Bread Financial (BFH) Q3 2026 Earnings Call Transcript

Bread Financial (BFH) shares fell 3% after reporting Q3 2026 results with a net interest margin of 18.9%, below analyst forecasts. Revenue met expectations at $1.02B, and adjusted earnings were $3.84 per share. Management expects margin compression in Q4 and flat to slightly down margins in 2027. The stock recovered slightly to $99.81, down 2.6% from the previous close.

Bread Financial Holdings (BFH) reported Q3 2026 earnings with loans growing 7% to $18.9B and credit sales up 9%. Net loss rate improved to 6.40%, but net income fell 17% to $156M. Consumer deposits rose 21% to $9.9B. The company renewed agreements with key partners and received a credit rating upgrade. Management expects modest NIM compression and higher expenses in Q4, with minimal share repurchases. Long-term growth targets remain unchanged.

Bread Financial (BFH) reported a 60 basis point decline in reserve rate to 11.12% YoY. 64% of cardholders have a prime score above 650. The company tightened its 2026 net loss rate forecast to 6.9%-7.0%. It renewed partnerships with Signet Jewelers and Sephora. Consumer deposits rose 21% YoY to $9.9B. BFH expects 4% loan growth and 5% revenue growth for 2026, with net interest margin slightly higher than 2025.

Bread Financial (BFH) reported Q3 2026 revenue of $1.02B, up 4.7% YoY, meeting estimates. Non-GAAP EPS of $3.84 beat forecasts by 18.8%. Net interest income met expectations, but net interest margin missed slightly. The company's 5-year revenue growth averaged 4.7% annually, with flat growth in the last two years.

Bread Financial Holdings (BFH) reported Q3 net income of $156M, or $3.82 per share, exceeding analyst expectations of $3.26 per share. Revenue reached $1.22B, with adjusted revenue at $1.02B, also surpassing forecasts. The company's shares have risen 47% YTD and 78% over the past year, according to Zacks Investment Research.

Bread Financial Holdings reported Q3 Non-GAAP EPS of $3.84, beating estimates by $0.61, with revenue of $1.02B, up 5% Y/Y and $10M above expectations. Growth was driven by loans, lower interest expense, and higher fees, partially offset by higher retailer share arrangements.