Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 34

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 34
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 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 June 30, 2025, we were in compliance
with all such covenants.

Results
of Operations

Comparison of Operating Results
for the three months ended June 30, 2025, with the three months ended June30, 2024

Revenues.  During
the three months ended June 30, 2025, our revenues were $109.8 million, an increase of $13.9 million, or 14.5% from the prior year revenue
of $95.9 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 June 30, 2025, include
a $3.0 million mark up to the recorded value of the finance receivables measured at fair value. The marks are estimates based on our evaluation
of the appropriate fair value and future earnings rate of existing receivables compared to recently acquired receivables and increases
or decreases in our estimates of future net losses. In the current period, our re-evaluation of the fair values of these receivables resulted
in a mark up for certain receivables and a mark down to the fair values of selected receivables. The net effect of the marks to the fair
value resulted in a net mark up of $3.0 million. There was a $5.5 million mark up to the fair value portfolio in the prior year period.

 33 

Interest income for the three
months ended June 30, 2025, increased $17.0 million, or 19.2%, to $105.4 million from $88.4 million in the prior year. The primary reason
for the increase in interest income is the 18.0% increase in the average balance of our loan portfolio over the prior year period. The
interest yield on our total loan portfolio increased from 11.3% in the prior year period to 11.4% in