Bread Financial Holdings Inc (NYSE:BFH) Reports Mixed Q2 2025 Earnings with Revenue Miss but Strong EPS Beat

Bread Financial Holdings Inc (NYSE:BFH) reported its second-quarter 2025 earnings, delivering mixed results relative to analyst expectations. The company posted revenue of $929 million, falling short of the consensus estimate of $949.3 million. However, earnings per share (EPS) came in at $3.14, significantly surpassing the estimated $1.89. This divergence between revenue and profitability metrics has led to a muted pre-market reaction, with shares declining approximately 1.4%.

Key Financial Highlights

• Revenue Miss: The $929 million figure represents a 2.1% shortfall against expectations, suggesting softer-than-anticipated sales performance.
• Strong EPS Beat: The $3.14 EPS figure exceeded estimates by 66%, indicating improved cost management or one-time benefits.
• Credit Metrics: The company reported a net loss rate of 7.8% for June 2025, slightly down from 7.9% in the prior quarter, while delinquency rates improved to 5.7% from 6.0% year-over-year.

Market Reaction

The pre-market dip suggests investors are weighing the revenue miss against the EPS beat. While profitability outperformed, the top-line weakness may raise concerns about growth sustainability, particularly given the broader economic environment. Over the past month, BFH shares have gained nearly 15%, reflecting optimism ahead of earnings, but today’s reaction indicates some profit-taking or caution.

Outlook & Analyst Estimates

The press releases did not provide explicit forward guidance, leaving analysts' estimates as the primary benchmark. For Q3 2025, revenue is projected at $999.9 million, with EPS at $2.11. Full-year 2025 revenue is forecast at $3.93 billion, with EPS at $7.13. Investors will be watching for signs of whether the Q2 EPS strength is repeatable or driven by temporary factors.

Additional Developments

Alongside earnings, Bread Financial announced:

• A quarterly dividend of $0.21 per share, payable September 12, 2025.
• A modified Dutch auction tender offer for up to $150 million in senior and subordinated notes, aimed at optimizing its debt structure.

For a deeper dive into Bread Financial’s earnings and estimates, visit the earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.