Consumer Portfolio Services (CPSS) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 21.7% to $131.9M and net income increased 43.3% to $7.0M; portfolio growth and more than doubled originations supported earnings.

• Portfolio balance reached a record $4.711B, up 25.3% YoY, while delinquency, charge-off and recovery metrics improved.

Financial highlights

• 9M revenue rose 12.5% to $365.6M; net income increased 30.8% to $18.7M and pretax income rose 30.3% to $27.1M.

• Q3 diluted EPS increased 50% to $0.30; 9M diluted EPS rose to $0.80 from $0.59, aided by higher net income and a lower diluted share count.

• Q3 contract purchases reached $815.3M, up 108.5% YoY; 9M purchases rose 65.2% to $2.106B.

• Q3 operating expenses increased 20.2% to $121.8M; 9M expenses rose 11.2% to $338.5M, largely reflecting higher interest expense.

• 9M interest income rose 13.2% to $355.9M as average portfolio balance increased 14.7%; portfolio yield eased to 11.3% from 11.4%.

Outlook and guidance

• Management plans continued strategic growth, expanding dealer coverage and relationships while remaining selective in contract purchases; it does not plan to double the business.

• Q4 is expected to be lighter; over $1B of warehouse capacity supports further growth.

• Liquidity planning focuses on matching contract purchases to available capital and reducing operating costs as appropriate; funding also depends on securitizations and cash releases from trusts.