What changed in this filing

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Item 1. Financial Statements

2026-05-05 compared with 2025-10-30 · 137 added, 324 removed, 1218 unchanged (27% of the section changed)

3 unchanged sentences

(Dollars in millions, except per share data) As of

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Cash and cash equivalents $ 25.7 $ 22.8

15 unchanged sentences

Deferred income taxes, net 356.6 354.0

Income taxes payable 11.9 117.2

Total liabilities 7,180.5 7,108.1

2 unchanged sentences

Preferred stock, $ .01 par value, 1,000,000 shares authorized, none issued

Common stock, $ .01 par value, 80,000,000 shares authorized, 11,041,431 and 12,048,151 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

Common stock, $ .01 par value, 80,000,000 shares authorized, 10,423,120 and 10,680,143 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

Paid-in capital 430.1 403.3

Retained earnings 1,083.6 1,119.2

Accumulated other comprehensive income (loss) 1.1 ( 0.3 )

Accumulated other comprehensive income 0.3 1.0

Total shareholders’ equity 1,514.1 1,523.6

4 unchanged sentences

(Dollars in millions, except per share data) For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

Finance charges $ 538.4 $ 526.7

13 unchanged sentences

Loss on extinguishment of debt — 1.2

Loss on sale of building — — — 23.7

Total costs and expenses 405.0 429.4

12 unchanged sentences

(In millions) For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

Net income $ 135.8 $ 106.3

Other comprehensive income, net of tax:

Unrealized gain on securities, net of tax 0.1 2.1 1.4 1.9

Other comprehensive income 0.1 2.1 1.4 1.9

Other comprehensive income (loss), net of tax:

Unrealized gain (loss) on securities, net of tax ( 0.7 ) 0.9

Other comprehensive income (loss) ( 0.7 ) 0.9

Comprehensive income $ 135.1 $ 107.2

2 unchanged sentences

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Dollars in millions) For the Three Months Ended September 30, 2025

(Dollars in millions) For the Three Months Ended March 31, 2026

Common Stock Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity

2 unchanged sentences

Net income — — — 135.8 — 135.8

Other comprehensive income — — — — 0.1 0.1

Other comprehensive loss — — — — ( 0.7 ) ( 0.7 )

Stock-based compensation — — 11.3 — — 11.3

4 unchanged sentences

Balance, end of period 10,423,120 $ 0.1 $ 430.1 $ 1,083.6 $ 0.3 $ 1,514.1

(Dollars in millions) For the Three Months Ended September 30, 2024

(Dollars in millions) For the Three Months Ended March 31, 2025

Common Stock Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity

7 unchanged sentences

Restricted stock units settled in common stock 11,963 — — — — —

Balance, end of period 12,111,600 $ 0.1 $ 324.5 $ 1,321.0 $ 0.9 $ 1,646.5

(Dollars in millions) For the Nine Months Ended September 30, 2025

Common Stock Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity

Number of Shares Amount

Balance, beginning of period 12,048,151 $ 0.1 $ 335.1 $ 1,414.7 $ ( 0.3 ) $ 1,749.6

Net income — — — 301.9 — 301.9

Other comprehensive income — — — — 1.4 1.4

Stock-based compensation — — 37.7 — — 37.7

Repurchase of common stock ( 1,089,033 ) — ( 2.7 ) ( 531.3 ) — ( 534.0 )

Restricted stock units settled in common stock 17,194 — — — — —

Stock options exercised 16,800 — 5.6 — — 5.6

Balance, end of period 11,747,851 $ 0.1 $ 351.7 $ 1,358.5 $ 0.6 $ 1,710.9

(Dollars in millions) For the Nine Months Ended September 30, 2024

Common Stock Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity

Number of Shares Amount

Balance, beginning of period 12,522,397 $ 0.1 $ 279.0 $ 1,475.6 $ ( 1.0 ) $ 1,753.7

Net income — — — 96.0 — 96.0

Other comprehensive income — — — — 1.9 1.9

Stock-based compensation — — 32.2 — — 32.2

Repurchase of common stock ( 462,131 ) — ( 1.3 ) ( 250.6 ) — ( 251.9 )

Restricted stock units settled to common stock 8,908 — — — — —

Stock options exercised 42,426 — 14.6 — — 14.6

Balance, end of period 12,111,600 $ 0.1 $ 324.5 $ 1,321.0 $ 0.9 $ 1,646.5

See accompanying notes to consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions) For the Nine Months Ended September 30,

(In millions) For the Three Months Ended March 31,

Cash Flows From Operating Activities:

4 unchanged sentences

Amortization 5.2 5.7

Provision (credit) for deferred income taxes ( 21.2 ) 33.4

Provision for deferred income taxes 2.8 1.6

Stock-based compensation 11.3 12.9

Loss on extinguishment of debt — 1.2

Loss on sale of building — 23.7

Other ( 0.1 ) 0.2

Change in operating assets and liabilities:

Increase in accounts payable and accrued liabilities 13.4 27.3

Increase in income taxes receivable ( 5.5 ) ( 22.1 )

Decrease in income taxes payable ( 105.3 ) ( 80.8 )

Decrease (increase) in income taxes receivable 37.8 ( 2.2 )

Increase in income taxes payable — 26.8

Decrease in other assets 0.3 3.3

10 unchanged sentences

Purchases of property and equipment ( 1.3 ) ( 0.3 )

Proceeds from sale of building — 3.2

Net cash used in investing activities ( 192.1 ) ( 291.6 )

11 unchanged sentences

Net cash provided by (used in) financing activities ( 104.0 ) 221.0

Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents ( 346.2 ) 245.4

Net increase in cash and cash equivalents and restricted cash and cash equivalents 50.7 275.6

Cash and cash equivalents and restricted cash and cash equivalents beginning of period 500.7 845.0

15 unchanged sentences

Actual results could differ from those estimates.

We have evaluated events and transactions occurring subsequent to the consolidated balance sheet date of September 30, 2025, for items that could potentially be recognized or disclosed in these financial statements.

We did not identify any subsequent events that would require disclosure in or adjustment to the consolidated financial statements.

We have evaluated events and transactions occurring subsequent to the consolidated balance sheet date of March 31, 2026, for items that could potentially be recognized or disclosed in these financial statements.

For additional information regarding subsequent events, see Note 16 .

DESCRIPTION OF BUSINESS

10 unchanged sentences

The following table shows the percentage of Consumer Loans assigned to us with either FICO ® scores below 650 or no FICO ® scores:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

For the Three Months Ended March 31,

Consumer Loan Assignment Volume 2026 2025

9 unchanged sentences

Three Months Ended Dealer Loans Purchased Loans Dealer Loans Purchased Loans

December 31, 2023 77.2 % 22.8 % 75.0 % 25.0 %

March 31, 2024 78.2 % 21.8 % 76.6 % 23.4 %

June 30, 2024 78.5 % 21.5 % 77.3 % 22.7 %

4 unchanged sentences

September 30, 2025 73.1 % 26.9 % 70.6 % 29.4 %

December 31, 2025 74.7 % 25.3 % 72.4 % 27.6 %

March 31, 2026 72.0 % 28.0 % 69.2 % 30.8 %

(1) Represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program.

1 unchanged sentence

In 2025, we expanded Dealer access to the Purchase Program for Consumer Loans to consumers with higher credit ratings.

The higher percentage of Purchased Loans in 2025 Consumer Loan assignment volume was primarily related to Consumer Loans assigned under this expanded Dealer access.

The higher percentage of Purchased Loans in Consumer Loan assignment volume since 2024 has been primarily related to Consumer Loans assigned under this expanded Dealer access.

Portfolio Program

18 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Dealers have an opportunity to receive an accelerated Dealer Holdback payment each time a pool of Consumer Loans is closed.

Dealers have the opportunity to receive accelerated Dealer Holdback payments when certain criteria are met, including the closing of pools of Consumer Loans.

The amount paid to the Dealer is calculated using a formula that considers the number of Consumer Loans assigned to the pool and the related forecasted collections and advance balance.

23 unchanged sentences

Cash equivalents consist of readily marketable securities with original maturities at the date of acquisition of three months or less.

As of September 30, 2025 and December 31, 2024, we had $ 15.6 million and $ 342.7 million, respectively, in cash and cash equivalents that were not insured by the Federal Deposit Insurance Corporation (“FDIC”).

As of March 31, 2026 and December 31, 2025, we had $ 25.4 million and $ 22.3 million, respectively, in cash and cash equivalents that were not insured by the Federal Deposit Insurance Corporation (“FDIC”).

Restricted cash and cash equivalents consist of cash pledged as collateral for secured financings and cash held in a trust for future vehicle service contract claims.

As of September 30, 2025 and December 31, 2024, we had $ 478.6 million and $ 497.0 million, respectively, in restricted cash and cash equivalents that were not insured by the FDIC.

As of March 31, 2026 and December 31, 2025, we had $ 533.4 million and $ 473.6 million, respectively, in restricted cash and cash equivalents that were not insured by the FDIC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

1 unchanged sentence

(In millions) As of

September 30, 2025 December 31, 2024 September 30, 2024 December 31, 2023

March 31, 2026 December 31, 2025 March 31, 2025 December 31, 2024

Cash and cash equivalents $ 25.7 $ 22.8 $ 528.8 $ 343.7

3 unchanged sentences

Restricted Securities Available for Sale

Restricted securities available for sale consist of amounts held in a trust for future vehicle service contract claims.

We determine the appropriate classification of our investments in debt securities at the time of purchase and reevaluate such determinations at each balance sheet date.

Debt securities for which we do not have the intent or ability to hold to maturity are classified as available for sale, and stated at fair value with unrealized gains and losses, net of income taxes included in the determination of comprehensive income and reported as a component of shareholders’ equity.

Restricted securities available for sale represent amounts held in a trust for future vehicle service contract claims.

We determine the classification of our investments in debt securities at the time of purchase and reassess that classification at each balance sheet date.

Debt securities we do not have the intent or ability to hold to maturity are classified as available for sale and stated at fair value, with unrealized gains and losses, net of income taxes, included in the determination of comprehensive income and reported as a component of shareholders’ equity.

Loans Receivable and Allowance for Credit Losses

60 unchanged sentences

Expected future collections are forecasted for each individual Consumer Loan based on the historical performance of Consumer Loans with similar characteristics, adjusted for recent trends in payment patterns.

Our forecast of expected future collections includes estimates for prepayments and post-contractual-term cash flows.

Our forecast of expected future collections includes estimates for prepayments, which historically have been lower in periods with less availability of consumer credit, and post-contractual-term cash flows.

Unless the consumer is no longer contractually obligated to pay us, we forecast future collections on each Consumer Loan for a 120 month period after the origination date.

3 unchanged sentences

Credit Quality.

The vast majority of the Consumer Loans assigned to us are made to individuals with impaired or limited credit histories.

The majority of the Consumer Loans assigned to us are made to individuals with impaired or limited credit histories.

Consumer Loans made to these individuals generally entail a higher risk of delinquency, default, and repossession and higher losses than loans made to consumers with better credit.

12 unchanged sentences

For Purchased Loans, the decline in forecasted collections is absorbed entirely by us.

For Dealer Loans, the decline in the forecasted collections is substantially offset by a decline in forecasted payments of Dealer Holdback.

For Dealer Loans, the decline in the forecasted collections is largely mitigated by a decline in forecasted payments of Dealer Holdback.

Methodolo gy Changes .

During the second quarter of 2025, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2024.

During the second quarter of 2024, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2022 through 2024.

For additional information, see Note 6 .

For the three and nine months ended September 30, 2025 and 2024, we did not make any other methodology changes for Loans that had a material impact on our financial statements.

For the three months ended March 31, 2026 and 2025, we did not make any methodology changes for Loans that had a material impact on our financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

1 unchanged sentence

Sources of Revenue.

Finance charges is comprised of:

Finance charges consists of:

(1) interest income earned on Loans;

34 unchanged sentences

VSC Re currently reinsures vehicle service contracts that are offered through one of our TPPs.

Vehicle service contract premiums, which represent the selling price of the vehicle service contract to the consumer, less fees and certain administrative costs, are contributed to a trust account controlled by VSC Re.

Vehicle service contract premiums, which represent the selling price of the vehicle service contract to the consumer, net of fees and certain administrative costs, are contributed to a trust account controlled by VSC Re.

These premiums are used to fund claims covered under the vehicle service contracts.

1 unchanged sentence

As such, our exposure to fund claims is limited to the trust assets controlled by VSC Re and our net investment in VSC Re.

Premiums from the reinsurance of vehicle service contracts are recognized over the life of the policy in proportion to expected costs of servicing those contracts.

Expected costs are determined based on our historical claims experience.

Premiums from the reinsurance of vehicle service contracts are recognized over the life of the policy in proportion to expected servicing costs, which are determined using our historical claims experience.

Claims are expensed through a provision for claims in the period the claim was incurred.

18 unchanged sentences

We are currently evaluating the impact the adoption of ASU 2023-06 will have on our consolidated financial statements and related disclosures.

Improvements to Income Tax Disclosures.

In December 2023, the FASB issued ASU 2023-09, which intends to improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction.

It also includes certain other amendments intended to improve the effectiveness of income tax disclosures.

ASU 2023-09 is effective for annual periods beginning after December 15, 2024.

Early adoption is permitted, but we have not yet adopted ASU 2023-09.

We expect that the adoption of ASU 2023-09 will expand our income tax disclosures.

Disaggregation of Income Statement Expenses.

31 unchanged sentences

A comparison of the carrying amount and estimated fair value of these financial instruments is as follows:

(In millions) As of September 30, 2025 As of December 31, 2024

(In millions) As of March 31, 2026 As of December 31, 2025

Amount Estimated Fair

9 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.

We group assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

Fair value represents an exit price — the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability.

We categorize our fair value measurements into three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

These levels are:

4 unchanged sentences

The following table provides the level of measurement used to determine the fair value for each of our financial instruments measured or disclosed at fair value:

(In millions) As of September 30, 2025

(In millions) As of March 31, 2026

Level 1 Level 2 Level 3 Total Fair Value

20 unchanged sentences

Restricted securities available for sale consist of the following:

(In millions) As of September 30, 2025

(In millions) As of March 31, 2026

Amortized Cost Gross Unrealized

16 unchanged sentences

The fair value and gross unrealized losses for restricted securities available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

(In millions) Securities Available for Sale with Gross Unrealized Losses as of September 30, 2025

(In millions) Securities Available for Sale with Gross Unrealized Losses as of March 31, 2026

Less than 12 Months 12 Months or More

18 unchanged sentences

Asset-backed securities — — 1.2 — 1.2 —

Mortgage-backed securities 1.7 — — — 1.7 —

Total restricted securities available for sale

4 unchanged sentences

(In millions) As of

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Contractual Maturity Amortized Cost Estimated Fair

8 unchanged sentences

Loans receivable and allowance for credit losses consist of the following:

(In millions) As of September 30, 2025

(In millions) As of March 31, 2026

Dealer Loans Purchased Loans Total

9 unchanged sentences

A summary of changes in Loans receivable and allowance for credit losses is as follows:

For the Three Months Ended September 30, 2025

For the Three Months Ended March 31, 2026

(In millions)

28 unchanged sentences

$ 8,824.2 $ 2,754.3 $ 11,578.5 $ ( 3,118.8 ) $ ( 503.3 ) $ ( 3,622.1 ) $ 5,705.4 $ 2,251.0 $ 7,956.4

For the Three Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

(In millions)

28 unchanged sentences

$ 8,734.1 $ 2,742.6 $ 11,476.7 $ ( 2,934.4 ) $ ( 564.1 ) $ ( 3,498.5 ) $ 5,799.7 $ 2,178.5 $ 7,978.2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

For the Nine Months Ended September 30, 2025

(In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net

Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total

Balance, beginning of period $ 8,521.0 $ 2,768.1 $ 11,289.1 $ ( 2,844.5 ) $ ( 594.3 ) $ ( 3,438.8 ) $ 5,676.5 $ 2,173.8 $ 7,850.3

Finance charges 1,630.7 669.3 2,300.0 ( 564.3 ) ( 128.9 ) ( 693.2 ) 1,066.4 540.4 1,606.8

Provision for credit losses — — — ( 294.3 ) ( 192.2 ) ( 486.5 ) ( 294.3 ) ( 192.2 ) ( 486.5 )

New Consumer Loan assignments (1) 2,170.3 864.5 3,034.8 — — — 2,170.3 864.5 3,034.8

Collections (2) ( 2,977.2 ) ( 1,246.6 ) ( 4,223.8 ) — — — ( 2,977.2 ) ( 1,246.6 ) ( 4,223.8 )

Accelerated Dealer Holdback payments 38.5 — 38.5 — — — 38.5 — 38.5

Dealer Holdback payments 144.7 — 144.7 — — — 144.7 — 144.7

Transfers (3) ( 121.3 ) 121.3 — 38.6 ( 38.6 ) — ( 82.7 ) 82.7 —

Write-offs ( 613.1 ) ( 422.6 ) ( 1,035.7 ) 613.1 422.6 1,035.7 — — —

Recoveries (4) 1.2 4.2 5.4 ( 1.2 ) ( 4.2 ) ( 5.4 ) — — —

Deferral of Loan origination costs 10.7 — 10.7 — — — 10.7 — 10.7

Balance, end of period $ 8,805.5 $ 2,758.2 $ 11,563.7 $ ( 3,052.6 ) $ ( 535.6 ) $ ( 3,588.2 ) $ 5,752.9 $ 2,222.6 $ 7,975.5

For the Nine Months Ended September 30, 2024

(In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net

Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total

Balance, beginning of period $ 7,065.5 $ 2,954.6 $ 10,020.1 $ ( 2,355.7 ) $ ( 709.1 ) $ ( 3,064.8 ) $ 4,709.8 $ 2,245.5 $ 6,955.3

Finance charges 1,411.8 683.8 2,095.6 ( 474.9 ) ( 146.2 ) ( 621.1 ) 936.9 537.6 1,474.5

Provision for credit losses — — — ( 457.5 ) ( 233.8 ) ( 691.3 ) ( 457.5 ) ( 233.8 ) ( 691.3 )

New Consumer Loan assignments (1) 2,858.3 833.8 3,692.1 — — — 2,858.3 833.8 3,692.1

Collections (2) ( 2,650.5 ) ( 1,245.2 ) ( 3,895.7 ) — — — ( 2,650.5 ) ( 1,245.2 ) ( 3,895.7 )

Accelerated Dealer Holdback payments 46.9 — 46.9 — — — 46.9 — 46.9

Dealer Holdback payments 188.1 — 188.1 — — — 188.1 — 188.1

Transfers (3) ( 105.0 ) 105.0 — 34.8 ( 34.8 ) — ( 70.2 ) 70.2 —

Write-offs ( 481.0 ) ( 486.2 ) ( 967.2 ) 481.0 486.2 967.2 — — —

Recoveries (4) 3.0 3.1 6.1 ( 3.0 ) ( 3.1 ) ( 6.1 ) — — —

Deferral of Loan origination costs 11.6 — 11.6 — — — 11.6 — 11.6

Balance, end of period $ 8,348.7 $ 2,848.9 $ 11,197.6 $ ( 2,775.3 ) $ ( 640.8 ) $ ( 3,416.1 ) $ 5,573.4 $ 2,208.1 $ 7,781.5

(1) The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program.

10 unchanged sentences

(In millions)

For the Three Months Ended September 30, 2025

Provision for Credit Losses

Purchased Loans

New Consumer Loan assignments

$ 34.9 $ 29.0 $ 63.9

Forecast changes

52.7 35.4 88.1

$ 87.6 $ 64.4 $ 152.0

(In millions) For the Three Months Ended September 30, 2024

Provision for Credit Losses Dealer Loans Purchased Loans Total

New Consumer Loan assignments $ 49.4 $ 29.4 $ 78.8

Forecast changes 74.1 31.8 105.9

Total $ 123.5 $ 61.2 $ 184.7

(In millions)

For the Nine Months Ended September 30, 2025

For the Three Months Ended March 31, 2026

Provision for Credit Losses

5 unchanged sentences

$ 71.7 $ 67.9 $ 139.6

(In millions) For the Nine Months Ended September 30, 2024

(In millions) For the Three Months Ended March 31, 2025

Provision for Credit Losses Dealer Loans Purchased Loans Total

4 unchanged sentences

Under CECL, we are required to recognize:

• a significant provision for credit losses expense at the time of the Loan's assignment to us for contractual net cash flows we do not expect to realize;

• a significant provision for credit losses expense at the time of assignment for contractual net cash flows we do not expect to realize;

• finance charge revenue in subsequent periods that is significantly in excess of our expected yield.

1 unchanged sentence

(In millions)

For the Three Months Ended September 30, 2025

For the Three Months Ended March 31, 2026

New Consumer Loan Assignments

12 unchanged sentences

$ 344.5 $ 142.9 $ 487.4

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

(In millions)

For the Three Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

New Consumer Loan Assignments

12 unchanged sentences

$ 370.9 $ 124.4 $ 495.3

(In millions) For the Nine Months Ended September 30, 2025

New Consumer Loan Assignments Dealer Loans Purchased Loans Total

Contractual net cash flows at the time of assignment (1) $ 3,462.8 $ 1,711.7 $ 5,174.5

Expected net cash flows at the time of assignment (2) 3,128.3 1,236.4 4,364.7

Loans receivable at the time of assignment (3) 2,170.3 864.5 3,034.8

Provision for credit losses expense at the time of assignment $ ( 123.8 ) $ ( 97.0 ) $ ( 220.8 )

Expected future finance charges at the time of assignment (4) 1,081.8 468.9 1,550.7

Expected net Loan income at the time of assignment (5) $ 958.0 $ 371.9 $ 1,329.9

(In millions) For the Nine Months Ended September 30, 2024

New Consumer Loan Assignments Dealer Loans Purchased Loans Total

Contractual net cash flows at the time of assignment (1) $ 4,478.9 $ 1,703.1 $ 6,182.0

Expected net cash flows at the time of assignment (2) 4,064.2 1,213.2 5,277.4

Loans receivable at the time of assignment (3) 2,858.3 833.8 3,692.1

Provision for credit losses expense at the time of assignment $ ( 155.4 ) $ ( 105.0 ) $ ( 260.4 )

Expected future finance charges at the time of assignment (4) 1,361.3 484.4 1,845.7

Expected net Loan income at the time of assignment (5) $ 1,205.9 $ 379.4 $ 1,585.3

(1) The Dealer Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under the Portfolio Program, less the related Dealer Holdback payments that we would be required to make if we collected all of the contractual repayments.

2 unchanged sentences

The Purchased Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under the Purchase Program.

The Loan amounts also represent the fair value at the time of assignment.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

(3) The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program.

2 unchanged sentences

(5) Represents the amount that expected net cash flows at the time of assignment exceed Loans receivable at the time of assignment.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

A summary of changes in expected future net cash flows is as follows:

(In millions)

For the Three Months Ended September 30, 2025

For the Three Months Ended March 31, 2026

Expected Future Net Cash Flows

13 unchanged sentences

(In millions)

For the Three Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

Expected Future Net Cash Flows

12 unchanged sentences

$ 8,383.2 $ 3,412.8 $ 11,796.0

(In millions) For the Nine Months Ended September 30, 2025

Expected Future Net Cash Flows Dealer Loans Purchased Loans Total

Balance, beginning of period $ 8,176.3 $ 3,383.9 $ 11,560.2

New Consumer Loan assignments (1) 3,128.3 1,236.4 4,364.7

Realized net cash flows (2) ( 2,794.0 ) ( 1,246.6 ) ( 4,040.6 )

Forecast changes ( 105.4 ) ( 29.9 ) ( 135.3 )

Transfers (3) ( 126.0 ) 131.2 5.2

Balance, end of period $ 8,279.2 $ 3,475.0 $ 11,754.2

(In millions) For the Nine Months Ended September 30, 2024

Expected Future Net Cash Flows Dealer Loans Purchased Loans Total

Balance, beginning of period $ 6,707.2 $ 3,472.0 $ 10,179.2

New Consumer Loan assignments (1) 4,064.2 1,213.2 5,277.4

Realized net cash flows (2) ( 2,415.5 ) ( 1,245.2 ) ( 3,660.7 )

Forecast changes ( 173.0 ) ( 109.9 ) ( 282.9 )

Transfers (3) ( 105.8 ) 110.9 5.1

Balance, end of period $ 8,077.1 $ 3,441.0 $ 11,518.1

(1) The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under the Portfolio Program, less the related Dealer Holdback payments that we expected to make.

1 unchanged sentence

(2) The Dealer Loans amount represents repayments that we collected on Consumer Loans assigned under the Portfolio Program, less the Dealer Holdback and Accelerated Dealer Holdback payments that we made.

Purchased Loans amount represents repayments that we collected on Consumer Loans assigned under the Purchase Program.

The Purchased Loans amount represents repayments that we collected on Consumer Loans assigned under the Purchase Program.

(3) Under the Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback.

We transfer the Dealer’s outstanding Dealer Loan balance, related allowance for credit losses balance, and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Credit Quality

We monitor and evaluate the credit quality of Consumer Loans assigned under our Portfolio and Purchase Programs on a monthly basis by comparing our current forecasted collection rates to our prior forecasted collection rates and our initial expectations.

We monitor and evaluate the credit quality of Consumer Loans assigned under the Portfolio and Purchase Programs on a monthly basis by comparing our current forecasted collection rates to our prior forecasted collection rates and our initial expectations.

For additional information regarding credit quality, see Note 3 .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

The following table compares our aggregated forecast of Consumer Loan collection rates as of September 30, 2025 with the aggregated forecasts as of June 30, 2025, December 31, 2024, and at the time of assignment, segmented by year of assignment:

The following table compares our aggregated forecast of Consumer Loan collection rates as of March 31, 2026 with the aggregated forecasts as of December 31, 2025 and at the time of assignment, segmented by year of assignment:

Forecasted Collection Percentage as of (1) Current Forecast Variance from

Consumer Loan

Assignment Year September 30, 2025 June 30, 2025 December 31, 2024 Initial

Forecast June 30, 2025 December 31, 2024 Initial

Assignment Year March 31, 2026 December 31, 2025 Initial

Forecast December 31, 2025 Initial

2017 64.8 % 64.8 % 64.0 % 0.0 % 0.8 %

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Consumer Loan

Assignment Year September 30, 2025 June 30, 2025 December 31, 2024 Initial

Forecast June 30, 2025 December 31, 2024 Initial

Assignment Year March 31, 2026 December 31, 2025 Initial

Forecast December 31, 2025 Initial

2017 64.1 % 64.1 % 63.8 % 0.0 % 0.3 %

8 unchanged sentences

2026 65.1 % — 65.3 % — - 0.2 %

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Purchased Loans

1 unchanged sentence

Consumer Loan

Assignment Year September 30, 2025 June 30, 2025 December 31, 2024 Initial

Forecast June 30, 2025 December 31, 2024 Initial

Assignment Year March 31, 2026 December 31, 2025 Initial

Forecast December 31, 2025 Initial

2017 66.4 % 66.4 % 64.6 % 0.0 % 1.8 %

8 unchanged sentences

2026 69.7 % — 69.9 % — - 0.2 %

(1) Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment.

Contractual repayments include both principal and interest.

Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates in the table.

Forecasted collection rates are negatively impacted by canceled Consumer Loans because the contractual amount owed is not removed from the denominator used to calculate these rates.

As a result, any declines in forecasted collection rates for Consumer Loans assigned in the most recent quarter primarily reflect the impact of cancellations rather than underlying Consumer Loan performance.

(2) The forecasted collection rates presented for Dealer Loans and Purchased Loans reflect the Consumer Loan classification at the time of assignment.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

We evaluate and adjust the expected collection rate for each Consumer Loan subsequent to assignment primarily through the monitoring of consumer payment behavior.

The following table summarizes the past-due status of Consumer Loan assignments as of September 30, 2025 and December 31, 2024, segmented by year of assignment:

The following table summarizes the past-due status of Consumer Loan assignments as of March 31, 2026 and December 31, 2025, segmented by year of assignment:

(In millions)

Total Loans as of September 30, 2025 (1) (2)

Total Loans as of March 31, 2026 (1) (2)

Pre-term Consumer Loans (3)

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(In millions)

Dealer Loans as of September 30, 2025 (1)

Dealer Loans as of March 31, 2026 (1)

Pre-term Consumer Loans (3)

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$ 6,233.5 $ 1,341.0 $ 1,094.0 $ 155.7 $ 8,824.2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

(In millions)

Purchased Loans as of September 30, 2025 (2)

Purchased Loans as of March 31, 2026 (2)

Pre-term Consumer Loans (3)

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$ 7,807.2 $ 1,904.7 $ 1,534.6 $ 265.0 $ 11,511.5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

(In millions)

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(1) As Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and measuring credit losses, the Dealer Loan amount was estimated by allocating the balance of each Dealer Loan to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan.

(2) As certain Consumer Loans are aggregated by Dealer or month of purchase for purposes of recognizing revenue and measuring credit losses, the Purchased Loan amount was estimated by allocating the balance of certain Purchased Loans to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

(2) As certain Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and measuring credit losses, the Purchased Loan amount was estimated by allocating the balance of certain Purchased Loans to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan.

(3) Represents the Loan balance attributable to Consumer Loans outstanding within their initial loan terms.

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(5) We consider a Consumer Loan to be current for purposes of forecasting expected collection rates if contractual repayments are less than 11 days past due.

The following table summarizes the write-offs for Consumer Loan assignments for th e three and nine months ended September 30, 2025 and 2024, segmented by year of assignment:

(In millions) For the Three Months Ended September 30, 2025

Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total

2020 and prior $ 63.2 $ 23.9 $ 87.1

2021 40.3 12.9 53.2

2022 70.0 23.4 93.4

2023 29.9 32.9 62.8

2024 14.1 28.3 42.4

2025 4.4 19.5 23.9

$ 221.9 $ 140.9 $ 362.8

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

(In millions) For the Three Months Ended September 30, 2024

Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total

2019 and prior $ 43.4 $ 31.7 $ 75.1

2020 27.9 17.5 45.4

2021 33.2 22.7 55.9

2022 47.0 33.4 80.4

2023 11.5 36.6 48.1

2024 4.0 17.9 21.9

$ 167.0 $ 159.8 $ 326.8

(In millions) For the Nine Months Ended September 30, 2025

The following table summarizes the write-offs for Consumer Loan assignments for th e three months ended March 31, 2026 and 2025, segmented by year of assignment:

(In millions) For the Three Months Ended March 31, 2026

Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total

6 unchanged sentences

$ 226.9 $ 133.4 $ 360.3

(In millions) For the Nine Months Ended September 30, 2024

(In millions) For the Three Months Ended March 31, 2025

Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total

7 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Consumer Loans assigned in 2024 prior to the implementation of our scorecard adjustment during the third quarter of 2024 had underperformed relative to the forecast adjustment we implemented during the second quarter of 2024.

Accordingly, in the second quarter of 2025, we applied an adjustment to that segment of the Consumer Loans assigned in 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends.

Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses.

The implementation of this forecast adjustment during the second quarter of 2025 reduced forecasted net cash flows by $ 18.6 million, or 0.2 %, and increased provision for credit losses by $ 16.5 million.

Consumer Loans assigned in 2022 had continued to underperform our expectations for several quarters.

Consumer Loans assigned in 2023 had also begun exhibiting similar trends of underperformance, although not as severe as Consumer Loans assigned in 2022.

During the second quarter of 2024, we determined that we had sufficient Consumer Loan performance experience to estimate the magnitude by which we expected Consumer Loans assigned in 2022 through 2024 would likely underperform our historical collection rates on Consumer Loans with similar characteristics.

Accordingly, we applied an adjustment to Consumer Loans assigned in 2022 through 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends.

Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses.

The implementation of this forecast adjustment during the second quarter of 2024 reduced forecasted net cash flows by $ 147.2 million, or 1.4 %, and increased provision for credit losses by $ 127.5 million.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

A summary of reinsurance activity is as follows:

(In millions) For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

Net assumed written premiums $ 28.0 $ 25.6

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(In millions) As of

Balance Sheet Location September 30, 2025 December 31, 2024

Balance Sheet Location March 31, 2026 December 31, 2025

Trust assets Restricted cash and cash equivalents $ 1.7 $ 0.7

4 unchanged sentences

Other income consists of the following:

(In millions) For the Three Months Ended September 30, For the Nine Months Ended September 30,

2025 2024 2025 2024

(In millions) For the Three Months Ended March 31,

Ancillary product profit sharing $ 9.1 $ 8.7

3 unchanged sentences

Total $ 18.4 $ 20.9

Ancillary product profit sharing consists of payments received from TPPs based upon the performance of vehicle service contracts and GAP contracts, and is recognized as income over the life of the vehicle service contracts and GAP contracts.

Interest consists of income earned on cash and cash equivalents, restricted cash and cash equivalents, and restricted securities available for sale.

Ancillary product profit sharing consists of payments received from TPPs based on the performance of vehicle service contracts and GAP contracts.

These amounts are recognized as income over the life of the related contracts.

Interest income is earned on cash and cash equivalents, restricted cash and cash equivalents, and restricted securities available for sale.

Interest income is generally recognized over time as it is earned.

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The following table disaggregates our other income by major source of income and timing of the revenue recognition:

(In millions) For the Three Months Ended September 30, 2025

Ancillary Product Profit Sharing Interest Remarketing Fees Other Total Other Income

Source of Income

Third-Party Providers $ 9.5 $ 5.7 $ — $ 0.1 $ 15.3

Dealers — — 3.4 0.2 3.6

Total $ 9.5 $ 5.7 $ 3.4 $ 0.3 $ 18.9

Timing of Revenue Recognition

Over time $ 9.5 $ 5.7 $ — $ — $ 15.2

At a point in time — — 3.4 0.3 3.7

Total $ 9.5 $ 5.7 $ 3.4 $ 0.3 $ 18.9

(In millions) For the Nine Months Ended September 30, 2025

(In millions) For the Three Months Ended March 31, 2026

Ancillary Product Profit Sharing Interest Remarketing Fees Other Total Other Income

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Debt consists of the following:

(In millions) As of September 30, 2025

(In millions) As of March 31, 2026

Principal Outstanding Unamortized Debt Issuance Costs Unamortized Discount Carrying

9 unchanged sentences

Total debt $ 6,387.9 $ ( 33.9 ) $ ( 0.1 ) $ 6,353.9

(1) Excludes deferred debt issuance costs of $ 4.9 million and $ 4.4 million as of September 30, 2025 and December 31, 2024, respectively, which are included in other assets.

(1) Excludes deferred debt issuance costs of $ 4.0 million and $ 4.5 million as of March 31, 2026 and December 31, 2025, respectively, which are included in other assets.

(2) Warehouse facilities and Term ABS financings.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

General information for each of our financing transactions in place as of September 30, 2025 is as follows:

General information for each of our financing transactions in place as of March 31, 2026 is as follows:

(Dollars in millions)

2 unchanged sentences

Amount Interest Rate Basis as of

September 30, 2025

March 31, 2026

Revolving Secured Line of Credit Facility n/a 06/22/2028 $ 390.0 At our option, either the Secured Overnight Financing Rate (SOFR) plus 197.5 basis points or the prime rate plus 87.5 basis points

7 unchanged sentences

Term ABS 2021-1 (2) Credit Acceptance Funding LLC 2021-1 01/18/2028 (6) 100.0 SOFR plus 140.0 basis points

Term ABS 2022-1 (2) Credit Acceptance Funding LLC 2022-1 06/17/2024 (3) 350.0 Fixed rate

Term ABS 2022-2 (2) Credit Acceptance Funding LLC 2022-2 06/15/2027 (5) 300.0 SOFR plus 246.4 basis points

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Term ABS 2023-3 (2) Credit Acceptance Funding LLC 2023-3 08/15/2025 (3) 400.0 Fixed rate

Term ABS 2023-A (2) Credit Acceptance Funding LLC 2023-A 12/15/2025 (5) 200.0 Fixed rate

Term ABS 2023-5 (2) Credit Acceptance Funding LLC 2023-5 12/15/2025 (3) 294.0 Fixed rate

5 unchanged sentences

Term ABS 2025-1 (2) Credit Acceptance Funding LLC 2025-1 03/15/2027 (3) 400.0 Fixed rate

Term ABS 2025-2 (2) Credit Acceptance Funding LLC 2025-2 11/15/2027 (3) 500.0 Fixed rate

2028 Senior Notes n/a 12/15/2028 600.0 Fixed rate

4 unchanged sentences

The outstanding balance will amortize after the revolving maturity date based on the cash flows of the pledged assets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

(4) Represents the revolving maturity date.

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If we do not elect this option, the outstanding balance will amortize based on the cash flows of the pledged assets.

(6) Represents the revolving maturity date.

The outstanding balance will amortize after the revolving maturity date and any amounts remaining on January 15, 2033 will be due on that date.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Additional information related to the amounts outstanding on each facility is as follows:

(In millions) For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

Revolving Secured Lines of Credit

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(Dollars in millions) As of

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Revolving Secured Lines of Credit

44 unchanged sentences

(Dollars in millions) As of

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Term ABS 2022-1

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(Dollars in millions) As of

September 30, 2025 December 31, 2024

Term ABS 2024-A

Principal balance outstanding $ 200.0 $ 200.0

Loans pledged as collateral 211.7 248.4

Restricted cash and cash equivalents pledged as collateral 16.7 18.1

Interest rate 7.45 % 7.45 %

March 31, 2026 December 31, 2025

Term ABS 2024-2

8 unchanged sentences

Interest rate 4.91 % 4.91 %

Term ABS 2024-3

Term ABS 2024-B

Principal balance outstanding $ 300.0 $ 300.0

2 unchanged sentences

Interest rate 6.13 % 6.13 %

Term ABS 2024-B

Term ABS 2025-1

Principal balance outstanding $ 400.0 $ 400.0

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Interest rate 6.625 % 6.625 %

2030 Senior Notes

Principal balance outstanding $ 500.0 $ —

Interest rate 6.625 % — %

(1) Availability may be limited by the amount of assets pledged as collateral.

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In connection with each of these transactions, we conveyed Loans on an arms-length basis to a Funding LLC for cash and the sole membership interest in that Funding LLC.

In turn, each Funding LLC, other than the Funding LLCs for the Term ABS 2019-2, 2021-1, 2022-2, 2023-A, and 2024-B financings, conveyed the Loans to the respective trusts that issued notes to qualified institutional investors.

The Funding LLCs for the Term ABS 2019-2, 2021-1, 2022-2, 2023-A, and 2024-B financings pledged the Loans for the benefit of their respective lenders.

The Term ABS 2023-1, 2023-2, 2023-3, 2023-A, 2023-5, 2024-A, 2024-1, 2024-2, 2024-3, and 2025-1 financings each consist of three classes of notes (or, in the case of the Term ABS 2023-A and Term ABS 2024-B, three classes of loans), while the Term ABS 2022-1 and Term ABS 2022-3 financings consist of four classes of notes.

In turn, each Funding LLC, other than the Funding LLCs for the Term ABS 2019-2, 2021-1, 2022-2, and 2024-B financings, conveyed the Loans to the respective trusts that issued notes to qualified institutional investors.

The Funding LLCs for the Term ABS 2019-2, 2021-1, 2022-2, and 2024-B financings pledged the Loans for the benefit of their respective lenders.

The Term ABS 2023-1, 2023-2, 2023-3, 2023-5, 2024-A, 2024-1, 2024-2, 2024-3, 2025-1, and 2025-2 financings each consist of three classes of notes (or, in the case of the Term ABS 2024-B, three classes of loans), while the Term ABS 2022-3 financing consists of four classes of notes.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Each Term ABS financing at the time of issuance has a specified revolving period during which we are likely to convey additional Loans to the applicable Funding LLC.

Each Funding LLC (other than the Funding LLCs of the Term ABS 2019-2, 2021-1, 2022-2, 2023-A, and 2024-B financings) will then convey the Loans to its respective trust.

Each Funding LLC (other than the Funding LLCs of the Term ABS 2019-2, 2021-1, 2022-2, and 2024-B financings) will then convey the Loans to its respective trust.

At the end of the applicable revolving period, the debt outstanding under each financing will begin to amortize.

5 unchanged sentences

Except for the servicing fee and Dealer Holdback payments due to Dealers, if a Term ABS financing is amortizing, we do not have any rights in any portion of such collections until all outstanding principal, accrued and unpaid interest, fees, and other related costs have been paid in full.

If a Term ABS financing is in its revolving period, the applicable trust or Funding LLC is entitled to the portion of such collections available after application of any amounts necessary to acquire additional Loans from us and to pay accrued interest on the debt and any other transaction expenses, provided that any necessary principal payments are made to compensate for certain reductions in the balance of eligible loans or, in the case of the Term ABS 2019-2 financing and Term ABS financings occurring after the Term ABS 2021-3 financing, certain reductions in forecasted collections.

If a Term ABS financing is in its revolving period, the applicable trust or Funding LLC is entitled to the portion of such collections available after application of any amounts necessary to acquire additional Loans from us and to pay accrued interest on the debt and any other transaction expenses, provided that any necessary principal payments are made to compensate for certain reductions in the balance of eligible loans and, except in the case of Term ABS 2021-1, certain reductions in forecasted collections.

In addition, in our capacity as servicer of the Loans, we have a limited right to exercise a “clean-up call” option to purchase Loans from the Funding LLCs and/or the trusts under certain specified circumstances.

19 unchanged sentences

Debt Covenants

As of September 30, 2025, we were in compliance with covenants under our revolving secured line of credit facility, our Warehouse facilities, our Term ABS financings, the senior notes indentures, and the RTP Facility.

As of March 31, 2026, we were in compliance with the covenants under our revolving secured line of credit facility, our Warehouse facilities, our Term ABS financings, the senior notes indentures, and the RTP Facility.

Our revolving secured line of credit facility and our Warehouse facilities include covenants that require the maintenance of certain financial ratios and other financial conditions.

7 unchanged sentences

For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

Amount Percentage Amount Percentage

federal statutory income tax rate $ 36.7 21.0 % $ 29.8 21.0 %

1 unchanged sentence

Non-deductible executive compensation expense - 1.2 - 0.7 % 1.6 1.1 %

Tax deficiency (excess tax benefit) from stock-based compensation 0.1 % 0.0 % 0.1 % - 0.4 %

Other 0.0 % 0.0 % 0.1 % 0.1 %

Tax deficiency from stock-based compensation 0.2 0.1 % 0.1 0.1 %

Effective income tax rate $ 39.2 22.4 % $ 35.4 25.0 %

State and local income taxes

For the three months ended September 30, 2025, the impact of state and local income taxes on our effective income tax rate increased from the same period in 2024, primarily due to a revision of deferred tax estimates during the third quarter of 2025.

For the nine months ended September 30, 2025, the impact of state and local income taxes on our effective income tax rate decreased from the same period in 2024, primarily due to:

• The increased impact of an adjustment to an uncertain tax position for state income taxes in the second quarter of 2024, primarily due to lower pre-tax income for the nine months ended September 30, 2024.

• Changes in state tax laws enacted during the second quarter of 2024 that were effective retroactively to the beginning of 2024.

For the three months ended March 31, 2026, the impact of state and local income taxes on our effective income tax rate decreased from the same period in 2025, primarily due to a decrease in the proportion of our consolidated net income reserved for uncertain tax positions.

Non-deductible executive compensation expense

We recognize non-deductible executive compensation expense as an increase in provision for income taxes.

For the three months ended September 30, 2025, the impact of non-deductible executive compensation expense on our effective income tax rate decreased from the same period in 2024, primarily due to a decrease in non-deductible executive compensation expense due to the timing of stock option exercises.

For the nine months ended September 30, 2025, the impact of non-deductible executive compensation expense on our effective income tax rate decreased from the same period in 2024, primarily due to an increase in pre-tax income.

In the normal course of business, we recognize non-deductible executive compensation expense as an increase in provision for income taxes.

For the three months ended March 31, 2026, the impact of non-deductible executive compensation expense decreased our provision for income taxes and our effective income tax rate, primarily as a result of the reversal of previously recognized non-deductible executive compensation expense due to the retirement of certain executive officers during the first quarter of 2026.

Tax deficiency or excess tax benefit from stock-based compensation

2 unchanged sentences

Tax deficiencies increase our effective income tax rate, while excess tax benefits reduce our effective income tax rate.

We recognized a tax deficiency for the nine months ended September 30, 2025 and an excess tax benefit for the same period in 2024.

We recognized a tax deficiency for the three months ended March 31, 2026 and 2025.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

4 unchanged sentences

For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

Weighted average shares outstanding:

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For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

Stock options 47,000 47,000

2 unchanged sentences

STOCK REPURCHASES

The following table summarizes our stock repurchases for the three and nine months ended September 30, 2025 and 2024:

(Dollars in millions) For the Three Months Ended September 30,

Stock Repurchases Number of Shares Repurchased Cost (1) Number of Shares Repurchased Cost (1)

Open Market (2) 230,064 $ 107.3 — $ —

Other (3) 301 0.1 86 —

Total 230,365 $ 107.4 86 $ —

(Dollars in millions) For the Nine Months Ended September 30,

The following table summarizes our stock repurchases for the three months ended March 31, 2026 and 2025:

(Dollars in millions) For the Three Months Ended March 31,

Stock Repurchases Number of Shares Repurchased Cost Number of Shares Repurchased Cost

5 unchanged sentences

On September 29, 2025, our board of directors authorized the repurchase of up to two million shares of our common stock in addition to the board’s prior authorizations.

As of September 30, 2025, we had authorization to repurchase 2,161,067 shares of our common stock.

As of March 31, 2026, we had authorization to repurchase 1,411,075 shares of our common stock.

(3) Represents shares of common stock released to us by team members as payment of tax withholdings upon the vesting of restricted stock units and the settlement of restricted stock units in common stock.

7 unchanged sentences

Forfeited ( 103,306 ) 472.96

Outstanding as of September 30, 2025

Outstanding as of March 31, 2026

591,965 $ 437.96

The forfeitures of unvested restricted stock units were primarily due to the retirements of our former Chief Executive Officer, our former Chief Analytics Officer, and our former Chief Sales Officer during the first quarter of 2026.

Stock-based compensation expense consists of the following:

(In millions) For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

Restricted stock units $ 10.8 $ 10.6

1 unchanged sentence

Total $ 11.3 $ 12.9

Pursuant to our Amended and Restated Incentive Compensation Plan, we can grant stock-based awards in the form of restricted stock, restricted stock units, and stock options to team members, officers, directors, and contractors.

Instead of a short-term compensation program providing for rolling, annual equity awards to our executive officers and senior leaders, we utilize a multi-year compensation program that grants a one-time equity award at the beginning of the compensation program period that is intended to incentivize recipients over the multi-year compensation period.

Our current compensation program for executive officers and senior leaders covers the 2025 through 2034 compensation period and included a one-time equity award in December 2024 (except in the case of our Chief Executive Officer, who received a one-time equity award in January 2025), with a vesting period of 10 years.

Under our Amended and Restated Incentive Compensation Plan, we may grant stock-based awards — including restricted stock, restricted stock units, and stock options — to team members, officers, directors, and contractors.

Rather than providing annual rolling equity awards to our executive officers and senior leaders, we use a multi-year compensation program that grants a one-time equity award at the beginning of the compensation program period that is intended to incentivize recipients over the multi-year compensation period.

Our current compensation program for executive officers and senior leaders consists primarily of one-time equity awards with a 10-year vesting period.

Based on the stock-based awards that are currently outstanding, we expect to recognize future stock-based compensation expense as follows:

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Geographic Information

For the three and nine months ended September 30, 2025 and 2024, all of our revenues were derived from the United States.

As of September 30, 2025 and 2024, all of our long-lived assets were located in the United States.

For the three months ended March 31, 2026 and 2025, all of our revenues were derived from the United States.

As of March 31, 2026 and 2025, all of our long-lived assets were located in the United States.

Products and Services Information

2 unchanged sentences

Major Customer Information

We did not have any Dealers that provided 10% or more of our revenue during the three and nine months ended September 30, 2025 and 2024.

Additionally, no single Dealer’s Loans receivable balance accounted for more than 10% of total Loans receivable as of September 30, 2025 and 2024.

We did not have any Dealers that provided 10% or more of our revenue during the three months ended March 31, 2026 and 2025.

Additionally, no single Dealer’s Loans receivable balance accounted for more than 10% of total Loans receivable as of March 31, 2026 and 2025.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

2 unchanged sentences

In the normal course of business and as a result of the consumer-oriented nature of the industry in which we operate, we and other industry participants are frequently subject to various consumer claims, litigation, and regulatory investigations seeking damages, fines, and statutory penalties.

The claims allege, among other theories of liability, violations of state, federal, and foreign truth-in-lending, credit availability, credit reporting, consumer protection, warranty, debt collection, insurance, and other consumer-oriented laws and regulations, including claims seeking damages for alleged physical and mental harm relating to the repossession and sale of consumers’ vehicles and other debt collection activities.

The claims allege, among other theories of liability, violations of state, federal, and foreign truth-in-lending, credit availability, credit reporting, consumer protection, warranty, debt collection, insurance, and other consumer-oriented laws and regulations, including claims under the Telephone Consumer Protection Act (“TCPA”), seeking damages for alleged physical and mental harm relating to the repossession and sale of consumers’ vehicles and other debt collection activities.

As the assignee of Consumer Loans originated by Dealers, we may also be named as a co-defendant in lawsuits filed by consumers principally against Dealers.

10 unchanged sentences

Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated.

The total recorded accrual balance as of September 30, 2025 for these matters was $ 46.8 million.

The total recorded accrual balance as of March 31, 2026 for these matters was $ 82.6 million.

An adverse ultimate disposition in any action to which we are a party or otherwise subject could have a material adverse impact on our financial position, liquidity, and results of operations.

On April 7, 2025, a putative class action was filed against the Company in the United States District Court for the Eastern District of Michigan alleging that the Company violated the Telephone Consumer Protection Act (“TCPA”) by allegedly calling the cellular phones of members of the putative class without prior express consent and with the use of an artificial or prerecorded voice.

On April 7, 2025, a putative class action was filed against the Company in the United States District Court for the Eastern District of Michigan alleging that the Company violated the TCPA by allegedly calling the cellular phones of members of the putative class without prior express consent and with the use of an artificial or prerecorded voice.

The plaintiff seeks to represent a nationwide class and requests damages, injunctive relief, and attorneys’ fees.

1 unchanged sentence

Rather than responding to the motion to dismiss, the plaintiff filed a first amended complaint on May 29, 2025.

On June 12, 2025, the Company filed a motion to dismiss the first amended complaint, which is now fully briefed.

On June 12, 2025, the Company filed a motion to dismiss the first amended complaint.

On February 4, 2026, the court issued an opinion and order granting in part and denying in part the Company’s motion to dismiss.

The Company intends to vigorously defend itself in this matter.

On December 1, 2021, we received a subpoena from the Office of the Attorney General for the State of California seeking documents and information regarding GAP products, GAP product administration, and refunds.

We cooperated with this inquiry and, on May 8, 2025, the Office of the Attorney General for the State of California confirmed that the matter is closed.

On May 7, 2019, we received a subpoena from the Consumer Frauds and Protection Bureau of the Office of the New York State Attorney General, relating to the Company’s origination and collection policies and procedures in the state of New York.

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On April 24, 2025, the Bureau filed an unopposed motion to withdraw as plaintiff, and on April 29, 2025, the court granted that motion and ordered that the Bureau is no longer a plaintiff in the litigation.

In September 2025, we made an offer to jointly settle this matter and the multi-state matter discussed below, on terms that include, among other things, a proposed cash payment of $ 45.0 million.

The Company intends to vigorously defend itself in this matter.

In September 2025, we made an offer to jointly settle this matter and the multi-state matter discussed below on terms that included, among other things, a proposed cash payment of $ 45.0 million.

In January 2026, we reached preliminary alignment with representatives of the agencies involved in this matter and the multi-state matter discussed below on certain material terms of a potential settlement of those legal matters, including a potential cash payment by us of $75.5 million.

Discussions with respect to resolution of those matters are ongoing.

Until this matter is fully and finally resolved, the Company intends to vigorously defend itself.

On March 18, 2016, we received a subpoena from the Attorney General of the State of Maryland, relating to the Company’s repossession and sale policies and procedures in the state of Maryland.

4 unchanged sentences

We are cooperating with these investigations and cannot predict their eventual scope, duration, or outcome at this time.

In September 2025, we made an offer to jointly settle this matter and the New York Attorney General matter discussed above, on terms that include, among other things, a proposed cash payment of $ 45.0 million.

In September 2025, we made an offer to jointly settle this matter and the New York Attorney General matter discussed above on terms that included, among other things, a proposed cash payment of $ 45.0 million.

In January 2026, we reached preliminary alignment with representatives of the agencies involved in this matter and the New York Attorney General matter discussed above on certain material terms of a potential settlement of those legal matters, including a potential cash payment by us of $75.5 million.

Discussions with respect to resolution of those matters are ongoing.

Until this matter is fully and finally resolved, the Company intends to vigorously defend itself.

SUBSEQUENT EVENTS

On May 5, 2026, we completed a $ 450.0 million Term ABS financing, which was used to repay outstanding indebtedness and for general corporate purposes.

The financing has an expected average annualized cost of 5.2 % (including upfront fees and other costs), and it will revolve for 24 months, after which it will amortize based upon the cash flows on the underlying Loans.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements