Regional Management (NYSE:RM) Announces Earnings Results, Beats Estimates By $0.14 EPS

Regional Management (NYSE:RM) announced its earnings results on Wednesday. The credit services provider reported $1.61 EPS for the quarter, topping the consensus estimate of $1.47 by $0.14, FiscalAI reports. The firm had revenue of $178.78 million for the quarter, compared to the consensus estimate of $174.69 million. Regional Management had a net margin of 6.98% and a return on equity of 12.49%.

Here are the key takeaways from Regional Management’s conference call:

• Third-quarter results were solid: revenue reached a record $178.8 million, net income rose 5% year over year to $15.1 million, and the portfolio grew 8% to $2.2 billion. The company maintained its full-year outlook for 6%–9% net income growth, 10%–13% EPS growth, and 5%–7% portfolio growth.
• Credit metrics remain pressured, with a 7.5% 30-plus-day delinquency rate and a 10.9% net credit loss rate, both higher year over year. Management has tightened digital-affiliate underwriting, added fraud controls, upgraded its scorecard, and hired a new chief credit risk officer, but expects losses to rise to approximately 11.5% in the fourth quarter.
• The Column bank partnership is scaling rapidly: it accounted for just over 40% of October originations, up from roughly 28% in July, and contributed about 120 basis points to third-quarter revenue yield. Management expects the program to improve pre-tax margins by at least 200 basis points on comparable loans and generate approximately $5 million of fourth-quarter net income.
• Fourth-quarter net income is now expected to be lower than third-quarter income, reversing prior guidance, due to seasonally higher credit losses, increased partnership rollout costs, higher funding expenses, and delayed G&A spending. The cost of funds is expected to rise to approximately 4.7% as lower-cost debt amortizes and variable-rate funding becomes more expensive.
• Management is targeting annual return on equity above 18% over time, supported by higher partnership fee income, improved credit performance, portfolio growth, and technology and AI-driven efficiency. It expects faster portfolio growth and strong net income growth in 2027, subject to the macroeconomic environment.

Regional Management Price Performance

Shares of RM traded up $3.54 during trading hours on Thursday, hitting $37.20. The stock had a trading volume of 27,569 shares, compared to its average volume of 71,712. The stock has a market capitalization of $343.16 million, a price-to-earnings ratio of 7.83 and a beta of 1.02. The company has a debt-to-equity ratio of 4.41, a current ratio of 64.04 and a quick ratio of 64.04. The company’s fifty day moving average is $32.74 and its two-hundred day moving average is $35.36. Regional Management has a 52 week low of $29.89 and a 52 week high of $44.29.

Regional Management Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 16th. Stockholders of record on Wednesday, November 18th will be issued a $0.30 dividend. The ex-dividend date of this dividend is Wednesday, November 18th. This represents a $1.20 annualized dividend and a dividend yield of 3.2%. Regional Management’s dividend payout ratio is presently 25.26%.

Analysts Set New Price Targets

RM has been the subject of several research reports. Citizens Jmp reduced their target price on shares of Regional Management from $45.00 to $43.00 and set a “market outperform” rating for the company in a research note on Thursday, July 30th. Citigroup reaffirmed a “market outperform” rating on shares of Regional Management in a report on Thursday, July 30th. Weiss Ratings downgraded Regional Management from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, October 8th. Stephens raised their price objective on Regional Management from $38.50 to $40.00 and gave the stock an “overweight” rating in a research report on Thursday. Finally, Wall Street Zen raised shares of Regional Management from a “hold” rating to a “buy” rating in a research note on Monday, October 12th. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $41.50.

Key Stories Impacting Regional Management

Here are the key news stories impacting Regional Management this week:

• Positive Sentiment: Third-quarter diluted EPS was $1.61, exceeding the $1.47 analyst consensus, while revenue rose 8.0% year over year to a record $178.8 million, above the $174.69 million estimate. Net income increased 5.3% to $15.1 million. Regional Management quarterly earnings report
• Positive Sentiment: Net finance receivables grew 7.6% year over year to approximately $2.2 billion, indicating continued portfolio expansion. Management is forecasting 5% to 7% portfolio growth in 2026 and is targeting a long-term return on equity above 18%. Regional Management growth and ROE outlook
• Positive Sentiment: Regional Management declared a quarterly dividend of $0.30 per share, or $1.20 annualized, representing a yield of roughly 3.6% based on the supplied share price. The dividend is payable December 16 to shareholders of record November 18. Regional Management third-quarter dividend announcement
• Neutral Sentiment: The company also disclosed leadership changes. While management emphasized growth and profitability goals, investors may seek additional details on the transition and its effect on execution. Regional Management Q3 results and leadership changes
• Negative Sentiment: Credit costs increased: the provision for credit losses rose 9.4% to $66.2 million, and the net credit loss rate worsened to 10.9% from 10.2% a year earlier. This remains a key risk for future earnings as the loan portfolio expands. Regional Management record revenue and credit-loss report

Insider Activity

In other news, CEO Lakhbir S. Lamba acquired 6,500 shares of the firm’s stock in a transaction on Tuesday, August 11th. The shares were purchased at an average cost of $31.59 per share, with a total value of $205,335.00. Following the completion of the purchase, the chief executive officer owned 52,234 shares of the company’s stock, valued at $1,650,072.06. This represents a 14.21% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Fund L.P. Forager sold 10,401 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $32.22, for a total transaction of $335,120.22. Following the sale, the insider directly owned 919,136 shares of the company’s stock, valued at approximately $29,614,561.92. The trade was a 1.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 29,722 shares of company stock valued at $958,879 over the last three months. 10.90% of the stock is currently owned by insiders.

Regional Management Company Profile

Regional Management Corp. (NYSE: RM) is a consumer finance company that provides credit products to individuals who may have limited access to traditional bank financing. The company primarily offers small and medium-sized installment loans, including secured and unsecured personal loans, through a network of local branches and digital channels.

Its services may also include optional credit-related products, such as insurance and other ancillary offerings associated with consumer lending.