CONSUMER PORTFOLIO SERVICES Business Summary

Consumer Portfolio Services, Inc. (CPSS) is an independent specialty finance company primarily engaged in the purchase and servicing of retail automobile installment contracts originated by franchised and select independent dealerships. The company operates through a dual-segment model: loan origination, where it acquires contracts for new and used vehicles from a nationwide network of approximately 14,000 dealers, and servicing, where it manages a multi-billion dollar portfolio of active accounts. Revenue is predominantly generated through interest income on finance receivables, supplemented by servicing fees and gains from the securitization of loan pools into asset-backed securities. CPSS competes directly with major subprime auto lenders such as Credit Acceptance Corporation, Santander Consumer USA, Ally Financial, and Exeter Finance. Within this landscape, CPSS maintains a specialized niche as a high-tenure independent player, leveraging proprietary AI-driven credit models to provide alternative financing for underbanked borrowers with an average FICO score near 570. Founded in 1991 by Chairman and CEO Charles E. Bradley Jr., a former investment banker from Barnard and Company, the leadership team is characterized by extreme institutional longevity. Key executives include President, COO, and Chief Legal Officer Michael T. Lavin, who has overseen operations since 2001, and Executive Vice President and CFO Denesh "Danny" Bharwani, a veteran of the firm since 1997. The company’s strategic direction is heavily influenced by its largest institutional shareholder, Black Diamond Capital Management, which holds a significant stake and is represented on the board by Managing Principal Stephen H. Deckoff and President James E. Walker III. Following the resignation of long-standing director William B. Roberts in January 2026, the board remains composed of seasoned industry professionals including Daniel S. Wood and Gregory S. Washer, alongside major institutional backing from firms such as Dimensional Fund Advisors and The Vanguard Group.