A maker of auto loans for people traditional banks turn away, Credit Acceptance works through a nationwide network of car dealers to help consumers with poor or no credit get behind the wheel. It was founded in 1972 by Donald Foss, a used-car salesman who created the subprime lending model after seeing shoppers struggle to finance their purchases, and it still calls Michigan home. Under its Portfolio Program, dealers get a cash advance up front and receive extra "Dealer Holdback" cash later from the loan's collections—a naming quirk borrowed from how manufacturers quietly hold back funds for dealers.
Q2 2026 net income rose 55.5% to $135.9M as operating expenses fell 13.8%
rose 55.5% from a year ago as the quarterly loss contingency dropped out. was $587.4M, up 0.6%, was $12.66, and operating expenses fell 13.8% on the absence of a prior-year legal accrual. The company returned to loan-volume growth in June after a year of declines.
Key takeaways
rose 55.5% to $135.9M ($12.66 ) from $87.4M a year earlier, driven by lower operating expenses and a smaller credit loss provision.
Total operating expenses fell 13.8% to $134.1M, primarily because Q2 2025 included a $23.4M and headcount costs were lower.
The decreased 7.8% to $159.2M as a smaller forecasted net cash flow decline ($39.1M vs $55.8M) offset higher new-loan initial provisions.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income rose 55.5% to $135.9M driven by lower operating expenses and a smaller provision for credit losses.
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Consolidated increased to $135.9 million, or $12.66 per diluted share, from $87.4 million, or $7.42 per share, a year ago.
Consumer loan assignment unit volume declined 1.0% to 84,615, but monthly volume returned to growth in June and continued into July.
fell 9.1% to $107.4M on a lower average debt balance and a 40-basis-point drop in average cost of debt to 6.8%.
The company repurchased 262,963 shares for $141.4M and held $1.4B in liquidity including $1.43B of available .
What changed
Q2 2026 consumer loan unit volume fell 1.0% after the 4.3% Q1 decline and the 14.6% Q2 2025 drop; the flagged Q2 rebound did not resume but June turned to growth, settling the watch item with a 1.0% decline and a June inflection.
Total was $159.2M versus the $172.6M Q2 2025 figure and the $141.6M Q1 total; the Q1 watch item on whether forecast-change declines widened or reversed is met by a smaller $39.1M forecast decline versus $55.8M.
No new estimable loss or settlement payment for the NY AG and multi-state matter was reported beyond the $82.6M accrued at FY2025, leaving that watch item open.
Total debt and unused lines: liquidity was $1.4B with $1.43B available after the $450M May 2026 Term ABS and $141.4M , updating the Q1 watch with no debt total stated.
rose 0.6% to $587.4M, the slowest growth in the quarterly table, versus 8.5% a year earlier, as the post-FY2024 volume rebound has fully ended.
What to watch
Q3 2026 consumer loan unit volume to confirm June's growth holds beyond the 1.0% Q2 decline.
Q3 2026 total after the $159.2M Q2 figure to see if the $39.1M forecast decline widens or reverses.
Any settlement payment or additional accrual for the NY AG and multi-state matter beyond the $82.6M recorded at FY2025.
Average cost of debt next quarter after it fell to 6.8% to see if the decline from 7.2% continues.
Total operating expenses fell 13.8% to $134.1 million, primarily due to a $23.4 million contingent loss recognized in Q2 2025 and lower headcount-related costs.
Total decreased 7.8% to $159.2 million, as a smaller decline in forecasted net cash flows ($39.1M vs. $55.8M) more than offset higher initial provisions on new loans.
assignment unit volume declined 1.0% to 84,615, though monthly unit volume returned to growth in June and continued into July.
fell 9.1% to $107.4 million, reflecting a lower average outstanding debt balance and a 40-basis-point reduction in the average cost of debt to 6.8%.
The company repurchased 262,963 shares for $141.4 million and held $1.4 billion in liquidity, including $1.43 billion in available revolving lines of credit.
Quantitative and Qualitative Disclosures About Market Risk
Refer to our Annual Report on Form 10-K for the year ended December 31, 2025 for a complete discussion of our market risk. There have been no material changes to the market risk information included in our Annual Report on Form 10-K for the year ended December 31, 2025.
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Refer to our Annual Report on Form 10-K for the year ended December 31, 2025 for a complete discussion of our market risk. There have been no material changes to the market risk information included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Company faces routine consumer, dealer, and vendor litigation with potentially substantial damages but no specific material case is detailed here.
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The company is frequently subject to consumer claims alleging violations of lending, credit reporting, debt collection, and consumer protection laws, including the .
Claims may seek compensatory, statutory, and punitive damages, as well as , often through or individual arbitrations.
As assignee of dealer-originated consumer loans, the company may be named as a co-defendant in lawsuits primarily against dealers.
Disputes with dealers may allege breach of the dealer servicing agreement, while vendor disputes may allege breach of license agreements or contracts.
An adverse outcome or the requirement to pay filing fees for numerous individual arbitrations could materially impact financial position, liquidity, and results of operations.
The section incorporates by reference Note 15 for a description of significant litigation, but no specific case details or financial exposure estimates are provided here.