Executive Summary

Q1 2025 delivered net income of $7.0M and diluted EPS of $0.70, consistent with company guidance; total revenue was $152.967M, up 6.0% year over year; originations hit a record $392.1M (+20.2% YoY) .
Credit metrics improved sequentially: 30+ day contractual delinquency fell to 7.1% (-60 bps QoQ) and the net credit loss rate was 12.4% (better than internal expectations after adjusting for prior-year loan sale and mix) .
Management reaffirmed minimum 10% portfolio growth for 2025 and guided Q2 2025 net income to ~$7.0–$7.3M, with ENR growth of ~$55–$60M and revenue yield rising ~20 bps sequentially; G&A ~$65.5M, interest expense ~$21.0M, tax rate ~24.5% .
Consensus vs actual: EPS beat ($0.70 vs $0.682*) and revenue slightly missed ($152.967M vs $153.587M*), a modest, mixed print likely framed positively by credit improvement and growth commentary. Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

Record first-quarter originations of $392.1M (+20.2% YoY), with branch (+17.2%), direct mail (+17.8%), and digital (+46.1%) channels contributing; management highlighted strong performance from newly opened branches .
Credit performance improved sequentially: 30+ DQ at 7.1% (-60 bps QoQ), front-book delinquency 6.8% vs 10.0% in back-book; NCL rate of 12.4% better than comparable prior-year when adjusted for loan sale .
Funding strengthened via a $265M ABS at 5.3% WAC; fixed-rate debt reached ~90% with WAC ~4.4% and available liquidity $129.3M; unused capacity $641M—supporting planned growth .

Quotes:

“Our new branches…are performing very well and growing rapidly…demonstrating the power of our branch-based model” — CEO Robert Beck .
“Our first quarter net credit loss rate of 12.4% was better than our expectations…” — CEO Robert Beck .

What Went Wrong

Total revenue yield fell 100 bps sequentially (seasonality: higher revenue reversals from net credit losses, lower refinancing, and prior-quarter hurricane-related insurance reserve release); operating expense ratio rose 30 bps YoY to 14.0% (timing of $1.7M incentives) .
Provision for credit losses increased 24.9% YoY to $57.992M, driven by portfolio growth; NCL rate higher YoY at 12.4% (unadjusted), reflecting mix shift to higher-margin small loans .
Revenue slightly missed consensus ($152.967M vs $153.587M*), and G&A rose to $66.043M (+$5.6M YoY) due to growth investments and incentive timing . Values retrieved from S&P Global.*

Financial Results

Results vs Estimates (Q1 2025)

Metric	Q1 2025 Actual	Q1 2025 Consensus	Surprise
Revenue ($USD Millions)	$152.967	$153.587*	-$0.620M (miss)*
Diluted EPS ($USD)	$0.70	$0.682*	$0.018 (beat)*

Values retrieved from S&P Global.*

Sequential Trend (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Total Revenue ($USD Millions)	$146.338	$154.832	$152.967
Diluted EPS ($USD)	$0.76	$0.98	$0.70
Total Revenue Yield (%)	32.6	33.4	32.4
Interest & Fee Yield (%)	29.9	29.8	28.9
Net Credit Loss Rate (%)	10.6	10.8	12.4
Operating Expense Ratio (%)	13.9	14.0	14.0
Provision for Credit Losses ($USD Millions)	$54.349	$57.626	$57.992

YoY Comparison (Q1 2024 → Q1 2025)

Metric	Q1 2024	Q1 2025	YoY Change
Total Revenue ($USD Millions)	$144.308	$152.967	+$8.659M (+6.0%)
Diluted EPS ($USD)	$1.56	$0.70	-$0.86 (-55.1%)
Total Revenue Yield (%)	32.8	32.4	-40 bps
Net Credit Loss Rate (%)	10.6	12.4	+180 bps (unadjusted)
Operating Expense Ratio (%)	13.7	14.0	+30 bps

Note: Q1 2024 EPS benefited from a Q4 2023 loan sale; management provides adjusted comparisons for yields and credit .

Segment Breakdown (Net Finance Receivables)

Segment	Q1 2024 ($USD MM)	Q4 2024 ($USD MM)	Q1 2025 ($USD MM)
Large Loans	$1,250.647	$1,336.780	$1,345.825
Small Loans	$490.830	$554.686	$543.824
Retail Loans	$2.809	$1.069	$0.702
Total	$1,744.286	$1,892.535	$1,890.351

KPIs and Credit/Operational Metrics

KPI	Q1 2024	Q4 2024	Q1 2025
Originations ($USD Millions)	$326.355	$475.900	$392.120
30+ Day Contractual Delinquency (%)	7.1	7.7	7.1
Allowance for Credit Losses ($USD Millions)	$187.100	$199.500	$199.100
G&A ($USD Millions)	$60.448	$64.646	$66.043
Branches (count)	343	344	353
ENR per Branch ($USD Thousands)	$5,085	$5,502	$5,355

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Portfolio Growth (ENR)	FY 2025	Minimum 10% growth (committed)	Minimum 10% growth reaffirmed	Maintained
Net Income	FY 2025	“Meaningful improvement” in 2025	Back-end weighted; reaffirmed meaningful improvement (macro caveats)	Maintained
Net Income ($)	Q2 2025	n/a	~$7.0–$7.3M	New
ENR Growth ($)	Q2 2025	n/a	~$55–$60M	New
ANR Growth ($)	Q2 2025	n/a	~$15M	New
Total Revenue Yield (seq change)	Q2 2025	n/a	~+20 bps QoQ	New
Net Credit Losses / Rate	Q2 2025	n/a	~$57.0M / ~12.0%	New
Allowance for Credit Loss Rate	Q2 2025	n/a	~10.3% (release hurricane reserves)	New
G&A Expense ($)	Q2 2025	n/a	~$65.5M	New
Interest Expense ($)	Q2 2025	n/a	~$21.0M	New
Effective Tax Rate (%)	Q2 2025	n/a	~24.5%	New
Dividend ($/share)	Q2 2025	n/a	$0.30 payable 6/11/25; record 5/21/25	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Branch Expansion & Growth	Portfolio grew $46M seq; operating expense ratio improved; disciplined growth	Record ENR; +$73M seq growth; reiterated 2025 growth and net income goals	15 branches since Sep; strong performance; revenue and G&A contribution quantified	Accelerating branch-driven growth
Credit Performance	NCL 10.6%; 30+ DQ 6.9%; hurricane impacts reserved	NCL 10.8%; adjusted improvement vs prior year	NCL 12.4% (seasonal/mix); 30+ DQ 7.1%; front vs back book delineated	Mixed sequential (seasonal), structurally improving front book
Funding/Liquidity	Fixed-rate 82%; liquidity $154.7M	ABS at 5.34%; fixed-rate 79%; liquidity $136.9M	ABS $265M at 5.3%; fixed-rate ~90%; liquidity $129.3M; capacity $641M	Strong, improving fixed-rate mix
Macro/Tariffs	Hurricane impacts; assistance programs	Expect normalization in 2025; macro supportive	Monitoring tariffs; tightened credit box pre-dates potential downturn	Vigilant, conservative underwriting
Seasonality/Tax Refunds	Hurricane claims increased revenue drag	Revenue yield up 80 bps seq	Revenue yield down 100 bps seq; expected +20 bps in Q2; tax season payments aid delinquency	Normal seasonal pattern
Regulatory	—	—	CFPB exam closed without adverse finding	Positive regulatory development

Management Commentary

“We delivered $7.0 million of net income and 70 cents of diluted EPS…with record first quarter revenue of $153 million…record first quarter originations while maintaining our tightened credit box” — Robert Beck, CEO .
“Our front book now makes up 92% of our total portfolio…30+ day contractual delinquency rate of 6.8%, compared to 10.0% in the back book” — Robert Beck .
“We closed a $265 million asset-backed securitization…Class A notes…‘AAA’…used proceeds to pay down variable rate debt” — 8-K liquidity section .
“Operating expense ratio was 10 bps better YoY after adjusting for incentive timing, despite adding 17 new branches” — 8-K highlights .

Q&A Highlights

Net interest margin outlook: Cost of funds expected to rise as older fixed-rate funding matures; pricing/mix (barbell strategy) to balance yields and credit .
Consumer behavior: Strong tax season payment rates, especially paydowns on higher-rate small loans; macro watch on tariffs and inflation; readiness to tighten further if needed .
2025 trajectory: Reaffirmed minimum 10% ENR growth and “meaningful” net income improvement; second half expected to benefit from lower NCLs and larger portfolio .
Capital generation: Q1 capital generation $9.9M; multi-year track record since 2020 of $339M generated and $161M returned to shareholders .
Expenses: Q2 G&A guided ~$65.5M; prudent cost control with focus on growth investments; branch cohort delivering positive returns .

Estimates Context

Q1 2025: RM beat EPS ($0.70 vs $0.682*) and slightly missed revenue ($152.967M vs $153.587M*). EPS estimates from 6 analysts; revenue from 5 analysts.*
Q2 2025: Consensus EPS $0.716* and revenue $155.215M* sit beside company guidance calling for net income of ~$7.0–$7.3M, modest ENR growth, and ~+20 bps sequential revenue yield .
Values retrieved from S&P Global.*

Key Takeaways for Investors

Growth runway intact: Branch expansion and barbell strategy (auto-secured + small loans) underpin ENR and revenue growth without opening the credit box .
Credit normalization: Front book (92% of portfolio) exhibits lower delinquency and improving loss curves; expect seasonal credit tailwinds in 2H 2025 .
Funding resilience: ABS execution at 5.3% and fixed-rate debt ~90% mitigate rate risk; ample unused capacity ($641M) to fund growth .
Near-term setup: Q2 guided to ~flat EPS but improving revenue yield and ENR; watch G&A discipline vs growth investments and interest expense trajectory .
Estimate recalibration: Modest revenue miss vs consensus, but stronger credit and reaffirmed growth likely support upward bias to 2H expectations.*
Regulatory clarity: CFPB exam closed without adverse findings reduces headline risk .
Trading lens: Stock narrative should focus on credit improvement trajectory, branch-driven ENR growth, and funding mix durability; monitor macro/tariff developments and cost of funds drift .

Appendix: Additional Data Points

Dividend: $0.30 per share declared for Q2 2025, payable June 11, 2025; record May 21, 2025 .
Share repurchase: 186,990 shares at $34.56 avg in Q1 2025 under $30M program .
Same-store ENR growth: 6.5% in Q1 2025 vs 3.4% in Q1 2024 .
Auto-secured receivables: $218.7M (+37.0% YoY), 11.6% of total portfolio .

Note: Where marked with an asterisk (*), values are consensus estimates or aggregated figures retrieved from S&P Global.

Regional Management Corp. (RM)·Q1 2025 Earnings Summary