CPS Announces Second Quarter 2026 Earnings
Rhea-AI Summary
Consumer Portfolio Services (Nasdaq: CPSS) reported second quarter 2026 net income of $6.2 million, or $0.27 per diluted share, up 30% and 35% respectively from the 2025 quarter. Revenues rose 10.6% to $121.4 million as total operating expenses increased to $112.4 million from $102.8 million.
Pre‑tax income grew 30% to $9.0 million. For the first half of 2026, revenues increased 8% to $233.7 million and net income rose 24% to $11.8 million, or $0.50 diluted EPS. New contract purchases reached $757.7 million in the quarter, 75% above the prior year period. Receivables climbed to $4.31 billion from $3.71 billion, while total delinquencies plus repossession inventory declined to 12.16% from 13.14%. Annualized net charge‑offs improved slightly to 7.28% of average portfolio, and recovery rates increased to 33.3%. Cash, restricted cash, and finance receivables at fair value totaled $4.42 billion of assets, funded largely by $3.13 billion in securitization debt and $679.9 million in warehouse lines.
Positive
- Revenue up 10.6% to $121.4M in Q2 2026
- Net income up 30% to $6.2M in Q2 2026
- Diluted EPS up 35% to $0.27 in Q2 2026
- Six‑month net income up 24% to $11.8M
- New contracts purchased up 75% to $757.7M in Q2
- Portfolio balance up to $4.31B from $3.71B year over year
- Total delinquencies plus repo inventory down to 12.16% from 13.14%
- Annualized net charge‑offs improved to 7.28% from 7.45%
- Recovery rates increased to 33.3% from 30.4%
- Shareholders’ equity increased to $319.2M from $309.5M
Negative
- Total operating expenses up to $112.4M from $102.8M
- Interest expense increased to $64.3M from $58.7M in Q2
- Warehouse lines of credit more than doubled to $679.9M
- Securitization trust debt up to $3.13B from $2.99B
- Net interest margin slightly lower at 5.1% vs 5.2% six‑month
- No mark‑to‑fair‑value income versus $3.0M in prior‑year quarter
- Total delinquencies plus repo inventory remain elevated at 12.16%
- Annualized net charge‑offs high at 7.28% of average portfolio
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | First-quarter earnings | Positive | +2.6% | Revenue, net income and portfolio balance increased year over year. |
| Mar 10 | Fourth-quarter earnings | Positive | -2.1% | Annual revenue and contract purchases increased despite higher operating expenses. |
| Nov 10 | Third-quarter earnings | Neutral | -8.3% | Revenue increased while diluted EPS was roughly flat and credit losses remained elevated. |
| Aug 11 | Second-quarter earnings | Positive | +0.4% | Revenue, net income and receivables increased year over year. |
| May 12 | First-quarter earnings | Positive | +0.5% | Revenue and portfolio balance increased while net charge-offs decreased. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tag history showed three aligned and two divergent reactions, with an average move of -1.37%.
Key Terms
net charge-offs financial
fair value financial
securitization markets financial
subordinated renewable notes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Revenues of
$121.4 million compared to$109.8 million in the prior year period - Net income for the second quarter of 2026 increased
30% to$6.2 million - Total portfolio balance eclipsed
$4 billion , finishing the second quarter at$4.31 billion - New contract purchases of
$758 million in the second quarter, a75% increase from the prior year second quarter
LAS VEGAS, NV, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of
Revenues for the second quarter of 2026 were
For the six months ended June 30, 2026, total revenues were
During the second quarter of 2026, CPS purchased
Delinquencies greater than 30 days (including repossession inventory) decreased to
“We achieved our highest volume of loan originations ever in the second quarter,” said Charles E. Bradley, Chief Executive Officer. “The increase in volume delivers strong revenue and earnings growth without compromising our credit underwriting standards.”
Conference Call
CPS announced that it will hold a conference call on August 5, 2026 at 1:00 p.m. ET to discuss its second quarter 2026 operating results.
Those wishing to participate can pre-register for the conference call at the following link https://register-conf.media-server.com/register/BI6cf5cc4ebbd04b06973dad16be4d5d43. 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 | Six months ended | |||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Interest income | $ | 118,112 | $ | 105,362 | $ | 226,833 | $ | 207,295 | ||||||||||||||||||
| Mark to finance receivables measured at fair value | - | 3,000 | - | 6,500 | ||||||||||||||||||||||
| Other income | 3,277 | 1,402 | 6,890 | 2,843 | ||||||||||||||||||||||
| 121,389 | 109,764 | 233,723 | 216,638 | |||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||
| Employee costs | 23,418 | 24,362 | 46,464 | 49,395 | ||||||||||||||||||||||
| General and administrative | 14,673 | 12,402 | 27,581 | 24,966 | ||||||||||||||||||||||
| Interest | 64,253 | 58,704 | 124,314 | 113,622 | ||||||||||||||||||||||
| Other expenses | 10,010 | 7,344 | 18,301 | 14,901 | ||||||||||||||||||||||
| 112,354 | 102,812 | 216,660 | 202,884 | |||||||||||||||||||||||
| Income before income taxes | 9,035 | 6,952 | 17,063 | 13,754 | ||||||||||||||||||||||
| Income tax expense | 2,801 | 2,155 | 5,290 | 4,263 | ||||||||||||||||||||||
| Net income | $ | 6,234 | $ | 4,797 | $ | 11,773 | $ | 9,491 | ||||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||||
| Basic | $ | 0.29 | $ | 0.22 | $ | 0.54 | $ | 0.44 | ||||||||||||||||||
| Diluted | $ | 0.27 | $ | 0.20 | $ | 0.50 | $ | 0.39 | ||||||||||||||||||
| Number of shares used in computing earnings per share: | ||||||||||||||||||||||||||
| Basic | 21,633 | 21,893 | 21,704 | 21,670 | ||||||||||||||||||||||
| Diluted | 23,485 | 24,180 | 23,509 | 24,254 | ||||||||||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||||
| (In thousands) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| June 30, | December 31, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| Assets: | ||||||||||||||
| Cash and cash equivalents | $ | 7,501 | $ | 6,322 | ||||||||||
| Restricted cash and equivalents | 172,703 | 165,885 | ||||||||||||
| Finance receivables measured at fair value | 4,212,167 | 3,655,855 | ||||||||||||
| Other assets | 29,850 | 30,131 | ||||||||||||
| $ | 4,422,221 | $ | 3,858,193 | |||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||
| Accounts payable and accrued expenses | $ | 94,698 | $ | 65,244 | ||||||||||
| Warehouse lines of credit | 679,900 | 324,871 | ||||||||||||
| Residual interest financing | 168,809 | 142,982 | ||||||||||||
| Securitization trust debt | 3,131,105 | 2,986,574 | ||||||||||||
| Subordinated renewable notes | 28,461 | 28,986 | ||||||||||||
| 4,102,973 | 3,548,657 | |||||||||||||
| Shareholders' equity | 319,248 | 309,536 | ||||||||||||
| $ | 4,422,221 | $ | 3,858,193 | |||||||||||
| Operating and Performance Data ($ in millions) | ||||||||||||||||||||||||||
| At and for the | At and for the | |||||||||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Contracts purchased | $ | 757.67 | $ | 433.02 | $ | 1,290.89 | $ | 884.24 | ||||||||||||||||||
| Contracts securitized | $ | 526.17 | $ | 439.29 | 878.83 | 901.83 | ||||||||||||||||||||
| Total portfolio balance (1) | $ | 4,306.66 | $ | 3,708.38 | $ | 4,306.66 | $ | 3,708.38 | ||||||||||||||||||
| Average portfolio balance (1) | $ | 4,185.95 | $ | 3,682.96 | 4,019.85 | 3,627.80 | ||||||||||||||||||||
| Delinquencies (1) | ||||||||||||||||||||||||||
| 31+ Days | 9.97 | % | 10.50 | % | ||||||||||||||||||||||
| Repossession Inventory | 2.19 | % | 2.64 | % | ||||||||||||||||||||||
| Total Delinquencies and Repo. Inventory | 12.16 | % | 13.14 | % | ||||||||||||||||||||||
| Annualized Net Charge-offs as % of Average Portfolio (1) | 7.28 | % | 7.45 | % | 7.90 | % | 7.49 | % | ||||||||||||||||||
| Recovery rates (1), (2) | 33.3 | % | 30.4 | % | 32.1 | % | 29.0 | % | ||||||||||||||||||
| For the | For the | ||||||||||||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||
| $ (3) | % (4) | $ (3) | % (4) | $ (3) | % (4) | $ (3) | % (4) | ||||||||||||||||||||
| Interest income | $ | 118.11 | 11.3 | % | $ | 105.36 | 11.4 | % | $ | 226.83 | 11.3 | % | $ | 207.30 | 11.4 | % | |||||||||||
| Interest expense | (64.25 | ) | -6.1 | % | (58.70 | ) | -6.4 | % | (124.31 | ) | -6.2 | % | (113.62 | ) | -6.3 | % | |||||||||||
| Net interest margin | 53.86 | 5.1 | % | 46.66 | 5.1 | % | 102.52 | 5.1 | % | 93.67 | 5.2 | % | |||||||||||||||
| Mark to finance receivables measured at fair value | - | 0.0 | % | 3.00 | 0.3 | % | - | 0.0 | % | 6.50 | 0.4 | % | |||||||||||||||
| Other income | 3.28 | 0.3 | % | 1.40 | 0.2 | % | 6.89 | 0.3 | % | 2.84 | 0.2 | % | |||||||||||||||
| Operating expenses (5) | (48.10 | ) | -4.6 | % | (44.11 | ) | -4.8 | % | (92.35 | ) | -4.6 | % | (89.26 | ) | -4.9 | % | |||||||||||
| Pre-tax income | $ | 9.03 | 0.9 | % | $ | 6.95 | 0.8 | % | $ | 17.06 | 0.8 | % | $ | 13.75 | 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. | |||||||||||||||||||||||||||
