Consumer Portfolio Services Announces \$50 Million Securitization of Residual Interests

Key Points of the Announcement

• Transaction Overview:
  Consumer Portfolio Services, Inc. (Nasdaq: CPSS) has completed a \$50.0 million securitization of residual interests from previously issued securitizations.
• Structure:
  Qualified institutional buyers purchased \$50.0 million in asset-backed notes. These notes are secured by an 80% interest in a CPS majority-owned affiliate (“MOA”) that holds residual interests in four CPS securitizations issued between January 2025 and October 2025.
• Coupon Rate & Collateral:
  The notes carry a coupon rate of 8.75%. The MOA interest includes 80% of the amounts on deposit in the underlying spread accounts of each related securitization and 80% of the over-collateralization, which is the difference between the principal balance of receivables and the principal balance of notes in each securitization.
• Payment Structure:
  On each monthly payment date, noteholders will receive interest at the coupon rate. If needed, principal payments will be made to maintain a minimum collateral ratio, ensuring the safety and stability of the investment.
• Private Offering:
  The transaction was a private offering, not registered under the Securities Act of 1933 or any state securities law. All securities have been sold, and this announcement serves as a matter of record.

Details for Shareholders and Potential Price Sensitivity

• Liquidity and Capital Management:
  This transaction reflects CPS’s ability to unlock liquidity from residual interests in prior securitizations, potentially strengthening its balance sheet and funding capacity for future growth.
• Interest Rate Considerations:
  The 8.75% coupon rate signals investor confidence in the quality of CPS’s assets and securitizations, but also represents a meaningful funding cost for CPS which investors should monitor for impact on future net margins.
• Risk Management:
  The minimum collateral ratio requirement adds a layer of protection for noteholders and indirectly for the company, reducing the risk of collateral shortfall and preserving the value of residual interests.
• Strategic Impact:
  By monetizing residual interests, CPS may be able to reinvest proceeds into new originations or operations, potentially driving future earnings growth.
• Shareholder Implications:
  This form of capital raising could be positive for shareholders if proceeds are used efficiently, but the funding cost and structural complexity mean investors should monitor future disclosures for impacts on earnings and asset quality.
• Price Sensitivity:
  Given the material size (\$50 million) and the impact on liquidity and capital structure, this transaction may be considered price-sensitive. Investors should watch for follow-up statements regarding the use of proceeds and any changes in CPS’s funding or asset performance.

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is an independent specialty finance company focused on indirect automobile financing for individuals with past credit issues or limited credit histories. The company primarily purchases retail installment sales contracts from franchised dealerships secured by late-model used vehicles, and to a lesser extent, new vehicles. CPS funds these purchases mainly through securitization markets and services the contracts throughout their lifespan.

For investor inquiries, contact:
Danny Bharwani, EVP/Chief Financial Officer
949-753-6811

Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Investors are encouraged to conduct their own due diligence and consult with a financial advisor before making investment decisions. The information herein is based on the latest public disclosures as of March 4, 2026, and may be subject to change.

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