Bread Financial Holdings, Inc. (BFH)
🔔 Watch stock
symbol.quality_heading
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Yellow here is not about an existential question — the capital base holds up: a CET1 capital ratio of 12.9 percent as of June 30, 2026 against a 7 percent regulatory minimum, an equity ratio of 14.7 percent, a reserve rate of 11.23 percent against a running net loss rate of 6.98 percent, and funding that is half self-generated direct bank deposits. The Altman Z of 0.80 stored in our data set is explicitly not a verdict for a credit institution, because the formula was developed for manufacturers. Yellow stands because three operating questions are open. First, the loan book is stagnating — average loans in 2025 were 1 percent below 2024, and revenue has moved between $3.8 and $4.3 billion for three years. Second, a substantial part of the profit increase comes from releasing credit reserves ($92 million in 2024, $135 million in 2025), and that line is nearly spent: only $3 million in the second quarter of 2026 after $74 million. Third, roughly 49 percent of revenue hangs on five card programs, three partners individually clear 10 percent, and with Saks Fifth Avenue a brand partner already entered Chapter 11 proceedings in January 2026. The business model itself clearly carries (net interest margin 18.4 percent, return on equity 17.1 percent, pretax pre-provision earnings up 14 percent in the second quarter of 2026). Whether improved credit quality turns back into growth will show at the earliest in the next quarterly report.
symbol.quality_note
Bread Financial finances the store cards of U.S. retail chains and sits in our price-to-free-cash-flow ranking at 1.95 (data as of July 27, 2026) — on paper one of the cheapest stocks in America. We read the 2025 annual report (10-K), the quarterly report (10-Q) for the period ended March 31, 2026 and the July 23, 2026 earnings release, and worked through the cash flow statement line by line. The result: operating cash flow of $2.1 billion contains $1.2 billion of provision for credit losses added back, while the growth of the loan book sits in an entirely different section. Here is why, at a lender, the very metric that makes it look cheap is the one that misleads.
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Stock Watch
This analysis is as of July 27, 2026. Stock Watch will tell you what's changed at BFH since then.
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Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 108.10 $ — 96% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
AI Rating
Uses AIBread Financial setzt KI laut Geschäftsbericht 2025 operativ ein — in einer KI-gestützten Wissensdatenbank für den Kundenservice sowie in Marketing, Datenanalyse und Kreditrisikomodellen —, verkauft aber keine KI-Produkte und nennt KI nicht als Bedrohung des eigenen Geschäftsmodells.
View the full file — quotes, sources, reviewed filings
„For example, we have developed an AI powered knowledge management solution for our customer care associates designed to achieve the highest possible customer service standards and customer experience."
So haben wir zum Beispiel eine KI-gestützte Wissensmanagement-Lösung für unsere Kundenservice-Mitarbeitenden entwickelt, die die höchstmöglichen Servicestandards und das beste Kundenerlebnis erreichen soll.
„Through our marketing technology, data and analytics capabilities, including the use of machine learning and AI technology, we focus on data insights that drive actionable strategies and enhance revenue growth and customer retention."
Über unsere Marketingtechnologie sowie unsere Daten- und Analysefähigkeiten, einschließlich des Einsatzes von maschinellem Lernen und KI-Technologie, konzentrieren wir uns auf Datenerkenntnisse, die umsetzbare Strategien ermöglichen und Umsatzwachstum sowie Kundenbindung stärken.
„We continue to enhance our credit risk management by evaluating and investing in new technology and advancing our data and modeling capabilities, including through the potential use of deep learning and AI tools."
Wir bauen unser Kreditrisikomanagement weiter aus, indem wir neue Technologie prüfen und in sie investieren und unsere Daten- und Modellierungsfähigkeiten voranbringen, unter anderem durch den möglichen Einsatz von Deep-Learning- und KI-Werkzeugen.
Filings Reviewed: 10-K 2026-02-13 · 10-Q 2026-04-28 · 10-Q 2025-10-28 · 10-Q 2025-07-29 · 10-Q 2025-04-29 · 10-K 2025-02-14
Rated on July 27, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Analysts & Price Target
The price target sits 4.6% above the current price.
- Consensus
- Hold
- Analyst Ratings
- 16
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 12.24 | 11.25 – 12.84 | 3,998 | 0.7% | 12 |
| 12/31/2027 | 13.31 | 10.46 – 15.00 | 4,143 | 8.7% | 13 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Next Reporting Date
- Expected Earnings per Share
- 3.37 $
Expected date of the next quarterly or annual figures. Dates do shift occasionally — only the invitation issued by the company is binding.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.14 | -84.00 | 1,156 | -7.90 | 0.60 | 479 | 479 |
| 2025: Q1 | 2.78 | 3.20 | 1,195 | -3.60 | 11.50 | 393 | 393 |
| 2025: Q2 | 2.94 | 11.20 | 1,149 | -2.60 | 12.10 | 526 | 526 |
| 2025: Q3 | 3.96 | 9,992.60 | 1,181 | -3.40 | 15.90 | 605 | 597 |
| 2025: Q4 | 1.15 | 729.60 | 1,174 | 1.60 | 4.50 | 568 | 568 |
| 2026: Q1 | 4.19 | 50.60 | 1,211 | 1.30 | 14.90 | 487 | 487 |
| 2026: Q2 | 3.55 | 20.70 | – | – | – | 533 | 533 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Annual Figures
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 7,138 | 1,266 | 516 | 8.76 | 2,088 | 1,658 | 25,514 |
| 2017 | 5,475 | 1,518 | 789 | 14.11 | 2,610 | 1,855 | 30,685 |
| 2018 | 5,667 | 1,757 | 963 | 17.48 | 2,755 | 2,332 | 30,388 |
| 2019 | 3,348 | 1,307 | 278 | 5.56 | 1,218 | 1,621 | 26,495 |
| 2020 | 3,298 | 888 | 214 | 4.47 | 1,883 | 1,522 | 22,547 |
| 2021 | 3,270 | 1,044 | 801 | 16.02 | 1,543 | 2,086 | 21,746 |
| 2022 | 3,826 | 802 | 223 | 4.46 | 1,848 | 2,265 | 25,407 |
| 2023 | 4,289 | 1,593 | 718 | 14.36 | 1,987 | 2,918 | 23,141 |
| 2024 | 3,838 | 279 | 277 | 5.50 | 1,859 | 3,051 | 22,891 |
| 2025 | 4,699 | 614 | 518 | 11.26 | 2,092 | 3,327 | 22,663 |
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Assessment: Opportunities & Risks
The price-to-free-cash-flow ranking works off operating cash flow of $2,092 million (2025). That figure adds back $1,242 million of provision for credit losses, while real net principal losses were $1,377 million and loan book growth ($1,345 million) sits in investing activities. Two independent routes arrive at $721 million and $715 million — so roughly 5.6 times cash flow rather than 2.
The CET1 capital ratio stood at 12.9 percent as of June 30, 2026 against a 7 percent regulatory minimum including the capital conservation buffer; the equity ratio was 14.7 percent (December 31, 2025). A reserve rate of 11.23 percent covers roughly a year and a half of charge-offs at the current pace. Direct bank deposits grew to $9.4 billion and provide half of all funding.
A loan yield of 26.6 percent and a net interest margin of 18.4 percent (2025) are levels that do not exist in classic banking. Pretax pre-provision earnings rose 14 percent to $510 million in the second quarter of 2026, return on average equity was 17.1 percent and return on average tangible common equity 22.6 percent.
A substantial part of the profit increase comes from releasing credit reserves: $92 million (2024), $135 million (2025). That line is running dry — only $3 million was released in the second quarter of 2026 after $74 million a year earlier, and $31 million in the first half after $143 million. Meanwhile the loan book is stagnating: average loans in 2025 were 1 percent below 2024.
The five largest card programs accounted for roughly 49 percent of revenue and 44 percent of loans in 2025; Signet Jewelers, Ulta Beauty and Victoria's Secret each individually reached 10 percent or more. Brand partner Saks Fifth Avenue filed for Chapter 11 bankruptcy protection in January 2026. The business is also entirely concentrated in U.S. consumer credit.
The common share count fell from 46.6 million to 38.7 million within twelve months (down 17 percent), with $449 million of authorization still open as of June 30, 2026. Part of that was funded through $201 million of perpetual preferred stock at 8.625 and 8.875 percent — a new, permanent claim ahead of common shareholders costing roughly $17.6 million of dividends a year.
Bread Financial is a soundly capitalized lender with an interest margin that has few peers in banking — but the reason the stock reached our desk does not survive scrutiny. The price-to-free-cash-flow ratio of 1.95 exists because operating cash flow adds back the credit provisions while loan book growth sits in another section; calculated honestly it is roughly 5.6. Add a stagnating loan book, three retail partners each above 10 percent of revenue, and a profit boost from reserve releases that is all but spent. Not investment advice.
- Hook: price-to-free-cash-flow ranking, P/FCF 1.95 → rank 36 of 545 U.S. hits, data as of July 27, 2026. Only the 25 strongest hits are visible on the scanner page; Bread Financial sits below that and is found through the screener. On the German brand the same scanner additionally covers European names (836 hits in total), which does not change its U.S. position. All lists are recomputed daily.
- As-of dates: annual figures from the 2025 annual report on Form 10-K (filed February 13, 2026), quarterly figures from the 10-Q for the period ended March 31, 2026 (filed April 28, 2026). The second-quarter 2026 figures come from the earnings release of July 23, 2026 (Exhibits 99.1 and 99.2 to the current report on Form 8-K) — the matching quarterly report had not been filed as of that date. All 32 filings after April 28, 2026 were reviewed; no Form 25, no Form 15, no tender offer or merger document.
- Deliberately not used as evidence: the Altman Z score (stored 0.80, recomputed -0.05; Z-double-prime thresholds 1.1 and 2.6) and classic interest coverage (0.72) say nothing about banks and lenders, because the formulas were built for manufacturers and interest expense is the purchase price of the goods here. The assessment instead runs through the CET1 capital ratio, the equity ratio, the reserve rate and the coverage of borrowing interest by pretax pre-provision earnings.
- Deviations from the data set: share count of 38.7 million per the financial supplement of July 23, 2026 instead of 40,407,065 from the 10-Q cover page (April 22, 2026) — giving $4.04 billion instead of $4.21 billion of market capitalization. Distance from the all-time high recomputed at 66.3 percent against the closing price of $309.91 on April 23, 2015 instead of the stored 50.63 percent; the stored value rests on a shorter price history.
- Possible confusion: Bread Financial was named Alliance Data Systems Corporation until March 23, 2022 and then also ran loyalty programs and marketing services. Price series before 2022 economically belong to a different company. Alongside the common stock BFH, two preferred issues trade (BFH-PA, BFH-PB) that do not count toward the market capitalization of the common shares.
About the Company
Bread Financial Holdings, Inc. bietet technologieorientierte Zahlungs- und Kreditlösungen für Verbraucher und verbraucherbasierte Branchen in Nordamerika an.
| Employees | 6,000 |
|---|---|
| Headquarters | Columbus, OH |
| Address | 3095 Loyalty Circle, 43219 Columbus, United States |
| Phone | 614 729 4000 |
| Website | breadfinancial.com |
| IPO Date | 15. Jun 2001 |
| ISIN | US0185811082 |
| Stock Split | 1253:1000 on 11/08/2021 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Ralph J. Andretta | President, CEO & Director | 1961 |
| Perry S. Beberman | Executive VP & CFO | 1966 |
| Allegra S. Driscoll | Executive VP & CTO | 1979 |
| Joseph L. Motes III | Executive VP, Chief Legal & Administrative Officer and Secretary | 1962 |
| Tammy Michelle McConnaughey | Executive VP and Chief Credit Risk & Operations Officer | 1974 |
| Jonathan Bryan Campbell | Senior VP & Chief Accounting Officer | 1973 |
| Brian Vereb | Head of Investor Relations | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Insider Transactions
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 28. Jul 2026 | Lakhwara Praniti | Director | Sell | 2,802 | 106.12 | 297,348 |
| 15. Jul 2026 | Gerspach John C | Director | Other | 730 | – | – |
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
View all insider transactions →Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.