Credit Acceptance ( (CACC) ) has released its Q2 earnings. Here is a breakdown of the information Credit Acceptance presented to its investors.
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Credit Acceptance Corporation, a prominent player in the auto finance industry, specializes in providing credit facilities to consumers through a network of active dealers. The company is recognized for its unique approach to forecasting future cash flows from consumer loans, which are assigned by dealers.
In its second quarter of 2025 earnings report, Credit Acceptance Corporation reported a consolidated net income of $87.4 million, or $7.42 per diluted share. The adjusted net income stood at $100.8 million, or $8.56 per diluted share. The company also highlighted a 6.8% increase in the average balance of its loan portfolio, reaching $8.0 billion, its largest ever.
Key financial metrics revealed a decline in consumer loan assignment unit and dollar volumes by 14.6% and 18.8%, respectively, compared to the previous year. The company repurchased approximately 530,000 shares, representing 4.5% of the shares outstanding at the beginning of the quarter. Additionally, Credit Acceptance enrolled 1,560 new dealers, bringing the total to 10,655 active dealers. The company faced a $23.4 million contingent loss related to legal matters and increased its estimated long-term effective income tax rate from 23% to 25%.
Despite the challenges, Credit Acceptance was named one of the 100 Best Companies to Work For by Great Place to Work and Fortune magazine for the eleventh time. The company continues to focus on enhancing its product offerings for dealers and consumers, as reflected in its strategic initiatives and financial adjustments.
Looking ahead, Credit Acceptance Corporation remains committed to optimizing its economic profit and adjusting its strategies to navigate the evolving financial landscape. The management’s outlook suggests a cautious yet optimistic approach to future growth and profitability, considering the current market conditions and internal adjustments.