CPS Announces New $900 Million Forward Flow Agreement

Rhea-AI Summary

Consumer Portfolio Services (Nasdaq: CPSS) announced a new forward flow program with Valley Strong Credit Union that began on December 12, 2025, enabling CPS to expand annual origination volumes by as much as $900 million. The program will target borrowers with prime credit and use CPS’s AI-enabled auto finance platform and proprietary loan and collections systems to originate and service prime automobile loans on behalf of Valley Strong.

Valley Strong operates 31 branches, serves about 360,000 members, and holds approximately $4 billion in assets. CPS said the partnership supports its goal of becoming a full spectrum lender and strengthening dealer relationships.

Positive

• $900 million potential annual origination expansion
• Targets prime credit borrowers via AI-enabled platform
• Leverages proprietary AI loan and collections systems
• Extends national footprint via partnership with Valley Strong (31 branches, ~$4B assets)

Negative

• None.

News Market Reaction

+3.81%

2 alerts

+3.81% News Effect

+3.7% Peak Tracked

+$7M Valuation Impact

$200M Market Cap

0.2x Rel. Volume

On the day this news was published, CPSS gained 3.81%, reflecting a moderate positive market reaction. Argus tracked a peak move of +3.7% during that session. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $7M to the company's valuation, bringing the market cap to $200M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Forward flow capacity: $900 million Valley Strong branches: 31 branches Members served: 360,000 individuals +1 more

4 metrics

Forward flow capacity $900 million Maximum annual origination volume expansion from Valley Strong program

Valley Strong branches 31 branches Valley Strong Credit Union branch count in Central Valley counties

Members served 360,000 individuals Valley Strong Credit Union membership base

Valley Strong assets $4 billion Total assets of Valley Strong Credit Union

Market Reality Check

Price: $8.70 Vol: Volume 7,906 vs 20-day av...

low vol

$8.70 Last Close

Volume Volume 7,906 vs 20-day average 16,553 ahead of this announcement. low

Technical Shares at 9.055, trading above 200-day MA of 8.71 and about 28.87% below the 52-week high.

Peers on Argus

Peers showed mixed moves: LPRO up 15.73%, FOA up 2.41%, while PMTS fell 0.36% an...

Peers showed mixed moves: LPRO up 15.73%, FOA up 2.41%, while PMTS fell 0.36% and OPRT fell 3.7%, indicating stock-specific context for CPSS.

Historical Context

5 past events · Latest: Nov 12 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 12	Governance dispute	Negative	+1.5%	Major shareholder opposed 2025 Equity Incentive Plan over dilution concerns.
Nov 10	Quarterly earnings	Positive	+0.0%	Q3 2025 revenue and net income grew with larger receivables portfolio.
Nov 07	Earnings call notice	Neutral	+2.2%	Announced timing and access details for Q3 2025 earnings call.
Oct 23	ABS securitization	Positive	+0.1%	Closed <b>$384.6 million</b> AAA-rated auto receivables securitization.
Oct 23	Credit facility	Neutral	+1.0%	Closed <b>$167.5 million</b> revolving credit facility secured by receivables.

Pattern Detected

Recent financing and capital-markets actions (securitizations, credit facilities) have generally seen modestly positive or flat price reactions, while governance-related tension drew a positive reaction despite critical tone.

Recent Company History

Over the past few months, CPSS has focused on funding and capital structure. It closed a $167.5 million two-year revolving credit facility and a $384.6 million asset-backed securitization in October 2025, supporting its auto receivables funding. Q3 2025 results showed revenue of $108.4 million and net income of $4.9 million, with receivables of $3.760 billion. Governance was in focus as a large shareholder opposed the 2025 Equity Incentive Plan, which was later approved at the annual meeting. Today’s forward flow agreement adds another channel to grow origination volumes alongside these funding initiatives.

Market Pulse Summary

This announcement highlights a new forward flow program with Valley Strong Credit Union that could e...

Analysis

This announcement highlights a new forward flow program with Valley Strong Credit Union that could expand CPS’s annual originations by up to $900 million, primarily in prime credit. It complements prior securitizations and warehouse facilities that have funded a receivables base above $3.7 billion. Investors may watch how quickly volume ramps through this channel, the credit performance of prime loans versus CPS’s traditional book, and how funding costs and capital usage evolve as this partnership scales.

Key Terms

forward flow program, ai enabled auto finance platform

2 terms

forward flow program financial

"it began a new forward flow program with Valley Strong Credit Union"

A forward flow program is an agreement in which an investor commits in advance to buy a steady stream of newly originated loans, mortgages, or other receivables over a set period at prearranged terms. For investors, it creates a predictable pipeline of assets and cash flow while giving them ongoing exposure to newly issued credit and the ability to spread or manage risk, much like subscribing to a regular delivery of goods rather than buying one-off orders.

ai enabled auto finance platform technical

"through its AI enabled auto finance platform"

An AI-enabled auto finance platform is a digital system that uses artificial intelligence to handle car loans and leases, from assessing credit and pricing deals to automating paperwork and collections. Think of it as a smart loan officer and back office rolled into software that learns and speeds up decisions. Investors care because it can cut costs, reduce defaults, scale faster than human teams, and improve profit margins — but it also brings model, data and regulatory risks.

AI-generated analysis. Not financial advice.

LAS VEGAS, Nevada, Jan. 13, 2026 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced that on December 12, 2025, it began a new forward flow program with Valley Strong Credit Union, a leading full-service credit union located in California’s Central Valley.

Valley Strong’s commitment under the forward flow program will enable CPS to expand its annual origination volumes by as much as $900 million. The program will focus on borrowers with prime credit, providing CPS the opportunity to serve borrowers in all tiers of the credit spectrum, through its AI enabled auto finance platform. Additionally, the program enhances CPS’ ability to be a full spectrum lender and will further establish CPS as the preferred lender for its dealership partners. Finally, CPS will leverage its proprietary, AI enhanced loan and collections systems on behalf of Valley Strong to originate and service the prime automobile loans.

“We are excited to begin our partnership with Valley Strong,” said Mike Lavin, President and Chief Operating Officer of CPS. “The partnership will contribute to the growth in our origination volumes, allow us to move closer to our goal of being a full spectrum lender for our dealer partners, and expand our national footprint of our AI enabled platform.”

“Valley Strong Credit Union is committed to delivering innovative financial solutions to our members," said Nicholas Ambrosini, President and CEO of Valley Strong. "This partnership with CPS aligns with our mission to provide access to competitive auto financing options while leveraging advanced technology to enhance the member experience.”

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 through the securitization markets and service the contracts over their lives.

About Valley Strong Credit Union

Valley Strong Credit Union operates 31 branches in Kern, San Joaquin, Solano, and Tulare/Kings Counties, serving more than 360,000 individuals, with approximately $4 billion in assets. Named by Forbes as the #2 Credit Union in California, it remains one of the largest financial institutions headquartered in the Central Valley. 

Investor Relations Contact

Mike Lavin, President/ Chief Operating Officer
949-450-3038

FAQ

What did CPSS announce on January 13, 2026 about a forward flow agreement?

CPSS announced a forward flow program with Valley Strong that began on December 12, 2025, enabling up to $900 million of annual origination capacity.

How will the CPSS and Valley Strong forward flow affect CPSS origination volumes?

The program is expected to expand CPSS’s annual origination volumes by as much as $900 million and target prime automobile loans.

What role will CPSS’s AI platform play in the CPSS (Nasdaq: CPSS) deal with Valley Strong?

CPSS will use its AI-enabled auto finance platform and proprietary loan and collections systems to originate and service prime loans for Valley Strong.

What are Valley Strong Credit Union’s scale metrics referenced in the CPSS announcement?

Valley Strong operates 31 branches, serves about 360,000 members, and holds approximately $4 billion in assets.

Does the CPSS forward flow change CPS’s borrower focus?

The program will focus on prime credit borrowers while enabling CPS to serve all credit tiers through its platform.