Regional Management Q3 revenue rises, beats estimates

Overview

• US consumer finance firm's Q3 revenue rose 8% yr/yr, beating analyst expectations

• Diluted EPS for Q3 climbed 13.4% yr/yr

• Company repurchased 265,645 shares during the quarter

Outlook

• Company expects bank partnership program to cover most branches by end of 2027

• Regional Management plans to complete rollout of new origination scorecard in Q4 2026

Result Drivers

• BANK PARTNERSHIP FEES - Co said record revenue was driven by fee income from its bank partnership originations

• PORTFOLIO GROWTH - Growth in large loans, including auto-secured loans, contributed to higher net finance receivables

• DISCIPLINED EXPENSE MANAGEMENT - Co said operating expense ratio improved 20 basis points yr/yr despite higher upfront origination costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy."

• Wall Street's median 12-month price target for Regional Management Corp is $43.00, about 30.7% above its October 27 closing price of $32.89

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)