Consumer Portfolio Services, Inc. (CPSS) reported third-quarter 2026 revenue of $131.9 million, up 21.7% from $108.4 million a year earlier, and net income of $7.0 million, up 43.3% from $4.9 million. Diluted earnings per share rose 50.0% to $0.30 from $0.20. For the first nine months, revenue was $365.6 million versus $325.1 million, and net income was $18.7 million versus $14.3 million.
Third-quarter contract purchases increased 108.5% to $815.3 million from $391.1 million. The total loan portfolio was $4.711 billion as of September 30, 2026, 25.3% above $3.760 billion at the end of the third quarter of 2025. Operating expenses were $121.8 million versus $101.4 million, with the increase largely due to interest expense associated with higher loan origination volumes.
Credit measures improved year over year: total delinquencies including repossession inventory were 12.29% versus 13.96%, annualized net charge-offs were 7.26% versus 8.01%, and net recovery rates were 32.0% versus 28.7%. CPS renewed a warehouse line, raising its capacity to $508 million from $335 million, and closed its third asset-backed securitization of 2026, the company's 110th and largest deal in its 35-year history.
Consumer Portfolio Services, Inc. (CPSS) and its wholly owned subsidiary completed a securitization on October 21, 2026, transferring approximately $797.36 million of subprime automobile receivables through the subsidiary to CPS Auto Receivables Trust 2026-D. The Trust issued and sold $767.85 million of notes in five classes, with a weighted average coupon of approximately 6.68%. The notes are obligations only of the Trust, although treated as long-term debt obligations of CPS. CPS will service the receivables.
The five classes carry fixed interest rates. Initial credit enhancement includes a cash deposit equal to 1.00% of the original Receivables pool balance and 3.70% overcollateralization. The agreements require accelerated principal payments to bring overcollateralization to the lesser of 8.00% of the original pool or 19.40% of the then-outstanding pool, but not below 1.50% of the original pool. The Trust pays principal and interest monthly. CPS may purchase the Trust estate at fair market value when aggregate outstanding Receivables principal falls below 10% of the initial $797.36 million balance, provided the price is sufficient to pay the Notes in full and meet the Trust's other obligations.
Consumer Portfolio Services, Inc. (CPSS) and its wholly owned subsidiary Page Eleven Funding LLC amended a revolving credit agreement with Capital One, N.A. and a Class B lender, raising capacity from $390 million to up to $518 million outstanding at any time. Subject to the agreement’s terms, advances may be up to 95.5% of the principal amount of eligible pledged receivables. The loans are secured by automobile receivables CPS holds or may acquire from dealers and then sells or contributes to the subsidiary.
Revolving borrowing may continue through October 17, 2027, the funding termination date, unless defined events trigger an earlier termination. After the revolving period, CPS may repay outstanding loans in full or allow them to amortize over 18 months. The loans bear interest at a floating rate set as a margin above the secured overnight financing rate, and certain defined events of default could make amounts due earlier. The increase brings total capacity across CPS credit facilities to $1.026 billion. CPS first incurred indebtedness under this agreement on October 22, 2025, and said it intends to borrow from time to time as it acquires motor vehicle receivables from dealers.
Consumer Portfolio Services, Inc. (CPSS) executive vice president Teri Robinson reported a gift disposition of 660 common shares by the Teri Lee Robinson Living Trust on October 1, 2026. The report lists 538,733 shares as the indirect holdings following the transfer. No payment was received for the gift.
Consumer Portfolio Services, Inc. (CPSS) is soliciting votes at its October 27, 2026 annual meeting on nine director nominees, ratification of Crowe LLP as independent auditor for fiscal 2026, and a nonbinding advisory vote on named executive officer compensation. The board recommends voting for all three proposals. Shareholders of record on September 21, 2026 may vote; 21,905,185 common shares were outstanding on that date.
A quorum requires a majority of outstanding shares. Director elections use plurality voting; the other proposals require a majority of votes cast in favor, and those votes must exceed 25% of outstanding shares. In the 2025 advisory compensation vote, 62% of shares voted approved named executive officer compensation. Reported 2025 total compensation was $5,439,647 for CEO Charles E. Bradley, Jr., $1,386,590 for President Michael T. Lavin, and $1,254,849 for CFO Danny Bharwani.
CONSUMER PORTFOLIO SERVICES, INC. (CPSS) senior vice president Noel Jackson reported an option exercise-and-sale sequence on September 1, 2026. He exercised stock options for 7,500 shares of common stock at an exercise price of $2.47 per share, acquiring 7,500 shares, and then sold 7,500 shares of common stock at $9.31 per share. The option exercise relates to a 30,000-share grant that vested in four equal installments; after this exercise, 13,131 stock options remain directly held. No Rule 10b5-1 trading plan is reported.
CONSUMER PORTFOLIO SERVICES, INC. (CPSS) reported that Charles E. Bradley Jr., its CEO, director and ten percent owner, sold 125,000 shares of common stock in an open market or private transaction on August 26, 2026, at $9.46 per share. Following this sale, he directly owns 4,099,545 shares of CPSS common stock. The filing does not indicate that the transaction was made under a Rule 10b5-1 trading plan.
CONSUMER PORTFOLIO SERVICES, INC. (CPSS) updated the interest rates on its Renewable Unsecured Subordinated Notes, effective August 26, 2026. Annual interest rates vary by note term and investor “Portfolio Amount,” ranging from 4.50% for a 3‑month note at $1,000–$24,999 up to 8.40% for a 4‑year note at $100,000 or more. The supplement states that, where inconsistent, these specific rate terms control over the related base prospectus and prior prospectus supplement. The notes are being offered to investors in a defined list of U.S. states, including large markets such as California, Florida, New York, Ohio, Texas and others.
Consumer Portfolio Services, Inc. (CPSS) is offering up to $50,000,000 in renewable unsecured subordinated notes to new and existing investors, sold directly to the public at 100% of principal with no selling commissions. Investors may choose maturities from three months to ten years and various interest payment schedules; rates are fixed for each term and set from time to time in separate interest rate supplements, with potentially higher rates for larger aggregate holdings.
The notes are unsecured and deeply subordinated, ranking junior to substantially all existing and future CPS indebtedness and other obligations, and pari passu only with other CPS renewable unsecured subordinated notes. As of June 30, 2026, CPS had $3,979.8 million of debt and $4,074.5 million of obligations senior to these notes. The notes automatically renew at maturity unless CPS elects to repay or the holder requests repayment within 15 days; CPS may redeem them at par plus accrued interest on 30 days’ notice. There is no trading market, transfers require CPS consent, and the indenture contains only limited restrictive covenants. Net proceeds are intended to fund purchases of automobile contracts and for other general corporate purposes.