Key Highlights

  • The net loss was $56.6 million, or $5.43 per diluted share, versus Net Income of $108.2 million, or $9.43, a year earlier.
  • Total Revenue increased 2.1% to $594.6 million from $582.4 million.
  • Provision for Credit losses jumped 170.3% to $410.9 million, including $143.7 million linked to a forecasting methodology change.
  • Consumer Loan assignment Volume reached 110,010 units and $1.4 billion, up 37.7% and 51.0%.
  • Share repurchases came to $161.6 million in the quarter, covering 269,150 shares.

Quarterly loss arrives while revenue inches higher

Credit Acceptance (NASDAQ:CACC) offers financing programs through a nationwide network of automobile dealers, which lets them sell vehicles to consumers regardless of credit history. The company filed its Quarterly Report for the period ended September 30, 2026 on October 29, 2026.

It posted a consolidated net loss of $56.6 million, or $5.43 per diluted share, against net income of $108.2 million, or $9.43 per diluted share, in the third quarter of 2025. Total revenue rose 2.1% to $594.6 million, and finance charges increased 2.1% to $550.9 million. The swing therefore came from costs rather than from the top line.

Provision for credit losses climbs 170.3% to $410.9 million

Total provision for credit losses reached $410.9 million, up from $152.0 million. Provision tied to forecast changes was $281.9 million, versus $88.1 million, and provision on new Consumer Loan assignments was $129.0 million, compared with $63.9 million. The forecast-related component accounts for most of the increase.

Late in the quarter, the company changed how it forecasts future net cash flows. The revision lowered forecast collection rates for loans assigned from 2022 through 2026, cut forecasted net cash flows by $185.2 million, or 1.5%, and added $143.7 million to provision. Total forecasted net cash flows from the loan portfolio fell 2.5%, or $291.2 million, compared with a 0.5% decline a year earlier.

Assignment volume surges as dealer activity reaches a record

Consumer Loan assignment volume hit 110,010 units and $1.4 billion, up 37.7% and 51.0% from the third quarter of 2025. Unit volume per active dealer grew 15.2%. The company enrolled 1,350 new dealers and reported a record 12,093 active dealers.

Faster growth carries an upfront accounting cost. The provision on new assignments rose 101.9%, reflecting a 46.7% increase in average provision per assignment alongside higher unit volume.

Operating costs decline 9.7% in the quarter

Total operating expenses decreased 9.7% to $132.4 million. Salaries and wages dropped 11.5% to $75.7 million, reflecting lower headcount, reduced benefits costs and lower stock-based compensation, partly offset by higher severance. General and administrative expense fell 24.8% to $27.3 million, helped by the absence of a $15.0 million contingent loss recorded in the prior year quarter.

Funding extended and Buybacks continue

The company closed a $600.0 million Term ABS financing on August 20, 2026, matching the largest in its history, at an expected average annualized cost of 5.5%. Balance Sheet Debt stood at $6,723.7 million, up from $6,353.9 million.

Share repurchases in the quarter totaled 269,150 shares, equal to 2.6% of shares outstanding at the start of the quarter, for $161.6 million. Over the nine months, the company bought back 897,371 shares for $481.9 million.

What to watch after the forecast reset

Having lowered collection rate expectations for several loan vintages, the company's upcoming reports will show whether forecasts stabilize or require further changes. The 2026 vintage was forecast at a 65.3% collection rate as of September 30, 2026, down from 67.1% at June 30, 2026.