CPS Announces First Quarter 2026 Earnings

Consumer Portfolio Services (Nasdaq: CPSS) reported Q1 2026 results: revenues $112.3M, net income $5.5M or $0.24 diluted EPS.

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

Argus May 6 session

+2.62% close to close Open Argus

Details

News Market Reaction – CPSS

On May 6, the first trading day after this news, CPSS closed 2.62% above the previous close.

Data tracked by StockTitan Argus for the May 6 session.

Key Figures

Q1 2026 revenue: $112.3 million Q1 2026 net income: $5.5 million Diluted EPS: $0.24 +5 more

Q1 2026 revenue

$112.3 million

Three months ended March 31, 2026; up from $106.9 million in Q1 2025

Q1 2026 net income

$5.5 million

First quarter 2026; 18% increase vs. $4.7 million in Q1 2025

Diluted EPS

$0.24

Q1 2026 diluted EPS vs. $0.19 in Q1 2025 (up 26%)

New contract purchases

$533.2 million

Q1 2026; 47% above Q4 2025 and 18% above Q1 2025

Total portfolio balance

$3.942 billion

Receivables as of March 31, 2026; highest in company history

Delinquencies + repo

11.58%

Total delinquencies and repossession inventory as of March 31, 2026 vs. 12.35% in 2025

Annualized net charge-offs

8.57%

Q1 2026 as % of average portfolio vs. 7.54% in Q1 2025

Recovery rates

31.1%

Q1 2026 wholesale auction recoveries vs. 27.7% in Q1 2025

Previous Earnings Reports

5 past events · Latest: Mar 10

Same Type 5 events

1. Mar 10

   Q4 & FY 2025 earnings

   24h Move

   -2.1%

   Higher 2025 revenues and net income with growing contract purchases and portfolio.

2. Nov 10

   Q3 2025 earnings

   24h Move

   -8.3%

   Q3 revenue growth and stable net income with larger receivables and higher charge-offs.

3. Aug 11

   Q2 2025 earnings

   24h Move

   +0.4%

   Strong Q2 revenue and net income growth with record equity and larger portfolio.

4. May 12

   Q1 2025 earnings

   24h Move

   +0.5%

   Strong Q1 revenue growth, higher originations and record portfolio balance.

5. Feb 25

   Q4 & FY 2024 earnings

   24h Move

   -1.3%

   Double‑digit revenue growth and record portfolio, offset by higher expenses and delinquencies.

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

Key Terms

annualized net charge-offs, repossession inventory, restricted cash and equivalents, warehouse lines of credit, +4 more

8 terms

annualized net charge-offs financial

"Annualized net charge-offs for the first quarter of 2026 were 8.57%..."

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.

repossession inventory financial

"Delinquencies greater than 30 days (including repossession inventory) decreased to 11.58%..."

Repossession inventory is the stock of assets—most often vehicles, equipment or property—that a lender has taken back after a borrower failed to make payments and that are being held for resale or disposal. Investors watch this inventory because its size and condition signal how many loans are going bad, how much money might be recovered when the items are sold, and how quickly a lender can turn reclaimed assets into cash; think of it as a lender’s garage of returned items waiting to be sold.

restricted cash and equivalents financial

"Restricted cash and equivalents | | 178,469 | | 165,885"

Funds on a company’s balance sheet that are cash or easily converted to cash but cannot be freely spent because they’re held for a specific purpose or subject to legal or contractual limits. Think of it like money in a locked safe earmarked for a mortgage payment or regulatory deposit: it exists and boosts reported cash totals, but isn’t available for day‑to‑day needs. Investors watch this because high levels reduce true operating liquidity, affect key ratios and can change how much cash is actually available to fund growth or cover obligations.

warehouse lines of credit financial

"Warehouse lines of credit | | 467,138 | | 324,871"

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.

residual interest financing financial

"Residual interest financing | | 181,383 | | 142,982"

A financing arrangement where a lender or investor provides cash now in exchange for a claim on the leftover future value or ongoing cash flows from an asset or pool of assets, rather than a simple fixed loan repayment. It matters to investors because returns and obligations depend on how those assets perform: good performance can boost the financier’s payoff, while weak performance can reduce or eliminate expected returns, so this structure shifts more risk and reward tied to the underlying asset—think of selling a house but keeping the right to any future appreciation.

securitization trust debt financial

"Securitization trust debt | | 2,992,157 | | 2,986,574"

A securitization trust debt is a loan-like investment created when a group of cash-producing assets (like loans, leases or receivables) are placed into a legal trust and sold to investors who are paid from the assets’ cash flow. Think of it as slicing a stream of customer payments into bonds: investors buy pieces and get regular payouts, but their risk and return depend on the quality of the underlying assets and how the payments are prioritized.

subordinated renewable notes financial

"Subordinated renewable notes | | 27,508 | | 28,986"

Subordinated renewable notes are a type of debt a company issues that sits below senior creditors in the repayment order and can be renewed or extended instead of repaid when it matures. Think of them like a loan you take with the lender’s option to roll it over: investors usually earn higher interest for the extra risk, but they may be paid later or lose value if the issuer faces financial trouble, so they affect a company’s risk profile and investor returns.

securitization markets financial

"We fund these contract purchases on a long-term basis primarily through the securitization markets..."

Securitization markets are where pools of loans or other cash-generating assets (like mortgages, auto loans, or credit-card receivables) are bundled, converted into tradable securities, and sold to investors. Investors use these markets to gain exposure to regular income streams and to spread risk much like buying slices of a large pizza instead of the whole pie; changes in credit quality, interest rates, or regulatory rules can affect returns and liquidity, so they matter for portfolio income, risk management, and market stability.

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

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• 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, an 18% 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, an 18% 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 $5.5 million, or $0.24 per diluted share for its first quarter ended March 31, 2026. This represents an 18% increase in net income compared to $4.7 million in the first quarter of 2025. Earnings per diluted share increased by 26% compared to $0.19 in the first quarter of 2025.

Revenues for the first quarter of 2026 were $112.3 million, an increase of $5.5 million, or 5.1%, compared to $106.9 million for the first quarter of 2025. Total operating expenses for the first quarter of 2026 were $104.3 million compared to $100.1 million for the 2025 period. Pretax income for the first quarter of 2026 was $8.0 million compared to pretax income of $6.8 million, an increase of $1.2 million or 18% from the first quarter of 2025.

During the first quarter of 2026, CPS purchased $533.2 million of new contracts. This stands as a 47% increase over the $363.0 million purchased during the fourth quarter of 2025, and an 18% increase over the $451.2 million purchased during the first quarter of 2025. The Company's receivables totaled $3.942 billion as of March 31, 2026, an increase from $3.779 billion as of December 31, 2025, and an increase from $3.615 billion as of March 31, 2025.

Delinquencies greater than 30 days (including repossession inventory) decreased to 11.58% of the total portfolio as of March 31, 2026, compared to 12.35% as of March 31, 2025. Annualized net charge-offs for the first quarter of 2026 were 8.57% of the average portfolio as compared to 7.54% for the first quarter of 2025.

“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
	$ (3)			% (4)			$ (3)			% (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.

FAQ

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

What were CPSS Q1 2026 revenues and EPS reported on May 5, 2026?

Revenues were $112.3 million and diluted EPS was $0.24. According to the company, revenue rose 5.1% year-over-year and diluted EPS improved from $0.19 in Q1 2025.

How large is CPSS's total portfolio balance as of March 31, 2026 (CPSS)?

The total portfolio balance was $3.942 billion as of March 31, 2026. According to the company, this represents the highest portfolio balance in company history and increased from $3.615 billion a year earlier.

How much did CPSS purchase in new contracts in Q1 2026 and how did that compare to prior periods?

CPSS purchased $533.2 million of new contracts in Q1 2026. According to the company, that is up 18% year-over-year and up 47% versus Q4 2025 ($363.0 million).

What happened to CPSS delinquencies and net charge-offs in Q1 2026?

Delinquencies (including repossession inventory) fell to 11.58%, while annualized net charge-offs rose to 8.57%. According to the company, delinquencies improved versus 12.35% in Q1 2025 despite higher charge-offs.

When is the CPSS Q1 2026 conference call and how can investors join?

The conference call is scheduled for May 6, 2026 at 1:00 p.m. ET. According to the company, dial-in is (800) 715-9871 with passcode 8293043 and a replay will be available on the investor relations website.