Bread Financial reported fourth quarter earnings of $2.07 per share, significantly above the consensus estimate of $0.40 and more than five times the $0.41 per-share result recorded in the year-ago period. Revenue growth was driven by higher loan originations and increased interchange income from both general purpose and private label credit portfolios. Management highlighted profitable expansion in travel & entertainment and specialty apparel segments, noting that loyalty-driven co-brand partnerships contributed to a double-digit rise in average spend per account.

As of December 31, 2025, end-of-period credit card and other loans totaled $18.805 billion, up from $17.418 billion a year earlier, while average quarterly balances reached $17.961 billion, representing a 3 % year-over-year increase. Net principal losses for the quarter amounted to $336 million, resulting in a net loss rate of 7.4 %. For the single month of December, losses were $116 million on average balances of $18.474 billion, also reflecting a 7.4 % loss rate.

Delinquencies over 30 days declined modestly to $971 million at quarter end, from $1.034 billion one year prior. The period-end delinquency rate improved to 5.8 %, down from 5.9 % in the prior year, supported by enhanced underwriting models and targeted collection efforts. Management noted that macroeconomic headwinds remain manageable and that seasoning of newer accounts continues to moderate loss severity.

The board declared a quarterly common dividend of $0.23 per share payable March 16, 2026, and a preferred dividend of $26.35 per share on its 8.625 % Non-Cumulative Perpetual Preferred Stock, Series A. These actions reflect confidence in the company’s capital generation, which benefited from robust operating cash flow and disciplined expense management during the quarter.