Credit Acceptance Earnings Jump 83% on Loan Growth
The auto-finance lender posted $36.38 a share in 2025, reversing two years of declines.
The auto-finance lender Credit Acceptance (CACC) reported GAAP net income per diluted share of $36.38 for 2025, an 83.0% increase that erased two consecutive years of declines. The rebound marked the company’s sharpest earnings growth in at least five years and followed a 9.6% drop in 2024 and a 44.1% plunge in 2023.
The result reflected a turn in the company’s core lending business, where higher average loan balances and yields offset smaller losses on loan performance compared with the prior year. Return on equity climbed to 25.9% from 15.0% in 2024, though it remained below the 2006-2025 average of 30.3%.
For the full year, revenue rose 12% to $2.1 billion, while net income reached $680 million, up from $371 million in 2024. The company said the improvement stemmed from a 9% increase in the average balance of its loan portfolio and a 50-basis-point rise in average yield, which together lifted net interest income.
Management also tightened advance rates to dealers on newer loan vintages, widening the margin of safety without disclosing specific figures. As of September 30, 2025, total forecasted collections stood at $12.3 billion, providing a $4.5 billion cushion after estimated interest and operating expenses—a metric not previously disclosed.
Loan performance in the two-month period ended August 31, 2025, held steady with recent trends, the company said, offering no explicit year-over-year comparison. Separately, a pilot program launched in 2025 to serve borrowers without Social Security numbers or Individual Taxpayer Identification Numbers remained limited to five markets, with origination volume described as de minimis and collections in line with expectations.
The company did not provide formal guidance for 2026. In a statement, Credit Acceptance said it expects to maintain its focus on risk-adjusted returns while continuing to test new underwriting strategies.