Regional Management (NYSE:RM) Posts Earnings Results, Beats Estimates By $0.07 EPS

Regional Management (NYSE:RM) posted its quarterly earnings results on Wednesday. The credit services provider reported $1.30 earnings per share for the quarter, beating analysts’ consensus estimates of $1.23 by $0.07, Zacks reports. Regional Management had a return on equity of 12.19% and a net margin of 6.88%.The firm had revenue of ($165.49) million for the quarter, compared to the consensus estimate of $167.90 million.

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

• Delivered strong results and guidance: Q4 net income $12.9M ($1.30 EPS) (up 33% YoY), full‑year net income $44.4M, and management expects 2026 net income growth of 20–25% with at least 10% ENR growth.
• Portfolio momentum: ending net receivables rose 13% to $2.1B, record Q4 originations of $537M, and the auto‑secured portfolio grew 42% YoY and is a prioritized growth opportunity.
• Improving credit profile: 30+ delinquency improved 20 bps YoY to 7.5% and full‑year net credit losses improved ~70 bps, with a long‑term NCL target under 10%.
• Near‑term seasonality risk: management expects typical Q1 credit seasonality (a sequential NCL increase of roughly 150 bps annualized) and possible ENR contraction from elevated tax refunds, which could pressure early‑2026 results.
• Strategic initiatives underway: new CEO is investing in people, digital/AI, branch expansion and a bank partnership capability that could accelerate market entry and broaden products but remains in development and carries execution uncertainty.

Regional Management Trading Down 15.3%

Shares of RM stock opened at $34.18 on Friday. The firm has a fifty day simple moving average of $38.31 and a 200-day simple moving average of $38.67. The company has a market capitalization of $331.89 million, a PE ratio of 7.68 and a beta of 1.06. Regional Management has a twelve month low of $25.41 and a twelve month high of $46.00.

Regional Management Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be paid a $0.30 dividend. The ex-dividend date is Thursday, February 19th. This represents a $1.20 annualized dividend and a dividend yield of 3.5%. Regional Management’s dividend payout ratio is 29.06%.

Insider Transactions at Regional Management

In related news, major shareholder Fund L.P. Forager sold 809 shares of the business’s stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $38.62, for a total value of $31,243.58. Following the transaction, the insider owned 1,019,263 shares in the company, valued at approximately $39,363,937.06. The trade was a 0.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Michael R. Dunn sold 5,580 shares of the stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $37.46, for a total value of $209,026.80. Following the transaction, the director owned 103,109 shares of the company’s stock, valued at approximately $3,862,463.14. This trade represents a 5.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 77,475 shares of company stock valued at $3,006,040. 10.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Regional Management

Several large investors have recently added to or reduced their stakes in the stock. Basswood Capital Management L.L.C. grew its stake in shares of Regional Management by 0.4% in the second quarter. Basswood Capital Management L.L.C. now owns 1,024,310 shares of the credit services provider’s stock worth $29,920,000 after purchasing an additional 4,491 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Regional Management by 6.4% during the second quarter. Geode Capital Management LLC now owns 211,734 shares of the credit services provider’s stock valued at $6,186,000 after acquiring an additional 12,740 shares during the period. Goldman Sachs Group Inc. raised its holdings in Regional Management by 45.5% during the first quarter. Goldman Sachs Group Inc. now owns 194,374 shares of the credit services provider’s stock worth $5,853,000 after purchasing an additional 60,744 shares in the last quarter. Bridgeway Capital Management LLC lifted its position in Regional Management by 4.2% in the second quarter. Bridgeway Capital Management LLC now owns 107,661 shares of the credit services provider’s stock worth $3,145,000 after purchasing an additional 4,310 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its position in Regional Management by 33.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 107,182 shares of the credit services provider’s stock worth $4,176,000 after purchasing an additional 26,757 shares during the period. 98.89% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

RM has been the subject of several research reports. Wall Street Zen raised Regional Management from a “buy” rating to a “strong-buy” rating in a report on Saturday, January 3rd. Zacks Research upgraded Regional Management from a “strong sell” rating to a “hold” rating in a research report on Monday, January 5th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Regional Management in a research note on Monday, December 29th. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $30.00.

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.