Bread Financial Lowers 2026 Net Loss-Rate Outlook as Revenue Rises 5%

Bread Financial Holdings Inc. lowered its 2026 net loss-rate outlook to below 7% after the measure improved in the third quarter, while revenue grew 5% year over year.

Revenue for the quarter ended Sept. 30, 2026, reached $1.017 billion, up $46 million from $971 million in the year-earlier quarter. Credit sales rose 9% to $7.4 billion as the lender’s loan balances also grew.

Adjusted diluted earnings were $3.84 per share, down 4% from $4.02 a year earlier. GAAP diluted earnings were $3.82 per share, compared with $3.96. The adjusted figure is a non-GAAP measure; the $0.02 difference from GAAP earnings reflects debt repurchases in the company’s reconciliation.

Net income fell 17% to $156 million from $188 million. The prior-year quarter included a $38 million favorable discrete tax item, which affected the year-over-year comparison.

Average credit card and other loans increased 6% to $18.6 billion. End-of-period loans totaled $18.9 billion, up 7%. These are different measures of the loan balance: one is an average for the quarter and the other is the balance at quarter-end.

Consumer deposits stood at $9.9 billion at quarter-end, a 21% increase from a year earlier. The delinquency rate declined to 5.57% from 6.04%, while the net loss rate fell to 6.40% from 7.39%.

The updated full-year outlook puts the net loss rate below 7%. “We now anticipate a 2026 net loss rate below 7.0%,” said Perry Beberman, executive vice president and chief financial officer.

Bread Financial’s products include savings accounts, pay-over-time plans and co-branded, private-label and general-purpose credit cards. Its quarterly results include revenue, earnings, loan balances and credit performance across those businesses.