--- title: "Regional | 8-K: FY2025 Q4 Revenue: USD 169.7 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/274873439.md" datetime: "2026-02-04T21:45:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/274873439.md) - [en](https://longbridge.com/en/news/274873439.md) - [zh-HK](https://longbridge.com/zh-HK/news/274873439.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/274873439.md) | [繁體中文](https://longbridge.com/zh-HK/news/274873439.md) # Regional | 8-K: FY2025 Q4 Revenue: USD 169.7 M Revenue: As of FY2025 Q4, the actual value is USD 169.7 M. EPS: As of FY2025 Q4, the actual value is USD 1.3, beating the estimate of USD 1.285. EBIT: As of FY2025 Q4, the actual value is USD 38.8 M. #### Outlook / Guidance Regional Management Corp. enters 2026 from a position of strength, with confidence in its ability to continue creating long-term value for customers, communities, and shareholders . The company is encouraged by the strength of its platform and opportunities ahead, including rapid growth in its auto-secured portfolio and thoughtful expansion into new markets . Investments are being made in people, technology, data and analytics, and credit risk management to drive sustainable, profitable growth and higher return on equity . #### Revenue - Total revenue for the fourth quarter of 2025 was $169.7 million, an increase of $14.9 million or 9.6% from the prior-year period . This marked a record total revenue for the quarter . - Interest and fee income was $153.0 million, up 10.7% year-over-year . - Insurance income, net, was $11.4 million, down 3.4% year-over-year . - Other income was $5.3 million, up 10.3% year-over-year . - Total revenue for the full year 2025 was $645.6 million, up 9.7% year-over-year . - The total revenue yield was down 90 basis points year-over-year, primarily due to a mix shift to larger loans . #### Net Income - Net income for the fourth quarter of 2025 was $12.9 million, up 30.2% year-over-year . - Net income for the full year 2025 was $44.4 million, up 7.7% year-over-year . #### Net Finance Receivables - As of December 31, 2025, net finance receivables totaled $2.1 billion, an improvement of $247.7 million or 13.1% from the prior-year period . This represents 13.1% year-over-year portfolio growth . - Ending net finance receivables (ENR) saw a sequential growth of $87 million and a year-over-year growth of $248 million, or 13.1% . - Large loan net finance receivables were $1.6 billion, an increase of $256.4 million or 19.2% from the prior-year period, representing 74.4% of the total loan portfolio (compared to 70.6% in the prior-year period) . - Auto-secured net finance receivables were $294.3 million, an increase of $87.7 million or 42.4% from the prior-year period, representing 13.7% of the total loan portfolio (compared to 10.9% in the prior-year period) . The auto-secured portfolio grew to $294 million, an increase of $88 million or 42.4% year-over-year . - Small loan net finance receivables were $547.0 million, a decrease of $8.7 million or 1.6% from the prior-year period, representing 25.6% of the total loan portfolio (compared to 29.4% in the prior-year period) . - Net finance receivables with annual percentage rates (APRs) above 36% increased by 9.3% year-over-year, representing 17.9% of the portfolio (compared to 18.5% in the prior-year period) . The portfolio of loans with an APR greater than 36% grew $32.5 million, or 9.3%, and represented 17.9% of the total portfolio . - ENR per branch increased by 10.2% year-over-year to $6.1 million . - The 17 new branches opened since the fourth quarter of 2024 generated $52.3 million, or 21.1%, of the $247.7 million year-over-year portfolio growth . - Same store receivables grew 10.9% year-over-year . #### Originations - Total originations for the fourth quarter of 2025 were a record $537.3 million, up 12.9% from the prior-year period . Origination volume was $537 million, up $61 million or 12.9% year-over-year . - Large loans originations were $364.2 million, up 29.3% year-over-year . - Small loans originations were $173.1 million, down 10.9% year-over-year . - Total originations for the full year 2025 were $1,962.0 million, up 18.6% year-over-year . Originations increased by 18.6% year-over-year, totaling $2.0 billion . - Digitally sourced origination volume increased year-over-year, representing 31.5% of total new borrower volume . Large loans accounted for 78.3% of new borrower digitally sourced loans booked in the fourth quarter of 2025 . #### Provision for Credit Losses - Provision for credit losses for the fourth quarter of 2025 was $66.4 million, an increase of $8.8 million or 15.2% from the prior-year period, driven by portfolio growth . - Provision for credit losses for the full year 2025 was $245.4 million, up 15.7% year-over-year . #### Net Credit Loss Rate - The net credit loss rate for the fourth quarter of 2025 was 11.0% (annualized), a 20 basis point increase compared to 10.8% in the prior-year period . After adjusting for the fourth quarter of 2024 hurricane impact, it improved by 30 basis points year-over-year . - The net credit loss rate for the full year 2025 was 11.4% (annualized), compared to 11.2% in the prior-year period . #### Allowance for Credit Losses (ACL) - As of December 31, 2025, the allowance for credit losses was $220.9 million, or 10.3% of net finance receivables, which was stable sequentially and an improvement compared to 10.5% in the prior-year period . The ACL rate remained flat sequentially at 10.3%, compared to 10.5% in the prior year which included an estimated 10 basis points of hurricane impact . - The ACL increased by $8.9 million in the fourth quarter of 2025 due to portfolio growth . - 30+ days past due loans of $161.2 million compared favorably to the ACL of $220.9 million as of the fourth quarter of 2025 . #### General and Administrative Expenses (G&A) - G&A expenses for the fourth quarter of 2025 were $64.5 million, an improvement of $0.1 million from the prior-year period . - G&A expenses for the full year 2025 were $257.6 million, up 4.0% year-over-year . #### Operating Expense Ratio - The operating expense ratio for the fourth quarter of 2025 was 12.4% (annualized), an all-time best, reflecting improvements of 40 basis points and 160 basis points from 12.8% and 14.0% in the prior-quarter and prior-year periods, respectively . This 12.4% ratio represents a 160 basis point year-over-year improvement . - The operating expense ratio for the full year 2025 was 13.1%, showing a 70 basis point improvement year-over-year . #### Interest Expense - Interest expense for the fourth quarter of 2025 was $22.6 million, an increase of $2.8 million or 14.3% year-over-year . - Interest expense for the full year 2025 was $84.8 million, up 13.8% year-over-year . #### Delinquency - As of December 31, 2025, 30+ day contractual delinquencies totaled $161.2 million, or 7.5% of net finance receivables, a 50 basis point increase sequentially due to seasonality and a 20 basis point improvement from the prior-year period . The 30+ days delinquent percentage improved by 20 basis points year-over-year to 7.5% . - Large loans delinquencies were $99.9 million or 6.3% . - Small loans delinquencies were $61.3 million or 11.2% . #### Liquidity and Capital Resources - As of December 31, 2025, Regional Management Corp. had net finance receivables of $2.1 billion and total debt of $1.7 billion . - The company had unused capacity to fund future growth on its revolving credit facilities of $511 million, or 65.6%, and available liquidity of $149.2 million . Available liquidity was $149 million . - The funded debt-to-equity ratio was 4.4 to 1.0, and the stockholders’ equity ratio was 17.7% . - Fixed-rate debt constituted 84% of total debt with a weighted average cost (WAC) of 4.7% . - The fourth quarter of 2025 securitization WAC was 4.8%, a 50 basis point improvement from the first quarter of 2025 securitization WAC of 5.3% . #### Stock Repurchase - In the fourth quarter of 2025, Regional Management Corp. repurchased 196,999 shares of common stock at a weighted-average price of $38.07 per share . - Regional Management Corp. increased its share repurchase program from $30 million to $60 million . - The company repurchased $24 million, or 702 thousand shares, of its common stock at a weighted-average price of $34.12 per share for the fiscal year . #### Dividend - On February 4, 2026, Regional Management Corp.’s Board of Directors declared a quarterly cash dividend of $0.30 per share of outstanding common stock, payable on March 12, 2026 . A dividend of $0.30 per common share was declared for the first quarter of 2026 . - Dividends of $1.20 per common share were distributed for the fiscal year 2025 . - The dividend yield was 3.1% for the fiscal year 2025 and the fourth quarter of 2025 . #### Capital Management - Since 2020, Regional Management Corp. has seen a total capital increase of $215 million and returned $188 million to stockholders . - Total capital generated was $403 million, representing a 12.8% Compound Annual Growth Rate (CAGR) and a 21.4% ratio of capital generation to average stockholders’ equity . - Year-to-date capital return was $36 million, and the increase in stockholders’ equity was $16 million . - Year-to-date capital generation amounted to $74 million . #### Other Operational Metrics - Customer accounts reached 590,800, an increase of 2.7% year-over-year in the fourth quarter of 2025 . - 17 new branches were opened in 2025 . - Return on Equity (ROE) was 13.8%, up 270 basis points year-over-year, and Return on Assets (ROA) was 2.5%, up 40 basis points year-over-year for the fourth quarter of 2025 . - The cost of funds increased 10 basis points year-over-year due to increased average debt and the maturation of lower-cost, fixed-rate debt . ### Related Stocks - [Regional Management Corp. 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