Bread Financial reported net income available to common stockholders of $53 million in the fourth quarter. Excluding a $42 million post-tax charge for debt repurchases, adjusted net income rose to $95 million, or $2.07 per diluted share. For the full year, return on average tangible common equity reached 20%, while tangible book value per common share increased 23% year-over-year to $57.57. Total revenue for the quarter was supported by $975 million in credit sales, reflecting a 2% year-over-year increase in transaction size and frequency.

In 2025 Bread Financial signed seven major new brand partners, expanding its Home vertical with Bed Bath & Beyond, Furniture First and Raymour & Flanigan. The company launched co-brand lending with Crypto.com and extended installment options to Cricket Wireless and Vivint. Renewals included an enhanced fee-based Caesars Rewards credit card, and all top 10 programs are now contracted through at least 2028. Co-brand partnerships accounted for 52% of credit sales in the fourth quarter, up from 48% a year earlier, diversifying income streams and reducing portfolio risk.

During the quarter, Bread Financial repurchased $120 million of common shares and returned $350 million of capital to shareholders in 2025, including $310 million in buybacks equating to 12% of year-end 2024 shares outstanding. The company raised its quarterly dividend by 10%. Direct-to-consumer deposits grew 11% year-over-year and now represent 48% of average total funding, up from 43%. Total liquidity—comprising liquid assets and undrawn credit facilities—stood at $6.0 billion, or 26.4% of total assets. Following upgrades, the company issued $500 million of senior notes at 6.75% and retired $900 million of 9.75% notes, reducing funding costs by 300 basis points.

Full-year net loss rate for 2025 was 7.7%, outperforming initial guidance, with fourth-quarter losses at 7.4% and delinquency at 5.8%, down 10 basis points year-over-year. The reserve rate tightened to 11.2%, reflecting higher-quality loan vintages. Bread Financial forecasts 2026 credit card and loan growth in the low single digits, net loss rates of 7.2%–7.4%, and a net interest margin near or above 2025 levels. Management expects positive operating leverage, continued technology and AI investments—including over 200 machine-learning models—and a gradual shift toward a 70%+ direct-to-consumer funding mix over time.