Consumer Portfolio Services (CPS) to Host First Quarter 2025 Earnings Conference Call

Las Vegas, NV – May 10, 2025

Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”), a leader in providing indirect automobile financing to consumers with past credit problems or limited credit histories, announced it will hold a conference call to discuss its first quarter 2025 operating results on Tuesday, May 13, 2025, at 1:00 p.m. ET. This follows a strong Q4 2024 performance, with the company reporting significant growth in revenues and portfolio balance. Below is a detailed overview of the announcement, context from recent financial performance, and what to expect from the call, based on available information.

Conference Call Details

• Date and Time: Tuesday, May 13, 2025, at 1:00 p.m. ET (11:00 a.m. PT).
• Participation: Investors and interested parties can pre-register for the call at the following link: https://register-conf.media-server.com/register/BIa727447d5fdf49d4b7da9c96f3d668b7. Registered participants will receive an email with dial-in details.
• Recommendations: CPS advises dialing in 15 minutes early to avoid delays.
• Replay Availability: A replay will be available two hours after the call’s conclusion and accessible for 12 months on the company’s investor relations website: https://ir.consumerportfolio.com/investor-relations.
• Purpose: The call will feature key executives, likely including CEO Charles E. Bradley Jr., discussing Q1 2025 financial results, operational updates, and forward-looking strategies.

About Consumer Portfolio Services

CPS is an independent specialty finance company specializing in indirect automobile financing. It purchases retail installment sales contracts primarily from franchised automobile dealerships for late-model used vehicles and, to a lesser extent, new vehicles. The company serves as an alternative financing source for dealers, targeting customers who may not qualify for traditional bank or manufacturer-affiliated loans due to credit challenges. CPS funds these contracts through securitization markets and services them over their duration, offering programs like First Time Buyer, Standard, Alpha, and Preferred, tailored to varying credit risks.

Recent initiatives include the deployment of a next-generation AI-powered servicing and collections platform in partnership with Salient, announced on May 8, 2025, aimed at enhancing efficiency in managing its growing portfolio.

Context from Q4 2024 Performance

While Q1 2025 earnings have not yet been released, CPS’s Q4 2024 results provide insight into its trajectory and potential discussion points for the upcoming call:

• Revenues: $105.3 million for Q4 2024, up 14.5% from $92.0 million in Q4 2023. Full-year 2024 revenues reached $393.5 million, reflecting robust growth.
• Net Income: $5.1 million in Q4 2024, or $0.21 per diluted share, compared to a higher pretax income in Q4 2023 ($9.8 million vs. $7.4 million in 2024). Full-year 2024 net income was $19.2 million, or $0.79 per diluted share.
• Portfolio Growth: Total portfolio balance hit a record $3.491 billion, driven by $1.682 billion in new contract purchases for 2024, a 24% increase in loan originations year-over-year.
• Credit Metrics:
• Annualized net charge-offs rose to 8.02% of the average portfolio in Q4 2024 from 7.74% in Q4 2023.
• Delinquencies (over 30 days, including repossessions) increased to 14.85% of the portfolio as of December 31, 2024, from 14.55% in 2023, reflecting challenges in the subprime auto lending market.
• Securitization: CPS closed a $65.0 million securitization of residual interests on March 20, 2025, bolstering liquidity to support portfolio expansion.
• CEO Commentary: Charles E. Bradley Jr. highlighted “positive trends in loan originations and operating efficiencies,” expressing optimism for 2025 despite inflationary pressures and rising charge-offs.

Potential Topics for Q1 2025 Call

Given CPS’s recent performance and broader economic context, the May 13 call is likely to address:

1. Financial Results:

• Q1 2025 revenue and net income, with comparisons to Q4 2024’s $105.3 million and $5.1 million, respectively.
• Updates on portfolio growth, potentially exceeding the $3.491 billion record, and new contract purchases.
• Credit performance, including net charge-offs and delinquency rates, amid rising interest rates and inflation.

1. Impact of Trump’s Trade War:

• The 10%–25% tariffs on imports, effective April 2025, could increase vehicle prices, impacting CPS’s subprime auto loan market. Higher costs may reduce consumer demand for used vehicles, affecting loan originations.
• CEO Bradley may discuss strategies to mitigate tariff-related challenges, such as focusing on domestic vehicle contracts or adjusting credit programs.

1. AI Platform Implementation:

• Progress on the Salient AI platform, which aims to improve servicing and collections efficiency, potentially reducing delinquencies and operational costs.
• Early impacts on portfolio management, especially given the 14.85% delinquency rate in Q4 2024.

1. Securitization and Liquidity:

• Updates on additional securitizations following the $65.0 million deal, critical for funding new loans.
• Balance sheet strength amid economic uncertainty, with the Federal Reserve signaling no rate cuts until June 2025, per Reuters.

1. Economic Outlook:

• Addressing inflation (projected at 2.8% by year-end, per New York Fed) and recession risks (Goldman Sachs’ 35% probability), which could strain subprime borrowers.
• Strategies to maintain growth in a high-interest-rate environment, building on the 24% loan origination increase in 2024.

1. Operational Efficiencies:

• Efforts to improve margins, as Q4 2024 operating expenses rose to $98.0 million from $82.1 million in Q4 2023, driven by portfolio growth but pressuring profitability.

Broader Context and Challenges

CPS operates in a volatile subprime auto lending market, where economic conditions heavily influence performance. Key challenges include:

• Tariff Impacts: Trump’s tariffs, particularly on auto parts from Mexico and Canada (25%), could raise used vehicle prices, reducing affordability for CPS’s core customers. The Tax Foundation estimates tariffs will cost households $1,300 annually, potentially increasing delinquencies.
• Credit Risk: Rising charge-offs (8.02% in Q4 2024) and delinquencies (14.85%) reflect stress among subprime borrowers, exacerbated by inflation and high interest rates. CPS’s focus on risk-based pricing (e.g., Alpha Plus, Super Alpha programs) will be critical.
• Competition: CPS competes with banks, credit unions, and manufacturer-affiliated finance companies, but its niche in subprime lending provides a buffer. The AI platform could enhance its edge in servicing efficiency.

Public and Investor Sentiment

• X Sentiment: Posts from @StockTitan and @quantisnow highlight CPS’s Q4 2024 portfolio growth and securitization success, with optimism for Q1 2025. However, @InvestorAlerts cautioned about rising delinquencies, urging investors to monitor the May 13 call for credit risk updates.
• Analyst Views: While specific Q1 2025 projections are unavailable, analysts cited in StockTitan expect CPS to leverage its record portfolio and AI platform to offset economic headwinds, though tariff impacts remain a concern.

How to Join the Call

To participate:

1. Pre-register at https://register-conf.media-server.com/register/BIa727447d5fdf49d4b7da9c96f3d668b7 to receive dial-in details via email.
2. Dial in 15 minutes early (12:45 p.m. ET) to ensure connectivity.
3. For post-call access, visit https://ir.consumerportfolio.com/investor-relations for the replay, available for 12 months starting May 13, 2025, at approximately 3:00 p.m. ET.

Conclusion

Consumer Portfolio Services’ Q1 2025 earnings call on May 13, 2025, will provide critical insights into its financial health, operational strategies, and resilience amid Trump’s trade war and economic challenges. Building on Q4 2024’s record $3.491 billion portfolio and $105.3 million revenue, CPS is poised for growth but faces risks from rising delinquencies (14.85%) and tariff-driven vehicle price hikes. The call will likely highlight the impact of the new AI platform and securitization efforts, with CEO Charles E. Bradley Jr. addressing how CPS plans to navigate inflation and credit risks. Investors should tune in for updates on portfolio expansion and tariff mitigation strategies, crucial for assessing CPS’s outlook in a turbulent market.

For more details, visit https://ir.consumerportfolio.com or follow @ConsumerPortfolio on X for updates.