Credit Acceptance Corporation reported its financial results for the second quarter and first half of 2026, showcasing a significant increase in profitability. For the three months ended June 30, 2026, the company achieved a net income of $135.9 million, or $12.66 per diluted share, compared to $87.4 million, or $7.42 per diluted share, in the same period of 2025. This 55.5% increase in net income was primarily attributed to a reduction in operating expenses and provisions for credit losses. Total revenue for the quarter rose to $587.4 million, a slight increase from $583.8 million year-over-year, driven by a 1.0% rise in finance charges.
In the first half of 2026, Credit Acceptance reported a net income of $271.7 million, or $25.04 per diluted share, up from $193.7 million, or $16.11 per diluted share, in the prior year. The increase was again largely due to lower provisions for credit losses and interest expenses. Total revenue for the six-month period reached $1.167 billion, compared to $1.155 billion in the same timeframe in 2025. The company noted a decline in consumer loan assignment unit volume, which fell by 2.8% to 180,607, while dollar volume decreased by 2.0% to $2.1 billion.
Operationally, Credit Acceptance enrolled 1,456 new dealers in its financing programs during the second quarter, bringing the total number of active dealers to a record 11,004. The company reported that 90% of active dealers utilized its enhanced deal structuring experience, which aims to optimize financing deals. Additionally, the implementation of an AI-enabled call center agent improved efficiency, with 67% of customer service calls routed to the AI system in June 2026, up from 27% in March 2026.
The company’s balance sheet as of June 30, 2026, showed total assets of $8.623 billion, a slight decrease from $8.632 billion at the end of 2025. Loans receivable increased to $11.609 billion, with an allowance for credit losses of $3.650 billion. The company’s total liabilities decreased to $7.034 billion, down from $7.108 billion at the end of the previous fiscal year. Credit Acceptance maintained a strong liquidity position, with $1.4 billion available under revolving lines of credit and unrestricted cash as of the end of the second quarter.
Looking ahead, Credit Acceptance remains focused on accurately forecasting consumer loan performance and maintaining its capital access. The company anticipates continued engagement from its dealer network and aims to leverage its technological advancements to enhance operational efficiency. The management expressed confidence in its ability to navigate market conditions and achieve its long-term objectives, despite the inherent uncertainties in the economic landscape.
About CREDIT ACCEPTANCE CORP
Credit Acceptance Corporation provides innovative auto financing solutions that enable dealerships to sell vehicles to consumers with limited or impaired credit histories. Its core business involves originating, servicing, and collecting consumer auto loans through dealer relationships, offering ancillary products like vehicle service contracts and GAP. The company operates primarily in the U.S. auto finance market, competing on service, risk-sharing, and flexible financing models.
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