Consumer Port Stock Price, News & Analysis

Consumer Portfolio Services (NASDAQ: CPSS) has successfully closed its second term securitization of 2025, marking its 55th senior subordinate securitization since 2011. The transaction involved $419.95 million of asset-backed notes secured by $439.29 million in automobile receivables. The notes were issued through CPS Auto Receivables Trust 2025-B in five classes, with the senior class receiving triple "A" ratings from both Standard & Poor's and DBRS Morningstar.

The notes carry a weighted average coupon of 5.96% and feature initial credit enhancement including a 1.00% cash deposit and 4.40% overcollateralization. The transaction requires accelerated principal payments to achieve overcollateralization of either 8.65% of the original receivable pool balance or 22.00% of the outstanding pool balance, whichever is lesser.

Consumer Portfolio Services (NASDAQ: CPSS) has scheduled a conference call for Tuesday, May 13, 2025, at 1:00 p.m. ET to discuss its first quarter 2025 financial results. Participants can pre-register for the call through a provided link and will receive dial-in details via email. The company recommends joining fifteen minutes before the start time to avoid delays.

A replay of the call will be available for 12 months on the company's investor relations website. Consumer Portfolio Services is a specialty finance company focusing on indirect automobile financing for individuals with past credit problems or limited credit histories, primarily through franchised automobile dealerships.

Consumer Portfolio Services (NASDAQ: CPSS) has announced the implementation of an AI-powered servicing and collections platform developed with Salient. The platform utilizes conversational AI voice agents to automate key servicing functions including payment collection, due date adjustments, payoff management, and insurance verification. Based on previous implementations, Salient's platform has shown a 60% reduction in handle times and improved customer response rates. CPS reported strong performance with a 52% year-over-year increase in Q4 2024 auto loan originations and a record portfolio balance of $3.6 billion. The AI integration aims to enhance collections efficiency, improve repayment consistency, and strengthen cash flow while maintaining regulatory compliance with FDCPA, FCRA, UDAAP, and CFPB guidelines.

Consumer Portfolio Services (CPSS) has successfully closed a $65.0 million securitization of residual interests from previous securitizations. The transaction involves a qualified institutional buyer purchasing asset-backed notes secured by an 80% interest in a CPS majority owned affiliate that owns residual interests in five CPS securitizations issued from October 2023 through September 2024.

The majority owned affiliate interest encompasses 80% of the amounts in underlying spread accounts and 80% of the over-collateralization for each related securitization. Monthly payments will include interest at the coupon rate and potential principal payments to maintain a specified minimum collateral ratio. The transaction was executed as a private offering of securities, not registered under the Securities Act of 1933 or state securities laws.

Consumer Portfolio Services (CPSS) reported its Q4 and full-year 2024 financial results. Q4 revenues reached $105.3 million, up 14.5% year-over-year, while full-year revenues grew 11.8% to $393.5 million.

Q4 net income was $5.1 million ($0.21 per diluted share), with full-year net income at $19.2 million ($0.79 per diluted share). The company achieved record-high total portfolio balance of $3.491 billion. New contract purchases for 2024 totaled $1.682 billion, representing a 24% increase from 2023.

However, operating expenses increased significantly, with Q4 expenses at $98.0 million compared to $82.1 million in 2023. Delinquencies over 30 days rose to 14.85%, and net charge-offs increased to 8.02% in Q4 2024.

Consumer Portfolio Services (CPSS) has announced a conference call scheduled for Wednesday, February 26, 2025, at 1:00 p.m. ET to discuss their fourth quarter 2024 operating results. Participants can pre-register for the call through a provided link and will receive dial-in details via email. The company recommends joining fifteen minutes before the start time to avoid delays.

A replay of the call will be available for 12 months through the company's investor relations website. CPSS operates as an independent specialty finance company providing indirect automobile financing to individuals with past credit problems or credit histories, primarily through purchasing retail installment sales contracts from franchised dealerships for late model used and new vehicles.

Consumer Portfolio Services (CPSS) has successfully closed its first term securitization of 2025, marking its 54th senior subordinate securitization since 2011. The transaction involved qualified institutional buyers purchasing $442.4 million of asset-backed notes, secured by $462.5 million in automobile receivables.

The notes, issued by CPS Auto Receivables Trust 2025-A, are divided into five classes with ratings from Standard & Poor's and DBRS Morningstar. The weighted average coupon on the notes is approximately 5.88%. The transaction includes initial credit enhancement with a 1.00% cash deposit of the original receivable pool balance and 4.35% overcollateralization.

This marks CPSS's 37th consecutive securitization to receive a triple 'A' rating from at least two rating agencies on the senior class of notes.

Consumer Portfolio Services (CPSS) has announced an amendment to its two-year revolving credit agreement with Citibank, increasing the facility's capacity from $225 million to $335 million. The amendment, effective December 16, 2024, also applies to the subordinate third party lender announced last month.

The loans under this agreement will be secured by automobile receivables that CPS currently holds or will acquire from dealers. The company can borrow on a revolving basis through July 15, 2026, with options to either repay outstanding loans in full or allow them to amortize over a one-year period after that date.

Consumer Portfolio Services (CPSS) has partnered with SentiLink to enhance its fraud prevention capabilities. The collaboration, leveraging SentiLink's AI-driven identity verification and fraud detection technology, has already reduced fraud exposure by approximately $1 million per quarter. The system analyzes identity and fraud indicators to generate actionable reports, helping CPSS lend to verified borrowers and reduce lifetime portfolio losses. This technology implementation is particularly important given the rising fraud attempts in the subprime auto sector, supporting CPSS's growth strategy and risk management efforts.