CPS Contract Purchases Reach Record $758 Million

The Tip Desk · October 27, 2026 · 2 min read

Second-quarter revenue was $121.4 million, up 10.6% from a year earlier, as net income rose 30% to $6.2 million, or $0.27 a share.

Consumer Portfolio Services, Inc. (CPSS), an independent specialty finance company that buys retail installment auto contracts from franchised dealers, purchased $757.7 million of new contracts in the second quarter ended June 30, 2026, a 75% increase from $433.0 million a year earlier.

Chief Executive Officer Charles E. Bradley said the company achieved its highest volume of loan originations ever in the quarter and that the increase in volume delivered strong revenue and earnings growth without compromising credit underwriting standards.

That origination step-up accelerated from the first quarter, when purchases were $533.2 million, 18% above the year-ago first quarter. The receivables book finished June 30 at $4.307 billion, up from $3.942 billion at March 31.

Revenue rose 10.6% to $121.4 million from $109.8 million in the second quarter of 2025, after a 5.1% year-over-year increase to $112.3 million in the first quarter. Net income increased 30% to $6.2 million, or $0.27 a diluted share, from $4.8 million, or $0.20 a share, a year earlier. Pretax income was $9.0 million.

Interest income was $118.1 million. Other income was $3.3 million. Net interest margin was 5.1% of the average portfolio. Total operating expenses were $112.4 million.

Warehouse lines of credit stood at $679.9 million as of June 30, 2026, versus $324.9 million at December 31, 2025. Securitization trust debt was $3.13 billion. Cash and cash equivalents were $7.5 million; restricted cash and equivalents were $172.7 million.

Credit metrics mixed. Annualized net charge-offs were 7.28% of the average portfolio in the second quarter, down from 8.57% in the first quarter. Delinquencies greater than 30 days, including repossession inventory, were 12.16% of the total portfolio as of June 30, compared with 11.58% as of March 31. Recovery rates were 33.3%.

For the six months ended June 30, 2026, total revenues were $233.7 million, up 8% from $216.6 million a year earlier. Pretax income for the six months increased 24% to $17.1 million. Net income for the six months was $11.8 million, or $0.50 a diluted share.

CPS said it will hold a conference call on August 5, 2026, at 1:00 p.m. ET to discuss the second-quarter results.