Credit Acceptance Corporation (CACC)

Over the past six months, several events have impacted CACC's stock price. Credit Acceptance announced better-than-expected revenue and non-GAAP profit in Q3 CY2025. The company completed a $500.0 million asset-backed financing and extended a $100.0 million asset-backed non-recourse secured financing. In Q4 2025, the company reported an EPS exceeding estimates, but quarterly revenue fell below estimates. Management noted a narrowing decline in forecasted future net cash flow and improved loan volumes, although market share in the used vehicle subprime segment decreased. Director Kenneth Booth sold 3,219 shares of the company's stock.

Credit Acceptance Corp.'s business experiences seasonality, with peak consumer loan acceptances and collections typically occurring during the first quarter of the year. However, the company states that this seasonality does not have a material impact on its interim results. The company has generally seen decent demand for auto loans, supported by increases in dealer enrollments and active dealers.

Credit Acceptance Corp. (CACC) is a specialized finance company in the consumer finance sector, focusing on the automobile finance industry. It provides financing programs and services in the United States, enabling automobile dealers to sell vehicles to consumers with limited or impaired credit histories. The company offers financing solutions through the Portfolio Program and the Purchase Program. CACC also reinsures coverage under vehicle service contracts and Guaranteed Asset Protection (GAP) coverage sold to consumers by dealers on financed vehicles. The company aims to improve consumers' credit scores by reporting to national credit reporting agencies.

Credit Acceptance Corp. operates exclusively within the United States, offering its financing programs and services through a nationwide network of independent and franchised automobile dealers. The company maintains a network of market area managers across the country to recruit and support these dealers.

In the past year, Credit Acceptance Corp. has received several recognitions for its workplace culture. Computerworld honored Credit Acceptance as one of the Best Places to Work in IT for the 11th time. The Detroit Free Press named Credit Acceptance a 2025 Top Workplace in Michigan. Credit Acceptance was recognized as one of the 2025 US Fortune Best Workplaces for Women™.

Credit Acceptance Corp.'s ownership structure includes institutional, retail, and individual investors. Institutional investors hold approximately 12.60% to 19.60% of the company's stock, while insiders own about 21.77%. Public companies and individual investors account for the remaining shares, ranging from 7.00% to 58.63%. Major institutional owners include Prescott General Partners LLC, Cerity Partners LLC, Ruane, Cunniff & Goldfarb L.P., Vanguard Group Inc, Boston Partners, Gobi Capital Llc, Beck Mack & Oliver Llc, Wellington Management Group Llp, BlackRock, Inc., and SEQUX - Sequoia Fund Inc. Significant individual owners include Allan V Apple and Donald Foss.