Southfield, Michigan, Aug. 20, 2025 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) has been named one of PEOPLE Magazine’s 100 Companies That Care® by Great Place To Work® and PEOPLE magazine for the fourth consecutive year. Credit Acceptance was ranked 44th among the 100 companies that made the list, up 15 spots from last year. “Being named a 'Company That Cares' is an incredible honor because it reflects the heart ...

Key Takeaways CACC reported Q2 adjusted EPS of $8.56, missing estimates and down 18.6% year over year.Higher finance charges and robust loan receivable balance supported revenue growth of 8.5% to $583.8 million.Operating expenses rose 25% to $155.5 million, weighing heavily on quarterly performance.Credit Acceptance Corporation’s (CACC)  second-quarter 2025 adjusted earnings per share of $8.56 lagged the Zacks Consensus Estimate of $9.84. Also, the bottom line declined 18.6% year over year.Results were hurt ...

Credit Acceptance (CACC) came out with quarterly earnings of $8.56 per share, missing the Zacks Consensus Estimate of $9.84 per share. This compares to a loss of $3.83 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -13.01%. A quarter ago, it was expected that this auto financing company would post earnings of $10.31 per share when it actually produced earnings of $8.66, delivering a surprise of -16%.Over the last four quarter ...

Financial Data and Key Metrics Changes - The company reported a decline in forecasted net cash flows by 0.5% or $56 million during the quarter [4][48] - The loan portfolio reached a record high of $9.1 billion on an adjusted basis, up 6% from the previous Q2 [4][48] - The adjusted return on capital was reported at 8.5%, with a cost of capital of 7.4%, resulting in a spread of 110 basis points [26][70] Business Line Data and Key Metrics Changes - Loan performance declined, particularly in the 2022, 2023, and 2024 vintages, while the 2025 vintage exceeded expectations [4][48] - The company financed over 85,000 contracts for dealers and consumers during the quarter [7][51] - The unit volume was impacted by a scorecard change in Q3 2024, resulting in lower advance rates [4][48] Market Data and Key Metrics Changes - The market share in the core segment of used vehicles financed by subprime consumers decreased to 5.4% from 6.6% in the same period of 2024 [4][48] - The competitive environment has intensified, affecting volume per dealer [39][81] Company Strategy and Development Direction - The company aims to maximize intrinsic value and positively impact five key constituents: dealers, consumers, team members, investors, and communities [5][49] - Continued investment in modernizing technology architecture and loan origination systems is a priority [8][52] - The company received recognition as one of the 100 best companies to work for, indicating a focus on employee satisfaction [9][53] Management's Comments on Operating Environment and Future Outlook - Management noted that forecasting models perform well during stable economic periods but struggle during volatility, with inflation impacting loan performance [15][58] - The company expects a different mix of business to drive future performance, adjusting expectations accordingly [22][65] - The competitive environment remains challenging, with expectations of potential pullbacks from traditional credit providers [39][81] Other Important Information - The company raised over $270,000 for charitable causes, supporting community engagement [10][53] - The engineering team has made significant progress in modernizing systems, enhancing operational efficiency [8][52] Q&A Session Summary Question: Collection trends and adjusted yield - The decline in forecasted collections typically drives adjusted yield down, but new loan originations have offset this decline [12][56] Question: Loan size trends - A different mix of consumers has contributed to the decline in loan size, not necessarily indicating lower quality borrowers [18][61] Question: Economic return on capital - The business model is designed to produce acceptable returns even with loan underperformance, with current vintages still generating economic profit [26][70] Question: Share repurchases - The company repurchased 530,000 shares at an average price of $490, with plans to review additional capacity for repurchases [30][74] Question: Competitive environment outlook - The competitive landscape is challenging, with expectations of increased costs impacting consumers, but it is too early to determine long-term effects [39][81]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-20202 CREDIT ACCEPTANCE CORPORATION (Exact name of registrant as specified in its charter) Michigan 38-1999511 (State or other juri ...

Credit Acceptance 25505 West Twelve Mile Road Southfield, MI 48034-8339 (248) 353-2700 creditacceptance.com FOR IMMEDIATE RELEASE Our results and achievements for the second quarter of 2025 included the following: 1 • A decline in forecasted collection rates, which decreased forecasted net cash flows from our loan portfolio by $55.8 million, or 0.5%, and slower forecasted net cash flow timing. • A 6.8% increase in the average balance of our loan portfolio from the second quarter of 2024 to $8.0 billion, whi ...

Group 1 - Credit Acceptance Corporation is set to release its second quarter 2025 earnings on July 31, 2025, after market close [1] - A conference call and webcast will be held on the same day at 5:00 p.m. Eastern Time to discuss the earnings [2] - The webcast can be accessed live through the company's Investor Relations website, and a replay will be available afterward [3] Group 2 - Credit Acceptance Corporation provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers with varying credit histories [4] - The company's financing programs help consumers who might otherwise be unable to purchase vehicles, allowing them to improve their credit scores and access traditional financing options in the future [5]

The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Zacks Consensus Estimate This auto financing company is expected to post quarterly earnings ...

Company Recognition - Credit Acceptance Corporation has been named a 2025 Top Workplace in Financial Services for the second consecutive year, ranking 4 in the 1,000+ employee size category, an improvement of five spots from the previous year [1] - The company has also received three other workplace awards this year, including 34 on Fortune's 2025 100 Best Companies to Work For list and 2 on the 2025 Top Workplaces USA list [3] Company Culture - The CEO emphasizes the goal of creating a workplace where team members feel they can make a difference, supported by a meaningful mission and a culture that values every voice [2] - The company's PRIDE values—Positive, Respectful, Insightful, Direct, Earnest—are foundational to its culture, fostering an environment of trust and collaboration [2] Business Model - Credit Acceptance provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history, thus facilitating vehicle ownership [4] - The financing programs not only help consumers purchase vehicles but also allow them to improve their credit scores, enabling access to more traditional financing options in the future [5]

Group 1 - Credit Acceptance Corporation has extended the maturity date of its $75.0 million revolving secured warehouse facility from September 30, 2026, to September 30, 2028 [1] - The interest rate on borrowings under the facility has decreased from SOFR plus 210 basis points to SOFR plus 185 basis points [1] - The servicing fee has been reduced from 6.0% to 4.0% of collections on the underlying consumer loans [1] Group 2 - As of July 11, 2025, there was no outstanding balance under the facility [2] - Credit Acceptance Corporation provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history [3] - The financing programs are offered through a nationwide network of automobile dealers, benefiting from sales to consumers who otherwise could not obtain financing [3] Group 3 - Without these financing programs, consumers may struggle to purchase vehicles or may end up with unreliable options [4] - The company reports to the three national credit reporting agencies, allowing consumers to improve their credit scores and access more traditional financing sources [4] - Credit Acceptance Corporation is publicly traded on the Nasdaq Stock Market under the symbol CACC [4]