Consumer Portfolio Services Inc
NASDAQ:CPSS
Consumer Portfolio Services Inc
Consumer Portfolio Services, Inc. operates as an independent finance company. The company is headquartered in Irvine, California and currently employs 739 full-time employees. The Company’s business is to provide purchase and service retail automobile contracts originated primarily by franchised automobile dealers and, to a lesser extent, by select independent dealers in the United States in the sale of new and used automobiles, light trucks, and passenger vans. Through its automobile contract purchases, it provides indirect financing to the customers of dealers. The company serves as an alternative source of financing for dealers, facilitating sales to customers from traditional sources, such as commercial banks, credit unions, and the finance companies affiliated with automobile manufacturers. The company also originates vehicle purchase money loans by lending directly to consumers. The company offers eight different financing programs, and prices each program according to relative credit risk. Its financing programs include First Time Buyer, Mercury / Delta, Standard, Alpha, Alpha Plus, Super Alpha and Preferred.
Consumer Portfolio Services, Inc. operates as an independent finance company. The company is headquartered in Irvine, California and currently employs 739 full-time employees. The Company’s business is to provide purchase and service retail automobile contracts originated primarily by franchised automobile dealers and, to a lesser extent, by select independent dealers in the United States in the sale of new and used automobiles, light trucks, and passenger vans. Through its automobile contract purchases, it provides indirect financing to the customers of dealers. The company serves as an alternative source of financing for dealers, facilitating sales to customers from traditional sources, such as commercial banks, credit unions, and the finance companies affiliated with automobile manufacturers. The company also originates vehicle purchase money loans by lending directly to consumers. The company offers eight different financing programs, and prices each program according to relative credit risk. Its financing programs include First Time Buyer, Mercury / Delta, Standard, Alpha, Alpha Plus, Super Alpha and Preferred.
Modest Growth: Growth was positive but less than hoped, with originations up just 4% year-over-year, making 2025 likely the company's second-best year ever.
Portfolio Quality: Credit performance is improving, with newer 2024 and 2025 loans performing significantly better than 2022 and 2023 vintages, which are now below 30% of the portfolio.
Revenue & Profits: Revenue grew 8% year-over-year to $108.4 million in Q3, with net income up 2% to $4.9 million and diluted EPS flat at $0.20.
Efficiency Gains: Core operating expenses declined 4% year-over-year and are now 4.6% of the managed portfolio, down from 5.4%, reflecting improved efficiency.
Securitization Success: Despite industry concerns after the Tricolor collapse, CPS secured new credit lines and completed a securitization, though at slightly higher cost.
Macro & Outlook: Subprime consumers face headwinds from high interest rates, but lower unemployment and falling rates should support results. Management expects a strong setup for next year if conditions hold.
