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Credit Acceptance Corp

CACC · Financials

Last earnings Oct 29, 2026

Key results

Net incomequarter

$108.2 million

net income of $108.2 million, or $9.43 per diluted share, for the three months ended September 30, 2025.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Adjusted revenuequarter

16.8 %

31, 2023 Adjusted finance charges as a percentage of adjusted average loans receivable (1) 16.8 % 17.0 % 16.7 % 16.5 % 16.4 % 17.8 % 17.6 % 17.9 % Adjusted revenue as a percentage of adjusted average capital (1) 18.6 % 18.3 % 18.0 % 18.4 % 18.2 % 19.6 % 19.8 % 20.2 % Adjusted operating expenses as a percentage of adjusted average capital (1)(2) 6.1 % 5.9 % 6.1 % 5.6 % 5.8 % 6.1 % 6.7 % 6.3 % Adjusted return on capital (1)(2) 9.4 % 9.3 % 9.2 % 9.8 % 9.6 % 10.3 % 10.1 % 10.6 % Percentage change in adjusted average capital compared to the same period in the prior year 3.7 % 11.2 % 18.3 % 19.3 % 19.4 % 17.6 % 14.6 % 11.5 % (1) Annualized.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

AI analysis

Q3 2025 · reported Oct 30, 2025

Based on: Earnings release + parent 8-K + 10-Q — transcript not held

Diluted EPS · Q3 2025
$9.43
EX-99 · Oct 30, 2025
Net income · Q3 2025
$108.2M
EX-99 · Oct 30, 2025

Headline figures

MetricQ3 2025Prior qtrYear ago
Net income$108.2 million$87.4 million—
Adjusted revenue16.8 %17.0 %—

EX-99 · Oct 30, 2025

Guidance · company-stated

No guidance located in the held release

Outlook statement

“By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast.”

Next earningsNo verified date on fileNo date is estimated or imported

Capital allocation

$107.4 million in the repurchase of approximately 230,000 shares, or 2.0% of the shares outstanding at the beginning of the quarter.

An increase in interest expense of 4.6% ($5.1 million), primarily due to an increase in our average outstanding debt balance.

Company-stated claims

Oct 29, 2026

Forward-looking · increase in provision for credit losses of 170.3% · cash_flow

“The decrease in GAAP net income for the three months ended September 30, 2026, as compared to the same period in 2025, was primarily a result of the following An increase in provision for credit losses of 170.3% ($258.9 million), due to An increase in provision for credit losses on forecast changes of $193.8 million, reflecting a decline in Consumer Loan performance and changes in forecasted net cash flow timing, primarily due to a downward forecasting adjustment applied to our forecasting methodology during the third quarter of 2026.”

EX-99 · Oct 29, 2026
General educational research only — not investment advice.Every figure is as stated in the held documents; values marked “computed from stated figures” are arithmetic on those stated figures. Guidance shown is the company’s own stated guidance. No price targets, no recommendations, no consensus estimates.

Event summary

We are pleased to report growth in adjusted EPS despite the challenging competitive landscape and difficult collection environment, said Ken Booth, CEO of Credit Acceptance

Based on: Earnings release + parent 8-K + 10-Q — transcript not held

Guidance & outlook

No guidance located in the held release

Capital allocation

$107.4 million in the repurchase of approximately 230,000 shares, or 2.0% of the shares outstanding at the beginning of the quarter.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

An increase in interest expense of 4.6% ($5.1 million), primarily due to an increase in our average outstanding debt balance.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

In addition, certain debt facilities utilize adjusted financial information for the determination of loan collateral values and to measure financial covenants.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

(4) The cost of capital includes both a cost of equity and a cost of debt.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

The formula utilized for determining the cost of equity capital is as follows (the average 30-year Treasury rate + 5%) + (1 tax rate) x (the average 30-year Treasury rate + 5% pre-tax average cost of debt rate) x average debt (average equity + average debt x tax rate) .

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Strategy & priorities

We are encouraged by the progress of our product initiatives, said Andrew Rostami, Chief Product and Marketing Officer of Credit Acceptance.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Modernized our CAPS origination system and delivery operating model, resulting in significant improvements to our technology stack and delivery speed since the start of this initiative in 2022.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital constraints.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

An increase in operating expenses of 13.3% ($17.2 million), primarily due to An increase in salaries and wages expense of 10.6% ($8.2 million), primarily due to increases in (i) the number of team members, as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers, and (ii) fringe benefits, primarily due to higher medical claims.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

We also use economic profit as a framework to evaluate business decisions and strategies, with the objective to maximize economic profit over the long term.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Risks & headwinds

As the enactment of Public Law 119-21 on July 4, 2025 made the lower federal statutory tax rate permanent, removing uncertainty on the future federal statutory income tax rate, we increased our estimated long-term effective income tax rate from 23% to 25% to reflect higher expected state and local income taxes in certain jurisdictions and lower excess tax benefits from stock-based compensation in future periods.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

We are dependent on our senior management, and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

What changed vs prior quarter

Net income — prior quarter passage and this quarter's passage are both cited.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Adjusted revenue — prior quarter passage and this quarter's passage are both cited.

SEC original ↗Credit Acceptance Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Competitors

Competitors & peers

Same GICS sector — classification peers, not declared competitors

Arthur J. Gallagher & Co. (AJG) FinancialsSun Life Financial (SLF) FinancialsRaymond James Financial (RJF) FinancialsAflac (AFL) FinancialsING Group (ING) FinancialsNorthern Trust (NTRS) FinancialsCincinnati Financial (CINF) FinancialsCoinbase (COIN) Financials
Documents

Filings

37 documents

Earnings releases

10 documents

Presentations

0 documents

No presentations for Credit Acceptance Corp are held in this edition of the library.

Transcripts

0 documents

No transcripts for Credit Acceptance Corp are held in this edition of the library.

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