Consumer Portfolio Services — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 reached $131.9 million, a 21.7% increase year-over-year (YoY) from $108.4 million in Q3 2025; revenue for the nine months ended September 30, 2026, was $365.6 million, up 12.5% YoY from $325.1 million.
• Net income for Q3 2026 increased 43.3% YoY to $7.0 million from $4.9 million in Q3 2025; net income for the nine-month period rose 30.8% YoY to $18.7 million from $14.3 million.
• Diluted earnings per share (EPS) for Q3 2026 increased 50.0% YoY to $0.30 from $0.20; diluted EPS for the nine-month period increased 35.6% YoY to $0.80 from $0.59.
• Pretax income for Q3 2026 increased 44.3% YoY to $10.1 million from $7.0 million; pretax income for the nine-month period increased 30.3% YoY to $27.1 million from $20.8 million.
• Total operating expenses for Q3 2026 were $121.8 million compared to $101.4 million in Q3 2025; for the nine months, expenses were $338.5 million compared to $304.3 million.
• Interest expense comprised approximately 58% of total operating expenses for both the third quarter and first nine months of 2026 and 2025.
• Net interest margin remained stable at 5.1% for Q3 2026 compared to 5.1% in Q3 2025, and 5.1% for the nine months of 2026 compared to 5.2% in the prior year period.
• Finance receivables measured at fair value increased to $4.62 billion as of September 30, 2026, from $3.66 billion as of December 31, 2025.
• Warehouse lines of credit increased to $735.8 million as of September 30, 2026, from $324.9 million as of December 31, 2025.

Guidance and Future Outlook:

• The press release contains forward-looking statements regarding expected loan origination volume, dealership network expansion, market share growth, operating leverage, and future credit performance.
• Management anticipates continued growth driven by expanding the dealership base and enhancing underwriting and funding efficiency.
• Actual results may differ due to factors including increased delinquencies, repossessions, losses, incorrect prepayment speed assumptions, competition, funding availability, consumer bankruptcy filings, regulatory changes, used vehicle price declines, and economic conditions.

Business Segments and Product Lines:

• New loan origination volume (contract purchases) for Q3 2026 increased 108.5% YoY to $815.3 million from $391.1 million; for the nine months, volume increased 65.2% to $2.106 billion from $1.275 billion.
• Total owned portfolio balance reached a record $4.711 billion as of Q3 2026, a 25.3% increase from $3.760 billion in Q3 2025, marking 21 consecutive quarters of growth.
• Contracts securitized in Q3 2026 totaled $734.5 million, a 69.4% increase YoY; for the nine months, securitized contracts totaled $1.613 billion, up 20.8% YoY.
• The Company completed its 110th securitization (3rd of 2026), which was the largest deal in its 35-year history.
• The Company funds contract purchases primarily through securitization markets and warehouse lines of credit.

Market and Competitive Landscape:

• The Company is expanding its dealership network through strategic sales force additions and deepening relationships with existing dealers to capture market share.
• Credit performance metrics improved, with total delinquencies (including repossession inventory) decreasing to 12.29% in Q3 2026 from 13.96% in Q3 2025.
• Annualized net charge-offs as a percent of average portfolio decreased to 7.26% in Q3 2026 from 8.01% in Q3 2025.
• Net recovery rates on repossessed collateral sold at wholesale auction increased to 32.0% in Q3 2026 from 28.7% in Q3 2025.

Risks and Challenges:

• Risks include increased delinquencies, repossessions, and losses; incorrect prepayment speed or discount rate assumptions; and competition or loss of dealer relationships.
• Potential challenges involve reduced availability or increased cost of warehouse and securitization funding due to interest rate or capital market conditions.
• External risks include increases in consumer bankruptcy filings, changes in government regulations affecting consumer credit, declines in used vehicle prices, and adverse economic conditions in principal markets.

Management Commentary and Tone:

• CEO Charles E. Bradley stated that accelerating origination volume demonstrates strong operating leverage, with net income increases outpacing revenue growth.
• Management highlighted the broadening of the dealership network and deepening of existing relationships as key drivers for accelerating volume while maintaining selectivity on contract purchases.
• The tone reflects confidence in the business model's ability to scale efficiently as the portfolio grows.

Other Key Points:

• The Company renewed one of its warehouse lines of credit in Q3 2026, increasing capacity to $508 million from $335 million, an expansion of approximately 52%.
• The 3rd asset-backed securitization (ABS) of 2026 closed in Q3, primarily including loan originations from the second quarter.
• A conference call and live audio webcast regarding the results were scheduled for October 26, 2026, at 1:00 p.m. Eastern Time.
• The Company provides indirect automobile financing to individuals with past credit problems or limited credit histories, purchasing contracts primarily from franchised dealerships secured by late-model used vehicles.