Regional Management (RM) Q1 2026 earnings summary

Executive summary

• Net income reached $11.4 million and diluted EPS was $1.18, up between 62.7% and 69% year-over-year, driven by portfolio growth, revenue gains, and improved operating efficiency.

• Record first quarter revenue of $167.3 million, up 9.4% year-over-year, fueled by higher average net receivables and portfolio expansion.

• Operating expense ratio improved to an all-time best of 12.2%, down 180 basis points year-over-year, reflecting efficiency gains despite investments in technology and branch expansion.

• Strategic initiatives advanced: auto-secured lending growth, entry into Florida, bank partnership rollout, digital originations, and new branch openings.

• Continued disciplined investment in growth, technology, and digital capabilities, while maintaining strong capital generation and shareholder returns.

Financial highlights

• Net finance receivables grew to $2.1 billion, up 11.3% year-over-year; large loans increased 18.3% to $1.6 billion, small loans declined 5.9% to $512.5 million.

• Auto-secured portfolio expanded 37.7% year-over-year to $301.3 million, now 14.3% of the total portfolio.

• Return on equity improved to 12.2%, up 430 basis points year-over-year; return on assets was 2.2%.

• Total originations were $388 million, down 1.1% year-over-year due to tax refund season and disciplined underwriting.

• Revenue: $167.3 million, a Q1 record, up 9.4% year-over-year.

• G&A expenses declined 2% year-over-year; operating expense ratio improved 180 bps to 12.2%.

Outlook and guidance

• Full-year portfolio growth targeted at 10%; net income growth expected in the 20%-25% range.

• Q2 net income expected to be the low point for the year due to seasonal tax refund impacts; stronger performance anticipated in Q3 and Q4.

• Net credit losses expected to remain seasonally elevated in Q2, then improve in the second half; allowance rate expected to remain flat at 10.4%.

• Strategic initiatives expected to contribute $1.5–$4.0 million in net income benefit in the second half of 2026.

• Management remains focused on responsible portfolio growth, improving credit performance, and driving operating leverage.