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CPSS
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CPS Announces Second Quarter 2025 Earnings

1. CPSS reported $109.8 million revenue, a 14.5% increase year-over-year. 2. Net income rose to $4.8 million from $4.7 million year-on-year. 3. Shareholder equity reached a record $300 million this quarter. 4. New contract purchases rose slightly to $433 million in Q2 2025. 5. Delinquencies decreased marginally to 13.14% from 13.29% year-over-year.

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$8.2208/11 04:21 PM EDTEvent Start
$8.2508/12 10:50 PM EDTLatest Updated
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FAQ

Why Bullish?

The strong revenue growth and record equity indicate positive momentum, similar to previous uptrends.

How important is it?

Earnings growth and strategic contract purchases directly influence CPSS's market perception.

Why Short Term?

Immediate positive results can influence stock prices, as seen during past earnings boosts.

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August 11, 2025 16:15 ET  | Source: Consumer Portfolio Services, Inc. Revenues of $109.8 million compared to $95.9 million in the prior year periodPretax income of $7.0 million compared to $6.7 million in the prior year periodRecord high shareholder’s equity- first time over $300 millionNew contract purchases of $433.0 million in the quarter LAS VEGAS, NV, Aug. 11, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of $4.8 million, or $0.20 per diluted share, for its second quarter ended June 30, 2025. This represents an increase compared to net income of $4.7 million, or $0.19 per diluted share, in the second quarter of 2024. Revenues for the second quarter of 2025 were $109.8 million, an increase of $13.9 million, or 14.5%, compared to $95.9 million for the second quarter of 2024. Total operating expenses for the second quarter of 2025 were $102.8 million compared to $89.2 million for the 2024 period. Pretax income for the second quarter of 2025 increased to $7.0 million, from $6.7 million in the second quarter of 2024. For the six months ended June 30, 2025, total revenues were $216.6 million, an increase of approximately $29.0 million, or 15.5% compared to $187.6 million for the six months ended June 30, 2024. Total operating expenses for the six months ended June 30, 2025, were $202.9 million, compared to $174.4 million for the six months ended June 30, 2024. Pretax income for the six months ended June 30, 2025, was $13.8 million, compared to $13.2 million for the six months ended June 30, 2024. Net income for the six months ended June 30, 2025, increased to $9.5 million from $9.3 million for the six months ended June 30, 2024. During the second quarter of 2025, CPS purchased $433.0 million of new contracts compared to $431.9 million during the second quarter of 2024. The Company's receivables totaled $3.708 billion as of June 30, 2025, an increase from $3.615 billion as of March 31, 2025, and an increase from $3.173 billion as of June 30, 2024. Annualized net charge-offs for the second quarter of 2025 were 7.45% of the average portfolio as compared to 7.26% for the second quarter of 2024. Delinquencies greater than 30 days (including repossession inventory) were 13.14% of the total portfolio as of June 30, 2025, as compared to 13.29% as of June 30, 2024. "Improvements in earnings and operating efficiencies were the highlights of the second quarter," said Charles E. Bradley, Chief Executive Officer. "As our portfolio grows to new highs, we remain focused on the quality of the credit we originate and the performance of existing loans." Conference Call CPS announced that it will hold a conference call on August 12, 2025 at 1:00 p.m. ET to discuss its second quarter 2025 operating results. Those wishing to participate can pre-register for the conference call at the following link https://register-conf.media-server.com/register/BI9f9d2849b5314522a7ee851c3b087cbf. Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the schedule start time. A replay will be available beginning two hours after conclusion of the call for 12 months via the Company’s website at https://ir.consumerportfolio.com/investor-relations. About Consumer Portfolio Services, Inc. Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives. Forward-looking statements in this news release include the Company's recorded figures representing allowances for remaining expected lifetime credit losses, its estimates of fair value (most significantly for its receivables accounted for at fair value), its provision for credit losses, its entries offsetting the preceding, and figures derived from any of the preceding. In each case, such figures are forward-looking statements because they are dependent on the Company’s estimates of losses to be incurred in the future. The accuracy of such estimates may be adversely affected by various factors, which include the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company’s ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Company’s realization upon repossessed vehicles; and economic conditions in geographic areas in which the Company's business is concentrated. Any or all of such factors also may affect the Company’s future financial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to losses to be incurred in the future may affect future performance. Investor Relations Contact Danny Bharwani, Chief Financial Officer949-753-6811                  Consumer Portfolio Services, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(In thousands, except per share data)(Unaudited)                    Three months ended   Six months ended    June 30,  June 30,   2025 2024 2025 2024Revenues:                Interest income $105,362  $88,367  $207,295  $172,655 Mark to finance receivables measured at fair value  3,000   5,500   6,500   10,500 Other income  1,402   2,013   2,843   4,469    109,764   95,880   216,638   187,624 Expenses:                Employee costs  24,362   23,725   49,395   48,141 General and administrative  13,183   13,260   26,726   27,013 Interest  58,704   46,710   113,622   88,678 Provision for credit losses  (781)  (1,950)  (1,760)  (3,585)Other expenses  7,344   7,463   14,901   14,148    102,812   89,208   202,884   174,395 Income before income taxes  6,952   6,672   13,754   13,229 Income tax expense  2,155   2,000   4,263   3,967 Net income $4,797  $4,672  $9,491  $9,262                  Earnings per share:                Basic $0.22  $0.22  $0.44  $0.44 Diluted $0.20  $0.19  $0.39  $0.38                  Number of shares used in computing earnings per share:                Basic  21,893   21,263   21,670   21,203 Diluted  24,180   24,263   24,254   24,433                                                    Condensed Consolidated Balance Sheets        (In thousands)        (Unaudited)                                            June 30, December 31,          2025 2024        Assets:                Cash and cash equivalents $15,772  $11,713         Restricted cash and equivalents  144,396   125,684         Finance receivables measured at fair value  3,559,029   3,313,767         Finance receivables, net  1,671   4,987         Other assets  42,922   37,717           $3,763,790  $3,493,868                          Liabilities and Shareholders' Equity:                Accounts payable and accrued expenses $67,928  $70,151         Warehouse lines of credit  395,596   410,898         Residual interest financing  155,103   99,176         Securitization trust debt  2,813,234   2,594,384         Subordinated renewable notes  28,828   26,489            3,460,689   3,201,098                          Shareholders' equity  303,101   292,770           $3,763,790  $3,493,868                                                            Operating and Performance Data ($ in millions)                   At and for the At and for the  Three months ended Six months ended  June 30, June 30,  2025 2024 2025 2024                 Contracts purchased $433.02  $431.88  $884.24  $778.19 Contracts securitized $439.29  $657.09   901.83   957.71                  Total portfolio balance (1) $3,708.38  $3,173.28  $3,708.38  $3,173.28 Average portfolio balance (1) $3,682.96  $3,122.28   3,627.80   3,058.05                                   Delinquencies (1)                31+ Days  10.50%  10.87%        Repossession Inventory  2.64%  2.42%        Total Delinquencies and Repo. Inventory  13.14%  13.29%                         Annualized Net Charge-offs as % of Average Portfolio (1)  7.45%  7.26%  7.49%  7.55%                 Recovery rates (1), (2)  30.4%  30.9%  29.0%  32.1%                    For the For the  Three months ended Six months ended  June 30, June 30,   2025   2024   2025   2024   $ (3) % (4) $ (3) % (4) $ (3) % (4) $ (3) % (4)Interest income $105.36  11.4% $88.37  11.3% $207.30  11.4% $172.66  11.3%Mark to finance receivables measured at fair value 3.00  0.3%  5.50  0.7%  6.50  0.4%  10.50  0.7%Other income  1.40  0.2%  2.01  0.3%  2.84  0.2%  4.47  0.3%Interest expense  (58.70) -6.4%  (46.71) -6.0%  (113.62) -6.3%  (88.68) -5.8%Net interest margin  51.06  5.5%  49.17  6.3%  103.02  5.7%  98.95  6.5%Provision for credit losses  0.78  0.1%  1.95  0.2%  1.76  0.1%  3.59  0.2%Risk adjusted margin  51.84  5.6%  51.12  6.5%  104.78  5.8%  102.53  6.7%Other operating expenses (5)  (44.89) -4.9%  (44.45) -5.7%  (91.02) -5.0%  (89.30) -5.8%Pre-tax income $6.95  0.8% $6.67  0.9% $13.75  0.8% $13.23  0.9%             (1) Excludes third party portfolios.(2) Wholesale auction liquidation amounts (net of expenses) as a percentage of the account balance at the time of sale.(3) Numbers may not add due to rounding.(4) Annualized percentage of the average portfolio balance. Percentages may not add due to rounding.(5) Total pre-tax expenses less provision for credit losses and interest expense.

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