Consumer Portfolio Services (CPSS) boosts Q1 2026 EPS 26% on portfolio growth
Rhea-AI Filing Summary
Consumer Portfolio Services, Inc. reported stronger results for the first quarter ended March 31, 2026. Net income was $5.5 million, up 18% from $4.7 million a year earlier, and diluted earnings per share rose 26% to $0.24 from $0.19.
Revenue for the quarter reached $112.3 million, a 5.1% increase from $106.9 million in the prior-year period, while total operating expenses were $104.3 million versus $100.1 million. Pretax income grew to $8.0 million from $6.8 million, also an 18% increase.
The company’s auto finance business expanded meaningfully. New contract purchases were $533.2 million, up 18% year over year and 47% above the fourth quarter of 2025. The total portfolio balance climbed to a record $3.942 billion, compared with $3.615 billion a year earlier. Credit performance was mixed: delinquencies over 30 days plus repossessions improved to 11.58% from 12.35%, but annualized net charge-offs rose to 8.57% of the average portfolio from 7.54%.
Positive
- Profitability improved materially: Q1 2026 net income rose 18% to $5.5 million and diluted EPS increased 26% to $0.24, outpacing 5.1% revenue growth and signaling better earnings leverage.
- Portfolio and originations reached new highs: New contract purchases grew to $533.2 million (up 18% year over year and 47% sequentially), and the total portfolio balance reached a record $3.942 billion.
Negative
- Credit losses increased: Annualized net charge-offs rose to 8.57% of the average portfolio in Q1 2026 from 7.54% a year earlier, indicating a higher level of realized credit losses.
Insights
Stronger Q1 earnings and portfolio growth, with higher credit losses.
Consumer Portfolio Services delivered solid earnings leverage in Q1 2026. Revenue increased to $112.3M while net income rose 18% to $5.5M, and diluted EPS climbed 26% to $0.24, indicating improved profitability per share.
Growth in the underlying auto loan book was notable. New contract purchases reached $533.2M, up 18% year over year, and the total portfolio balance hit a record $3.942B. This shows the company is originating and retaining more volume while keeping operating expenses relatively contained.
Credit metrics present a nuanced picture. Delinquencies over 30 days plus repossession inventory improved to 11.58% from 12.35%, but annualized net charge-offs increased to 8.57% of average portfolio from 7.54%. Future filings for periods after March 31, 2026 will indicate whether higher charge-offs persist as the portfolio grows.
8-K Event Classification
Key Figures
Key Terms
securitization trust debt financial
warehouse lines of credit financial
annualized net charge-offs financial
recovery rates financial
residual interest financing financial
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On May 5, 2026, the registrant announced its earnings for the three-month period ended March 31, 2026. A copy of the announcement is attached as an exhibit to this report. As noted in the announcement, the registrant 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.
Item 9.01. Financial Statements and Exhibits.
Neither financial statements nor pro forma financial information are filed with this report.
(d) Exhibits
One exhibit is included with this report:
| 99.1 | News release re earnings. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CONSUMER PORTFOLIO SERVICES, INC. | |
| Dated: May 5, 2026 | By: /s/ Denesh Bharwani |
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Denesh Bharwani Executive Vice President and Chief Financial Officer Signing on behalf of the registrant |
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Exhibit 99.1
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NEWS RELEASE |
CPS ANNOUNCES FIRST QUARTER 2026 EARNINGS
| § | 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 5, 2026 (GlobeNewswire) -- 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.
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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
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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 | ||||||
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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 | |||||
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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.
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