Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 133

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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unexpected deterioration in the performance of securitized automobile contracts could therefore have a material adverse effect on both
our liquidity and results of operations.

In addition, from time to
time, we have also completed financings of our residual interests in other securitizations that we and our affiliates previously sponsored.
On March 20, 2025, we completed a $65 million securitization of residual interests from previously issued securitizations. In the transaction,
a qualified institutional buyer purchased $65.0 million of asset-backed notes secured by an 80% interest in a CPS affiliate that owns
the residual interests in five CPS securitizations issued from October 2023 through September 2024. The sold notes (“2025-1 Notes”),
issued by CPS Auto Securitization Trust 2025-1, consist of a single class with a coupon of 11.00%.

Receivables we originate and
service for third-parties are not pledged to our warehouse facilities or included in our securitizations.

Financial Covenants 

Certain of our securitization
transactions and our warehouse credit facilities contain various financial covenants requiring certain minimum financial ratios and results.
Such covenants include maintaining minimum levels of liquidity and net worth and not exceeding maximum leverage levels. In addition, certain
of our debt agreements other than our term securitizations contain cross-default provisions. Such cross-default provisions would allow
the respective creditors to declare a default if an event of default occurred with respect to other indebtedness of ours, but only if
such other event of default were to be accompanied by acceleration of such other indebtedness. As of March 31, 2025, we were in compliance
with all such covenants.

Results
of Operations

Comparison of Operating Results
for the three months ended March 31, 2025, with the three months ended March 31, 2024

Revenues.  During
the three months ended March 31, 2025, our revenues were $106.9 million, an increase of $15.2 million, or 16.6%, from the prior year revenue
of $91.7 million. The primary reason for the increase in revenues is the increase in interest income resulting from the increase in the
average outstanding balance of finance receivables measured at fair value. Revenues for the three months ended March 31, 2025, include
a $3.5 million mark up