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Core Viewpoint - The conference call is focused on the third quarter operating results for Consumer Portfolio Services in 2025, indicating a review of financial performance and strategic outlook for the company [1]. Group 1 - The call is being recorded and is intended for discussing the operating results of Consumer Portfolio Services [1]. - Management has indicated that the call may contain forward-looking statements, which are subject to risks that could lead to actual results differing from projections [2]. - The company has no obligation to update any forward-looking statements publicly, regardless of new information or events [3].

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $108.4 million, an 8% increase from $100.6 million in Q3 2024 [7] - For the nine months ending September 2025, revenues reached $325.1 million, a 13% increase over $288 million in the same period last year [7] - Expenses for Q3 2025 were $101.4 million, also up 8% from $93.7 million in Q3 2024 [8] - Net income for Q3 2025 was $4.9 million, a 2% increase from $4.8 million in Q3 2024 [9] - Diluted earnings per share remained flat at $0.20 for Q3 2025, compared to the same period last year [9] Business Line Data and Key Metrics Changes - The fair value portfolio increased to $3.6 billion, yielding 11.4% net of losses [7] - Origination volumes for Q3 2025 were $391.1 million, with a total of $1.275 billion for the nine months, a 4% increase year-over-year [13] - The percentage of the portfolio from troubled 2022 and 2023 vintages is now below 30% [19] Market Data and Key Metrics Changes - The unemployment rate stood at 4.3% as of August 2025, with expectations to rise to 4.5% in 2026 [22] - The company noted increased competition from banks and credit unions, which may pressure growth [25] Company Strategy and Development Direction - The company is focusing on organic growth by adding new dealers and improving capture rates, which have increased from the high fours to over 6% [15] - A specific focus on large dealer groups has led to their originations comprising 31% of total originations, up from 17% two years ago [16] - The company aims to maintain APRs while improving margins and cutting expenses [27] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for 2025, anticipating it to be the second-best year in the company's history despite modest growth [13][14] - The company is not overly concerned about a slight increase in unemployment, viewing it as a manageable risk [28] - Management highlighted that the performance of newer vintages (2024 and 2025) is showing improvement, indicating a positive trend in credit performance [19][20] Other Important Information - The company successfully completed a securitization despite market challenges, indicating stability in the market [6][25] - The total debt increased by 11% to $3.4 billion, while the fair value portfolio grew by 16%, showing improved balance sheet management [10][11] Q&A Session Summary - No specific questions or answers were provided in the transcript, as the call concluded without a Q&A segment [31]

Financial Performance - Net income for Q3 2025 was $4.9 million, or $0.20 per diluted share, compared to $4.8 million, or $0.20 per diluted share, in Q3 2024[1] - Revenues for Q3 2025 increased to $108.4 million, up $7.8 million, or 7.8%, from $100.6 million in Q3 2024[2] - Total operating expenses for Q3 2025 were $101.4 million, compared to $93.7 million in Q3 2024[2] - For the nine months ended September 30, 2025, total revenues were $325.1 million, an increase of approximately $36.9 million, or 12.8%, from $288.2 million in the same period of 2024[3] - The company reported pretax income of $7.0 million for Q3 2025, compared to $6.9 million in Q3 2024[2] Contract and Receivables - New contract purchases for the nine months ended September 30, 2025, were $1.275 billion, compared to $1.224 billion during the same period in 2024[4] - The company's receivables totaled $3.760 billion as of September 30, 2025, up from $3.330 billion as of September 30, 2024[4] Credit Quality - Annualized net charge-offs for Q3 2025 were 8.01% of the average portfolio, compared to 7.32% for Q3 2024[5] - Delinquencies greater than 30 days were 13.96% of the total portfolio as of September 30, 2025, down from 14.04% as of September 30, 2024[5] Management Commentary - The CEO expressed satisfaction with the results, highlighting strong new loan origination volumes driving revenue growth[6]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission file number: 001-11416 CONSUMER PORTFOLIO SERVICES, INC. (Exact name of registrant as specified in its charter) California 33-04 ...

Revenues of $108.4 million compared to $100.6 million in the prior year periodPretax income of $7.0 million compared to $6.9 million in the prior year periodNew contract purchases of $391.1 million in the quarter LAS VEGAS, NV, Nov. 10, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of $4.9 million, or $0.20 per diluted share, for its third quarter ended September 30, 2025. This represents an increase compared to net income of $4.8 ...

LAS VEGAS, Nevada, Nov. 07, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced that it will hold a conference call on Tuesday, November 11, 2025 at 1:00 p.m. ET to discuss its third quarter 2025 operating results. Those wishing to participate can pre-register for the conference call at the following link https://register-conf.media-server.com/register/BIe8f56c2169754318a431cab167afe726. Registered participants will receive an email containing c ...

Core Insights - Consumer Portfolio Services, Inc. (CPS) successfully closed its fourth term securitization in 2025, marking its 57th senior subordinate securitization since 2011 and the 40th consecutive securitization to receive a triple "A" rating from at least two rating agencies on the senior class of notes [1][2]. Transaction Details - The securitization involved the sale of $384.6 million in asset-backed notes, secured by $392.46 million in automobile receivables originated by CPS [2]. - The notes were issued by CPS Auto Receivables Trust 2025-D and consist of five classes, with ratings provided by Standard & Poor's and DBRS Morningstar based on transaction structure and historical performance [2]. Note Class Breakdown - The transaction includes the following note classes: - Class A: $170.910 million, 4.46% interest rate, 0.66 years average life, AAA rating [3] - Class B: $52.200 million, 4.48% interest rate, 1.72 years average life, AA rating [3] - Class C: $64.950 million, 4.85% interest rate, 2.40 years average life, A rating [3] - Class D: $43.170 million, 5.45% interest rate, 3.23 years average life, BBB rating [3] - Class E: $53.370 million, 7.69% interest rate, 4.04 years average life, NR rating [3] - The weighted average coupon on the notes is approximately 5.72% [3]. Credit Enhancement - The 2025-D transaction features initial credit enhancement, including a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 2.00% [4]. - The agreements require accelerated principal payments to achieve overcollateralization of the lesser of 7.00% of the original receivable pool balance or 21.00% of the outstanding pool balance [4]. Company Overview - Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit issues or limited credit histories [6]. - The company purchases retail installment sales contracts primarily from franchised automobile dealerships, funding these purchases mainly through securitization markets [6].

Core Points - Consumer Portfolio Services, Inc. (CPS) announced the closing of a new two-year revolving credit agreement on October 17, 2025 [1] - The loans under this credit agreement will be secured by automobile receivables that CPS currently holds or will acquire from dealers in the future [2] - The credit facility includes a subordinate lender, which will provide a higher effective advance rate for the facility [2] - CPS can borrow on a revolving basis until October 2027, after which it has the option to either repay the outstanding loans in full or allow them to amortize over an 18-month period [2] - CPS is an independent specialty finance company that provides indirect automobile financing to individuals with past credit issues or limited credit histories [3] - The company primarily purchases retail installment sales contracts from franchised automobile dealerships, secured by late model used vehicles and, to a lesser extent, new vehicles [3] - CPS funds these contract purchases through the securitization markets and services the contracts throughout their duration [3]

Summary of Consumer Portfolio Services (CPSS) Conference Call Company Overview - **Company Name**: Consumer Portfolio Services (CPSS) - **Ticker Symbol**: CPSS - **Industry**: Specialty finance, specifically subprime auto financing - **Headquarters**: Las Vegas - **Years in Business**: 34 years, making it the longest-running subprime auto finance company in the industry - **Employee Count**: Approximately 1,000 - **Dealer Relationships**: Contracts with 13,000 auto dealers, with 85% being franchise dealers and 15% independent dealers [3][4] Financial Performance - **Profitability**: 55 consecutive profitable quarters since 2014 [4][5] - **Assets Under Management (AUM)**: $3.9 billion, an all-time record [4][5] - **Portfolio Growth**: Year-over-year growth rate of 17% [5] - **Asset-Backed Securities (ABS)**: Completed 105 ABS deals over 34 years, averaging four deals per year [5][6] - **Revenue Growth**: Revenue increased from $266 million in 2021 to $363 million in 2022, with projections to exceed $400 million in 2023 [21][22] - **Net Yield**: Currently tracking a net yield of 1.2%, with expectations to exceed 3% by the end of the year [24][25] Market Dynamics - **Total Addressable Market**: $1.6 trillion in auto finance, with subprime representing 16% of that market [14] - **Application Volume**: Receiving 11,000 applications per day with a 45% approval rate [15] - **Competitive Landscape**: Limited competition with only 6-7 national players, creating a favorable environment for CPS [6][14] Technology and Innovation - **Fintech Approach**: Utilizes advanced technology and AI for credit evaluation and loan origination [9][10] - **AI Integration**: AI is used for customer behavior analysis, underwriting, and collections, improving efficiency and accuracy [11][12][13] - **Credit Algorithm**: Regularly updated every 18 months, leveraging 34 years of customer data [9][10] Risk Management - **Credit Tightening**: Adjusts credit criteria based on macroeconomic conditions, evidenced by a reduction in originations from $1.8 billion to $1.3 billion in response to market pressures [32][33] - **Net Losses**: Historical cumulative net losses around 15%, with recent vintages reaching 21%, currently targeting a 17% net loss [42][43] Strategic Focus - **Dealer Relationships**: Emphasis on large dealer groups, increasing originations from 16% to 29% from these groups [40] - **Operational Efficiency**: Reduced operating expenses from 6% to below 5%, contributing to improved net yield [23] Future Outlook - **Growth Projections**: Anticipating a 10% growth rate for the current year, with a target of $1.75 billion in originations [21][30] - **Interest Rate Impact**: High interest expenses are currently affecting profitability, with hopes for a reduction in borrowing costs to improve margins [22][30] Additional Insights - **Hidden Assets**: CPS holds approximately $400 million in cash from residuals of ABS transactions, providing liquidity and value to shareholders [28][29] - **Market Position**: CPS is well-capitalized with high shareholder equity and a strong portfolio, positioning itself favorably for future growth [30]