CPSS 8-K
Consumer Portfolio Services, Inc. (CPSS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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ITEM 7.01 REGULATION FD DISCLOSURE.
We are today making available one presentation consisting of 20 slides. A copy is attached as an exhibit. Although the exhibit is an update of similar presentations made available from time to time as an exhibit to a report on Form 8-K, we are not undertaking to update further any of the information that is contained in the attached presentation. The same presentation furnished as an exhibit to this report will be made available on our website, at this address:
http://ir.consumerportfolio.com/events-and-presentations/presentations
We routinely post important information, including news releases and reports to the U.S. Securities and Exchange Commission, on our website.
The information furnished in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
Neither financial statements nor pro forma financial information are filed with this report.
(d) Exhibits
One exhibit is included with this report:
| 99.1 | Company Summary as of June 30, 2026 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CONSUMER PORTFOLIO SERVICES, INC. | |
| Dated: August 25, 2026 | By: /s/ Denesh Bharwani |
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Denesh Bharwani Executive Vice President Signing on behalf of the registrant |
| 2 |
Exhibit 99.1
The Subprime Source Since 1991 June 2026 Investor Presentation
SAFE HARBOR STATEMENT Forward - looking statements in this presentation include the Company’s expectations of growth and the Company's recorded figures representing allowances for remaining expected lifetime credit losses, its estimates of fair value (most significantly for its receivables accounted for at fair value), its provision for credit losses, its entries offsetting the preceding, and figures derived from any of the preceding. In each case, such figures are f orw ard - looking statements because they are dependent on the Company’s estimates of losses to be incurred in the future. The accuracy of such statements may be adv ersely affected by various factors, which include the following: possible increased delinquencies; repossessions and losses on retail installment contra cts ; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company’s abi lity to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect p aym ents from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which c oul d adversely affect the Company’s realization upon repossessed vehicles; economic conditions in geographic areas in which the Company's business is c onc entrated; and our ability to generate sufficient operating and financing cash flows. Any or all of such factors also may affect the Company’s future fi nan cial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is dis claimed, and the reader should draw no such inference. Factors such as those identified above in relation to losses to be incurred in the future may affect fut ure performance. 2
COMPANY OVERVIEW Consumer Portfolio Services specializes in purchasing and servicing automobile contracts originated by licensed motor vehicle dealers in the sale of new and used automobiles, light trucks and passenger vans. Through our purchases, we provide indirect financing to dealers for sub - prime customers. We serve as an alternative source of financing for dealers, allowing sales to customers who otherwise might not be able to obtain financing. (1) As of June 30, 2026 $4.43 Billion Managed Portfolio (1) NASDAQ Listed: CPSS Average Management Tenure is 25 Years - ~300 Combined Years at CPS HQ in Las Vegas, NV Operating Branches in NV, CA, IL, VA and FL 994 Employees (1) ~13,000 Daily Applications Received from Dealers (1) Established in 1991. IPO 1992 59 Consecutive Profitable Quarters (1) 110 ABS Deals to Date 3
THE CPS ADVANTAGE • Repo - Skip Scorecard • Deficiency Scorecard • Dealer Scorecard • Asset Scorecard • Collection Behavior Scorecard • Extension Scorecard • Applicant Scorecard • Deal Scorecard • Early Payment Default Scorecard Originations Servicing (Collection) Servicing (Recovery) Asset & Dealers CPS is a leader in Machine Learning (ML) and Artificial Intelligence (AI). • Industry leading disciplined modeling framework: Linear/Logistic Regression, Neural Network, Decision Tree, Ensemble Model, Time Series, Machine Learning, Random Forest • Continuous model training and recalibration Proprietary Modeling and Scorecards Instant Credit Decisions Leads CPS to Higher Quality Loans Risk Department Led by Industry Veterans Decades of Historical Performance Data Shape our Models 4
LEADERSHIP Charles “Brad” Bradley CEO, Chairman of the Board • CEO since 1992 • Chairman of the Board since 2001 • 35 years at CPS Mike Lavin President, COO, CLO • President since 2022 • COO since 2019. CLO since 2014 • 25 Years at CPS Danny Bharwani CFO • CFO since 2022 • 29 years at CPS CPS’ senior management team consists of 13 executives that are led by Brad, Mike, Robert and Danny. Each has significant indu str y experience and, on average, 25 years with CPS. Combined, senior management has over 300 years of auto lending experience just at CPS . 5 Robert Riedl CRO • Re - joined as Chief Risk Officer in 2025 • 13 Years at CPS
MARKET • $1.6 trillion auto loans outstanding at Q1 2026 (1) • ~18% of auto financings in Q1 2026 were sub - prime (1) Large Total Addressable Market (TAM) • Capital - intensive • Highly regulated industry High Barrier to Entry • Few dominant players • Compete on rates and fees Small, Fragmented Market Dynamics Footprint © GeoNames, Microsoft, TomTom Powered by Bing 10% 8% 8% 5% 5% (1) According to Experian Automotive (2) As of June 30, 2026 • Highest volume originating states for CPS (2) • Contracts purchased in 47 states (2) 6
PRODUCT OFFERING (1) Under the CPS programs for contracts purchased for the six months ended June 30, 2026. 7 Meta 14.15% $26,767 $104,715 8.6 651 4% Preferred 16.29% $27,416 $88,990 7.0 573 18% Super Alpha 18.34% $26,384 $79,157 5.8 558 15% Alpha Plus 20.66% $23,837 $82,128 5.2 541 19% Alpha 22.10% $21,304 $64,283 4.4 549 33% Standard 24.18% $16,592 $57,220 3.5 554 8% Mercury / Delta 24.85% $15,272 $56,307 3.8 529 3% First Time Buyer 23.90% $14,497 $46,591 2.9 584 1% Overall 20.24% $22,635 $72,802 5.1 556 100% % of Purchases Avg. YieldProgram (1) Avg. Amount Financed Avg. Annual Household Income Avg. Time on Job (years) Avg. FICO
ORIGINATION CHARACTERISTICS 100.0% 105.0% 110.0% 115.0% 120.0% 125.0% 130.0% Loan to Value 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% Payment to Income 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% APR $0 $5,000 $10,000 $15,000 $20,000 $25,000 Amount Financed 8 All charts are contracts purchased for the six months ended June 30, 2026, and calculated on a weighted average basis, beside s A mount Financed, which is the simple average.
DEMAND FOR OUR LENDING PROGRAMS 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD 2026 Applications vs. Funded Loans Applications Approved Applications Contracts Funded 50.4% Average Approval Rate 12,000 Approved Dealer Network Strong Demand for our Lending Programs Auto Decisioning Proprietary AI Driven Scorecard Selective Funding Answers Within Seconds to Dealers 9
WHO IS OUR CUSTOMER? CPS Customer 39 Years Old on Average 5 Years Average Job Time 7 Years Average Length at Residence 7 Years Credit History on Average 20.9% Homeowners 10.9% Average Payment to Income $72,802 Average Household Income 33.6% Average Debt to Income Amounts for CPS programs for contracts purchased for the six months ended, June 30, 2026. 10
WHAT DO OUR CUSTOMERS DRIVE? New , 13.1% Certified Pre - Owned , 14.4% Pre - Owned , 72.5% VEHICLE TYPE Factory Franchised , 72% Independent , 28% ORIGINATING DEALERSHIP Domestic , 44% Imports , 56% VEHICLE MAKE Charts show data of CPS programs for contracts purchased for the three months ended June 30, 2026. 11
PORTFOLIO PERFORMANCE Data shown is CNL performance by origination quarter, and as of June 30, 2026. 12 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 CNL Percentage Months Seasoned 2016- Q1 2016-Q2 2016-Q3 2016-Q4 2017- Q1 2017-Q2 2017-Q3 2017-Q4 2018- Q1 2018-Q2 2018-Q3 2018-Q4 2019- Q1 2019-Q2 2019-Q3 2019-Q4 2020- Q1 2020-Q2 2020-Q3 2020-Q4 2021- Q1 2021-Q2 2021-Q3 2021-Q4 2022- Q1 2022-Q2 2022-Q3 2022-Q4 2023- Q1 2023-Q2 2023-Q3 2023-Q4 2024- Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 2025-Q2 2025-Q3 2025-Q4 2026-Q1 2026-Q2
ECONOMIC MODEL June 30, 2026 June 30, 2025 Interest Income 11.3% 11.4% Interest Expense (6.1%) (6.4%) Net Interest Margin 5.2% 5.0% Mark to Finance Receivables 0.0% 0.3% Other Income 0.3% 0.2% Core Operating Expenses (4.6%) (4.8%) Pretax Return on Assets 0.9% 0.8% Quarter Ended (1) (1) Statement of Operations three months ended, as a percentage of the average portfolio. Percentages may not add due to rou ndi ng. 13
SUMMARY BALANCE SHEET June 30, 2026 December 31, 2025 Assets Cash 7.5$ 6.3$ Restricted cash 172.7 165.9 Finance receivables 4,212.2 3,655.9 Other assets 29.8 30.1 4,422.2$ 3,858.2$ Liabilities Accounts payable and accrued expenses 94.7$ 65.2$ Warehouse lines of credit 679.9 324.9 Residual interest financing 168.8 143.0 Securitization trust debt 3,131.1 2,986.6 Subordinated renewable notes 28.5 29.0 4,103.0 3,548.6 Shareholders' equity 319.2 309.5 4,422.2$ 3,858.2$ Summary Balance Sheet ($ in millions) (1) (1) Numbers may not add due to rounding . 14
SUMMARY STATEMENT OF OPERATIONS (1) Numbers may not add due to rounding. 15 June 30, 2026 June 30, 2025 Interest income 118.1$ 105.4$ Mark to finance receivables at fair value - 3.0 Other income 3.3 1.4 Total Revenues 121.4 109.8 Employee costs 23.4 24.4 General and administrative 24.7 19.7 Interest 64.3 58.7 Total Expenses 112.3 102.8 Pretax income 9.0 7.0 Income tax expense 2.8 2.2 Net income 6.2$ 4.8$ EPS (fully diluted) 0.27$ 0.20$ Three Months Ended Summary Statement of Operations ($ in millions) (1)
SELECTED FINANCIAL DATA ($ in millions) June 30, 2026 June 30, 2025 Auto contract purchases 757.7$ 433.0$ Total portfolio 4,306.7$ 3,708.4$ Core operating expenses (1) $ Amount 48.1$ 44.1$ % of avg. managed portfolio 4.6% 4.8% Pretax return on managed assets (2) 0.9% 0.8% Total delinquencies and repo inventory (30+ days past due) As a % of total owned portfolio 12.16% 13.14% Annualized net charge-offs As a % of total owned portfolio 7.28% 7.45% Three Months Ended (1) Total expenses less interest expense. (2) Equal to annualized pretax income as a percentage of the average portfolio . 16
SHAREHOLDER VALUE Growing Shareholder Value NASDAQ Listed Stock - Ticker Symbol: CPSS 17 $0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 $25,000 $27,500 $30,000 $32,500 $35,000 $37,500 $40,000 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 $14.00 $15.00 $16.00 Pre-tax Income $ in Thousands - Left Axis Diluted Book Value per Share in $ - Right Axis Book Value per Share in $ - Right Axis
SHAREHOLDER’S EQUITY ~2.5x Growth in 6 Years Consistent Growth and Profitability, Fueling Value Creation 18 $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 $250,000 $275,000 $300,000 $325,000 $350,000 Shareholder's Equity ($ in thous.) Shareholder's Equity
INVESTMENT OUTLOOK Continuous Growth Strong macroeconomic factors AI - driven Originations Scorecard Strong Fundamentals • 75% increase in loan origination volume over June 2025 • Originations volumes are driving top and bottom - line growth • Managed portfolio is at largest amount in company history • Avg APRs remain consistent at ~ 20% • Favorable demand for used vehicles • Stable delinquencies • Lower borrowing rates on our credit facilities • Improves efficiency and customer satisfaction • Updated Credit Scorecard went live in December 2025 • Industry leading technology in all facets of our business • Continuous growth in interest income • Increasing shareholder equity - highest in company history • Decreasing core operating expenses, while portfolio grows Investor Relations Contact Mike Lavin, President/ COO/ CLO [email protected] 19
REFERENCE TO PUBLIC REPORTS Any person considering an investment in securities issued by CPS is urged to review the materials filed by CPS with the U.S. Securities and Exchange Commission ("Commission"). Such materials may be found by inquiring of the Commission‘s EDGAR search page www.sec.gov/edgar/searchedgar/companysearch.html using CPS's ticker symbol, which is "CPSS." Risk factors that should be considered are described in Item 1A, “Risk Factors," of CPS’s most recent annual report on Form 10 - K and subsequent reports on Form 10 - Q, which reports are on file with the Commission and available for review at the Commission's website. Such description of risk factors is incorporated herein by reference. 20