Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. It advances money ...
Credit Acceptance Corporation (CACC) is a leading provider of auto financing solutions in the United States, specializing in serving 'credit-challenged' consumers – those with limited or poor credit histories. The company was founded in 1972 by Donald Foss, a used-car dealer, with the belief that everyone deserves the opportunity to ...Credit Acceptance Corporation (CACC) is a leading provider of auto financing solutions in the United States, specializing in serving 'credit-challenged' consumers – those with limited or poor credit histories. The company was founded in 1972 by Donald Foss, a used-car dealer, with the belief that everyone deserves the opportunity to finance a vehicle. Headquartered in Southfield, Michigan, CACC operates through a network of independent and franchised automobile dealers, providing a program that enables dealers to offer financing to customers who may not qualify for traditional loans.
The company's core business model involves advancing money to dealers in exchange for the right to service the underlying consumer loans, and it also purchases loans directly from dealers, retaining the collections from consumers. Additionally, CACC is involved in reinsuring vehicle service contracts sold by dealers on vehicles financed by the company, adding a diversified revenue stream.
Financially, CACC has demonstrated robust performance over time. With a market capitalization of approximately $6.1 billion, the company has a strong return on equity of 32.4% and a net profit margin of 21.6% on a trailing twelve-month basis. The revenue per share is $221.71, and the company maintains a healthy operating cash flow, with a free cash flow yield of around 19.9%.
The company's leadership is headed by CEO Vinayak Hegde, who took the role in November 2025. Hegde has been with the company and is part of a leadership team that includes CFO Joseph Billante and Chief Sales Officer Robert Bourrier. The company employs over 2,300 people, with a significant focus on sales, customer service, and technology.
CACC's culture emphasizes innovation and community, and it has been recognized with multiple 'Top Workplaces' awards. The company aims to 'drive possibility' for both dealers and consumers, offering easy pre-qualification processes and tools to help buyers with credit challenges get back on the road. With over 50 years of operation, CACC continues to be a significant player in the auto finance sector.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$2.3B
+8.6%
+1.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$423.9M
+71.0%
+0.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+98.7%
+58.2%
+0.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+47.6%
+212.7%
-3.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+18.3%
+57.5%
-1.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$1.1B
-7.3%
-10.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+45.4%
-14.6%
-12.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
417.0%
+14.9%
-6.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.26x
—
+3.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, everyone, and welcome to the Credit Acceptance Corporation Second Quarter 2026 Earnings Call. A webcast recording and transcript of today's earnings call will be made available on Credit Acceptance's website. At this time, I would like to turn the call over to Credit Acceptance's Senior Adviser, Jay Martin.
Jay Martin: Thank you. Good afternoon, and welcome to the Credit Acceptance Corporation Quarterly Earnings Call. As you read our news release posted on the Investor Relations section of our website at ir.creditacceptance.com and as you listen to this conference call, please recognize that both contain forward-looking statements within the meaning of federal securities law. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control and which could cause actual results to differ materially from such statements. These risks and uncertainties include those spelled out in the cautionary statement regarding forward-looking information included in the news release. Consider all forward-looking statements in light of those and other risks and uncertainties. Additionally, to comply with the SEC's Regulation G, please refer to the Financial Results section of our news release, which provides tables showing how non-GAAP measures reconcile to GAAP measures. Before turning the call over to Vinayak, I'd like to share a personal note. I retired as Chief Financial Officer on July 27 and now serve as a senior adviser to assist with the leadership transition. As a result, this will be my final quarterly earnings call. It has been an honor to serve Credit Acceptance and its shareholders for the past 23 years. I am sincerely grateful for the trust and support that our investors, analysts, business partners, directors and team members have shown throughout the years. I leave my role with tremendous confidence in the future of the company under Vinayak's leadership and with Joe Billante now serving as Chief Financial Officer, I believe Credit Acceptance is well positioned to continue building on its long history of success. While I am stepping away from my day-to-day responsibilities, I will remain a shareholder and look forward to following the company's continued success in the years ahead. Thank you again for your support over the years. And with that, I'd like to introduce our Chief Executive Officer, Vinayak Hegde.
Vinayak Hegde: Good afternoon, everyone, and thank you for joining us today. The second quarter represented another step forward for Credit Acceptance. While the environment remains challenging for many non-prime consumers and the dealers who serve them, we're seeing encouraging signs that the work we have been doing across pricing, segmentation and operating efficiency is beginning to gain traction. Profitability increased, volume trends continued to improve, dealer engagement remains strong, and we are becoming more precise in how we deploy capital, underwrite …
