EarningsQ3 2026 Earnings Report
DE:46F Q3 2026 EPS Results
Actual EPS€1.44
Consensus EPS€1.31
Beat/MissBeat by +€0.12
One Year Ago EPS€1.27
DE:46F Q3 2026 Revenue Results
Actual Revenue€159.54M
Expected Revenue€155.89M
Beat/MissBeat by +€3.65M
YoY Revenue Growth+8.03%
Earnings Announcement Details
QuarterQ3 2026
Date10/28/2026
TimeAfter Close
Conference CallWednesday, October 28, 2026
DE:46F Upcoming Earnings
Regional Management's next earnings date is estimated for February 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:46F Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive, with record quarterly revenue, earnings growth, portfolio expansion, improved sequential credit losses, maintained full-year guidance, and meaningful progress on the bank partnership and technology initiatives. However, credit losses and delinquencies remained elevated, small and digital originations declined, and fourth-quarter net income is now expected to fall below the third quarter because of seasonal credit losses, higher funding costs, partnership implementation costs, and shifted G&A expenses.Company Guidance
Strong Third-Quarter Earnings and Record Revenue
Third-quarter net income was $15.1 million, or $1.61 of diluted EPS, up 5% and 13% year-over-year, respectively. Quarterly revenue reached a record $178.8 million, up 8% year-over-year, driven by portfolio growth and fee income from the bank partnership.
Portfolio Growth and Higher Returns
Net finance receivables grew by $62 million during the quarter to $2.2 billion. The portfolio increased 7.6% year-over-year, or $157 million, and the company reported 8% year-over-year portfolio growth and a 16% annualized return on equity.
Improved Operating Expense Ratio
The annualized operating expense ratio improved by 20 basis points year-over-year to 12.6%, despite approximately 40 basis points of upfront origination costs associated with the bank partnership rollout.
Auto Secured Portfolio Expansion
The auto secured portfolio, described as the company's best credit quality product, grew 25% year-over-year, represented nearly 16% of the total portfolio, and had a 30-plus day delinquency rate of just 2.2%.
Large Loan Growth and Branch Productivity
Large loan originations grew 12% year-over-year. Large loans represented 79% of the portfolio versus 74% a year ago. Net finance receivables per branch increased 6% year-over-year to $6.2 million, while same-store receivables grew 6.7%.
Sequential Improvement in Net Credit Losses
The net credit loss rate improved 130 basis points sequentially to 10.9% in the third quarter as losses seasonally declined.
Credit Tightening and Fraud-Control Actions
The company exited or tightened score cutoffs in its highest-risk digital affiliate segments and eliminated other high-risk cohorts. Management said these actions accounted for roughly half of the 70 basis point year-over-year increase in net credit losses. Enhanced fraud controls, including third-party fraud scores, step-up identity verification, and a central fraud operations team, were implemented across all channels.
Early Improvement in July Originations
Early first-payment-default results on July originations were better than a year ago in every channel, reflecting the new fraud controls and earlier credit tightening. Management said the loans still need to mature for a clearer view.
New Credit Decisioning Model
The proprietary origination scorecard is live in the majority of states and is expected to be fully rolled out in the fourth quarter. Management said it provides stronger risk ranking and sharper separation between performing and nonperforming accounts, with the greatest lift among new borrowers and in the digital channel.
Bank Partnership Expansion and Economics
The Column bank partnership expanded to North Carolina, Louisiana, and Missouri. In October, just over 40% of total originations came through the partnership, up from roughly 28% on a run-rate basis when discussed in July. Partnership fee income added approximately 120 basis points to total revenue yield, and management projects pretax margin improvement of at least 200 basis points compared with similar loans originated through state-licensed operations.
Bank Partnership Contribution to Earnings
Strategic initiatives, principally the bank partnership, are expected to contribute approximately $5 million of net income in the fourth quarter compared with approximately $3 million in the third quarter. Management expects substantially all of the branch network to operate under the partnership by the end of 2027.
Technology and Origination Platform Progress
The new front-end loan origination platform is expected to be live in all branches during the quarter. Management said it enables significantly faster credit decisions, has been well received by branch teams, and provides a scalable foundation to improve sales, customer experience, and operating efficiency.
Collections and Digital Lending Investments
The company centralized late-stage accounts, enhanced contact data, introduced branded calling, and deployed AI-enabled tools intended to improve customer engagement, cure rates, and collection efficiency. It also launched end-to-end digital lending in July and is scaling the channel with discipline.
Consumer Resilience and Responsible Growth Opportunity
Management characterized consumers as generally resilient and said consumer spending remains strong. The company said there is plenty of lending demand and that it is being diligent about the loans it originates, while using risk-based pricing and affordability measures to determine loan size and yield.
Capital Return and Liquidity
During the quarter, the company repurchased approximately 266,000 shares at a weighted average price of $37.64 per share, or $10 million in total. Year to date, it generated $50 million of capital and returned $31 million to shareholders through dividends and share repurchases. The Board declared a fourth-quarter dividend of $0.30 per share. The company ended the quarter with $324 million of unused capacity and $104 million of available liquidity.
Full-Year Guidance Maintained
Management maintained its full-year outlook for net income growth of 6% to 9%, diluted EPS growth of 10% to 13%, and portfolio growth of 5% to 7%.
Long-Term Return-on-Equity Target
The company is targeting annual return on equity above 18% over time, supported by higher bank partnership fee income, lower net credit losses, portfolio growth, and greater scale and efficiency from investments in technology, data, and AI.
Expected 2027 Strategic Momentum
Management expects 2027 to be a strong year, with faster portfolio growth, expansion of the bank partnership to substantially all branches, continued credit progress, and strong net income growth compared with 2026, subject to the macroeconomic environment.
DE:46F Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed