Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 43

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 43
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 automobile and automobile finance market
environments, and macroeconomic factors such as interest rates and changes in the unemployment level.

Employee costs include base
salaries, commissions and bonuses paid to employees, and certain expenses related to the accounting treatment of outstanding stock options
and are one of our most significant operating expenses. These costs (other than those relating to stock options) generally fluctuate with
the level of applications and automobile contracts purchased and serviced.

Other operating expenses consist
largely of facilities expenses, telephone and other communication services, credit services, computer services, sales and advertising
expenses, and depreciation and amortization.

Total operating expenses were
$202.9 million for the six months ended June 30, 2025, compared to $174.4 million for the prior period, an increase of $28.5 million,
or 16.3%. The increase is primarily due to increases in interest expense and a decrease in the reduction to provision for credit losses.
To a lesser extent, increases to employee costs and sales expenses also contributed to the increase in operating expenses during the period.

Employee costs were $49.4 million
during the six months ended June 30, 2025 compared to $48.1 million for the same period in the prior year. The table below summarizes
our employees by category as well as contract purchases and units in our managed portfolio as of, and for the six-month periods ended,
June 30, 2025 and 2024:

    Six Months Ended June 30, 

    2025  
    2024 

    (Dollars in millions) 
  
    Contracts purchased (dollars) 
    $884.2  
    $778.2 
  
    Contracts purchased (units) 
     40,029  
     36,124 
  
    Managed portfolio outstanding (dollars) 
    $3,708.4  
    $3,173.3 
  
    Managed portfolio outstanding (units) 
     211,246  
     187,968 

    Number of Originations staff 
     195  
     198 
  
    Number of Sales staff 
     118  
     106 
  
    Number of Servicing staff 
     552  
     532 
  
    Number of other staff 
     67  
     89 
  
    Total number of employees 
     932  
     925 

 39 

General and administrative