Credit Acceptance Restores July Unit Volume Growth

The Tip Desk · August 4, 2026 · 3 min read

GAAP net income was $135.9 million, or $12.66 a share, as dollar volume turned positive and monthly unit volume rose 28.0% in July.

Credit Acceptance Corporation (CACC) reported GAAP net income of $135.9 million, or $12.66 a share, for the three months ended June 30, 2026, as Consumer Loan dollar volume turned positive and monthly unit volume returned to year-over-year growth in June and July.

The auto-finance company’s dollar volume rose 0.1% to $1.0 billion from a year earlier, reversing a 4.0% decline in the first quarter. Unit volume fell 1.0% to 84,615, a sharper moderation from a 4.3% drop in the prior quarter. Monthly unit volume increased 28.0% in July versus the same period in 2025.

Chief Executive Officer Vinayak Hegde said second-quarter results reflected improved profitability, strengthening origination trends, and continued momentum across the dealer network. The company remains focused on profitable growth, disciplined capital allocation, and maximizing long-term intrinsic value per share.

Adjusted net income, a non-GAAP measure, was $130.1 million, or $12.12 a share. GAAP net income rose 55.5% from $87.4 million a year earlier, and diluted earnings rose 70.6% from $7.42 a share. The year-over-year increase was primarily due to a 13.8% decline in operating expenses, including a 42.3% drop in general and administrative expense after a $23.4 million contingent loss in the year-ago quarter related to previously disclosed legal matters.

The average loan-portfolio balance was $8.0 billion, consistent with the second quarter of 2025. Forecasted net cash flows from the portfolio declined $39.1 million, or 0.3%, after a $9.1 million, or 0.1%, decline in the first quarter, the smallest quarterly change in the past three years.

Active dealers reached a record 11,004, up 3.3% from a year earlier, while average unit volume per active dealer declined 3.8% to 7.7. The company enrolled 1,456 new dealers. Unit volume from dealers active in both periods fell 5.3% to 67,910. Volume from dealers not active in both periods rose 21.3% to 16,705.

Purchased loans rose to 31.5% of unit volume and 34.8% of dollar volume from 28.0% and 30.8% in the first quarter. Net dealer loans receivable were 71.0% of total net loans receivable as of June 30, 2026. The spread on 2026 dealer loans was 22.4% versus 22.1% on 2025 dealer loans. The spread on 2026 purchased loans was 20.3% versus 21.1% on 2025 purchased loans. The overall 2026 spread was 21.9%, consistent with 2025.

Forecasted collection rates declined for Consumer Loans assigned in 2023 through 2025. For 2026 loans, the rate rose to 67.1% from 66.3% at March 31, 2026, primarily due to a higher initial forecast on loans assigned in the second quarter.

GAAP average debt was $6,352.8 million. Average capital was $7,899.5 million. Diluted weighted average shares outstanding were 10,734,652.

The company repurchased 262,963 shares, or 2.5% of shares outstanding at the beginning of the quarter, at a cost of $141.4 million. Dealer holdback and accelerated dealer holdback payments were $43.5 million. Liquidity was $1.4 billion as of June 30, 2026.

Hegde said the company continues to make progress in a digital-first, AI-enabled strategy. In June, 67% of inbound customer-service and account-solutions calls were routed to an AI-enabled call-center agent, up from 27% in March. The company expects further gains in call handling and unit economics as it scales the platform throughout 2026. Ninety percent of active dealers used a new deal-structuring capability during the quarter.