Consumer Portfolio Services Announces Third Quarter 2026 Results

Q: What were Consumer Portfolio Services’ third-quarter 2026 earnings?

Consumer Portfolio Services reported $7.0 million in net income and diluted EPS of $0.30 for the third quarter of 2026. Net income increased 43.3% and diluted EPS increased 50% from the third quarter of 2025. Revenue rose 21.7% to $131.9 million.

Q: How did CPSS loan growth and credit performance change in the third quarter of 2026?

Contract purchases increased 108.5% to $815.3 million, while total delinquencies including repossession inventory declined to 12.29% from 13.96% a year earlier. Annualized net charge-offs fell to 7.26% from 8.01%, and net auction recovery rates rose to 32.0% from 28.7%.

Q: What drove Consumer Portfolio Services’ loan origination growth in 2026?

CPS attributed accelerating loan origination volume to an expanded dealership base supported by sales-force additions and improvements in contract underwriting and funding speed and efficiency. These factors supported higher contract purchases during both the third quarter and the first nine months of 2026.

Quarterly net income grew faster than revenue as loan purchases accelerated and reported credit performance improved.

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(Moderate)

Rhea-AI Sentiment

(Positive)How Sentiment works

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Rhea-AI Summary

Consumer Portfolio Services (Nasdaq: CPSS) reported third-quarter 2026 diluted earnings per share of $0.30, up 50% from a year earlier. Net income rose 43.3% to $7.0 million, while revenue increased 21.7% to $131.9 million. Contract purchases grew 108.5% to $815.3 million, and the owned loan portfolio reached $4.711 billion, up 25.3%.

Total delinquencies, including repossession inventory, fell to 12.29% from 13.96%. Annualized net charge-offs declined to 7.26% from 8.01%, while auction recovery rates improved to 32.0% from 28.7%. Quarterly operating expenses rose to $121.8 million from $101.4 million. CPS renewed a warehouse credit line and increased its capacity to $508 million from $335 million. For the first nine months of 2026, revenue rose 12.5% to $365.6 million, net income increased 30.8% to $18.7 million, and diluted EPS increased to $0.80 from $0.59.

22 points · 0 major

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0 major · 12 points

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Positive

Moderate pointQ3 diluted EPS rose 50% to $0.30 from $0.20 a year earlier.
Moderate pointQ3 revenue increased 21.7% to $131.9 million from $108.4 million a year earlier.
Moderate pointQ3 contract purchases increased 108.5% to $815.3 million from $391.1 million a year earlier.
Moderate pointOwned portfolio reached $4.711 billion, up 25.3% year over year, marking 21 consecutive quarters of growth.
Moderate pointTotal delinquencies, including repossessions, fell to 12.29% from 13.96% at the prior-year quarter-end.
Moderate pointQ3 annualized net charge-offs declined to 7.26% from 8.01% a year earlier.
Moderate pointQ3 net auction recovery rates increased to 32.0% from 28.7% a year earlier.
Moderate pointWarehouse credit-line capacity increased to $508 million from $335 million following renewal. 2.6× market cap
Moderate pointQ3 contracts securitized increased 69.4% to $734.5 million from $433.5 million a year earlier.

13 minor points

Minor pointQ3 net income increased 43.3% to $7.0 million from $4.9 million a year earlier.
Minor pointCPS completed its third asset-backed securitization of 2026, primarily covering second-quarter loan originations.
Minor pointQ3 pretax income increased 44.3% to $10.1 million from $7.0 million a year earlier.
Minor pointNine-month diluted EPS increased 35.6% to $0.80 from $0.59 a year earlier.
Minor pointNine-month net income increased 30.8% to $18.7 million from $14.3 million a year earlier.
Minor pointNine-month revenue increased 12.5% to $365.6 million from $325.1 million a year earlier.
Minor pointNine-month contract purchases increased 65.2% to $2,106.2 million from $1,275.3 million a year earlier.
Minor pointNine-month contracts securitized increased 20.8% to $1,613.3 million from $1,335.3 million a year earlier.
Minor pointNine-month pretax income increased 30.3% to $27.1 million from $20.8 million a year earlier.
Minor pointNine-month annualized net charge-offs edged down to 7.66% from 7.67% a year earlier.
Minor pointNine-month net auction recovery rates improved to 32.1% from 28.9% a year earlier.
Minor pointNine-month employee costs fell to $71.326 million from $71.860 million a year earlier.
Minor pointShareholders’ equity increased to $324.488 million at September 30, 2026, from $309.536 million at year-end 2025.

Negative

Moderate pointWarehouse borrowings rose to $735.840 million at September 30, 2026, from $324.871 million at year-end 2025.
Moderate pointSecuritization trust debt rose to $3,458.537 million at September 30, 2026, from $2,986.574 million at year-end 2025.
Moderate pointResidual interest financing increased to $190.665 million at September 30, 2026, from $142.982 million at year-end 2025.
Moderate pointQ3 interest expense increased to $70.519 million from $59.098 million a year earlier.
Minor pointNine-month interest expense increased to $194.833 million from $172.720 million a year earlier.

7 minor points

Minor pointQ3 employee costs increased to $24.862 million from $22.465 million a year earlier.
Minor pointQ3 general and administrative expenses increased to $15.567 million from $12.709 million a year earlier.
Minor pointNine-month general and administrative expenses increased to $43.148 million from $37.675 million a year earlier.
Minor pointQ3 other expenses increased to $10.884 million from $7.117 million a year earlier.
Minor pointNine-month other expenses increased to $29.185 million from $22.019 million a year earlier.
Minor pointNine-month net interest margin declined to 5.1% from 5.2% a year earlier.
Minor pointCash and equivalents fell to $5.147 million at September 30, 2026, from $6.322 million at year-end 2025.

News Explained

CPS says its third asset-backed securitization of 2026 closed during Q3, primarily including Q2 originations; it was the company's 110th securitization and largest deal in its 35-year history. The company says it funds contract purchases primarily through securitization markets, so this closure completes a transaction in a key funding channel.

Key Figures

Diluted EPS: $0.30 per share, up 50.0% Net income: $7.0 million, up 43.3% Total revenue: $131.9 million, up 21.7% +5 more

Diluted EPS: $0.30 per share, up 50.0%; Q3 2026 vs. Q3 2025
Net income: $7.0 million, up 43.3%; Q3 2026 vs. Q3 2025
Total revenue: $131.9 million, up 21.7%; Q3 2026 vs. Q3 2025
Contract purchases: $815.3 million, up 108.5%; Q3 2026 vs. Q3 2025
Total portfolio: $4.711 billion, up 25.3%; At Q3 2026 end vs. Q3 2025 end
Total delinquencies: 12.29%, down from 13.96%; At Q3 2026 end vs. Q3 2025 end
Annualized net charge-offs: 7.26%, down from 8.01%; Q3 2026 vs. Q3 2025
Net recovery rates: 32.0%, up from 28.7%; Q3 2026 vs. Q3 2025

Previous Earnings Reports

3 past events · Latest: Aug 04

Same Type 3 events

Aug 04
Quarterly earnings

24h Move

-1.4%

Net income and diluted EPS rose year over year, alongside higher revenue and contract purchases.
May 05
Quarterly earnings

24h Move

+2.6%

Revenue and net income rose year over year as portfolio balance reached a record.
Nov 10
Quarterly earnings

24h Move

-8.3%

Revenue increased year over year, while diluted EPS was roughly flat and credit measures were mixed.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

securitization, warehouse lines of credit, annualized net charge-offs, diluted earnings per share

4 terms

securitization financial

"The 3rd asset backed securitization (ABS) of 2026 also closed during the third quarter."

Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.

warehouse lines of credit financial

"the Company renewed one of its warehouse lines of credit"

A warehouse line of credit is a short-term revolving loan that a lender or dealer uses to temporarily fund assets—such as mortgages, loans, or inventory—until those assets are sold, packaged, or otherwise converted to long-term funding. Think of it as a bridge loan or an overdraft that helps keep business flowing; investors watch these lines because their size, cost, and availability signal whether a company can maintain growth, manage cash needs, and withstand market disruptions.

annualized net charge-offs financial

"Annualized net charge-offs as a percent of the average portfolio"

Annualized net charge-offs measure the pace at which a lender writes off loans as uncollectible, converted to a full-year rate so short-period results can be compared over time. Think of it as the percentage of a bank’s loan book that’s effectively treated as a loss over a year; investors watch it because rising charge-offs signal deteriorating loan quality and can cut profits, reduce capital, and increase risk for shareholders.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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10/22/2026 - 04:30 PM EDT

Diluted EPS up 50%; Net Income Increases 43%; Quarterly Loan Originations Grow by 109%; Total Portfolio Exceeds $4.7 Billion- Highest in Company History

LAS VEGAS, NV, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”), an independent specialty finance company, today announced financial results for the third quarter and nine months ended September 30, 2026.

THIRD QUARTER 2026 FINANCIAL AND OPERATIONAL HIGHLIGHTS

Diluted Earnings Per Share Increase: 50% increase to $0.30 per share, over Q3 2025.
Net Income Expansion: Net Income of $7.0 million, up 43% from Q3 2025.
Accelerating Revenue: Total Revenue of $131.9 million, an increase of 22% over Q3 2025.
Triple-Digit Loan Origination Growth: New loan origination volume increased 109% year-over- year to $815 million of automobile contracts purchased in Q3 2026.
Record Portfolio Size: Total owned portfolio reached a record $4.71 billion as of Q3 2026, up 25% from Q3 2025.
Delinquency Contraction: Total delinquencies as of Q3 2026 finished at 12.29%, a decrease from 13.96% as of Q3 2025.
Strengthening Collateral Recovery Rates: Net recovery rates at auctions rose to 32% as of Q3 2026, up from 29% as of Q3 2025.

Chief Executive Officer Commentary
“Our accelerating origination volume is demonstrating strong operating leverage in our business, as increases to net income are outpacing revenue and driving solid financial results, “said Charles E. Bradley, Chief Executive Officer. “Both the broadening of our dealership network and the deepening of relationships with existing dealers allows us to accelerate origination volume and capture market share, while remaining selective on the contracts we purchase.”

THIRD QUARTER 2026 RESULTS

Revenue- Total revenue for the third quarter of 2026 was $131.9 million, an increase of $23.5 million, or 21.7%, compared to $108.4 million for the third quarter of 2025. Total revenue for the nine months ended September 30, 2026, was $365.6 million, an increase of approximately $40.5 million, or 12.5% compared to $325.1 million for the nine months ended September 30, 2025. Interest income, for both the third quarter and first nine months of 2026, was the largest driver of the increase in total revenue. The increase in interest income over the prior year periods is due to the growth in the loan portfolio from accelerating loan origination volume across an expanding dealer network.

Expenses- Total operating expenses for the third quarter of 2026 were $121.8 million compared to $101.4 million for the third quarter of 2025. Total operating expenses for the nine months ended September 30, 2026, were $338.5 million, compared to $304.3 million for the nine months ended September 30, 2025. The increase in expense for both the third quarter and first nine months of 2026 is largely due to interest expense in conjunction with the increase in loan origination volumes. Interest expense comprised approximately 58% of total operating expenses for both the third quarter and first nine months of 2026 and 2025, demonstrating discipline in the cost structure of our borrowings as the portfolio grows.

Pretax Income- Pretax income for the third quarter of 2026 increased 44.3%, or $3.1 million to $10.1 million, compared to $7.0 million for the third quarter of 2025. Pretax income for the nine months ended September 30, 2026, increased 30.3%, or $6.3 million to $27.1 million, compared to $20.8 million for the nine months ended September 30, 2025.

Net Income- Net income for the third quarter of 2026 increased 43.3%, or $2.1 million to $7.0 million, compared to $4.9 million for the third quarter of 2025. Net income for the nine months ended September 30, 2026, increased 30.8%, or $4.4 million to $18.7 million, compared to $14.3 million for the nine months ended September 30, 2025. The increase to net income in both the third quarter and first nine months of 2026 is attributable to the increases in loan origination volume. The increases in net income outpacing the increases in revenue demonstrates strong operating leverage across the Company.

Diluted Earnings Per Share (EPS)- Diluted earnings per share for the third quarter of 2026 increased 50.0%, or $0.10 per share to $0.30 per share, compared to $0.20 per share for the third quarter of 2025. Diluted earnings per share for the nine months ended September 30, 2026, increased 35.6%, or $0.21 per share to $0.80 per share, compared to $0.59 per share for the nine months ended September 30, 2025. Growth in diluted earnings per share was driven by higher net income alongside a lower diluted share count during the period.

THIRD QUARTER 2026 OPERATIONAL OVERVIEW

During the third quarter and first nine months of 2026, the Company grew the portfolio to record levels and demonstrated positive credit performance across delinquencies, charge-offs, and auction recovery rates.

Loan Origination Volume (Contract Purchases)- Contract purchases for the third quarter of 2026 increased 108.5%, or $424.2 million to $815.3 million, compared to $391.1 million for the third quarter of 2025. Contract purchases for the nine months ended September 30, 2026, increased 65.2%, or $831.0 million to $2.106 billion, compared to $1.275 billion for the nine months ended September 30, 2025. The accelerating volume across both periods was driven by expanding our dealership base through strategic additions to our sales force, as well as enhancements that increased the speed and efficiency of contract underwriting and funding.

Loan Portfolio- The loan portfolio at the end of the third quarter of 2026 totaled $4.711 billion, an increase of 25.3% from $3.760 billion at the end of the third quarter of 2025. This represents 21 consecutive quarters of growth in the loan portfolio.

Delinquencies- Total delinquencies (including repossession inventory) at the end of the third quarter decreased to 12.29%, compared to 13.96% in the prior year period.

Annualized Net Charge-offs- Annualized net charge-offs as a percent of the average portfolio in the third quarter decreased to 7.26%, compared to 8.01% in the prior year period.

Recovery Rates- Net recovery rates on repossessed collateral sold at wholesale auction increased to 32.0% in the third quarter, compared to 28.7% in the prior year period.

		Three months ended								Nine months ended (1)
		Q3 2026			Q3 2025			Variance (%/bps)		Q3 2026			Q3 2025			Variance (%/bps)
Operational Metric ($m)
	Contracts Purchased	$	815.3		$	391.1		108.5	%	$	2,106.2		$	1,275.3		65.2	%
	Contracts Securitized	$	734.5		$	433.5		69.4	%	$	1,613.3		$	1,335.3		20.8	%
	Total portfolio balance (2)	$	4,711.0		$	3,760.3		25.3	%
	Average portfolio balance (2)	$	4,576.3		$	3,745.3		22.2	%	$	4,205.3		$	3,667.0		14.7	%
Credit Metric (2)
	31+ Day Delinquency		10.20	%		11.12	%	(92	)
	Repossession Inventory		2.09	%		2.84	%	(75	)
	Total Delinquencies and Repo. Inventory (1)		12.29	%		13.96	%	(167	)

	Annualized Net Charge-offs		7.26	%		8.01	%	(75	)		7.66	%		7.67	%	(1	)
	Recovery rates (3)		32.0	%		28.7	%	328			32.1	%		28.9	%	315
	(1) Total portfolio and delinquency figures are as of figures and the same for the three and nine month periods.
	(2) Figure(s) excludes third party portfolios.
	(3) Wholesale auction liquidation amounts (net of expenses) as a percentage of the account balance at the time of sale.

Capital Markets
In the third quarter, the Company renewed one of its warehouse lines of credit and increased the capacity to $508 million from $335 million. This expanded the capacity of the line by approximately 52% and gives the Company additional credit capacity to fund the accelerating volume of loan originations. The 3^rd asset backed securitization (ABS) of 2026 also closed during the third quarter, which primarily included loan originations from the second quarter of 2026. The was the Company’s 110^th securitization and the largest deal in the Company’s 35-year history.

Investor Resources, Webcast & Conference Call Details
The Company will host a conference call and live audio webcast to discuss its third quarter 2026 operating results on Monday, October 26, 2026, at 1:00 p.m. Eastern Time (10:00 a.m. Pacific Time).

Live Webcast & Presentation Deck: Investors can access the simultaneous live audio webcast and download the Q3 2026 Investor Presentation Slide Deck by visiting the Investor Relations section of the Company's website at https://ir.consumerportfolio.com.
Conference Call Pre-Registration: Participants are encouraged to pre-register for the conference call using the following link: https://register-conf.media-server.com/register/BI87f6cd84ada240bc85917c79cf055d45. Registered participants will receive dial-in credentials and a unique PIN for immediate access.
Webcast Audio Replay: An archived audio replay will be available beginning two hours after the conclusion of the call and will remain accessible for 12 months 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 & Safe Harbor Disclosures
Forward-looking statements in this news release include statements regarding the Company’s expected loan origination volume and growth, the expansion of its dealership network and market share, operating leverage and expense efficiency, the adequacy of funding capacity, and future credit performance. The Company's allowances for credit losses, fair value estimates, provision for credit losses, and related figures are also forward-looking statements because they depend on estimates of future losses. Actual results may differ due to various factors including: increased delinquencies, repossessions, and losses; incorrect prepayment speed or discount rate assumptions; competition or the loss of dealer relationships or qualified personnel; reduced availability or increased cost of warehouse and securitization funding, including due to interest rate or capital market conditions; increases in consumer bankruptcy filings; changes in government regulations affecting consumer credit; declines in used vehicle prices; and economic conditions in geographic areas in the Company's principal markets. Any or all such factors also may affect the Company’s future financial results, as to which there can be no assurance. Results of the most recent quarter and the trends described in this release are not necessarily indicative of future results. Additional risks are described in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update any forward-looking statement, except as required by law.

Investor Relations and Executive Contact
Consumer Portfolio Services, Inc.
Danny Bharwani, Chief Financial Officer
Telephone: 949-753-6811
Investor Relations Portal: https://ir.consumerportfolio.com
Corporate Headquarters: 3800 Howard Hughes Pkwy, Suite 1400, Las Vegas, NV 89169

Consumer Portfolio Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

	September 30,		December 31,
		2026		2025
Assets:
Cash and cash equivalents	$	5,147	$	6,322
Restricted cash and equivalents		174,964		165,885
Finance receivables measured at fair value		4,624,585		3,655,855
Other assets		27,275		30,131
	$	4,831,971	$	3,858,193

Liabilities and Shareholders' Equity:
Accounts payable and accrued expenses	$	93,591	$	65,244
Warehouse lines of credit		735,840		324,871
Residual interest financing		190,665		142,982
Securitization trust debt		3,458,537		2,986,574
Subordinated renewable notes		28,850		28,986
		4,507,483		3,548,657

Shareholders' equity		324,488		309,536
	$	4,831,971	$	3,858,193

Consumer Portfolio Services, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

	Three months ended				Nine months ended
	September 30,				September 30,
		2026		2025		2026		2025
Revenues:
Interest income	$	129,082	$	107,166	$	355,915	$	314,462
Mark to finance receivables measured at fair value		-		-		-		6,500
Other income		2,828		1,255		9,718		4,098
		131,910		108,421		365,633		325,060
Expenses:
Employee costs		24,862		22,465		71,326		71,860
General and administrative		15,567		12,709		43,148		37,675
Interest		70,519		59,098		194,833		172,720
Other expenses		10,884		7,117		29,185		22,019
Total Operating Expenses		121,832		101,389		338,492		304,274
Income before income taxes		10,078		7,032		27,141		20,786
Income tax expense		3,125		2,179		8,415		6,442
Net income	$	6,953	$	4,853	$	18,726	$	14,344

Earnings per share:
Basic	$	0.32	$	0.22	$	0.86	$	0.66
Diluted	$	0.30	$	0.20	$	0.80	$	0.59
Number of shares used in computing earnings per share:

Basic		21,846		22,209		21,752		21,852
Diluted		23,320		24,046		23,447		24,187

Consumer Portfolio Services, Inc. and Subsidiaries
Results of Operations as a Percentage of Average Owned Portfolio
($ In millions)
(Unaudited)

	Three months ended										Nine months ended
	September 30,										September 30,
	2026					2025					2026					2025
	$ (1)			$ (2)		$ (1)			$ (2)		$ (1)			% (2)		$ (1)			% (2)
Interest income	$	129.08		11.3	%	$	107.17		11.4	%	$	355.92		11.3	%	$	314.46		11.4	%
Interest expense		(70.52	)	-6.2	%		(59.10	)	-6.3	%		(194.83	)	-6.2	%		(172.72	)	-6.3	%
Net interest margin		58.56		5.1	%		48.07		5.1	%		161.08		5.1	%		141.74		5.2	%
Mark to finance receivables measured at fair value		-		0.0	%		-		0.0	%		-		0.0	%		6.50		0.2	%
Other income		2.83		0.2	%		1.26		0.1	%		9.72		0.3	%		4.10		0.1	%
Operating expenses (3)		(51.31	)	-4.5	%		(42.29	)	-4.5	%		(143.66	)	-4.6	%		(131.55	)	-4.8	%
Pre-tax income	$	10.08		0.9	%	$	7.03		0.8	%	$	27.14		0.9	%	$	20.79		0.8	%

Average Owned Portfolio	$	4,576.3				$	3,745.3				$	4,205.3				$	3,667.0

(1) Numbers may not add due to rounding.
(2) Annualized percentage of the average portfolio balance. Percentages may not add due to rounding.
(3) Total pre-tax expenses less interest expense.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Consumer Portfolio Services’ third-quarter 2026 earnings?

Consumer Portfolio Services reported $7.0 million in net income and diluted EPS of $0.30 for the third quarter of 2026. Net income increased 43.3% and diluted EPS increased 50% from the third quarter of 2025. Revenue rose 21.7% to $131.9 million.

How did CPSS loan growth and credit performance change in the third quarter of 2026?

Contract purchases increased 108.5% to $815.3 million, while total delinquencies including repossession inventory declined to 12.29% from 13.96% a year earlier. Annualized net charge-offs fell to 7.26% from 8.01%, and net auction recovery rates rose to 32.0% from 28.7%.

What drove Consumer Portfolio Services’ loan origination growth in 2026?

CPS attributed accelerating loan origination volume to an expanded dealership base supported by sales-force additions and improvements in contract underwriting and funding speed and efficiency. These factors supported higher contract purchases during both the third quarter and the first nine months of 2026.

Consumer Portfolio Services Announces Third Quarter 2026 Results