Leadership Transition - Kenneth S. Booth, the current CEO and President of Credit Acceptance Corporation, will retire on January 31, 2026, but will remain on the Board of Directors [1] - Vinayak R. Hegde has been appointed as the new CEO and President, effective November 13, 2025, and will transition from his current role on the Board [1][2] Executive Background - Vinayak R. Hegde has a strong background in innovation and digital transformation, having served as Consumer Chief Marketing Officer at T-Mobile US, Inc., and held leadership roles at Wheels Up Experience Inc., Airbnb, and Groupon [2][4] - Hegde has over 12 years of experience at Amazon, contributing to its growth in e-commerce and the Prime ecosystem [4] Company Performance and Future Outlook - Ken Booth expressed pride in the company's accomplishments during his tenure, highlighting a culture of excellence and a solid foundation for future growth [3] - The Board of Directors acknowledged Booth's exceptional leadership and contributions, particularly in technology, product, marketing, and process improvements [4] - Hegde aims to build on the foundation established by Booth and the team, focusing on innovation and long-term value creation for stakeholders [5] Business Model - Credit Acceptance provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers with varying credit histories [5][6] - The company's financing programs help consumers 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 America's Top 100 Most Loved Workplaces for 2025, ranking sixth and improving by four spots from the previous year [1][2] - The recognition is based on employee feedback, emphasizing the importance of a supportive and empowering workplace culture [2][4] - The company has received nine workplace awards in 2025, including high rankings on various prestigious lists such as Fortune's 100 Best Companies to Work For and PEOPLE Magazine's 100 Companies That Care [3] Company Overview - Credit Acceptance provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers with varying credit histories [5][6] - The company's financing programs help consumers improve their credit scores, allowing them to transition to more traditional financing options [6] Recognition and Research - The Most Loved Workplaces list is based on research by Best Practice Institute, which evaluates employee experiences in areas like emotional connection and collaboration [4][7] - Over 2.8 million U.S. employees were surveyed, along with interviews from executives to assess workplace culture and leadership [4]

Financial Performance - Credit Acceptance Corporation reported consolidated net income of $87.4 million, or $7.42 per diluted share, for the three months ended June 30, 2025, compared to a net loss of $47.1 million in the same period of 2024, marking a significant recovery [1][27] - Adjusted net income for the same period was $100.8 million, or $8.56 per diluted share, down from $126.4 million, or $10.29 per diluted share, in 2024, reflecting a 20.3% decrease [1][29] - The company experienced a 46.2% decrease in provision for credit losses, amounting to $148.0 million, primarily due to a smaller decline in Consumer Loan performance compared to the previous year [27][32] Consumer Loan Metrics - The forecasted collection rates for Consumer Loans assigned in 2025 improved to 66.9% as of June 30, 2025, while rates for loans assigned in 2022 through 2024 declined [3][4] - The average balance of the loan portfolio increased by 6.8% to $8.0 billion, the highest ever recorded [6] - Consumer Loan assignment unit and dollar volumes decreased by 14.6% and 18.8%, respectively, compared to the second quarter of 2024 [6][22] Dealer Activity - The company enrolled 1,560 new dealers, bringing the total to 10,655 active dealers during the quarter [6] - The number of active dealers declined by 0.8%, and the average unit volume per active dealer decreased by 14.0% [22][23] - Consumer Loan unit volume from dealers active in both periods fell by 16.8% [23] Economic Profit and Capital - Economic profit decreased by 56.6% for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to a decrease in adjusted return on capital [29] - Adjusted average capital increased by 11.2% to $8.93 billion [29] - The company repurchased approximately 530,000 shares, or 4.5% of the shares outstanding at the beginning of the quarter [6] Tax and Legal Matters - The estimated long-term effective income tax rate increased from 23% to 25% [6] - A contingent loss of $23.4 million was recognized related to previously disclosed legal matters [6][32]

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]

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]

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]