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

Credit Acceptance (NASDAQ:CACC) posted its earnings results on Thursday. The credit services provider reported $11.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.30 by $1.05, FiscalAI reports. Credit Acceptance had a return on equity of 28.46% and a net margin of 18.29%.The company had revenue of $408.20 million for the quarter, compared to analyst estimates of $582.63 million. During the same quarter in the previous year, the firm earned $10.17 earnings per share. The firm’s quarterly revenue was up 2.5% compared to the same quarter last year.

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 Stock Up 10.4%

Credit Acceptance stock opened at $498.24 on Friday. The business’s 50-day simple moving average is $459.19 and its two-hundred day simple moving average is $474.84. The company has a debt-to-equity ratio of 3.94, a quick ratio of 15.81 and a current ratio of 15.81. The company has a market cap of $5.50 billion, a PE ratio of 13.65 and a beta of 1.24. Credit Acceptance has a fifty-two week low of $401.90 and a fifty-two week high of $560.00.

Hedge Funds Weigh In On Credit Acceptance

A number of institutional investors have recently bought and sold shares of the business. Boston Partners purchased a new position in shares of Credit Acceptance during the third quarter worth $206,327,000. Smead Capital Management Inc. grew its holdings in Credit Acceptance by 17.0% during the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock worth $110,450,000 after acquiring an additional 31,438 shares during the period. BNP Paribas Financial Markets raised its position in Credit Acceptance by 206.4% during the third quarter. BNP Paribas Financial Markets now owns 27,997 shares of the credit services provider’s stock valued at $13,073,000 after acquiring an additional 18,861 shares in the last quarter. Bank of America Corp DE raised its position in Credit Acceptance by 115.9% during the third quarter. Bank of America Corp DE now owns 30,229 shares of the credit services provider’s stock valued at $14,115,000 after acquiring an additional 16,229 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in Credit Acceptance by 4.4% in the 3rd quarter. Dimensional Fund Advisors LP now owns 203,861 shares of the credit services provider’s stock worth $95,171,000 after purchasing an additional 8,573 shares in the last quarter. 81.71% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Credit Acceptance

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

• Positive Sentiment: Q4 adjusted earnings beat expectations — Adjusted net income was $126.0M, or $11.35 per diluted share, and consolidated net income was reported at $122.0M ($10.99 GAAP), supporting the EPS beat that investors rewarded. Credit Acceptance Announces Fourth Quarter 2025 Results
• Positive Sentiment: Management outlined a “digital-first” growth plan intended to stabilize and grow loan volumes and market share — a strategic signal that management is focused on scaling origination channels and improving unit economics. Credit Acceptance outlines digital-first growth plan as loan volumes and market share stabilize
• Neutral Sentiment: Full earnings-call transcript posted — investors can review management’s commentary on reserve build, expense drivers, origination trends and capital allocation for more detail; this reduces information uncertainty but does not itself change fundamentals. Credit Acceptance Corporation (CACC) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue growth was modest and expenses/provisions rose year‑over‑year — while EPS beat, revenue was only up ~2.5% YoY and the company flagged higher expenses and provisions, which cap near-term margin expansion and could pressure forward earnings if trends continue. CACC Up on Q4 Earnings Beat Despite Y/Y Rise in Expenses, Provisions

Analyst Ratings Changes

Several equities research analysts have weighed in on CACC shares. TD Cowen raised their target price on shares of Credit Acceptance from $460.00 to $470.00 and gave the company a “hold” rating in a research note on Friday. Weiss Ratings restated a “hold (c)” rating on shares of Credit Acceptance in a research note on Wednesday, January 21st. Two research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $470.00.

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.