Regional Management (RM) Q4 2025 earnings summary

Executive summary

• Net income for Q4 2025 was $12.9M, up 33% year-over-year, and full-year net income reached $44.4M, up over 8% year-over-year, both exceeding guidance.

• Record originations of $2.0B for the year (up 19% YoY) and $537M in Q4 (up 13% YoY), with net receivables growing 13% to $2.1B.

• Opened 17 new branches in 2025, contributing to expansion, revenue growth, and portfolio growth.

• Focused on responsible portfolio growth, credit performance, operating efficiency, and strategic investments in technology and analytics.

• Auto-secured portfolio grew 42% YoY to $294.3M, now 13.7% of the portfolio, with continued expansion into new markets.

Financial highlights

• Q4 net income: $12.9M; diluted EPS: $1.30, both up over 30% YoY and exceeded guidance.

• Full-year net income: $44.4M, up over 8% YoY; diluted EPS: $4.45, up over 7% YoY.

• Q4 revenue: $170M (up 10% YoY); full-year revenue: $2.0B in originations (up 19% YoY).

• Operating expense ratio improved to 12.4% in Q4 (down 160 bps YoY), a historic best.

• Return on equity for Q4 was 13.8%, up 270 bps YoY; return on assets was 2.5%, up 40 bps.

Outlook and guidance

• 2026 guidance: Ending Net Receivables growth of at least 10% and net income growth of 20%-25%.

• Q1 2026 expected to show seasonal contraction in net receivables due to higher tax refunds, with demand rebounding post-tax season.

• Long-term net credit loss rate target under 10%, with continuous improvement expected.

• Management confident in continued growth, supported by platform strength, auto-secured expansion, and technology investments.

• Substantial unused capacity of $511M and available liquidity of $149M at year-end 2025 to support future growth.