Bread Financial Holdings, Inc. (BFH)

Bread Financial's stock price increased by 42.07% between January 10, 2025, and January 8, 2026. The company's Q2 2025 EPS exceeded analyst estimates, and Q3 2025 net income and EPS also surpassed forecasts. Investor sentiment was influenced by analyst upgrades and optimism regarding potential Federal Reserve rate cuts. The stock price fell due to President Trump's proposed 10% cap on credit card interest rates. The company completed a share repurchase program and expanded it, signaling confidence in its cash flow and improved risk profile.

Demand for Bread Financial's products and services typically follows a seasonal pattern. There are modest increases in the second and third quarters, followed by a larger increase in the fourth quarter due to holiday spending. A significant reduction in balances is observed in the first quarter as borrowers pay off holiday debt. Loyalty programs tend to maintain strong customer loyalty during the holiday season.

Bread Financial Holdings, Inc. operates in the Financial Services sector, focusing on Consumer Finance and Credit Services. The company provides payment, lending, and saving solutions, including private label and co-brand credit card programs, BNPL options, direct-to-consumer credit cards, and savings products through Bread Savings. Revenue is generated through interest and fees on its loan portfolio, acting as a bank and technology partner for retailers.

Bread Financial Holdings, Inc. primarily serves customers and consumer-based industries in North America. The company's corporate headquarters is located in Columbus, Ohio, U.S.

Bread Financial's reputation may have been impacted by a Wall Street Journal report in October 2024, which indicated that the company would raise its soft interest rate to 29.99% and add additional fees to customer accounts in anticipation of a CFPB ruling reducing late payment fees. This move could be perceived negatively by consumers and consumer advocacy groups.

Bread Financial Holdings, Inc. is largely controlled by institutional money managers including Vanguard Group Inc and BlackRock, Inc. Patrick J. Welsh is the largest individual insider owner, owning 19.64 million shares, representing 43.02% of the company. Other significant individual insider shareholders include Russell L. Carson, Thomas E. McInerney, Anthony J. Denicola, Paul B. Queally, D. Scott MacKesy, Jonathan M. Rather, John D. Clark, James R. Matthews, and Sanjay Swani.