Credit Acceptance (CACC) investor relations material

Executive summary

• Net income for Q2 2026 was $135.9 million ($12.66 per diluted share), up 71% year-over-year; adjusted net income was $130.1 million ($12.12 per diluted share), up 21%.

• For the first half of 2026, net income rose to $271.7 million ($25.04 per diluted share) from $193.7 million ($16.11 per diluted share) year-over-year.

• Loan portfolio averaged $8.0 billion in Q2 2026, flat year-over-year; consumer loan assignment unit volume declined 1.0% but dollar volume grew 0.1%.

• Dealer network engagement grew, with 1,456 new dealers enrolled and a record 11,004 active dealers.

• Operational highlights included record dealer engagement and expanded AI-enabled customer service capabilities.

Financial highlights

• Q2 2026 revenue was $587.4 million, up 0.6% year-over-year; net income increased 55.5%.

• Operating expenses fell 13.8% to $134.1 million, mainly due to lower general/admin costs and headcount.

• Provision for credit losses decreased 7.8% to $159.2 million, reflecting smaller forecasted net cash flow declines and slower prepayments.

• Interest expense dropped 9.1% to $107.4 million due to lower average debt and cost of debt.

• Economic profit increased 25.8% to $52.6 million, driven by higher adjusted return on capital and improved yields.

Outlook and guidance

• Focus remains on profitable growth, disciplined capital allocation, and maximizing long-term intrinsic value per share.

• Management expects further gains in operational efficiency from AI-enabled servicing and continued dealer network expansion.

• Expectation that prepayment rates will eventually normalize, though consumers are currently holding vehicles longer.