
Financial Highlights CPS reported a 14.5% revenue increase to $109.8 million in Q2 2025, with net income slightly up to $4.8 million, and similar growth for the first half Q2 2025 vs. Q2 2024 Financial Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $109.8 million | $95.9 million | +14.5% | | Pretax Income | $7.0 million | $6.7 million | +4.5% | | Net Income | $4.8 million | $4.7 million | +2.1% | | Diluted EPS | $0.20 | $0.19 | +5.3% | Six Months Ended June 30, 2025 vs. 2024 Financial Performance | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $216.6 million | $187.6 million | +15.5% | | Pretax Income | $13.8 million | $13.2 million | +4.5% | | Net Income | $9.5 million | $9.3 million | +2.2% | Operational Highlights & Credit Quality The receivables portfolio grew to $3.708 billion, with stable new contract purchases, while net charge-offs slightly increased and delinquencies improved - Total receivables grew to $3.708 billion as of June 30, 2025, a significant increase from $3.173 billion as of June 30, 20246 - New contract purchases in Q2 2025 were $433.0 million, remaining relatively flat compared to $431.9 million in Q2 20246 Credit Quality Metrics (as of June 30) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Annualized Net Charge-offs | 7.45% | 7.26% | | Delinquencies > 30 days (incl. repo) | 13.14% | 13.29% | Management Commentary CEO Charles E. Bradley highlighted improved earnings and operational efficiencies, emphasizing focus on new credit quality and existing loan performance as the portfolio grows - The CEO, Charles E. Bradley, identified "Improvements in earnings and operating efficiencies" as the key highlights of the second quarter8 - The company's strategic focus is on maintaining the quality of originated credit and ensuring the strong performance of existing loans as the portfolio grows8 Financial Statements Analysis Financial statements show revenue growth from higher interest income, offset by rising interest expenses, with balance sheet expansion driven by finance receivables and securitization trust debt, impacting net interest margin Condensed Consolidated Statements of Operations Q2 2025 saw interest income rise 19.2% to $105.4 million, but faster 25.7% growth in interest expense to $58.7 million compressed margins, leading to a modest pre-tax income increase Q2 Statement of Operations (in thousands) | Line Item | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Interest Income | $105,362 | $88,367 | +19.2% | | Interest Expense | $58,704 | $46,710 | +25.7% | | Employee Costs | $24,362 | $23,725 | +2.7% | | Income Before Taxes | $6,952 | $6,672 | +4.2% | | Net Income | $4,797 | $4,672 | +2.7% | H1 Statement of Operations (in thousands) | Line Item | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest Income | $207,295 | $172,655 | +20.1% | | Interest Expense | $113,622 | $88,678 | +28.1% | | Income Before Taxes | $13,754 | $13,229 | +4.0% | | Net Income | $9,491 | $9,262 | +2.5% | Condensed Consolidated Balance Sheets Total assets reached $3.76 billion as of June 30, 2025, driven by a $245 million increase in finance receivables, funded by a $219 million rise in securitization trust debt, with shareholders' equity exceeding $300 million Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Finance receivables, fair value | $3,559,029 | $3,313,767 | +$245,262 | | Total Assets | $3,763,790 | $3,493,868 | +$269,922 | | Securitization trust debt | $2,813,234 | $2,594,384 | +$218,850 | | Shareholders' equity | $303,101 | $292,770 | +$10,331 | - Shareholder's equity achieved a record high, surpassing $300 million for the first time918 Operating and Performance Data The total portfolio balance grew 16.9% to $3.71 billion, while annualized net charge-offs increased to 7.45%, and net interest margin compressed to 5.5% due to higher interest expenses Key Performance Indicators (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total portfolio balance | $3,708.38 M | $3,173.28 M | | Annualized Net Charge-offs | 7.45% | 7.26% | | Total Delinquencies & Repo. | 13.14% | 13.29% | | Net interest margin (% of avg. portfolio) | 5.5% | 6.3% | - The decline in net interest margin from 6.3% to 5.5% YoY was primarily driven by interest expense rising as a percentage of the average portfolio from -6.0% to -6.4%19 Corporate Information CPS will hold a conference call on August 12, 2025, to discuss Q2 results, operating as a specialty finance provider offering indirect auto financing to individuals with limited credit histories - A conference call to discuss Q2 2025 results will be held on August 12, 2025, at 1:00 p.m. ET10 - CPS's business model involves providing indirect automobile financing to individuals with past credit problems or limited credit histories by purchasing contracts from franchised dealerships12