Credit Acceptance (CACC) investor relations material

Executive summary

• Net income for Q2 2026 was $135.9 million ($12.66 per diluted share), up 71% year-over-year, driven by lower operating expenses, provision for credit losses, and strategic changes in pricing, segmentation, and operating efficiency.

• Adjusted net income was $130.1 million ($12.12 per diluted share), up 21% year-over-year.

• Loan portfolio averaged $8.0 billion in Q2 2026, with consumer loan assignment unit volume down 1.0% but dollar volume up 0.1% year-over-year.

• Dealer network engagement grew, with 1,456 new dealers enrolled and a record 11,004 active dealers.

• Leadership transition occurred, with Jay Martin retiring as CFO and Joe Billante assuming the role.

Financial highlights

• Q2 2026 revenue was $587.4 million, up 0.6% year-over-year; net income margin was 23.1%.

• Operating expenses fell 13.8% to $134.1 million, mainly due to lower general/admin costs and headcount.

• Provision for credit losses decreased 7.8% to $159.2 million, reflecting smaller forecasted net cash flow declines and slower prepayments.

• Interest expense dropped 9.1% to $107.4 million due to lower average debt and cost of debt.

• Economic profit increased 25.8% to $52.6 million, driven by higher adjusted return on capital and improved yields.

Outlook and guidance

• The company remains focused on profitable growth, disciplined capital allocation, and maximizing long-term intrinsic value per share.

• Monthly unit volume returned to year-over-year growth in June and July 2026.

• AI-enabled servicing and digital initiatives are expected to further improve efficiency and customer experience throughout 2026.

• Continued refinement of pricing and decisioning models is expected, with ongoing adaptation to market conditions.

• Management expects prepayment rates to eventually normalize, though consumers are currently holding vehicles longer.