Synchrony Financial posted a robust year-over-year (YoY) revenue surge in QQ4 2024, with revenue of $4.919 billion, up 34.4% from the prior-year quarter, driven by the company’s diversified consumer finance portfolio and higher interest income. However, the quarter showed a material sequential (QoQ) decline of 16.7% from Q3 2024, underscoring seasonality and the cyclicality common in cobranded card programs. Net income of $774 million and an EPS of $1.93 reflect solid profitability amid elevated interest expense and a meaningful operating margin of roughly 19.8%. The company generated healthy operating cash flow of $2.353 billion and free cash flow of $2.353 billion, contributing to a strong liquidity position, while cash at period end stood at $14.755 billion against long-term debt of $15.462 billion, yielding a net debt position of $0.751 billion.
The balance sheet remains sizable and well-capitalized, with total assets of $119.463 billion and total stockholders’ equity of $16.58 billion. The liquidity framework is reinforced by substantial cash and short-term investments (~$17.8 billion combined) and a modest leverage profile, as evidenced by a debt-to-capitalization ratio of about 0.483 and a debt-to-equity ratio around 0.933. Profitability metrics show a net income margin of ~15.7% and an operating income margin of ~19.8%, supported by an EBITDA of approximately $1.093 billion. The company also reported a payout ratio near 15.2% and a dividend yield around 0.47%, signaling a measured approach to capital returns.
Given the absence of explicit forward guidance in the provided data for QQ4 2024, our view emphasizes Synchrony’s earnings quality, cash generation, and balance-sheet stability as the core drivers of long-term value. The business remains anchored by cobranded card programs, CareCredit and other healthcare finance offerings, as well as a broad retail partner ecosystem. Investors should monitor credit quality metrics, reserve adequacy, partner health, and any updated guidance on 2025 targets as macroeconomic conditions evolve.