Credit Acceptance Corporation reported significant financial results for the third quarter and the first nine months of 2025, showcasing a marked increase in net income and revenue compared to the same periods in 2024. For the three months ended September 30, 2025, the company achieved a net income of $108.2 million, or $9.43 per diluted share, up from $78.8 million, or $6.35 per diluted share, in the prior year. Total revenue for the quarter rose to $582.4 million, a 5.8% increase from $550.3 million in Q3 2024. For the nine months ended September 30, 2025, net income surged to $301.9 million, or $25.50 per diluted share, compared to $96.0 million, or $7.68 per diluted share, in the same period last year, with total revenue increasing to $1.737 billion from $1.597 billion.
The company noted a decline in Consumer Loan assignment volumes, with unit and dollar volumes decreasing by 16.5% and 19.4%, respectively, in Q3 2025 compared to the same quarter in 2024. This decline was attributed to a reduction in the number of active dealers and a decrease in average loan sizes. Despite this, the average balance of the loan portfolio increased by 3.9% year-over-year, reaching approximately $8.0 billion. The company also reported a decrease in provisions for credit losses, which fell by 17.7% in Q3 2025, reflecting improved forecasts for future cash flows from its loan portfolio.
Strategically, Credit Acceptance has expanded its Dealer access to the Purchase Program, allowing for loans to consumers with higher credit ratings. This shift contributed to a higher percentage of Purchased Loans in the overall loan assignment volume. The company enrolled 1,342 new dealers during the quarter, bringing the total to 10,180 active dealers. Additionally, the company repurchased approximately 230,000 shares, representing 2.0% of its outstanding shares at the beginning of the quarter.
Operationally, the company reported a total of $51.9 million in Dealer Holdback and accelerated Dealer Holdback payments to dealers during the quarter. The company also recognized a contingent loss of $15.0 million related to ongoing legal matters. Looking ahead, Credit Acceptance remains focused on accurately forecasting Consumer Loan performance and maintaining access to capital, with a funded debt to equity ratio of 4.0 to 1 as of September 30, 2025. The company expressed confidence in its ability to navigate market conditions and continue delivering value to its stakeholders.
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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