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- **Record Q3 results**: $14.4M net income (87% YoY), $2B+ portfolio, and 12.8% operating expense ratio.
- **Auto-secured dominance**: 41% YoY growth, 1.8% delinquency rate, and 13% small loan expansion.
- **Credit resilience**: 10.2% NCL rate (40bps YoY improvement), 7% delinquency rate, and $60M buyback authorization.
- **Leadership transition**: Rob Beck retiring in June 2026, succeeded by Lakhbir Lamba with $178M capital returned since 2020.
- **2025 outlook**: $43.5M net income, 10%+ portfolio growth, and cautious expansion into 1-2 new states.

**【CEO Summary Section】**
- **Record financial performance**: Q3 net income of $14.4M (87% YoY growth), EPS of $1.42, and $26M capital generation.
- **Portfolio milestones**: Ending net receivables surpass $2B, total revenue hits $165M (13% YoY), and operating expense ratio drops to 12.8% (110bps YoY improvement).
- **Growth drivers**: Auto-secured loans grow 41% YoY to $80M, small loans expand 13%, and 16 new branches contribute $35M incremental growth.
- **Credit strength**: 30+ day delinquency rate at 7% (30bps YoY improvement), NCL rate of 10.2% (170bps sequential improvement), and auto-secured delinquency at 1.8%.
- **Expansion plans**: 5-10 new branches by mid-2026, entering 1-2 new states, and $60M stock buyback authorization.
- **Leadership transition**: CEO Rob Beck to retire in June 2026, succeeded by Lakhbir Lamba, with $178M capital returned to shareholders since 2020.

**【CFO Financial Commentary】**
- **Revenue and margins**: Total revenue $165M (13% YoY), interest/fee yield 29.7%, and 12x revenue-to-expense growth ratio.
- **Credit metrics**: $9.2M allowance increase, 10.3% reserve rate, and $57M Q4 net credit loss forecast.
- **Funding efficiency**: 76% fixed-rate debt at 4.6% coupon, $253M ABS transaction at 4.8% (50bps improvement), and 1.2-year average debt duration.
- **Capital returns**: $17M shares repurchased (3.2M total since 2020), $9M dividends, and book value of $37.94/share.

**【Q&A Highlights】**
- **Digital and branch growth**: Auto-secured loans drive 41% YoY growth, branches generate $5.9M/revenue, and new branches profitable by month 14.
- **Economic resilience**: 7M jobs in target segment, stable consumer health, and cautious underwriting amid government shutdown.
- **Marketing efficiency**: New customer lifetime value models reduce spend by $800K QoQ while maintaining growth.
- **2025 guidance**: Full-year net income $43.5M (midpoint of $42-45M), Q4 net income $12M, and 10%+ portfolio growth target.


Regional Management Corp. (RM) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RM

RM fundamentals

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