Credit Acceptance Corporation (CACC): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Credit Acceptance Corporation makes money, especially now, late in 2025. Honestly, their model is deceptively simple: they fuel vehicle sales for the 55% of adults with less-than-prime credit by buying loans directly from a nationwide network of over 10,000 auto dealers. This strategy underpins a massive operation, evidenced by their trailing 12-month revenue hitting $2.27 billion as of Q3 2025, all while managing a $9.1 billion loan portfolio. If you want to see the nine essential blocks-from their proprietary CAPS technology to how they manage credit loss provisions-that keep this high-risk financing machine profitable, check out the detailed canvas below.

Credit Acceptance Corporation (CACC) - Canvas Business Model: Key Partnerships

When you look at the engine driving Credit Acceptance Corporation (CACC), the Key Partnerships block is where the rubber meets the road, so to speak. This isn't a direct-to-consumer model; it's entirely dependent on a robust, functioning network.

The foundation of this partnership structure is the dealer network. As of the third quarter of 2025, Credit Acceptance Corporation reported having 10,180 active dealers in its programs, having enrolled 1,342 new dealers during that quarter alone. This network is crucial because these are the entities that actually originate the loans at the point of sale.

These dealers include both franchise and independent operations. Credit Acceptance Corporation is actively working to integrate deeper with them, for instance, by building and testing a new dealer experience for franchise and large independent dealers to work credit applications directly within RouteOne, complete with expanded F&I (Finance & Insurance) products.

Here's a quick look at the scale of the dealer relationship based on recent activity:

Metric	Value (as of Q3 2025)
Active Automobile Dealers	10,180
New Dealers Enrolled (Q3 2025)	1,342
Contracts Financed (Q3 2025)	Almost 80,000
Dealer Holdback Paid (Q3 2025)	$52 million

Next up, you have the capital partners. Credit Acceptance Corporation relies heavily on financial institutions to fund its loan portfolio growth, primarily through asset-backed securitization (ABS) debt. You saw a concrete example of this in early 2025; they completed a $400.0 million asset-backed non-recourse secured financing on March 27, 2025. That transaction involved conveying loans valued at approximately $500.2 million to a trust, which then issued notes with an expected average annualized cost of approximately 5.6%. Management confirmed in Q3 2025 earnings calls that they still have covenants in place for both warehouse facilities and ABS securitization debt, showing this is an ongoing, critical funding relationship.

The relationship with the national credit bureaus is non-negotiable for reporting performance. Credit Acceptance Corporation explicitly reports to the three national credit reporting agencies:

• Equifax
• Experian
• TransUnion

This reporting is an ancillary benefit of their program, giving consumers a path to improve their credit score.

Finally, the ancillary product offerings depend on third-party vendors. While specific vendor names aren't always public, the strategy involves expanding these offerings. For example, the new dealer experience being tested aims to include an enhanced deal structuring experience with expanded F&I products. This definitely means they work with external providers for things like GAP insurance or service contracts that they package with the financing.

Finance: draft 13-week cash view by Friday.

Credit Acceptance Corporation (CACC) - Canvas Business Model: Key Activities

You're looking at the core engine of Credit Acceptance Corporation (CACC), the day-to-day work that keeps the whole financing machine running. Honestly, this is where the rubber meets the road in subprime auto lending.

Subprime Auto Loan Underwriting and Purchasing

The primary activity here is assessing risk and buying contracts from dealers. Credit Acceptance Corporation sets advance rates based on forecasted collection rates, aiming for an acceptable return even if collections fall short of the initial estimate. This is the fundamental trade-off in their business.

For the third quarter of 2025, Credit Acceptance Corporation financed almost 80,000 contracts for dealers and consumers. You should note, though, that the Consumer Loan assignment unit and dollar volumes saw declines of 16.5% and 19.4%, respectively, when compared to the third quarter of 2024. This reflects the impact of their Q3 2024 scorecard change and the competitive environment.

Here's a quick look at the underwriting inputs for recent originations:

Metric	Value	Period
Average Advance (Consumer Loan)	$11,563	Q3 2025 (July 1 - Sept 30)
Initial Loan Term	60 months	Q3 2025 (July 1 - Sept 30)
Unit Volume Change vs. Prior Year	-16.5%	Q3 2025 vs. Q3 2024
Dollar Volume Change vs. Prior Year	-19.4%	Q3 2025 vs. Q3 2024

Loan Servicing and Collections on a $9.1 Billion Portfolio

Servicing involves managing the cash flow from the loans on the books, which is a massive undertaking. The portfolio itself is a key asset, representing future expected cash flows. Credit Acceptance Corporation reported that the loan portfolio remained at a record high of $9.1 billion on an adjusted basis as of the end of Q3 2025, which was a 2% increase from the prior year's third quarter.

The collections team brought in significant cash during the quarter, but performance metrics show some pressure. Overall collections for the quarter totaled $1.4 billion. However, the overall forecasted net cash flows from the loan portfolio declined by 0.5%, or $59 million, during Q3 2025, driven partly by slower forecasted net cash flow timing and declines in forecasted collection rates for certain vintages.

Key financial and performance metrics related to the portfolio include:

• Adjusted Loan Portfolio Balance (Q3 2025 End): $9.1 billion
• Average Loan Portfolio Balance (Q3 2025): $8.0 billion
• Total Collections (Q3 2025): $1.4 billion
• Forecasted Net Cash Flow Decline (Q3 2025): $59 million (0.5%)
• Contingent Legal Loss Expense (Q3 2025): $15 million

Modernizing the CAPS Loan Origination System and Technology Stack

This activity is about future efficiency and dealer experience. Credit Acceptance Corporation has been investing heavily to make their technology stack better, specifically the CAPS origination system. They are focused on speed and frictionless dealer experiences.

The results of this modernization effort are concrete. They have increased the speed at which they can deliver enhancements to their dealers by almost 70% compared to one year ago. Plus, the new digital credit application product saw more than 900 dealers submit applications using it during the quarter, showing adoption of the new tools.

Capital Markets Activities, Including Debt Issuance and Share Repurchases

Managing capital structure is a constant key activity, involving both raising funds and returning capital to shareholders. You saw Credit Acceptance Corporation actively engaging in both during the period leading up to late 2025.

In terms of returning capital, in Q3 2025, the company executed a share repurchase of approximately 230,000 shares, which represented 2.0% of the shares outstanding at the start of the quarter, totaling $107.4 million. Separately, in September 2025, the board authorized the repurchase of up to two million additional shares. On the funding side, Credit Acceptance Corporation announced the completion of a $500.0 million asset-backed non-recourse secured financing in November 2025.

Managing Dealer Relationships and Enrollment

The dealer network is Credit Acceptance Corporation's primary channel to the consumer, so managing and growing this relationship is vital. Dealers are incentivized because they share in the cash flows from the loan after assignment.

The enrollment numbers show growth in the network. Credit Acceptance Corporation enrolled 1,342 new dealers in their programs during the third quarter of 2025. This brought the total active dealer count to 10,180 for the quarter. As for payments to this channel, they paid $52 million in dealer holdback and accelerated dealer holdback payments to dealers in Q3 2025.

Here's the dealer activity summary:

• New Dealers Enrolled (Q3 2025): 1,342
• Total Active Dealers (Q3 2025): 10,180
• Dealer Holdback Payments (Q3 2025): $52 million

Finance: draft 13-week cash view by Friday.

Credit Acceptance Corporation (CACC) - Canvas Business Model: Key Resources

You're looking at the hard assets and core capabilities that make Credit Acceptance Corporation run, the stuff that can't easily be copied. These are the tangible and intangible pillars supporting the whole operation as of late 2025.

The sheer size of the outstanding loans is a primary resource. This portfolio represents future cash flows that fuel the entire business engine. Honestly, managing that scale while maintaining underwriting discipline is where the real value is created.

• Loan portfolio with an average balance of $8.0 billion (Q3 2025).

The actual portfolio balance reached a record high of $9.1 billion on an adjusted basis in Q3 2025, showing continued asset growth despite volume declines.

Next up is the proprietary technology, which is the secret sauce for underwriting and dealer interaction. They've been modernizing this core asset, which is a smart move for long-term efficiency. If onboarding takes 14+ days, churn risk rises, but Credit Acceptance Corporation's system is built for speed.

• Proprietary credit scoring and risk-modeling technology (CAPS system).

The Credit Application Processing System (CAPS) is their proprietary sub-prime scoring model that gives dealers credit approval decisions in under thirty seconds. Management noted that since starting a modernization initiative in 2022, they increased the speed of delivering enhancements to dealers by almost 70% compared to one year ago.

Access to cheap money is critical when you are in the lending business. Having a low cost of capital directly widens the spread between what you earn on loans and what it costs you to fund them. Here's the quick math on their funding advantage from Q2 2025:

Metric	Value
Cost of Capital (Q2 2025)	7.4%
Adjusted Return on Capital (Q2 2025)	8.5%
Economic Profit Spread (Q2 2025)	110 basis points

• Access to capital markets for low-cost funding (cost of capital was 7.4% in Q2 2025).

The collections and servicing team is the operational arm that converts the asset into cash. Their scale of work in the recent past demonstrates the capacity of this team. What this estimate hides is the complexity of managing a portfolio where vintages from 2022 through 2024 have underperformed expectations.

• Experienced collections and servicing team.

For context on the team's recent activity, Credit Acceptance Corporation collected $1.4 billion overall in Q2 2025 and again in Q3 2025.

Finally, the human capital and culture are a recognized asset, which is rare for a subprime lender. This recognition is defintely tied to their ability to retain talent and execute their complex model. They received this honor based on feedback from their team members.

• Strong corporate culture and team members (ranked #6 on America's Top 100 Most Loved Workplaces for 2025).

The team itself is comprised of over 2,400+ members, with 95% working remotely, indicating a highly flexible and distributed operational model.

Finance: draft 13-week cash view by Friday.

Credit Acceptance Corporation (CACC) - Canvas Business Model: Value Propositions

You're looking at the core reasons why dealers and consumers choose Credit Acceptance Corporation over other financing options, especially when credit is tight. The value proposition is built around enabling transactions that otherwise wouldn't happen.

For Consumers: Vehicle ownership regardless of poor credit history

Credit Acceptance Corporation makes vehicle ownership possible for people who have typically been turned away by traditional lenders. This access is critical because vehicles are necessary for employment, school, and healthcare access. The company has provided this life-changing opportunity to more than 4 million consumers historically. This is the foundation of their consumer segment value.

For Consumers: Opportunity to improve credit score via reporting

Beyond just getting the car, the program offers consumers a path to reenter the financial mainstream. By successfully managing a Credit Acceptance Corporation loan, consumers have the opportunity to establish a positive credit record. This is a key differentiator for those looking to rebuild their financial standing.

For Dealers: Ability to sell vehicles to the 55% of adults with other-than-prime credit

Credit Acceptance Corporation gives its dealer network the power to sell vehicles to customers who would otherwise be denied financing. This opens up a significant portion of the market. The company supports this network with substantial scale; as of the third quarter of 2025, Credit Acceptance Corporation had 10,180 active dealers.

For Dealers: Incremental sales and profit through the financing program

The structure of the financing program directly aligns dealer incentives with successful loan repayment. Dealers share in the cash flows from the loan after it is assigned. This structure incentivizes the dealer to sell a quality vehicle at an affordable price. The dealer compensation is concrete:

Dealer Benefit Component	Value/Metric (Historical/Contextual)	Source Context (Latest Data)
Share of Collections	Dealers receive 80% of collections throughout the life of a loan.	Dealer Holdback Payments in Q3 2025 were $51.9 million.
Dealer Network Size	10,180 active dealers in Q3 2025.	1,342 new dealers enrolled in Q3 2025.
Financing Volume	Financed almost 80,000 contracts in Q3 2025.	Financed over 85,000 contracts in Q2 2025.
Technology Improvement	Increased speed of enhancement delivery by almost 70% compared to one year ago (as of Q3 2025).	Modernized loan origination system.

The dealer's ability to sell to this segment is crucial, even as Credit Acceptance Corporation's market share in the used vehicle subprime segment saw a decline to 5.1% in the first eight months of 2025 from 6.5% in 2024.

For Investors: Consistent economic profitability despite high-risk loans

The business model is designed to produce acceptable aggregate returns even with loan performance volatility. Profitability hinges on the spread between forecasted collection rates and the advance rate, minus operating expenses and the cost of capital. The loan portfolio continues to grow, reaching an average balance of $8.0 billion in Q3 2025. The company reported strong profitability metrics through the first three quarters of 2025:

Financial Metric (Period Ending Sept 30, 2025)	Amount/Value
GAAP Net Income (3 Months)	$108.2 million
Adjusted Net Income Per Diluted Share (3 Months)	$10.28
Trailing Earnings Per Share (EPS)	$37.77
Trailing Price-to-Earnings (P/E) Ratio	12.20
Adjusted Return on Capital (Q2 2025)	8.5%
Cost of Capital (Q2 2025)	7.4%

The market anticipates continued earnings strength, with Credit Acceptance Corporation's EPS expected to grow by 13.07% next year, from $53.24 to $60.20 per share. The company actively manages shareholder value, repurchasing approximately 2.0% of shares outstanding in Q3 2025.

You should review the dealer servicing agreement details to fully grasp the risk-sharing mechanism. Finance: draft 13-week cash view by Friday.

Credit Acceptance Corporation (CACC) - Canvas Business Model: Customer Relationships

You're looking at how Credit Acceptance Corporation (CACC) manages the relationships with its two primary customer groups: the dealers who originate the contracts and the consumers who receive the financing. This is all underpinned by technology that keeps the process moving fast and accurately.

Automated, data-driven underwriting and loan pricing

Credit Acceptance Corporation uses its historical data to drive decisions, which is key since they finance customers who might otherwise be turned away. The company's evaluation of a loan becomes more accurate as the Consumer Loans age, because they use actual performance data in their forecast. Profitability hinges on the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. For instance, the initial spreads increased from 21.3% in 2023 to 22.1% in 2024. The average balance of the loan portfolio stood at $8.0 billion as of the third quarter of 2025, a 3.9% increase from the third quarter of 2024.

The core technology driving this is the underwriting system. Credit Acceptance Corporation modernized its CAPS origination system and delivery operating model starting in 2022. This data-driven approach is reflected in key profitability metrics from the second quarter of 2025:

Metric	Value (Q2 2025)
Adjusted Return on Capital	8.5%
Cost of Capital	7.4%

The system relies on data from credit bureau reports, customer-supplied credit application details, vehicle data, and dealer data, including initial loan term or down payment amount. This allows them to price new loans properly across a population.

Dedicated dealer relationship managers and support

The relationship with the dealer network is foundational; dealers assign the retail installment contracts immediately to Credit Acceptance Corporation in exchange for compensation. The company actively manages and grows this network. In the third quarter of 2025, Credit Acceptance Corporation enrolled 1,342 new dealers and maintained 10,180 active dealers. This dealer partnership is cemented by a compensation structure where dealers receive 80% of collections throughout the life of a loan.

Technology investments are directly aimed at dealer support. They have increased the speed at which they deliver enhancements to dealers by almost 70% compared to one year prior (Q3 2024). Furthermore, they made $51.9 million in dealer holdback and accelerated dealer holdback payments to dealers in Q3 2025.

Key dealer relationship statistics as of recent periods include:

• Dealers receive 80% of collections throughout the life of a loan.
• In Q3 2025, 1,342 new dealers were enrolled.
• The company had 10,180 active dealers in Q3 2025.
• They are testing a new dealer experience in RouteOne for franchise and large independent dealers.

Direct consumer servicing and collections activities

Credit Acceptance Corporation handles the servicing and collections directly, which is a critical touchpoint for the consumer. Total collections for the second quarter of 2025 reached $1.4 billion. The servicing agreement dictates how these collections are applied:

• First, to reimburse Credit Acceptance Corporation for certain collection costs.
• Second, to pay the servicing fee, which generally equals 20% of collections.
• Third, to reduce the aggregate advance balance and pay any other amounts due from the Dealer.

The performance of the underlying loans directly impacts servicing expectations. For Consumer Loans assigned in Q3 2025, forecasted collection rates improved, while rates for loans assigned in 2022 through 2024 declined. This dynamic resulted in a Q3 2025 decrease in forecasted net cash flows by $58.6 million, or 0.5%.

Operational efficiency in servicing is being boosted by digital enhancements. Enhancements to the consumer mobile application have contributed to fewer servicing calls. Consumers now have the option to make payments via mobile devices through personalized text messages without needing to log in.

Digital credit application product for dealers and consumers

The push toward digital interaction is evident in the adoption of the new credit application product. Credit Acceptance Corporation built and launched this digital credit application product for dealers in 2025, allowing them to capture consumer information across channels like in-store or on websites. By the third quarter of 2025, more than 900 dealers had submitted applications using this new product, which was made generally available to smaller independent dealers that quarter.

While specific CACC digital adoption rates aren't fully detailed, the broader digital lending space shows trends that inform this area, such as customer satisfaction averaging 90% on digital platforms due to convenience and speed. This focus on digital delivery supports the dealer relationship by speeding up the overall process.

Credit Acceptance Corporation (CACC) - Canvas Business Model: Channels

You're looking at how Credit Acceptance Corporation (CACC) gets its product-financing for consumers who might otherwise be turned away-to the end-user and the dealer. The channels are heavily weighted toward the dealer relationship, but digital tools are clearly becoming a bigger part of the flow.

Nationwide network of automobile dealers (primary channel)

The dealer network is the core delivery mechanism. Credit Acceptance Corporation makes vehicle ownership possible by enabling automobile dealers to sell vehicles to consumers regardless of their credit history. This channel benefits from repeat and referral sales generated by those same customers.

Here are the latest figures on the scale of this primary channel:

• Active dealers during the third quarter of 2025: 10,180.
• New dealers enrolled in the programs during the third quarter of 2025: 1,342.
• The loan portfolio balance as of the third quarter of 2025 averaged $8.0 billion.
• For context, in the second quarter of 2025, the company had 10,655 active dealers and enrolled 1,560 new dealers.

The profitability of the loans is driven by the spread between the forecasted collection rate and the advance rate, which is paid to the dealer at the time of assignment. For the three months ended September 30, 2025, Credit Acceptance Corporation reported trailing 12-month revenue of $2.27B.

Dealer-facing digital platforms (e.g., RouteOne integration)

Credit Acceptance Corporation is actively modernizing its technology stack to improve the dealer experience, which is critical for maintaining volume in a competitive market. They are focusing on making enhancements significantly faster, increasing speed by almost 70% compared to one year ago as of Q3 2025.

The digital evolution in this channel includes:

• A newly launched digital credit application product made generally available to smaller independent dealers.
• In the third quarter of 2025, more than 900 dealers submitted applications using this new digital product.
• Testing a new dealer experience for franchise and large independent dealers that will allow them to work credit applications directly within RouteOne, including enhanced deal structuring.

The company is using these digital tools to capture consumer information across various points, including in-store, websites, and marketing efforts.

Direct-to-consumer digital credit application product

While the primary channel remains dealer-centric, Credit Acceptance Corporation has enhanced its consumer-facing digital capabilities to support the dealer process and improve operational efficiency.

Key consumer digital touchpoints include:

Digital Feature	Metric/Status (Late 2025 Context)
Consumer Mobile Application	Functionality enhanced, contributing to fewer servicing calls.
Mobile Payments	Technology introduced allowing consumers to make payments via personalized text messages without logging in.
Digital Lending Trend (Industry Context)	Smartphone penetration fuels adoption, with 88% of digital lending transactions in 2025 initiated on mobile devices.

The focus here is on frictionless interaction, which helps with operational efficiency, even if the initial credit capture happens through the dealer platform. To be fair, the direct application product mentioned is primarily a tool for dealers to capture consumer data across channels.

Company website and investor relations portal

These channels serve stakeholders, including investors, regulators, and potential dealers or consumers seeking information.

The main corporate website is www.creditacceptance.com.

For financial transparency and stakeholder communication, the Investor Relations portal is a key channel, hosting official filings and earnings call information, such as the Q3 2025 Earnings Call Transcript.

• As of September 30, 2025, Credit Acceptance Corporation reported a trailing 12-month revenue of $2.27B.
• As of October 23, 2025, the stock price was $499.90, with a market capitalization of $5.62B.

Finance: draft 13-week cash view by Friday.

Credit Acceptance Corporation (CACC) - Canvas Business Model: Customer Segments

You're looking at the core groups Credit Acceptance Corporation (CACC) serves to make its business run. It's a tight ecosystem, really, built around dealers and the specific credit profile of the end borrower.

Automobile Dealers (Franchise and Independent)

Automobile dealers are the primary channel for Credit Acceptance Corporation's loan originations. They use the financing programs to move inventory that would otherwise sit unsold. The relationship is transactional but deep, as dealers rely on the platform to serve a segment of the market they couldn't otherwise touch.

Here are some recent figures showing the scale of this dealer network:

Metric	Q3 2025 Data	Q2 2025 Data	Q1 2025 Data
Active Dealers	10,180	10,655	10,789
New Dealers Enrolled (Quarter)	1,342	1,560	1,617

Looking back at the growth in the dealer base, you see a clear trend of expansion, though it seems to have moderated recently:

• Active Dealers in 2024 (highest level): 15,463
• Dealer Enrollments in 2024: 6,088
• Dealer Enrollments in 2023: 5,605
• Dealer Enrollments in 2022: 3,627

The company also recently announced the completion of a $500.0 Million Asset-Backed Financing in November 2025, which helps support the capital needed for these dealer transactions.

Subprime Consumers with Challenging or No Credit History

This is the core consumer segment. Credit Acceptance Corporation enables dealers to sell vehicles to consumers regardless of their credit history, targeting the estimated 55% of adults with other-than-prime credit. These are folks who need a vehicle for essential needs, like getting to work.

The portfolio reflects this focus. As of the third quarter of 2025, the average balance of the loan portfolio stood at $8.0 billion. This is up from $7.9 billion in Q1 2025, though Q2 2025 saw a record high of $9.1 billion on an adjusted basis. The company's market share in the used vehicle subprime segment for the first five months of 2025 was 5.4%.

The origination volume shows some recent pressure compared to the prior year:

• Consumer Loan assignment unit volume decline (Q3 2025 vs Q3 2024): 16.5% decline
• Consumer Loan assignment dollar volume decline (Q3 2025 vs Q3 2024): 19.4% decline

For context on recent activity, Credit Acceptance Corporation financed over 85,000 contracts in Q2 2025 and over 100,000 contracts in Q1 2025.

Consumers Seeking to Rebuild or Establish Credit

This segment is an ancillary benefit of the main product. By reporting to the three national credit reporting agencies, Credit Acceptance Corporation provides these consumers with an opportunity to improve their credit score. This allows them, eventually, to move on to more traditional sources of financing. The company's business model is designed to produce acceptable returns even if loan performance is worse than forecasted, which speaks to the risk inherent in this segment.

Investors in Public Equity (Nasdaq: CACC) and Securitized Debt

The equity investors are interested in the financial performance and stability of the platform. As of September 30, 2025, Credit Acceptance Corporation reported GAAP net income of $108.2 million for the quarter, translating to $9.43 per diluted share. Adjusted net income per diluted share for that same period was $10.28.

For the trailing twelve months ending September 30, 2025, revenue was $2.27B.

The public market sentiment provides a snapshot of investor valuation:

Metric	Value (as of Oct 23, 2025)
Stock Price	$499.90
Market Cap	$5.62B
Shares Outstanding	11M
Analyst Consensus Price Target	$467.5

Debt investors are also key, as evidenced by the recent extension of a $75 million revolving warehouse financing facility to September 30, 2028, with reduced servicing charges.

Finance: draft 13-week cash view by Friday.

Credit Acceptance Corporation (CACC) - Canvas Business Model: Cost Structure

You're looking at the hard costs Credit Acceptance Corporation (CACC) faces to keep the lights on and the funding flowing as of late 2025. These are the necessary drains on the revenue generated from their finance charge spread.

The cost structure is heavily influenced by credit risk management, funding the loan book, and dealer incentives. Here are the concrete figures we see from the latest reports:

Key Quarterly Cost Components (Q3 2025 unless noted):

Cost Component	Reporting Period	Financial Amount (Millions USD)
Dealer Holdback and Accelerated Payments	Q3 2025	$51.9
Contingent Loss for Legal Matters	Q3 2025	$15.0
Contingent Loss for Legal Matters	Q2 2025	$23.4
Provision for Credit Losses Change	Q2 2025	Increased by $16.5

The provision for credit losses is a direct reflection of the risk inherent in the portfolio. For instance, in Q2 2025, the implementation of a forecast adjustment increased the provision for credit losses by $16.5 million. Contrast that with the same period in 2024, where the provision for credit losses decreased by $148.0 million.

Funding the assets is a major cost. While a specific interest expense number isn't isolated here, the scale of the debt funding is clear:

• GAAP average debt for the three months ended June 30, 2025, was $6,583.8 million.
• This represented a 13.2% increase in GAAP average debt compared to the same period in 2024.

Operating expenses cover the day-to-day running of the business, which includes significant technology upgrades. You see this reflected in management commentary:

• Investments are focused on modernizing the loan origination system.
• The speed of delivering enhancements to dealers has increased by almost 70% compared to one year ago (as of Q3 2025).

Legal and regulatory compliance costs are lumpy but material. The contingent loss for legal matters in Q3 2025 was $15.0 million, which Credit Acceptance Corporation excluded from its adjusted results. That follows a $23.4 million contingent loss recognized in Q2 2025 for similar matters. The company notes that regulations could materially affect its business.

Credit Acceptance Corporation (CACC) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Credit Acceptance Corporation's profitability, which is heavily weighted toward the interest and fees generated from its consumer loan portfolio. This is where the majority of the money comes in, plain and simple.

The largest source of revenue is the finance charges derived from the consumer loan portfolio. For the third quarter ended September 30, 2025, finance charges alone reached $539.4 million. This demonstrates the sheer scale of the interest income component relative to the total revenue for that period.

To give you a sense of the overall financial scale as of late 2025, the trailing 12-month revenue for Credit Acceptance Corporation was $2.27 billion. The company's operational success translated into a GAAP net income of $108.2 million for Q3 2025. For the nine months ended September 30, 2025, total revenue was $1,737.3 million, with GAAP net income reaching $301.9 million.

Here's a quick look at the revenue scale for the third quarter of 2025 compared to the nine-month performance:

Metric	Q3 2025 Amount	Nine Months Ended Sept. 30, 2025 Amount
Total Revenue	$582.4 million	$1,737.3 million
Finance Charges (Largest Component)	$539.4 million	Data not explicitly available for nine months
GAAP Net Income	$108.2 million	$301.9 million

The remaining revenue streams, while smaller than finance charges, are still important parts of the Credit Acceptance Corporation model. These streams are composed of premiums earned on reinsurance of vehicle service contracts and other fees and income. The total Q3 2025 revenue of $582.4 million, less the $539.4 million in finance charges, leaves $43.0 million to be distributed between those two categories.

You can break down the revenue streams into these key buckets:

• Finance charges from the consumer loan portfolio (largest source).
• Premiums earned on reinsurance of vehicle service contracts.
• Other fees and income.

For example, within the 'Other fees and income' category, we see concrete transaction-related figures, such as dealer holdback payments, which totaled $51.9 million for the three months ended September 30, 2025. That's a significant flow of funds related to dealer relationships.

Finance is drafting the full 2025 revenue attribution breakdown by Friday.