CPS Announces Fourth Quarter and Full Year 2025 Earnings
MWN-AI** Summary
Consumer Portfolio Services, Inc. (CPS) announced its fourth quarter and full-year earnings for 2025, revealing strong financial performance and growth. For the full year, the company reported net income of $19.3 million, or $0.80 per diluted share, compared to $19.2 million for the prior year. Earnings for the fourth quarter totaled $5.0 million, or $0.21 per diluted share, reflecting a slight decline from $5.1 million in the same quarter of 2024.
Interest income surged to $422.7 million for 2025, marking a significant 16% increase compared to the previous year. This growth was complemented by total revenues of $434.5 million for the year, up 10.4% year-over-year. The company attributed this revenue growth to increased interest income, despite lower fair value marks on receivables affecting the financials.
Operating expenses for the full year increased to $406.5 million from $366.1 million, while pretax income rose to $28.0 million from $27.4 million in 2024. CPS experienced new contract purchases of $1.638 billion in 2025, a decrease from $1.682 billion the year prior. The company's portfolio of receivables stood at $3.779 billion as of December 31, 2025, up from $3.491 billion a year earlier.
While net charge-offs increased slightly to 7.76% of the average portfolio, delinquencies greater than 30 days improved marginally to 14.77%. CEO Charles E. Bradley expressed confidence in the company’s performance, stating, “We finished 2025 with the highest recorded revenue in company history,” positioning CPS well for 2026.
A conference call discussing these results is scheduled for March 11, 2026. Investors can access details through CPS’s investor relations webpage.
MWN-AI** Analysis
Consumer Portfolio Services, Inc. (CPS) recently reported strong fourth-quarter and full-year earnings for 2025, which, coupled with strategic vehicle financing, presents an intriguing opportunity for potential investors. The company reported a 16% increase in interest income, reaching $422.7 million for the year, highlighting effective portfolio management and revenue generation amidst a competitive environment.
Despite experiencing a modest dip in pretax income and net income for Q4 2025 compared to the previous year's fourth quarter, CPS's annual performance demonstrates solid fundamentals. Revenues increased by 10.4% year-over-year to $434.5 million, exacerbating the positive operational narrative. The slight uptick in total expenses (by approximately $40 million over the year) suggests that while costs are rising, they are being managed effectively relative to income growth.
The total new contract purchases for 2025 were slightly lower than in 2024 but remain substantial at $1.638 billion. This indicates CPS's ongoing demand and creditworthiness within the used automobile finance segment, which caters to consumers with credit challenges. Notably, the company reported a reduction in delinquencies greater than 30 days to 14.77%, from 14.85% in the prior year, indicating improved risk management.
Investors should consider CPS as a potential value play, particularly as the company is optimizing operating efficiencies going into 2026, according to CEO Charles E. Bradley. While charge-offs and delinquency rates deserve attention, the overall trajectory of revenue growth and interest income improvement signals a healthy outlook.
As CPS prepares for its March 11 conference call, potential investors might buy into the stock ahead of further clarifications regarding growth strategies and market positioning. Nevertheless, continual monitoring of market conditions and performance metrics will be vital in managing investment risks in this specialized financing sector.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- 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 factors contributed to the 16% increase in interest income to $422.7 million for Consumer Portfolio Services Inc. CPSS in 2025 compared to the previous year?
How does the new contract purchases of $1.638 billion in 20for Consumer Portfolio Services Inc. CPSS compare to the prior year, and what implications does this have for future growth?
With net income for Consumer Portfolio Services Inc. CPSS increasing only slightly to $19.3 million in 2025, what strategies is the company considering to enhance profitability in 2026?
Given the increase in net charge-offs to 7.76% of the average portfolio for Consumer Portfolio Services Inc. CPSS, how is the company managing credit risk moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Consumer Portfolio Services Inc. (NASDAQ: CPSS).
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