Education
About Us
Working with TipRanks
Follow Us
Regional Management (RM)
NYSE:RM
Top Page
Regional Management
(NYSE:RM)
Select Model
Select Model
Rating:64Neutral
Price Target:
$39.00
▼(-0.31% Downside)
Regional Management's overall stock score reflects steady financial performance and strong earnings call results. However, technical indicators suggest a bearish trend, and high leverage remains a concern. The stock's valuation and recent corporate events provide positive aspects, contributing to a balanced outlook.
Positive Factors
Revenue Growth
Achieving record revenue and surpassing $2 billion in net receivables indicates strong market demand and effective growth strategies, supporting long-term business expansion.
Branch Expansion
Expanding branch network enhances market reach and customer accessibility, driving future growth and strengthening competitive positioning in key regions.
Asset-Backed Securitization
The securitization improves balance sheet strength and manages interest rate risk, enhancing financial stability and supporting long-term strategic initiatives.
Negative Factors
High Leverage
High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and weather economic downturns.
Profit Margin Pressure
Decreasing profit margins suggest challenges in maintaining cost efficiency, which could affect long-term profitability and competitive advantage.
Incremental Provision Expense
Higher provision expenses due to growth can impact net income, indicating potential challenges in managing credit risk and maintaining profitability.
Regional Management (RM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$391.91M
Dividend Yield2.99%
Average Volume (3M)57.85K
Price to Earnings (P/E)9.1
Beta (1Y)1.01
Revenue Growth9.63%
EPS Growth77.14%
CountryUS
Employees2,131
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.30
Shares Outstanding9,712,805
10 Day Avg. Volume72,226
30 Day Avg. Volume57,847
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.92
Price to Sales (P/S)0.56
P/FCF Ratio1.24
Enterprise Value/Market Cap5.03
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit6.32
Enterprise Value/Ebitda28.28
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Regional Management Business Overview & Revenue Model
Company DescriptionRegional Management (RM) is a financial services company that specializes in providing a range of consumer finance solutions. Operating primarily in the southeastern and southwestern United States, RM offers personal loans, retail installment contracts, and other credit-related products to individuals who may have limited access to traditional banking services. The company serves both the near-prime and subprime markets, focusing on delivering accessible and flexible financial options to its customers.
How the Company Makes MoneyRegional Management generates revenue primarily through the interest and fees associated with the loans it provides to consumers. The company earns interest income from personal loans and retail installment contracts, which typically have higher interest rates than traditional bank loans due to the risk associated with lending to near-prime and subprime borrowers. Additionally, RM collects late fees and other ancillary charges, contributing to its revenue. Significant partnerships with retail establishments allow RM to offer point-of-sale financing, creating additional revenue streams through retail loan agreements. The company's strategic focus on expanding its branch network and enhancing its online lending capabilities also plays a critical role in driving growth and profitability.
Regional Management Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive operating momentum: record revenue, double-digit portfolio and origination growth, marked improvement in expense efficiency, strong capital generation and shareholder returns, and improved credit metrics. Management acknowledged near-term headwinds from Q1 seasonality and an expected rise in net credit losses tied to tax-refund-driven behavior and portfolio mix, and noted execution risks around expansion and a developing bank partnership. On balance, the company emphasized disciplined growth, constructive guidance for 2026 (ENR +10%, net income +20%–25%), and confidence in long-term risk-adjusted returns.Q4-2025 Updates
Positive Updates
Strong Quarter and EPS Beat
Q4 net income of $12.9 million and diluted EPS of $1.30, a 33% increase year-over-year, exceeding guidance despite a larger provision for credit losses tied to portfolio growth.
Record Revenue and Full-Year Improvement
Q4 total revenue reached a record $170 million, up 10% year-over-year; full-year net income was $44.4 million, an 8% increase versus 2024 and toward the upper end of prior guidance.
Portfolio and Originations Growth
Ending net receivables grew $248 million (13% year-over-year) to a $2.1 billion loan portfolio. Q4 net receivables increased $87 million and Q4 originations were $537 million (up 13% YoY); full-year originations totaled $2.0 billion, up 19% from 2024.
Auto-Secured Portfolio Expansion
Auto secured portfolio grew 42% year-over-year in 2025 and is highlighted as an attractive, higher-return segment the company will continue to invest in.
Improving Credit Metrics
30+ day delinquency improved 20 basis points year-over-year to 7.5% as of quarter-end. Adjusted Q4 annualized net credit loss (NCL) rate improved 30 bps YoY; full-year NCL rate improved 70 bps YoY (adjusted for prior-year items).
Allowance and Provisioning Support Growth
Allowance for credit losses rate held steady at 10.3%, a 20 bps improvement YoY, with management increasing the allowance by $8.9 million in Q4 to support portfolio growth.
Operating Efficiency and Expense Discipline
Annualized operating expense ratio hit an all-time best of 12.4% in Q4 (improvement of 160 bps YoY); full-year operating expense ratio was 13.1%, a 70 bps improvement YoY, reflecting scale benefits.
Capital Generation and Shareholder Returns
Generated $74 million of capital in 2025 and returned $36 million to shareholders via dividends and buybacks. Declared 30¢ dividend for Q1; repurchased ~197,000 shares in Q4 (weighted avg price $38.07) and ~702,000 shares for the full year (avg $34.12).
Branch Expansion and Physical Footprint Growth
Opened five new branches in Q4 (California and Louisiana) and 17 de novo branches over the past 12 months; average ending net receivables per branch reached $6.1 million.
Positive 2026 Guidance
2026 guidance calls for at least 10% ending net receivables growth and net income growth of 20%–25%, with continued focus on credit performance, operating leverage, and investments in data/technology.
Negative Updates
Near-Term Seasonality and Tax-Refund Headwinds
Management expects typical Q1 seasonality exacerbated by larger tax refunds (OBBA), likely causing sequential contraction in ending net receivables (potentially larger than normal) and softer origination demand in Q1.
Anticipated Short-Term Net Credit Loss Increase
Company expects a sequential increase in net credit losses in Q1 of roughly 150 basis points due to later-stage delinquency seasonality and denominator/behavioral effects tied to elevated tax refunds.
Yield Compression and Revenue Mix Effects
Total revenue yield and interest & fee yield declined sequentially by ~60 bps and ~40 bps, respectively (Q4 yields at 32.5% and 29.3%), with expectation of further sequential yield decline in Q1 from interest accrual reversals and runoff of smaller higher-yield loans.
Higher Provisioning and Allowance Build
Management recorded a larger provision for credit losses in Q4 driven by stronger portfolio growth and increased the allowance by $8.9 million, which, while prudent, can dampen near-term reported earnings.
Execution Risks with Expansion and New Initiatives
Planned expansion (branch growth, new-state entry) and the bank partnership capability remain execution items with risks including local talent, fraud, credit risk, timing uncertainty, and no detailed rollout timeline yet.
Short-Term Pressure on Yields from Customer Paydowns
Expected consumer use of larger tax refunds to pay down debt may reduce balances and high-yield smaller loans (driving yield and revenue pressure) before longer-term demand resumes.
Company Guidance
Management guided full‑year 2026 to ending net receivables growth of at least 10% and net income growth of 20–25% year‑over‑year, while noting typical Q1 seasonality that should drive a sequential net credit loss increase of roughly 150 basis points and a possible sequential contraction in ending net receivables due to elevated tax refunds; longer term they target a portfolio NPL tolerance under 10%. Management pointed to strong 2025 results underpinning the outlook: Q4 net income was $12.9M ($1.30 diluted EPS, +33% YoY) and full‑year net income was $44.4M (+8% YoY), ending net receivables rose $248M (13% YoY) to a $2.1B loan portfolio, Q4 originations were $537M (+13% YoY) and full‑year originations $2.0B (+19% YoY), Q4 total revenue was a record $170M (+10% YoY) with total revenue yield at 32.5% and interest & fee yield at 29.3%, and Q4 interest expense was $22.6M (4.3% of average net receivables annualized). Credit and efficiency metrics the company highlighted include a 30+ day delinquency rate of 7.5% (improved 20 bps YoY), a Q4 annualized net credit loss rate improved 30 bps YoY (full‑year improvement 70 bps), an allowance for credit losses rate of 10.3% (up 20 bps YoY with a $8.9M quarter increase), an all‑time best annualized operating expense ratio of 12.4% in Q4 (13.1% for the year, down 70 bps YoY), capital generation of $74M in 2025 with $36M returned to shareholders, a Q1 dividend of $0.30 per share, and share repurchases of ~197k shares in Q4 (702k shares for the year).Regional Management Financial Statement Overview
Summary
Regional Management shows steady revenue growth and solid cash flow performance, though profitability has faced some pressure. The high leverage poses a risk, but strong cash flow metrics could help mitigate financial risks. Continued focus on improving profitability and managing debt levels will be crucial.Income Statement
Regional Management's income statement shows moderate growth and profitability. The TTM revenue growth rate of 3.13% indicates steady expansion, though slower than previous years. Gross profit margin remains strong at 87.45%, but net profit margin has slightly decreased to 6.34%, reflecting some pressure on profitability. The EBIT margin of 14.51% and EBITDA margin of 23.79% suggest reasonable operational efficiency, though both have declined compared to historical performance.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 4.26, indicating significant leverage, which poses a risk in terms of financial stability. Return on equity is moderate at 10.84%, showing decent profitability relative to equity. The equity ratio stands at 18.33%, suggesting a lower proportion of equity financing, which may limit financial flexibility.55
Neutral
Cash Flow
Cash flow analysis shows positive trends, with a free cash flow growth rate of 3.38% in the TTM period. The operating cash flow to net income ratio of 1.26 indicates strong cash generation relative to net income. The free cash flow to net income ratio is high at 98.15%, reflecting efficient cash conversion and robust cash flow management.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 630.73M | 588.50M | 551.40M | 507.19M | 428.35M | 373.91M |
| Gross Profit | 312.08M | 301.77M | 263.90M | 287.85M | 307.99M | 212.24M |
| EBITDA | 69.70M | 68.14M | 35.42M | 78.01M | 124.13M | 49.24M |
| Net Income | 41.42M | 41.23M | 15.96M | 51.22M | 88.69M | 26.73M |
Balance Sheet | ||||||
| Total Assets | 2.03B | 1.91B | 1.79B | 1.72B | 1.46B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 4.08M | 3.95M | 4.51M | 3.87M | 10.51M | 8.05M |
| Total Debt | 1.62B | 1.51B | 1.43B | 1.38B | 1.13B | 791.45M |
| Total Liabilities | 1.66B | 1.55B | 1.47B | 1.42B | 1.18B | 831.73M |
| Stockholders Equity | 371.92M | 357.08M | 322.27M | 308.63M | 282.74M | 272.12M |
Cash Flow | ||||||
| Free Cash Flow | 279.26M | 263.87M | 237.10M | 212.92M | 182.15M | 166.78M |
| Operating Cash Flow | 292.85M | 268.93M | 249.17M | 224.33M | 189.01M | 172.58M |
| Investing Cash Flow | -446.99M | -315.37M | -278.72M | -447.29M | -355.06M | -98.81M |
| Financing Cash Flow | 142.36M | 53.41M | 26.43M | 205.57M | 243.36M | -58.32M |
Regional Management Technical Analysis
Positive
39.12
Price Trends
38.30
Positive
38.91
Positive
35.51
Positive
Market Momentum
-0.07
Negative
61.21
Neutral
81.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RM, the sentiment is Positive. The current price of 39.12 is above the 20-day moving average (MA) of 37.78, above the 50-day MA of 38.30, and above the 200-day MA of 35.51, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 61.21 is Neutral, neither overbought nor oversold. The STOCH value of 81.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RM.
Regional Management Risk Analysis
Regional Management disclosed 54 risk factors in its most recent earnings report. Regional Management reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Regional Management Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $241.41M | 6.07 | 10.79% | 4.44% | 15.52% | 2.05% | |
73 Outperform | $335.26M | 1.94 | 12.53% | 10.37% | 10.48% | -30.67% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $240.94M | 8.12 | 8.59% | ― | -5.29% | ― | |
64 Neutral | $391.91M | 9.07 | 11.43% | 2.99% | 9.63% | 77.14% | |
61 Neutral | $323.40M | 6.06 | 11.02% | 15.96% | 6.38% | 41.48% | |
51 Neutral | $451.41M | -1.28 | -31.97% | ― | 13.89% | -899.50% |
* Financial Sector Average
RM
Regional Management
40.35
5.44
15.58%
MFIN
Medallion Financial
10.37
1.82
21.29%
PRAA
Pra Group
11.57
-11.69
-50.26%
YRD
Yiren Digital
3.88
-1.96
-33.56%
OPRT
Oportun Financial
5.35
-0.04
-0.74%
RWAY
Runway Growth Finance Corp
8.88
-1.51
-14.53%
Regional Management Corporate Events
Business Operations and Strategy
Regional Management Schedules Investor Presentation on Growth
Positive
Nov 17, 2025
Regional Management Corp. announced an investor presentation scheduled for November 18, 2025, highlighting its growth strategy and market positioning. The company has expanded its addressable market by over 80% since 2020, capturing a 2% share of a $95 billion market opportunity. Regional Management’s focus on customer satisfaction is evident with a net promoter score of 61 and a high percentage of repeat customers. The company continues to invest in digital channels and remote servicing options to enhance the customer experience. The presentation also outlines the company’s barbell strategy, emphasizing growth in both auto-secured loans and higher-margin small loans, aiming to balance risk and profitability.
The most recent analyst rating on (RM) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Regional Management stock, see the RM Stock Forecast page.
Executive/Board ChangesStock BuybackDividendsFinancial Disclosures
Regional Management Announces CEO Resignation and Successor
Positive
Nov 5, 2025
On October 30, 2025, Regional Management Corp. announced the resignation of Robert W. Beck as President and CEO, effective November 10, 2025, and the appointment of Lakhbir S. Lamba as his successor. Mr. Lamba brings over 25 years of experience in financial services, particularly in consumer lending and analytics. The company also reported strong third-quarter results, with a net income of $14.4 million and a record revenue of $165 million, driven by significant growth in net finance receivables and a reduction in the net credit loss rate. The Board approved a $30 million increase in the stock repurchase program and declared a quarterly cash dividend, reflecting confidence in the company’s financial health and growth strategy.
The most recent analyst rating on (RM) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Regional Management stock, see the RM Stock Forecast page.
Business Operations and StrategyPrivate Placements and Financing
Regional Management Completes $252.8M Asset-Backed Securitization
Positive
Oct 29, 2025
On October 23, 2025, Regional Management Corp. completed a $252.8 million asset-backed securitization through the issuance of four classes of fixed-rate notes, backed by a pool of consumer loans. This transaction, which received investment-grade ratings, highlights the company’s robust funding platform and strengthens its balance sheet by converting a significant portion of its debt to fixed-rate, thereby managing interest rate risk effectively. The proceeds were used to pay down existing debt and fully redeem notes from a previous securitization, demonstrating Regional Management’s strategic focus on disciplined portfolio expansion and value creation for shareholders.
The most recent analyst rating on (RM) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Regional Management stock, see the RM Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.