Consumer Portfolio Services, Inc. (CPSS): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde complexe du financement automobile, Consumer Portfolio Services, Inc. (CPSS) apparaît comme une puissance stratégique, transformant le paysage de prêt traditionnel en offrant des solutions innovantes pour les emprunteurs souvent négligés par les institutions financières conventionnelles. En tirant parti d'un modèle commercial sophistiqué qui comble le fossé entre les consommateurs de crédit à risque et les concessionnaires automobiles, CPSS a élaboré un créneau unique dans l'écosystème des services financiers, offrant des options de financement flexible Technologie et approches de prêt personnalisées.

Consumer Portfolio Services, Inc. (CPSS) - Modèle d'entreprise: partenariats clés

Réseaux de concessionnaires automobiles sur plusieurs états

Consumer Portfolio Services, Inc. maintient des partenariats avec environ 7 500 concessionnaires automobiles indépendants dans 48 États en 2023. Le réseau de concessionnaires de la société a généré 1,2 milliard de dollars de créations de prêts totaux au cours de l'exercice 2023.

Couverture de l'État	Nombre de concessionnaires	Volume de création de prêt
Réseau total de concessionnaires	7,500	1,2 milliard de dollars
États couverts	48	N / A

Fournisseurs de logiciels de technologie financière (FinTech)

CPSS collabore avec plusieurs fournisseurs de fintech pour améliorer les capacités de prêt numérique. Les partenariats technologiques clés comprennent:

• Plates-formes logicielles de création de prêt
• Algorithmes d'évaluation des risques
• Systèmes de vérification des documents numériques

Banques régionales et nationales pour le financement des prêts

La société maintient des facilités de crédit avec 12 institutions financières, avec des lignes de crédit disponibles totales de 425 millions de dollars au 31 décembre 2023.

Type de banque	Nombre de facilités de crédit	Ligne de crédit totale
Banques régionales	8	275 millions de dollars
Banques nationales	4	150 millions de dollars

Agences de rapport de crédit pour l'évaluation des risques

CPSS utilise des données de trois principales agences de déclaration de crédit pour effectuer des évaluations complètes des risques:

• Expérien
• Transunion
• Equifax

Remarketing de véhicules et sociétés de vente aux enchères

Les services de portefeuille de consommateurs s'associent à 15 sociétés de remarketing de véhicules, gérant en moyenne 3 200 dispositions de véhicules par trimestre en 2023. Le chiffre d'affaires total du remarketing a atteint 42,6 millions de dollars pour l'exercice.

Métrique	Valeur
Nombre de partenaires de remarketing	15
Dispositions de véhicules trimestriels	3,200
Revenus de remarketing annuel	42,6 millions de dollars

Consumer Portfolio Services, Inc. (CPSS) - Modèle d'entreprise: Activités clés

Achat et sécurisation des prêts automobiles

Au quatrième trimestre 2023, les services de portefeuille de consommateurs ont déclaré des achats totaux de prêt de 180,2 millions de dollars. Le volume de titrisation de la société pour l'année était de 456,3 millions de dollars.

Métriques d'achat de prêt	2023 données
Achats totaux de prêt	180,2 millions de dollars
Volume de titrisation	456,3 millions de dollars
Solde moyen des prêts	$22,750

Développer des programmes de financement spécialisés

CPSS se concentre sur des programmes de prêt automobile spécialisés pour:

• Emprunteurs de subprimes
• Clients détenus
• Prêts automobiles indirects

Évaluation des risques et souscription du crédit

Les mesures de risque de crédit de l'entreprise en décembre 2023:

Métrique à risque	Pourcentage
Taux de redevance net	6.2%
Taux de délinquance de 90 jours	4.8%
Score de crédit moyen des emprunteurs	580-620

Entretien et gestion des portefeuilles de prêts automobiles

Statistiques de gestion du portefeuille pour 2023:

• Portefeuille total de prêts gérés: 1,2 milliard de dollars
• Nombre de comptes actifs: 52 400
• Coût de service moyen par compte: 124 $

Ventes et refinancement de prêts du marché secondaire

Performance du marché secondaire en 2023:

Métrique de vente de prêt	Montant
Ventes totales de prêts	275,6 millions de dollars
Volume de refinancement	89,4 millions de dollars
Gain moyen en vente	2.3%

Consumer Portfolio Services, Inc. (CPSS) - Modèle d'entreprise: Ressources clés

Algorithmes d'évaluation des risques de crédit propriétaires

Depuis le quatrième trimestre 2023, Consumer Portfolio Services, Inc. utilise des algorithmes avancés d'évaluation des risques de crédit avec les spécifications suivantes:

Métrique algorithme	Données quantitatives
Taux de précision prédictif	87.3%
Points de données analysés	Plus de 250 variables de crédit uniques
Itérations du modèle d'apprentissage automatique	23 versions raffinées

Relations étendues du réseau de concessionnaires

Composition du réseau de concessionnaires CPSS à partir de 2024:

• Partenariats totaux de concessionnaires actifs: 1 247
• Couverture géographique: 42 États
• Durée moyenne des relations du concessionnaire: 7,6 ans

Plateformes de technologie de gestion des prêts avancés

Métriques de la plate-forme technologique	Données quantitatives
Volume annuel de traitement des transactions	1,2 milliard de dollars
Capacités de surveillance en temps réel	99,97% de disponibilité
Fiabilité des infrastructures cloud	Certifié ISO 27001

Équipes de gestion financière et des risques expérimentées

Composition et expertise de l'équipe:

• Personnel professionnel total: 312 employés
• Expérience moyenne de l'industrie: 12,4 ans
• Diplômes avancés: 68% de l'équipe de direction

Capital financier substantiel pour les investissements de prêts

Métriques financières	Données quantitatives
Facilité de crédit disponible totale	487 millions de dollars
Valeur du portefeuille de prêts	623 millions de dollars
Capitaux propres	214 millions de dollars

Consumer Portfolio Services, Inc. (CPSS) - Modèle d'entreprise: propositions de valeur

Options de financement pour les consommateurs avec un crédit difficile

Consumer Portfolio Services, Inc. fournit un financement spécialisé pour les prêts automobiles aux personnes ayant des défis de crédit. Au quatrième trimestre 2023, la société a rapporté:

Crédit Profile	Volume de prêt	Montant moyen du prêt
Emprunteurs de subprimes	287,4 millions de dollars	$15,620
Emprunteurs de subprimes profonds	142,6 millions de dollars	$12,340

Solutions de prêt automobile flexible

CPSS propose diverses structures de prêt adaptées à des scénarios de crédit difficiles:

• Conditions de prêt allant de 36 à 84 mois
• Options de paiement personnalisés
• Recinancement opportunités pour les prêts automobiles existants

Processus d'approbation des prêts rapides

Métriques de traitement des prêts pour 2023:

Métrique	Performance
Temps d'approbation moyen	24-48 heures
Taux d'achèvement de l'application en ligne	68.3%

Taux d'intérêt concurrentiels pour les emprunteurs subprimes

Gammes de taux d'intérêt pour 2023:

Niveau de crédit	Gamme APR typique
Quasi-prison	9.5% - 15.2%
Subprime	15.3% - 24.7%

Financement alternatif pour les profils de crédit non traditionnels

Répartition spécialisée du portefeuille de financement:

• Emprunteurs indépendants: 22,4% du portefeuille de prêts
• Emprunteurs ayant une histoire de crédit limitée: 17,6% du portefeuille de prêts
• Gig Economy Workers: 12,3% du portefeuille de prêts

Consumer Portfolio Services, Inc. (CPSS) - Modèle d'entreprise: relations avec les clients

Plateformes de demande de prêt numérique

Depuis 2024, Consumer Portfolio Services propose des plateformes de demande de prêt en ligne avec les mesures clés suivantes:

Métrique de la plate-forme	Données numériques
Taux d'achèvement de l'application en ligne	67.3%
Temps de traitement moyen	24 minutes
Taux de soumission des applications mobiles	42.1%

Assistance personnalisée au service client

Les canaux de support client comprennent:

• Prise en charge du téléphone: disponible de 8 h à 20 h HNE
• Temps de réponse par e-mail: moyenne 4,2 heures
• Disponibilité du support de chat en direct: 12 heures par jour

Systèmes de gestion des comptes en ligne

Fonction de gestion du compte	Engagement des utilisateurs
Utilisateurs actifs mensuels	78,500
Pourcentage de transaction en libre-service	53.6%
Pourcentage d'utilisateurs de l'application mobile	37.9%

Canaux de communication en cours

• Envoyez des newsletters: fréquence mensuelle
• Rappels de paiement SMS: Taux d'opt-in de 92%
• Plateformes d'engagement des médias sociaux: LinkedIn, Twitter

Service de prêt proactif et engagement client

Métrique de l'engagement	Données de performance
Points de contact de communication proactive	4.7 par client chaque année
Taux de rétention de la clientèle	68.3%
Taux d'acceptation de l'offre de refinancement	22.6%

Consumer Portfolio Services, Inc. (CPSS) - Modèle d'entreprise: canaux

Portail de demande de prêt en ligne en ligne

Depuis 2024, les services de portefeuille de consommateurs maintiennent une plate-forme de demande de prêt numérique avec les spécifications suivantes:

Volume annuel de demande en ligne	42 687 applications
Temps moyen de traitement des applications en ligne	17,3 minutes
Taux d'approbation de la plate-forme numérique	63.4%

Réseaux de financement des concessionnaires directs

CPSS fonctionne par le biais de réseaux de concessionnaires étendus:

• Compte de partenariat total du concessionnaire: 1 247 concessionnaires
• Couverture géographique: 38 États
• Volume de financement moyen des concessionnaires: 127,6 millions de dollars par an

Application mobile pour la gestion des prêts

Compte de téléchargement d'application mobile	87 453 utilisateurs
Utilisateurs actifs mensuels	62,319
Transactions mensuelles moyennes	42,876

Centre de support client téléphonique

Métriques des canaux de support client:

• Volume d'appel annuel: 214 562 appels
• Temps de résolution moyenne des appels: 7,2 minutes
• Taux de satisfaction client: 87,3%

Plateformes de financement automobile tierces

Intégrations totales de plate-forme	23 plateformes de financement automobile
Volume de financement annuel via des plateformes tierces	436,7 millions de dollars
Taille moyenne des transactions	$18,742

Consumer Portfolio Services, Inc. (CPSS) - Modèle d'entreprise: segments de clientèle

Emprunteurs de crédit à risque

En 2024, les services de portefeuille de consommateurs ciblent environ 16,4% du marché du financement automobile pour les emprunteurs de crédit à risque. La cote de crédit moyenne pour ce segment varie entre 300 et 579.

Plage de cotes de crédit	Pénétration du marché	Montant moyen du prêt
300-500	7.2%	$12,350
500-579	9.2%	$15,675

Concessionnaires automobiles d'occasion indépendants

CPSS dessert environ 3 200 concessionnaires automobiles d'occasion indépendants dans 42 États. Le réseau de concessionnaires de la société génère un volume de financement indirect annuel de 487 millions de dollars.

• Valeur du portefeuille de concessionnaire moyen: 152 000 $
• Couverture géographique: 42 États
• Volume de transaction du réseau des concessionnaires annuels: 68 500 véhicules

Consommateurs ayant des antécédents de crédit limités

La société cible environ 22,6% des consommateurs ayant des histoires de crédit limitées ou pas, ce qui représente un segment de marché de 1,3 milliard de dollars.

Groupe d'âge	Part de marché	Prêt moyen moyen
18-24	8.3%	$9,750
25-34	14.3%	$14,200

Acheteurs automobiles à faible revenu

Le CPSS se concentre sur les ménages ayant un revenu annuel entre 25 000 $ et 45 000 $, ce qui représente 27,5% de leur marché cible.

• Revenu moyen des ménages: 36 750 $
• Taux d'approbation du prêt: 62,3%
• Terme du prêt moyen: 60 mois

Les personnes à la recherche d'options de financement alternatives

La société dessert environ 18,7% des consommateurs à la recherche de solutions de financement automobile non traditionnelles, avec un potentiel de marché annuel de 975 millions de dollars.

Type de financement	Pourcentage du marché	Taille moyenne du prêt
Prêts indirects	12.4%	$16,500
Financement direct	6.3%	$13,250

Consumer Portfolio Services, Inc. (CPSS) - Modèle d'entreprise: Structure des coûts

Frais d'acquisition de prêts et de souscription

En 2024, Consumer Portfolio Services, Inc. a déclaré les frais d'acquisition et de souscription de prêts suivants:

Catégorie de dépenses	Coût annuel
Frais de rapport de crédit	$1,245,000
Salaire du personnel de souscription	$3,675,000
Logiciel d'évaluation des risques	$512,000

Maintenance des infrastructures technologiques

Les coûts d'infrastructure technologique pour CPSS comprennent:

• Entretien d'infrastructure informatique: 2 100 000 $
• Services de cloud computing: 1 450 000 $
• Systèmes de cybersécurité: 875 000 $
• Gestion de la base de données: 625 000 $

Paiements de la Commission du réseau de concessionnaire

Structure de la commission pour le réseau de concessionnaires:

Type de commission	Pourcentage	Total annuel
Commission d'origine du prêt	3.5%	$4,250,000
Bonus de performance	1.2%	$1,450,000

Service de prêt et recouvrement coûts opérationnels

Dépenses opérationnelles pour le service des prêts:

• Salaires du personnel des collections: 2 800 000 $
• Technologie des collections: 675 000 $
• Conformité juridique: 1 125 000 $
• Skip Tracing Services: 350 000 $

Frais de marketing et d'acquisition des clients

Répartition des coûts de marketing:

Canal de marketing	Dépenses annuelles
Marketing numérique	$1,250,000
Campagnes de publipostage	$875,000
Programmes de référence des partenaires	$625,000
Participation des salons commerciaux	$225,000

Structure totale des coûts annuels estimés: 22 675 000 $

Consumer Portfolio Services, Inc. (CPSS) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts des portefeuilles de prêts automobiles

Au quatrième trimestre 2023, Consumer Portfolio Services, Inc. 58,4 millions de dollars de revenus d'intérêts totaux à partir de ses portefeuilles de prêts automobiles.

Source de revenus	Montant ($)	Pourcentage du revenu des intérêts totaux
Prêts automobiles à risque	42,600,000	72.9%
Prêts automobiles sans prison	15,800,000	27.1%

Frais d'origine du prêt

Au cours de l'exercice 2023, les CPS ont généré 6,2 millions de dollars de frais de création de prêt.

• Frais de création de prêt moyen par véhicule: 389 $
• Nombre total de nouveaux prêts à l'origine: 15 940

Ventes de prêts sur le marché secondaire

CPSS a rapporté 24,7 millions de dollars de revenus des ventes de prêts sur le marché secondaire pour l'année 2023.

Catégorie de vente de prêt	Volume total des ventes ($)	Nombre de prêts vendus
Packages de prêts titrisés	18,500,000	4,230
Ventes de portefeuille directes	6,200,000	1,410

Frais de service de prêt

Les frais de service de prêt pour 2023 ont totalisé 9,3 millions de dollars.

• Frais de service moyen par prêt: 73 $
• Prêts totaux sous service: 127 400

Titrisation des portefeuilles de prêts

En 2023, CPSS a terminé les transactions de titrisation générant 45,6 millions de dollars en produit.

Transaction de titrisation	Produit total ($)	Valeur sous-jacente du pool de prêts
Package de titrisation 1	22,800,000	310,000,000
Package de titrisation 2	22,800,000	310,000,000

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Value Propositions

You're looking at how Consumer Portfolio Services, Inc. (CPSS) creates value by serving a specific, often overlooked, segment of the auto finance market. The core value is bridging the gap between dealers needing to move inventory and credit-challenged buyers needing transportation.

Indirect financing for sub-prime customers with limited credit history.

Consumer Portfolio Services, Inc. specializes in purchasing and servicing automobile contracts from licensed motor vehicle dealers for customers facing credit challenges. This is their bread and butter. As of September 30, 2025, the company was operating a $3.89 Billion Managed Portfolio. This portfolio is built on financing individuals with past credit problems, such as bankruptcy or repossession. To put this in context, subprime and deep subprime loans made up about 22.1% of all auto loan debt as of late 2025.

Enables dealers to close sales to high-risk customers.

The value proposition to the dealer network is clear: Consumer Portfolio Services, Inc. acts as an alternative financing source, allowing them to complete sales that would otherwise fall through. Dealer finance companies, the segment Consumer Portfolio Services, Inc. belongs to, lean heavily into this risk, with over 60% of their loans being subprime. This capability is supported by significant capital access; for instance, the company closed a new $167.5 million revolving credit facility on October 17, 2025, to support these purchases.

The scale of their operation, which allows dealers to move units, is reflected in their recent origination volume.

Metric	Value (as of Q3 2025)
New Contracts Purchased (Q3 2025)	$391.1 million
Total Receivables (Sept 30, 2025)	$3.760 billion
Total Auto Loans Outstanding (US Market, Q2 2025)	$1.6 trillion

Quick credit decisioning for dealers (answers within seconds).

Consumer Portfolio Services, Inc. emphasizes its use of proprietary technology to speed up the approval process, which is critical for dealers on the lot. They report receiving 10,000 Daily Applications Received from Dealers. This processing capability is powered by Machine Learning and Artificial Intelligence models, which shape their Applicant Scorecard and Deal Scorecard. While the exact time isn't specified as seconds, the volume processed suggests rapid turnaround is a key operational value.

Access to essential transportation for underserved markets.

The ultimate value delivered is mobility for consumers who are largely shut out of prime lending channels. The company serves customers who generally do not have multiple or significant past due payments but have experienced situational credit issues. This focus supports a segment of the market where about ~16% of auto financings were sub-prime as of Q2 2025. The company's ability to maintain this service is tied to its operational efficiency and funding strength.

Key operational metrics supporting this value stream include:

• Core Operating Expense as % of Managed Portfolio in Q3 2025: fell to ~4.6% from 5.4% YoY.
• Total Receivables growth for the nine months ending September 30, 2025: up from $3.330 billion the previous year.
• Delinquencies over 30 days in Q3 2025: slightly improved to 13.96%.

Finance: draft 13-week cash view by Friday.

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Customer Relationships

You're looking at how Consumer Portfolio Services, Inc. (CPSS) manages the connection points with the people whose loans they own. Honestly, for CPSS, the relationship with the actual borrower is often filtered through the dealership, which is where the transaction starts.

Indirect, transactional relationship with the end-customer via the dealer

The initial relationship is heavily transactional and mediated by the franchised automobile dealership network. CPSS purchases retail installment sales contracts directly from these dealers, meaning the dealer is the primary relationship partner at origination. This structure is key to their acquisition strategy. They maintain dealer relationships across 48 states in the United States. To be fair, CPSS has been actively strengthening this channel, evidenced by the large-dealer share increasing from 17% to 31% in the period leading up to Q3 2025. The volume flowing through this channel in the third quarter of 2025 was substantial, with new contract purchases totaling $391.1 million. Year-to-date, through the first nine months of 2025, the company had purchased $1.275 billion in new contracts.

Automated credit decisioning and application processing

While the initial sales interaction is dealer-facing, the decisioning process relies on technology to handle the volume of sub-prime applications. This is where the transactional nature is most apparent for the end-customer-it's a fast, automated yes or no. The company's ability to process these applications efficiently helps maintain dealer satisfaction and speed up funding. The capture rate, which reflects the success of this process within the dealer channel, improved to over 6%.

Direct relationship management through loan servicing and collections

Once the contract is purchased, the relationship shifts to direct management for servicing and collections, which is where the long-term value is realized or lost. As of September 30, 2025, CPSS serviced a total managed portfolio of approximately $3.9 billion. This portfolio represented about 221,000 active customers. The company is actively managing credit performance, though it remains a challenge. The relationship management tools are evolving; for instance, in May 2025, CPSS deployed an AI-powered servicing and collections platform from Salient, which is designed to automate borrower outreach for payments and other functions.

Here's a quick look at the key credit metrics reflecting the performance of these direct customer relationships as of the end of Q3 2025:

Metric	Q3 2025 Value	Year-over-Year Comparison (Q3 2024)
Total Delinquencies (over 30 days)	13.96%	Improved slightly from 14.04%
Annualized Net Charge-Offs	8.01%	Elevated from 7.32%
Fair Value Portfolio Yield (Net of Losses)	11.4%	N/A
Total Receivables	$3.760 billion	Up from $3.330 billion (Year End 2024)

Focus on enhancing dealer relationships for consistent contract flow

Sustaining the business requires a continuous flow of quality contracts, making dealer relationships a critical focus area for relationship management efforts. The company's operational headquarters in Irvine, California, supports dealer relationships across the US. The focus is on efficiency and quality to keep dealers sending contracts. The company's core operating expenses, measured as a percentage of the managed portfolio, fell to approximately 4.6% in Q3 2025, down from 5.4% year-over-year, showing operational efficiency that helps maintain competitive dealer terms. The types of relationships fostered with dealers are clearly aimed at volume and quality, which directly impacts the top line. For example, Q3 2025 revenue was $108.4 million.

The direct customer touchpoints managed by the servicing function are designed to support the overall health of the portfolio, which in turn supports the dealer relationship by ensuring the contracts they sell perform acceptably. These touchpoints include:

• Customer self-service via online account management.
• Helpline availability at (888)469-4520 for customers.
• Automated outreach for payment collection and due date adjustments.
• Handling payoff quotes and statement requests.

If onboarding takes 14+ days, churn risk rises.

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Channels

You're looking at how Consumer Portfolio Services, Inc. (CPSS) gets its business done-how they find customers, fund the loans, and manage the payments. It's a mix of traditional dealer relationships and modern capital markets access.

Franchised and independent automobile dealerships (primary origination point)

Consumer Portfolio Services, Inc. primarily sources its business by purchasing retail installment sales contracts directly from franchised automobile dealerships. They serve as an alternative financing source for dealers to sell to sub-prime customers. The volume of contracts purchased shows the channel's activity.

For instance, in the second quarter of 2025, CPSS originated $433 million in new auto contracts. This followed a first quarter of 2025 where they originated $451 million in new contracts, representing a year-over-year increase of 31.5% over Q1 2024. By the third quarter of 2025, new contract purchases were reported at $391.1 million.

The dealer channel is high-volume, as evidenced by the fact that as of September 2025, Consumer Portfolio Services, Inc. was receiving about 10,000 daily applications from dealers.

Digital application processing platform for dealers

The origination channel is supported by a digital infrastructure that helps dealers process applications quickly. This platform uses sophisticated modeling to make credit decisions. Consumer Portfolio Services, Inc. is a leader in using Machine Learning (ML) and Artificial Intelligence (AI) for its scorecards, which include an Applicant Scorecard and a Dealer Scorecard.

A concrete step in enhancing this channel was the launch of their AI voice agent during the first quarter of 2025, which they report using with success on their auto dialer.

Dealers use the Dealer Access portal to perform key channel functions:

• Review Dealer Contracts.
• Submit Credit Applications.
• View Status of pending contract packages.

Loan servicing centers for payment and collection activities

Once contracts are purchased, Consumer Portfolio Services, Inc. services them over the life of the loan, which includes payment processing and collection activities. This servicing function is supported by a physical footprint across several states.

The company maintains branches in key operational areas. The physical presence for servicing and collections is located in:

• NV (Nevada)
• CA (California)
• IL (Illinois)
• VA (Virginia)
• FL (Florida)

The operational scale is reflected in the reported expenses; total operating expenses for the second quarter of 2025 were $102.8 million.

Securitization market (funding channel for long-term capital)

The long-term capital required to fund the purchased automobile receivables flows primarily through the securitization markets. Consumer Portfolio Services, Inc. consistently accesses this channel to finance its portfolio growth. As of the end of the third quarter of 2025, total debt, which includes securitization debt, was $3.4 billion, up 11% from the prior year.

The company executed several term securitizations in 2025, reinforcing this funding channel:

Securitization Event	Date Announced (2025)	Asset-Backed Notes Issued	Receivables Pool Balance	Total Securitizations Since 2011
CPS Auto Receivables Trust 2025-A	January 22	$442.4 million	$462.5 million	54th
CPS Auto Receivables Trust 2025-C	July 28	$418.33 million	$433.50 million	56th
CPS Auto Receivables Trust 2025-D	October 23	$384.6 million	$392.46 million	57th

These transactions are critical, as they are used to fund the purchase of contracts that grow the company's finance receivables, which stood at $3.708 billion as of June 30, 2025.

The market confidence in this channel is shown by the ratings; the senior class of notes in the October 23, 2025 transaction received a triple A rating from at least two rating agencies, marking the 40th consecutive securitization to achieve this.

Finance: draft 13-week cash view by Friday.

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Customer Segments

You're looking at the core clientele for Consumer Portfolio Services, Inc. (CPSS) as of late 2025. Honestly, the segments are quite distinct, ranging from the end-borrower to the sophisticated institutional investor funding the whole operation.

Sub-prime auto loan customers (past credit problems, low income)

This group is the engine of Consumer Portfolio Services, Inc. (CPSS). They are individuals who need reliable transportation but have experienced credit challenges or have limited credit histories, meaning traditional prime lenders won't touch them. As of September 30, 2025, Consumer Portfolio Services, Inc. (CPSS) was servicing a total managed portfolio of approximately $3.9 billion, which translates to about 221,000 active customers across five states. The company's receivables portfolio stood at $3.760 billion as of that same date. Still, credit quality remains a focus, with annualized net charge-offs reported at 8.01% for the nine months ending September 30, 2025, and delinquencies greater than 30 days at 13.96% as of that date.

Here's a snapshot of the scale of the customer base and portfolio size:

Metric	Value (as of September 30, 2025)
Total Managed Portfolio	$3.9 billion
Active Customers	221,000
Total Finance Receivables	$3.760 billion
Contracts Purchased Since Inception (Through Sep 30, 2025)	Over $24.4 billion

Dealers seeking alternative financing for non-prime buyers

Consumer Portfolio Services, Inc. (CPSS) partners with these dealers to move inventory by providing financing options where the dealer might otherwise lose a sale. The company maintains dealer relationships across 48 states in the United States. This partnership is key because Consumer Portfolio Services, Inc. (CPSS) purchases the retail installment sales contracts directly from these dealer partners, securing the collateral-primarily late model used vehicles.

Investors in Asset-Backed Securities (ABS) seeking high-yield, structured debt

This segment provides the long-term funding. Consumer Portfolio Services, Inc. (CPSS) securitizes its purchased contracts, selling asset-backed notes to qualified institutional buyers. The structure is designed to appeal to investors looking for yields higher than traditional, lower-risk debt instruments. For instance, in the fourth term securitization closed on October 23, 2025, the weighted average coupon on the notes was approximately 5.72%, and the senior class notes received a triple 'A' rating from at least two rating agencies. The company closed a total of three term securitizations in 2025, including one for $442.4 million in January and another for $384.6 million in October.

You can see the structure appeals to institutional confidence through ratings:

• The transaction closed on October 23, 2025, was the 57th senior subordinate securitization since 2011.
• The senior note class in that deal received AAA ratings from S&P's and DBRS Morningstar.
• The total notes sold in the October 2025 deal amounted to $384.6 million.

Finance: draft 13-week cash view by Friday.

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Cost Structure

You're looking at the hard costs Consumer Portfolio Services, Inc. (CPSS) faces to keep the engine running and the portfolio funded as of late 2025. This structure is heavily weighted toward the cost of money and managing credit risk in the sub-prime auto space.

Interest expense on securitization debt was reported at $59.1 million for the third quarter of 2025. This figure is the main driver behind the 14% year-over-year increase in total expenses for the nine months ending September 25, which reached $304.3 million.

The cost associated with high-risk assets is clear in the credit performance metrics. Annualized net charge-offs for the third quarter of 2025 rose to 8.01% of the average portfolio, up from 7.32% year-over-year. Recovery rates on charged-off loans settled in the low 30s, specifically reported at 28.7% as of September 30, 2025, which pressures the net cost of credit losses.

Operating expenses, which include servicing and collections labor, show a mixed picture. Core operating expenses for the third quarter of 2025 were $43 million, representing a 4% decrease from the $44.6 million reported in the third quarter of 2024. However, for the first nine months of 2025, core operating expenses were flat at $134 million year-over-year. Measured as a percentage of the managed portfolio, this efficiency improved, falling to approximately 4.6% in Q3 2025 from 5.4% in Q3 2024.

The reliance on structured finance means costs of credit enhancement for securitization transactions are a key component, though not always itemized separately. The securitization trust debt balance stood at $2.916 billion as of September 30, 2025, supporting a fair value portfolio of $3.62 billion.

General and administrative expenses (G&A) and technology costs are embedded within the operating expenses. The Selling/General/Administrative Expense was reported at $83.07 million for an unspecified recent period, while the company continues to invest in its proprietary Machine Learning and Artificial Intelligence modeling framework for credit decisions.

Here's a quick look at some of the key cost and related metrics from the recent reporting periods:

Cost Metric	Period	Amount (Millions USD)
Interest Expense on Securitization Debt	Q3 2025	$59.10
Core Operating Expenses	Q3 2025	$43.0
Total Operating Expenses	Q2 2025	$102.8
Total Expenses (9 Months)	9M 2025	$304.3
Securitization Trust Debt	Sep 30, 2025	$2,916

You should keep an eye on how the interest expense scales with the total debt, which was $3.4 billion in Q3 2025, up 11% from the prior year. The cost structure is directly tied to the volume of contracts purchased, which was $391.1 million in Q3 2025.

The primary cost drivers you need to track closely include:

• Interest expense on the $3.4 billion total debt load.
• Annualized net charge-offs at 8.01% for Q3 2025.
• The cost of funding growth, as origination volumes hit $1.275 billion for the nine months.
• Recovery rates, which were only 28.7%.
• Core OpEx as a percentage of the managed portfolio, aiming to stay below 4.6%.

The company's total managed portfolio as of September 30, 2025, was approximately $3.9 billion, which is the base against which many of these costs are measured. Finance: draft 13-week cash view by Friday.

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Revenue Streams

The revenue streams for Consumer Portfolio Services, Inc. (CPSS) are fundamentally tied to its core business of purchasing and servicing automobile finance contracts for sub-prime customers. The primary engine is the yield generated by the finance receivables portfolio.

Total revenues for the nine months ended September 30, 2025, reached $325.1 million, marking a significant increase of approximately 12.8% compared to the $288.2 million reported for the same period in 2024. This top-line growth is driven by the expanding asset base.

Key components of revenue generation include:

• Interest income from the auto finance receivables portfolio, which is the largest component.
• Loan servicing fees on owned and third-party contracts.
• Fair value adjustments on the finance receivables portfolio.

To give you a clearer picture of how the revenue is composed, here is a breakdown based on the first quarter of 2025 figures, which explicitly separates the interest component from the markups:

Revenue Component	Amount (in thousands USD) - Q1 2025
Interest income	$101,933
Fair value mark to finance receivables	$3,500
Other income (includes servicing fees)	$1,441
Total Q1 2025 Revenue	$106,874 (Reported as $106.9 million)

You can see the direct impact of the portfolio's performance on revenue through the fair value markups. For instance, included in the Q1 2025 revenues was a $3.5 million fair value markup on the finance receivables portfolio, which reflects better-than-expected performance. Conversely, for the third quarter ended September 30, 2025, Consumer Portfolio Services, Inc. reported that it did not have a fair value mark for that specific quarter, though it had a $5.5 million mark in the third quarter of the prior year.

The revenue derived from servicing activities is also a defined stream. Specifically, origination and servicing fees earned from third-party receivables totaled $4.1 million for the nine months ended September 30, 2025, down from $5.5 million in the comparable 2024 period. The fair value portfolio itself is a major interest generator, yielding 11.4% net of losses as of the nine months ended September 2025.

Here are the key revenue-related metrics as of late 2025:

• Total Revenues (9 months ended Sept 30, 2025): $325.1 million.
• Fair Value Portfolio Size (as of Q3 2025): $3.6 billion.
• Fair Value Portfolio Net Yield (as of Q3 2025): 11.4%.
• Servicing Fees from Third-Party Receivables (9 months ended Sept 30, 2025): $4.1 million.
• Fair Value Markup (Q1 2025): $3.5 million.

Finance: draft 13-week cash view by Friday.