Credit Acceptance Corp

creditacceptance.com

What Do They Do?

Provides automobile dealers with financing programs that help them sell vehicles to consumers who may not qualify for conventional auto financing.

How Do They Make Money?

It earns interest on consumer loans and fees charged to dealers, while consumers make loan payments directly to Credit Acceptance over the loan term. It also earns premiums from vehicle-service-contract reinsurance and income from ancillary products and remarketing fees.

FY2025 revenue

Who Are Their Customers?

Independent and franchised automobile dealers enroll in Credit Acceptance’s programs and assign consumer loans; consumers pay Credit Acceptance directly on those loans.

Do Revenues Turn Into Profits?

Yes. It kept 18 cents of every revenue dollar as net income in FY2025 and turned 45 cents into free cash flow.

Operating income, FY2025

71% of revenue

▲ +4% vs FY2024 ($1.6B, 73%)

Net income, FY2025

18% of revenue

▲ +71% vs FY2024 ($247.9M, 11%)

Free cash flow, FY2025

45% of revenue

▼ −7% vs FY2024 ($1.1B, 53%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +1%; vs $583.8M in Q2 FY2025
Net income: ▲ +55%; vs $87.4M in Q2 FY2025

Sep 17, 2026 Agreed to settle multistate litigation and change collection practices The agreements include estimated $634,000,000 in customer debt relief and new collection and dealer-disclosure requirements.
Jun 10, 2026 Appointed a new CFO as the incumbent prepared to retire

Growing. Revenue grew 25% in 4 years, from $1.9B in FY2021 to $2.3B in FY2025, about 6% a year.

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