Credit Acceptance Corporation (CACC)

In the past six months, Credit Acceptance Corp. reported its Q3 2025 earnings on October 30, 2025, with an adjusted EPS of $10.28, exceeding analysts' estimates. Revenue for Q3 2025 was $582.4 million, surpassing analyst estimates and showing year-on-year growth. Key financial highlights included an increase in the average balance of its loan portfolio, but consumer loan assignment unit and dollar volumes declined. The company repurchased approximately 230,000 shares during the quarter. Prior to this, Q2 2025 results, announced on July 31, 2025, showed an adjusted EPS of $8.56, which was a miss compared to analysts' expectations. Consumer loan assignment unit and dollar volumes declined, and the company repurchased approximately 530,000 shares during Q2 2025.

Demand for Credit Acceptance Corp.'s financing programs and consumer loan assignment volumes are influenced by the demand for auto loans and the amount of capital available. The company's business is tied to the auto loan market, benefiting from steady vehicle demand and higher average vehicle prices. The auto loan market can be sensitive to economic cycles, affecting consumers' ability to repay loans. The company's pricing strategy aims to maximize economic profit within capital constraints.

Credit Acceptance Corporation (CACC) is a specialty finance company in the United States, providing financing programs and related services. It enables automobile dealers to sell vehicles to consumers with limited or impaired credit histories, focusing on the subprime market. The company operates through two primary financing programs: the Portfolio Program, where Credit Acceptance advances money to dealers and receives the right to service the loans, and the Purchase Program, where the company directly purchases consumer loans from dealers. Revenue is generated through interest and fees on loans, as well as ancillary products.

Credit Acceptance Corporation operates exclusively in the United States, offering its financing programs through a nationwide network of independent and franchised automobile dealers. The company has market area managers across the U.S. to market its programs, enroll new dealers, and support existing ones.

In the past year (2025), Credit Acceptance has received several accolades, indicating a positive brand reputation as an employer, including being named a Financial Services Top Workplace, included in Crain's Fast 50 list, recognized as a PEOPLE 100 Companies that Care, and listed as a Fortune Best Workplace in Financial Services and Insurance. It was also named one of the 100 Best Companies to Work For and received a Top Workplaces Culture Excellence award in multiple categories. Additionally, it was a Top Workplaces USA award winner. In 2025, a major lawsuit from a federal regulator was withdrawn, reducing uncertainty and risk.

Credit Acceptance Corporation's stock ownership includes institutional, insider, and individual investors. Institutional investors hold a significant portion, approximately 54% of the company. Major institutional shareholders include Prescott General Partners LLC, Cerity Partners LLC, Ruane, Cunniff & Goldfarb L.P., Vanguard Group Inc, BlackRock, Inc., Boston Partners, Gobi Capital Llc, Beck Mack & Oliver Llc and Wellington Management Group Llp. Significant individual and insider owners include Donald A. Foss Trust, Marital Trust U/A Donald A. Foss Trust, Donald A. Foss, Thomas W. Smith, Scott J. Vassalluzzo, Karol A. Foss, Steven M. Fischer, Jill Foss Watson and Kenneth Booth. Insiders collectively own approximately 21.79% of the company's stock, with more shares bought than sold in the past 12 months.