Credit Acceptance Corporation announced its first quarter 2025 financial results on April 30, 2025, reporting consolidated net income of $106.3 million, or $8.66 per diluted share. Adjusted net income for the quarter was $114.8 million, or $9.35 per diluted share. Total revenue increased to $571.1 million, driven by a 12.3% rise in finance charges.
The company's provision for credit losses decreased by 13.0% to $161.9 million, contributing to the net income growth. The average net Loans receivable balance grew by 11.0% to $7,882.4 million. However, Consumer Loan assignment unit volumes declined by 10.1% and dollar volumes decreased by 15.5% compared to the prior year quarter.
The decline in loan assignment volumes was attributed to a scorecard change implemented in Q3 2024, which resulted in lower average advance rates, and increased competition. Forecasted collection rates for Consumer Loans assigned in 2022, 2024, and 2025 declined during the quarter, indicating ongoing underperformance in newer loan vintages. Economic profit decreased by 31.3% for the quarter compared to the prior year.
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