Revenue has remained stagnant at approximately $1.2 billion over the last ten quarters, while operating margins have struggled to break out of a 15% to 20% range during stable periods.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 4.71B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 3.02B | 2.98B | 2.44B | 3.07B | 2.28B | 2.06B | 1.95B | 2.32B | 2.59B | 2.55B | 2.43B | 2.3B | 1.82B | 1.46B | 1.24B | 1.06B | 927.71M | 465.39M | 602.86M | 588.15M | 513.9M | 413.37M | 334.26M | 257.67M | 194.75M | 170.23M | 130.21M | 116.23M | 410.91M |
| Gross Margin % | 63.99% | 63.33% | 50.88% | 59.26% | 52.05% | 63.06% | 59.13% | 69.43% | 45.66% | 46.57% | 34.08% | 35.64% | 34.39% | 33.91% | 34.14% | 33.49% | 33.23% | 23.69% | 29.77% | 29.97% | 31.02% | 26.56% | 26.53% | 24.62% | 22.51% | 22% | 19.2% | 19.93% | 100% |
| Gross Profit Growth % | - | 21.92% | -20.38% | 34.71% | 10.38% | 5.73% | -16.1% | -10.15% | 1.46% | 4.81% | 6% | 25.86% | 24.53% | 17.78% | 16.98% | 14.56% | 99.34% | -22.8% | 2.5% | 14.45% | 24.32% | 23.66% | 29.73% | 32.31% | 14.41% | 30.73% | 12.03% | -71.72% | - |
| Operating Expenses | 2.36B | 2.36B | 2.06B | 2.1B | 1.98B | 633M | -161.6M | -1.22B | 829.8M | 1.03B | 1.17B | 1.03B | 725.2M | 365.49M | 268.95M | 250.14M | 298.49M | 57.63M | 142.26M | 166.92M | 140.52M | 176.76M | 162.17M | 126.88M | 120.26M | 119.64M | 108.34M | 113.77M | 405.43M |
| OpEx % of Revenue | - | 50.27% | 42.93% | 40.55% | 45.19% | 19.36% | -4.9% | -36.33% | 14.64% | 18.85% | 16.35% | 16.05% | 13.68% | 8.46% | 7.39% | 7.88% | 10.69% | 2.93% | 7.02% | 8.51% | 8.48% | 11.36% | 12.87% | 12.12% | 13.9% | 15.46% | 15.98% | 19.51% | 98.67% |
| Selling, General & Admin | 1.32B | 1.31B | 1.04B | 1.03B | 959M | 831M | 752M | 926M | 162.5M | 159.3M | 143.2M | 138.5M | 141.5M | 109.11M | 108.06M | 95.26M | 85.77M | 99.82M | 82.8M | 80.9M | 91.81M | 91.53M | 77.74M | 52.32M | 53.78M | 45.43M | 32.2M | 35.97M | 17.59M |
| SG&A % of Revenue | - | 27.9% | 21.76% | 19.87% | 21.93% | 25.41% | 22.8% | 27.66% | 2.87% | 2.91% | 2.01% | 2.15% | 2.67% | 2.53% | 2.97% | 3% | 3.07% | 5.08% | 4.09% | 4.12% | 5.54% | 5.88% | 6.17% | 5% | 6.22% | 5.87% | 4.75% | 6.17% | 4.28% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 660M | 614M | 381M | 968M | 300M | 1.04B | 888.4M | 1.31B | 1.76B | 1.52B | 1.27B | 1.26B | 1.1B | 1.1B | 974.36M | 812.68M | 629.22M | 407.76M | 460.59M | 421.23M | 373.38M | 236.61M | 172.1M | 130.79M | 74.49M | 50.59M | 21.86M | 2.46M | 5.48M |
| Operating Margin % | 14% | 13.07% | 7.94% | 18.71% | 6.86% | 31.93% | 26.94% | 39.05% | 31.01% | 27.73% | 17.73% | 19.59% | 20.71% | 25.44% | 26.76% | 25.61% | 22.54% | 20.76% | 22.74% | 21.47% | 22.54% | 15.2% | 13.66% | 12.5% | 8.61% | 6.54% | 3.22% | 0.42% | 1.33% |
| Operating Income Growth % | - | 61.15% | -60.64% | 222.67% | -71.26% | 17.51% | -32.05% | -25.6% | 15.77% | 19.94% | 0.29% | 14.88% | -0.05% | 12.78% | 19.9% | 29.16% | 54.31% | -11.47% | 9.35% | 12.81% | 57.81% | 37.48% | 31.59% | 75.57% | 47.25% | 131.38% | 790.63% | -55.23% | - |
| EBITDA | 738M | 694M | 471M | 1.08B | 413M | 1.17B | 1.07B | 1.56B | 2.24B | 2.02B | 1.78B | 1.75B | 1.41B | 1.32B | 1.14B | 965.83M | 772.45M | 533.17M | 604.4M | 587.86M | 498.42M | 336.31M | 263.5M | 205.35M | 140.97M | 124.8M | 98.01M | 2.46M | 49.25M |
| EBITDA Margin % | 15.65% | 14.77% | 9.82% | 20.95% | 9.44% | 35.69% | 32.52% | 46.49% | 39.61% | 36.81% | 24.9% | 27.24% | 26.62% | 30.45% | 31.34% | 30.44% | 27.67% | 27.14% | 29.84% | 29.96% | 30.08% | 21.61% | 20.91% | 19.62% | 16.29% | 16.13% | 14.45% | 0.42% | 11.99% |
| EBITDA Growth % | 54.39% | 47.35% | -56.55% | 162.47% | -64.61% | 8.82% | -31.1% | -30.66% | 11.37% | 13.38% | 1.35% | 24.27% | 7.34% | 15.23% | 18.16% | 25.04% | 44.88% | -11.79% | 2.81% | 17.94% | 48.2% | 27.64% | 28.32% | 45.67% | 12.96% | 27.33% | 3892.22% | -95.02% | - |
| D&A (Non-Cash Add-back) | 78M | 80M | 90M | 116M | 113M | 123M | 184M | 249M | 487.3M | 497.6M | 512.1M | 492.2M | 313.1M | 216.12M | 166.88M | 153.15M | 143.23M | 125.41M | 143.81M | 166.63M | 125.04M | 99.71M | 91.4M | 74.56M | 66.47M | 74.2M | 76.14M | 0 | 43.77M |
| EBIT | 660M | 614M | 381M | 968M | 300M | 1.04B | 365M | 745M | 1.22B | 1.06B | 837M | 996.2M | 837.9M | 793.41M | 682.9M | 514.1M | 310.89M | 240.28M | 384.26M | 380.24M | 332.66M | 222.13M | 165.13M | 130.79M | 74.49M | 50.59M | 21.86M | 2.46M | 5.48M |
| Net Interest Income | 4.12B | 4.06B | 4.06B | 4.27B | 4.18B | 3.48B | 3.45B | -130M | -156.4M | -173.7M | -218.2M | -179.5M | -131.9M | -181.06M | -173.47M | -148.8M | -133.79M | -116.53M | -64.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 4.94B | 4.91B | 5.02B | 5.14B | 4.68B | 3.87B | 3.95B | 4.83B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 822M | 854M | 960M | 879M | 503M | 383M | 499M | 638M | 156.4M | 173.7M | 218.2M | 179.5M | 131.9M | 181.06M | 173.47M | 148.8M | 133.79M | 116.53M | 64.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 660M | 614M | 381M | 968M | 300M | 1.04B | 301M | 662M | 1.22B | 1.06B | 837M | 931.6M | 837.9M | 793.41M | 682.9M | 514.1M | 310.89M | 262.95M | 380.15M | 351.84M | 332.66M | 222.13M | 164.32M | 108.98M | 41.72M | -662K | -19.48M | -40.33M | 5.48M |
| Pretax Margin % | 14% | 13.07% | 7.94% | 18.71% | 6.86% | 31.93% | 9.13% | 19.77% | 21.44% | 19.41% | 11.73% | 14.47% | 15.8% | 18.37% | 18.75% | 16.2% | 11.14% | 13.39% | 18.77% | 17.93% | 20.08% | 14.27% | 13.04% | 10.41% | 4.82% | -0.09% | -2.87% | -6.92% | 1.33% |
| Income Tax | 99M | 92M | 102M | 231M | 76M | 247M | 93M | 156M | 269.5M | 293.3M | 319.4M | 326.2M | 321.8M | 297.24M | 260.65M | 198.81M | 115.25M | 86.23M | 147.6M | 137.4M | 126.26M | 83.38M | 61.95M | 41.68M | 18.06M | 9.7M | 1.84M | 0 | 0 |
| Effective Tax Rate % | 15% | 14.98% | 26.77% | 23.86% | 25.33% | 23.66% | 30.9% | 23.56% | 22.18% | 27.6% | 38.16% | 35.02% | 38.41% | 37.46% | 38.17% | 38.67% | 37.07% | 32.79% | 38.83% | 39.05% | 37.96% | 37.54% | 37.7% | 38.25% | 43.29% | -1465.26% | -9.45% | 0% | 0% |
| Net Income | 561M | 518M | 277M | 718M | 223M | 801M | 214M | 278M | 963.1M | 788.7M | 515.8M | 596.5M | 506.3M | 496.17M | 422.26M | 315.29M | 193.74M | 143.73M | 206.4M | 164.06M | 189.6M | 138.75M | 102.37M | 67.3M | 23.66M | -10.36M | -21.32M | -29.84M | -17.99M |
| Net Margin % | 11.9% | 11.02% | 5.77% | 13.88% | 5.1% | 24.5% | 6.49% | 8.3% | 17% | 14.41% | 7.23% | 9.26% | 9.55% | 11.49% | 11.6% | 9.94% | 6.94% | 7.32% | 10.19% | 8.36% | 11.44% | 8.91% | 8.12% | 6.43% | 2.73% | -1.34% | -3.14% | -5.12% | -4.38% |
| Net Income Growth % | 100.36% | 87% | -61.42% | 221.97% | -72.16% | 274.3% | -23.02% | -71.13% | 22.11% | 52.91% | -13.53% | 17.82% | 2.04% | 17.5% | 33.93% | 62.74% | 34.79% | -30.36% | 25.81% | -13.47% | 36.66% | 35.53% | 52.12% | 184.45% | 328.32% | 51.4% | 28.54% | -65.86% | - |
| Net Income (Continuing) | 561M | 522M | 279M | 737M | 224M | 797M | 208M | 506M | 945.5M | 769.2M | 517.6M | 605.4M | 516.1M | 496.17M | 422.26M | 315.29M | 195.64M | 176.72M | 232.55M | 214.44M | 206.4M | 138.75M | 102.37M | 67.3M | 23.66M | -10.36M | -21.32M | -29.84M | -17.69M |
| Discontinued Operations | 0 | -4M | -2M | -19M | -1M | 4M | 6M | -228M | 17.6M | 19.5M | 0 | 0 | 0 | 0 | 0 | 0 | -1.9M | -32.98M | -26.15M | -50.38M | -16.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -300K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 167.4M | 235.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 12.99 | 10.96 | 5.50 | 14.36 | 4.46 | 16.02 | 4.46 | 11.45 | 17.48 | 14.10 | 7.34 | 8.85 | 7.87 | 7.42 | 6.58 | 5.45 | 3.48 | 2.49 | 2.80 | 2.03 | 2.32 | 1.64 | 1.22 | 0.84 | 0.31 | -0.13 | -0.45 | -0.70 | -0.43 |
| EPS Growth % | 117.68% | 99.27% | -61.7% | 221.97% | -72.16% | 259.19% | -61.05% | -34.5% | 23.97% | 92.1% | -17.06% | 12.45% | 6.06% | 12.77% | 20.73% | 56.61% | 39.76% | -11.07% | 37.93% | -12.5% | 41.46% | 34.43% | 45.24% | 170.97% | 338.46% | 71.11% | 35.71% | -62.79% | - |
| EPS (Basic) | - | 11.13 | 5.58 | 14.42 | 4.47 | 16.12 | 4.47 | 11.45 | 17.54 | 14.17 | 7.37 | 8.91 | 8.72 | 10.09 | 8.44 | 6.22 | 3.69 | 2.58 | 2.88 | 2.09 | 2.38 | 1.69 | 1.27 | 0.86 | 0.32 | -0.13 | -0.45 | -0.70 | -0.43 |
| Diluted Shares Outstanding | 43.2M | 46M | 50.4M | 50M | 50M | 50M | 47.9M | 50M | 55.1M | 55.9M | 58.9M | 62.3M | 62.4M | 66.87M | 64.14M | 57.8M | 55.71M | 57.71M | 73.64M | 80.81M | 81.69M | 84.64M | 84.04M | 80.12M | 76.32M | 64.58M | 47.54M | 42.63M | 41.73M |
| Basic Shares Outstanding | 42.8M | 44.9M | 49.6M | 49.8M | 49.9M | 49.7M | 47.8M | 50M | 54.9M | 55.7M | 58.6M | 61.9M | 56.4M | 49.19M | 50.01M | 50.69M | 52.53M | 55.77M | 71.5M | 78.4M | 79.73M | 82.21M | 80.61M | 78.25M | 73.93M | 64.58M | 47.54M | 42.63M | 41.73M |
| Dividend Payout Ratio | - | 8.11% | 15.52% | 5.85% | 19.28% | 5.24% | 28.5% | 45.83% | 13% | 14.64% | 5.82% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Credit loss volatility
According to quarterly financial disclosures, Bread Financial has maintained a consistent revenue baseline of approximately $1.2 billion over the last ten quarters, suggesting that the company's core credit card and digital installment products are currently struggling to generate meaningful top-line expansion in the current interest rate environment.
The lack of revenue growth indicates that the company is likely trading off volume for credit quality or facing significant attrition in its legacy private-label partnerships. Investors should monitor whether the integration of the Bread digital platform can eventually catalyze growth or if the firm remains tethered to the cyclical spending patterns of its mid-market retail partners.
As reported in recent income statements, gross margins have exhibited extreme volatility, swinging from a low of 42.6% in 2023Q4 to a peak of 83.0% in 2025Q4, reflecting the heavy impact of credit loss provisions on the company's underlying profitability metrics.
This wide variance suggests that the company's gross margin is less a reflection of pricing power and more a function of accounting adjustments under CECL standards. The inability to maintain a stable margin profile complicates the assessment of true operational efficiency and highlights the sensitivity of the business to credit cycle fluctuations.
Based on the provided income statement data, operating margins have remained largely range-bound between 15% and 20% during stable periods, indicating that Bread Financial has yet to achieve the significant operating leverage typically expected from a tech-integrated digital lending platform.
The persistent SG&A burden, which frequently exceeds $250 million per quarter, suggests that the company is still absorbing the high costs of managing a fragmented portfolio of over 130 partner programs. This overhead appears to act as a structural anchor, preventing the firm from scaling its operating income in proportion to its gross profit.
Financial filings reveal that net income is highly susceptible to periodic swings, with quarterly earnings per share fluctuating from as low as $0.04 in 2024Q3 to $4.15 in 2026Q1, largely driven by the timing of credit loss provisions rather than core operational performance.
The reliance on CECL accounting creates a disconnect between reported net income and actual cash generation, making it difficult for investors to gauge the underlying earnings power of the business. The consistent presence of stock-based compensation, averaging roughly $13-15 million per quarter, further dilutes the quality of these earnings for common shareholders.
Data from recent periods suggests that Bread Financial remains highly vulnerable to margin compression, as evidenced by the sharp operating income decline to negative $27 million in 2024Q4, which underscores the fragility of the business model when credit losses spike.
Short-term observers may point to the company's sensitivity to potential CFPB late fee caps as a primary threat to its non-interest income stream. If regulatory pressures coincide with a cyclical downturn in consumer spending, the company may find its current profitability levels unsustainable, warranting a cautious outlook on its long-term margin stability.
Quick answers to the most common questions about buying BFH stock.
Bread Financial Holdings, Inc. (BFH) is profitable, generating $518.0M in net income for the fiscal year ending 2025 with a net profit margin of 11.0%.
Bread Financial Holdings, Inc. (BFH) reported an operating income of $614.0M, resulting in an operating profit margin of 13.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Bread Financial Holdings, Inc. (BFH) generated $2.98B in gross profit for the year, representing a gross profit margin of 63.3%. This demonstrates the company's core pricing power and production efficiency.