Regional Management Corp. (RMC) functions as a broad-based financial services provider, concentrating on offering consumer installment loans. Its primary focus is on ...
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Operator: Thank you. Greetings. Welcome to the Regional Management Second Quarter 2026 Earnings Call. Please note this conference is being recorded. I will now turn the conference over to Garrett Edson from Investor Relations. Thank you. You may begin. Garrett Edson Thank you and good afternoon. By now, everyone should have access to our earnings announcement and supplemental presentation, which were released prior to this call and may be found on our website at regionalmanagement.com. Before we begin our formal remarks, I will direct you to Page 2 of our supplemental presentation, which contains important disclosures concerning forward-looking statements and the use of non-GAAP financial measures. Part of our discussion today may include forward-looking statements, which are based on management's current expectations, estimates, and projections about the company's future financial performance and business prospects. These forward-looking statements speak only as of today and are subject to various assumptions, risks, uncertainties, and other factors that are difficult to predict, and that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These statements are not guarantees of future performance and therefore you should not place undue reliance upon them. We refer all of you to our press release presentation and recent filings with the SEC for a more detailed discussion of our forward-looking statements and the risks and uncertainties that could impact our future operating results and financial condition. Also, our discussion today may include references to certain non-GAAP measures. Reconciliation of these measures to the most comparable GAAP measures can be found within our earnings announcement or earnings presentation and posted on our website at regionalmanagement.com. I would now like to introduce Lakhbir Lamba, President and CEO of Regional Management Corp. Lakhbir Lamba: Thanks, Garrett, and good afternoon, everyone. Joining me on the call today is Harp Rana, our Chief Financial and Administrative Officer. I'll begin with a summary of our second quarter results and an update on our strategic priorities. And then Harp will walk through the financial details. In the second quarter, our franchise continued to perform well. We generated strong revenue, grew our higher quality auto-secured portfolio, improved our operating efficiency, and continued to return capital to shareholders. For the quarter we generated net income of $8.2 million or $0.85 of diluted earnings per share. On a year-to-date basis, net income and diluted EPS are up 14% and 17%, respectively, compared to the first half of last year. We delivered total revenue in the second quarter of $168 million, up 7% year-over-year, driven by continued portfolio growth. We also maintained strong operating leverage, improving our operating expense ratio by 80 basis points year-over-year to 12.4% while continuing to invest …
| Metric | Latest | 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. |
|---|---|---|---|
| The 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). |
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Harpreet Rana | Executive Vice President and Chief Financial & Administrative Officer | USD 919,064 | Female | 1972 | Active |
Brian J. Fisher | Executive Vice President and Chief Strategy & Development Officer |
| USD 862,317 |
| Male |
| 1984 |
| Active |
Catherine Atwood | Senior Vice President, General Counsel & Secretary | USD 779,252 | Female | 1983 | Active |
Manish Parmar | Executive Vice President & Chief Credit Risk Officer | USD 765,562 | Male | 1978 | Active |
Lakhbir Lamba | President, Chief Executive Officer & Director | USD 237,279 | Male | 1974 | Active |
Chris Peterson | Chief Data & Analytics Officer | — | Male | — | Active |
Steven Barnette | VP, Corporate Controller & Chief Accounting Officer | — | Male | 1980 | Active |
Est. EPS $1.45 · Revenue $168.89M · 3 analysts
Est. EPS $1.47 · Revenue $174.47M · 3 analysts
Est. EPS $4.96 · Revenue $667.17M · 2 analysts
$1.20 per share
| $645.6M |
| +9.7% |
| +0.4% |
| 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. | $44.4M | +7.7% | -28.5% |
| 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. | +52.3% | +2.1% | +3.0% |
| 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). | +12.4% | +35.5% | -11.5% |
| 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. | +6.9% | -1.8% | -28.8% |
| 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. | $292.0M | +10.7% | +7.4% |
| 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. | +45.2% | +0.9% | +6.9% |
| 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. | 464.8% | +9.7% | +2.7% |
| 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. | 8.39x | +15535.2% | +881.6% |
| 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. | $2.2B | +14.4% | +2.7% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 4.45 vs 4.45 | -0.1% | 0.85 vs 1.45 | -41.3% |
| Revenue Surprise | $645.6M vs $623.5M | +3.5% | $168.0M vs $168.9M | -0.5% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Sep 2, 2026 | BASSWOOD CAPITAL MANAGEMENT, L.L.C. | director, 10 percent owner, other: Director-by-Deputization | Common Stock, par value $0.10 per share ("Common Stock") | A | 23,764 | $33.10 |
| Sep 1, 2026 | BASSWOOD CAPITAL MANAGEMENT, L.L.C. | director, 10 percent owner, other: Director-by-Deputization | Common Stock | A | 4,064 | $31.86 |
| Sep 1, 2026 | BASSWOOD CAPITAL MANAGEMENT, L.L.C. | director, 10 percent owner, other: Director-by-Deputization | Common Stock | D | 1,159 | $31.65 |
| Aug 24, 2026 | Atwood Catherine R | officer: SVP and General Counsel | Common Stock | D | 200 | $35.00 |
| Aug 12, 2026 | Lamba Lakhbir S. | director, officer: President and CEO | Common Stock | A | 3,500 | $31.76 |
