AI Takeaway
Synchrony Financial (SYF) delivered solid FY2025 results with net income rising 1.5% to $3.55B and EPS surging 8.6% to $9.38, supported by stable operating cash flow of $9.85B and aggressive share buybacks of $2.94B.
EPS (Basic)
$9.38
++8.56% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Net income grew modestly by 1.5% YoY to $3.55B, while basic EPS jumped 8.6% to $9.38 and diluted EPS rose 8.5% to $9.28, reflecting the significant accretive impact of share repurchases reducing the share count.
Source: Source: 10-K Income Statement
SYF repurchased $2.94B in shares during FY2025, a 191.8% increase from $1.01B in the prior year, demonstrating management's commitment to returning capital to shareholders and driving per-share earnings growth.
Source: Source: 10-K Cash Flow Statement
Operating cash flow remained essentially flat at $9.85B (vs. $9.85B prior year), indicating consistent cash generation from the company's consumer finance operations despite a challenging credit environment.
Source: Source: 10-K Cash Flow Statement
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Upgrade to unlockSYF carries a debt-to-equity ratio of approximately 6.10, which is characteristic of consumer finance companies but exposes the firm to significant refinancing and interest rate risk. Rising interest rates could increase funding costs and compress net interest margins, pressuring profitability.
Source: Source: 10-K Balance Sheet, Key Ratios
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Upgrade to unlockReported EPS of $2.04 versus the $2.06 analyst consensus — a -1.2% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Income | $3.55B | $3.5B | +1.51% |
EPS (Basic) | $9.38 | $8.64 | +8.56% |
EPS (Diluted) | $9.28 | $8.55 | +8.54% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $119.09B | $119.46B | -0.31% |
Total Liabilities | $102.33B | $102.88B | -0.54% |
Stockholders' Equity | $16.77B | $16.58B | +1.12% |
Cash & Equivalents | $14.97B | $14.71B | +1.78% |
Long-Term Debt | $15.18B | $15.46B | -1.81% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $9.85B | $9.85B | +0.03% |
Investing Cash Flow | $-4.85B | $-8.9B | +45.48% |
Financing Cash Flow | $-4.74B | $-611M | -674.96% |
Share Buybacks | $2.94B | $1.01B | +191.77% |
D&A | $514M | $481M | +6.86% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
ROE | 21.2% | — | — |
ROA | 3.0% | — | — |
Debt to Equity | $6.103 | — | — |
Other companies in Consumer Finance
SYF delivered solid FY2025 results with net income of $3.55B, up 1.5% year-over-year, and basic EPS of $9.38, up 8.6%. The company maintained strong operating cash flow of $9.85B and significantly ramped up share buybacks to $2.94B, nearly tripling the prior year's repurchase activity.
SYF's basic EPS grew 8.6% to $9.38 while net income only grew 1.5% to $3.55B because the company repurchased $2.94B worth of shares in FY2025 — a 191.8% increase from $1.01B in the prior year. This dramatic reduction in share count means each remaining share represents a larger portion of earnings.
SYF's financial health appears stable: it holds $14.97B in cash and equivalents, generates $9.85B in annual operating cash flow, and maintains stockholders' equity of $16.77B. However, its debt-to-equity ratio of 6.10 reflects the high leverage typical of consumer finance companies and warrants monitoring in a rising rate environment.
Based on the financial data, key risks for SYF include high financial leverage (debt-to-equity of 6.10), potential deterioration in consumer credit quality across its $119B loan portfolio, and regulatory risk from agencies like the CFPB. The sharp increase in financing outflows to -$4.74B also reduces financial flexibility compared to the prior year's -$611M.
Yes, SYF dramatically increased share repurchases to $2.94B in FY2025, up 191.8% from $1.01B in FY2024. This aggressive buyback program was a key driver of the 8.6% EPS growth, even as net income grew only modestly at 1.5%.