What were the key takeaways from Credit Acceptance's earnings call?

What is Credit Acceptance's gross profit margin?

What is the revenue and EPS growth rate for Credit Acceptance year over year?

What is Credit Acceptance's latest dividend and current dividend yield?

What guidance did Credit Acceptance's management provide for the next earnings period?

What does Credit Acceptance do and what are its main business segments?

Did Credit Acceptance beat or miss consensus estimates last quarter?

What factors drove the changes in Credit Acceptance's revenue and profit?

- **Portfolio strength**: $9.1B loan portfolio (up 2% YoY) despite 5.1% market share decline.
- **Operational resilience**: 70% faster dealer tech rollouts and 11th year as Best Workplace.
- **Financial stability**: G&A stable at $36M, no ABS covenant breaches.
- **Strategic focus**: Balancing competitive pressures with long-term profitability through adaptive scorecard.
- **Risk management**: $38M contingent losses isolated to legal matters, no core business impact.


**【CEO Summary Section】**
- **Record loan portfolio growth**: Q3 2025 loan portfolio reached $9.1 billion, up 2% year-over-year, despite a 5.1% decline in market share due to competitive pressures.
- **Challenges in origination**: Unit volume declined 8% YoY, driven by a stricter scorecard implemented in Q3 2024, resulting in lower advance rates and dealer attrition.
- **Strategic investments**: Modernization of loan origination system reduced time-to-market for dealer enhancements by 70%, supporting long-term efficiency.
- **Operational resilience**: 11th consecutive year as a Best Workplace in Financial Services, emphasizing remote-first culture and team retention.
- **Leadership transition**: CEO Ken Booth announced retirement, with plans to modernize dealer engagement and maintain market leadership.

**【CFO Financial Commentary】**
- **Financial discipline**: G&A expenses remained stable at $36 million, excluding $38 million in contingent losses (Q3 2025: $15M; Q2 2025: $23M), reflecting prudent risk management.
- **ABS covenant compliance**: All securitizations maintain >90% collection rates, with no near-term risk of early amortization.
- **Capital allocation**: $2 million shares repurchased under Board authorization, with leverage ratio maintained at 2-3x debt-to-equity.

**【Q&A Key Highlights】**
- **Competitive intensity**: Peers' aggressive pricing in fragmented market, despite poor vintage performance (2022-2024 vintages underperformed, 2025 vintage exceeded expectations).
- **Tariff impact**: Consumer affordability challenges constrain demand, with 55% of borrowers facing credit challenges.
- **Scorecard flexibility**: Adaptive pricing strategy prioritizes long-term profitability over short-term volume growth.
- **Legal uncertainties**: Ongoing contingent losses related to legal matters, with no material impact on core operations.
- **Dealer engagement**: 10,180 active dealers enrolled, with 1,300 new partnerships, supporting dealer-first strategy.


Credit Acceptance Corporation (CACC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CACC

CACC fundamentals

You can ask Aime