Regional Management (RM) investor relations material

Executive summary

• Net income reached $10.1M and diluted EPS was $1.03, both up 20% year-over-year, driven by record originations and portfolio growth of 10.5%.

• Record quarterly revenue of $157.4M, up 10.1% year-over-year, with growth in both interest and fee income and insurance income.

• Opened 17 new branches since September 2024, supporting portfolio and revenue growth, with further openings planned.

• Digital originations reached a record high, representing 32.2% of new borrower volume and driving portfolio expansion.

• Operating expense ratio hit an all-time best at 13.2%, reflecting strong cost control and efficiency gains.

Financial highlights

• Record total originations of $510.3M in Q2, up 19.8% year-over-year.

• Net finance receivables reached $2.0B, up $186.6M or 10.5% from the prior year.

• Net credit loss rate improved to 11.9%, down 80 bps year-over-year.

• Operating expense ratio improved to 13.2%, down 60 bps year-over-year.

• Book value per share increased to $36.43 at quarter end.

Outlook and guidance

• Full-year 2025 net income outlook is $42M–$45M; Q3 net income projected at $14.5M.

• Expecting Q3 ending net receivables to increase $55M–$60M sequentially; average net receivables up $75M.

• Q3 revenue yield expected at 32.8%, with a further seasonal decline in Q4.

• Net credit loss rate in Q3 expected at 10.3%, a 30 bps improvement year-over-year.

• G&A expenses for Q3 expected at $65M–$66M; interest expense to rise to $22M.