Credit Acceptance reported consolidated net income of $122.0 million for Q4 2025, or $10.99 per diluted share, exceeding the Zacks Consensus Estimate of $10.30 per share. Adjusted net income, which excludes a $35.8 million contingent legal loss, reached $126.0 million, or $11.35 per diluted share. Total revenue benefitted from a 5.2% increase in average loan portfolio balance to $7.9 billion, driven by stable assignment volumes of 71,731 consumer loans and $821.3 million in dollar volume. Despite a year-over-year decline in GAAP net income per share from $12.26, sequential growth was evident as Q3 net income per share stood at $9.43.

Operating expenses rose 8.7% compared with the prior quarter, reflecting investments in digital platform enhancements and expanded call-center capabilities. Provision expense increased by $16.5 million, or 12.4%, as forecasted collection rates declined modestly by 0.3%, reducing expected net cash flows by $34.2 million. Credit Acceptance maintained its advance rate discipline, resulting in a 66.8% forecasted collection rate for loans assigned in Q4 and a dealer holdback accrual of $47.6 million, supporting program stability despite slower cash-flow timing.

The company repurchased approximately 425,000 shares worth $191.4 million, representing 3.8% of shares outstanding at the start of the quarter, while ending with $1.7 billion in unrestricted cash, cash equivalents and available credit. Dealer network expanded by 1,207 new enrollments to 9,863 active dealers. Product rollouts included a digital credit application with doubled dealer adoption, a franchise-focused e-contracting experience integrated with RouteOne, and AI-powered payment and call-center solutions that processed thousands of transactions in under 60 seconds, reinforcing both dealer relationships and operational efficiency.