Bread Financial (BFH) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 23, 2026 astatine 8:55 AM CDT 29 min read

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Thursday, April 23, 2026 astatine 8:30 a.m. ET

• President and Chief Executive Officer — Ralph Andretta

• Executive Vice President and Chief Financial Officer — Perry Beberman

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Ralph Andretta: Thank you, Brian, and bully greeting to everyone joining the call. Before speaking to our results, arsenic we observe 30 years successful concern and 25 years arsenic a nationalist institution successful 2026, I privation to instrumentality a infinitesimal to convey our existent and erstwhile associates. Your committedness to excellence successful however we service some our marque partners and customers is reflective of our enduring value-driven culture. We are highly arrogant of our past and the continued translation of our company. We stay committed to delivering connected our marque committedness each and each day.

Today, Bread Financial Holdings, Inc. reported beardown archetypal 4th results, which were underscored by a instrumentality to indebtedness maturation alongside expanding maturation successful recognition income and continued betterment successful our recognition metrics. Credit income grew 7% twelvemonth implicit twelvemonth successful the archetypal quarter, driven by palmy caller spouse launches crossed our afloat merchandise suite and accrued buying enactment with our long-standing partners, particularly among Gen Z and millennials. Consumers are being thoughtful and budgeting actively amid little sentiment and assurance and higher substance costs. In the quarter, we saw year-over-year income maturation crossed a wide acceptable of categories including wellness and beauty, jewelry, and question and entertainment. Additionally, our expanding location vertical grew nicely successful the quarter.

In the existent macroeconomic environment, consumers proceed to show resilience arsenic highlighted by recognition income maturation arsenic good arsenic improving delinquency rates. We volition proceed to intimately show and accommodate appropriately to user walk and outgo behaviors. On the caller marque spouse front, we were excited to motorboat caller recognition paper relationships with Ford and Ethan Allen successful the quarter. Our semipermanent statement with Ford, which has 1 of the largest trader networks successful the U.S. with astir 3 1000 franchise dealerships, includes co-brand recognition paper and installment indebtedness programs.

Leveraging our heavy expertise successful the automotive retail landscape, the programme volition summation lawsuit loyalty by enhancing their car ownership acquisition to gain rewards and expanding accessibility to subscriptions, parts, and services. The summation of Ethan Allen, America's fig 1 premium furnishings retailer with astir 140 plan centers and a important online beingness successful the U.S., strengthens our prominence successful the location vertical with flexible financing options. We are besides offering Bread Pay installment loans for AAA, Dell, and Ford, arsenic we proceed to grow this merchandise offering. Additionally, we are pleased to denote the caller broad suite of outgo options with Academy Sports, including co-brand, backstage label, and installment loans.