Gross margins have exhibited significant volatility, ranging from a low of 37.7% in 2024Q1 to a peak of 82.7% in 2026Q1, reflecting sensitivity to funding costs and credit loss provisions.
| 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 |
|---|
| Sales/Revenue | 19.91B | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 12.16B | 9.76B | 9.39B | 7.66B | 8.3B | 9.47B | 5.85B | 9.13B | 7.74B | 7.07B | 6.99B | 6.79B | 6.31B | 5.63B | 5.5B |
| Gross Margin % | 61.08% | 51.04% | 45.24% | 44.19% | 62.9% | 84.34% | 45.62% | 58.53% | 51.07% | 51.4% | 57.17% | 62.44% | 62.18% | 59.6% | 62.42% |
| Gross Profit Growth % | - | 3.88% | 22.58% | -7.68% | -12.33% | 61.76% | -35.92% | 18% | 9.45% | 1.22% | 2.81% | 7.63% | 12.21% | 2.31% | - |
| Operating Expenses | 7.61B | 5.13B | 4.84B | 4.76B | 4.34B | 3.96B | 4.05B | 4.25B | 4.09B | 3.75B | 3.42B | 3.26B | 2.93B | 2.48B | 2.12B |
| OpEx % of Revenue | - | 26.86% | 23.31% | 27.44% | 32.87% | 35.31% | 31.61% | 27.21% | 27.02% | 27.24% | 27.95% | 29.99% | 28.83% | 26.31% | 24.1% |
| Selling, General & Admin | 3.3B | 2.6B | 2.35B | 2.41B | 2.17B | 1.99B | 1.83B | 2B | 1.96B | 1.8B | 1.62B | 1.48B | 1.33B | 967M | 828M |
| SG&A % of Revenue | - | 13.62% | 11.33% | 13.91% | 16.43% | 17.7% | 14.25% | 12.84% | 12.9% | 13.1% | 13.27% | 13.55% | 13.06% | 10.24% | 9.4% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 4.55B | 4.62B | 4.55B | 2.9B | 3.96B | 5.5B | 1.8B | 4.89B | 3.64B | 3.32B | 3.57B | 3.53B | 3.39B | 3.14B | 3.38B |
| Operating Margin % | 22.85% | 24.17% | 21.93% | 16.75% | 30.03% | 49.03% | 14.01% | 31.32% | 24.05% | 24.16% | 29.21% | 32.45% | 33.35% | 33.28% | 38.32% |
| Operating Income Growth % | - | 1.49% | 56.78% | -26.7% | -28% | 206.23% | -63.23% | 34.11% | 9.63% | -6.89% | 1.1% | 4.28% | 7.77% | -6.93% | - |
| EBITDA | 4.94B | 5.13B | 5.03B | 3.36B | 4.38B | 5.89B | 2.18B | 5.25B | 3.95B | 3.58B | 3.79B | 3.71B | 3.52B | 3.25B | 3.46B |
| EBITDA Margin % | 24.81% | 26.86% | 24.25% | 19.39% | 33.2% | 52.5% | 17% | 33.67% | 26.04% | 26.01% | 31.01% | 34.05% | 34.64% | 34.39% | 39.27% |
| EBITDA Growth % | 14.46% | 2.01% | 49.73% | -23.26% | -25.66% | 170.32% | -58.51% | 33.15% | 10.29% | -5.57% | 2.27% | 5.35% | 8.35% | -6.16% | - |
| D&A (Non-Cash Add-back) | 389M | 514M | 481M | 458M | 419M | 390M | 383M | 367M | 302M | 254M | 219M | 174M | 131M | 104M | 83M |
| EBIT | 4.55B | 4.62B | 4.55B | 2.9B | 3.96B | 5.5B | 1.8B | 4.89B | 3.64B | 3.32B | 3.57B | 3.53B | 3.39B | 3.14B | 3.38B |
| Net Interest Income | 18.64B | 18.47B | 18.01B | 17B | 15.63B | 14.24B | 14.4B | 16.8B | 16.12B | 15.02B | 13.53B | 12.09B | 11.32B | 10.57B | 9.56B |
| Interest Income | 22.65B | 22.6B | 22.64B | 20.71B | 17.15B | 15.27B | 16.07B | 19.09B | 17.99B | 16.41B | 14.78B | 13.23B | 12.24B | 11.31B | 10.31B |
| Interest Expense | 4.02B | 4.13B | 4.63B | 3.71B | 1.52B | 1.03B | 1.67B | 2.29B | 1.87B | 1.39B | 1.25B | 1.14B | 922M | 742M | 745M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 4.68B | 4.62B | 4.55B | 2.9B | 3.96B | 5.5B | 1.8B | 4.89B | 3.64B | 3.32B | 3.57B | 3.53B | 3.39B | 3.14B | 3.38B |
| Pretax Margin % | 23.52% | 24.17% | 21.93% | 16.75% | 30.03% | 49.03% | 14.01% | 31.32% | 24.05% | 24.16% | 29.21% | 32.45% | 33.35% | 33.28% | 38.32% |
| Income Tax | 1.08B | 1.07B | 1.05B | 666M | 946M | 1.28B | 412M | 1.14B | 854M | 1.39B | 1.32B | 1.32B | 1.28B | 1.16B | 1.26B |
| Effective Tax Rate % | 23.14% | 23.13% | 23.15% | 22.93% | 23.88% | 23.3% | 22.93% | 23.33% | 23.44% | 41.79% | 36.95% | 37.3% | 37.71% | 37.01% | 37.23% |
| Net Income | 3.6B | 3.55B | 3.5B | 2.24B | 3.02B | 4.22B | 1.39B | 3.75B | 2.79B | 1.94B | 2.25B | 2.21B | 2.11B | 1.98B | 2.12B |
| Net Margin % | 18.08% | 18.58% | 16.86% | 12.91% | 22.86% | 37.61% | 10.8% | 24.01% | 18.41% | 14.06% | 18.42% | 20.35% | 20.77% | 20.96% | 24.05% |
| Net Income Growth % | 21.5% | 1.51% | 56.34% | -25.8% | -28.55% | 204.77% | -63.04% | 34.3% | 44.19% | -14.04% | 1.67% | 4.98% | 6.57% | -6.61% | - |
| Net Income (Continuing) | 3.6B | 3.55B | 3.5B | 2.24B | 3.02B | 4.22B | 1.39B | 3.75B | 2.79B | 1.94B | 2.25B | 2.21B | 2.11B | 1.98B | 2.12B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 10.40 | 9.29 | 8.55 | 5.19 | 6.15 | 7.34 | 2.27 | 5.56 | 3.74 | 2.42 | 2.71 | 2.65 | 2.78 | 2.38 | 2.55 |
| EPS Growth % | 32.65% | 8.65% | 64.74% | -15.61% | -16.21% | 223.35% | -59.17% | 48.66% | 54.55% | -10.7% | 2.26% | -4.68% | 16.81% | -6.67% | - |
| EPS (Basic) | - | 9.35 | 8.64 | 5.21 | 6.19 | 7.40 | 2.28 | 5.59 | 3.76 | 2.43 | 2.71 | 2.66 | 2.78 | 2.38 | 2.55 |
| Diluted Shares Outstanding | 346M | 357.84M | 400.6M | 423.5M | 483.4M | 569.3M | 590.8M | 673.5M | 746.9M | 799.7M | 831.5M | 835.5M | 757.6M | 831.17M | 831.17M |
| Basic Shares Outstanding | 342.4M | 357.84M | 396.5M | 421.2M | 480.4M | 564.6M | 589M | 670.2M | 742.3M | 795.6M | 829.2M | 833.8M | 757.4M | 830.27M | 830.27M |
| Dividend Payout Ratio | - | 12.02% | 11.37% | 18.14% | 14.39% | 11.85% | 37.55% | 15.51% | 19.14% | 23.05% | 9.51% | - | - | - | - |
Regulatory late fee compression
As reported in recent financial statements, Synchrony's gross margin has exhibited significant volatility, fluctuating from a low of 37.7% in 2024Q1 to a peak of 82.7% in 2026Q1, reflecting the inherent sensitivity of its net interest margin to funding costs and credit loss provisions.
The wide variance in gross margins suggests that the company's profitability is highly susceptible to the interplay between interest income and the provision for credit losses. Investors should monitor whether the recent expansion to 82.7% represents a sustainable improvement in yield or a temporary anomaly driven by shifts in the Retailer Share Arrangement (RSA) accounting.
Based on the provided income statement data, Synchrony's operating margin has shown inconsistent scaling, ranging from 11.4% in 2023Q4 to 34.9% in 2024Q1, indicating that overhead costs do not always move in lockstep with the company's gross profit generation during periods of credit normalization.
The lack of a linear relationship between gross profit and operating income suggests that management's expense discipline is frequently challenged by the variable nature of credit-related costs. This volatility warrants further investigation into whether the company can maintain operating leverage if revenue growth remains stagnant in the face of a tightening consumer credit environment.
According to the quarterly income statement data, Synchrony's net income has experienced sharp quarterly swings, such as the 132.6% EPS growth in 2024Q1 followed by a 39.8% contraction in 2025Q1, highlighting the impact of CECL accounting on reported bottom-line results.
The significant fluctuations in EPS appear to be heavily influenced by the front-loading of credit loss provisions required under current accounting standards. Analysts should interpret these earnings figures with caution, as they may reflect accounting-driven timing differences rather than a fundamental change in the underlying profitability of the lending portfolio.
While Synchrony maintains a robust market position, the potential for regulatory intervention regarding late fees, as noted in recent industry context, poses a material threat to the high-margin revenue streams that have historically supported the company's profitability during periods of elevated credit losses.
Short-term margin expansion may mask underlying risks associated with the company's reliance on fee-based income that is currently under regulatory scrutiny. If the CFPB successfully enforces stricter caps, the company may struggle to offset the resulting revenue decline, potentially leading to a permanent compression of its net interest margin.
Quick answers to the most common questions about buying SYF stock.
Synchrony Financial (SYF) is profitable, generating $3.55B in net income for the fiscal year ending 2025 with a net profit margin of 18.6%.
Synchrony Financial (SYF) reported an operating income of $4.62B, resulting in an operating profit margin of 24.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Synchrony Financial (SYF) generated $9.76B in gross profit for the year, representing a gross profit margin of 51.0%. This demonstrates the company's core pricing power and production efficiency.