Revenue growth remains consistent, yet structural margin compression is evident as gross margins contracted from 57.9% in 2023Q4 to 46.2% by 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 439.93M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 264.33M | 426.21M | 207.56M | 227.68M | 270.29M | 207.16M | 155.71M | 149.5M | 155.23M | 155.32M | 163.83M | 163.29M | 141.63M | 109.78M | 74.29M | 44.57M | 43.69M | 20.12M | 49.79M | 118.09M | 93.69M | 83.04M | 54.93M | 81.13M | 74.46M | 48.24M | 0 | 0 | 0 | 0 | 0 |
| Gross Margin % | 60.08% | 99.59% | 52.75% | 64.68% | 81.98% | 77.35% | 57.42% | 43.23% | 39.83% | 35.76% | 38.8% | 44.9% | 47.17% | 44.84% | 39.68% | 31.14% | 28.15% | 8.98% | 13.51% | 29.93% | 33.6% | 42.87% | 41.81% | 77.27% | 75.68% | 77.09% | - | - | - | - | - |
| Gross Profit Growth % | - | 105.35% | -8.84% | -15.76% | 30.47% | 33.04% | 4.15% | -3.69% | -0.06% | -5.19% | 0.33% | 15.29% | 29.02% | 47.77% | 66.69% | 2.02% | 117.18% | -59.6% | -57.84% | 26.04% | 12.83% | 51.17% | -32.28% | 8.95% | 54.36% | - | - | - | - | - | - |
| Operating Expenses | 175.04M | 166.18M | 180.13M | 166.59M | 154.09M | 141.42M | 135.59M | 140.34M | 136.53M | 123.25M | 114.17M | 101.91M | 89.39M | 72.61M | 65.1M | 59.03M | 59.88M | 69.52M | 93.24M | 94.13M | 80.49M | 79.67M | 70.82M | 84.16M | 74.4M | 48.24M | 0 | 0 | 0 | 0 | 0 |
| OpEx % of Revenue | - | 38.83% | 45.77% | 47.32% | 46.74% | 52.8% | 50% | 40.58% | 35.03% | 28.37% | 27.04% | 28.02% | 29.77% | 29.66% | 34.78% | 41.24% | 38.59% | 31.05% | 25.31% | 23.86% | 28.87% | 41.13% | 53.9% | 80.17% | 75.62% | 77.09% | - | - | - | - | - |
| Selling, General & Admin | 139.46M | 52.87M | 173.65M | 159.37M | 144.94M | 132.03M | 126.39M | 131.77M | 127.93M | 115.16M | 108.21M | 97.19M | 85.5M | 72.67M | 61.67M | 55.35M | 56.17M | 65.29M | 88.6M | 89.82M | 75.71M | 75.48M | 67.8M | 42.52M | 44.03M | 31.09M | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | 12.35% | 44.13% | 45.27% | 43.96% | 49.3% | 46.61% | 38.11% | 32.82% | 26.51% | 25.62% | 26.73% | 28.48% | 29.68% | 32.94% | 38.67% | 36.19% | 29.16% | 24.05% | 22.77% | 27.15% | 38.97% | 51.6% | 40.5% | 44.75% | 49.68% | - | - | - | - | - |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 89.29M | 260.03M | 27.43M | 61.1M | 116.19M | 65.75M | 20.12M | 9.16M | 18.7M | 32.07M | 49.66M | 61.38M | 52.24M | 37.17M | 9.19M | -14.46M | -16.2M | -49.41M | -43.45M | 23.96M | 13.2M | 3.37M | -15.89M | -3.04M | 62K | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Margin % | 20.3% | 60.76% | 6.97% | 17.36% | 35.24% | 24.55% | 7.42% | 2.65% | 4.8% | 7.38% | 11.76% | 16.88% | 17.4% | 15.18% | 4.91% | -10.1% | -10.44% | -22.07% | -11.8% | 6.07% | 4.73% | 1.74% | -12.09% | -2.89% | 0.06% | - | - | - | - | - | - |
| Operating Income Growth % | - | 847.93% | -55.1% | -47.42% | 76.73% | 226.77% | 119.6% | -51.01% | -41.68% | -35.42% | -19.1% | 17.5% | 40.54% | 304.63% | 163.53% | 10.71% | 67.22% | -13.7% | -281.39% | 81.49% | 291.46% | 121.22% | -422.8% | -5001.61% | - | - | - | - | - | - | - |
| EBITDA | 90.15M | 260.91M | 28.29M | 61.94M | 117.81M | 67.42M | 21.9M | 10.24M | 19.7M | 33.01M | 50.44M | 62.02M | 52.67M | 37.61M | 9.73M | -13.79M | -15.55M | -48.7M | -42.92M | 24.5M | 14M | 4.16M | -15.1M | 656K | 5.75M | 1.91M | 0 | 0 | 0 | 0 | 0 |
| EBITDA Margin % | 20.49% | 60.96% | 7.19% | 17.6% | 35.73% | 25.17% | 8.08% | 2.96% | 5.05% | 7.6% | 11.94% | 17.05% | 17.54% | 15.36% | 5.2% | -9.63% | -10.02% | -21.75% | -11.65% | 6.21% | 5.02% | 2.15% | -11.49% | 0.62% | 5.84% | 3.05% | - | - | - | - | - |
| EBITDA Growth % | 215.51% | 822.16% | -54.32% | -47.42% | 74.74% | 207.8% | 113.95% | -48.02% | -40.33% | -34.56% | -18.67% | 17.75% | 40.04% | 286.54% | 170.57% | 11.31% | 68.08% | -13.47% | -275.15% | 75.03% | 236.38% | 127.56% | -2402.29% | -88.59% | 201.05% | - | - | - | - | - | - |
| D&A (Non-Cash Add-back) | 857K | 881K | 862K | 847K | 1.62M | 1.68M | 1.78M | 1.08M | 992K | 934K | 777K | 637K | 428K | 437K | 543K | 672K | 649K | 707K | 537K | 547K | 800K | 790K | 785K | 3.69M | 5.68M | 1.91M | 0 | 0 | 0 | 0 | 0 |
| EBIT | 89.29M | 260.03M | 27.43M | 61.1M | 116.19M | 65.75M | 20.12M | 9.16M | 18.7M | 32.07M | 49.66M | 61.38M | 52.24M | 37.17M | 9.19M | -14.46M | -16.2M | -49.41M | -43.45M | 23.96M | 13.2M | 3.37M | -15.89M | -3.04M | 62K | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Interest Income | 195.32M | 190.67M | 193.71M | 194.59M | 233M | 186.61M | 164.12M | 226.57M | 278.83M | 331.83M | 329.06M | 292.17M | 236.34M | 173.15M | 95.89M | 44.8M | 55.51M | 96.43M | 195.3M | 231.08M | 170.45M | 120.17M | 73.67M | 34.3M | 24.72M | 2.87M | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 432.49M | 422.7M | 384.96M | 341.22M | 320.52M | 261.85M | 265.45M | 337.1M | 380.3M | 424.17M | 409M | 349.91M | 286.73M | 231.33M | 175.31M | 127.86M | 137.09M | 208.2M | 351.55M | 370.26M | 263.57M | 171.83M | 105.82M | 58.16M | 48.64M | 17.2M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 237.17M | 232.02M | 191.26M | 146.63M | 87.52M | 75.24M | 101.34M | 110.53M | 101.47M | 92.34M | 79.94M | 57.74M | 50.4M | 58.18M | 79.42M | 83.05M | 81.58M | 111.77M | 156.25M | 139.19M | 93.11M | 51.67M | 32.15M | 23.86M | 23.93M | 14.34M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 29.23M | 28M | 27.43M | 61.1M | 116.19M | 65.75M | 20.12M | 9.16M | 18.7M | 32.07M | 49.66M | 61.38M | 52.24M | 37.17M | 9.19M | -14.46M | -16.2M | -49.41M | -43.45M | 23.96M | 13.2M | 3.37M | -15.89M | -3.04M | 62K | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Margin % | 6.64% | 6.54% | 6.97% | 17.36% | 35.24% | 24.55% | 7.42% | 2.65% | 4.8% | 7.38% | 11.76% | 16.88% | 17.4% | 15.18% | 4.91% | -10.1% | -10.44% | -22.07% | -11.8% | 6.07% | 4.73% | 1.74% | -12.09% | -2.89% | 0.06% | - | - | - | - | - | - |
| Income Tax | 9.06M | 8.68M | 8.23M | 15.75M | 30.21M | 18.22M | -1.56M | 3.76M | 3.84M | 28.31M | 20.36M | 26.7M | 22.73M | 16.17M | -60.22M | 0 | 16.98M | 7.8M | -17.36M | 10.1M | -26.36M | 0 | 0 | -3.43M | -2.93M | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 30.99% | 30.99% | 30% | 25.79% | 26% | 27.72% | -7.74% | 41% | 20.54% | 88.26% | 41% | 43.5% | 43.5% | 43.49% | -655.5% | 0% | -104.86% | -15.79% | 39.96% | 42.15% | -199.66% | 0% | 0% | 113% | -4732.26% | - | - | - | - | - | - |
| Net Income | 20.17M | 19.32M | 19.2M | 45.34M | 85.98M | 47.52M | 21.68M | 5.41M | 14.86M | 3.77M | 29.3M | 34.68M | 29.52M | 21M | 69.41M | -14.46M | -33.18M | -57.21M | -26.09M | 13.86M | 39.55M | 3.37M | -15.89M | 395K | 20.41M | 320K | -22.15M | -44.53M | 25.7M | 18.5M | 14.1M |
| Net Margin % | 4.58% | 4.52% | 4.88% | 12.88% | 26.08% | 17.75% | 7.99% | 1.56% | 3.81% | 0.87% | 6.94% | 9.54% | 9.83% | 8.58% | 37.08% | -10.1% | -21.38% | -25.55% | -7.08% | 3.51% | 14.18% | 1.74% | -12.09% | 0.38% | 20.74% | 0.51% | - | - | - | - | - |
| Net Income Growth % | 4.47% | 0.64% | -57.65% | -47.27% | 80.93% | 119.24% | 300.98% | -63.63% | 294.74% | -87.15% | -15.52% | 17.5% | 40.52% | -69.74% | 580% | 56.42% | 42.01% | -119.26% | -288.27% | -64.97% | 1073.04% | 121.22% | -4122.28% | -98.06% | 6277.5% | 101.44% | 50.27% | -273.26% | 38.94% | 31.21% | - |
| Net Income (Continuing) | 20.17M | 19.32M | 19.2M | 45.34M | 85.98M | 47.52M | 21.68M | 5.41M | 14.86M | 3.77M | 29.3M | 34.68M | 29.52M | 21M | 69.41M | -14.46M | -33.18M | -57.21M | -26.09M | 13.86M | 39.55M | 3.37M | -15.89M | 395K | 3M | 320K | -22.15M | -44.53M | 25.7M | 18.5M | 14.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.86 | 0.80 | 0.79 | 1.80 | 3.23 | 1.84 | 0.90 | 0.22 | 0.59 | 0.14 | 1.01 | 1.10 | 0.92 | 0.67 | 2.72 | -0.76 | -1.90 | -3.07 | -1.36 | 0.61 | 1.64 | 0.14 | -0.75 | 0.02 | 0.97 | 0.02 | -1.10 | -2.38 | 1.47 | 1.17 | 0.93 |
| EPS Growth % | 7.59% | 1.27% | -56.11% | -44.27% | 75.54% | 104.44% | 309.09% | -62.71% | 321.43% | -86.14% | -8.18% | 19.57% | 37.31% | -75.37% | 457.89% | 60% | 38.11% | -125.74% | -322.95% | -62.8% | 1071.43% | 118.67% | -3850% | -97.94% | 4750% | 101.82% | 53.78% | -261.9% | 25.64% | 25.81% | - |
| EPS (Basic) | - | 0.88 | 0.90 | 2.17 | 4.10 | 2.11 | 0.96 | 0.24 | 0.68 | 0.17 | 1.20 | 1.34 | 1.18 | 0.98 | 3.56 | -0.76 | -1.94 | -3.07 | -1.36 | 0.66 | 1.82 | 0.16 | -0.75 | 0.02 | 1.03 | 0.02 | -1.10 | -2.38 | 1.67 | 1.29 | 1.05 |
| Diluted Shares Outstanding | 23.53M | 24.08M | 24.32M | 25.22M | 26.59M | 25.78M | 24M | 24.06M | 24.99M | 27.21M | 29.04M | 31.58M | 32.03M | 31.57M | 25.48M | 19.01M | 17.48M | 18.64M | 19.23M | 22.59M | 24.05M | 23.51M | 21.11M | 21.58M | 20.99M | 16M | 20.2M | 18.68M | 17.5M | 15.81M | 15.16M |
| Basic Shares Outstanding | 21.78M | 21.89M | 21.29M | 20.9M | 20.96M | 22.56M | 22.61M | 22.42M | 21.99M | 22.69M | 24.36M | 25.93M | 25.04M | 21.54M | 19.47M | 19.01M | 17.48M | 18.64M | 19.23M | 20.88M | 21.76M | 21.63M | 21.11M | 20.26M | 19.9M | 16M | 20.2M | 18.68M | 15.41M | 14.34M | 13.43M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Credit loss volatility
According to recent financial disclosures, CPSS has demonstrated a consistent upward trajectory in top-line revenue, climbing from $91.7 million in 2024Q1 to $112.3 million by 2026Q1, suggesting that the firm is successfully scaling its loan origination volume despite a challenging interest rate environment.
The steady revenue growth appears to be driven by the velocity of new dealer originations, which offsets the natural runoff of the existing portfolio. Investors should monitor whether this expansion is sustainable, as the reliance on high-APR subprime contracts may face headwinds if consumer credit conditions continue to deteriorate.
As reported in quarterly filings, the company's gross margin has experienced significant volatility, contracting from 57.9% in 2023Q4 to 46.2% by 2025Q4, which highlights the sensitivity of the firm's net interest spread to rising borrowing costs and potential credit normalization within the subprime segment.
The compression in margins suggests that the cost of funds in the ABS market is outpacing the yield the company can extract from its subprime borrower base. This trend warrants further investigation into whether the firm possesses sufficient pricing power to pass these increased costs to dealers and consumers without sacrificing volume.
Based on the provided income statement data, operating margins have remained compressed, hovering near 6-7% for most of the observed period, which indicates that the high fixed-cost structure required for servicing subprime accounts limits the firm's ability to achieve meaningful operating leverage during growth phases.
The persistent overhead associated with centralized collection infrastructure appears to act as a drag on profitability, preventing operating income from scaling proportionally with revenue. This suggests that the company's bottom line remains highly vulnerable to any operational inefficiencies or spikes in collection-related expenses.
Analysis of the reported figures reveals that net income remains thin, with net margins consistently below 5% in recent quarters, a trend that reflects the significant impact of CECL-related credit loss provisions on the company's bottom-line performance and overall earnings quality.
The volatility in EPS, which saw a sharp decline from 2023Q4 levels, suggests that non-cash adjustments and credit provisioning are primary drivers of reported earnings. Investors should be cautious, as these accounting-driven charges may mask the underlying cash-generating capacity of the core lending platform.
While revenue growth appears robust, the firm's reliance on high leverage, as evidenced by a debt-to-equity ratio of 11.33%, suggests that the current growth strategy may be unsustainable if the ABS market experiences a liquidity contraction or if loss severities exceed current management expectations.
Short-term growth in originations may be masking long-term credit risks that are not yet fully reflected in the income statement. The market may be underestimating the potential for a rapid deterioration in net income should the current economic cycle lead to a sustained increase in default rates.
Quick answers to the most common questions about buying CPSS stock.
Consumer Portfolio Services, Inc. (CPSS) is profitable, generating $19.3M in net income for the fiscal year ending 2025 with a net profit margin of 4.5%.
Consumer Portfolio Services, Inc. (CPSS) reported an operating income of $260.0M, resulting in an operating profit margin of 60.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Consumer Portfolio Services, Inc. (CPSS) generated $426.2M in gross profit for the year, representing a gross profit margin of 99.6%. This demonstrates the company's core pricing power and production efficiency.