| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 83 | 12.4x | 17.6x | Top tier | |
Growth | 43 | 2.6% | 7.1% | Around median | |
Quality | 98 | — | — | Top tier | |
Safety | 24 | — | — | Bottom tier | |
Capital Return | 88 | — | 2.15% | Top tier | |
Momentum | 75 | 13.9% | 2.3% | Top tier | |
Sentiment | 21 | 2 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Credit Acceptance Corporation provides vehicle purchase financing to consumers with less-than-prime credit histories, enabling thousands of dealers to offer financing to customers who may have limited options. Its business relies on the Purchase and Portfolio Programs and on collecting cash flows from loans originated through its dealer network, while paying dealer holdback and accelerated dealer holdback; during fiscal Q2 2026, the company collected more than $1.4 billion and paid $43.5 million of those amounts. It also funded more than 84 thousand contracts, recorded more than 11 thousand active dealers, and added more than 1,400 new dealers.
In fiscal Q2 2026, revenue reached $587.4 million, compared with $580.0 million in fiscal Q1 2026 and $579.9 million in fiscal Q4 2025. Net income was $135.9 million and diluted earnings per share were $12.66, up 71% year over year, while adjusted net income was $130.1 million and adjusted earnings per share were $12.12, up 21% year over year. Based on reported revenue and net income, the net income margin was approximately 23.1%, and the company attributed earnings growth primarily to a lower provision for credit losses, the non-recurrence of a $23 million contingent loss recorded in the comparable period, and higher yields on more recent loans.
The business mix shifted further toward the Purchase Program, which management linked to increased business with franchise dealers and financing application aggregators, without disclosing a numerical percentage for each program. Loan volume by contract units declined 1% year over year, but improved from a 4.3% decline in fiscal Q1 2026, while dollar loan volume grew 0.1% after declining 4% in the previous quarter. These results combine improved profitability and greater relative portfolio stability on the one hand, with continued pressure on volume, market share, and the quality of expected cash flows on the other.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus target is $540, with the highest and lowest targets both at the same level and a Neutral consensus, reflecting the absence of a diverse range of available estimates in the data. This target is below the 52-week range high of $668.86 and above its low of $401.90; the Neutral stance balances improved fiscal Q2 2026 earnings against continued market share declines and negative cash flow revisions.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Net income reached $135.9 million and diluted earnings per share were $12.66 in fiscal Q2 2026, up 71% year over year. Adjusted net income was $130.1 million and adjusted earnings per share were $12.12, up 21% year over year. The company attributed the improvement to a lower provision for credit losses, higher yields on more recent loans, and the non-recurrence of a $23 million contingent loss recorded in the comparable period.
Contract units declined 1% year over year in fiscal Q2 2026, an improvement from the 4.3% decline in fiscal Q1 2026. Units returned to year-over-year growth in June, which continued in July, when growth exceeded 20%, benefiting partly from an easier comparison, and volume returned approximately to 2024 levels. Dollar loan volume also grew 0.1%, and the company funded more than 84 thousand contracts during the quarter.
Expected net cash flows declined by $39.1 million, or 0.3%, in fiscal Q2 2026, compared with a decline of $55.8 million, or 0.5%, in the comparable period. The provision impact of forecast changes reached $82 million, and management attributed the difference partly to slower timing for approximately $12 billion of expected cash flows because early collections were below assumptions. The fiscal 2025 vintage remained within ten basis points of the initial forecast, while the 2022 vintage remained stable during the first half of fiscal 2026.
The company is working to segment dealers, vehicles, and consumers more precisely to improve pricing, risk assessment, and sales team targeting. It developed AI-based tools that help sales teams guide dealers toward the vehicles best suited to the program, alongside an enhanced scorecard that uses consumer, transaction, and vehicle data. Management said on the August 4, 2026 call that the scorecard's initial results during fiscal Q2 2026 were encouraging, but described the overall transformation as still being at an early stage.
The number of active dealers exceeded 11 thousand in fiscal Q2 2026, marking a second consecutive record quarter, and the company added more than 1,400 new dealers. Credit Acceptance uses its integrations with RouteOne, Dealertrack, and Dealer Center to reduce friction and embed its services into the systems dealers use. Despite the network's expansion, average unit volume per active dealer declined 3.8% year over year, making improved conversion and productivity essential to sustaining growth.
Jay Martin retired as Chief Financial Officer on July 27, 2026, and became a Senior Advisor to assist with the leadership transition, while Joe Billante became the company's Chief Financial Officer. On the August 4, 2026 call, Billante presented the fiscal Q2 2026 results and emphasized his focus on executing the company's vision and maintaining capital allocation discipline. The company also stated that Ken Booth retired from the Board of Directors as part of a planned transition, after previously serving as Chief Executive Officer.
