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]