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Get filing alertsBread Financial reports Q2 net income up 5% to $146M, raises full-year guidance
Filed July 23, 2026 · Period ending July 23, 2026 · ~1 min read
Key Changes
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Q2 2026 net income of $146M, up 5% YoY; diluted EPS $3.55, up 21% on 14% lower share count from buybacks. Credit sales grew 11% to $7.5B driven by new partnerships and general-purpose spending.
Exhibit 99.1 view on EDGAR → -
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Delinquency rate improved 48 bps to 5.25%; net loss rate down 90 bps to 6.98%. Company raised full-year net loss rate guidance to 7.0%–7.1% range, reflecting disciplined credit risk management.
Exhibit 99.1 view on EDGAR → -
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Exhibit 99.1 view on EDGAR →
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Repurchased 2.8M common shares for $241M (7% of outstanding shares since Q1 end); issued $135M of 8.875% preferred stock. Tangible book value per common share up 22% YoY to $63.66.
Exhibit 99.1 view on EDGAR → -
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Board declared quarterly dividends: $0.23/common share, $0.539/depositary share (Series A preferred), $0.758/depositary share (Series B preferred), all payable September 15, 2026.
Item 8.01 verify on EDGAR →
Summary
Bread Financial reported solid second-quarter 2026 results and raised its full-year guidance, signaling momentum in its co-brand credit card and Bread Pay platform businesses. Net income of $146 million rose 5% year-over-year, while diluted EPS jumped 21% to $3.55, benefiting from aggressive share repurchases that reduced the common share count 14%.
Credit sales grew 11% to $7.5 billion, driven by new partnerships and increased general-purpose spending, while end-of-period loans expanded 5% to $18.5 billion. Credit quality improved materially: the delinquency rate fell 48 basis points to 5.25% and the net loss rate declined 90 basis points to 6.98%, reflecting disciplined underwriting and the maturation of higher-quality new account acquisitions.
Management raised full-year guidance, now expecting low- to mid-single-digit growth in both average loans and total revenue (up from prior expectations) and tightened the net loss rate forecast to 7.0%–7.1%. The company also strengthened its capital structure, issuing $135 million of preferred stock while repurchasing $241 million of common shares and increasing tangible book value per share 22% year-over-year to $63.66. The Board declared regular quarterly dividends on both preferred series and common stock, payable in September.
Section-by-Section Diff
Event · Item 7.01 — Regulation FD Disclosure
Bread Financial posted a Q2 2026 investor presentation to its website for use in analyst and investor meetings.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
on July 23, 2026, the Company posted an investor presentation to the Company’s website (at www.breadfinancial.com) on the “Investors” page under “Events & Presentations,” where the Company routinely posts, and intends to do so in the future, announcements, events, presentations, news releases and other investor information. The investor presentation may be used by the Company’s senior management during meetings and calls with analysts, investors and other market participants.
The company posted a Q2 2026 investor presentation to its website for use by senior management in meetings with analysts and investors. This is a routine disclosure of supplemental materials accompanying the earnings release.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net income of $146 million increased $7 million, or 5%, driven by solid loan growth resulting in both 7% revenue growth and a higher provision for credit losses.
Bread Financial reported second quarter 2026 net income of $146 million, up 5% year-over-year, driven by loan growth that increased revenue 7% while also requiring a higher provision for credit losses. Earnings per diluted common share were $3.55, up 5% from $2.94 in the prior year quarter, benefiting from share repurchases that reduced the share count 14%.
Added in current filing · view on EDGAR →
Credit sales were $7.5 billion, an increase of $0.7 billion, or 11%, driven by growth in our new partnerships and increased general-purpose spending. ... Average credit card and other loans of $18.2 billion were up 3%, and end-of-period credit card and other loans of $18.5 billion increased 5%, benefiting from growth in our new partnerships and improved credit sales.
Credit sales grew 11% year-over-year to $7.5 billion, driven by new partnerships and increased general-purpose spending. Average loans increased 3% to $18.2 billion and end-of-period loans grew 5% to $18.5 billion, reflecting the company's success in expanding its co-brand portfolio and Bread Pay platform.
Event · Exhibit 99.2
Bread Financial reported Q2 2026 earnings with net income of $146M ($3.55/share), up 5% YoY, driven by 7% net interest income growth.
Added in current filing · view on EDGAR →
Net income available to common stockholders $ 144 $ 179 $ 53 $ 188 $ 139 (19) % 4 % $ 324 $ 276 17 %
Bread Financial reported Q2 2026 net income available to common stockholders of $144 million, up 4% from $139 million in Q2 2025, though down 19% sequentially from Q1 2026's $179 million. Diluted earnings per share were $3.55, up 21% year-over-year from $2.94. For the first half of 2026, net income available to common stockholders totaled $324 million, up 17% from $276 million in the first half of 2025.
Added in current filing · view on EDGAR →
Net interest income 1,039 1,067 1,047 1,032 974 (3) % 7 % 2,106 1,980 6 %
Net interest income for Q2 2026 was $1,039 million, up 7% from $974 million in Q2 2025, driven by loan growth and improved net interest margin. Year-to-date net interest income reached $2,106 million, up 6% from $1,980 million in the prior-year period. The net interest margin expanded to 18.49% in Q2 2026 from 17.71% in Q2 2025.
Added in current filing · view on EDGAR →
Delinquency rate (1) 5.25 % 5.59 % 5.75 % 6.04 % 5.73 % (0.34) % (0.48) %
The delinquency rate improved to 5.25% at the end of Q2 2026, down 48 basis points from 5.73% in Q2 2025 and down 34 basis points sequentially from 5.59% in Q1 2026. The net loss rate also improved to 6.98%, down 90 basis points year-over-year from 7.88%. The reserve rate declined to 11.23% from 11.89% a year earlier, reflecting the improved credit performance.
Added in current filing · view on EDGAR →
End-of-period credit card and other loans 18,477 18,135 18,805 17,655 17,656 2 % 5 %
Credit card and other loans totaled $18,477 million at the end of Q2 2026, up 5% from $17,656 million a year earlier and up 2% sequentially from $18,135 million in Q1 2026. Credit sales for the quarter were $7,537 million, up 11% year-over-year from $6,814 million.
Added in current filing · view on EDGAR →
Direct-to-consumer (retail) $ 9,358 $ 8,708 $ 8,522 $ 8,188 $ 8,080 7 % 14 %
Direct-to-consumer retail deposits grew to $9,358 million at the end of Q2 2026, up 14% from $8,080 million a year earlier and up 7% sequentially. Total deposits reached $14,732 million, up 10% year-over-year. The company reduced its reliance on higher-cost borrowings, with debt issued by consolidated VIEs declining 21% year-over-year to $0.0M and long-term debt down 26% to $838 million.
Event · Exhibit 99.3
Added in current filing · view on EDGAR →
On the Company’s 8.625% Non-Cumulative Perpetual Preferred Stock, Series A (NYSE: BFH-PrA), the Board of Directors declared a quarterly cash dividend of $21.56 per share (equivalent to $0.539 per depositary share, each representing a 1/40th interest in a share of preferred stock). The dividend is payable on September 15, 2026 to preferred stockholders of record at the close of business on August 31, 2026.
The Board declared a quarterly dividend of $21.56 per share ($0.539 per depositary share) on the 8.625% Series A preferred stock, payable September 15, 2026 to holders of record on August 31, 2026.
Added in current filing · view on EDGAR →
On the Company’s 8.875% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (NYSE: BFH-PrB), the Board of Directors declared a quarterly cash dividend of $30.32 per share (equivalent to $0.758 per depositary share, each representing a 1/40th interest in a share of preferred stock). The dividend is payable on September 15, 2026 to preferred stockholders of record at the close of business on August 31, 2026.
The Board declared a quarterly dividend of $30.32 per share ($0.758 per depositary share) on the 8.875% Series B preferred stock, payable September 15, 2026 to holders of record on August 31, 2026.
Added in current filing · view on EDGAR →
On the Company’s common stock, the Board of Directors declared a quarterly cash dividend of $0.23 per share, payable on September 15, 2026 to common stockholders of record at the close of business on August 31, 2026.
The Board declared a quarterly dividend of $0.23 per common share, payable September 15, 2026 to holders of record on August 31, 2026.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 27, 2026 · How we verify