10-Q · May 5, 2026
Credit Acceptance Corporation (CACC) reported strong Q1 2026 results, with net income increasing to $135.8 million or $12.40 per diluted share, significantly beating the expected EPS of $10.53. Total revenue for the…
Earnings analysis · 10-Q
CACC earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Credit Acceptance delivered strong Q2 profitability: diluted EPS rose to $12.66 and net income increased 55.5% to $135.9 million, aided by lower operating, credit-loss, and interest costs. Revenue growth was modest at…
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Credit Acceptance delivered strong Q2 profitability: diluted EPS rose to $12.66 and net income increased 55.5% to $135.9 million, aided by lower operating, credit-loss, and interest costs. Revenue growth was modest at 0.6%, while origination units remained down 1.0%, although July volume grew 28.0%. Credit performance remains the central watch item, with portfolio forecasted net cash flows declining $39.1 million, but liquidity of $1.4 billion and lower-cost funding extensions support near-term financial flexibility. The filing did not disclose quantitative forward guidance or material risk-factor updates versus the 2025 Form 10-K.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $12.66
What stood out
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Revenue modestly higher as portfolio yield rises
Q2 revenue increased 0.6% year over year to $587.4 million, driven by a 1.0% increase in finance charges to $546.2 million. Finance-charge yield rose 50 basis points to 27.5%, partly offset by a $58.4 million decline in average net loans receivable to $7.953 billion.
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EPS and net income rose sharply
Diluted EPS rose 70.6% to $12.66 from $7.42, while net income increased $48.5 million, or 55.5%, to $135.9 million. The improvement reflected a $21.4 million reduction in operating expenses, a $13.4 million reduction in credit-loss provision, and $10.7 million lower interest expense.
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Originations stabilized and July accelerated
Loan assignment dollar volume increased 0.1% to approximately $1.0 billion despite a 1.0% unit-volume decline to 84,615. Unit volume returned to year-over-year growth in June and increased 28.0% year over year in July 2026.
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Funding capacity and financing costs improved
Liquidity remained substantial at $1.4 billion at June 30, 2026, including $1.432 billion of unused revolving credit capacity. The company completed a $450.0 million Term ABS financing at an expected 5.2% annualized cost and extended its revolving credit maturity to June 22, 2029.
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Large repurchases supported per-share growth
The company repurchased 262,963 shares for $141.4 million in Q2, equal to 2.5% of shares outstanding at the beginning of the quarter. First-half repurchases totaled 628,221 shares for $320.3 million.
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Dealer network and AI adoption expanded
The active dealer base grew 3.3% year over year to a record 11,004, while 67% of inbound customer-service and account-solutions calls were routed to the AI agent in June versus 27% in March.
What to watch
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Credit forecasts and prepayment timing remain pressured
Forecasted loan-portfolio net cash flows declined $39.1 million, or 0.3%, in Q2, and management said lower-than-expected prepayments remained below historical averages. Collection forecasts declined for 2023 through 2025 loan vintages; notably, the 2022 vintage forecast is 59.3% versus its 67.5% initial forecast.
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Core dealer productivity remains below prior year
Consumer-loan unit volume fell 1.0% to 84,615 in Q2 and 2.8% to 180,607 in the first half. Volume per active dealer declined 3.8% in Q2, while same-dealer volume declined 5.3%.
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High debt maturities require continued funding access
Balance-sheet indebtedness was $6.286 billion at June 30, 2026, with $1.352 billion of scheduled principal maturities in the remainder of 2026 and $2.190 billion in 2027. Management states that financing availability can be affected by economic and financial-market conditions.
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Purchased-loan mix is pressuring new-loan economics
Purchased Loans comprised 31.5% of Q2 unit volume, up from 28.4% a year earlier, and their 2026 spread was 20.3% versus 21.1% for 2025 Purchased Loans. Management said the lower initial forecast and spread on Purchased Loans increased average provision per new assignment.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management said it expects further gains in call handling and unit economics as its AI platform scales throughout 2026, and believes anticipated operating cash flows and financing alternatives will be sufficient for debt maturities and future operations.
Earlier filings 4
10-K · February 13, 2026
Credit Acceptance reported full-year 2025 revenue of $2,317.2 million and net income of $423.9 million (diluted EPS $36.38), driven by $2,141.8 million of finance charge revenue and loans receivable of $11,511.5…
10-Q · April 30, 2025
Credit Acceptance reported a strong quarter: total revenue of $571.1 million (Q1 2025) vs $508.0 million in Q1 2024 and diluted EPS of $8.66 vs $5.08 a year ago. Operating performance and cash generation improved (net…
10-K · February 12, 2025
Credit Acceptance reported revenue of $2,162.4 million in 2024 (up from $1,901.9m in 2023) driven by finance charge revenue of $1,992.7 million and growth in loans receivable to $11,289.1 million. Profitability was…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.