CACC · Credit Acceptance Corporation

The furnished shareholder letter, signed by new CEO Vinayak Hegde, provides a comprehensive strategic and operational update alongside 2025 financial results. Financially, the company reported a significant 83.0% year-over-year increase in GAAP net income per diluted share to $36.38, primarily driven by growth in the average balance and yield of the loan portfolio and a smaller decline in loan performance relative to 2024. On an adjusted basis, which the company states better reflects the economics of its business, net income per diluted share increased 5.2% to $40.95, largely due to share repurchases which reduced the weighted average share count by 6.6%. Operational highlights include a record high of 15,745 active dealers, though loan unit volume declined 12.6% to 337,411 in a more competitive environment. The letter details a strategic pivot under the new CEO, emphasizing a 'Founder's Mentality,' intensive use of AI and technology to lower decision-making costs, and a disciplined capital allocation framework focused on Economic Profit. The company also disclosed progress on regulatory matters, noting preliminary alignment on a potential settlement for a multi-state investigation, with $82.6 million in cumulative contingent losses recognized through 2025 and excluded from adjusted results. Capital return remained active, with $712 million spent on share repurchases in 2025.