Consumer Portfolio Services (CPSS) Presents at Planet MicroCap Showcase: VEGAS 2025 summary

Company overview and market position

• Operates as a subprime auto lender with 34 years of experience and a $3.8 billion managed portfolio.

• Maintains contracts with over 13,000 dealers nationwide, focusing on franchise dealerships for better credit performance.

• Faces limited national competition due to high barriers to entry and capital requirements.

• Management team averages 25 years of tenure, contributing to stability and industry expertise.

• No marketing budget; relies on dealer relationships for customer acquisition.

Financial performance and growth strategy

• Achieved record originations of $1.85 billion in 2022, $1.35 billion in 2023, and $1.7 billion last year, targeting $1.95 billion this year.

• Revenue grew from $305 million in 2022 to $363 million last year.

• Projects 20%-25% annual growth in originations, focusing on financial sustainability.

• Maintains a 48% approval rate, targeting the top third of subprime applicants.

• Holds a strong balance sheet with $450 million in ABS residuals expected over the next 2-3 years.

Technology and risk management

• Utilizes machine learning and AI for credit decisioning, dealer ranking, and collections, updating algorithms every 18 months.

• Automated approval process delivers decisions within three seconds.

• AI-driven collections model has improved credit performance and reduced defaults.

• Conservative credit criteria with average LTV at 119% and FICO at 574.

• Monitors macroeconomic risks, especially unemployment and recession, with subprime customers showing resilience.