The news: Synchrony posted $751 million in net earnings for Q4 2025—down from $774 million a year ago. Slumps in loan receivables and active accounts YoY suggest some subprime consumer spending pullback, while purchase volume held up, indicating some holiday spending resiliency.

• Loan receivables decreased 1% YoY to $103.8 billion.
• Average active accounts fell 1% to 69.3 million. 
• Purchase volume increased 3% YoY to $49.5 billion.
• Consumer installment loans declined 7.1% YoY to $5.4 billion.

Synchrony noted that spending fell in home improvement and cosmetic categories, whereas audiology and veterinary purchase volume rose—suggesting consumers are reserving their spending for essentials.

Snapshot of consumer financial health: Synchrony’s 30- and 90-day delinquency and net charge-off rates fell, continuing quarterly trends of improving consumer health. 

• 30-day delinquency fell from 4.70% a year ago to 4.49%.
• 90-day loans past due slid from 2.40% to 2.17%.
• And net charge-offs declined by more than 100 basis points to 5.37%.

Quarter-over-quarter declines reflect both improving consumer health and tighter underwriting standards, which may be boxing out more subprime consumers from accessing private-label co-brand credit cards. 

Implications for lenders: While co-brand and retail cards are typically more accessible for those with lower credit scores, Synchrony’s metrics indicate more of these consumers are becoming squeezed out of eligibility. 

Fintech providers that focus on credit building for un- or underbanked consumers may be able to attract more of this demographic by highlighting their pared-down application processes and immediate access to funds.