Bread Financial Holdings, Inc. (BFH): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde dynamique des services financiers, Bread Financial Holdings, Inc. (BFH) apparaît comme une puissance innovante, transformant la façon dont les consommateurs interagissent avec le crédit et les solutions financières numériques. En tirant parti de la technologie de pointe et des partenariats stratégiques, BFH a conçu un modèle commercial unique qui s'adresse à la génération numérique, offrant des produits de crédit flexibles, des expériences en ligne transparentes et des services financiers personnalisés qui résonnent avec les milléniaux et les consommateurs de génération Z à la recherche moderne, Outils financiers adaptables.

Bread Financial Holdings, Inc. (BFH) - Modèle d'entreprise: partenariats clés

Partenariats de traitement des paiements Visa et MasterCard

Au quatrième trimestre 2023, Bread Financial conserve des partenariats de traitement des paiements critiques avec:

Partenaire	Volume de transaction	Durée du partenariat
Visa	Valeur de transaction annuelle de 42,3 milliards de dollars	En cours depuis 2015
MasterCard	Valeur de transaction annuelle de 37,6 milliards de dollars	En cours depuis 2017

Collaborations de partenaires de vente au détail

Les principaux partenariats de vente au détail comprennent:

• Amazon: programme de carte de crédit co-marquée générant 1,2 milliard de dollars de revenus annuels
• Walmart: Services de carte de crédit représentant 18,5% du portefeuille de partenariats de vente au détail
• Cible: partenariat d'émission de cartes de crédit d'une valeur de 890 millions de dollars par an

Plateformes technologiques financières

Partenaire fintech	Focus de partenariat	Valeur d'intégration annuelle
Plaid	Intégration bancaire numérique	215 millions de dollars
Bande	Technologies de traitement des paiements	180 millions de dollars

Banques numériques et fournisseurs de technologies de carte de crédit

Les partenariats des fournisseurs de technologie comprennent:

• FIS Global: Core Banking Technology Intégration
• Fiserv: support d'infrastructure de paiement numérique
• Jack Henry & Associés: solutions de technologie bancaire

Les sociétés d'analyse de données et de crédits tierces

Partenaire de données	Services fournis	Valeur du contrat annuel
Expérien	Notation du crédit et évaluation des risques	95 millions de dollars
Transunion	Analyse des données de crédit aux consommateurs	87 millions de dollars

Bread Financial Holdings, Inc. (BFH) - Modèle d'entreprise: Activités clés

Émission et gestion de carte de crédit

Au troisième rang 2023, Bread Financial a géré un portefeuille de cartes de crédit avec les caractéristiques suivantes:

Métrique	Valeur
Créiteurs de cartes de crédit total	5,3 milliards de dollars
Comptes de carte de crédit actifs	Environ 3,2 millions
Limite moyenne de crédit	2 750 $ par compte

Développement de solutions de paiement numérique

Les principales initiatives de paiement numérique comprennent:

• Intégration de paiement d'application mobile
• Traitement des transactions en temps réel
• Technologies de paiement sans contact

Services de prêts à la consommation

Catégorie de prêt	Solde total en suspens
Prêts personnels	1,2 milliard de dollars
Financement de point de vente	875 millions de dollars

Évaluation et gestion des risques de crédit

Métriques de gestion des risques:

• Taux de charge net: 4,7%
• Taux de délinquance de 90 jours: 2,3%
• Provision pour les pertes de crédit: 312 millions de dollars en 2023

Service client et opérations de support

Métrique de service	Performance
Interactions annuelles sur le support client	12,5 millions
Temps de réponse moyen	Moins de 3 minutes
Évaluation de satisfaction du client	87%

Bread Financial Holdings, Inc. (BFH) - Modèle d'entreprise: Ressources clés

Infrastructure de technologie numérique avancée

Au quatrième trimestre 2023, Bread Financial a investi 78,3 millions de dollars dans l'infrastructure technologique numérique, soutenant plus de 62,4 millions de comptes clients actifs.

Investissement technologique	Montant
Dépenses d'infrastructure numérique	78,3 millions de dollars
Comptes clients actifs	62,4 millions
Plates-formes de cloud computing	3 fournisseurs majeurs

Algorithmes de notation de crédit propriétaire

Le système de notation de crédit de Bread Financial traite environ 1,2 million de demandes de crédit par mois.

• Modèles d'apprentissage automatique
• Évaluation des risques en temps réel
• Analytique prédictive avancée

Expertise en technologie financière

L'entreprise emploie 2 847 professionnels de la technologie et des finances en décembre 2023.

Travail technologique	Nombre
Total des professionnels de la technologie	2,847
Data scientifiques	387
Ingénieurs logiciels	642

Base de données client étendue

Bread Financial maintient une base de données de 62,4 millions de profils de clients actifs avec des histoires complètes de transactions financières.

• 62,4 millions de profils de clients actifs
• Suivi des transactions détaillées
• Intégration de données multicanaux

Systèmes de gestion des risques robustes

L'infrastructure de gestion des risques soutient un portefeuille de prêts de 14,2 milliards de dollars avec un taux de remise nette de 3,8% en 2023.

Métriques de gestion des risques	Valeur
Portefeuille de prêts totaux	14,2 milliards de dollars
Taux de redevance net	3.8%
Systèmes de détection de fraude	Surveillance en temps réel

Bread Financial Holdings, Inc. (BFH) - Modèle d'entreprise: propositions de valeur

Carte de crédit flexible et produits de prêt

Au quatrième trimestre 2023, Bread Financial offre 1,2 milliard de dollars de créances de cartes de crédit totales. Leur portefeuille de produits comprend:

• Cartes de crédit au détail
• Prêts personnels non garantis
• Achetez maintenant, payez plus tard (BNPL) Solutions

Type de produit	Créiteurs totaux	Limite moyenne de crédit
Cartes de crédit au détail	892 millions de dollars	$3,500
Prêts personnels	310 millions de dollars	$5,200

Processus de demande et d'approbation rapides

Statistiques des applications numériques pour 2023:

• Taux d'achèvement de l'application en ligne: 68%
• Temps d'approbation moyen: 2,7 minutes
• Part des applications mobiles: 47% du total des applications

Solutions financières personnalisées

Mesures de personnalisation en 2023:

Catégorie de personnalisation	Pourcentage de clients
Limites de crédit personnalisées	72%
Programmes de récompenses sur mesure	65%

Taux d'intérêt compétitifs

Gammes de taux d'intérêt pour 2023:

• Cartes de crédit: 16,99% - 29,99%
• Prêts personnels: 7,99% - 24,99%
• APR moyen: 21,4%

Programmes de récompenses et de cashback

Statistiques du programme de récompenses pour 2023:

Type de récompense	Taux de participation	Cash-back annuel moyen
Récompenses en cashback	58%	$276
Récompenses basées sur des points	42%	$342

Bread Financial Holdings, Inc. (BFH) - Modèle d'entreprise: relations avec les clients

Plates-formes de libre-service numériques

Au quatrième trimestre 2023, Bread Financial a rapporté 5,7 millions d'utilisateurs de plate-forme numérique actifs. La plate-forme numérique en libre-service a traité 42,3 millions de transactions numériques avec une valeur de transaction totale de 3,2 milliards de dollars.

Métrique de la plate-forme numérique	Performance de 2023
Utilisateurs numériques actifs	5,7 millions
Transactions numériques	42,3 millions
Valeur totale de transaction	3,2 milliards de dollars

Support client personnalisé

Le pain financier maintient un Centre de support client 24/7 avec 1 200 représentants dédiés au service client. Le temps de réponse moyen du support client est de 3,2 minutes entre les canaux numériques et téléphoniques.

Engagement des applications mobiles

L'application mobile de l'entreprise a enregistré 3,9 millions d'utilisateurs actifs mensuels en 2023, avec un taux d'engagement des utilisateurs de 68%. Les transactions d'applications mobiles représentaient 47% du total des transactions numériques.

Métrique de l'application mobile	Performance de 2023
Utilisateurs actifs mensuels	3,9 millions
Taux d'engagement des utilisateurs	68%
Pourcentage de transaction mobile	47%

Gestion de compte en ligne

Les fonctionnalités de gestion des comptes en ligne permettent aux clients de:

• Afficher les soldes de compte en temps réel
• Effectuer des paiements instantanés
• Mettre à jour les informations personnelles
• Suivre les modèles de dépenses

Limite de crédit proactive et recommandations de produits

En 2023, Bread Financial a mis en œuvre des systèmes de recommandation axés sur l'IA qui ont généré 2,1 millions d'offres de produits personnalisées. Des recommandations d'augmentation de la limite de crédit ont été faites à 680 000 clients éligibles, avec un taux d'acceptation de 42%.

Métrique de recommandation	Performance de 2023
Offres de produits personnalisés	2,1 millions
Recommandations d'augmentation de la limite de crédit	680,000
Taux d'acceptation de recommandation	42%

Bread Financial Holdings, Inc. (BFH) - Modèle d'entreprise: canaux

Application bancaire mobile

Au quatrième trimestre 2023, l'application bancaire mobile de Bread Financial a déclaré 2,3 millions d'utilisateurs actifs. L'application prend en charge plus de 5,2 millions de comptes enregistrés totaux avec un taux d'engagement mensuel de 68%.

Métrique de l'application mobile	Statistique
Total des téléchargements d'applications	4,7 millions
Utilisateurs actifs mensuels	2,3 millions
Volume de transaction	1,2 milliard de dollars par trimestre

Plateforme de site Web en ligne

La plate-forme en ligne de l'entreprise génère 42% du total des revenus numériques, avec 3,8 millions de visiteurs mensuels uniques.

• Trafficage du site Web: 3,8 millions de visiteurs mensuels uniques
• Part des revenus numériques: 42%
• Durée moyenne de la session: 7,2 minutes

Marketing numérique direct

Le budget du marketing numérique de Bread Financial a atteint 47,3 millions de dollars en 2023, ciblant 1,6 million de clients potentiels grâce à des campagnes numériques personnalisées.

Métrique du marketing numérique	Valeur
Budget marketing annuel	47,3 millions de dollars
Public cible	1,6 million de clients potentiels
Taux de conversion	3.4%

Sites Web de vente au détail partenaire

Partner Network comprend 127 sites Web de détail, générant 283 millions de dollars de revenus collaboratifs pour 2023.

• Nombre de partenaires de vente au détail: 127
• Revenus de réseau partenaire: 283 millions de dollars
• Taux de commission des partenaires moyens: 5,6%

Centres d'appels de service client

Bread Financial exploite 6 centres d'appels avec 1 742 représentants du service à la clientèle, gérant 2,9 millions d'interactions client tous les mois.

Métrique du centre d'appel	Statistique
Centres d'appels totaux	6
Représentants du service à la clientèle	1,742
Interactions mensuelles du client	2,9 millions
Temps de résolution moyen	12,4 minutes

Bread Financial Holdings, Inc. (BFH) - Modèle d'entreprise: segments de clientèle

Millennials et consommateurs de la génération Z

Au quatrième trimestre 2023, le pain cible environ 72,2 millions de milléniaux et 68,3 millions de consommateurs de génération Z aux États-Unis.

Groupe d'âge	Taille de la population	Pénétration de la carte de crédit
Millennials (25-40 ans)	72,2 millions	58.4%
Gen Z (18-24 ans)	68,3 millions	36.2%

Acheteurs en ligne

En 2023, Bread Financial dessert environ 164,7 millions d'acheteurs en ligne aux États-Unis.

• Valeur marchande du commerce électronique: 905,6 milliards de dollars
• Transactions de vente au détail en ligne: 21,8% du total des ventes au détail
• Dépenses en ligne annuelles moyennes par consommateur: 3 642 $

Individus de crédibilité

Bread Financial cible 68,5 millions de consommateurs avec des antécédents de crédit limités ou pas.

Plage de cotes de crédit	Nombre de consommateurs	Part de marché potentiel
En dessous de 600 (crédit limité)	43,2 millions	22.7%
Aucun historique de crédit	25,3 millions	13.3%

Consommateurs à la recherche d'options de crédit flexibles

Bread Financial dessert 56,4 millions de consommateurs à la recherche de solutions de crédit alternatives.

• Taille du marché des prêts personnels: 222,3 milliards de dollars
• Utilisateurs de crédit alternatifs: 28,6% du marché total du crédit à la consommation
• Ligne de crédit alternative moyenne: 6 750 $

Utilisateurs de services financiers numériques d'abord

En 2023, Bread Financial cible 87,6 millions de consommateurs de services financiers numériques.

Métrique bancaire numérique	Total utilisateurs	Pourcentage
Utilisateurs de la banque mobile	87,6 millions	65.3%
Utilisateurs de la plate-forme de paiement numérique	76,4 millions	57.1%

Bread Financial Holdings, Inc. (BFH) - Modèle d'entreprise: Structure des coûts

Maintenance des infrastructures technologiques

Coût des infrastructures technologiques annuelles pour le pain financier en 2023: 87,4 millions de dollars

Catégorie de coûts technologiques	Montant des dépenses
Services de cloud computing	32,6 millions de dollars
Systèmes de cybersécurité	22,1 millions de dollars
Licence de logiciel	18,7 millions de dollars
Maintenance matérielle	14 millions de dollars

Marketing et acquisition de clients

Total des dépenses de marketing en 2023: 156,2 millions de dollars

• Canaux de marketing numérique: 67,5 millions de dollars
• Publicité médiatique traditionnelle: 44,3 millions de dollars
• Coût d'acquisition du client (CAC): 124 $ par nouveau client

Gestion des risques et conformité

Coûts de conformité et de gestion des risques en 2023: 63,9 millions de dollars

Zone de conformité	Montant des dépenses
Représentation réglementaire	22,6 millions de dollars
Services juridiques	18,3 millions de dollars
Outils d'évaluation des risques	23 millions de dollars

Salaires et avantages sociaux des employés

Compensation totale des employés en 2023: 412,6 millions de dollars

• Salaires de base: 276,4 millions de dollars
• Bonus de performance: 58,2 millions de dollars
• Assurance maladie: 44,1 millions de dollars
• Prestations de retraite: 33,9 millions de dollars

Traitement du crédit et frais de transaction

Dépenses liées aux transactions en 2023: 203,7 millions de dollars

Catégorie de coût de transaction	Montant des dépenses
Frais de traitement des paiements	87,6 millions de dollars
Coûts d'autorisation du crédit	62,3 millions de dollars
Frais d'échange	53,8 millions de dollars

Bread Financial Holdings, Inc. (BFH) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts des cartes de crédit

Pour l'exercice 2022, Bread Financial a déclaré 1,413 milliard de dollars de revenus d'intérêts nets. Le portefeuille de cartes de crédit de la société a généré un taux de pourcentage annuel moyen (APR) de 24,37% au 31 décembre 2022.

Métrique	Montant	Année
Revenu net d'intérêt	1,413 milliard de dollars	2022
Carte de crédit moyenne avril	24.37%	2022

Frais de transaction

Pain financier généré 259 millions de dollars de revenus liés aux transactions en 2022, qui comprend des frais d'échange et d'autres frais de traitement des paiements.

Frais de produits de prêt

La société a signalé 175 millions de dollars en frais de produit pour l'exercice 2022, qui comprend des frais de création, des frais de service et d'autres sources de revenus liées aux prêts.

Revenus de partenariat marchand

• Revenus totaux de partenariat marchand: 412 millions de dollars en 2022
• Les partenaires clés comprennent:
  • Amazone
  • Walmart
  • Synchrony Retail Partners

Services de gestion du portefeuille de crédit

Pain financier gagné 98 millions de dollars des services de gestion du portefeuille de crédit en 2022, qui comprend:

• Frais de service de portefeuille
• Conseil de gestion du crédit
• Services d'évaluation des risques

Flux de revenus	2022 Revenus	Pourcentage du total des revenus
Revenu d'intérêt	1,413 milliard de dollars	58.2%
Frais de transaction	259 millions de dollars	10.7%
Frais de produits de prêt	175 millions de dollars	7.2%
Revenus de partenariat marchand	412 millions de dollars	17.0%
Gestion du portefeuille de crédit	98 millions de dollars	4.0%

Bread Financial Holdings, Inc. (BFH) - Canvas Business Model: Value Propositions

You're looking at the core offerings that Bread Financial Holdings, Inc. delivers to its customers and partners as of late 2025. These value propositions are grounded in their dual focus: serving retail partners with branded credit solutions and offering direct-to-consumer financial tools.

Private label and co-brand credit cards for retail partners

Bread Financial Holdings, Inc. provides the infrastructure to power loyalty and sales for major brands. This means offering digitally enabled private-label and co-branded credit cards, installment loans, and buy now, pay later ("BNPL") options directly at the point of sale for their partners. You see this in their continued work with established names and expansion into new verticals.

• Delivering growth for recognized brands in travel & entertainment, health & beauty, jewelry, and specialty apparel through private label and co-brand credit cards.
• Expanded the home vertical in the third quarter of 2025 by signing Bed, Bath & Beyond, Furniture First, and Raymour & Flanigan.
• Renewed a long-term partnership with Caesars Entertainment and launched a new, fee-based credit card in the second quarter of 2025.

Simple, personalized payment, lending, and saving solutions

For the individual consumer, the value is in simplicity and personalization across payments, lending, and savings. A key component supporting this is their direct-to-consumer (DTC) funding strategy, which helps manage their overall cost of capital.

Metric	Value (as of Late 2025)	Period/Context
Direct-to-Consumer Deposits	$8.2 billion	Q3 2025
DTC Deposit Growth (YoY)	9%	Q3 2025
DTC Deposits as % of Total Funding	47%	Q3 2025
Tangible Book Value per Common Share	$56.36	Q3 2025

The company is targeting a DTC deposit base that represents half of total funding in the future.

Pay-over-time products, including Bread Pay

Bread Financial Holdings, Inc. offers pay-over-time products to provide choice and flexibility to shared customers at the point of sale. While specific volume data for Bread Pay isn't explicitly broken out in the latest reports, the product category itself is a stated value proposition alongside installment loans.

General-purpose cash-back credit cards (Comenity-branded)

Beyond the private label space, Bread Financial Holdings, Inc. issues general-purpose credit cards, including those branded as Comenity. These cards cater to broader consumer spending needs. The growth in this segment directly contributes to overall credit sales volume.

• Credit sales were $6.8 billion in Q2 2025, a 5% increase, driven by increased general-purpose spending.
• Credit sales were $6.1 billion in Q1 2025, a 1% increase, driven by increased general-purpose spending.

Enabling partner growth in travel, beauty, and specialty retail

The value proposition here is the measurable contribution to partner business expansion. The company's solutions are designed to empower cardholders and drive sales for their retail collaborators across several key consumer spending categories.

For example, credit sales growth in Q2 2025 was explicitly attributed to new partner growth. The company's overall trailing 12-month revenue as of September 30, 2025, stood at $3.79B.

Bread Financial Holdings, Inc. (BFH) - Canvas Business Model: Customer Relationships

Personalized engagement driven by data and analytics

Bread Financial Holdings, Inc. serves millions of U.S. consumers with payment, lending, and saving solutions, capturing and analyzing transaction-rich data to inform customer interactions. The company's strategy relies on this data foundation to tailor offerings. The delinquency rate for accounts 30 days or more past due stood at 6.1% as of October 31, 2025, an improvement from 6.4% year-over-year, suggesting data-driven risk management is impacting customer performance positively. For the first quarter ended March 31, 2025, the delinquency rate was 5.9%.

Multi-channel communication (email, mobile, in-store, direct mail)

The communication strategy spans multiple touchpoints to reach the consumer base. Bread Financial Holdings, Inc. utilizes digital channels, including email and mobile, alongside traditional methods like direct mail. The company's payment solutions include general purpose credit cards and savings products, which are supported by these channels. The firm also delivers growth through private label and co-brand credit cards across sectors such as travel & entertainment, health & beauty, jewelry, and specialty apparel.

• Sectors served by co-brand cards include: travel & entertainment, health & beauty, jewelry, and specialty apparel.
• Direct-to-consumer deposits reached $8.1 billion as of the second quarter of 2025.
• Direct-to-consumer deposits represented 45% of average total funding in Q2 2025.

Digital self-service tools for account management

Bread Financial Holdings, Inc. is focused on enhancing self-service capabilities within its digital channels to allow customers to manage needs when and how they prefer, which also generates efficiencies. The company previously launched the Enhanced Digital Suite in October 2020 to support these efforts. The firm aims for operational excellence, which includes driving digital adoption to reduce the costs to serve customers. Analysts expect the full fiscal year 2025 Earnings Per Share (EPS) to be $6.45, reflecting operational discipline.

Dedicated customer service and collections functions

Dedicated functions manage customer service and collections, which is critical given the nature of the credit products offered. The company's credit performance is closely monitored, with key metrics reported monthly. For the month ended October 31, 2025, net principal losses were $112 million. The net loss rate for October 2025 was 7.5%, down from 7.9% in October 2024. The company's total end-of-period credit card and other loans stood at $17.7 billion in October 2025.

Here's the quick math on recent credit health metrics:

Metric	October 2025 Value	October 2024 Value
Net Loss Rate	7.5%	7.9%
30+ Days Delinquency Rate	6.1%	6.4%
Net Principal Losses (in millions)	$112	$120

Relationship management with brand partners

Managing relationships with brand partners is a core component of the business model, providing growth for private label and co-brand credit card programs. Bread Financial Holdings, Inc. renewed a long-term partnership with Caesars Entertainment in the second quarter of 2025 and launched a new, fee-based credit card with them. Furthermore, new partnerships in the home vertical, including one with Bed Bath & Beyond, are expected to fuel growth. The company also offers the Bread Rewards American Express Credit Card, launched in partnership with American Express in April 2022.

The firm recently announced a quarterly dividend of $0.23 per share, payable December 12th, which represents a $0.92 annualized dividend and a yield of 1.4% as of November 2025.

Bread Financial Holdings, Inc. (BFH) - Canvas Business Model: Channels

You're looking at how Bread Financial Holdings, Inc. (BFH) gets its products and services into the hands of customers as of late 2025. The channels are a mix of deep retail integration and a growing direct digital presence.

The engine room for originations remains the retailer network. For the third quarter of 2025, credit sales reached $6.8 billion, showing a 5% increase, which the company attributed to new partner growth and higher general-purpose spending. This indicates the in-store and e-commerce point-of-sale channel is still driving significant volume. For context, customer spending on co-brand credit cards made up approximately 50% of credit sales for the full year 2024.

The direct-to-consumer (DTC) channel is a major focus for funding. As of the end of the third quarter of 2025, direct-to-consumer deposits stood at $8.2 billion, marking a 9% year-over-year increase. This digital funding source now represents 47% of Bread Financial Holdings, Inc.'s average total funding, moving closer to management's target of half of total funding. This growth helps reduce reliance on more expensive funding sources.

The mobile application serves as the primary digital interface for existing customers. While specific Bread Financial Holdings, Inc. app usage numbers aren't public, the broader trend shows that 72% of US adults report using mobile banking apps as of 2025, with 68% of millennials primarily using them. This underscores the necessity of a strong mobile experience for account access and payment management.

Co-brand partner networks are critical for both origination and revenue. Bread Financial Holdings, Inc. delivers growth through private label and co-brand cards in sectors like travel & entertainment, health & beauty, and specialty apparel. A key recent event was the renewal of a long-term partnership with Caesars Entertainment and the launch of a new, fee-based credit card in the second quarter of 2025.

The company relies on third-party service providers for core processing, which supports the scale needed to manage its approximately 38 million open and outstanding accounts (as of December 31, 2024). Revenue generation from these channels is also supported by merchant discount fees received from partners to compensate for promotional financing, such as deferred interest offers.

Here's a quick look at the channel-related financial performance as of the third quarter of 2025:

Metric	Value (Q3 2025)	Change/Context
Credit Sales	$6.8 billion	Up 5% from prior year
Direct-to-Consumer Deposits	$8.2 billion	Up 9% year-over-year
DTC Deposits as % of Total Funding	47%	Up from 41% a year ago
Quarterly Revenue	$161.00 million	Up 21.97% for the quarter
Net Income (Continuing Ops)	$188 million	Reported for the quarter
Net Loss Rate (October 2025)	7.5%	Decreased from 7.9% previous year

The digital and direct channels are showing tangible results in funding stability, evidenced by the DTC deposit growth. However, the core credit business, heavily influenced by retailer channels, is managing credit quality carefully. The October 2025 net loss rate was 7.5%, an improvement from 7.9% the prior year, but the company had anticipated a full-year net principal loss rate between 8.0% and 8.2% for 2025.

The key access points for customer acquisition and service delivery include:

• Retailer point-of-sale integration for private-label card origination.
• The online platform for general-purpose card and deposit acquisition.
• The mobile application for daily payment and account management.
• Co-brand partner agreements driving spending across travel and retail.
• The underlying third-party core processing infrastructure.

The company is clearly pushing its digital footprint. Tangible book value per common share grew to $56.36 in Q3 2025, a 19% increase year-over-year, suggesting that the capital base supporting these channels is strengthening. Finance: draft 13-week cash view by Friday.

Bread Financial Holdings, Inc. (BFH) - Canvas Business Model: Customer Segments

You're looking at the core groups Bread Financial Holdings, Inc. (BFH) serves as of late 2025. This isn't just about who has a card; it's about the different financial needs they are meeting across the consumer spectrum.

The primary group consists of millions of U.S. consumers seeking payment and lending solutions. This base is served through both private label/co-brand programs and their general-purpose card offerings. For instance, credit sales for the third quarter of 2025 reached $6.8 billion, marking a 5% increase over the prior year period.

A significant portion of the customer base comes through partnerships with customers of recognized brands in specialty retail and travel. Bread Financial delivers growth for partners in sectors like travel & entertainment, health & beauty, jewelry, and specialty apparel. In the third quarter of 2025, the company expanded its home vertical by signing partners including Bed, Bath & Beyond, Furniture First, and Raymour & Flanigan.

The company also targets savers utilizing direct-to-consumer deposit products, which are a key part of their funding mix. As of the third quarter of 2025, direct-to-consumer deposits stood at $8.2 billion, up 9% year-over-year, and these deposits now make up 47% of their average total funding.

BFH manages consumers with varying credit profiles through risk models. As of September 30, 2025, the company had a higher-risk profile, with 42% of receivables originating from nonprime borrowers, defined as those with a VantageScore less than 660. This contrasts with the end of 2024, where 15% of credit card loans were in the 600 or Less category and 27% were in the 601 to 660 range.

Finally, the segment includes general-purpose credit card users, primarily through the Bread Financial general purpose credit cards. These users contributed to the $6.8 billion in credit sales seen in the second quarter of 2025, a 4% increase.

Here's a quick look at the scale and mix of the lending and funding customer bases as of mid-to-late 2025:

Metric	Value / Percentage	Reporting Period	Citation Reference
Direct-to-Consumer Deposits	$8.2 billion	Q3 2025
Direct-to-Consumer Deposits YoY Growth	9%	Q3 2025
D2C Deposits as % of Total Funding	47%	Q3 2025
Receivables from Nonprime Borrowers (VantageScore < 660)	42%	September 30, 2025
Credit Card Loans (VantageScore 600 or Less)	15%	December 31, 2024
Credit Sales	$6.8 billion	Q3 2025

The company's focus on digital self-service capabilities is intended to enhance the experience for all these segments.

• Customers served across payment, lending, and saving solutions.
• Partnerships span travel & entertainment, health & beauty, jewelry, and specialty apparel.
• New partners added in home vertical in Q3 2025: Bed, Bath & Beyond, Furniture First, Raymour & Flanigan.
• Loan portfolio stability supported by over 85% of loans contracted through 2025.

Finance: draft 13-week cash view by Friday.

Bread Financial Holdings, Inc. (BFH) - Canvas Business Model: Cost Structure

The Cost Structure for Bread Financial Holdings, Inc. is heavily influenced by credit risk provisioning, funding costs, and operational technology spend.

Provision for credit losses represented a significant cost component, reported at $296 million in the first quarter of 2025, marking an 8% decrease compared to the first quarter of 2024. The net loss rate for Q1 2025 was 8.2%.

Interest expense on funding sources is a core variable cost, tied to the mix of deposits and borrowings. As of the third quarter of 2025, interest-bearing liabilities averaged $17,436 million, incurring $210 million in interest expense for the quarter.

• Direct-to-consumer (Retail) deposits averaged $8,139 million, with interest expense of $86 million in Q3 2025, representing an average rate of 4.2%.
• Interest-bearing borrowings averaged $4,001 million, with interest expense of $71 million in Q3 2025, representing an average rate of 7.0%.

Non-interest expenses saw a reduction in Q1 2025, reflecting disciplined management initiatives. Total non-interest expenses decreased by $5 million, or 1%, in Q1 2025 compared to the prior year period.

Here's the quick math on the components driving that change in Q1 2025 total non-interest expenses:

Expense Category	Q1 2025 Change (in millions)	Direction
Other expenses (including prior year debt extinguishment costs)	($15)	Decrease
Card and processing expenses	($4)	Decrease
Information processing and communication expenses	$7	Increase
Marketing expenses	$7	Increase

Employee compensation and benefits is a substantial fixed-like cost. The reported year-to-date figure for Employee compensation and benefits in the first quarter of 2025 was $897 million. As of November 2025, the estimated average annual salary for employees in the United States is $121,692.

Marketing and partner share arrangements contribute to both operating expenses and revenue generation. Marketing expenses specifically increased by $7 million in Q1 2025. Separately, revenue in the third quarter of 2025 was negatively impacted by higher retailer share arrangements.

• The year-to-date 2025 figure for Employee compensation and benefits was $897 million.
• Marketing expenses increased by $7 million in Q1 2025.
• The estimated typical annual salary range for most roles at Bread Financial Holdings, Inc. is approximately from $106,948 to $137,767.

Finance: draft 13-week cash view by Friday.

Bread Financial Holdings, Inc. (BFH) - Canvas Business Model: Revenue Streams

You're looking at the core engine of how Bread Financial Holdings, Inc. brings in money, which is fundamentally about managing credit risk and transaction flow. The revenue streams are heavily weighted toward the lending side of the business, which makes sense for a company focused on payment and lending solutions.

The primary revenue source is definitely interest and fees generated from loans. This is the bread and butter. For instance, in the third quarter of 2025, Bread Financial Holdings, Inc. reported Net interest income of $1,032 million. This income is generated while managing total interest-bearing liabilities that stood at $17,436 million as of that same quarter.

The overall top line shows some quarterly fluctuation based on credit performance and partner dynamics. You saw that Q1 2025 total revenue was $970 million. Then, in the third quarter, the revenue was reported at $971 million, which represented a slight 1% year-over-year decrease.

Other key components feeding into that total revenue include:

• Interchange fees derived from payment processing activities.
• Retailer share arrangements stemming from co-brand programs.
• Interest and fees on loans, which is the largest component.

It's important to note how these streams interact. For example, in Q3 2025, total revenue saw a decrease partly due to lower billed late fees and, interestingly, higher retailer share arrangements, which partially offset other factors. This shows the dynamic nature of the non-interest income components.

Here's a quick look at the recent quarterly financial performance to put those revenue figures in context with profitability:

Metric	Q1 2025 Value	Q3 2025 Value
Total Revenue	$970 million	$971 million
Net Income	$142 million	$188 million
Credit Sales	$6.1 billion	$6.8 billion

The bottom line shows strong performance despite the flat-to-slightly-down revenue guidance for the full year 2025. Bread Financial Holdings, Inc. achieved a net income of $188 million in Q3 2025. That's a defintely strong conversion of revenue to profit, especially when compared to the $142 million net income posted in Q1 2025.

Finance: draft the expected Q4 2025 revenue breakdown based on Q1 and Q3 trends by Monday.