for Key Metrics
Wall Street analysts predict Bread Financial (BFH) will report Q4 earnings of $0.38 per share, a 7.3% decline year-over-year, with revenues expected to increase by 2.5% to $948.99 million. The consensus EPS estimate saw a 0.5% downward revision over the last 30 days. Key financial metrics such as Net Interest Margin, Efficiency Ratio, Net Loss Rate, and various interest income figures are also detailed based on analyst forecasts.
What To Expect From Bread Financial's (BFH) Q4 Earnings
Bread Financial (BFH) is set to report its Q4 earnings, with analysts anticipating a 3.1% year-on-year revenue growth to $954.4 million and adjusted earnings of $0.47 per share. Despite missing revenue estimates four times in the last two years, analysts have reconfirmed their estimates. Peers like Synchrony Financial and Capital One have already reported mixed Q4 results, while Bread Financial's stock is down 7.6% over the last month, heading into earnings with an average analyst price target of $80.07 against a current share price of $70.70.
Is Bread Financial Poised for a Beat This Earnings Season?
Bread Financial (BFH) is expected to report its fourth-quarter 2025 results on January 29, with projected revenue growth but a decline in earnings. The company has a strong track record of beating earnings estimates and its Earnings ESP of +32.20% combined with a Zacks Rank of 2 suggests another beat is likely. Factors such as diversified product mix, increased credit sales, and higher interest income are expected to contribute positively, while increased interest expenses and non-interest expenses could pose challenges.
Is Bread Financial Poised for a Beat This Earnings Season?
Bread Financial Holdings (BFH) is anticipated to report an earnings beat for its fourth-quarter 2025 results, driven by product diversification, increased credit sales, and higher interest and fees on loans. Despite an expected decline in the bottom line year-over-year, the Zacks Model predicts a beat due to a positive Earnings ESP of +32.20% and a Zacks Rank of 2. Other financial service providers like The Blackstone Group (BX) and Virtu Financial (VIRT) are also expected to perform well this earnings season.
Bread Financial (NYSE:BFH) Rating Increased to Strong-Buy at Wall Street Zen
Wall Street Zen has upgraded Bread Financial (NYSE:BFH) from a "buy" to a "strong-buy" rating. This upgrade comes despite a mixed analyst picture, with MarketBeat showing a consensus "Hold" rating and a $78.82 price target. Bread Financial recently reported strong quarterly earnings, significantly beating analyst estimates, and authorized a $200 million share repurchase program.
Zacks Research Expects Weaker Earnings for Bread Financial
Zacks Research has lowered its earnings per share forecasts for Bread Financial Holdings (NYSE:BFH) for FY2026 and Q4 2026, while maintaining a "Hold" rating. This downgrade comes despite the company beating earnings and revenue estimates in its last reported quarter. The board's approval of a $200 million share buyback and significant institutional ownership suggest management views the stock as undervalued despite cautious analyst sentiment.
Bread Financial Holdings (BFH) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
Bread Financial Holdings (BFH) is projected to surpass its earnings estimates for the quarter ending December 2025, with an expected year-over-year decline in EPS but an increase in revenues. The company's Zacks Earnings ESP of +32.20% and Zacks Rank of #3 suggest a high probability of beating the consensus EPS estimate. Investors are advised to consider other factors alongside these predictions.
Bread Financial Holdings (BFH) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
Bread Financial Holdings (BFH) is anticipated to report a year-over-year decline in earnings but higher revenues for the quarter ending December 2025. With a positive Earnings ESP of +32.20% and a Zacks Rank of #3, the company is highly likely to exceed consensus EPS estimates. Investors are advised to consider other factors beyond earnings surprises when making investment decisions.
Q1 EPS Estimates for Bread Financial Decreased by Analyst
Zacks Research has decreased its Q1 2026 EPS estimates for Bread Financial (NYSE:BFH) to $2.47 per share, down from $2.50. The firm maintains a "Hold" rating on the stock and has also provided estimates for Q3 2026, Q3 2027, and Q4 2027 earnings. Bread Financial recently reported strong quarterly earnings, surpassing analyst expectations for both EPS and revenue.
