Regional Management Q4 net income up 30%

Overview

• Consumer finance firm's Q4 revenue beat analyst expectations, driven by record originations

• Net income for Q4 rose 30% yr/yr, with EPS up 33%

• Company achieved all-time best operating expense ratio of 12.4%

Outlook

• Regional Management plans to expand its auto-secured portfolio in 2026

• Company to invest in technology and analytics for sustainable growth

• Regional Management declares $0.30 dividend for first quarter 2026

Result Drivers

• PORTFOLIO GROWTH - Net finance receivables grew 13.1% year-over-year, driven by digital leads, auto-secured product demand, and new branch openings

• RECORD ORIGINATIONS - Total originations reached $537.3 mln, up 12.9% from the prior-year period, while maintaining prudent underwriting criteria

• EXPENSE DISCIPLINE - Achieved all-time best operating expense ratio of 12.4%, reflecting improvements from prior periods

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy"

• Wall Street's median 12-month price target for Regional Management Corp is $50.00, about 29.5% above its February 3 closing price of $38.62

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBwbTggWRa

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