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CACC Q1 adjusted EPS rose 14.5% y/y to $10.71, beating the consensus estimate of $10.61.
Credit Acceptance revenues increased 1.6% y/y to $580M, aided by higher finance charges.
CACC provision for credit losses fell 13.8% y/y, while operating expenses rose 4.2%.
Credit Acceptance Corporation’s (CACC - Free Report) first-quarter 2026 adjusted earnings per share of $10.71 surpassed the Zacks Consensus Estimate of $10.61. Also, the bottom line increased 14.5% 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 non-recurring items, net income was $135.8 million or $12.40 per share compared with $106.3 million or $8.66 per share in the prior-year quarter.
Total GAAP revenues were $580 million, up 1.6% year over year. Increased finance charges supported revenue growth.
Provision for credit losses was $139.6 million, down 13.8% year over year.
Total operating expenses of $141.2 million increased 4.2% from the prior-year quarter.
As of March 31, 2026, net loans receivable were $7.96 billion, up marginally from the end of December 2025.
Total assets were $8.69 billion as of the same date, up marginally from Dec. 31, 2025. Total shareholders’ equity was $1.51 billion, down marginally from Dec. 31, 2025.
Our Take on Credit Acceptance
The company is well-positioned for revenue growth, given the gradual increase in demand for consumer loans. Decent growth in dealer enrolments and active dealers is another positive. However, mounting expenses are expected to hurt CACC’s bottom-line growth to an extent in the near term.
Credit Acceptance Corporation Price, Consensus and EPS Surprise
Navient Corporation (NAVI - Free Report) reported first-quarter 2026 earnings per share of 20 cents, surpassing the Zacks Consensus Estimate of 17 cents. It reported earnings of 28 cents in the prior-year quarter.
NAVI’s results benefited from lower expenses and a decline in provisions for loan losses. However, a decrease in net interest income and other income acted as headwinds.
Capital One’s (COF - Free Report) first-quarter 2026 adjusted earnings of $4.42 per share lagged the Zacks Consensus Estimate of $4.61. However, the bottom line was up from $4.06 in the prior-year quarter.
COF’s results were hurt by a jump in provisions, higher expenses and a lower loan balance. However, a rise in net interest income and higher non-interest income offered support.
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CACC Q1 Earnings Beat as Revenues Grow Y/Y & Provisions Decline
Key Takeaways
Credit Acceptance Corporation’s (CACC - Free Report) first-quarter 2026 adjusted earnings per share of $10.71 surpassed the Zacks Consensus Estimate of $10.61. Also, the bottom line increased 14.5% 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 non-recurring items, net income was $135.8 million or $12.40 per share compared with $106.3 million or $8.66 per share in the prior-year quarter.
CACC’s GAAP Revenues Improve, Operating Expenses Rise
Total GAAP revenues were $580 million, up 1.6% year over year. Increased finance charges supported revenue growth.
Provision for credit losses was $139.6 million, down 13.8% year over year.
Total operating expenses of $141.2 million increased 4.2% from the prior-year quarter.
As of March 31, 2026, net loans receivable were $7.96 billion, up marginally from the end of December 2025.
Total assets were $8.69 billion as of the same date, up marginally from Dec. 31, 2025. Total shareholders’ equity was $1.51 billion, down marginally from Dec. 31, 2025.
Our Take on Credit Acceptance
The company is well-positioned for revenue growth, given the gradual increase in demand for consumer loans. Decent growth in dealer enrolments and active dealers is another positive. However, mounting expenses are expected to hurt CACC’s bottom-line growth to an extent in the near term.
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 #2 (Buy). 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 first-quarter 2026 earnings per share of 20 cents, surpassing the Zacks Consensus Estimate of 17 cents. It reported earnings of 28 cents in the prior-year quarter.
NAVI’s results benefited from lower expenses and a decline in provisions for loan losses. However, a decrease in net interest income and other income acted as headwinds.
Capital One’s (COF - Free Report) first-quarter 2026 adjusted earnings of $4.42 per share lagged the Zacks Consensus Estimate of $4.61. However, the bottom line was up from $4.06 in the prior-year quarter.
COF’s results were hurt by a jump in provisions, higher expenses and a lower loan balance. However, a rise in net interest income and higher non-interest income offered support.