Regional Management (RM) AI Stock Analysis

• Market Cap: $290.46M
• Dividend Yield: 2.99%
• Average Volume (3M): 57.85K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.06
• Revenue Growth: 9.63%
• EPS Growth: 77.14%
• Country: US
• Employees: 2,131
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.30
• Shares Outstanding: 9,396,929
• 10 Day Avg. Volume: 72,226
• 30 Day Avg. Volume: 57,847
• PEG Ratio: 1.06
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 1.26
• Enterprise Value/Market Cap: 6.67
• Enterprise Value/Revenue: 3.00
• Enterprise Value/Gross Profit: 5.73
• Enterprise Value/Ebitda: 21.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 6.28
• Revenue Forecast (FY): $683.70M

• Rating: 62 Neutral
• Price Target: $36.00 ▼(-7.98% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by improving fundamentals and strong cash-flow quality, but capped by elevated and rising leverage that increases downside risk in a credit-cycle slowdown. Valuation is supportive (low P/E and solid dividend), while technicals remain weak with bearish momentum. Earnings-call guidance and operating momentum are positive, tempered by near-term credit-loss and yield headwinds.

Positive Factors

Multi-year program management partnership

A multi-year program management agreement creates a durable, fee-generating channel and an originations pipeline without requiring upfront national branch investment. The arrangement blends fee revenue with balance-sheet optionality (purchasing loans after hold periods), supporting capital-efficient growth and diversifying income over the contract term.

Consistent, high free cash flow conversion

Very strong free cash flow that closely tracks net income indicates high earnings quality and reliable internal funding. Durable cash generation supports dividends, buybacks, reinvestment in branches and technology, and provides a buffer against cyclical credit losses, enhancing financial flexibility over the medium term.

Improving operating efficiency

Sustained improvement in expense ratio demonstrates scalable operating leverage from branch and digital investments. Lower structural expense intensity improves margin resilience across cycles, enabling profitable growth as originations and receivables expand and supporting better return on incremental assets.

Negative Factors

Elevated and rising leverage

Substantially higher leverage increases vulnerability to adverse credit cycles and limits strategic flexibility. With debt/equity elevated, interest and covenant sensitivity rise, constraining capacity for reserve builds or opportunistic investments during stress and making capital returns more contingent on credit stability.

Profitability volatile and cycle-sensitive

Wide swings in margins reflect business exposure to credit performance and portfolio mix. Such volatility undermines predictable earnings and capital planning; when combined with elevated leverage, margin contractions from credit deterioration can rapidly erode equity and restrict sustained shareholder distributions.

Recurring credit-loss sensitivity from seasonality and mix

The company's product and borrower profile produce recurring seasonal loss spikes tied to tax refunds and behavior. This structural sensitivity makes portfolio growth lumpy, pressures yields during certain quarters, and requires higher allowance management, which can dampen sustainable earnings and capital generation.

Regional Management Business Overview & Revenue Model

Company Description

Regional 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 Money

Regional 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 Financial Statement Overview

Summary

Steady revenue growth with profitability recovering from a weak 2023 and strong, consistent free cash flow conversion. However, the balance sheet is a major constraint: leverage is high and rising (debt/equity ~4.65x in 2025), increasing sensitivity to credit-cycle stress despite improved ROE.

Income Statement

Revenue has grown steadily over 2020–2025 (2025 revenue up ~2% vs. 2024; stronger growth earlier), showing a durable topline. Profitability, however, has been volatile: net margin fell sharply from 2021’s peak (~21%) to low single-digits in 2023 (~3%), then recovered to ~7% in 2024–2025. Operating profitability also improved meaningfully from 2023 to 2025 (EBIT margin ~3.8% to ~12.4%), but remains well below 2021 levels—suggesting a business that can earn well in good periods but is sensitive to credit/operating conditions.

Balance Sheet

Leverage is high and has trended upward: total debt rose from ~$0.79B (2020) to ~$1.73B (2025), and debt relative to equity remains elevated (~4.65x in 2025). Equity has grown more slowly than debt, keeping the balance sheet more risk-exposed for a credit-focused business. Returns on equity have recovered from 2023 (~5%) to 2024–2025 (~11–12%), but they are still well below the 2021 peak (~31%), indicating improved performance but a continued need to manage leverage and credit quality carefully.

Cash Flow

Cash generation appears strong and consistently converts well into free cash flow: free cash flow is high each year (e.g., ~$304M in 2025) and closely tracks net income (free cash flow to net income ~0.95–0.98 across years), indicating solid earnings quality. Operating cash flow also strengthened over time (from ~$173M in 2020 to ~$309M in 2025) with solid free-cash-flow growth in 2025 (~9%). A watch item is variability in the provided operating cash flow coverage figure (notably low in 2024 vs. very high in 2025), implying some year-to-year swings in cash dynamics.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	645.57M	588.50M	551.40M	507.19M	428.35M
Gross Profit	337.93M	301.77M	263.90M	287.85M	307.99M
EBITDA	92.08M	68.14M	35.42M	78.01M	124.13M
Net Income	44.41M	41.23M	15.96M	51.22M	88.69M
Balance Sheet
Total Assets	2.18B	1.91B	1.79B	1.72B	1.46B
Cash, Cash Equivalents and Short-Term Investments	98.00M	3.95M	4.51M	3.87M	10.51M
Total Debt	1.73B	1.51B	1.43B	1.38B	1.13B
Total Liabilities	1.81B	1.55B	1.47B	1.42B	1.18B
Stockholders Equity	373.09M	357.08M	322.27M	308.63M	282.74M
Cash Flow
Free Cash Flow	304.31M	263.87M	237.10M	212.92M	182.15M
Operating Cash Flow	309.07M	268.93M	249.17M	224.33M	189.01M
Investing Cash Flow	-471.18M	-315.37M	-278.72M	-447.29M	-355.06M
Financing Cash Flow	124.47M	53.41M	26.43M	205.57M	243.36M

Regional Management Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RM, the sentiment is Negative. The current price of 39.12 is above the 20-day moving average (MA) of 32.77, above the 50-day MA of 35.43, and above the 200-day MA of 36.10, indicating a bearish trend. The MACD of -1.16 indicates Positive momentum. The RSI at 35.09 is Neutral, neither overbought nor oversold. The STOCH value of 9.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RM.

Regional Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	73 Outperform	$307.61M	2.91	12.66%	10.37%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MFIN	67 Neutral	$221.18M	5.44	10.79%	4.44%	15.52%	2.05%
OPRT	64 Neutral	$193.13M	10.05	6.66%	―	-5.29%	―
RM	62 Neutral	$290.46M	8.66	12.12%	2.99%	9.63%	77.14%
RWAY	56 Neutral	$243.54M	9.62	6.89%	15.96%	6.38%	41.48%
PRAA	53 Neutral	$657.94M	-2.27	-27.34%	―	13.89%	-899.50%

Regional Management Corporate Events

Regional Management Launches New Consumer Lending Partnership Program

On March 2, 2026, Regional Management Corp. entered into a Program Management Agreement with Column National Association to launch a new consumer lending program in select states, under which Column will originate secured and unsecured installment loans and Regional Management will act as service provider and program manager. Regional Management will handle marketing, processing, and servicing while earning related fees, will be required to maintain a robust risk and compliance management framework, and will purchase most loans after Column’s hold period, cementing a long-term, fee-based and balance-sheet-supported partnership that runs at least through March 31, 2031, subject to financial covenants and renewal terms.

The most recent analyst rating on (RM) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Regional Management stock, see the RM Stock Forecast page.

Regional Management Highlights Digital Growth and Expansion Strategy

Regional Management Corp., operating as Regional Finance, is a diversified consumer finance provider serving primarily underbanked and non-prime customers through 353 branches in 19 states and digital channels, with $2.1 billion in receivables as of December 31, 2025. The NYSE-listed lender targets borrowers with limited access to traditional credit and seeks to grow its portfolio responsibly using centralized originations, modern infrastructure, and omni-channel distribution.

In a February 2026 investor presentation tied to the SFVegas 2026 conference, management highlighted its expansion into new states since 2021, a roughly $99 billion addressable personal installment loan market, and its roughly 2% market share, underscoring significant growth runway. The company pointed to state expansion, product development, and digital initiatives as drivers of profitable portfolio growth and efficiency, while emphasizing high customer satisfaction metrics and increasing use of AI and data analytics to support stable credit quality and capital-efficient growth.

Regional Management also framed its omni-channel and digital capabilities as key levers for operating leverage and potential strategic partnerships at national scale. For stakeholders, the message reinforced a focus on responsible growth, balance-sheet strength supporting capital returns, and the use of advanced credit tools and technology to navigate credit cycles and competitive pressures in the non-prime consumer lending market.

The most recent analyst rating on (RM) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Regional Management stock, see the RM Stock Forecast page.

Regional Management posts record Q4 revenue and dividend

On February 4, 2026, Regional Management reported fourth-quarter 2025 net income of $12.9 million and record revenue of $169.7 million, fueled by 13.1% portfolio growth, a surge in auto-secured lending, and tight cost controls that delivered an all-time-low 12.4% operating expense ratio; the company also repurchased nearly 197,000 shares during the quarter and maintained ample liquidity with $511 million of unused revolver capacity. The board declared a $0.30 per-share quarterly dividend payable March 12, 2026 to shareholders of record February 19, reflecting confidence in the balance sheet after year-end net finance receivables reached $2.1 billion against $1.7 billion of debt with 84% fixed-rate funding.

The most recent analyst rating on (RM) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Regional Management stock, see the RM Stock Forecast page.