Key 3Q24 takeaways include: 1) continued receivables and originations growth reflecting rising demand and approval rates, ongoing salesforce additions, and building securitizations activity 2) while NCOs and delinquency rates weakened a touch in the quarter, CPSS maintains strong relative performance track records across cycles, with newer paper continuing to perform significantly better and 3) earnings power set to step function higher in 2025 and beyond driven by accelerating new loan originations, expanding NIMs, as the Fed continues to cut interest rates, and rising operating leverage, as the loan book continues to scale. Despite strong outperformance since we initiated coverage in mid-August, we see further upside for stock, as the "Street" increasingly recognizes the company's differentiated business model, growth trajectory, competitive positioning, and high insider ownership.
