CACC · Credit Acceptance Corporation

Credit Acceptance Corporation reported first quarter 2026 results that showed meaningful progress in stabilizing its loan portfolio. GAAP net income of $135.8 million ($12.40 per diluted share) increased from $106.3 million ($8.66 per share) in the same quarter last year, driven by reduced volatility in loan forecast changes and moderation in unit volume declines. Adjusted net income, which excludes certain items, was $117.3 million ($10.71 per diluted share), slightly below the consensus estimate of $10.73 per share. The company's loan portfolio average balance remained flat at $7.9 billion year-over-year, while consumer loan assignment unit volume declined 4.3% to 95,992 units and dollar volume fell 4.0% to $1.1 billion. A key highlight was the smallest quarterly decline in forecasted net cash flows in three years, at just $9.1 million (0.1%), indicating improved portfolio performance. Management emphasized disciplined investment and execution, with CEO Vinayak Hegde noting progress on the product roadmap, including AI-enabled call-center agent adoption rising to 27% of inbound calls from 6% in December 2025, and a record 10,977 active dealers. The company also repurchased 365,258 shares (3.4% of outstanding) for $178.9 million during the quarter, demonstrating capital return commitment. Liquidity stood at $1.3 billion as of March 31, 2026. The results reflect a stabilizing credit environment and operational efficiencies, though adjusted EPS slightly missed consensus.