BREAD FINANCIAL HOLDINGS, INC. (BFH) FY2025 10-K Annual Report
BREAD FINANCIAL HOLDINGS, INC. (BFH) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 13, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
BREAD FINANCIAL HOLDINGS, INC. FY2025 10-K Analysis
Business Overview
- • Core business model: Credit card issuance and servicing with associated financial services
- • Strategic outsourcing of credit card processing services initiated June 2022, with FDIC consent order issued Nov 2023 on IT and compliance shortcomings
- • Capital ratios: Common equity tier 1 at 13.0% (2025) vs 12.4% (2024), total capital $3.31B with subordinated notes increased by $400M in 2025
- • Allowance for credit losses sensitive to assumptions; 100 bps increase could change reserve by ~$184M
- • No goodwill impairment indicated in 2025 annual qualitative assessment despite valuation uncertainties
Management Discussion & Analysis
- • Revenue $3,845M in 2025, flat YoY (+$7M vs $3,838M in 2024), down 11% from 2023 ($4,289M)
- • Operating margin approx. 16.0% in 2025 (Income from continuing ops $521M / Revenue $3,845M) vs 7.3% in 2024 ($279M/$3,838M)
- • Best performing segment: Direct-to-consumer deposits growth 11% to $8,523M; worst—Credit card and other loans down 1% to $17,850M average balance
- • Cash flow/use: Declared dividend $0.86/share (up 2%), total non-interest expenses down 3% to $1,988M; repurchased debt cost impact $74M (2025) reducing expenses
- • Forward outlook: Management cautious on macro risks, maintaining prudent credit loss reserves (11.2% reserve rate), emphasizing liquidity and capital adequacy amidst inflation and unemployment uncertainties
Risk Factors
- • No specific regulatory or legal risk disclosed in risk_factors section
- • No geopolitical or macroeconomic threat with concrete exposure detailed in risk_factors section
- • Cybersecurity risk oversight by Board Risk & Technology Committee, Audit Committee reviews major financial risk exposures
- • No competitive or market disruption risk with named competitor or technology detailed in risk_factors section
- • Management team with CISO, CRO, CORO responsible for cybersecurity risk management, CISO reports to EVP and CTO with 25 years experience
BREAD FINANCIAL HOLDINGS, INC. FY2025 Key Financial MetricsXBRL
Revenue
$3.8B
▲ +0.2% YoY
Net Income
$518M
▲ +87.0% YoY
Net Margin
13.5%
▲ +625bp YoY
ROE
15.6%
▲ +649bp YoY
Total Assets
$22.7B
▼ -1.0% YoY
EPS (Diluted)
$10.89
▲ +98.4% YoY
Operating Cash Flow
$2.1B
▲ +12.5% YoY
Source: XBRL data from BREAD FINANCIAL HOLDINGS, INC. FY2025 10-K filing on SEC EDGAR. All figures in USD.
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