Credit Acceptance reported second quarter results with revenue of $415 million, missing analyst estimates of $471.8 million, while adjusted EPS of $12.12 beat estimates of $11.85. Operating margin expanded to 40.6% from 28.9% a year earlier, and CEO Vinayak Hegde said unit volumes returned to year-on-year growth by June. Analysts on the earnings call questioned a $39 million reduction in forecasted collections, persistent prepayment headwinds, higher yields on new loans, sources of unit volume improvement, and whether recent management changes could erode subprime expertise. Outgoing CFO Jay Martin said the collection forecast revision was modest and reflected minor underperformance in the 2025 vintage, while Hegde attributed volume growth to better franchise dealer integration, targeted dealer engagement, and refined product segmentation.
Credit Acceptance CorporationRevenue missed estimates but EPS beat; operating margin expanded; analysts questioned collection forecast reduction and management changes.
