Consumer Portfolio Services, Inc.

Second-quarter revenue was $121.4 million, up 11% from $109.8 million a year ago. Net income was $6.2 million versus $4.8 million, and diluted EPS was $0.27 versus $0.20. Pretax earnings were $9 million, up 29% year over year, and expenses were $112.4 million, up 9%. For the first half, revenue was $233.7 million, net income was $11.8 million, and diluted EPS was $0.50. Originations were $758 million in Q2 and $1.3 billion for the first half, up from $433 million and $884 million, respectively, in the prior-year periods. The fair value portfolio was $4.2 billion, yield was 11.3%, cash was $180.2 million, and shareholders’ equity was a record $319.2 million. Looking ahead, management did not give formal next-quarter or full-year financial guidance, but said the growth trend and industry backdrop “paint a pretty good picture for the rest of 2026.”

Charles Bradley said the key change this quarter was a real pickup in originations after a period when growth had lagged expectations. He emphasized that the company invested in technology and marketing, and that those efforts are now working, with originations up over 40% quarter-to-quarter. He was upbeat about credit staying strong despite faster growth and said warehousing above $900 million gives the company the capacity it needs. His tone was constructive but tempered by a wish for lower interest rates.

Denesh Bharwani walked through a quarter with revenue growth outpacing expense growth. He highlighted $121.4 million of revenue, $112.4 million of expenses, $64 million of interest expense, $9 million of pretax earnings, $6.2 million of net income, and $0.27 diluted EPS, all improved from the prior year. He also pointed to $180.2 million of restricted and unrestricted cash, $319.2 million of shareholders’ equity, and a $4.2 billion fair value portfolio yielding 11.3% net of credit losses. He said core operating expenses rose only 3% for the first half and were 4.6% of the managed portfolio, down from 4.8% a year ago.

Most of the call was prepared remarks rather than an analyst Q&A. Management’s main explanations focused on why originations accelerated: a larger sales force, more active dealers, and more applications, while approval rates stayed roughly 51% and underwriting remained tight. They also addressed funding and market conditions, saying securitizations continue to get done each quarter, the market remains strong, and macro conditions are favorable as long as unemployment stays low.