Credit Acceptance (NASDAQ:CACC) Posts Quarterly Earnings Results, Beats Expectations By $1.05 EPS

Credit Acceptance (NASDAQ:CACC) announced its earnings results on Thursday. The credit services provider reported $11.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $10.30 by $1.05, FiscalAI reports. Credit Acceptance had a return on equity of 27.88% and a net margin of 19.70%.The firm had revenue of $408.20 million during the quarter, compared to analysts’ expectations of $582.63 million.

Here are the key takeaways from Credit Acceptance’s conference call:

• Vinayak Hegde is the new CEO and has instituted disciplined operating rhythms and a data-/AI-driven, digital-first agenda focused on removing dealer/consumer friction and preserving capital discipline.
• Launched a new contract origination experience with seamless RouteOne e-contracting integration and enhanced deal-structuring/F&I tools aimed at franchise and large independent dealers, with broader rollout expected in Q1 2026.
• Adjusted EPS grew in Q4 despite volume and performance headwinds; the company financed ~72,000 contracts, collected $1.3B, and saw sequential improvement in forecasted net cash flow declines and narrower year-over-year volume drops.
• Market share in the used subprime core fell to 4.5% from 5.4% year-over-year, active dealers declined 2.8%, and average units per active dealer were down 6.4%, signaling continued demand pressure.
• Loan credit trends showed modest underperformance in the 2023/2024 vintages, prepayments remain below historical norms, and Q4 provisioning for new originations rose to roughly $1,000 per unit driven by a higher mix of purchase-program advances.

Credit Acceptance Trading Up 4.1%

CACC opened at $451.24 on Friday. The firm’s 50 day moving average is $457.79 and its 200-day moving average is $474.95. Credit Acceptance has a 52-week low of $401.90 and a 52-week high of $560.00. The company has a quick ratio of 15.81, a current ratio of 15.81 and a debt-to-equity ratio of 3.94. The firm has a market capitalization of $4.98 billion, a P/E ratio of 11.95 and a beta of 1.24.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on CACC shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Credit Acceptance in a report on Wednesday, January 21st. TD Cowen raised shares of Credit Acceptance from a “sell” rating to a “hold” rating in a research note on Thursday, January 8th. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $480.00.

Institutional Investors Weigh In On Credit Acceptance

Hedge funds have recently bought and sold shares of the business. Vestcor Inc bought a new stake in shares of Credit Acceptance in the 3rd quarter worth about $50,000. Raymond James Financial Inc. acquired a new position in Credit Acceptance in the second quarter worth about $150,000. Prudential Financial Inc. bought a new stake in Credit Acceptance in the second quarter valued at about $215,000. Creative Planning raised its stake in Credit Acceptance by 35.6% during the second quarter. Creative Planning now owns 529 shares of the credit services provider’s stock valued at $269,000 after buying an additional 139 shares in the last quarter. Finally, Russell Investments Group Ltd. lifted its holdings in Credit Acceptance by 6.5% during the 2nd quarter. Russell Investments Group Ltd. now owns 685 shares of the credit services provider’s stock worth $349,000 after buying an additional 42 shares during the last quarter. Institutional investors and hedge funds own 81.71% of the company’s stock.

More Credit Acceptance News

Here are the key news stories impacting Credit Acceptance this week:

• Positive Sentiment: Adjusted EPS beat consensus and the company reported adjusted net income of $126.0M, $11.35 per diluted share — stronger-than-expected profitability that supports valuation. Credit Acceptance Announces Fourth Quarter 2025 Results
• Positive Sentiment: Analysts and news outlets highlight the EPS beat (Zacks and others), which can buoy investor sentiment despite the revenue miss. Credit Acceptance (CACC) Q4 Earnings Beat Estimates
• Positive Sentiment: Management reiterated a digital?first growth strategy and noted stabilization in loan volumes and market share — a potential medium?term growth catalyst if execution reduces costs and grows originations. Credit Acceptance outlines digital-first growth plan as loan volumes and market share stabilize
• Neutral Sentiment: Full earnings call transcript is available for details on guidance, reserves and portfolio performance; investors will parse tone and forward commentary. Credit Acceptance Corporation (CACC) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Previews and snapshots (Benzinga, Stamford Advocate, MSN) framed expectations and reported the company’s upbeat tone; useful for context but largely duplicative of the press release and call. What to Expect from Credit Acceptance’s Earnings
• Negative Sentiment: Revenue missed estimates substantially ($408.2M actual vs. ~$582.6M consensus), a major negative that raises questions about originations, seasonality, or portfolio turnover. View Press Release
• Negative Sentiment: EPS declined year?over?year (from $12.26 to $11.35 adjusted), signaling pressure on margins or volume versus the prior year despite the beat versus current estimates. MarketBeat Earnings Summary

Credit Acceptance Company Profile

Credit Acceptance Corporation, founded in 1972 and headquartered in Southfield, Michigan, is a specialty finance company focused on the indirect automotive lending market. The company partners with independent and franchised auto dealers to facilitate purchase financing for consumers who may not qualify for traditional prime auto loans. By purchasing retail installment contracts originated by these dealers, Credit Acceptance provides capital and credit insurance to support vehicle sales, enabling dealers to broaden their customer base and reduce credit risk.

Through its proprietary underwriting platform and risk management strategies, Credit Acceptance evaluates borrower applications, structures credit plans, and retains servicing rights on the acquired contracts.