Research Coverage on Small and Micro-Cap Companies, Zacks Small Cap Research

Zacks Small Cap Research

Zacks Small Cap Research provides research coverage on small- and micro-cap companies that are “under-followed” or “under-valued” by Wall Street. We produce high quality equity research for the institutional and retail investor on microcap firms we believe are well positioned for future growth. The Zacks SCR analyst team has an average of 20 years of experience in investment research. We conduct significant due diligence in an effort to maintain the highest quality small-cap universe.

Research Coverage on Small and Micro-Cap Companies

Equity Bottom-Up

Consumer Portfolio Services / Equity Bottom-Up

<ul><li>Key 3Q25 takeaways include: 1) CPSS's total portfolio balance grew 13% Y/Y to $3.8 billion driven by ongoing loan originations ($391 million in 3Q25), as demand trends remain generally stable 2) demand for CPSS paper remains steady, with $1.34 billion of contracts securitized thus far in 2025, up 6.3% compared to $1.26 billion through the first three quarters of 2024 3) ABS coupons remain generally stable, with consensus expectations pointing to further Fed Funds rate reductions through late 2026/early 2027 and 4) excluding MTM noise, core revenues came in right in line with our forecast, while core operating costs (ex largely uncontrollable interest expenses) were meaningfully below our estimate, as management remains focused on maximizing existing infrastructure operating efficiencies, thereby driving a sizeable core operating income beat.</li></ul>

Key 3Q25 takeaways include: 1) CPSS's total portfolio balance grew 13% Y/Y to $3.8 billion driven by ongoing loan originations ($391 million in 3Q25), as demand trends remain generally stable 2) demand for CPSS paper remains steady, with $1.34 billion of contracts securitized thus far in 2025, up 6.3% compared to $1.26 billion through the first three quarters of 2024 3) ABS coupons remain generally stable, with consensus expectations pointing to further Fed Funds rate reductions through late 2026/early 2027 and 4) excluding MTM noise, core revenues came in right in line with our forecast, while core operating costs (ex largely uncontrollable interest expenses) were meaningfully below our estimate, as management remains focused on maximizing existing infrastructure operating efficiencies, thereby driving a sizeable core operating income beat.

Consumer Portfolio Services

CPSS: 3Q25 Earnings Review