CACC Q2 EPS Drops 17%
Credit Acceptance (NASDAQ:CACC), a major player in subprime auto lending, released its results on July 31, 2025, covering the period ending June 30. The most notable headline was a significant miss on adjusted (non-GAAP) earnings per share, which came in at $8.56 compared to analyst forecasts of $10.16. By contrast, GAAP revenue slightly exceeded expectations at $583.8 million versus an estimate of $581.12 million. The period saw modest revenue growth (GAAP) but also showcased continuing weakness in loan originations, rising expenses—especially legal—and worsening performance in recent loan vintages. Overall, the quarter demonstrated substantial challenges for both portfolio quality and profitability, despite some positives in overall loan book size and dealer network maintenance.
Source: Analyst estimates for the quarter provided by FactSet.
Credit Acceptance specializes in providing auto financing to consumers with low or no credit scores, often referred to as subprime borrowers. It partners with over 10,000 auto dealers, enabling them to sell vehicles to this underserved segment while sharing credit risk with dealers. The company's business model centers on its loan portfolio performance, legal compliance, and the breadth of its dealer network.
Source Fool.com
