Summary of QQ3 2025 results for Synchrony Financial (0LC3.L): The quarter delivered solid profitability and robust liquidity against a backdrop of revenue headwinds. Revenue of USD 4.834 billion declined 18.1% year over year, reflecting ongoing demand and mix challenges in the own-franchise consumer finance ecosystem. Despite the top-line pressure, gross profit reached USD 4.022 billion, yielding a gross margin of 83.2%, and operating income stood at USD 1.628 billion with an operating margin of approximately 33.68%. Net income was USD 1.077 billion, translating to a net margin of about 22.28% and earnings per share (EPS) of USD 2.89 (diluted USD 2.86). Year-over-year improvements in net income and EPS (up ~36.5% and ~47.5% respectively) reflect favorable non-operating items and ongoing efficiency, even as the company reported a negative revenue delta on a yearly basis.
Key Performance Indicators
Revenue
Decreasing
4.83B
QoQ: 2.59% | YoY: -18.12%
Gross Profit
Increasing
4.02B
83.20% margin
QoQ: 60.82% | YoY: 28.46%
Operating Income
Decreasing
1.63B
QoQ: 11.05% | YoY: -16.17%
Net Income
Increasing
1.08B
QoQ: 13.85% | YoY: 36.50%
EPS
Increasing
2.89
QoQ: 15.14% | YoY: 47.45%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability: Revenue USD 4.834B; YoY change -18.12%; QoQ +2.59%. Gross Profit USD 4.022B; YoY +28.46%; QoQ +60.82%. Operating Income USD 1.628B; YoY -16.17%; QoQ +11.05%. Net Income USD 1.077B; YoY +36.50%; QoQ +13.85%. EPS USD 2.89; YoY +47.45%; QoQ +15.14%. Margins and efficiency: Gross Margin 83.20%; Operating Margin 33.68%; Net Margin 22.28%; Pre-tax Margin 29.56%; Effective Tax Rate 24.6%. Balance sheet and liquidity: Current Ratio 18.93; Quick Ratio 18.93; Cash Ratio 2.90; Debt Ratio 12.3%; Debt/Equity 0.846; Asset Turnover 0.0413; ROA 0.921%; ROE 6.31%; Cash per Share USD 43.24; CFO per Share USD 7.02; FCF per Share USD 7.02; Dividend Payout Ratio 17.7%; Dividend Yield 0.716%. Valuation and multiples: Price–to–earnings 6.20x; Price–to–book 1.56x; Price–to–sales 5.52x; Price–to–free cash flow 10.12x; Enterprise Value Multiple 15.28x.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
4.83B
-18.12%
2.59%
Gross Profit
4.02B
28.46%
60.82%
Operating Income
1.63B
-16.17%
11.05%
Net Income
1.08B
36.50%
13.85%
EPS
2.89
47.45%
15.14%
Key Financial Ratios
Gross Profit Margin
Excellent
83.20%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
33.70%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
22.30%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
0.92%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
6.31%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
18.93
Current ratio indicates excellent liquidity and financial flexibility