Regional Management (RM) investor relations material

Executive summary

• Q2 2026 net income was $8.2 million and diluted EPS was $0.85, down 19.6% and 17.5% year-over-year, while year-to-date net income and EPS rose 14% and 17.3% year-over-year.

• Total revenue for Q2 2026 was $168 million, up 6.7% year-over-year, driven by portfolio growth and large loans.

• Portfolio growth was 9.6% year-over-year, led by large and auto-secured loans, but below expectations due to competitive pressures and tightened underwriting.

• Strategic initiatives included scaling a bank partnership in Texas, launching a digital lending platform, and expanding into Florida, the 20th state.

• Digitally sourced originations represented 33.9% of new borrower volume in Q2 2026.

Financial highlights

• Net finance receivables as of June 30, 2026, were $2.1 billion, up 9.6% year-over-year.

• Large loan net finance receivables grew 17.4% year-over-year to $1.7 billion; auto-secured receivables rose 31.8% to $323.7 million.

• Total originations were $504 million, down 1.3% year-over-year.

• Operating expense ratio improved by 80 basis points year-over-year to 12.4%.

• Return on equity was 8.7% and return on assets was 1.6% for the quarter.

Outlook and guidance

• Guidance targets 6–9% net income growth, 10–13% EPS growth, and 5–7% ENR growth for 2026, reflecting underwriting discipline and a competitive environment.

• Loan demand is expected to increase in the second half of 2026, with reserve builds aligned to portfolio growth.

• Strategic initiatives, including the bank partnership and digital lending, are projected to deliver incremental net income benefits in the second half of 2026 and beyond.

• Sequentially stronger earnings expected in Q3 and Q4, with Q4 net income higher than Q3.

• Dividend and stock repurchase programs are expected to continue, subject to board discretion and market conditions.