"we're now turning the corner on what's been a very big struggle for most everyone in our industry"
— Charles Bradley
03Detailed Report
CPSS
Company CPSS
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 28, 2026
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Executive Summary
CPSS reported Q1 2024 revenue of $91.7 million, a meaningful sequential improvement with a 10% YoY increase in revenue and a 11.3% yield on the fair-value portfolio, notwithstanding a reset in legacy CECL provisions. Net income of $4.6 million and diluted EPS of $0.19 reflect higher financing costs tied to rising rates, offset by growth in new originations and a record portfolio size. The company disclosed a diversified growth trajectory anchored by a 3.02 billion portfolio (the highest in 33 years) and an origination pace of $346 million for the quarter. Management highlighted a turn in the profitability cycle as new paper performs better, enhanced dealer relationships, and a continued focus on non-price levers (originations efficiency, underwriting accuracy, and AI-enabled fraud reductions). The balance sheet remains capital-light in terms of equity but highly levered via securitized debt, underpinned by robust cash generation and a strategic push into larger dealer groups. The near-term trajectory appears favorable if CPSS sustains volume growth, while macro credit risk, rate volatility, and deleveraging challenges remain key monitoring channels.
Key Performance Indicators
Revenue
Increasing
91.74M
QoQ: 95.19% | YoY: 82.25%
Gross Profit
Increasing
51.41M
56.04% margin
QoQ: 9.38% | YoY: 2.13%
Operating Income
Decreasing
6.56M
QoQ: 74.81% | YoY: -64.37%
Net Income
Decreasing
4.59M
QoQ: -36.13% | YoY: -66.79%
EPS
Decreasing
0.22
QoQ: -35.29% | YoY: -67.65%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $91.744 million (YoY +82.25%, QoQ +95.19%). Gross Profit: $51.411 million (YoY +2.13%, QoQ +9.38%). Operating Income: $6.557 million (YoY −64.37%, QoQ +74.81%). Net Income: $4.59 million (YoY −66.79%, QoQ −36.13%). EPS (diluted): $0.19; EPS (basic): $0.22 (YoY −67.65%, QoQ −35.29%). Key drivers include a 11.3% yield on the fair-value portfolio (net losses deducted) and an 8% YoY increase in finance receivables to $2.79B. Portfolio size rose to $3.02B as of 3/31/2024, the highest in CPS history, supported by $346M of new originations and stronger dealer network engagement (large dealer groups up to 22% of business from 17%). Net interest margin: $49.8M (down 1% YoY). Operating expense as a % of average managed portfolio: 6.0% (vs. 5.7% in 1Q23). Free cash flow: $52.6M; Net cash provided by operating activities: $52.7M; Net cash provided by financing: $81.5M; Cash at period end: $150.96M. Balance sheet highlights include total assets of $3.007B, long-term debt of $2.674B, and shareholders’ equity of $279.1M (up ~22% YoY). Key credit metrics show DQ 14.55% (1Q24), annualized net charge-offs 7.84%, and a tight withdrawal of leverage with LTV around 118–119 (versus ~125 previously). Management commentary emphasizes continued growth momentum, resilience to macro shocks, and an emphasis on non-price value levers (service, underwriting accuracy, and AI-enhanced controls).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
91.74M
82.25%
95.19%
Gross Profit
51.41M
2.13%
9.38%
Operating Income
6.56M
-64.37%
74.81%
Net Income
4.59M
-66.79%
-36.13%
EPS
0.22
-67.65%
-35.29%
Key Financial Ratios
Gross Profit Margin
Excellent
99.80%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
50.20%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Fair
5.29%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.15%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.64%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
5.41
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
High Risk
9.59
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
8.76x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Undervalued
0.58x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
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