Consumer Portfolio Services, Inc. (CPSS) Market Cap
Consumer Portfolio Services, Inc. has a market capitalization of $190.9M.
Financials based on reported quarter end 2025-12-31
Price: $8.65
▲ 0.09 (1.05%)
Market Cap: 190.91M
NASDAQ · time unavailable
CEO: Charles E. Bradley Jr.
Sector: Financial Services
Industry: Financial - Credit Services
IPO Date: 1992-10-22
Website: https://www.consumerportfolio.com
Consumer Portfolio Services, Inc. (CPSS) - Company Information
Market Cap: 190.91M · Sector: Financial Services
Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. It is involved in the purchase and service of retail automobile contracts originated by franchised automobile dealers and select independent dealers in the sale of new and used automobiles, light trucks, and passenger vans. The company, through its automobile contract purchases, offers indirect financing to the customers of dealers with limited credit histories or past credit problems. It serves as an alternative source of financing for dealers, facilitating sales to customers who are not able to obtain financing from commercial banks, credit unions, and the captive finance companies. The company also acquires installment purchase contracts in four merger and acquisition transactions; purchases immaterial amounts of vehicle purchase money loans from non-affiliated lenders. and offers financing directly to sub-prime consumers to facilitate their purchase of a new or used automobile, light truck, or passenger van. It services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. The company was founded in 1991 and is based in Las Vegas, Nevada.
Analyst Sentiment
Based on 4 ratings
Consensus Price Target
No data available
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"CPSS reported revenue of $109.41M and a net income of $4.98M for the fiscal year ending December 31, 2025. With an operational cash flow of $75.75M and significant free cash flow of $75.28M, the company appears to be generating solid cash flow relative to its revenue. However, it has a high leverage position with total assets of $6.32M and zero liabilities, indicating a strong balance sheet. Despite this, CPSS experienced a 1-year price change of -14.32%, showing a declining market sentiment. In the absence of any dividend payments, shareholder returns are reliant solely on price appreciation, which has not been favorable in recent months. Overall, while the company displays good cash generation, its declining stock performance and lack of dividends warrant closer scrutiny."
Revenue Growth
Revenue of $109.41M reflects stable performance, but year-on-year growth dynamics need observation.
Profitability
Net income of $4.98M indicates profitability but room exists for enhanced margins.
Cash Flow Quality
Strong free cash flow of $75.28M signals robust cash generation capabilities.
Leverage & Balance Sheet
No liabilities and positive net debt signify a healthy balance sheet.
Shareholder Returns
Negative price performance with no dividends leads to a low shareholder returns score.
Analyst Sentiment & Valuation
Negative market performance indicates weak sentiment that affects valuation outlook.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management frames 2025 as 'very good' and 2026 as poised to 'be very, very good' due to $150M Capital One warehousing and a $900M prime forward flow commitment, plus the Generation 9 AI scoring lift (+11% approvals; +8.4% fundings). The candor in the Q&A-style discussion is that credit metrics improved only modestly: DQ >30 days fell slightly (14.77% vs 14.85%) while annualized net charge-offs ticked up (7.76% vs 7.62%). The biggest operational hurdle is recoveries—currently only ~28% to 30% versus a desired low-40s—driven by weak 2022–2023 vintages, with normalization expected only after those vintages flush (by end of this year / by end of 2026 per the legacy reduction plan). Analyst pressure is implied by the acknowledgement of “macro headwinds” (affordability, stubborn inflation, higher rates, stagnant wages) and the need for active dealer rebranding to ramp prime growth slowly.
Growth Catalysts
- Credit improvement via reducing 2022–2023 portfolio: management expects it to be de minimis by end of 2026
- Increased approvals from Generation 9 AI/ML credit scoring model: +11% approvals; approvals shifted from low-40th to low-50th percentiles
- Higher fundings from Generation 9 model: +8.4% total fundings effect
- Operational efficiency gains: core operating expenses declining as % of managed portfolio to 4.8% from 5.6% (YoY)
Business Development
- Renewed/signed new Capital One warehouse line: $150 million
- Signed $900 million prime forward flow commitment
- Prime auto partnership with a large credit union: sources/originates/services prime auto loans; committed buyer up to $50 million per month ($600 million annually), totaling $900 million over 18 months
- Dealer funding pool expansion: added about 1,000 active dealers in December alone
Financial Highlights
- Q4 revenue: $109.44M vs $105.3M (2024) (+~4%)
- FY 2025 revenue: $434M vs $393M (2024) (+10%)
- Interest income: +16% YoY; fair value portfolio yield 11.4% (net of expected losses) on $3.6B fair value portfolio
- Fair value marks: none in 2025 vs $5M in Q4 2024; FY fair value marks $6.5M vs $21M in 2024
- Q4 expenses: $102.2M vs $98.0M (+4%); FY expenses $406M vs $366M (+11%) largely due to higher interest expense
- Interest expense: Q4 $59M vs $53M (+13%); securitization debt balance up 15% YoY
- Pretax earnings: Q4 $7.2M vs $7.4M (slightly down); FY pretax $28.0M vs $27.4M (slightly up)
- Excluding fair value marks: Q4 pretax income $7.2M vs $2.4M (2024); FY pretax income $21.5M vs $6.4M (2024)
- Net income: Q4 $5.0M vs $5.1M; FY $19.3M vs $19.2M (flat)
- Diluted EPS: Q4 $0.21 vs $0.21 flat; FY $0.80 vs $0.79 (+~1%)
- Net interest margin: Q4 $50.1M vs $52.8M (down due to fewer marks); FY $202.5M flat at $202.3M; adjusted (stripping marks) FY net interest margin $196M vs $181M (+8%)
- Core operating expenses: Q4 $43.4M vs $46.2M (-6%); FY $177M vs $180M (-2%)
Capital Funding
- Cash & restricted cash: $172.2M at Dec 2025 vs $137.4M at end of 2024
- Securitization debt: $2.986B vs $2.594B (up 15% YoY)
- Equity: $309.5M at Dec 2025 vs $292.8M (+6%); book value (fully diluted) about $13/share
- Funding/warehousing: $150M Capital One warehouse line; $900M prime forward flow commitment
Strategy & Ops
- Dealer and territory growth: hiring new sales reps and adding new territories
- Funding dealer pool buildout: adding more active dealers (added ~1,000 in December)
- Application growth target: drive applications from 250,000/month to 325,000/month
- Mix/strategic risk initiatives began in Q4 and continue into 2026 (management cites early success)
- Credit model implementation: Generation 9 deployed in Q4; increased approvals +11% and total fundings +8.4%
- Operating efficiency actions: core OpEx decreased 14% YoY; employee cost as % of portfolio improved to 2.4% from 2.6%
Market Outlook
- 2026 outlook tone: 'could be very, very good' with positive interest-rate/unemployment assumptions (management expects rates steady or coming down)
- End-state for legacy 'bad credit' removal: 2022–2023 paper expected to reach de minimis by end of 2026
- Guidance-style operational expectation: credit model improvements and prime program growth expected to be a 'slow build'
Risks & Headwinds
- Delinquencies: total DQ >30 days 14.77% in FY 2025 vs 14.85% in FY 2024 (improved but still ~mid-14%)
- Annualized net charge-offs: 7.76% in FY 2025 vs 7.62% (slightly higher)
- Recoveries light vs historical target: management cited recoveries in ~28% to 30% range vs desired low-40s; expects normalization after 2022–2023 vintages flush out by end of 2026
- Macro servicing headwinds: affordability pressure, stubborn inflation, increased interest rates, and stagnant wage growth impacting customer cash flow
- Servicing mitigation relies on 'right collection techniques and processes' and customers prioritizing car payments to offset delinquency trends
- Dealer environment: lower dealership foot traffic and 'irrational competition' for less business in 2025
- Competitive landscape risk: M&A/competitor exits reduce new entrants; but industry requires ~$1B minimum portfolio to be competitive (potential competitive pressure as others re-enter)
Sentiment: MIXED
Note: This summary was synthesized by AI from the CPSS Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.