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Mar 31
Credit Acceptance Q1 2025 Earnings Report
Reported consolidated net income of $106.3 million for the three months ended March 31, 2025
Key Takeaways
Credit Acceptance reported a significant increase in GAAP net income in Q1 2025 compared to the prior year, driven by increased finance charges and a decrease in the provision for credit losses. However, adjusted net income saw a slight decrease, and economic profit declined more substantially due to lower adjusted return on capital and increased cost of capital.
GAAP net income increased by 65.3% to $106.3 million.
Adjusted net income decreased by 2.2% to $114.8 million.
Consumer Loan assignment unit volume decreased by 10.1% and dollar volume decreased by 15.5% compared to Q1 2024.
Economic profit decreased by 31.3% to $35.3 million.
Credit Acceptance
Credit Acceptance
Credit Acceptance Revenue by Segment
Revenue by Segment
Finance Charges Revenue
CapyFin.comPremiums Earned Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
The report includes cautionary statements regarding various risks that could affect future results, but no specific forward-looking financial guidance is provided.
Challenges Ahead
- Inability to accurately forecast and estimate future collections.
- Inability to compete successfully due to competition.
- Adverse changes in economic conditions, industries, or the non-prime consumer market.
- Inability to continue to access or renew funding sources and obtain capital.
- Interest rate fluctuations may adversely affect borrowing costs, profitability, and liquidity.