Executive Summary
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
QoQ: 11.05% | YoY:-16.17%
Key Insights
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; De...
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
operatingProfitMargin
33.7%
operatingCashFlowPerShare
$7.02
freeCashFlowPerShare
$7.02
dividendPayoutRatio
17.7%
Management Commentary
transcriptHighlights: No earnings call transcript data provided in the supplied dataset. As a result, no management quotes or verbatim nuances from the QQ3 2025 call are available to quote directly or to synthesize into themes. Once transcript data is available, we will group takeaways by themes such as strategy execution, operational efficiency, and market conditions, with context and significance notes.
Forward Guidance
forwardGuidance: The dataset does not include explicit management guidance for QQ4 2025 or beyond. Given the YoY revenue decline and ongoing margin stability, near-term drivers will likely include consumer demand for credit products, credit quality and delinquencies, and the ability to monetize partnerships with retailers. Investors should monitor: (1) trend in loan origination and repayment behavior; (2) credit loss provisions and delinquencies; (3) performance of cobranded/private-label programs; (4) liquidity management and capital return policy. Without formal guidance, the path to growth hinges on stabilizing revenue streams and sustaining cash flow generation.