Financial Performance - Consolidated net income for Q1 2025 was $106.3 million, or $8.66 per diluted share, compared to $151.9 million, or $12.26 per diluted share in Q4 2024[2]. - Adjusted net income for Q1 2025 was $114.8 million, or $9.35 per diluted share, down from $126.0 million, or $10.17 per diluted share in Q4 2024[2]. - GAAP net income for the three months ended March 31, 2025, rose by 65.3% to $106.3 million, driven by a 12.3% increase in finance charges[27]. - Adjusted net income for the three months ended March 31, 2025, was $106.3 million, compared to $151.9 million for the previous quarter, reflecting a decrease of 30%[33]. - Adjusted net income for the same period was $114.8 million, down from $126.0 million in the prior quarter, a decline of 9.5%[37]. - Economic profit decreased by 31.3% to $35.3 million in Q1 2025, down from $51.4 million in Q1 2024[29]. - Economic profit for the quarter was $35.3 million, down from $51.3 million in the previous quarter, a decline of 31.1%[37]. - Basic net income per share rose to $8.79 in Q1 2025, compared to $5.15 in Q1 2024, representing an increase of 70.5%[62]. Revenue and Expenses - Adjusted revenue reached $571.1 million for the quarter, up from $565.9 million in the prior quarter, indicating a growth of 0.4%[33]. - Total revenue for Q1 2025 was $571.1 million, an increase of 12.4% compared to $508.0 million in Q1 2024[62]. - Finance charges increased to $526.7 million in Q1 2025 from $469.2 million in Q1 2024, reflecting a growth of 12.2%[62]. - Adjusted interest expense (after-tax) rose by 24.0% to $88.3 million in Q1 2025 from $71.2 million in Q1 2024[29]. - Interest expenses increased to $114.7 million in Q1 2025, up from $92.5 million in Q1 2024, marking a rise of 24.0%[62]. - Operating expenses grew by 7.5% year-over-year, impacting adjusted return on capital positively by 50 basis points[29]. Loan Portfolio and Credit Losses - The average balance of the loan portfolio increased by 11.0% year-over-year to $7.9 billion, the largest in company history[2]. - Consumer Loan assignment unit and dollar volumes declined by 10.1% and 15.5%, respectively, compared to Q1 2024[2]. - The provision for credit losses decreased by 13.0% ($24.1 million) due to a smaller decline in consumer loan performance and a decrease in new consumer loan assignments[27]. - Total provision for credit losses decreased to $161.9 million in Q1 2025 from $186.0 million in Q1 2024, a reduction of 12.9%[62]. - The GAAP provision for credit losses (after-tax) was $124.6 million, compared to $95.0 million in the previous quarter, indicating an increase of 31.6%[33]. Capital and Shareholder Equity - The average capital increased by 17.1% to $8,180.3 million for the three months ended March 31, 2025, compared to $6,985.3 million in 2024[27]. - Adjusted average capital increased by 18.3% to $8,882.6 million from $7,507.8 million year-over-year[29]. - The adjusted average capital was $8,882.6 million, compared to $8,633.3 million in the prior quarter, showing an increase of 2.9%[33]. - Shareholders' equity decreased to $1,710.9 million from $1,749.6 million, showing a decline of 2.2%[64]. - Paid-in capital increased to $351.7 million from $335.1 million, indicating a growth of 4.0%[64]. Dealer and Consumer Loans - The company enrolled 1,617 new dealers, bringing the total to 10,789 active dealers during the quarter[2]. - The percentage of consumer loans assigned as dealer loans decreased to 77.0% for the three months ended March 31, 2025, from 78.2% in the previous year[25]. - Consumer loan assignment volumes are influenced by overall demand and available capital, with a focus on maximizing economic profit[21]. - The average volume per active dealer decreased by 9.7% to 9.3 units for the three months ended March 31, 2025[23]. Cash and Assets - As of March 31, 2025, the company maintained over $2.2 billion in unrestricted cash and cash equivalents[2]. - Total assets increased to $9,258.0 million as of March 31, 2025, up from $8,854.6 million on December 31, 2024, representing a growth of 4.5%[64]. - Cash and cash equivalents increased to $528.8 million, up from $343.7 million, marking a significant increase of 53.8%[64]. - Loans receivable, net rose to $7,978.2 million, compared to $7,850.3 million, indicating an increase of 1.6%[64]. Debt and Financing - The company redeemed $250.0 million of 2023 senior notes on March 15, 2020, using proceeds from the 2024 senior notes[44]. - The company plans to issue 9.250% senior notes due 2028 in December 2023 and 6.625% senior notes due 2030 in February 2025[49].

Financial Performance - Credit Acceptance Corporation reported consolidated net income of $106.3 million, or $8.66 per diluted share, for the three months ended March 31, 2025, compared to $64.3 million, or $5.08 per diluted share, for the same period in 2024, representing a 65.3% increase [1][27] - Adjusted net income for the same period was $114.8 million, or $9.35 per diluted share, slightly down from $117.4 million, or $9.28 per diluted share, in the prior year [1][29] - The average balance of the loan portfolio increased by 11.0% to $7.9 billion, the highest ever recorded [5] Consumer Loan Metrics - The forecasted collection rates for Consumer Loans assigned in 2020 improved, while those for loans assigned in 2022, 2024, and 2025 declined [4] - The overall forecasted collection rates as of March 31, 2025, showed a modest decline, impacting forecasted net cash flows from the loan portfolio by $20.9 million, or 0.2% [5][4] - Consumer Loan assignment unit and dollar volumes decreased by 10.1% and 15.5%, respectively, compared to the first quarter of 2024 [5][21] Dealer Activity - The company enrolled 1,617 new dealers, bringing the total to 10,789 active dealers during the quarter [5] - The average volume per active dealer decreased by 9.7%, indicating a decline in dealer activity [22] Economic Profit and Capital - Economic profit decreased by 31.3% year-over-year, primarily due to a decrease in adjusted return on capital and an increase in the cost of capital [29] - Adjusted average capital rose by 18.3% compared to the same period in 2024, reflecting the company's investment in growth [29] Shareholder Returns - The company repurchased approximately 329,000 shares, or 2.7% of the shares outstanding at the beginning of the quarter [5] - The diluted weighted average shares outstanding decreased by 2.9% from the previous year [29]

Core Viewpoint - The Consumer Financial Protection Bureau (CFPB) has filed an unopposed motion to withdraw from a lawsuit against Credit Acceptance Corporation, which may limit the case to New York consumers only [1][2]. Group 1: Legal Developments - The CFPB's withdrawal from the lawsuit initiated with the New York State Attorney General is seen as a significant step for Credit Acceptance, potentially preventing the case from imposing broad regulatory changes [1][2]. - Credit Acceptance's motion to dismiss the case remains pending, and if granted, the lawsuit would only involve the New York Attorney General as the remaining plaintiff [1]. Group 2: Company Operations and Impact - Credit Acceptance provides financing solutions that enable consumers with non-prime credit to purchase vehicles, which is essential for their mobility and access to work, healthcare, and other necessities [2][4]. - The company has facilitated vehicle ownership for over five million people through its dealer network, emphasizing its commitment to compliance and integrity in operations [3][5]. Group 3: Industry Context - The lawsuit is viewed as an attempt to create new legal precedents that could negatively impact companies providing financing to consumers with limited credit options, which could harm many Americans [2]. - The financing programs offered by Credit Acceptance are crucial for consumers who might otherwise be unable to purchase reliable vehicles, thereby improving their credit scores and financial situations [5].

Group 1 - Credit Acceptance Corporation is set to release its first quarter 2025 earnings on April 30, 2025, after market close [1] - A conference call and webcast will be held on April 30, 2025, at 5:00 p.m. Eastern Time to discuss the earnings [2] - The webcast can be accessed live through the "Investor Relations" section of the company's website, with a replay and transcript 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, thereby improving their credit scores and access to traditional financing [5]

Core Insights - Credit Acceptance Corporation has been recognized as a 2025 Spring Culture Excellence Top Workplaces award winner in five categories: Work-Life Flexibility, Leadership, Innovation, Purpose & Values, and Compensation & Benefits [1] - The company emphasizes a remote-first approach and meaningful leadership development, with 93% of team members agreeing that it is a great place to work [2] - This recognition follows other accolades, including ranking 2 on the 2025 Top Workplaces USA list and 34 on the 2025 Fortune 100 Best Companies to Work For® list [3] Company Overview - Credit Acceptance provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history [5] - The financing programs help consumers improve their credit scores, allowing them to transition to more traditional sources of financing [6] - The company is publicly traded on the Nasdaq Stock Market under the symbol CACC [6] Awards and Recognition - The Top Workplaces Awards are based on a survey by Energage, measuring 15 Culture Drivers that predict high performance against industry benchmarks [4] - Recent recognitions include being named in Fortune's Best Workplaces for Women™, Best Workplace for Financial Services and Insurance™, and Best Workplace for Millennials™ [3]

Company Overview - Credit Acceptance (CACC) shares increased by 7% to $501.25 in the last trading session, with a higher-than-average trading volume, contrasting with a 0.7% loss over the past four weeks [1] - The company is expected to report quarterly earnings of $10.31 per share, reflecting a year-over-year increase of 103%, and revenues are projected to be $568.15 million, up 11.8% from the previous year [2] Earnings and Estimates - The consensus EPS estimate for Credit Acceptance has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - The stock currently holds a Zacks Rank of 2 (Buy), suggesting positive sentiment among analysts [4] Industry Context - Credit Acceptance is part of the Zacks Financial - Consumer Loans industry, which includes other companies like Ally Financial (ALLY) [4] - Ally Financial's consensus EPS estimate has decreased by 2.2% over the past month to $0.46, representing a year-over-year change of +2.2%, and it currently holds a Zacks Rank of 3 (Hold) [5]

Group 1 - Credit Acceptance Corporation has been recognized as one of the 100 Best Companies to Work For by Great Place To Work and Fortune magazine in 2025, achieving a ranking of 34, which is an improvement of five spots from the previous year [1] - The company emphasizes a positive workplace culture, with 93% of team members agreeing that it is a great place to work, highlighting practices such as remote work flexibility and active feedback implementation [2] - Credit Acceptance has received multiple accolades from Fortune, including Best Workplace for Financial Services and Insurance, Best Workplace for Millennials, and Best Workplace for Women [3] Group 2 - The selection process for the 100 Best Companies involved analyzing over 1.3 million confidential survey responses from more than 8.4 million U.S. employees, with over 670,000 responses from employees at eligible companies [4] - Credit Acceptance provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history, thus facilitating vehicle ownership [5] - The company's financing programs not only help consumers purchase vehicles but also provide an opportunity to improve their credit scores, allowing them to access more traditional financing options in the future [6]

Core Insights - Credit Acceptance Corporation has been recognized as one of the 100 Best Companies to Work For® by Great Place To Work® and Fortune magazine in 2025, achieving a ranking of 34, which is an improvement of five spots from the previous year [1] Group 1: Company Culture and Employee Satisfaction - The CEO of Credit Acceptance highlighted the company's award-winning culture, emphasizing remote work flexibility, active feedback implementation, and adherence to PRIDE values—Positive, Respectful, Insightful, Direct, and Earnest [2] - A significant 93% of team members agree that Credit Acceptance is a great place to work, indicating a strong commitment to fostering a valued and empowered work environment [2] Group 2: Additional Accolades - Credit Acceptance has received multiple accolades from Fortune, including Best Workplace for Financial Services and Insurance™, Best Workplace for Millennials™, and Best Workplace for Women™ [3] - The company has also been recognized as a Top Workplaces USA Award winner and one of People Magazine's Companies that Care® [3] Group 3: Selection Process for Awards - The selection for the 100 Best Companies to Work For® involved analyzing over 1.3 million confidential survey responses from more than 8.4 million U.S. employees, with over 670,000 responses from employees at eligible companies [4] - Organizations are evaluated based on their efforts to create supportive and high-performance work experiences for all employees [4] Group 4: Company Overview - Credit Acceptance provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history, thus facilitating vehicle ownership [5] - The financing programs not only help consumers purchase vehicles but also provide an opportunity to improve their credit scores, allowing them to access more traditional financing options in the future [6]

Core Viewpoint - Credit Acceptance Corporation has completed a $400 million asset-backed non-recourse secured financing, involving the conveyance of loans valued at approximately $500.2 million to a special purpose entity, which will issue three classes of notes [1]. Financing Details - The financing structure includes three classes of notes with the following details: - Class A: $223.08 million, average life of 2.48 years, priced at 99.99519%, with an interest rate of 5.02% - Class B: $65.78 million, average life of 3.14 years, priced at 99.97454%, with an interest rate of 5.30% - Class C: $111.14 million, average life of 3.52 years, priced at 99.98897%, with an interest rate of 5.71% [1]. - The company will receive 4% of the cash flows from the underlying consumer loans to cover servicing expenses, while 96% will be allocated to pay principal and interest on the notes and ongoing financing costs [1]. Company Overview - Credit Acceptance Corporation provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history, thus facilitating vehicle ownership [3]. - The company's financing programs help consumers improve their credit scores, allowing them to transition to more traditional financing sources [4].

Core Insights - Credit Acceptance Corporation has been recognized as a 2025 Top Workplaces USA award winner for the fifth consecutive year, achieving a 2 ranking in the 1,000-2,499-employee size category, an improvement of 7 spots from the previous year [1][4]. Company Culture and Employee Engagement - The award reflects the dedication and commitment of Credit Acceptance's over 2,400 team members, emphasizing a culture built around the core values of PRIDE – Positive, Respectful, Insightful, Direct, and Earnest [2][3]. - The company promotes a stable business environment and a strong listening culture where every employee's voice is valued, contributing to its recognition as a great workplace [3]. Remote Work Practices - Nearly 95% of the workforce operates fully remote, allowing employees to maintain a work-life balance while excelling in their personal and professional lives [3]. - Initiatives such as monthly in-office days and quarterly regional meetings are implemented to keep team members connected despite physical distances [3]. Recognition and Awards - This award marks the first workplace recognition for the year, following a record of 13 awards received in 2024, including a 39 ranking in the Fortune 100 Best Companies to Work For list [4]. - Other notable accolades include recognition from PEOPLE Magazine and Fortune for various workplace categories [4]. Company Overview - Credit Acceptance provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers with varying credit histories, thus facilitating vehicle ownership [6]. - The financing programs not only assist consumers in purchasing vehicles but also help improve their credit scores, allowing them to access traditional financing options in the future [7].