Bread Financial Holdings, Inc. has recently released its 10-Q report, detailing its operations and financial performance. The company, headquartered in Columbus, Ohio, provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loan financing services, risk management solutions, account origination, funding services for private label and co-brand credit card programs, and marketing, data, and analytics services.
The 10-Q report provides insights into the company's financial condition and results of operations. Bread Financial Holdings, Inc. reported a 4% year-over-year increase in credit sales, amounting to $6.8 billion. The end-of-period credit card and other loans remained relatively flat at $17.7 billion, with average credit card and other loans decreasing by 1% to $17.7 billion. The company's total interest income was down 3% from the second quarter of 2024, primarily due to lower billed late fees and lower average credit card and other loan balances.
Moreover, the report highlights that Bread Financial Holdings, Inc. has continued to diversify its product mix with brand partners through the growth of its co-brand credit card programs. The company's partner base consists of large consumer-based businesses, including well-known brands such as AAA, Academy Sports + Outdoors, Caesars, Dell Technologies, Hard Rock International, the NFL, Saks Fifth Avenue, Signet, Ulta, and Victoria’s Secret, as well as small* and medium-sized businesses.
Additionally, the report discusses the company's efforts to optimize its balance sheet, including completing a $150 million board-authorized share repurchase program and a $150 million tender offer for its 9.750% Senior Notes due 2029. The company's Common equity tier one capital ratio (CET1) was reported at 13.0%, while its Total risk-based capital ratio was at 16.5%. Furthermore, the report provides an outlook for the remainder of 2025, anticipating flat to slightly lower average credit card and other loans relative to 2024, and nominal positive operating leverage, excluding any gain on portfolio sale and the pretax impacts from repurchased debt.
Today the company's shares have moved 1.19% to a price of $64.02. For the full picture, make sure to review BREAD FINANCIAL HOLDINGS, INC.'s 10-Q report.
