Consumer Portfolio Services, Inc. Q1 FY2026 earnings call

• Securitization program continues to run well with a $345 million securitization in the quarter, well-received with no problems.
• Residual financing program also running well and getting better pricing each time.
• Growth in originations platform starting to pay off with March showing significant increase, new loan originations at $533 million, 18% better than first quarter of 2025 and March alone accounting for $250 million.
• Added 2,335 new and reactivated dealers to active dealer base, increased sales reps from 96 to 124, average applications per month up 31% and capture rate improved from 5.98% to 7.65%.
• Put in Gen 9 credit model in October 2025, funding time under two days and error rate under 8%.

Revenues for the quarter were $112.3 million, up 5% from the first quarter of 2025. Driven by interest income of $108.7 million, which is up 6.7% over the prior year period. New loan originations were $533 million, 18% better than the first quarter of 2025. The failed value portfolio sits at $3.8 billion, yielding 11.3%. Expenses of $104.3 million is up 4% from the first quarter of 2025. Pre-tax earnings of $8 million is 18% higher than the first quarter of 2025. Net income is also 18% higher. Cash and restricted cash of $185.4 million is 1% higher than the first quarter of 2025. The fair value portfolio is $3.8 billion now, 11% higher than the first quarter of 2025. Shareholders' equity is $314.4 million, 5% higher than the 2025 quarter. Net interest margin is $48.7, a 3% increase from last year. Core operating expenses of $44.2 million is down 2% from the first quarter of 2025.

• Second quarter expected to be very interesting regarding growth from the efforts in the first quarter.
• Anticipate continuing growth due to expanded geographic footprint, added dealers, and more sales reps.

• Forward-looking statements subject to risks causing actual results to differ materially.
• Impact of Iran war on interest rates although securitizations are proceeding well despite market turbulence.
• Unemployment rate is a monitored metric affecting the business, historically low at 4.4% at start of quarter and went to 4.3%.

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