CPS Announces First Quarter 2026 Earnings
Rhea-AI Summary
Consumer Portfolio Services (Nasdaq: CPSS) reported Q1 2026 results: revenues $112.3M, net income $5.5M or $0.24 diluted EPS. Total portfolio balance reached a record $3.942B. New contract purchases were $533.2M, up 18% year-over-year and 47% sequentially. Delinquencies fell to 11.58% while annualized net charge-offs rose to 8.57%.
Management cited growth in originations, revenue and net income and emphasized margin expansion and credit performance. A conference call is scheduled for May 6, 2026 at 1:00 p.m. ET.
Positive
- Net income +18% to $5.5M versus $4.7M
- Diluted EPS +26% to $0.24 from $0.19
- Total portfolio reached record $3.942B
- Contracts purchased +18% YoY to $533.2M
- Recovery rate +12% relative to 31.1% from 27.7%
Negative
- Annualized net charge-offs increased to 8.57% from 7.54%
- Contracts securitized declined ~24% YoY to $352.7M
Key Figures
Market Reality Check
Peers on Argus
CPSS gained 4.43% with strong Q1 earnings, while peers were mixed: MFIN up 3.95%, LPRO up 1.72%, FOA appeared in momentum scanners up 7.09% without same-day news, and PMTS/OPRT were roughly flat to slightly down. The pattern points to a largely company-specific reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 10 | Q4 & FY 2025 earnings | Positive | -2.1% | Higher 2025 revenues and net income with growing contract purchases and portfolio. |
| Nov 10 | Q3 2025 earnings | Positive | -8.3% | Q3 revenue growth and stable net income with larger receivables and higher charge-offs. |
| Aug 11 | Q2 2025 earnings | Positive | +0.4% | Strong Q2 revenue and net income growth with record equity and larger portfolio. |
| May 12 | Q1 2025 earnings | Positive | +0.5% | Strong Q1 revenue growth, higher originations and record portfolio balance. |
| Feb 25 | Q4 & FY 2024 earnings | Positive | -1.3% | Double‑digit revenue growth and record portfolio, offset by higher expenses and delinquencies. |
Recent earnings releases have generally highlighted revenue and portfolio growth but often saw flat to negative next-day price moves, with an average move of -2.15% around earnings.
Over the past year, CPS earnings have shown steady growth in revenue, net income and receivables, with total portfolio balances repeatedly reaching new highs. Prior reports noted rising interest expense and gradually higher net charge-offs and delinquencies, though credit metrics remained manageable. The latest Q4 2025 release showed higher annual revenues and net income, while Q1 2025 marked a record portfolio balance of $3.615 billion. Today’s Q1 2026 report continues this trajectory with higher revenues, net income, contract purchases, and a record $3.942 billion portfolio, alongside elevated charge-offs.
Historical Comparison
In the last five earnings releases, CPSS moved an average of -2.15% on earnings days, often fading positive fundamentals. Today’s +4.43% gain stands out as stronger-than-usual upside versus that history.
Across recent earnings, CPS has consistently grown revenues, net income and receivables while managing higher funding costs and gradually rising credit losses, building to the record portfolio and higher profitability reported in Q1 2026.
Market Pulse Summary
This announcement highlights Q1 2026 growth, with revenues of $112.3 million, net income of $5.5 million, and a record receivables portfolio of $3.942 billion. Credit metrics were mixed: total delinquencies plus repossessions improved to 11.58%, but annualized net charge-offs rose to 8.57%. Historically, earnings have produced modest or negative moves despite growth. Investors may watch future trends in charge-offs, funding costs, and contract origination volumes.
Key Terms
annualized net charge-offs financial
repossession inventory financial
restricted cash and equivalents financial
warehouse lines of credit financial
residual interest financing financial
subordinated renewable notes financial
securitization markets financial
AI-generated analysis. Not financial advice.
- Revenues of
$112.3 million compared to$106.9 million in the prior year period - Net income of
$5.5 million for the first quarter of 2026, an18% increase from prior year - Total portfolio balance of
$3.942 billion , highest in company history - New contract purchases of
$533.2 million in the first quarter, an18% increase from the prior year first quarter
LAS VEGAS, NV, May 05, 2026 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of
Revenues for the first quarter of 2026 were
During the first quarter of 2026, CPS purchased
Delinquencies greater than 30 days (including repossession inventory) decreased to
“The first quarter marks a strong start to the year as we saw growth in origination volumes, revenue and net income over the prior quarters,” said Charles E. Bradley, Chief Executive Officer. “We continue to stay focused on margin expansion and credit performance, as our portfolio grows to new highs.”
Conference Call
CPS announced that it will hold a conference call on May 6, 2026 at 1:00 p.m. ET to discuss its first quarter 2026 operating results.
Those wishing to join the conference call can dial-in at (800) 715-9871 and enter passcode 8293043. 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 Officer
949-753-6811
| Consumer Portfolio Services, Inc. and Subsidiaries | |||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||
| (In thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| Three months ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues: | |||||||||||
| Interest income | $ | 108,721 | $ | 101,933 | |||||||
| Mark to finance receivables measured at fair value | - | 3,500 | |||||||||
| Other income | 3,613 | 1,441 | |||||||||
| 112,334 | 106,874 | ||||||||||
| Expenses: | |||||||||||
| Employee costs | 23,046 | 25,033 | |||||||||
| General and administrative | 12,908 | 12,563 | |||||||||
| Interest | 60,061 | 54,918 | |||||||||
| Other expenses | 8,291 | 7,558 | |||||||||
| 104,306 | 100,072 | ||||||||||
| Income before income taxes | 8,028 | 6,802 | |||||||||
| Income tax expense | 2,489 | 2,108 | |||||||||
| Net income | $ | 5,539 | $ | 4,694 | |||||||
| Earnings per share: | |||||||||||
| Basic | $ | 0.25 | $ | 0.22 | |||||||
| Diluted | $ | 0.24 | $ | 0.19 | |||||||
| Number of shares used in computing earnings per share: | |||||||||||
| Basic | 21,777 | 21,444 | |||||||||
| Diluted | 23,534 | 24,325 | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||||
| (In thousands) | |||||||||||
| (Unaudited) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Assets: | |||||||||||
| Cash and cash equivalents | $ | 6,944 | $ | 6,322 | |||||||
| Restricted cash and equivalents | 178,469 | 165,885 | |||||||||
| Finance receivables measured at fair value | 3,835,789 | 3,655,855 | |||||||||
| Other assets | 31,597 | 30,131 | |||||||||
| $ | 4,052,799 | $ | 3,858,193 | ||||||||
| Liabilities and Shareholders' Equity: | |||||||||||
| Accounts payable and accrued expenses | $ | 70,261 | $ | 65,244 | |||||||
| Warehouse lines of credit | 467,138 | 324,871 | |||||||||
| Residual interest financing | 181,383 | 142,982 | |||||||||
| Securitization trust debt | 2,992,157 | 2,986,574 | |||||||||
| Subordinated renewable notes | 27,508 | 28,986 | |||||||||
| 3,738,447 | 3,548,657 | ||||||||||
| Shareholders' equity | 314,352 | 309,536 | |||||||||
| $ | 4,052,799 | $ | 3,858,193 | ||||||||
| Operating and Performance Data ($ in millions) | |||||||||||
| At and for the | |||||||||||
| Three months ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Contracts purchased | $ | 533.22 | $ | 451.22 | |||||||
| Contracts securitized | $ | 352.66 | $ | 462.54 | |||||||
| Total portfolio balance (1) | $ | 3,942.22 | $ | 3,614.55 | |||||||
| Average portfolio balance (1) | $ | 3,853.75 | $ | 3,572.64 | |||||||
| Delinquencies (1) | |||||||||||
| 31+ Days | 8.95 | % | 9.75 | % | |||||||
| Repossession Inventory | 2.63 | % | 2.60 | % | |||||||
| Total Delinquencies and Repo. Inventory | 11.58 | % | 12.35 | % | |||||||
| Annualized Net Charge-offs as % of Average Portfolio (1) | 8.57 | % | 7.54 | % | |||||||
| Recovery rates (1), (2) | 31.1 | % | 27.7 | % | |||||||
| For the Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| % (4) | % (4) | ||||||||||
| Interest income | $ 108.72 | 11.3 | % | $ 101.93 | 11.4 | % | |||||
| Interest expense | (60.06 | ) | -6.2 | % | (54.92 | ) | -6.1 | % | |||
| Net interest margin | 48.66 | 5.1 | % | 47.02 | 5.3 | % | |||||
| Mark to finance receivables measured at fair value | - | 0.0 | % | 3.50 | 0.4 | % | |||||
| Other income | 3.61 | 0.4 | % | 1.44 | 0.2 | % | |||||
| Operating expenses (5) | (44.25 | ) | -4.6 | % | (45.15 | ) | -5.1 | % | |||
| Pre-tax income | $ 8.03 | 0.8 | % | $ 6.80 | 0.8 | % | |||||
| (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 interest expense. | |||||||||||
