Bread Financial Holdings (BFH): First Take: EPS beat on stronger credit, higher fees; Takes up loan and revenue growth guide

Research evidence excerpt

Bread Financial Holdings (BFH): First Take: EPS beat on stronger credit, higher fees; Takes up loan and revenue growth guide

Equity Research

23 July 2026 | 8:43AM EDT

Bread Financial Holdings (BFH): First Take: EPS beat on stronger credit,

higher fees; Takes up loan and revenue growth guide

Bottom line on the stock: Overall, this was a strong quarter and guide, in our view, Ryan M. Nash, CFA

+1(212)902-8963 | ryan.nash@gs.com

with BFH showing stronger than expected top-line trends and disciplined expenses Goldman Sachs & Co. LLC

as well as a beat on credit. The revenue beat was driven largely by higher fee income Lucas Haimes

as BFH had guided to a ~$30mn QoQ step up in RSA net of interchange and it moved +1(212)902-3305lucas.haimes@gs.com|

up modestly QoQ which helped drive the beat. Average receivables came in higher Goldman Sachs & Co. LLC

than expected and capital return remained robust, with BFH repurchasing ~$240mn

of shares in the quarter which was well ahead of expectations (street at $120mn). In

terms of its guidance, we think it points to ~1% upside to PPNR expectations in 2H

on higher revenues along with NCOs at the mid-point of 7.05% (street at 7.09%:

25bps lower than prior expectations).

When we put it all together, this was a solid quarter and should be well-received. We

think the market will be focused on the drivers of the loan growth in 2H and if BFH

can reach the high-end as well as NIM / fee expectations as well as where credit is

headed and a path back to 6% losses over time. Additionally, with capital return

remaining elevated we think this should help support earnings growth as well as

share performance. We think positioning has been positive into the print given

improving credit performance, capital return, and buybacks and but we think this