The news: Synchrony reported $1.1 billion in net earnings during Q3 2025—a notable increase from Q4 2024’s $789 million, while net revenues were flat at $2.8 billion YoY, per a press release.

Diving into the results: As with other issuers, Synchrony’s earnings underscore US consumer resiliency.

• Synchrony’s cards accumulated $46 billion in purchase volume over the quarter, a 2% increase from Q3 2024.
• Average active accounts decreased by 3%, sliding to 68.3 million.
• Net charge-offs hit 5.16%, down from 6.06% in Q3 2024.
• 30+ and 90+ delinquencies also improved YoY, falling to 4.39% and 2.12%, respectively.

Why this matters: Co-brand and private label cardholders are more likely to have thinner credit histories. These often lower-income consumers likely would struggle to get approved for general-purpose cards.

With improvements across delinquencies and charge-offs and purchase volume climbing, this more financially fragile segment of US consumers is showing some strength—a sharp turnaround from the rocky numbers of Q1 2025.

Our take:  Buy now, pay later platforms like Klarna, Affirm, and PayPal have an opportunity to pick off consumers from co-brand and private label issuers as the holiday season approaches. 

While these cards often boast high interest rates, PayPal’s in-store eligible Pay Monthly offers 5% cashback, and Affirm’s 0% interest days likely connect with Gen Zers trying to avoid revolving credit. As long as these fintechs can offer more competitive interest rates, installment plans, or rewards, co-brand cards are caught on the back foot for securing this consumer segments’ loyalty.