Credit Acceptance (CACC) Q4 2025 earnings summary

Executive summary

• New CEO emphasized a mission-driven, customer-obsessed approach, focusing on technology, data, and operational discipline to drive growth and efficiency.

• Reported GAAP net income of $122.0 million ($10.99 per diluted share) for Q4 2025, down 19.7% year-over-year; adjusted net income was $126.0 million ($11.35 per diluted share), up 11.6% year-over-year on a per-share basis.

• Sequential growth in financial results despite declines in loan volumes and loan performance, highlighting business model resilience.

• Strategic priorities include deepening dealer relationships, empowering dealers through preferred channels, and delivering world-class servicing with AI enhancements.

• Company culture recognized as a top workplace, supporting execution of long-term mission.

Financial highlights

• Adjusted earnings per share grew despite declines in loan performance and volume.

• Financed nearly 72,000 contracts, collected $1.3 billion, and paid $48 million in dealer holdback.

• Average loan portfolio balance was $7.9 billion in Q4 2025.

• $191.4 million spent on repurchasing 425,000 shares (3.8% of shares outstanding at the start of the quarter).

• $1.7 billion in unrestricted cash and available credit as of December 31, 2025.

Outlook and guidance

• Leadership remains focused on conservative, long-term lending and credit scoring, with ongoing improvements to credit models.

• Product initiatives in digital credit applications, franchise dealer experience, and consumer self-service are expected to improve dealer and consumer relationships and operational efficiency.

• Broader deployment of AI-powered call-center agents and expansion of new contract origination experience planned for 2026.