分组1 - Giverny Capital Asset Management reported a portfolio return of 0.01% in Q4 2025, underperforming the S&P 500 which returned 2.66% [1] - Year-to-date, the fund achieved a return of 12.58%, compared to 17.88% for the S&P 500 [1] - The firm faced challenges due to underweighting in large technology stocks and overweighting in smaller niche leaders, despite strong earnings growth from portfolio companies [1] 分组2 - Credit Acceptance Corporation (NASDAQ:CACC) closed at $498.24 per share on January 30, 2026, with a one-month return of 8.26% but a 12-month decline of 2.42% [2] - The market capitalization of Credit Acceptance Corporation is $5.496 billion [2] - Giverny Capital Asset Management exited its position in Credit Acceptance Corporation due to increased competition in the deep subprime lending space and concerns over its technological capabilities [3] 分组3 - Credit Acceptance Corporation was held by 29 hedge fund portfolios at the end of Q3, down from 39 in the previous quarter [4] - While Credit Acceptance Corporation is recognized for its investment potential, Giverny Capital Asset Management believes certain AI stocks present greater upside potential with less downside risk [4]

Key Takeaways CACC reported Q4 adjusted EPS of $11.35, beating estimates and rising 11.6% y/y.CACC's GAAP revenues rose 2.5% y/y to $579.9M, supported by higher finance charges.CACC saw expenses climb 33.5% and provisions rise 5% y/y, partly weighing on results.Shares of Credit Acceptance Corporation (CACC) gained 2.9% in the after-market trading following the release of the company’s better-than-expected fourth-quarter 2025 results. Adjusted earnings per share of $11.35 surpassed the Zacks Consensus Estima ...

Empowering dealers to fulfill demand through preferred origination channels, including Credit Acceptance’s proprietary system and aggregator platforms such as RouteOne and Dealertrack.Hegde said he has implemented “highly disciplined operating rhythms,” including weekly business reviews and a “quarterly game plan” intended to align functions to annual objectives. His operating principles include removing friction for both dealers and consumers, making data-driven decisions, exploring enhancements to servici ...

Core Viewpoint - Credit Acceptance (CACC) reported quarterly earnings of $11.35 per share, exceeding the Zacks Consensus Estimate of $10.3 per share, but down from $12.26 per share a year ago, indicating a +10.19% earnings surprise [1] Financial Performance - The company posted revenues of $579.9 million for the quarter ended December 2025, slightly missing the Zacks Consensus Estimate by 0.02%, compared to $565.9 million in the same quarter last year [2] - Over the last four quarters, Credit Acceptance has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Credit Acceptance shares have declined approximately 2.3% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $11.26 on revenues of $599.13 million, and for the current fiscal year, it is $44.62 on revenues of $2.4 billion [7] - The estimate revisions trend for Credit Acceptance was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Financial - Consumer Loans industry, to which Credit Acceptance belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - The company reported growth in adjusted earnings per share despite declines in loan performance and loan volume [14] - Loan unit volume improved to a decline of 9.1% this quarter, compared to a decline of 16.5% last quarter, while loan dollar volume improved to a decline of 11.3% this quarter, versus a decline of 19.4% last quarter [15] - Changes to the forecast of future net cash flows improved, with the rate of decline narrowing from $58.6 million (0.5%) in Q3 2025 to $34.2 million (0.3%) in Q4 2025 [15] Business Line Data and Key Metrics Changes - The company financed nearly 72,000 contracts for dealers and consumers, collecting $1.3 billion overall [14] - The underperformance of the 2024 vintage was primarily related to loans originated prior to the scorecard change during Q3 2024 [14] - The number of active dealers declined by 2.8% year over year, and the average unit volume per active dealer declined by 6.4% year over year [16] Market Data and Key Metrics Changes - The company's market share in the core segment of used vehicles financed by subprime consumers was 4.5% for the first two months of Q4, down from 5.4% for the same period in 2024 [16] - The loan portfolio increased by 1% year over year on an adjusted basis [16] Company Strategy and Development Direction - The company aims to generate dealer and consumer demand by deepening relationships within the dealer network and leveraging data-driven insights [9] - The strategic objectives include empowering dealers through preferred channels and delivering world-class servicing and processing [9] - The CEO emphasized a focus on removing friction for customers and enhancing servicing capabilities through artificial intelligence [8] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the impact of high inflation on subprime consumers and expressed a conservative approach to lending [19] - The CEO highlighted the importance of being customer-focused rather than competitive-focused, aiming to build solutions for large independent and franchise dealers [26] - The management believes the company is well-positioned to serve subprime customers across various economic cycles [37] Other Important Information - The company was named one of America's top 100 Most Loved Workplaces for the second consecutive year, ranking number 6 [12] - The CEO plans to layer technology and a data-informed approach on the company's strong foundation to enhance customer experience [13] Q&A Session Summary Question: How will the new CEO manage credit lending and underwriting? - The CEO plans to take a long-term and conservative approach to lending while continuously improving credit scoring models [19] Question: What is driving the increase in the provision for new originations? - The increase is attributed to the mix between the portfolio and purchase program, with the initial provision on the purchase program being significantly higher [21][22] Question: What is the competitive environment like, given the decline in market share? - The CEO noted that the competitive environment is evolving, with a focus on customer needs rather than competition [26] Question: How does the company view its leverage and capital distributions? - The company maintains its strategy regarding capital allocation and leverage, ensuring sufficient capital for new originations [33] Question: What is the perspective on affordability issues and used car prices? - The CEO believes the company is well-positioned to serve subprime customers regardless of economic cycles, focusing on a frictionless experience [37] Question: What is the outlook on prepayments in the portfolio? - There has been a decline in prepayments, which may indicate customers are staying in their vehicles longer [44]

Credit Acceptance (NasdaqGS:CACC) Q4 2025 Earnings call January 29, 2026 05:00 PM ET Company ParticipantsJay Brinkley - VPJay Martin - CFOJohn Hecht - Managing DirectorVinayak Hegde - CEOConference Call ParticipantsMoshe Orenbuch - Managing Director and Senior AnalystRobert Wildhack - Director and Equity Research AnalystOperatorGood day, everyone, and welcome to the Credit Acceptance Corporation Fourth Quarter 2025 Earnings Call. A webcast recording and transcript of today's earnings call will be made avail ...

Financial Data and Key Metrics Changes - The company reported growth in adjusted earnings per share despite declines in loan performance and loan volume [14] - Loan unit volume improved to a decline of 9.1% this quarter, compared to a decline of 16.5% last quarter, while loan dollar volume improved to a decline of 11.3% this quarter, versus a decline of 19.4% last quarter [16] - Changes to the forecast of future net cash flows improved, with the rate of decline narrowing from $58.6 million (0.5%) in Q3 2025 to $34.2 million (0.3%) in Q4 2025 [16] Business Line Data and Key Metrics Changes - The company financed nearly 72,000 contracts for dealers and consumers, collecting $1.3 billion overall [14] - The underperformance of the 2024 vintage was primarily related to loans originated prior to the scorecard change during Q3 2024 [15] - The number of active dealers declined by 2.8% year over year, and the average unit volume per active dealer declined by 6.4% year over year [17] Market Data and Key Metrics Changes - The company's market share in the core segment of used vehicles financed by subprime consumers was 4.5% for the first two months of Q4, down from 5.4% for the same period in 2024 [17] - The loan portfolio increased by 1% year over year on an adjusted basis [17] Company Strategy and Development Direction - The company aims to deepen relationships within its dealer network, support dealers in acquiring new consumers, and leverage data-driven insights [8] - The strategic objectives include generating dealer and consumer demand, empowering dealers through preferred channels, and delivering world-class servicing and processing [9] - The company is investing in artificial intelligence to enhance customer service and improve efficiency [9] Management's Comments on Operating Environment and Future Outlook - The CEO emphasized a long-term conservative approach to lending and credit scoring, focusing on improving customer experience [20] - The management believes the company is well-positioned to serve subprime customers and will continue to focus on making the experience frictionless [37] - The CEO expressed excitement about building a customer-obsessed company while maintaining a disciplined approach to capital allocation [13] Other Important Information - The company was named one of America's top 100 Most Loved Workplaces for the second consecutive year, ranking number 6 [12] - The new contract origination experience was rolled out to better meet the needs of franchise and large independent dealers [10] Q&A Session Summary Question: How will the new CEO manage credit lending and underwriting? - The CEO stated that the approach towards lending and credit scoring will be conservative and long-term focused, with ongoing improvements to credit scoring models [20] Question: What drove the increase in provision for new originations? - The CFO explained that the provision is influenced by the mix between the portfolio and purchase program, with the purchase program having a higher initial provision [22][23] Question: What is the competitive environment like, given the decline in market share? - The CEO noted that the competitive environment is evolving, and the company is focused on being customer-centric rather than competitive-centric [26] Question: How does the company view affordability issues and high used car prices? - The CEO mentioned that the company is well-positioned to serve subprime customers and will continue to take a conservative approach regardless of economic cycles [36] Question: Will there be any changes in capital returns or buyback strategies? - The CEO confirmed that the company will stay the course regarding capital allocation and buyback strategies [38]

Financial Performance - Consolidated net income for Q4 2025 was $122.0 million, or $10.99 per diluted share, showing a sequential growth from $108.2 million in Q3 2025[1] - Adjusted net income for Q4 2025 was $126.0 million, or $11.35 per diluted share, compared to $117.9 million in Q3 2025[1] - GAAP net income for Q4 2025 decreased by 19.7% to $122.0 million compared to $151.9 million in Q4 2024[28] - Adjusted net income for Q4 2025 remained flat at $126.0 million compared to Q4 2024[30] - Economic profit increased by 3.9% to $53.3 million for Q4 2025, driven by a decrease in the cost of capital[30] - Adjusted net income per diluted share rose by 11.6% to $11.35 in Q4 2025, compared to $10.17 in Q4 2024[30] - GAAP net income for the three months ended September 30, 2025, was $122.0 million, an increase from $108.2 million in the previous quarter[34] - Adjusted net income per diluted share increased to $11.35, compared to $10.28 in the previous quarter[34] - Economic profit for the quarter was $53.3 million, an increase from $43.0 million in the prior year, marking a growth of 24.3%[39] Revenue and Expenses - Total revenue for Q4 2025 was $579.9 million, an increase of 2.2% from $565.9 million in Q4 2024[59] - Adjusted revenue for the three months ended September 30, 2025, was $408.2 million, up from $405.1 million in the previous quarter[34] - Operating expenses increased by 33.5% ($40.7 million), primarily due to a 162.7% increase in general and administrative expenses, including a $35.8 million contingent loss related to legal matters[28] - Adjusted operating expenses for the quarter were $126.5 million, compared to $131.6 million in the same period last year, showing a decrease of 3.9%[39] Loan Portfolio and Collections - The average balance of the loan portfolio was $7.9 billion, with a consumer loan assignment unit volume of 71,731 and a dollar volume of $821.3 million[4] - Forecasted collection rates for Consumer Loans assigned in 2025 were 67.2%, with a slight decline from the initial forecast[7] - The forecasted net cash flows from the loan portfolio decreased by $34.2 million, or 0.3%, in Q4 2025[8] - Consumer Loan assignment volume decreased by 9.1% in unit volume and 11.3% in dollar volume during the fourth quarter of 2025 compared to the same period in 2024[23] - The forecasted collection percentage for dealer loans in 2025 is 65.7%, while for purchased loans it is 71.9%, reflecting variances of 0.2% and 0.4% respectively from initial forecasts[15] Dealer Activity - The company enrolled 1,207 new dealers, bringing the total to 9,863 active dealers during the quarter[4] - The number of active dealers decreased by 2.8% to 9,863 in the fourth quarter of 2025[24] - Consumer Loan unit volume from new active dealers increased by 8.1% to 2,954 in the fourth quarter of 2025[25] - The average volume per active dealer declined by 6.4% to 7.3 units in the fourth quarter of 2025[24] Legal and Contingent Losses - A contingent loss of $35.8 million was excluded from adjusted results due to previously disclosed legal matters[4] - The cumulative contingent losses recognized through Q4 2025 amounted to $82.6 million, with a potential cash payment of $75.5 million related to legal settlements[28] Capital and Debt - Average debt increased by 3.3% to $6,409.6 million in Q4 2025 from $6,202.5 million in Q4 2024[28] - Adjusted average capital for the three months ended September 30, 2025, was $535.0 million, compared to $539.4 million in the previous quarter[34] - Adjusted average capital for the quarter was $8,662.9 million, a slight decrease of 0.4% from $8,699.2 million in the previous quarter[39] Future Outlook - The company expects a long-term effective income tax rate increase to 25%, up from 23% previously used[36] - The company plans to host a webcast on January 29, 2026, to discuss its fourth quarter results[53] - The company emphasizes its role in providing financing solutions to consumers with poor credit histories, enabling vehicle ownership[55]

Southfield, Michigan, Jan. 29, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $122.0 million, or $10.99 per diluted share, for the three months ended December 31, 2025. Adjusted net income, a non-GAAP financial measure, for the three months ended December 31, 2025 was $126.0 million, or $11.35 per diluted share. The following table summarizes our financial results: (In ...

Southfield, Michigan, Jan. 22, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that we expect to issue a news release with our fourth quarter 2025 earnings on Thursday, January 29, 2026, after the market closes. A webcast is scheduled for Thursday, January 29, 2026, at 5:00 p.m. Eastern Time to discuss fourth quarter 2025 earnings.   Conference Call and Webcast Information:Date: Thursday, January ...