Consumer Portfolio Services Revenue Jumps 21.7% to $131.9 Million in Third Quarter

Key Facts

Consumer Portfolio Services reported on October 22 results for the third quarter and the nine months ended September 30, 2026, posting quarterly revenue of $131.9 million, up 21.7% from $108.4 million a year earlier. Net income rose 43.3% to $7.0 million from $4.9 million, while diluted earnings per share increased 50% to $0.30 from $0.20. The results came as the company expanded its auto contract financing, with quarterly contract purchases jumping 108.5% to $815.3 million. The company's stock closed at $9.25 on October 22 and then at $9.90 on October 23, equivalent to a calculated increase of about 7.0% between the two closes. The company provides indirect auto financing to individuals with limited credit histories or prior credit problems by purchasing retail contracts from dealers.

Third-quarter contract purchase growth outpaced the increase recorded in the first nine months, with year-to-date purchases reaching $2.106 billion, up 65.2% from the comparable period. Revenue for the nine months was $365.6 million, an increase of 12.5%. Interest income was the largest contributor to the quarterly revenue increase, the company said. In the second quarter, revenue was $121.4 million, up 10.6% year over year, and net income was $6.2 million, up 30%. The comparison shows revenue and earnings growth accelerating in the third quarter from the prior quarter on a year-over-year basis, alongside a larger increase in contract-purchasing activity.

The company said the acceleration in loan originations came from expanding its dealer base and improving the speed and efficiency of underwriting and funding contracts. Second-quarter contract purchases rose to $757.7 million, up 75% from the comparable period, before reaching $815.3 million in the third quarter. Chief Executive Charles Bradley said, "The acceleration in our loan origination volume demonstrates strong operating leverage in our business." The company added that it is expanding its dealer network and strengthening relationships to increase originations and market share, while continuing to select the contracts it purchases. This reflects the business's reliance on expanding referral channels and speeding contract processing to drive growth, while selective purchasing remains part of the approach described by management.

The loan portfolio reached a record $4.711 billion at the end of the third quarter, up 25.3% year over year and marking 21 consecutive quarters of growth. The portfolio had stood at $4.307 billion at the end of June 2026. At the same time, total delinquencies, including repossessed vehicles, fell to 12.29% from 13.96% a year earlier. Annualized net charge-offs also declined to 7.26% of the average portfolio, compared with 8.01% in the third quarter of 2025. Net recovery on collateral sold at wholesale auctions rose to 32.0% from 28.7% in the comparable period. The company reported these credit indicators alongside the expansion of its portfolio.

The company strengthened the funding resources for its expansion during the quarter, renewing a warehouse line of credit and increasing its capacity to $508 million from $335 million, an increase of about 52%. It said the higher capacity supports the acceleration in loan originations. It also closed its third asset-backed securitization in 2026, describing it as the 110th deal in the company's 35-year history and the largest in its history. This came as quarterly purchases grew to $815.3 million, making contract funding a parallel consideration in portfolio expansion. The company said the cost and availability of funding are future risks.

The company scheduled a call to discuss operating results for October 26, 2026, at 1:00 p.m. Eastern time. The call is set to follow the results announcement issued on October 22, which covered the third quarter and the nine months ended September 30. The discussion will focus on operating results, according to the company's statement. The quarterly results provide details on revenue and net income growth and contract purchases, as well as developments in the loan portfolio and credit indicators. The company also outlined the expanded credit line and the closing of the securitization deal during the quarter in its statement.