Synchrony Renews Polaris Deal to Boost Powersports Finance

Synchrony Financial SYF has renewed its long-standing consumer financing partnership with Polaris, extending a relationship that has supported dealers and customers for nearly two decades. The agreement ensures continued access to promotional financing and installment loans for Polaris vehicles, parts, accessories, riding gear and service packages across the company’s nationwide U.S. dealer network.

Through this collaboration, SYF will offer tailored financing solutions designed to make high-ticket powersports purchases more accessible. Polaris’ lineup includes popular off-road vehicles such as RANGER, RZR, GENERAL, XPEDITION, Sportsman all-terrain vehicles, snowmobiles and Slingshot models. Financing support remains a key sales driver in this category, where purchases are discretionary and often seasonal.

One key aspect of the partnership is Synchrony PRISM, the company’s innovative, data-driven underwriting platform. PRISM taps into a wider range of credit insights that go beyond the usual metrics. Its goal is to enhance responsible credit access while also helping dealers close sales more quickly with its efficient decision-making tools.

This renewal emphasizes SYF’s strategy of building stronger connections in specialty retail sectors. Financing for powersports usually offers appealing yields compared to prime credit categories, which helps boost net interest margins. At the same time, the company’s embedded finance model enhances merchant loyalty and creates a steady flow of repeat transactions through parts, upgrades and protection plans. Synchrony’s net interest margin improved 48 basis points (bps) year over year to 15.2% in 2025.

For SYF, continued partnerships with established brands like Polaris also strengthen its merchant ecosystem while driving repeat usage and cross-selling opportunities. Its focus on risk-adjusted growth, digital underwriting and dealer-centric tools positions it favorably within the lifestyle and recreational financing segment. If consumer spending in areas like experiences and outdoor activities remains resilient, this partnership could support steady receivables growth and margin stability over the medium term.

SYF’s Stock Price Performance

Over the past year, Synchrony shares have risen 21.9% against the industry’s fall of 18%.

SYF’s Zacks Rank & Key Picks

SYF currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks in the broader finance space are LendingClub Corporation LC, WisdomTree, Inc. WT and Piper Sandler Companies PIPR, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for LendingClub’s current-year earnings of $1.64 per share has witnessed two upward revisions in the past 30 days against none in the opposite direction. LendingClub beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 39.1%. The consensus estimate for current-year revenues is pegged at $1.1 billion, implying 6.2% year-over-year growth.

The Zacks Consensus Estimate for WisdomTree’s current-year earnings of $1.10 per share has witnessed three upward revisions in the past 30 days against no movement in the opposite direction. WisdomTree beat earnings estimates in two of the trailing four quarters and met twice, with the average surprise being 8.9%. The consensus estimate for current-year revenues is pegged at $634.5 million, calling for 28.5% year-over-year growth.

The Zacks Consensus Estimate for Piper Sandler’s current-year earnings is pegged at $18.51 per share and has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Piper Sandler beat earnings estimates in each of the trailing four quarters, with the average surprise being 48%. The consensus estimate for current-year revenues is pegged at $2 billion, calling for 5.1% year-over-year growth.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research