CPS Announces Fourth Quarter and Full Year 2025 Earnings

Rhea-AI Summary

Consumer Portfolio Services (Nasdaq: CPSS) reported fourth-quarter 2025 net income of $4.98 million ($0.21 diluted) and full-year 2025 net income of $19.33 million ($0.80 diluted). Total revenues for 2025 were $434.5 million, up 10.4% year-over-year, driven by interest income of $422.7 million (up 16%). The company purchased $1.638 billion of new contracts in 2025 and reported a total portfolio balance of $3.779 billion as of December 31, 2025. Operating expenses rose to $406.5 million, and annualized net charge-offs were 7.76% of average portfolio for 2025.

Positive

• Total revenue +10.4% YoY to $434.5M for 2025
• Interest income +16% YoY to $422.7M, primary revenue driver
• Record annual revenue and portfolio increased to $3.779B at year-end

Negative

• Operating expenses +11.1% YoY to $406.5M for 2025
• Annualized net charge-offs 7.76% of average portfolio, indicating credit loss pressure

News Market Reaction – CPSS

-2.07%

1 alert

-2.07% News Effect

On the day this news was published, CPSS declined 2.07%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

2025 interest income: $422.7 million 2025 total revenues: $434.5 million 2025 net income: $19.3 million +5 more

8 metrics

2025 interest income $422.7 million Full year 2025; 16% increase from prior year

2025 total revenues $434.5 million Full year 2025 vs $393.5 million in 2024; up 10.4%

2025 net income $19.3 million Full year 2025 vs $19.2 million in 2024

2025 diluted EPS $0.80 Full year 2025 diluted EPS vs $0.79 in 2024

Q4 2025 revenue $109.4 million Quarter ended Dec 31, 2025; up from $105.3 million in Q4 2024

2025 new contracts $1.638 billion New contract purchases for 2025 vs $1.682 billion in 2024

Receivables balance $3.779 billion Total receivables as of Dec 31, 2025 vs $3.491 billion in 2024

2025 net charge-offs 7.76% Net charge-offs as % of average portfolio vs 7.62% in 2024

Market Reality Check

Price: $7.57 Vol: Volume 17,981 is 1.61x th...

high vol

$7.57 Last Close

Volume Volume 17,981 is 1.61x the 20-day average, signaling elevated interest ahead of earnings. high

Technical Shares at $8.27 are trading below the $8.63 200-day MA, despite record 2025 revenues.

Peers on Argus

CPSS is up 3.37% with higher-than-average volume, while key peers show mixed mov...

CPSS is up 3.37% with higher-than-average volume, while key peers show mixed moves (e.g., LPRO +3.79%, MFIN -2.47%). This points to a company-specific earnings reaction rather than a broad credit services move.

Common Catalyst Some peers like FOA also reported earnings, but only one peer has same-day news, suggesting idiosyncratic rather than sector-wide drivers.

Previous Earnings Reports

5 past events · Latest: Nov 10 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 10	Q3 2025 earnings	Positive	-8.3%	Revenue grew to <b>$108.4M</b> but stock fell despite steady net income.
Aug 11	Q2 2025 earnings	Positive	+0.4%	Strong revenue growth of <b>14.5%</b> and higher net income supported a small gain.
May 12	Q1 2025 earnings	Positive	+0.5%	Revenue up <b>16.6%</b> and record <b>$3.615B</b> portfolio led to a mild rise.
Feb 25	FY 2024 earnings	Neutral	-1.3%	Record <b>$393.5M</b> revenue but higher expenses and credit losses weighed on shares.
Oct 31	Q3 2024 earnings	Neutral	+0.0%	Revenue and portfolio grew, but margin pressure kept the reaction flat.

Pattern Detected

Earnings releases have produced modest, slightly negative average moves of -1.74%, with occasional sharp downside despite fundamentally improving revenues and portfolio size.

Recent Company History

Over the past year, CPS has reported steadily growing revenues and portfolio balances. Q1–Q3 2025 earnings showed rising revenues (e.g., Q1 revenue up 16.6% to $106.9 million) with net income around $4.7–4.9 million per quarter and record portfolio levels above $3.6 billion. However, higher operating expenses and elevated delinquencies and charge-offs have tempered investor responses. The latest 2025 Q4 and full-year report extends this pattern with record full-year revenue of $434.5 million and stable net income of $19.3 million, fitting the trajectory of growth balanced by credit and cost pressures.

Historical Comparison

-1.7% avg move · Past earnings for CPSS have averaged a -1.74% move. Today’s +3.37% pre-news gain stands out versus t...

earnings

-1.7%

Average Historical Move earnings

Past earnings for CPSS have averaged a -1.74% move. Today’s +3.37% pre-news gain stands out versus typically muted or negative reactions.

Earnings releases show a progression from strong 2024 revenue growth into 2025 record highs, with total portfolio balances and shareholders’ equity repeatedly reaching new peaks despite persistent credit and cost headwinds.

Market Pulse Summary

This announcement highlights record 2025 revenue of $434.5 million, interest income of $422.7 millio...

Analysis

This announcement highlights record 2025 revenue of $434.5 million, interest income of $422.7 million, and a larger receivables portfolio of $3.779 billion, while net income held essentially flat at $19.3 million. Operating expenses and credit costs, including net charge-offs of 7.76% and delinquencies plus repossessions at 14.77%, remain key constraints. Compared with prior quarters, the story continues to be growth balanced against credit and funding costs. Investors may watch future earnings for trends in charge-offs, delinquencies, and interest expense.

Key Terms

securitization, asset-backed notes, over-collateralization, residual interests, +4 more

8 terms

securitization financial

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

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.

asset-backed notes financial

"Qualified institutional buyers purchased asset-backed notes secured by an 80% interest"

Asset-backed notes are investment papers that pay investors from the income produced by a pooled set of assets, such as loans, leases, or receivables. Think of buying a slice of a fruit basket where your returns come from sales of the fruit; the value and safety of the notes depend on how healthy the underlying assets are and how the payments are prioritized, so investors watch expected returns, default risk and liquidity closely.

over-collateralization financial

"80% of spread-account deposits and 80% of over-collateralization for each securitization"

Over-collateralization is when the assets pledged to secure a loan or debt are worth more than the amount borrowed, creating an extra cushion for creditors. For investors, it matters because that extra buffer reduces the chance of loss if borrowers default — like having more insurance than the value of the thing insured — which usually makes a security safer but can also lower potential returns or tie up capital.

residual interests financial

"a $50.0 million private securitization of residual interests on March 4, 2026"

A residual interest is the claim on whatever cash or value remains after a set of prioritized obligations have been paid; think of it as the last slice of a pie left over once everyone else has taken their agreed portion. For investors, holding a residual interest means potential for higher returns if collections or asset values exceed expectations, but also greater volatility and risk because any shortfall is absorbed by the residual holder.

subordinated renewable notes financial

"Subordinated renewable notes | | 28,986 | | 26,489"

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.

provision for credit losses financial

"Provision for credit losses | | (462 | ) | | (728 | )"

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

forward-looking statements regulatory

"Forward-looking statements in this news release include the Company's recorded figures"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

delinquencies financial

"Delinquencies greater than 30 days (including repossession inventory) were 14.77%"

Delinquencies are loans, mortgages or other credit payments that are past their scheduled due date and remain unpaid. Think of them like overdue bills in a household: a growing number or size of unpaid accounts signals higher risk that borrowers can’t meet obligations, which can reduce a lender’s income and raise the chance of losses—useful for investors assessing credit quality and economic stress.

AI-generated analysis. Not financial advice.

• Interest income increased to $422.7 million for 2025, a 16% increase from prior year
• New contract purchases of $1.638 billion for the full year 2025
• Net income of $19.3 million, or $0.80 per diluted share for 2025
  
  

LAS VEGAS, NV, March 10, 2026 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of $5.0 million, or $0.21 per diluted share, for its fourth quarter ended December 31, 2025.

Total revenues for the fourth quarter of 2025 were $109.4 million, an increase of $4.1 million, or 3.9%, compared to $105.3 million for the fourth quarter of 2024. Total operating expenses for the fourth quarter of 2025 were $102.2 million compared to $98.0 million for the 2024 period. Pretax income for the fourth quarter of 2025 was $7.2 million, compared to $7.4 million in the fourth quarter of 2024.

For the twelve months ended December 31, 2025, total revenues were $434.5 million, an increase of approximately $41.0 million, or 10.4% compared to $393.5 million for the twelve months ended December 31, 2024. The $41.0 million increase in total revenue was attributable to a $58.7 million increase in interest income, offset by lower marks on the receivables measured at fair value in the current year when compared to the prior year. Total operating expenses for the twelve months ended December 31, 2025, were $406.5 million, compared to $366.1 million for the twelve months ended December 31, 2024. Pretax income for the twelve months ended December 31, 2025, was $28.0 million, compared to $27.4 million for the twelve months ended December 31, 2024. Net income for the twelve months ended December 31, 2025, increased to $19.3 million from $19.2 million for the twelve months ended December 31, 2024.

For the twelve months ended, CPS purchased $1.638 billion of new contracts compared to $1.682 billion during the same period in 2024. The Company's receivables totaled $3.779 billion as of December 31, 2025, an increase from $3.760 billion as of September 30, 2025, and an increase from $3.491 billion as of December 31, 2024.

Net charge-offs for the twelve months of 2025 were 7.76% of the average portfolio as compared to 7.62% for the same period in 2024. Delinquencies greater than 30 days (including repossession inventory) were 14.77% of the total portfolio as of December 31, 2025, as compared to 14.85% as of December 31, 2024.

“We finished 2025 with the highest recorded revenue in company history,” said Charles E. Bradley, Chief Executive Officer. “After a strong year of origination volume and improvements in operating efficiencies, we are well positioned going into 2026.”

Conference Call

CPS announced that it will hold a conference call on March 11, 2026, at 1:00 p.m. ET to discuss its fourth 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/BI939b54a85b184d6b8c4cb82440102b17. 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 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												Twelve months ended
			December 31,												December 31,
				2025						2024						2025						2024
Revenues:
Interest income			$	108,236					$	98,150					$	422,698					$	363,962
Mark to finance receivables measured at fair value				-						5,000						6,500						21,000
Other income				1,174						2,153						5,272						8,544
				109,410						105,303						434,470						393,506
Expenses:
Employee costs				23,509						23,889						95,369						96,192
General and administrative				12,723						14,422						52,870						54,710
Interest				59,304						52,522						232,024						191,257
Provision for credit losses				(462	)					(728	)					(2,934	)					(5,307	)
Other expenses				7,119						7,847						29,138						29,223
				102,193						97,952						406,467						366,075
Income before income taxes				7,217						7,351						28,003						27,431
Income tax expense				2,236						2,206						8,678						8,228
Net income			$	4,981					$	5,145					$	19,325					$	19,203
Earnings per share:
Basic			$	0.23					$	0.24					$	0.88					$	0.90
Diluted			$	0.21					$	0.21					$	0.80					$	0.79
Number of shares used in computing earnings
per share:
Basic				21,998						21,412						21,889						21,292
Diluted				23,764						24,274						24,081						24,325

Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
			December 31,				December 31,
			2025				2024
Assets:
Cash and cash equivalents			$	6,322			$	11,713
Restricted cash and equivalents			165,885				125,684
Finance receivables measured at fair value			3,655,855				3,313,767
Finance receivables, net			520				4,987
Other assets			29,611				37,717
			$	3,858,193			$	3,493,868
Liabilities and Shareholders' Equity:
Accounts payable and accrued expenses			$	65,244			$	70,151
Warehouse lines of credit			324,871				410,898
Residual interest financing			142,982				99,176
Securitization trust debt			2,986,574				2,594,384
Subordinated renewable notes			28,986				26,489
			3,548,657				3,201,098
Shareholders' equity			309,536				292,770
			$	3,858,193			$	3,493,868

Operating and Performance Data ($ in millions)
			At and for the								At and for the
			Three months ended								Twelve months ended
			December 31,								December 31,
			2025				2024				2025				2024
Contracts purchased			$	363.03			$	457.81			$	1,638.33			$	1,681.94
Contracts securitized			$	392.46			$	436.00			1,727.78				1,533.85
Total portfolio balance (1)			$	3,778.65			$	3,490.96			$	3,778.65			$	3,490.96
Average portfolio balance (1)			$	3,774.26			$	3,445.52			3,693.80				3,209.99
Delinquencies (1)
31+ Days				11.83	%			12.11	%
Repossession Inventory				2.94	%			2.74	%
Total Delinquencies and Repo. Inventory				14.77	%			14.85	%
Annualized Net Charge-offs as % of Average Portfolio (1)				8.04	%			8.02	%			7.76	%			7.62	%
Recovery rates (1), (2)				28.5	%			27.2	%			28.8	%			30.1	%

			For the									For the
			Three months ended									Twelve months ended
			December 31,									December 31,
			2025				2024					2025					2024
			$ (3)		% (4)		$ (3)			% (4)		$ (3)			% (4)		$ (3)			% (4)
Interest income		$	108.24		11.5%		$	98.15		11.4%		$	422.70		11.4%		$	363.96		11.3%
Mark to finance receivables measured at fair value			-		0.0%		5.00			0.6%		6.50			0.2%		21.00			0.7%
Other income			1.17		0.1%		2.15			0.2%		5.27			0.1%		8.54			0.3%
Interest expense			(59.30	)	-6.3%		(52.52		)	-6.1%		(232.02		)	-6.3%		(191.26		)	-6.0%
Net interest margin			50.11		5.3%		52.78			6.1%		202.45			5.5%		202.25			6.3%
Provision for credit losses			0.46		0.0%		0.73			0.1%		2.93			0.1%		5.31			0.2%
Risk adjusted margin			50.57		5.4%		53.51			6.2%		205.38			5.6%		207.56			6.5%
Other operating expenses (5)			(43.35	)	-4.6%		(46.16		)	-5.4%		(177.38		)	-4.8%		(180.13		)	-5.6%
Pre-tax income		$	7.22		0.8%		$	7.35		0.9%		$	28.00		0.8%		$	27.43		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.

FAQ

What were Consumer Portfolio Services (CPSS) fourth-quarter 2025 earnings per share?

CPSS reported diluted EPS of $0.21 for Q4 2025. According to the company, Q4 net income was $4.98 million, with total Q4 revenues of $109.4 million and pretax income of $7.22 million.

How did CPSS perform for full-year 2025 in revenue and net income?

CPSS reported full-year 2025 revenue of $434.5 million and net income of $19.33 million. According to the company, revenue rose 10.4% year-over-year driven mainly by a 16% increase in interest income.

What was the size of new contract purchases by CPSS in 2025 and how does it compare to 2024?

CPSS purchased $1.638 billion of new contracts in 2025, slightly below 2024's $1.682 billion. According to the company, origination volume remained substantial despite the year-over-year decline in contract purchases.

How did CPSS's operating expenses change in 2025 and what does that mean for margins?

Operating expenses increased to $406.5 million in 2025, an 11.1% rise year-over-year. According to the company, higher expenses partly offset revenue gains, keeping risk-adjusted margins relatively stable at around 5.6% annualized.

What credit metrics did CPSS report for 2025, including delinquencies and charge-offs?

CPSS reported total delinquencies and repossession inventory of 14.77% and annualized net charge-offs of 7.76% for 2025. According to the company, delinquencies were roughly flat year-over-year while charge-offs reflected portfolio credit performance.