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CACC Q3 Earnings Beat Estimates on Higher Revenues, Lower Provisions

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Key Takeaways

  • CACC's Q3 adjusted EPS rose 11.1% y/y to $10.28, beating estimates.
  • Revenues climbed 5.8% to $582.4 million, driven by higher finance charges and other income.
  • CACC's provisions for credit losses fell 17.7%, though operating expenses rose 13.3%.

Credit Acceptance Corporation’s (CACC - Free Report)   third-quarter 2025 adjusted earnings per share of $10.28 surpassed the Zacks Consensus Estimate of $9.61. Also, the bottom line increased 11.1% year over year.

Results were aided by an improvement in revenues and lower provisions. However, an increase in operating expenses hurt the results to some extent. 

Including the non-recurring items, net income was $108.2 million or $9.43 per share compared with $78.8 million or $6.35 per share in the prior-year quarter.

CACC’s GAAP Revenues Up, Operating Expenses Rise

Total GAAP revenues for the reported quarter were $582.4 million, up 5.8% year over year. Increased finance charges and other income supported revenue growth. However, the top line missed the Zacks Consensus Estimate of $585.9 million.

Provision for credit losses was $152 million, down 17.7% year over year. 

Total operating expenses of $146.6 million increased 13.3% from the prior-year quarter. 

As of Sept. 30, 2025, net loans receivable were $7.98 billion, up 1.6% from the end of December 2024.

Total assets were $8.64 billion as of the same date, down 2.4% from Dec. 31, 2024. Total shareholders’ equity was $1.58 billion, down from $1.75 billion as of Dec. 31, 2024.

Share Repurchase Update for CACC

In the reported quarter, Credit Acceptance repurchased 0.23 million shares.

Our Take on Credit Acceptance

Mounting expenses are expected to hurt Credit Acceptance’s bottom-line growth. Moreover, weak asset quality because of a tough operating backdrop may hamper financials. However, the company is well-positioned for revenue growth, given the gradual increase in demand for consumer loans.

Credit Acceptance Corporation Price, Consensus and EPS Surprise

 

Credit Acceptance Corporation Price, Consensus and EPS Surprise

Credit Acceptance Corporation price-consensus-eps-surprise-chart | Credit Acceptance Corporation Quote

Currently, Credit Acceptance carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of CACC’s Peers

Navient Corporation (NAVI - Free Report) reported third-quarter 2025 adjusted earnings per share of 29 cents, surpassing the Zacks Consensus Estimate of 18 cents. It reported earnings of 28 cents in the prior-year quarter.

NAVI’s results benefited from an improvement in net interest income and lower expenses. However, a decrease in other income, along with higher provision for loan losses, acted as spoilsports.

Capital One’s (COF - Free Report) third-quarter 2025 adjusted earnings of $5.95 per share widely surpassed the Zacks Consensus Estimate of $4.20. The bottom line also compared favorably with $5.48 in the prior quarter.

COF’s results benefited from an increase in net interest income and non-interest income, and lower provisions. Also, higher loans and a stable deposit balance supported the performance. However, a rise in expenses was undermining the factor for Capital One.


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