Revenue has grown to $167.3 million in 2026Q1, though operating margins remain inconsistent, fluctuating between -6.7% and 22.8% due to the firm's fixed branch-based cost structure.
| 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 |
|---|
| Sales/Revenue | 659.9M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 430.02M | 337.93M | 301.77M | 263.9M | 287.85M | 307.99M | 212.24M | 215.98M | 186.19M | 171.21M | 157.58M | 153.74M | 120.72M | 117.29M | 96.32M | 75.14M | 60.2M |
| Gross Margin % | 65.16% | 52.35% | 51.28% | 47.86% | 56.75% | 71.9% | 56.76% | 60.72% | 60.7% | 62.84% | 65.52% | 70.75% | 58.97% | 68.74% | 70.98% | 71.33% | 69.33% |
| Gross Profit Growth % | - | 11.98% | 14.35% | -8.32% | -6.54% | 45.11% | -1.73% | 16% | 8.75% | 8.65% | 2.5% | 27.36% | 2.92% | 21.77% | 28.19% | 24.81% | - |
| Operating Expenses | 321.06M | 257.57M | 247.7M | 243.12M | 222.53M | 195.51M | 176.32M | 156.98M | 140.28M | 130.96M | 118.63M | 115.6M | 96.78M | 71.04M | 57.01M | 41.81M | 34.58M |
| OpEx % of Revenue | - | 39.9% | 42.09% | 44.09% | 43.87% | 45.64% | 47.16% | 44.13% | 45.74% | 48.06% | 49.32% | 53.2% | 47.27% | 41.63% | 42.01% | 39.69% | 39.82% |
| Selling, General & Admin | 250.18M | 240.47M | 221.88M | 218.09M | 198.72M | 171.39M | 153.69M | 134.41M | 119.42M | 109.42M | 98.57M | 98.28M | 82.02M | 59.29M | 46.9M | 34.31M | 28.18M |
| SG&A % of Revenue | - | 37.25% | 37.7% | 39.55% | 39.18% | 40.01% | 41.1% | 37.79% | 38.94% | 40.16% | 40.98% | 45.23% | 40.06% | 34.75% | 34.56% | 32.57% | 32.46% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 108.95M | 80.36M | 54.08M | 20.78M | 65.32M | 112.47M | 35.93M | 58.99M | 45.9M | 40.26M | 38.95M | 38.14M | 23.94M | 46.25M | 39.31M | 33.33M | 25.62M |
| Operating Margin % | 16.51% | 12.45% | 9.19% | 3.77% | 12.88% | 26.26% | 9.61% | 16.58% | 14.97% | 14.78% | 16.19% | 17.55% | 11.69% | 27.11% | 28.97% | 31.64% | 29.51% |
| Operating Income Growth % | - | 48.6% | 160.19% | -68.18% | -41.92% | 213.05% | -39.1% | 28.52% | 14.02% | 3.36% | 2.12% | 59.32% | -48.24% | 17.66% | 17.95% | 30.08% | - |
| EBITDA | 117.08M | 92.08M | 68.14M | 35.42M | 78.01M | 124.13M | 49.24M | 69.85M | 54.7M | 47.61M | 45.39M | 42.06M | 27.82M | 49.71M | 41.91M | 34.77M | 27M |
| EBITDA Margin % | 17.74% | 14.26% | 11.58% | 6.42% | 15.38% | 28.98% | 13.17% | 19.64% | 17.84% | 17.48% | 18.87% | 19.35% | 13.59% | 29.14% | 30.89% | 33.01% | 31.1% |
| EBITDA Growth % | 103.69% | 35.13% | 92.41% | -54.6% | -37.15% | 152.1% | -29.51% | 27.68% | 14.89% | 4.9% | 7.92% | 51.18% | -44.04% | 18.62% | 20.55% | 28.74% | - |
| D&A (Non-Cash Add-back) | 8.12M | 11.72M | 14.07M | 14.63M | 12.69M | 11.65M | 13.31M | 10.86M | 8.8M | 7.36M | 6.44M | 3.92M | 3.88M | 3.46M | 2.6M | 1.44M | 1.38M |
| EBIT | 108.95M | 80.36M | 54.08M | 20.78M | 65.32M | 112.47M | 35.93M | 58.99M | 45.9M | 40.26M | 38.95M | 38.14M | 23.94M | 46.25M | 39.31M | 33.33M | 25.62M |
| Net Interest Income | 504.73M | 494.13M | 454.36M | 422.24M | 416.63M | 351.19M | 297.36M | 281.04M | 246.66M | 225.13M | 201.04M | 179.57M | 169.85M | 138.2M | 107.42M | 79.17M | 64.16M |
| Interest Income | 592.69M | 578.95M | 528.89M | 489.7M | 450.85M | 382.54M | 335.21M | 321.17M | 280.12M | 249.03M | 220.96M | 195.79M | 184.8M | 152.34M | 119.03M | 91.51M | 74.22M |
| Interest Expense | 87.97M | 84.81M | 74.53M | 67.46M | 34.22M | 31.35M | 37.85M | 40.13M | 33.46M | 23.91M | 19.92M | 16.22M | 14.95M | 14.14M | 11.61M | 12.34M | 10.06M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 63.45M | 57.78M | 54.08M | 20.78M | 65.32M | 112.47M | 35.93M | 58.99M | 45.9M | 40.26M | 38.95M | 38.14M | 23.94M | 46.25M | 39.31M | 33.33M | 25.62M |
| Pretax Margin % | 9.62% | 8.95% | 9.19% | 3.77% | 12.88% | 26.26% | 9.61% | 16.58% | 14.97% | 14.78% | 16.19% | 17.55% | 11.69% | 27.11% | 28.97% | 31.64% | 29.51% |
| Income Tax | 14.64M | 13.37M | 12.85M | 4.83M | 14.1M | 23.79M | 9.2M | 14.26M | 10.56M | 10.29M | 14.92M | 14.77M | 9.14M | 17.46M | 14.56M | 12.29M | 9.18M |
| Effective Tax Rate % | 23.08% | 23.13% | 23.76% | 23.22% | 21.58% | 21.15% | 25.6% | 24.17% | 23% | 25.57% | 38.3% | 38.74% | 38.17% | 37.75% | 37.04% | 36.87% | 35.82% |
| Net Income | 48.81M | 44.41M | 41.23M | 15.96M | 51.22M | 88.69M | 26.73M | 44.73M | 35.34M | 29.96M | 24.03M | 23.36M | 14.8M | 28.79M | 24.75M | 21.04M | 16.44M |
| Net Margin % | 7.4% | 6.88% | 7.01% | 2.89% | 10.1% | 20.7% | 7.15% | 12.58% | 11.52% | 11% | 9.99% | 10.75% | 7.23% | 16.88% | 18.24% | 19.97% | 18.94% |
| Net Income Growth % | 47.77% | 7.73% | 158.35% | -68.85% | -42.24% | 231.79% | -40.24% | 26.56% | 17.96% | 24.68% | 2.85% | 57.85% | -48.59% | 16.33% | 17.64% | 27.95% | - |
| Net Income (Continuing) | 48.81M | 44.41M | 41.23M | 15.96M | 51.22M | 88.69M | 26.73M | 44.73M | 35.34M | 29.96M | 24.03M | 23.36M | 14.8M | 28.79M | 24.75M | 21.04M | 16.44M |
| Discontinued Operations | 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 | 544.53M | 476.78M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 5.05 | 4.45 | 4.14 | 1.66 | 5.30 | 8.33 | 2.40 | 3.80 | 2.93 | 2.54 | 1.99 | 1.79 | 1.14 | 2.23 | 2.12 | 2.19 | 1.72 |
| EPS Growth % | 50.3% | 7.49% | 149.4% | -68.68% | -36.37% | 247.08% | -36.84% | 29.69% | 15.35% | 27.64% | 11.17% | 57.02% | -48.88% | 5.19% | -3.2% | 27.33% | - |
| EPS (Basic) | - | 4.63 | 4.28 | 1.70 | 5.51 | 8.84 | 2.45 | 3.92 | 3.03 | 2.59 | 2.03 | 1.82 | 1.17 | 2.29 | 2.17 | 2.25 | 1.76 |
| Diluted Shares Outstanding | 9.66M | 9.93M | 10.09M | 9.59M | 9.66M | 10.64M | 11.14M | 11.77M | 12.08M | 11.78M | 12.09M | 13.07M | 12.95M | 12.89M | 11.98M | 9.62M | 9.57M |
| Basic Shares Outstanding | 9.16M | 9.93M | 9.64M | 9.4M | 9.3M | 10.03M | 10.93M | 11.4M | 11.65M | 11.55M | 11.82M | 12.85M | 12.7M | 12.57M | 11.69M | 9.34M | 9.34M |
| Dividend Payout Ratio | - | 25.86% | 29.45% | 74.48% | 22.16% | 10.75% | 8.29% | - | - | - | - | - | - | - | - | - | - |
Credit quality and funding costs
As reported in financial statements, Regional Management Corp. has demonstrated a steady upward trajectory in quarterly revenue, climbing from $141.7 million in 2023Q4 to $167.3 million by 2026Q1, reflecting the successful execution of its multi-state expansion strategy despite broader macroeconomic headwinds affecting the subprime consumer segment.
The consistent top-line growth suggests that the company's hybrid branch-based model is effectively capturing market share in its 14-state footprint. However, investors should monitor whether this growth is driven by sustainable loan origination or if it masks an increasing reliance on higher-risk, lower-quality borrowers to maintain volume.
Based on the provided income statement data, gross margins have exhibited significant fluctuation, ranging from a low of 39.0% in 2023Q4 to a peak of 100.0% in 2026Q1, indicating that the company's core profitability is highly sensitive to credit loss provisions and interest rate cycles.
The extreme variance in gross margin suggests that the company's underlying cost of funds and credit loss provisions are not yet stabilized. This volatility warrants further investigation into whether the recent margin expansion is a durable improvement or merely a temporary benefit from accounting adjustments or favorable portfolio seasoning.
According to recent quarterly filings, operating income has shown inconsistent scaling relative to gross profit, with operating margins fluctuating between -6.7% and 22.8%, which suggests that the company's fixed branch-based cost structure may be limiting its ability to achieve meaningful operating leverage during periods of revenue growth.
The inability to consistently expand operating margins alongside revenue growth implies that the high fixed costs of the physical branch network are a significant drag on profitability. Investors should monitor whether management can optimize branch productivity or if the current cost structure will continue to constrain bottom-line performance.
As indicated by the financial data, stock-based compensation remains a recurring expense, peaking at $3.7 million in 2024Q3, which suggests that reported net income may be partially inflated by the exclusion of these non-cash charges when evaluating the company's true operational cash-generating capability.
The persistent use of stock-based compensation warrants caution, as it dilutes existing shareholders while potentially masking the true cost of talent acquisition. Analysts should adjust earnings metrics to account for these recurring charges to better understand the underlying profitability of the lending operations.
While the company has shown recent profitability, the historical volatility in net income, including the loss reported in 2023Q4, suggests that the current earnings trend may be fragile and highly susceptible to a potential downturn in the credit cycle for subprime borrowers.
Short-sellers might focus on the company's reliance on debt-funded growth and the potential for rising delinquency rates to erode the net interest margin. The current valuation may be overly optimistic if the market fails to fully price in the risk of a sustained increase in credit loss provisions.
Quick answers to the most common questions about buying RM stock.
Regional Management Corp. (RM) is profitable, generating $44.4M in net income for the fiscal year ending 2025 with a net profit margin of 6.9%.
Regional Management Corp. (RM) reported an operating income of $80.4M, resulting in an operating profit margin of 12.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Regional Management Corp. (RM) generated $337.9M in gross profit for the year, representing a gross profit margin of 52.3%. This demonstrates the company's core pricing power and production efficiency.