Credit Acceptance Reports Q1 2025 Financial Results

Credit Acceptance ( (CACC) ) has released its Q1 earnings. Here is a breakdown of the information Credit Acceptance presented to its investors.

Credit Acceptance Corporation, a prominent player in the financial services sector, specializes in providing auto loans and financing solutions to consumers through a network of dealers. The company is recognized for its unique approach to credit acceptance and risk management.

In its first-quarter 2025 earnings report, Credit Acceptance Corporation reported a consolidated net income of $106.3 million, or $8.66 per diluted share. The adjusted net income stood at $114.8 million, or $9.35 per diluted share, reflecting a slight decrease compared to the previous quarter. The company maintained a strong liquidity position with over $2.2 billion in unrestricted cash and credit lines.

Key highlights from the report include an 11% increase in the average balance of the loan portfolio to $7.9 billion, marking the largest in the company’s history. However, there was a notable decline in Consumer Loan assignment unit and dollar volumes by 10.1% and 15.5%, respectively, compared to the first quarter of 2024. The company also repurchased approximately 329,000 shares, representing 2.7% of the shares outstanding at the beginning of the quarter.

Despite the challenges, Credit Acceptance enrolled 1,617 new dealers, bringing the total to 10,789 active dealers during the quarter. The company was also recognized as a Top Workplaces USA award winner for the fifth consecutive year, achieving a #2 ranking among companies of its size.

Looking ahead, Credit Acceptance Corporation remains focused on optimizing its economic profit and managing its loan portfolio effectively. The management continues to evaluate and adjust its strategies to navigate the evolving market conditions and maintain its competitive edge in the financial services industry.