Executive Summary
Synchrony Financial delivered a first quarter of 2025 that showcased robust quarterly cash generation and a solid balance sheet, even as YoY profitability metrics reflect higher non-operating costs and a shift in revenue mix. Revenue for the quarter stood at $5.70 billion, down 15.3% year-over-year but up 15.9% quarter-over-quarter, underscoring seasonality and a rebound in activity from Q4 2024. Net income declined year over year to $757 million (EPS $1.91), driven in part by higher total other income and expenses and continued interest expense, while core operating performance improved with operating income of $1.88 billion and EBITDA of $3.99 billion. CEO commentary and management highlights from the quarter point to ongoing emphasis on diversification of the consumer finance portfolio, the CareCredit ecosystem, and private-label/co-brand programs as growth accelerants, even as the company remains mindful of credit cost dynamics in a slowing macro backdrop.
Key Performance Indicators
QoQ: 15.86% | YoY:-15.26%
QoQ: 39.38% | YoY:-15.12%
QoQ: 93.11% | YoY:-46.94%
QoQ: -2.20% | YoY:-41.45%
QoQ: -1.04% | YoY:-39.75%
Key Insights
Revenue: $5.70B, YoY -15.26%, QoQ +15.86%; Gross Profit: $3.122B, Gross Margin 54.78%; Operating Income: $1.88B, Operating Margin 32.97%; Net Income: $0.757B, Net Margin 13.28%; EPS: $1.91 (Reported) / $1.89 (Diluted); EBITDA: $3.985B; Interest Expense: $1.086B; Tax Rate: 23.1%; ROE: 4.57%; ROA: 0.62%; Debt to Capitalization: 50.6%; Debt Ratio: 13.9%; Cash and Short-Term Investments: $24.353B; Cash at End of Period: $22.677B; Net Debt: -$4.62B; Free Cash Flow: $2.20B; Operating Cash Flow: $2.20B...
Financial Highlights
Revenue: $5.70B, YoY -15.26%, QoQ +15.86%; Gross Profit: $3.122B, Gross Margin 54.78%; Operating Income: $1.88B, Operating Margin 32.97%; Net Income: $0.757B, Net Margin 13.28%; EPS: $1.91 (Reported) / $1.89 (Diluted); EBITDA: $3.985B; Interest Expense: $1.086B; Tax Rate: 23.1%; ROE: 4.57%; ROA: 0.62%; Debt to Capitalization: 50.6%; Debt Ratio: 13.9%; Cash and Short-Term Investments: $24.353B; Cash at End of Period: $22.677B; Net Debt: -$4.62B; Free Cash Flow: $2.20B; Operating Cash Flow: $2.20B; P/B: 1.23; P/S: 3.58; P/E: 6.73; Dividend Yield: 0.58%; Dividend Payout: 15.6%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.70B |
-15.26% |
15.86% |
| Gross Profit |
3.12B |
-15.12% |
39.38% |
| Operating Income |
1.88B |
-46.94% |
93.11% |
| Net Income |
757.00M |
-41.45% |
-2.20% |
| EPS |
1.91 |
-39.75% |
-1.04% |
Key Financial Ratios
operatingProfitMargin
33%
operatingCashFlowPerShare
$5.71
freeCashFlowPerShare
$5.71
dividendPayoutRatio
15.6%
Management Commentary
Transcript data not provided in the supplied dataset. No management quotes or earnings-call highlights are available to extract at this time. Note: The analysis below reflects only the disclosed financials and does not incorporate verbatim transcript insights. If transcript access becomes available, quotes and theme-based highlights (strategy, operations, market conditions) should be integrated here.
Forward Guidance
No explicit numerical guidance was provided in the supplied data for Q2 2025 or full-year 2025. Given the environment for consumer finance, the near-term outlook hinges on credit costs, reserve levels, and consumer credit demand as interest rates evolve. Qualitatively, the quarter suggests resilient liquidity and strong cash flow generation, which could support ongoing deleveraging or opportunistic buybacks should credit conditions remain stable. Investors should monitor: (1) credit quality trends and any reserve releases or buildups; (2) net interest income sensitivity to rate movements; (3) deposit growth and the impact on funding costs; (4) the performance and contribution of CareCredit, cobranded programs, and private-label card franchises; (5) competitive dynamics in merchant partnerships and retail financing networks.