Financial Performance - CPS reported earnings of $4.7 million, or $0.19 per diluted share, for Q1 2025, compared to $4.6 million, or $0.19 per diluted share, in Q1 2024[3][4] - Revenues for Q1 2025 were $106.9 million, an increase of $15.2 million, or 16.6%, from $91.7 million in Q1 2024[4][9] - Interest income for Q1 2025 was $101.9 million, an increase of 11.4% from $84.3 million in Q1 2024[17] - The company’s net interest margin for Q1 2025 was 51.96%, compared to 49.78% in Q1 2024[17] Portfolio and Contracts - Total portfolio balance reached $3.615 billion as of March 31, 2025, the highest in company history, up from $3.021 billion a year earlier[5][17] - New contract purchases amounted to $451.2 million in Q1 2025, compared to $346.3 million in Q1 2024[5][17] - CPS achieved the highest amount in new loan originations for any first quarter in company history[7] Credit Quality - Annualized net charge-offs for Q1 2025 were 7.54% of the average portfolio, down from 7.84% in Q1 2024[6][17] - Delinquencies greater than 30 days were 12.35% of the total portfolio as of March 31, 2025, slightly down from 12.39% a year earlier[6][17] Future Plans - The company plans to hold a conference call on May 13, 2025, to discuss its Q1 2025 operating results[7][8]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Consumer Portfolio Services, Inc. for Q1 2025, including balance sheets, statements of operations, cash flows, and detailed notes [Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) For Q1 2025, net income slightly increased to **$4.7 million**, total assets grew to **$3.67 billion**, and cash from operations significantly increased, driven by higher finance receivables and a new securitization Condensed Consolidated Balance Sheet (Unaudited) | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,673,606** | **$3,493,868** | | Finance receivables measured at fair value | $3,449,106 | $3,313,767 | | **Total Liabilities** | **$3,375,179** | **$3,201,098** | | Securitization trust debt | $2,743,269 | $2,594,384 | | **Total Shareholders' Equity** | **$298,427** | **$292,770** | Condensed Consolidated Statement of Operations (Unaudited) | (In thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Revenues | $106,874 | $91,744 | | Total Expenses | $100,072 | $85,187 | | Interest Expense | $54,918 | $41,968 | | **Net Income** | **$4,694** | **$4,590** | | Diluted EPS | $0.19 | $0.19 | Condensed Consolidated Statement of Cash Flows (Unaudited) | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $73,868 | $52,705 | | Net cash used in investing activities | ($194,111) | ($108,632) | | Net cash provided by financing activities | $166,324 | $81,451 | | **Increase in cash and cash equivalents** | **$46,081** | **$25,524** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's sub-prime auto contract business, key accounting policies including fair value for receivables, debt structures, lease obligations, legal proceedings, and a significant **$419.95 million** securitization completed in May 2025 - The company specializes in purchasing and servicing retail automobile contracts for sub-prime customers, providing indirect financing through motor vehicle dealers[18](index=18&type=chunk) - Finance receivables acquired since January 1, 2018, are accounted for at fair value, where anticipated credit losses are incorporated into the level yield calculation, eliminating a separate periodic provision for credit losses for this portfolio[22](index=22&type=chunk)[24](index=24&type=chunk) Securitization Trust Debt Outstanding | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Outstanding Principal** | **$2,759,276** | **$2,609,855** | - On March 20, 2025, the company completed a **$65 million** securitization of residual interests from previously issued securitizations with a coupon of **11.00%**[58](index=58&type=chunk) - The company estimates the range of reasonably possible losses for all legal proceedings and contingencies does not exceed **$3.2 million** as of March 31, 2025[72](index=72&type=chunk) - Subsequent to the quarter end, on May 12, 2025, the company executed a securitization of **$419.95 million** of asset-backed notes secured by **$439.29 million** in automobile receivables[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis shows **16.6%** revenue growth driven by an expanding **$3.77 billion** portfolio, offset by a **17.5%** increase in operating expenses, resulting in flat net income, improved credit quality, and liquidity dependent on securitization markets with **$3.3 billion** in total debt [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q1 2025 revenues increased **16.6%** to **$106.9 million** due to portfolio growth, but total operating expenses rose **17.5%** to **$100.1 million**, primarily from a **$12.9 million** increase in interest expense, resulting in flat net income of **$4.7 million** - Revenues increased by **$15.2 million (16.6%)** YoY, mainly from higher interest income due to a larger average balance of finance receivables, including a **$3.5 million** fair value mark-up on the portfolio[107](index=107&type=chunk) - Total operating expenses increased by **$14.9 million (17.5%)** YoY, primarily due to a **$12.9 million** increase in interest expense[111](index=111&type=chunk)[114](index=114&type=chunk) Net Interest Income Change Analysis (Q1 2025 vs Q1 2024) | (In thousands) | Total Change | Change Due to Volume | Change Due to Rate | | :--- | :--- | :--- | :--- | | **Interest Income** | **$17,645** | **$16,752** | **$893** | | **Interest Expense** | **$12,950** | **$10,808** | **$2,142** | | **Net Interest Income** | **$4,695** | **$5,944** | **($1,249)** | - The net interest yield decreased to **4.7%** in Q1 2025 from **4.9%** in Q1 2024, as the average rate on interest-bearing liabilities rose faster than the yield on interest-earning assets[120](index=120&type=chunk)[121](index=121&type=chunk) [Credit Experience](index=33&type=section&id=Credit%20Experience) Credit quality improved with total delinquencies decreasing to **9.75%** and annualized net charge-offs slightly improving to **7.5%**, while payment extensions remain a key loss mitigation tool Delinquency as a Percentage of Gross Servicing Portfolio (by Amount) | Period | 31-90+ Days Delinquent | | :--- | :--- | | March 31, 2025 | 9.75% | | March 31, 2024 | 9.98% | | December 31, 2024 | 12.11% | - Annualized net charge-offs as a percentage of the average servicing portfolio was **7.5%** for the three months ended March 31, 2025, compared to **7.8%** for the same period in 2024[132](index=132&type=chunk) - The company's extension program is presented as effective, with **57.8%** of accounts granted extensions in 2019 either paid in full or active and performing as of March 31, 2025[137](index=137&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is primarily sourced from securitizations and warehouse facilities, with Q1 2025 operating cash flow at **$73.9 million**, total debt at **$3.3 billion**, and **$29.8 million** unrestricted cash with **$153.6 million** available borrowings - Primary sources of cash are securitization transactions, warehouse credit facilities, and customer payments, with primary uses being purchases of automobile contracts and operating expenses[143](index=143&type=chunk) - As of March 31, 2025, the company had **$29.8 million** in unrestricted cash and **$153.6 million** in aggregate available borrowings under its two warehouse credit facilities[149](index=149&type=chunk) - Total outstanding debt was approximately **$3.3 billion** at March 31, 2025, primarily composed of **$2.74 billion** in securitization trust debt and **$365.7 million** in warehouse lines of credit[152](index=152&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective in recording, processing, summarizing, and reporting material information on a timely basis[154](index=154&type=chunk) - There were no changes in internal controls over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[154](index=154&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine consumer litigation and a class action lawsuit, with management estimating the maximum reasonably possible loss for all legal contingencies not to exceed **$3.2 million** - The company is routinely involved in various legal proceedings resulting from its consumer finance activities[70](index=70&type=chunk)[156](index=156&type=chunk) - Management believes the range of reasonably possible losses for all legal proceedings as of March 31, 2025, does not exceed **$3.2 million**[72](index=72&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) Substantial indebtedness of approximately **$3.3 billion** as of March 31, 2025, poses a key risk, increasing vulnerability to economic downturns and limiting financial flexibility - The company has substantial indebtedness, totaling approximately **$3.3 billion** at March 31, 2025, consisting primarily of securitization trust debt and warehouse lines of credit[158](index=158&type=chunk) - This high level of debt could adversely affect financial condition by increasing vulnerability to economic downturns, requiring dedication of substantial cash flow to debt payments, and limiting flexibility[159](index=159&type=chunk)[160](index=160&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares of its common stock during the first quarter of 2025 - The company did not repurchase any shares of its common stock during the first quarter of 2025[161](index=161&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated any Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[162](index=162&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL financial data files - The exhibits filed with the report include CEO and CFO certifications (Exhibits 31.1, 31.2, 32) and Inline XBRL documents (Exhibit 101)[163](index=163&type=chunk)[165](index=165&type=chunk)

Core Insights - Consumer Portfolio Services, Inc. reported earnings of $4.7 million, or $0.19 per diluted share, for Q1 2025, showing a slight increase from $4.6 million in Q1 2024 [1][9] - Revenues for Q1 2025 reached $106.9 million, a 16.6% increase from $91.7 million in Q1 2024 [2][9] - The company achieved the highest amount in new loan originations for any first quarter in its history, with new contract purchases totaling $451.2 million [5][9] Financial Performance - Total operating expenses for Q1 2025 were $100.1 million, up from $85.2 million in the same period last year [2] - Pretax income for Q1 2025 was $6.8 million, compared to $6.6 million in Q1 2024 [2] - The annualized net charge-offs for Q1 2025 were 7.54% of the average portfolio, down from 7.84% in Q1 2024 [4][13] Portfolio and Receivables - As of March 31, 2025, total receivables amounted to $3.615 billion, an increase from $3.491 billion as of December 31, 2024, and $3.021 billion as of March 31, 2024 [3][12] - Delinquencies greater than 30 days were 12.35% of the total portfolio as of March 31, 2025, slightly down from 12.39% a year earlier [4][13] - The company purchased $451.2 million in new contracts during Q1 2025, compared to $346.3 million in Q1 2024 [3][12] Operational Highlights - The company focuses on providing indirect automobile financing to individuals with past credit problems or limited credit histories [7] - CPS funds contract purchases primarily through the securitization markets and services the contracts over their lives [7] - A conference call is scheduled for May 13, 2025, to discuss the Q1 2025 operating results [5][6]

Group 1 - The core announcement is about Consumer Portfolio Services, Inc. closing its second term securitization in 2025, marking its 55th senior subordinate securitization since 2011 and the 38th consecutive securitization to receive a triple "A" rating from at least two rating agencies on the senior class of notes [1][2] - The securitization involved the sale of $419.95 million in asset-backed notes secured by $439.29 million in automobile receivables, with the notes issued by CPS Auto Receivables Trust 2025-B [2] - The transaction consists of five classes of notes with varying interest rates and ratings, with a weighted average coupon of approximately 5.96% [3] Group 2 - Initial credit enhancement for the 2025-B transaction includes a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 4.40%, with agreements requiring accelerated principal payments to achieve specified overcollateralization levels [4] - Consumer Portfolio Services, Inc. specializes in providing indirect automobile financing to individuals with past credit issues or limited credit histories, primarily funding through securitization markets [6]

Group 1 - Consumer Portfolio Services, Inc. (CPS) will hold a conference call on May 13, 2025, at 1:00 p.m. ET to discuss its first quarter 2025 operating results [1] - Participants can pre-register for the conference call and will receive an email with dial-in options [2] - A replay of the conference call will be available for 12 months on the company's website [2] Group 2 - Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories [3] - The company purchases retail installment sales contracts primarily from franchised automobile dealerships, secured by late model used vehicles and, to a lesser extent, new vehicles [3] - CPS funds these contract purchases primarily through the securitization markets and services the contracts over their lives [3]

Core Insights - Consumer Portfolio Services, Inc. (CPS) has launched a next-generation AI-powered servicing and collections platform in partnership with Salient, aimed at enhancing operational efficiency in automobile financing [1][2]. Company Developments - CPS is experiencing significant growth, with a 52% year-over-year increase in new auto loan originations for Q4 2024, resulting in a record total portfolio balance of $3.6 billion [4]. - The integration of Salient's AI platform is expected to improve collections, repayment consistency, and overall credit performance, while allowing human agents to focus on more complex cases [2][3]. Technology Implementation - Salient's AI platform automates borrower outreach for key servicing functions, achieving over 60% reduction in handle times and improved customer response rates in previous implementations [2]. - The platform has processed over $1 billion in transactions and ensures compliance with key lending regulations, enhancing customer outreach effectiveness [3]. Strategic Focus - The deployment of AI-driven servicing solutions is part of CPS's strategy to scale its loan portfolio efficiently, reduce servicing costs, and enhance overall portfolio profitability [4].

Group 1 - Consumer Portfolio Services, Inc. announced the closing of a $65.0 million securitization of residual interests from previously issued securitizations [1] - A qualified institutional buyer purchased $65.0 million of asset-backed notes secured by an 80% interest in a CPS majority owned affiliate that owns the residual interests in five CPS securitizations issued from October 2023 through September 2024 [2] - The MOA interest includes 80% of the amounts on deposit in the underlying spread accounts and 80% of the over-collateralization of each related securitization [3] Group 2 - The transaction was a private offering of securities, not registered under the Securities Act of 1933 or any state securities law [4] - Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories [5]

Debt and Financing - As of December 31, 2024, the company had approximately $3,131.0 million in outstanding debt, including $2,594.4 million in securitization trust debt and $410.9 million in warehouse lines of credit [123]. - The company's current short-term funding capacity is $535 million, consisting of two credit facilities [121]. - The ability to maintain warehouse or securitization financing on acceptable terms is crucial for the company's operations and could significantly impact its financial health [122]. - Risk retention rules require the company to retain at least 5% of the credit risk for securitizations executed after December 2016, potentially limiting liquidity and increasing capital requirements [154]. Economic and Market Risks - Economic downturns can lead to increased delinquencies, defaults, and losses, adversely impacting the company's financial position and liquidity [131]. - Economic downturns, particularly in regions like California, Texas, Ohio, Illinois, and Florida, could lead to increased delinquencies and adversely affect the company's operations [173]. - Natural disasters in key states could result in job losses or damage to vehicles securing contracts, leading to reduced collections and revenue [176]. - An increase in interest rates could decrease cash flows from excess spread, adversely affecting earnings and cash flows [179]. Performance and Credit Risks - The company relies on cash flows from residual interests in securitization programs and warehouse credit facilities, which are affected by the performance of the underlying automobile contracts [129]. - The performance of automobile contracts significantly impacts the company's results of operations, financial condition, cash flows, and liquidity, with defaults potentially leading to material adverse effects [142]. - The company specializes in sub-prime automobile contracts, which carry higher risks of non-performance and delinquencies compared to contracts with more creditworthy customers [141]. - An allowance for credit losses is maintained for receivables originated prior to January 2018, reflecting estimates of probable credit losses; inadequate allowances could adversely affect results [143]. - Receivables originated since January 2018 are recorded at fair value, and if actual credit losses exceed estimates, it may necessitate fair value adjustments or reduced interest income [144]. - The company cannot borrow against defaulted automobile contracts under warehouse credit facilities, which may reduce cash flows available [145]. - A downward adjustment in the recorded value of receivables could reduce the company's income and book value if actual credit losses exceed estimates [171]. - The fair value of receivables may require adjustment if market conditions indicate a significantly lower value than recorded, impacting income and book value [172]. Operational Risks - Loss of servicing rights on the portfolio of automobile contracts could materially impair results of operations and financial condition [146]. - Key personnel retention is critical; loss of key employees could adversely affect results of operations and financial condition [147]. - The company faces litigation risks that could result in significant financial penalties and adversely affect operations and cash flows [156]. - Non-compliance with regulations could lead to penalties, litigation losses, and damage to reputation, adversely affecting financial condition and stock price [150]. Stock and Dividend Policy - The company's common stock is thinly traded, leading to limited selling opportunities and potential price volatility; as of December 31, 2024, directors and executive officers owned approximately 61% of total shares outstanding [180]. - The company has never declared or paid cash dividends on its common stock and intends to retain future earnings without paying dividends in the foreseeable future [181]. Interest Rate Impact - Increased interest expenses were experienced in 2023 due to multiple interest rate hikes by the Federal Reserve, with uncertainty regarding future rate changes [138]. - The company may need to reduce interest income recognized on receivables if actual results materially deviate from estimates, particularly regarding future credit losses and prepayment rates [170]. - Fair value accounting for receivables acquired since January 1, 2018 introduces risks related to the valuation and potential adjustments impacting financial results [169].

Financial Data and Key Metrics Changes - Revenues for Q4 2024 were $105.3 million, a 5% increase from $100.6 million in Q3 2024 and a 14% increase from $92 million in Q4 2023 [8] - For the year, total revenues reached $393.5 million, a 12% increase from $352 million in 2023 [8] - Net income for Q4 2024 was $5.1 million, down from $7.2 million in Q4 2023, while annual net income was $19.2 million compared to $45.3 million in 2023 [13][14] - Total debt increased to $3.131 billion, a 22% rise from $2.566 billion at the end of 2023 [15] - Shareholders' equity reached $293 million, a 7% increase from $275 million at the end of 2023 [16] Business Line Data and Key Metrics Changes - Loan originations for Q4 2024 were $458 million, a 52% increase from $302 million in Q4 2023, and for the year, originations totaled $1.68 billion, a 24% increase from $1.36 billion in 2023 [9][19] - The fair value portfolio increased to $3.5 billion, yielding 11.3% net of losses [10] - Core operating expenses as a percentage of the managed portfolio decreased to 5.4% in Q4 2024 from 5.9% in Q4 2023 [17] Market Data and Key Metrics Changes - The average FICO score for the portfolio was 571, with an average amount financed of $22,300 per deal [28] - The annual net charge-offs for Q4 2024 were 8.02% of the average portfolio, compared to 7.74% in Q4 2023 [29] - Delinquency greater than 30 days was 14.85% of the total portfolio, slightly up from 14.55% at the end of 2023 [30] Company Strategy and Development Direction - The company is focusing on cautious growth while improving credit performance and preparing for aggressive growth in 2025 [4][6] - Plans include hiring additional sales representatives and expanding into new territories to increase market share [22] - The company aims to tighten its credit model while still pursuing growth opportunities in better-performing geographic areas [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic environment, citing a favorable unemployment rate projected to remain low [38][47] - The company anticipates that the performance of 2024 vintages will improve as they flow through the portfolio, with expectations to move past the weaker 2022 vintages by the end of 2025 [43][46] - Management highlighted the importance of technology advancements, including AI-driven fraud detection, to enhance operational efficiency and credit performance [39][41] Other Important Information - The company reported a significant reduction in loan provision adjustments from $22.3 million in 2023 to $5.3 million in 2024 [11] - The company has implemented measures to improve funding times, reducing them to less than two days, which enhances dealer relationships [27] Q&A Session Summary Question: What are the expectations for growth in 2025? - Management indicated that they are gearing up for a strong growth year in 2025, with a focus on improving credit performance and expanding market share [43][46] Question: How is the company addressing credit performance issues? - Management noted that they are tightening their credit model while still pursuing growth, expecting improvements as newer vintages perform better [32][43] Question: What technological advancements are being implemented? - The company is utilizing AI-driven fraud scores to enhance operational efficiency and plans to implement a new AI voice bot to improve collections [39][41]

Financial Data and Key Metrics Changes - Revenues for Q4 2024 were $105.3 million, a 5% increase from $100.6 million in Q3 2024 and a 14% increase from $92 million in Q4 2023 [8] - For the year, total revenues reached $393.5 million, a 12% increase from $352 million in 2023 [8] - Net income for Q4 2024 was $5.1 million, down from $7.2 million in Q4 2023, while annual net income was $19.2 million compared to $45.3 million in 2023 [13][14] - Pretax earnings for Q4 2024 were $7.4 million, down 24% from $9.8 million in Q4 2023, with annual pretax earnings at $27.4 million compared to $61.1 million in 2023 [13][14] - Total debt increased to $3.131 billion, a 22% rise from $2.566 billion at the end of 2023 [15] Business Line Data and Key Metrics Changes - Loan originations for Q4 2024 were $458 million, a 52% increase from $302 million in Q4 2023, with annual originations at $1.68 billion, a 24% increase from $1.36 billion in 2023 [9][19] - The fair value portfolio reached $3.5 billion, yielding 11.3% net of losses [10] - Core operating expenses as a percentage of the managed portfolio decreased to 5.4% in Q4 2024 from 5.9% in Q4 2023 [17] Market Data and Key Metrics Changes - The average FICO score for the portfolio was 571, with an average amount financed of $22,300 per deal [28] - The annual net charge-offs for Q4 2024 were 8.02% of the average portfolio, compared to 7.74% in Q4 2023 [29] - Delinquency greater than 30 days was 14.85% of the total portfolio, slightly up from 14.55% at the end of 2023 [30] Company Strategy and Development Direction - The company is focusing on cautious growth while improving credit performance and preparing for aggressive growth in 2025 [4][6] - Plans include hiring additional sales representatives and expanding into new territories to increase market share [22] - The company aims to tighten its credit model while still pursuing growth opportunities [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic environment, citing a favorable unemployment rate projected to remain low [38][47] - The company anticipates that the performance of 2024 vintages will improve as they flow through the portfolio, with expectations to phase out weaker 2022 vintages by the end of 2025 [43][46] - Management highlighted the importance of technology advancements, including AI-driven fraud detection, to enhance operational efficiency and reduce costs [39][41] Other Important Information - The company reported a significant reduction in loan provision adjustments from $22.3 million in 2023 to $5.3 million in 2024 [11] - The company has successfully reduced funding times and increased same-day funding rates, enhancing dealer relationships [27] Q&A Session Summary Question: What are the expectations for growth in 2025? - Management indicated that they are gearing up for growth in 2025, having already hired new sales reps and opened new territories in anticipation of increased market share [22][46] Question: How is the company managing credit risk? - The company is tightening its credit model while still focusing on growth, with expectations that the performance of newer vintages will improve [32][43] Question: What are the key drivers of revenue growth? - Revenue growth is primarily driven by strong loan originations and an increase in the fair value portfolio [9][10]