Transcript: Bread Finl Hldgs Q2 2026 Earnings Conference Call

Bread Finl Hldgs (NYSE: BFH ) held its second-quarter earnings conference call on Thursday.

Below is the complete transcript from the call.

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For comprehensive financial data and transcripts, visit Access the full call at Summary Bread Financial Holdings Inc reported strong second-quarter 2026 results with net income of $146 million and a 22% year-over-year increase in tangible book value per share to $63.66.

The company achieved 11% growth in adjusted PPNR and 7% revenue growth, driven by a combination of accelerating credit sales, loan growth, and disciplined expense management.

Strategic expansions included partnerships with Ford, Raymour & Flanigan, and Ethan Allen, along with a significant rise in Bread Pay transactions, emphasizing flexible payment solutions.

Direct-to-consumer deposits grew 16% year over year, now comprising 50% of the company's funding mix, marking a significant milestone.

Management highlighted improving credit performance, a lower net loss rate, and a decrease in the delinquency rate, reflecting effective credit risk management.

The company issued $135 million in preferred stock and repurchased 7% of its common shares, demonstrating disciplined capital allocation and optimization of its capital stack.

Future guidance indicates low to mid-single-digit loan growth for 2026 and expectations of a continued stable macroeconomic environment.

The company continues to invest in digital and technology enhancements, including AI integration, to drive operational excellence and innovation.

Management expressed confidence in achieving long-term targets, including mid-20s% ROTC, driven by responsible loan growth and operating efficiency improvements.

Full Transcript OPERATOR Good morning, and welcome to Bread Financial Holdings Inc's second-quarter 2026 earnings conference call.

My name is Shannon, and I will be coordinating your call today.

At this time, all participants are in a listen-only mode.

Following today's presentation, the floor will be open for your questions.

To register a question, please press star followed by 1-1.

It is now my pleasure to introduce Mr.

Brian Verub, Head of Investor Relations at Bread Financial Holdings Inc.

The floor is yours.

Brian Verub, Head of Investor Relations Thank you.

A copy of the slides we will be reviewing and the earnings release can be found on the Investor Relations section of our website at breadfinancial.com.

On the call today we have Ralph Andretta, President and Chief Executive Officer, and Perry Beberman, Executive Vice President and Chief Financial Officer.

Before we begin, I would like to remind you that some of the comments made on today's call, and some of the responses to your questions, may contain forward-looking statements.

These statements are based on management's current expectations and assumptions and are subject to the risks and uncertainties described in the company's earnings release and other filings with the SEC.

Also on today's call, our speakers will reference certain non-GAAP financial measures, which we believe will provide useful information for investors.

Reconciliations of those measures to GAAP are included in our quarterly earnings materials posted on our Investor Relations website.

With that, I would like to turn the call over to Ralph Andretta.

Ralph Andretta, President and CEO Thank you, Brian, and good morning to everyone joining us today.

We are pleased with the strong financial results Bread Financial delivered in the second quarter.

We saw accelerating credit sales, continued loan and deposit growth, increased revenue and PPNR, and improving credit performance.

These results demonstrate the strength of our business model and the benefits of our continued emphasis on responsible growth and operational excellence, positioning Bread Financial for sustained, positive long-term performance.

For the quarter, net income was $146 million and tangible book value per common share increased 22% year over year to $63.66.

Adjusted PPNR grew 11% year over year, supported by 7% revenue growth and ongoing disciplined expense management.

Our strong execution across product mix and industry verticals is reflected in our second-quarter credit sales growth of 11% year over year and 5% end-of-period loan growth.

Our growth in the quarter was broad.