We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CACC Up on Q4 Earnings Beat Despite Y/Y Rise in Expenses, Provisions
Read MoreHide Full Article
Key Takeaways
CACC reported Q4 adjusted EPS of $11.35, beating estimates and rising 11.6% y/y.
CACC's GAAP revenues rose 2.5% y/y to $579.9M, supported by higher finance charges.
CACC saw expenses climb 33.5% and provisions rise 5% y/y, partly weighing on results.
Shares of Credit Acceptance Corporation (CACC - Free Report) gained 2.9% in the after-market trading following the release of the company’s better-than-expected fourth-quarter 2025 results. Adjusted earnings per share of $11.35 surpassed the Zacks Consensus Estimate of $10.30. Also, the bottom line increased 11.6% year over year.
Results were aided by an improvement in revenues. However, an increase in operating expenses and provisions hurt the results to some extent.
Including non-recurring items, net income was $122 million or $10.99 per share compared with $151.9 million or $12.26 per share in the prior-year quarter.
Total GAAP revenues in the reported quarter were $579.9 million, up 2.5% year over year. Increased finance charges supported revenue growth. However, the top line marginally missed the Zacks Consensus Estimate of $580 million.
Quarterly provision for credit losses was $129.6 million, up 5% year over year.
Total operating expenses of $162.3 million increased 33.5% from the prior-year quarter.
As of Dec. 31, 2025, net loans receivable was $7.91 billion, up marginally from the end of December 2024.
Total assets were $8.63 billion as of the same date, down 2.5% from Dec. 31, 2024. Total shareholders’ equity was $1.52 billion, down 12.9% from Dec. 31, 2024.
Our Take on Credit Acceptance
Mounting expenses are expected to hurt CACC’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
Navient Corporation (NAVI - Free Report) reported fourth-quarter 2025 adjusted earnings per share of 39 cents, surpassing the Zacks Consensus Estimate of 31 cents. It reported earnings of 25 cents in the prior-year quarter.
NAVI’s results benefited from lower expenses and a slight decline in provisions for loan losses. However, a decrease in net interest income and other income acted as a headwind.
Capital One’s (COF - Free Report) fourth-quarter 2025 adjusted earnings of $3.86 per share missed the Zacks Consensus Estimate of $4.12. However, the bottom line compared favorably with adjusted earnings of $3.09 in the prior-year quarter.
COF’s results were primarily hurt by an increase in expenses and higher provisions. However, an improvement in net interest income, along with higher non-interest income, offered support to some extent. Also, higher loan balances created a tailwind.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CACC Up on Q4 Earnings Beat Despite Y/Y Rise in Expenses, Provisions
Key Takeaways
Shares of Credit Acceptance Corporation (CACC - Free Report) gained 2.9% in the after-market trading following the release of the company’s better-than-expected fourth-quarter 2025 results. Adjusted earnings per share of $11.35 surpassed the Zacks Consensus Estimate of $10.30. Also, the bottom line increased 11.6% year over year.
Results were aided by an improvement in revenues. However, an increase in operating expenses and provisions hurt the results to some extent.
Including non-recurring items, net income was $122 million or $10.99 per share compared with $151.9 million or $12.26 per share in the prior-year quarter.
CACC’s GAAP Revenues Improve, Operating Expenses Rise
Total GAAP revenues in the reported quarter were $579.9 million, up 2.5% year over year. Increased finance charges supported revenue growth. However, the top line marginally missed the Zacks Consensus Estimate of $580 million.
Quarterly provision for credit losses was $129.6 million, up 5% year over year.
Total operating expenses of $162.3 million increased 33.5% from the prior-year quarter.
As of Dec. 31, 2025, net loans receivable was $7.91 billion, up marginally from the end of December 2024.
Total assets were $8.63 billion as of the same date, down 2.5% from Dec. 31, 2024. Total shareholders’ equity was $1.52 billion, down 12.9% from Dec. 31, 2024.
Our Take on Credit Acceptance
Mounting expenses are expected to hurt CACC’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-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 fourth-quarter 2025 adjusted earnings per share of 39 cents, surpassing the Zacks Consensus Estimate of 31 cents. It reported earnings of 25 cents in the prior-year quarter.
NAVI’s results benefited from lower expenses and a slight decline in provisions for loan losses. However, a decrease in net interest income and other income acted as a headwind.
Capital One’s (COF - Free Report) fourth-quarter 2025 adjusted earnings of $3.86 per share missed the Zacks Consensus Estimate of $4.12. However, the bottom line compared favorably with adjusted earnings of $3.09 in the prior-year quarter.
COF’s results were primarily hurt by an increase in expenses and higher provisions. However, an improvement in net interest income, along with higher non-interest income, offered support to some extent. Also, higher loan balances created a tailwind.