Consumer Portfolio Services, Inc. Q4 FY2025 earnings call

• Renewed or signed a new warehouse line with Capital One for $150 million and a $900 million prime forward flow commitment. - 2025 portfolio was nearly $4 billion and expected to grow substantially in 2026. - In fourth quarter 2025, originated $363 million of new contracts. Full year 2025 purchased $1.638 billion of new contracts. - Implemented Generation 9 credit scoring model, increased approvals 11% and fundings about 8.4%. - Partnered with a large credit union for prime auto loans, getting origination and servicing fees. - Core operating expenses decreased year over year, with core operating expenses as a percentage of the managed portfolio down to 4.8%.

Fourth quarter revenues were $109.4 million, a 4% increase over the $105.3 million in the fourth quarter of 2024. Full year 2025 revenues were $434 million, a 10% increase over the $393 million in 2024. Interest income on the fair value portfolio was the main driver, up 16% year over year. The fair value portfolio sat at $3.6 billion and yielded 11.4%. Expenses in the fourth quarter were $102.2 million, a 4% increase over the $98 million in the fourth quarter of 2024. Full year 2025 expenses were $406 million, 11% higher than the $366 million in 2024. Pre-tax earnings for the fourth quarter were $7.2 million compared to $7.4 million in 2024. Full year pre-tax earnings was $28 million compared to $27.4 million in 2024.

• Focus on growth in 2026, expecting margins to improve through better interest rates. - Aim to improve portfolio performance by getting rid of 2022 and 2023 paper. - Believes interest rate environment is positive, rates steady or coming down, unemployment steady, setting up good environment for 2026 and beyond.

• 2022 and 2023 loan portfolios affected recoveries. - Industry competition from competitor acquisitions and exits. - Macro factors like inflation, interest rates, wage growth affecting customer cash flow. - Uncertainty from events like the Iran war.