Bread Financial (BFH) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

For the quarter ended December 2025, Bread Financial Holdings (BFH) reported revenue of $975 million, up 5.3% over the same period last year. EPS came in at $2.07, compared to $0.41 in the year-ago quarter.

The reported revenue represents a surprise of +3.62% over the Zacks Consensus Estimate of $940.92 million. With the consensus EPS estimate being $0.40, the EPS surprise was +417.5%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Bread Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Net Interest Margin: 18.9% versus 18% estimated by three analysts on average.
• Net loss rate (Net principal losses as a percentage of average credit card and other loans): 7.4% versus the three-analyst average estimate of 7.7%.
• Tier 1 capital ratio: 13% compared to the 13.6% average estimate based on two analysts.
• Total risk-based capital ratio: 16.8% compared to the 16.6% average estimate based on two analysts.
• Total interest income: $1.25 billion versus $1.22 billion estimated by four analysts on average.
• Interest on cash and investment securities: $38 million compared to the $39.45 million average estimate based on four analysts.
• Interchange revenue, net of retailer shares arrangements: $-127 million compared to the $-121 million average estimate based on four analysts.
• Interest and fees on loans: $1.21 billion compared to the $1.18 billion average estimate based on four analysts.
• Net interest income: $1.05 billion versus the four-analyst average estimate of $1.01 billion.
• Total non-interest income: $-72 million versus $-66.41 million estimated by four analysts on average.
• Other: $55 million versus $54.59 million estimated by four analysts on average.

View all Key Company Metrics for Bread Financial here>>>

Shares of Bread Financial have returned -7.9% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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