Financial Data and Key Metrics Changes - In Q4 2025, the company generated net income of $12.9 million, or $1.30 diluted earnings per share, representing a 33% year-over-year increase [5] - For the full year 2025, net income reached $44.4 million, an 8% increase compared to 2024 [6] - Ending net receivables grew by $248 million, or 13% year-over-year, aligning with the growth guidance of at least 10% [6] - The annualized operating expense ratio was 12.4% in Q4, an improvement of 160 basis points year-over-year [9] Business Line Data and Key Metrics Changes - Total originations in Q4 2025 were $537 million, up 13% year-over-year, driven by strong performance from digital leads and the auto-secured product [17] - The auto-secured portfolio grew by 42% year-over-year, representing a larger portion of the overall portfolio [10] Market Data and Key Metrics Changes - The 30+ day delinquency rate improved by 20 basis points year-over-year to 7.5% [19] - The annualized net credit loss rate improved by 30 basis points year-over-year in Q4 2025 [19] Company Strategy and Development Direction - The company aims to continue portfolio growth, particularly in the auto-secured segment, and expand its physical footprint by opening new branches [10][11] - Investments in technology, data analytics, and credit risk management are prioritized to enhance operational efficiency and customer experience [11][12] - A bank partnership initiative is being developed to improve market entry speed and product uniformity [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the consumer's resilience and adaptability, anticipating continued loan demand despite seasonal impacts from tax refunds [17][51] - For 2026, the company expects net receivables growth of at least 10% and net income growth in the range of 20%-25% [14] Other Important Information - The company returned $36 million to shareholders through dividends and share repurchases in 2025 [9] - A dividend of $0.30 per common share was declared for Q1 2026 [23] Q&A Session Summary Question: Details on bank partnerships and potential for becoming a bank - Management discussed the benefits of bank partnerships for improving market speed and product uniformity, but indicated no immediate plans to become a bank [30][31] Question: Guidance on credit reserves and expenses - Management shifted focus to a full-year view for guidance, emphasizing long-term value creation rather than short-term precision [34] Question: Same store receivable growth versus store expansion - Management noted efficiency improvements in loan balances per branch and indicated that both same store growth and geographic expansion are key growth levers [42] Question: Graduation program for loans - Management confirmed a balanced approach to growth, continuing to offer smaller loans while also expanding larger loan offerings [45] Question: Macro outlook and loan demand - Management expressed optimism about the macroeconomic environment, citing healthy consumer conditions and anticipated strong loan demand post-tax season [49][51] Question: Customer acquisition costs and marketing trends - Management highlighted improved marketing efficiency and indicated potential reinvestment in marketing to support growth [54]