Credit Acceptance Corporation

Credit Acceptance Corporation (CACC) reported strong FY 2025 financial performance with total revenue of $2.32B, driven by $2.14B in finance charges revenue, $95.6M in premiums earned, and $79.8M in other income. Net income reached $423.9M, or $37 basic and $36 diluted EPS, on 11.5M basic and 11.7M diluted shares. Operating expenses totaled $599.9M, including salaries ($337.1M), G&A ($161.4M), and sales/marketing ($101.4M). Provision for credit losses was $616.1M, interest expense $462.9M, and other costs led to total expenses of $1.75B, yielding pre-tax income of $565.4M after $141.5M in taxes. Balance sheet shows total assets of $8.63B, with loans receivable net of $7.91B (gross $11.51B less $3.60B allowance), cash/restricted cash $500.7M, and shareholders' equity $1.52B. Total liabilities $7.11B include secured financing $5.16B and senior notes $1.09B. Operating cash flow was robust at $1.05B, investing used $674.3M mainly on loan originations, financing outflow $724.6M driven by $725.4M stock repurchases. Net cash decreased $344.3M. This reflects solid profitability in auto finance amid high credit provisions, with strong cash generation supporting shareholder returns.

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