CPS Announces Fourth Quarter and Full Year 2024 Earnings: A Mixed Bag of Results

Consumer Portfolio Services, Inc. (CPS) recently announced its fourth quarter and full year 2024 earnings, providing a mixed bag of results that both impressed and concerned investors. The company reported revenues of $105.3 million for the fourth quarter and $393.5 million for the full year, along with a net income of $19.2 million for 2024. However, the company also experienced a significant decline in pretax income and an increase in operating expenses, which raised some eyebrows.



CPS's revenue growth was driven by a 24% increase in new loan originations, which led to solid top-line revenue growth. The company also saw a significant increase in its total portfolio balance, reaching $3.491 billion as of December 31, 2024. This growth can be attributed to the company's focus on expanding its loan portfolio and improving operating efficiencies.



However, CPS's earnings were impacted by a decrease in pretax income and an increase in operating expenses. Pretax income for the twelve months ended December 31, 2024, was $27.4 million, compared to $61.1 million for the twelve months ended December 31, 2023. This decrease of approximately $33.7 million, or 55.2%, was a significant factor in the overall decline in net income. Total operating expenses for the twelve months ended December 31, 2024, were $366.1 million, compared to $290.9 million for the twelve months ended December 30, 2023. This increase of approximately $75.2 million, or 25.9%, contributed to the decrease in net income.



CPS has implemented several strategies to improve its financial performance, including growing new loan originations and improving operating efficiencies. The company has also been focusing on reducing costs in other areas to offset the increases in operating expenses and improve overall financial performance.

In conclusion, CPS's fourth quarter and full year 2024 earnings provided a mixed bag of results, with revenue growth driven by increased loan originations and a larger portfolio balance. However, the company's earnings were impacted by a decrease in pretax income and an increase in operating expenses. CPS has been working on improving its financial performance through various strategies, and investors will be watching closely to see how the company continues to navigate the challenges and opportunities in the market.