Key Highlights

  • Net loss was $56.6 million, or $5.43 per diluted share, against Net Income of $108.2 million, or $9.43, a year earlier.
  • Total Revenue rose 2.1% to $594.6 million from $582.4 million.
  • Provision for Credit losses climbed 170.3% to $410.9 million, including $143.7 million tied 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 totaled $161.6 million in the quarter, covering 269,150 shares.

A quarterly loss lands even as revenue edges higher

Credit Acceptance (NASDAQ:CACC) provides financing programs through a nationwide network of automobile dealers, enabling them to 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 reported a consolidated net loss of $56.6 million, or $5.43 per diluted share, compared with net income of $108.2 million, or $9.43 per diluted share, in the third quarter of 2025. Total revenue increased 2.1% to $594.6 million, with finance charges up 2.1% to $550.9 million, so the swing came from the cost side rather than the top line.

Provision for credit losses rises 170.3% to $410.9 million

Total provision for credit losses was $410.9 million, up from $152.0 million. Provision tied to forecast changes was $281.9 million, compared with $88.1 million, while provision on new Consumer Loan assignments was $129.0 million, compared with $63.9 million.

Late in the quarter the company adjusted its method for forecasting future net cash flows. The change lowered forecasted collection rates for loans assigned in 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 hits a record

Consumer Loan assignment volume reached 110,010 units and $1.4 billion, up 37.7% and 51.0% from the third quarter of 2025. Unit volume per active dealer rose 15.2%, and the company enrolled 1,350 new dealers while reporting 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 the average provision per assignment alongside the higher unit volume.

Operating costs fall 9.7% while interest expense eases

Total operating expenses declined 9.7% to $132.4 million. Salaries and wages dropped 11.5% to $75.7 million on 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 completed 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 was $6,723.7 million, up from $6,353.9 million.

Share repurchases in the quarter totaled 269,150 shares, or 2.6% of shares outstanding at the start of the quarter, for $161.6 million. For 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 next reports will show whether forecasts stabilize or need 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.