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Mar 31, 2025
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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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