Consumer Portfolio Services, Inc. (CPSS) is a specialty finance company headquartered in Las Vegas, Nevada, and listed on NASDAQ. Founded in 1991, the company primarily engages in the purchase and servicing of retail automobile contracts originated by franchised and select independent dealers. It offers indirect financing to customers who may ...Consumer Portfolio Services, Inc. (CPSS) is a specialty finance company headquartered in Las Vegas, Nevada, and listed on NASDAQ. Founded in 1991, the company primarily engages in the purchase and servicing of retail automobile contracts originated by franchised and select independent dealers. It offers indirect financing to customers who may have limited credit histories or past credit problems, serving as an alternative to traditional financing sources like banks and credit unions. As of December 31, 2025, the company manages a portfolio of approximately $3.9 billion with around 220,000 active customers and employs about 913 people. The company operates branches in California, Nevada, Virginia, Florida, and Illinois. Financially, CPSS has shown a market capitalization of around $201 million, with a price-to-earnings ratio of approximately 9.36 and a price-to-book ratio of 0.63, indicating a value-oriented stock. The company's revenue per share is about $20.81, and it has a net profit margin of 4.8%. The enterprise value is significantly higher due to high debt levels, with a debt-to-equity ratio of 12.56, reflecting the capital-intensive nature of the auto finance business. The CEO, Charles E. Bradley, has been leading the company since January 1992 and also serves as a director. Under his leadership, the company has established a strong presence in the subprime auto finance niche. The company's business model involves purchasing installment sale contracts, earning interest income, and servicing loans. It also acquires contracts through mergers and acquisitions. Despite the risks associated with subprime lending, CPSS has maintained profitability and continues to expand its portfolio. The company looks forward to leveraging its expertise in credit risk management and customer service to sustain growth in the auto finance market.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$428.0M
+8.8%
+8.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$19.3M
+0.6%
+12.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+99.6%
+88.8%
+0.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+60.8%
+771.6%
-0.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+4.5%
-7.5%
+4.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$288.3M
+23.6%
+28.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+67.4%
+13.6%
+19.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
1133.1%
+5.1%
+6.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.44x
—
-84.8%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, everyone, and welcome to the Consumer Portfolio Services 2026 Second Quarter Operating Results Conference Call. Today's call is being recorded. Before we begin, management has asked me to inform you that this conference call may contain forward-looking statements. Any statements made during this call that are not statements of historical facts may be deemed forward-looking statements. Statements regarding current or historical valuation of receivables because dependent on estimates of future events also are forward-looking statements. All such forward-looking statements are subject to risks and could cause actual results to differ materially from those projected. I refer you to the company's annual report filed March 16, 2026, for further clarification. The company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, further events or otherwise. With us here is Mr. Charles Bradley, Chief Executive Officer; Mr. Denesh Bharwani, Chief Financial Officer; and Mr. Mike Lavin, President and Chief Operating Officer of Consumer Portfolio Services. I will now turn the call over to Mr. Bradley.
Charles Bradley: Thank you, and welcome, everyone, to our second quarter earnings call. I think a good way to sort of start things off is last year, we thought we were going to grow a lot. We really did a lot of things we thought would enable us to do that. And we didn't really see as much growth as we had anticipated. As we roll into this year, we continue to work on a bunch of different things, investing in technology, looking at new technologies and new ways to do things along with expanding our marketing so that we can grow. In March of this year, the last month of the first quarter, it actually worked and things took off. The second quarter, we might have thought March is always a very good month for originations. So we kind of were hesitant to call out a big change. But by now, we can certainly say it's been an enormous change in terms of our originations volume quarter-to-quarter, it's up over 40%. It remains very strong. So it's probably the biggest and most important thing that's happened in the second quarter. And if we can keep that rolling along, it means very good things for the future. We also -- the credit for all of that paper continues, at least on the early signs, to show it to be at least as good as before, if not better. So we have not given up anything in terms of credit to achieve that growth objective. Also, we now -- without going through renewals and increases and things, we now stand with warehousing of over $900 million, which is kind of what we need to make things happen. Again, all these things are going the right way. The only thing we could use a little help. It would be nice if interest rates would come down or not go up and other things. But we'll talk about that later. For now, I'll turn it over to Danny to go over the financials.
Denesh Bharwani: …
