Regional Management (NYSE:RM) Releases Earnings Results, Beats Expectations By $0.04 EPS

Regional Management (NYSE:RM) announced its earnings results on Wednesday. The credit services provider reported $0.85 EPS for the quarter, beating the consensus estimate of $0.81 by $0.04, FiscalAI reports. Regional Management had a return on equity of 13.16% and a net margin of 7.40%.The business had revenue of $168.01 million during the quarter, compared to the consensus estimate of $165.69 million.

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

• Second-quarter earnings increased: Net income rose 14% year to date and diluted EPS rose 17% year over year in the first half, while second-quarter revenue increased 7% to $168 million. Operating efficiency also improved, with the expense ratio down 80 basis points to 12.4%.
• Growth fell short of expectations amid weaker direct-mail response rates, increased fintech competition and tighter underwriting in higher-risk segments. Management lowered full-year portfolio growth guidance to 5%–7% and EPS growth guidance to 10%–13%.
• Credit performance was somewhat weaker than planned, with a 12.2% net credit loss rate, up 30 basis points year over year, and 30-plus-day delinquencies of 7%. Management cited possible fraud or first-party abuse in certain segments, while also monitoring inflation and elevated fuel prices.
• The Column bank partnership is scaling faster than planned, with more than $65 million of originations and roughly 28% of total originations on a run-rate basis. Management expects the model to improve like-for-like pre-tax margins by at least 200 basis points and plans to transition nearly all states by the end of 2027.
• Regional Management is investing in longer-term growth through end-to-end digital lending, enhanced fraud controls and machine-learning underwriting, AI-enabled operations, new branch technology and expansion into Florida, its 20th state. Management expects credit losses to improve and quarterly earnings to strengthen in the second half of 2026.

Regional Management Stock Down 0.8%

Shares of Regional Management stock traded down $0.32 during trading on Wednesday, hitting $42.26. 54,556 shares of the stock traded hands, compared to its average volume of 71,846. The stock has a market cap of $389.19 million, a P/E ratio of 8.57 and a beta of 1.01. The company has a fifty day moving average price of $39.25 and a two-hundred day moving average price of $36.57. Regional Management has a twelve month low of $30.46 and a twelve month high of $46.00. The company has a debt-to-equity ratio of 4.30, a quick ratio of 59.88 and a current ratio of 59.88.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on RM shares. Citigroup restated a “market outperform” rating on shares of Regional Management in a report on Wednesday, June 17th. Citizens Jmp upgraded Regional Management from a “market perform” rating to an “outperform” rating and set a $45.00 target price on the stock in a report on Thursday, May 21st. Weiss Ratings upgraded shares of Regional Management from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, June 26th. Finally, Wall Street Zen raised shares of Regional Management from a “buy” rating to a “strong-buy” rating in a research report on Sunday, July 12th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Regional Management currently has an average rating of “Moderate Buy” and an average target price of $45.00.

Insider Buying and Selling

In other Regional Management news, CAO Steven B. Barnette sold 3,274 shares of the business’s stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $43.30, for a total value of $141,764.20. Following the completion of the sale, the chief accounting officer directly owned 13,472 shares of the company’s stock, valued at $583,337.60. The trade was a 19.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Sandra K. Johnson sold 1,000 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $36.00, for a total transaction of $36,000.00. Following the transaction, the director owned 21,933 shares in the company, valued at approximately $789,588. This trade represents a 4.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 8,874 shares of company stock worth $350,208. Insiders own 10.90% of the company’s stock.

Institutional Investors Weigh In On Regional Management

A number of large investors have recently bought and sold shares of RM. Wexford Capital LP acquired a new position in shares of Regional Management during the 3rd quarter worth about $32,000. Advisory Services Network LLC acquired a new stake in Regional Management in the 3rd quarter valued at approximately $39,000. Kestra Advisory Services LLC acquired a new stake in Regional Management in the 4th quarter valued at approximately $49,000. BNP Paribas Financial Markets increased its position in Regional Management by 45.3% in the 3rd quarter. BNP Paribas Financial Markets now owns 2,077 shares of the credit services provider’s stock worth $81,000 after buying an additional 648 shares during the period. Finally, Russell Investments Group Ltd. lifted its holdings in shares of Regional Management by 45.4% during the third quarter. Russell Investments Group Ltd. now owns 3,526 shares of the credit services provider’s stock worth $137,000 after buying an additional 1,101 shares during the last quarter. 98.89% of the stock is currently owned by institutional investors.

About Regional Management

Regional Management Corp., headquartered in Wilmington, North Carolina, is a consumer finance company specializing in installment loan products for underbanked individuals. Since its founding in 1977, the company has developed a network of field-based branches alongside a digital platform to offer credit solutions in rural and small-town markets across the United States.

The company’s core offerings include consumer installment loans for everyday purchases, auto refinancing and lease buyouts, as well as ancillary services such as insurance referrals.