Business
Credit Acceptance Announces Third Quarter 2025 Results
Southfield, Michigan, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”,
About this update from Credit Acceptance Corporation
[{"type":"text","content":"Southfield, Michigan, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $108.2 million, or $9.43 per diluted share, for the three months ended September 30, 2025. Adjusted net income, a non-GAAP financial measure, for the three months ended September 30, 2025 was $117.9 million, or $10.28 per diluted share. The following table summarizes our financial results: (In millions, except per share data) For the Three Months Ended September 30, 2025 June 30, 2025 September 30, 2024GAAP net income $ 108.2 $ 87.4 $ 78.8 GAAP net income per diluted share $ 9.43 $ 7.42 $ 6.35 Adjusted net income (1) $ 117.9 $ 118.3 $ 114.8 Adjusted net income per diluted share (1) $ 10.28 $ 10.05 $ 9.25 (1) Prior period amounts have been restated to remove the effect of contingent losses recognized during those periods to conform to the current presentation. “We are pleased to report growth in adjusted EPS despite the challenging competitive landscape and difficult collection environment,” said Ken Booth, CEO of Credit Acceptance. “While we have continued to experience modest declines in loan performance, our business model is designed to produce acceptable returns in the aggregate even if loan performance is significantly worse than forecasted. We are also pleased with the investments that we have made over the last few years to modernize our loan originations system as we are now well positioned to make improvements significantly faster going forward.” Third Quarter 2025 Financial Highlights A 3.9% increase in the average balance of our loan portfolio from the third quarter of 2024 to $8.0 billion.A decline in Consumer Loan assignment unit and dollar volumes of 16.5% and 19.4%, respectively, as compared to the third quarter of 2024.A decline in forecasted collection rates, which decreased forecasted net cash flows from our loan portfolio by $58.6 million, or 0.5%, and slower forecasted net cash flow timing.$107.4 million in the repurchase of approximately 230,000 shares, or 2.0% of the shares outstanding at the beginning of the quarter.$51.9 million in dealer holdback and accelerated dealer holdback payments to dealers.$15.0 million contingent loss, which we have excluded from our adjusted results, related to pr...