Consumer Portfolio Services reports $6.95 million net income for Q3 2026

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

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For the quarterly period ended June September 30,

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____to_____

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Indicate by check mark whether the registrant

by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

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Smaller Reporting Company ☒

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As of July 24, October 16, 2026, the registrant had 21,554,714 21,850,564

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For the Quarterly Period Ended June September 30, 2026

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Financial statements 83 changes

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Common stock issued upon exercise of options and warrants

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Statements have been prepared in conformity with accounting principles generally accepted in the United States of America, with the instructions to Form 10-Q and with Article 10 of Regulation S-X of the Securities and Exchange Commission, and include all adjustments that are, in management's opinion, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are, in the opinion of management, of a normal recurring nature. Results for the six-month nine-month period ended June September 30, 2026, are not necessarily indicative of the operating results to be expected for the full year.

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the primary components of Other Income for the three-month and six-month nine-month periods ending June September 30, 2026, and 2025

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Maturities of lease liabilities were as follows:

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Maturities of lease liabilities were as follows:

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2026 (excluding the six nine months ended June September 30, 2026)

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For the three and six nine months ended June 30, 2026, September

30, 2026, we recorded stock-based compensation costs in the amount of $ 578,000 548,000 and $ 1.1 1.6 million respectively. As of June September 30, 2026, unrecognized stock-based compensation costs to be recognized over future periods equaled $ 4.2 8.8 million. This amount will be recognized as expense over a weighted-average period of 3.19 3.41 years.

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for the six months ended June 30, 2026:

for the nine months ended September 30, 2026:

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of stock options outstanding and exercisable as of June September 30, 2026 and December 31, 2025

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At June September 30, 2026, the aggregate intrinsic value

value of options outstanding and exercisable was $ 19.6 12.9 million and $ 17.6 11.9 million respectively. There were 157,000 996,000 options exercised for the six nine months ended June September 30, 2026, compared to 1.3 1.4 million for the comparable period in 2025. The total intrinsic value of options exercised was $ 880,000 5.8 million and $ 8.2 8.4 million for the six-month nine-month periods ended June September 30, 2026 and 2025. There were 4,606,000 3,246,000 shares available for future stock option grants under existing plans as of June September 30, 2026.

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common stock for the six nine months ended June September 30, 2026, and 2025:

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transactions, our warehouse credit facilities and our residual interest financing contain various financial covenants requiring minimum financial ratios and results. Such covenants include maintaining minimum levels of liquidity and net worth and not exceeding maximum leverage levels. As of June September 30, 2026, we were in compliance with all such covenants. In addition, certain of our debt agreements other than our term securitizations contain cross-default provisions. Such cross-default provisions would allow the respective creditors to declare a default if an event of default occurred with respect to other indebtedness of ours, but only if such other event of default were to be accompanied by acceleration of such other indebtedness.

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For the quarter ended June September

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We report delinquency on a

a contractual basis. The following table summarizes the delinquency status of these finance receivables measured at fair value as of June

September 30, 2026, and December 31, 2025:

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Securitization trust debt is expected to become due and to be paid prior to those dates, based on amortization of the finance receivables pledged to the trusts. Expected payments, which will depend on the performance of such receivables, as to which there can be no assurance, are $661.6 $346.7 million in 2026, $1,057.0 $1,234.1 million in 2027, $664.5 $845.7 million in 2028, $398.7 $516.3 million in 2029, $222.0 $299.2 million in 2030, $96.8 $146.0 million in 2031, and $30.5 $70.5 million in 2032.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS million and $ 16.6 million as of June September 30, 2026, and December 31, 2025, respectively, have been excluded from the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the Securitization trust debt on our Consolidated Balance debt was sold in private placement transactions to qualified institutional buyers. The debt was issued through our wholly owned bankruptcy remote subsidiaries and is secured by the assets of such subsidiaries, but not by our other assets.

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agreements related to the issuance of the securitization trust debt require that certain delinquency and credit loss criteria be met with respect to the collateral pool and require that we maintain minimum levels of liquidity and net worth and not exceed maximum leverage levels. We are in compliance with all such covenants as of June September 30, 2026.

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Deferred financing costs related to the securitization trust debt are amortized using the interest method. Accordingly, the effective cost of borrowing of the securitization trust debt is greater than the stated rate of interest.

and collection of the contracts. The securitization agreements also require certain funds be held in restricted cash accounts to provide additional credit enhancement for the Notes or to be applied to make payments on the securitization trust debt. As of June September 30, 2026, restricted cash under the various agreements totaled approximately $ 172.7 175 .0 million. Interest expense on the securitization trust debt is composed of the stated rate of interest plus amortization of additional costs of borrowing. Additional costs of borrowing include facility fees, insurance premiums, amortization of deferred financing costs, and amortization of discounts required on the notes at the time of issuance. Deferred financing costs related to the securitization trust debt are amortized using the interest method. Accordingly, the effective cost of borrowing of the securitization trust debt is greater than the stated rate of interest.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (4) Debt other debt outstanding on June September 30, 2026, and December 31, 2025, are summarized below:

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2.85% over CP yield rate (Minimum 3.60%) 6.74% 6.88% and 6.80% at June September 30, 2026 and December 31 2025, respectively

6.40% over SOFR yield rate (Minimum 7.15%) 10.31% 10.47% and 10.40% at June September 30, 2026 and December 31, 2025, respectively

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2.60% over SOFR yield rate (Minimum 2.85%) 6.23% 6.42% and 6.50% at June September 30, 2026 and December 31, 2025, respectively

6.40% over SOFR yield rate (Minimum 6.65%) 10.02% 10.08% and 10.27% at June September 30, 2026 and December 31, 2025, respectively

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Residual interest financing

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Weighted average rate of 8.78 8.75 % and 8.98 % at June September 30, 2026 and December 31, 2025, respectively

Weighted average maturity of March June 2028 and November 2027 at June September 30, 2026 and December 31, 2025, respectively

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On October 17, 2025, we entered into a $ 167.5

million two-year warehouse credit line with Capital One, N.A as the Class A Lender and Oaktree Asset-Backed Income Private Placement Fund

$ 167.5 million to $ 390 million. This facility has a two-year revolving period to October 2027, with an optional amortization period through

On August 18, 2026, we completed

an $ 80 million securitization of residual interests from previously issued securitizations. In this transaction, a qualified institutional buyer purchased $ 80 .0 million of asset-backed notes. The notes are secured by residual interests in four CPS securitizations issued between

On March 4, 2026, we completed a $ 50 million securitization of residual interests from previously issued securitizations. In the transaction, a qualified institutional buyer purchased $ 50 .0 million of asset-backed notes secured by April 2022 and April 2023, as well as an 80% interest in a CPS affiliate that owns the residual interests in four three CPS securitizations issued from January 2025 through October 2025. between July 2023 and April 2026. The sold notes ("2026-1 ("2026-2 Notes"), issued by CPS Auto Securitization Trust 2026-1, 2026-2, consist of a single class with a coupon of 8.75%. 10.25%. At June September 30, 2026, there was $ 50 80 .0 million outstanding under this facility.

On March 4, 2026, we completed a $ 50 million securitization of residual interests from previously issued securitizations. In the transaction, a qualified institutional buyers purchased $ 50 .0 million of asset-backed notes secured by an 80% interest in a CPS affiliate that owns the residual interests in four CPS securitizations issued from January 2025 through October 2025. The sold notes ("2026-1 Notes"), issued by CPS Auto Securitization Trust 2026-1, consist of a single class with a coupon of 8.75%. At September 30, 2026, there was $ 50 .0 million outstanding under this facility.

On April 3, 2026, we amended the credit agreement

Inc., as the Class B Lenders. On April 3, 2026, we amended the credit agreement with Capital One, N.A. to increase the capacity of the facility. The amendment applies to both Capital One, N.A. and the subordinate lender, and increases the capacity of the facility from $ 167.5 million to $ 390 million. This facility has a two-year revolving period to October

2027, with an optional amortization period through April 2029. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Eleven Funding, LLC. The facility provides for effective advances up to 95.50% of eligible finance receivables. The Class A loans under the facility generally accrue interest during the revolving period at a per annum rate equal to the Term SOFR plus 2.60% per annum, with a minimum rate of 2.85% per annum and during the amortization period at a per annum rate equal to the Term SOFR plus 3.60% per annum, with a minimum rate of 3.85% per annum. The Class B loans under the facility generally accrue interest during the revolving period at a per annum rate equal to the Term SOFR plus 6.40% per annum, with a minimum rate of 6.65% per annum and during the amortization period at a per annum rate equal to the Term SOFR plus 7.40% per annum, with a minimum rate of 7.65% per annum. At June 30, 2026, there was $ 353.7 million outstanding under this facility.

The Class B loans under the facility generally accrue interest during the revolving period at a per annum rate equal to the Term SOFR plus 6.40% per annum, with a minimum rate of 6.65% per annum and during the amortization period at a per annum rate equal to the Term

SOFR plus 7.40% per annum, with a minimum rate of 7.65% per annum. At September 30, 2026, there was $ 342.5 million outstanding under this facility.

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2025-1, consist of a single class with a coupon of 11.00%. At June September 30, 2026, there was $ 62.8 million outstanding under this facility.

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The revolving credit agreement with Citibank, N.A. was last renewed in July 2026, extending the maturity date to July 2028 followed by an amortization period through July 2029 for any receivables pledged at the end of the revolving period. The renewal and increase apply to both Citibank, N.A. and the subordinate lender, and increases the capacity of the facility from $ 335 million to $ 508 million. There was $ 327.9 397.2 million outstanding under this facility at June September 30, 2026.

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On March 22, 2024, we completed a $ 50 million

securitization of residual interests from previously issued securitizations. In the transaction, a qualified institutional buyer purchased

$ 50 .0 million of asset-backed notes secured by an 80% interest in a CPS affiliate that owns the residual interests in five CPS securitizations issued from January 2022 through January 2023. The sold notes ("2024-1 Notes"), issued by CPS Auto Securitization Trust 2024-1, consist of a single class with a coupon of 11.50%. At June 30, 2026, there was $ 46.9 million outstanding under this facility.

million revolving credit agreement with Ares Agent Services, L.P. The revolving period for this facility was extended to March 2026 followed by an amortization period through March 2028 for any receivables pledged at the end of the revolving period. In March 2026, the revolving period was extended to April 2026. The facility was not renewed following the expiration of the revolving period. There was nothing outstanding under this facility at June September 30, 2026.

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On June 30, 2021, we completed a $ 50 million securitization of residual interests from previously issued securitizations. In this residual interest financing transaction, qualified institutional buyers purchased $ 50 .0 million of asset-backed notes secured by residual interests in eleven CPS securitizations consecutively issued from January 2018 and September 2020. The sold notes ("2021-1 Notes"), issued by CPS Auto Securitization Trust 2021-1, consist of a single class with a coupon of 7.86%. At June 30, 2026, there was $ 11.1 million outstanding under this facility.

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Condensed Consolidated Balance Sheets.

notes to the public on a continuous basis, and such notes have maturities that range from six months to 10 years. At June September 30, 2026, there was $ 28.5 28.9 million outstanding under this facility.

Unamortized debt issuance costs of $ 2 .0 million 5.9

and $ 1.5 million as of June September 30, 2026, and December 31, 2025, respectively, have been excluded from the total amount reported above for our warehouse lines of credit and residual interest financing. financings. These debt issuance costs are presented as a direct deduction to the carrying amount of the debt on our Unaudited Condensed Consolidated Balance Sheets.

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and six-month nine-month periods ended June September 30, 2026, and 2025 were calculated using the weighted average number of shares outstanding for the related period. The following table reconciles the number of shares used in the computations of basic and diluted earnings per share for the three-month and six-month nine-month periods ended June September 30, 2026, and 2025:

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Incremental common shares attributable to exercise of outstanding options and warrants

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of common stock equivalents were considered, shares included in the diluted earnings per share calculation for the three-month and six-month nine-month periods ended June September 30, 2026, would have included an additional 3 .0 3.7 million shares attributable to the exercise of outstanding options. and warrants. For the three months and six-months ended June 30, 2025, 1.6 million shares, would be included in the diluted earnings per share calculation.

For the three months and nine-months ended September 30, 2025, 3.2 million shares, would be included in the diluted earnings per share calculation.

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As of June September 30, 2026 and December

December 31, 2025, we had no unrecognized tax benefits for uncertain tax positions. We do not anticipate that total unrecognized tax benefits will significantly change due to any settlements of audits or expirations of statutes of limitations over the next 12 months.

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million for the three-month and $ 5.3 million and six-month ended on June 30, 2026, compared to income tax expense of $ 2.2 million and

are recognized for the future tax consequences of events that have been recognized in the financial statements. A valuation allowance is recognized to reduce a deferred tax asset if, based on the weight of all available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized. When making this judgment, both positive and negative evidence is considered, with the most weight given to evidence that can be objectively verified. The recognition of deferred tax liabilities, however, does not require a similar more likely than not test for realization. They are recognized with the expectation that they will be settled in future periods when the related taxable temporary differences reverse. As of June September 30, 2026 we have a net deferred tax asset liabilities of $ 16,000 402,000 . Our net deferred tax asset liabilities of $16,000 $402,000 consists of approximately $ 270,000 608,000 of net U.S. federal deferred tax liabilities and $ 286,000 206,000 of net state deferred tax assets.

Income tax expense was $ 2.8 3.1

million and $ 4.3 8.4 million for the three-months and six-months nine-months ended June on September 30, 2026, compared to income tax expense of $ 2.2 million and $ 6.4 million for the three-months and nine-months ended September 30, 2025, representing an effective income tax rate of 31 % in both periods.

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(9) Fair Value Measurements

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS or out of level 1, level 2 or level 3 assets and liabilities for the three and six nine months ended June September 30, 2026, and 2025.

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of financial assets and liabilities, excluding assets carried at fair value, on June September 30, 2026 and December 31, 2025, were as follows:

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As of September 30, 2026

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (10)

Business Segment Information

The company has one reportable

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (10) Business Segment segment. This determination is made by our Chief Executive Officer, who acts as the chief operating decision-maker ("CODM"), in assessing performance and making decisions regarding resource allocation. The CODM assesses performance by reviewing the consolidated financial statements, which reflect the financial results of our one reportable operating segment.

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On July 9, 2026, we renewed

our two-year revolving credit agreement with Citibank, N.A., while simultaneously increasing the capacity of the facility. The renewal and increase apply to both Citibank, N.A. and the subordinate lender, and increases the capacity of the facility from $335 million to

$508 million. The revolving period for this facility will extend to July 2028 after which CPS will have the option to repay the outstanding loans in full or to allow them to amortize for a one-year period.

On July 22, 2026, we completed

(11) Subsequent Events

On October 9, 2026, we amended

our two-year revolving credit agreement with Capital One, N.A. to increase the capacity of the facility. The amendment applies to both

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Forward-looking statements 14 changes

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the willingness or ability

our ability to and rates

the anticipated levels of

charge-offs and recovery rates;

the willingness or ability of obligors to pay pursuant to contractual terms;

our ability to enforce rights under contracts;

our ability to and rates at which we plan to acquire automobile contracts;

the anticipated levels of recoveries upon sale of repossessed vehicles;

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expected industry and general economic trends;

accrued losses for legal contingencies;

anticipated deferred tax assets;

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the structuring of securitization

our ability to service and repay our debt;

the structuring of securitization transactions as secured financings and the effects of such structures on financial items and future profitability; or the effect of the change in structure on our profitability and the duration of the period in which our profitability would be affected by the change in securitization structure.

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MD&A 145 changes

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our operations in March 1991. From inception through June September 30, 2026, we have originated a total of approximately $26.0 $26.8 billion of automobile contracts from dealers, and to a lesser degree, by originating loans secured by automobiles directly with consumers. Our recent history of contract purchase volumes and managed portfolio levels are shown in the table below. Managed portfolio comprises both contracts we owned and those we were servicing for third parties.

Contract Purchases and Outstanding Managed Portfolio

Outstanding Managed Portfolio

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Six months ended June 30, 2026

Nine months ended September 30, 2026

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109 110 term securitizations of automobile contracts that we originated. As of June September 30, 2026, 19 of those securitizations are active and all are structured as secured financings. We generally conduct our securitizations on a quarterly basis, near the beginning of each calendar quarter, resulting in four securitizations per calendar year.

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Recent Asset-Backed Term Securitizations

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Six months ended June 30, 2026

Nine months ended September 30, 2026

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In October 2025, we entered

transaction we fund our automobile contract purchases primarily with proceeds from warehouse credit facilities. As of June September 30, 2026 our short-term funding capacity was $725.0 $898.0 million over two credit facilities. The first credit facility was established in May 2012.

On October 9, 2026, we amended

into a new $167.5 million facility. On April 3, 2026, it amended its our two-year revolving credit agreement with Capital One, N.A. to increase the capacity of the facility. The amendment applies to both Capital One, N.A. and the subordinate lender, and increases the capacity of the facility from $167.5 million to $390 million. This facility has a two-year revolving period to October 2027, with an optional amortization period through April 2029.

Capital One, N.A. and the subordinate lender, and increases the total capacity of the facility from $390 million to $518 million. This facility has a two-year revolving period to October 2027, with an optional amortization period through April 2029.

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In the transaction, qualified institutional buyers purchased $50.0 million of asset-backed notes secured by an 80% interest in a CPS affiliate that owns the residual interests in four CPS securitizations issued from January 2025 through October 2025. The sold notes ("2026-1

Notes"), issued by CPS Auto Securitization Trust 2026-1, consist of a single class with a coupon of 8.75%.

Most recently, in March August 2026, we completed a $50 an $80 million securitization of residual interests from previously issued securitizations.

In this transaction, a qualified institutional buyer purchased $80.0 million of asset-backed notes. The notes are secured by residual interests in four CPS securitizations issued between April 2022 and April 2023, as well as an 80% interest in a CPS affiliate that owns the residual interests in three CPS securitizations issued between July 2023 and April 2026. The sold notes ("2026-2 Notes"), issued by CPS Auto Securitization Trust 2026-2, consist of a single class with a coupon of 10.25%.

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warehouse credit facilities and our residual interest financings contain various financial covenants requiring certain minimum financial ratios. Such covenants include maintaining minimum levels of liquidity and net worth and not exceeding maximum leverage levels. In addition, certain securitization and non-securitization related debt contain cross-default provisions that would allow certain creditors to declare a default if a default occurred under a different facility. As of June September 30, 2026 we were in compliance with all such financial covenants.

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for the three months ended June September 30, 2026, with the three months ended June September 30, 2025 the three months ended June September 30, 2026, our revenues were $121.4 $131.9 million , an increase of $11.6 $23.5 million, or 10.6% 21.7% from the prior year revenue of 109.8 108.4 million. The primary reason for the increase in revenues is the increase in interest income resulting from the increase in the average outstanding balance of finance receivables measured at fair value. Revenues for the three months ended June September 30, 2026, did not include a mark to the recorded value of the finance receivables measured at fair value.

30, 2026, did not include a mark to the recorded value of the finance receivables measured at fair value. Marks are estimates based on our evaluation of the appropriate fair value and future earnings rate of existing receivables compared to recently acquired receivables and increases or decreases in our estimates of future net losses. In the current period, our re-evaluation of the fair values of these receivables resulted in no marks to finance receivables measured at fair value. There was a $3.0 million mark up to the fair value portfolio in the prior year period.

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months ended September 30, 2026, increased $21.9 million, or 20.5% to $129.1 million from $107.2 million in the prior year. The primary reason for the increase in interest income is the 22.2% increase in the average balance of our loan portfolio over the prior year period.

months ended June 30, 2026, increased $12.8 million, or 12.1% to $118.1 million from $105.4 million in The prior year. The primary reason for the increase in interest income is the 13.7% increase in the average balance of our loan portfolio over the prior year period. The interest yield on our total loan portfolio decreased to 11.3% from 11.4% in the prior year period. The interest yield on receivables measured at fair value is reduced to take account of expected losses and is therefore less than the yield on other finance receivables. The table below shows the average balance and interest yield of our loan portfolio for the three months ended June 30, 2026 and 2025:

The table below shows the average balance and interest yield of our loan portfolio for the three months ended September 30, 2026 and 2025:

Three Months Ended June September 30,

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Other income was $3.3 $2.8 million for the three months ended June September

30, 2026, compared to $1.4 $1.3 million for the comparable period in 2025. This $1.9 $1.6 million increase was primarily driven by the dealer recoveries collected for the three months ending June September 30, 2026. These dealer recoveries were $1.8 $1.4 million for the quarter ended June September 30, 2026. There were no dealer recoveries in the prior year period. The Company engaged a third party that identifies discrepancies in the values of the vehicles that have been repossessed and sold at auction. The third party attempts to collect the amount of the discrepancy from the dealers and remits the amounts collected to the Company net of fees charged.

2026. There were no dealer recoveries in the prior year period. The Company engaged a third party that identifies discrepancies in the values of the vehicles that have been repossessed and sold at auction. The third party attempts to collect the amount of the discrepancy from the dealers and remits the amounts collected to the Company net of fees charged.

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Employee costs were $23.4 million

$112.4 $121.8 million for the three months ended June September 30, 2026, compared to $102.8 $101.4 million for the prior period, an increase of $9.5 $20.4 million, or 9.3%. 20.2%. The increase is primarily due to increases in interest expense.

Employee costs were $24.9 million

during the three months ended June September 30, 2026, compared to $24.4 $22.5 million for the same quarter in the prior year, a decrease an increase of $944,000, $2.4 million, or 3.9%. 10.7%. The table below summarizes our employees by category as well as contract purchases and units in our managed portfolio as of, and for the three-month periods ended, June September 30, 2026, and 2025.

Three Months Ended June September 30,

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our Sales Servicing and Origination staff throughout the three-month periods ended, June September 30, 2026, and the decrease in the average employee cost of our Servicing staff from June 30, 2025, were the largest contributing factors to the increase in headcount and decrease to employee costs from the three-month period ended, June September 30, 2025 to June September 30, 2026.

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include costs associated with purchasing and servicing our portfolio of finance receivables, including expenses for facilities, credit services, and telecommunications. General and administrative expenses were $14.7 $15.6 million, an increase of $2.3 $2.9 million from $12.4 $12.7 million in the prior year period.

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debt increased by $4.5 million for the three months ended June 30, 2026, compared to the prior period. The average balance of securitization trust debt increased to $3,272.1 million for the three months ended June 30, 2026, compared to $2,811.9 million for the three months ended

Blended Cost of Funds on Recent Asset-Backed

Term Securitizations

months ended June September 30, 2026, was $64.3 $70.5 million and represented 57.2% 57.9% of total operating expenses, compared to $58.7 $59.1 million in the previous year, when it was 57.1% 58.3% of total operating expenses. The $5.5 $11.4 million increase in interest expense compared to the prior year period was largely due to increases in the average balance of our securitization trust debt, warehouse credit line debt and residual interest financing debt.

Interest on securitization trust

June trust debt increased by $6.7 million for the three months ended September 30, 2026, compared to the prior period. The average balance of securitization trust debt increased to $3,609.0 million for the three months ended September 30, 2026, compared to $3,039.5 million for the three months ended September 30, 2025. The annualized average rate on our securitization trust debt was 6.1% 6.0% for the three months ended June September 30, 2026, compared to 6.5% 6.3% in the prior year period. For each quarterly securitization transaction, the blended cost of funds is ultimately the result of many factors including the market interest rates for benchmark swaps of various maturities against which our bonds are priced and the margin over those benchmarks that investors are willing to accept, which in turn, is influenced by investor demand for our bonds at the time of the securitization. These and other factors have resulted in fluctuations in our securitization trust debt interest costs. The blended interest rates of our recent securitizations are summarized in the table below:

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on Recent Asset-Backed Term Securitizations

Blended Cost of Funds

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credit line debt increased by $617,000 $3.5 million to $8.8 $10.3 million for the three months ended June September 30, 2026, compared to $8.2 $6.7 million in the prior year period. The increase was primarily due to the higher utilization of our credit lines during the quarter compared to last year. The average balance of our warehouse debt was $445.6 $510.9 million during the three months ended June September 30, 2026, compared to $353.2 $284.6 million for the same period in 2025. The annualized average rate on our credit line debt was 7.9% 8.0% for the three months ended June 30, 2026, compared to September

9.3% 30, 2026, compared to 9.4% in the prior year period.

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renewable notes was $668,000 $673,000 for the three months ended June September 30, 2026. The average balance of the outstanding subordinated debt was $28.1 million for the three months June 30, 2026, compared to $28.0 million for the prior year period. The average yield of subordinated notes is 9.5% for the three months ended June 30, 2025, compared to 9.7% in the prior year period.

$28.7 million for the three months September 30, 2026, compared to $29.0 million for the prior year period. The average yield of subordinated notes is 9.4% for the three months ended September 30, 2026, compared to 10.0% in the prior year period.

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2025, March 2026, and again in March August 2026, we completed a securitization of residual interests from other previously issued securitizations in the amount of $50 million, $50 million, $65 million, and $50 million, and $80 million, respectively. Interest expense for these residual interest financings was $4.7 $5.3 million for the three months ended June September 30, 2026, compared to $4.2 $4.1 million for the same period in 2025.

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the components of interest income and interest expense and a net interest yield analysis for the three-month periods ended June 30, 2026, and 2025: September

Three Months Ended June September 30,

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Net interest yield (2)

(2) Annualized net interest income

divided by average interest earning assets.

Ratio of average interest earning assets to average interest bearing liabilities (1) Average balances are based on month end balances except for warehouse lines of credit, which are based on daily balances.

Average balances are based on month end balances except for warehouse lines of credit, which are based on daily balances.

Three Months Ended June September 30, 2026

Compared to June September 30, 2025

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of commission-based compensation paid to our employee sales representatives. Our sales representatives earn a salary plus commission based on volume of contract purchases. Sales expense increased by $2.6 $3.5 to $8.3 $9.1 million during the three months ended June September 30, 2026, from $5.7 million for the same quarter in 2025. We purchased $757.7 million of new contracts during the three months ended June 30, 2026, compared to $433.0 million in the prior year period.

$5.7 million for the same quarter in 2025. We purchased $815.3 million of new contracts during the three months ended September 30, 2026, compared to $391.1 million in the prior year period.

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expenses is $249,000 for both current and the prior period.

million for the three months ending June September 30, 2026, which is up from $1.4 $1.2 million in the second third quarter of 2025.

Depreciation and amortization expenses increased

to $265,000 compared to $207,000 in the previous year.

For the three months ended June September 30, 2026, we recorded

we recorded income tax expense of $2.8 $3.1 million, representing a 31% effective tax rate. In the prior period, our income tax expense was $2.2 million, representing a 31% effective tax rate.

$2.2 million, representing a 31% effective tax rate.

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six nine months ended June September 30, 2026 with the six nine months ended June September 30, 2025 the six nine months ended June September 30, 2026, our revenues were $233.7 $365.6 million, an increase of $17.1 $40.6 million, or 7.9% 12.5% from the prior year revenue of $216.6 $325.1 million. The primary reason for the increase in revenues is the increase in interest income resulting from the increase in the average outstanding balance of finance receivables measured at fair value. Revenues for the six nine months ended June September 30, 2026, did not include a mark to the recorded value of the finance receivables measured at fair value. The marks are estimates based on our evaluation of the appropriate fair value and future earnings rate of existing receivables compared to recently acquired receivables and increases or decreases in our estimates of future net losses. In the current period, our re-evaluation of the fair values of these receivables resulted in no marks to finance receivables measured at fair value. There was a $6.5 million mark up to the fair value portfolio in the prior year period.

Interest income for the six nine

months ended September 30, 2026 increased $41.5 million, or 13.2%, to $355.9 million from $314.5 million in the prior year. The primary reason for the increase in interest income is the 14.7% increase in the average balance of our loan portfolio over the prior year period.

months ended June 30, 2026 increased $19.5 million, or 9.4%, to $226.8 million from $207.3 million in The prior year. The primary reason for the increase in interest income is the 10.8% increase in the average balance of our loan portfolio over the prior year period. The interest yield on our total loan portfolio decreased from 11.4% in the prior year period to 11.3% in the current year period. The interest yield on receivables measured at fair value is reduced to take account of expected losses and is therefore less than the yield on other finance receivables. The table below shows the average balance and interest yield of our loan portfolio for the six nine months ended June (Dollars in thousands) September

Nine Months Ended September 30,

(Dollars in thousands)

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Other income was $6.9 million

Other income was $9.7 million

for the six nine months ended June September 30, 2026 compared to $2.8 $4.1 million for the comparable period in 2025. This

$4.1 This $5.6 million increase was primarily driven by the dealer recoveries collected for the six nine months ended June September 30, 2026. These dealer recoveries were $4.1 $4.0 million for the six nine months ended June September 30, 2026. There were no dealer recoveries in the prior year period.

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Employee costs were $46.5 million

$216.7 $338.5 million for the six nine months ended June September 30, 2026, compared to $202.9 $304.3 million for the prior period, an increase of $13.8 $34.2 million, or 6.8%. 11.2%. The increase is primarily due to increases in interest expense. To a lesser extent, increases in sales expense also contributed to the increase in operating expenses during the period.

Employee costs were $71.3 million

during the six nine months ended June September 30, 2026 compared to $49.4 $71.9 million for the same period in the prior year. The table below summarizes our employees by category as well as contract purchases and units in our managed portfolio as of, and for the six-month nine-month periods ended, (Dollars in millions)

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and 65 more changes in the filing

Risk factors 4 changes

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$29.0 million in subordinated renewable notes outstanding at June 30, 2026, and December 31, 2025, respectively. In June 2021, March

We have and will continue to

to have a substantial amount of indebtedness. At June September 30, 2026, we had approximately $4,008.3 $4,413.9 million debt outstanding. Such debt consisted primarily of $3,131.1 $3,458.5 million of securitization trust debt and $679.9 $735.8 million of debt from warehouse lines of credit. Our securitization trust debt has increased by $144.5 $472.0 million while our warehouse lines of credit debt has also increased by $355.0 $411.0 million since December 31, 2025 (each net of deferred financing costs). Since 2005, we have offered renewable subordinated notes to the public on a continuous basis, and such notes have maturities that range from six months to 10 years. We had $28.5 million and

31, 2025 (each net of deferred financing costs). Since 2005, we have offered renewable subordinated notes to the public on a continuous basis, and such notes have maturities that range from six months to 10 years. We had $28.9 million and $29.0 million in subordinated renewable notes outstanding at September 30, 2026, and December 31, 2025, respectively. In June 2021, March 2024, March 2025, March 2026, and again in March August 2026, we completed a securitization of residual interests from other previously issued securitizations in the amounts of $50 million, $50 million, $65 million, and $50 million, and $80 million, respectively. As of June September 30, 2026, $168.8 $190.7 million of the residual interest debt remains outstanding.

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Unregistered sales of stock 5 changes

During the three months ended June September 30, 2026, we repurchased

231,134 we repurchased 404,908 shares from existing shareholders, as reflected in the table below.

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Approximate Dollar Value of Shares that May Yet be Purchased Under the

that May Yet be Purchased Under the Plans or Programs (2)

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(2) In July 2025, August 2026, our board of directors authorized the purchase of an additional $5 $10 million of our common stock. Through June September 30, 2026, our board of directors had authorized the purchase of up to $128.2 $148.2 million of our outstanding securities, which program was first announced in our annual report for the year 2002, filed on March 26, 2003. All purchases described in the table above were under the plan announced in March 2003, which has no fixed expiration date.

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ended June September 30, 2026, no director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

Exhibits 9 changes

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Receivables Five LLC ** (filed herewith)

First Amendment to Loan and Security Agreement dated April 3, 2026, amongst registrant, Page Eleven Funding LLC, Computershare Trust Company, N.A., and Capital One, National Association * * (filed herewith)

Auto Receivables Trust 2026-B 2026-C Purchase Agreement dated April July 1, 2026, between registrant and CPS Receivables Five LLC **(filed herewith)

Amendment dated July 9, 2026 to Amended and Restated Credit Agreement amongst registrant, Page Eight Funding LLC, Citibank, N.A., CAFCO, LLC, Charta, LLC, Ciesco, LLC, CRC Funding, LLC, ABF Auto Holdings 2024-1, LLC, and Oaktree Diversified Income Fund Inc. **(filed herewith)

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Date: August 07, 2026

CONSUMER PORTFOLIO SERVICES, INC.

Date: October 30, 2026

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Date: August 07, 2026

Date: October 30, 2026

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