Q2 2026 Consumer Portfolio Services Inc Earnings Call Transcript
Key Points
- Originations surged over 40% quarter-over-quarter, reaching $758 million in Q2 2026, a 75% increase year-over-year.
- Credit quality remains strong with approval rates steady at 51% and stable payment-to-income and debt-to-income ratios.
- Delinquencies (30+ days) decreased to 12.16% from 13.14% a year ago, and net charge-offs improved to 7.28% from 7.45%.
- Recovery rates are improving, rising to 33.3% from 30.4% year-over-year, with newer vintages showing higher recoveries.
- The company expanded its sales force by 60% since the start of 2026 and grew its active dealer base to a record 11,889, driving a 42% increase in applications.
- Interest expense rose 9% year-over-year to $64 million due to higher securitization debt from increased originations.
- Core operating expenses increased 9% in Q2, though at a slower pace than revenue growth.
- The company faces headwinds from elevated interest rates and geopolitical tensions, such as the Iran war, which could impact securitization costs.
- Extensions as a percentage of the portfolio were slightly up quarter-over-quarter, indicating potential stress in certain segments.
- Recovery rates, while improving, remain below historical levels, particularly for older vintages like 2022 and 2023.
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
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