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Item 1. Financial Statements

2026-08-04 compared with 2026-05-05 · 257 added, 87 removed, 1268 unchanged (21% of the section changed)

3 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 1.4 $ 22.8

15 unchanged sentences

Deferred income taxes, net 349.2 354.0

Income taxes payable 4.3 —

Total liabilities 7,033.7 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, 10,423,120 and 10,680,143 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

Common stock, $ .01 par value, 80,000,000 shares authorized, 10,376,049 and 10,680,143 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

Paid-in capital 507.9 403.3

Retained earnings 1,081.1 1,119.2

Accumulated other comprehensive income 0.3 1.0

Accumulated other comprehensive income (loss) ( 0.2 ) 1.0

Total shareholders’ equity 1,588.9 1,523.6

4 unchanged sentences

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

June 30, For the Six Months Ended

2026 2025 2026 2025

Finance charges $ 546.2 $ 540.7 $ 1,084.6 $ 1,067.4

27 unchanged sentences

(In millions) For the Three Months Ended

June 30, For the Six Months Ended

2026 2025 2026 2025

Net income $ 135.9 $ 87.4 $ 271.7 $ 193.7

6 unchanged sentences

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

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

(Dollars in millions) For the Three Months Ended June 30, 2026

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

9 unchanged sentences

Balance, end of period 10,376,049 $ 0.1 $ 507.9 $ 1,081.1 $ ( 0.2 ) $ 1,588.9

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

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

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

9 unchanged sentences

Balance, end of period 11,237,396 $ 0.1 $ 369.3 $ 1,184.3 $ 1.0 $ 1,554.7

(Dollars in millions) For the Six Months Ended June 30, 2026

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

Number of Shares Amount

Balance, beginning of period 10,680,143 $ 0.1 $ 403.3 $ 1,119.2 $ 1.0 $ 1,523.6

Net income — — — 271.7 — 271.7

Other comprehensive loss — — — — ( 1.2 ) ( 1.2 )

Stock-based compensation — — 20.0 — — 20.0

Repurchase of common stock ( 628,221 ) — ( 10.5 ) ( 309.8 ) — ( 320.3 )

Restricted stock units settled in common stock 43,267 — — — — —

Stock options exercised 280,860 — 95.1 — — 95.1

Balance, end of period 10,376,049 $ 0.1 $ 507.9 $ 1,081.1 $ ( 0.2 ) $ 1,588.9

(Dollars in millions) For the Six Months Ended June 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 — — — 193.7 — 193.7

Other comprehensive income — — — — 1.3 1.3

Stock-based compensation — — 25.6 — — 25.6

Repurchase of common stock ( 858,669 ) — ( 2.5 ) ( 424.1 ) — ( 426.6 )

Restricted stock units settled to common stock 15,339 — — — — —

Stock options exercised 32,575 — 11.1 — — 11.1

Balance, end of period 11,237,396 $ 0.1 $ 369.3 $ 1,184.3 $ 1.0 $ 1,554.7

See accompanying notes to consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

(In millions) For the Six Months Ended June 30,

Cash Flows From Operating Activities:

9 unchanged sentences

Change in operating assets and liabilities:

Increase in accounts payable and accrued liabilities 13.4 27.3

Increase (decrease) in accounts payable and accrued liabilities ( 8.2 ) 33.5

Decrease (increase) in income taxes receivable 58.8 ( 5.2 )

Increase in income taxes payable — 26.8

Increase (decrease) in income taxes payable 4.3 ( 103.4 )

Decrease in other assets 4.2 5.5

22 unchanged sentences

Other 2.6 29.9

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

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

Net cash used in financing activities ( 301.4 ) ( 281.3 )

Net decrease in cash and cash equivalents and restricted cash and cash equivalents ( 8.6 ) ( 281.2 )

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 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 .

We have evaluated events and transactions occurring subsequent to the consolidated balance sheet date of June 30, 2026, 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.

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 March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

Consumer Loan Assignment Volume 2026 2025 2026 2025

9 unchanged sentences

Three Months Ended Dealer Loans Purchased Loans Dealer Loans Purchased Loans

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

September 30, 2024 79.5 % 20.5 % 78.4 % 21.6 %

5 unchanged sentences

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

June 30, 2026 68.5 % 31.5 % 65.2 % 34.8 %

(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.

Payments of Dealer Holdback (as defined below) and accelerated Dealer Holdback are not included.

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 Consumer Loan assignment volume since 2024 has been primarily related to Consumer Loans assigned under this expanded Dealer access.

Portfolio Program

17 unchanged sentences

Certain events may also result in Dealers forfeiting their rights to Dealer Holdback, including becoming inactive before assigning 100 Consumer Loans.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

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

1 unchanged sentence

Since typically the combination of the advance and the consumer’s down payment provides the Dealer with a cash profit at the time of sale, the Dealer’s risk in the Consumer Loan is limited.

We cannot demand repayment of the advance from the Dealer except in the event the Dealer is in default of the Dealer servicing agreement.

We cannot demand repayment of the advance from the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Dealer except in the event the Dealer is in default of the Dealer servicing agreement.

Advances are made only after the consumer and Dealer have signed a Consumer Loan contract, we have received the executed Consumer Loan contract and supporting documentation in either physical or electronic form, and we have approved all of the related stipulations for funding.

20 unchanged sentences

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

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”).

As of June 30, 2026 and December 31, 2025, we had $ 1.0 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 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.

As of June 30, 2026 and December 31, 2025, we had $ 486.7 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

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

June 30, 2026 December 31, 2025 June 30, 2025 December 31, 2024

Cash and cash equivalents $ 1.4 $ 22.8 $ 70.0 $ 343.7

91 unchanged sentences

Methodolo gy Changes .

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.

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.

For additional information, see Note 6 .

For the three and six months ended June 30, 2026 and 2025, we did not make any other methodology changes for Loans that had a material impact on our financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

96 unchanged sentences

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

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

(In millions) As of June 30, 2026 As of December 31, 2025

Amount Estimated Fair

18 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 March 31, 2026

(In millions) As of June 30, 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 March 31, 2026

(In millions) As of June 30, 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 March 31, 2026

(In millions) Securities Available for Sale with Gross Unrealized Losses as of June 30, 2026

Less than 12 Months 12 Months or More

7 unchanged sentences

3.0 — 0.4 — 3.4 —

Mortgage-backed securities 2.8 — — — 2.8 —

Total restricted securities available for sale

15 unchanged sentences

(In millions) As of

March 31, 2026 December 31, 2025

June 30, 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 March 31, 2026

(In millions) As of June 30, 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 March 31, 2026

For the Three Months Ended June 30, 2026

(In millions)

28 unchanged sentences

$ 8,787.5 $ 2,821.2 $ 11,608.7 $ ( 3,137.5 ) $ ( 512.0 ) $ ( 3,649.5 ) $ 5,650.0 $ 2,309.2 $ 7,959.2

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

(In millions)

28 unchanged sentences

$ 8,791.0 $ 2,772.0 $ 11,563.0 $ ( 3,005.9 ) $ ( 555.2 ) $ ( 3,561.1 ) $ 5,785.1 $ 2,216.8 $ 8,001.9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

For the Six Months Ended June 30, 2026

(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 $ 8,790.8 $ 2,720.7 $ 11,511.5 $ ( 3,089.1 ) $ ( 513.2 ) $ ( 3,602.3 ) $ 5,701.7 $ 2,207.5 $ 7,909.2

Finance charges 1,114.7 450.3 1,565.0 ( 401.6 ) ( 78.8 ) ( 480.4 ) 713.1 371.5 1,084.6

Provision for credit losses — — — ( 151.4 ) ( 147.4 ) ( 298.8 ) ( 151.4 ) ( 147.4 ) ( 298.8 )

New Consumer Loan assignments (1) 1,390.8 677.0 2,067.8 — — — 1,390.8 677.0 2,067.8

Collections (2) ( 2,042.9 ) ( 858.4 ) ( 2,901.3 ) — — — ( 2,042.9 ) ( 858.4 ) ( 2,901.3 )

Accelerated Dealer Holdback payments 25.0 — 25.0 — — — 25.0 — 25.0

Dealer Holdback payments 65.6 — 65.6 — — — 65.6 — 65.6

Transfers (3) ( 86.2 ) 86.2 — 27.2 ( 27.2 ) — ( 59.0 ) 59.0 —

Write-offs ( 478.5 ) ( 258.3 ) ( 736.8 ) 478.5 258.3 736.8 — — —

Recoveries (4) 1.1 3.7 4.8 ( 1.1 ) ( 3.7 ) ( 4.8 ) — — —

Deferral of Loan origination costs 7.1 — 7.1 — — — 7.1 — 7.1

Balance, end of period $ 8,787.5 $ 2,821.2 $ 11,608.7 $ ( 3,137.5 ) $ ( 512.0 ) $ ( 3,649.5 ) $ 5,650.0 $ 2,309.2 $ 7,959.2

For the Six Months Ended June 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 1,079.3 445.4 1,524.7 ( 370.7 ) ( 86.6 ) ( 457.3 ) 708.6 358.8 1,067.4

Provision for credit losses — — — ( 206.7 ) ( 127.8 ) ( 334.5 ) ( 206.7 ) ( 127.8 ) ( 334.5 )

New Consumer Loan assignments (1) 1,517.8 592.9 2,110.7 — — — 1,517.8 592.9 2,110.7

Collections (2) ( 1,995.1 ) ( 835.4 ) ( 2,830.5 ) — — — ( 1,995.1 ) ( 835.4 ) ( 2,830.5 )

Accelerated Dealer Holdback payments 27.8 — 27.8 — — — 27.8 — 27.8

Dealer Holdback payments 103.5 — 103.5 — — — 103.5 — 103.5

Transfers (3) ( 80.0 ) 80.0 — 25.5 ( 25.5 ) — ( 54.5 ) 54.5 —

Write-offs ( 391.2 ) ( 281.7 ) ( 672.9 ) 391.2 281.7 672.9 — — —

Recoveries (4) 0.7 2.7 3.4 ( 0.7 ) ( 2.7 ) ( 3.4 ) — — —

Deferral of Loan origination costs 7.2 — 7.2 — — — 7.2 — 7.2

Balance, end of period $ 8,791.0 $ 2,772.0 $ 11,563.0 $ ( 3,005.9 ) $ ( 555.2 ) $ ( 3,561.1 ) $ 5,785.1 $ 2,216.8 $ 8,001.9

(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 March 31, 2026

For the Three Months Ended June 30, 2026

Provision for Credit Losses

5 unchanged sentences

$ 79.7 $ 79.5 $ 159.2

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

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

Provision for Credit Losses Dealer Loans Purchased Loans Total

2 unchanged sentences

Total $ 102.0 $ 70.6 $ 172.6

(In millions)

For the Six Months Ended June 30, 2026

Provision for Credit Losses

Purchased Loans

New Consumer Loan assignments

$ 76.8 $ 86.0 $ 162.8

Forecast changes

74.6 61.4 136.0

$ 151.4 $ 147.4 $ 298.8

(In millions) For the Six Months Ended June 30, 2025

Provision for Credit Losses Dealer Loans Purchased Loans Total

New Consumer Loan assignments $ 88.9 $ 68.0 $ 156.9

Forecast changes 117.8 59.8 177.6

Total $ 206.7 $ 127.8 $ 334.5

The net Loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a Loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the Dealer.

4 unchanged sentences

(In millions)

For the Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2026

New Consumer Loan Assignments

12 unchanged sentences

$ 299.6 $ 142.6 $ 442.2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

(In millions)

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

New Consumer Loan Assignments

12 unchanged sentences

$ 302.1 $ 131.9 $ 434.0

(In millions) For the Six Months Ended June 30, 2026

New Consumer Loan Assignments Dealer Loans Purchased Loans Total

Contractual net cash flows at the time of assignment (1) $ 2,248.0 $ 1,356.4 $ 3,604.4

Expected net cash flows at the time of assignment (2) 2,034.9 962.5 2,997.4

Loans receivable at the time of assignment (3) 1,390.8 677.0 2,067.8

Provision for credit losses expense at the time of assignment $ ( 76.8 ) $ ( 86.0 ) $ ( 162.8 )

Expected future finance charges at the time of assignment (4) 720.9 371.5 1,092.4

Expected net Loan income at the time of assignment (5) $ 644.1 $ 285.5 $ 929.6

(In millions) For the Six Months Ended June 30, 2025

New Consumer Loan Assignments Dealer Loans Purchased Loans Total

Contractual net cash flows at the time of assignment (1) $ 2,426.9 $ 1,177.7 $ 3,604.6

Expected net cash flows at the time of assignment (2) 2,190.8 849.2 3,040.0

Loans receivable at the time of assignment (3) 1,517.8 592.9 2,110.7

Provision for credit losses expense at the time of assignment $ ( 88.9 ) $ ( 68.0 ) $ ( 156.9 )

Expected future finance charges at the time of assignment (4) 761.9 324.3 1,086.2

Expected net Loan income at the time of assignment (5) $ 673.0 $ 256.3 $ 929.3

(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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

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

4 unchanged sentences

(In millions)

For the Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2026

Expected Future Net Cash Flows

12 unchanged sentences

$ 8,122.6 $ 3,631.1 $ 11,753.7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

(In millions)

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

Expected Future Net Cash Flows

12 unchanged sentences

$ 8,355.5 $ 3,472.2 $ 11,827.7

(In millions) For the Six Months Ended June 30, 2026

Expected Future Net Cash Flows Dealer Loans Purchased Loans Total

Balance, beginning of period $ 8,165.5 $ 3,444.7 $ 11,610.2

New Consumer Loan assignments (1) 2,034.9 962.5 2,997.4

Realized net cash flows (2) ( 1,952.3 ) ( 858.4 ) ( 2,810.7 )

Forecast changes ( 36.2 ) ( 12.0 ) ( 48.2 )

Transfers (3) ( 89.3 ) 94.3 5.0

Balance, end of period $ 8,122.6 $ 3,631.1 $ 11,753.7

(In millions) For the Six Months Ended June 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) 2,190.8 849.2 3,040.0

Realized net cash flows (2) ( 1,863.8 ) ( 835.4 ) ( 2,699.2 )

Forecast changes ( 64.2 ) ( 12.5 ) ( 76.7 )

Transfers (3) ( 83.6 ) 87.0 3.4

Balance, end of period $ 8,355.5 $ 3,472.2 $ 11,827.7

(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.

8 unchanged sentences

For additional information regarding credit quality, see Note 3 .

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:

The following table compares our aggregated forecast of Consumer Loan collection rates as of June 30, 2026 with the aggregated forecasts as of March 31, 2026, 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 March 31, 2026 December 31, 2025 Initial

Forecast December 31, 2025 Initial

Assignment Year June 30, 2026 March 31, 2026 December 31, 2025 Initial

Forecast March 31, 2026 December 31, 2025 Initial

2017 64.8 % 64.8 % 64.8 % 64.0 % 0.0 % 0.0 % 0.8 %

10 unchanged sentences

Consumer Loan

Assignment Year March 31, 2026 December 31, 2025 Initial

Forecast December 31, 2025 Initial

Assignment Year June 30, 2026 March 31, 2026 December 31, 2025 Initial

Forecast March 31, 2026 December 31, 2025 Initial

2017 64.1 % 64.1 % 64.1 % 63.8 % 0.0 % 0.0 % 0.3 %

12 unchanged sentences

Consumer Loan

Assignment Year March 31, 2026 December 31, 2025 Initial

Forecast December 31, 2025 Initial

Assignment Year June 30, 2026 March 31, 2026 December 31, 2025 Initial

Forecast March 31, 2026 December 31, 2025 Initial

2017 66.4 % 66.4 % 66.4 % 64.6 % 0.0 % 0.0 % 1.8 %

10 unchanged sentences

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.

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.

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 March 31, 2026 and December 31, 2025, segmented by year of assignment:

The following table summarizes the past-due status of Consumer Loan assignments as of June 30, 2026 and December 31, 2025, segmented by year of assignment:

(In millions)

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

Total Loans as of June 30, 2026 (1) (2)

Pre-term Consumer Loans (3)

9 unchanged sentences

(In millions)

Dealer Loans as of March 31, 2026 (1)

Dealer Loans as of June 30, 2026 (1)

Pre-term Consumer Loans (3)

10 unchanged sentences

(In millions)

Purchased Loans as of March 31, 2026 (2)

Purchased Loans as of June 30, 2026 (2)

Pre-term Consumer Loans (3)

50 unchanged sentences

(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 months ended March 31, 2026 and 2025, segmented by year of assignment:

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

The following table summarizes the write-offs for Consumer Loan assignments for th e three and six months ended June 30, 2026 and 2025, segmented by year of assignment:

(In millions) For the Three Months Ended June 30, 2026

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

6 unchanged sentences

$ 251.6 $ 124.9 $ 376.5

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

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

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

6 unchanged sentences

$ 207.6 $ 135.9 $ 343.5

(In millions) For the Six Months Ended June 30, 2026

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

2021 and prior $ 187.6 $ 42.6 $ 230.2

2022 136.9 32.5 169.4

2023 80.6 57.5 138.1

2024 53.1 58.3 111.4

2025 16.7 55.8 72.5

2026 3.6 11.6 15.2

$ 478.5 $ 258.3 $ 736.8

(In millions) For the Six Months Ended June 30, 2025

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

2020 and prior $ 143.1 $ 56.9 $ 200.0

2021 72.4 31.7 104.1

2022 110.8 53.3 164.1

2023 35.4 70.6 106.0

2024 24.9 58.4 83.3

2025 4.6 10.8 15.4

$ 391.2 $ 281.7 $ 672.9

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

A summary of reinsurance activity is as follows:

(In millions) For the Three Months Ended

June 30, For the Six Months Ended

2026 2025 2026 2025

Net assumed written premiums $ 24.1 $ 23.7 $ 52.1 $ 49.3

4 unchanged sentences

(In millions) As of

Balance Sheet Location March 31, 2026 December 31, 2025

Balance Sheet Location June 30, 2026 December 31, 2025

Trust assets Restricted cash and cash equivalents $ 0.8 $ 0.7

4 unchanged sentences

Other income consists of the following:

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

(In millions) For the Three Months Ended June 30, For the Six Months Ended June 30,

2026 2025 2026 2025

Ancillary product profit sharing $ 7.9 $ 7.5 $ 17.0 $ 16.2

14 unchanged sentences

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 March 31, 2026

(In millions) For the Three Months Ended June 30, 2026

Ancillary Product Profit Sharing Interest Remarketing Fees Other Total Other Income

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Total $ 7.9 $ 5.0 $ 3.5 $ 0.2 $ 16.6

(In millions) For the Six Months Ended June 30, 2026

Ancillary Product Profit Sharing Interest Remarketing Fees Other Total Other Income

Source of Income

Third-Party Providers $ 17.0 $ 9.8 $ — $ 0.2 $ 27.0

Dealers — — 7.6 0.4 8.0

Total $ 17.0 $ 9.8 $ 7.6 $ 0.6 $ 35.0

Timing of Revenue Recognition

Over time $ 17.0 $ 9.8 $ — $ 0.1 $ 26.9

At a point in time — — 7.6 0.5 8.1

Total $ 17.0 $ 9.8 $ 7.6 $ 0.6 $ 35.0

Debt consists of the following:

(In millions) As of March 31, 2026

(In millions) As of June 30, 2026

Principal Outstanding Unamortized Debt Issuance Costs Unamortized Discount Carrying

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

(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.

(1) Excludes deferred debt issuance costs of $ 5.5 million and $ 4.5 million as of June 30, 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 March 31, 2026 is as follows:

General information for each of our financing transactions in place as of June 30, 2026 is as follows:

(Dollars in millions)

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Amount Interest Rate Basis as of

March 31, 2026

June 30, 2026

Revolving Secured Line of Credit Facility n/a 06/22/2029 $ 390.0 At our option, either the Secured Overnight Financing Rate (SOFR) plus 175.0 basis points or the prime rate plus 75.0 basis points

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

Term ABS 2024-A (2) Credit Acceptance Funding LLC 2024-A 02/15/2027 (5) 200.0 Fixed rate

5 unchanged sentences

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

Term ABS 2026-1 (2) Credit Acceptance Funding LLC 2026-1 04/17/2028 (3) 450.0 Fixed rate

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

14 unchanged sentences

(In millions) For the Three Months Ended

June 30, For the Six Months Ended

2026 2025 2026 2025

Revolving Secured Lines of Credit

18 unchanged sentences

(Dollars in millions) As of

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Revolving Secured Lines of Credit

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(Dollars in millions) As of

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Term ABS 2022-1

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(Dollars in millions) As of

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Term ABS 2024-2

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Interest rate 4.77 % 4.77 %

Term ABS 2026-1

Principal balance outstanding $ 450.0 $ —

Loans pledged as collateral 533.9 —

Restricted cash and cash equivalents pledged as collateral 36.4 —

Interest rate 4.87 % — %

2028 Senior Notes

32 unchanged sentences

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.

The Term ABS 2023-1, 2023-2, 2023-3, 2023-5, 2024-A, 2024-1, 2024-2, 2024-3, 2025-1, 2025-2, and 2026-1 financings each consist of three classes of notes (or, in the case of the Term ABS 2024-B, three classes of loans).

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

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Debt Covenants

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.

As of June 30, 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

Amount Percentage Amount Percentage

June 30, For the Six Months Ended

2026 2025 2026 2025

Amount Percentage Amount Percentage Amount Percentage Amount Percentage

federal statutory income tax rate $ 35.4 21.0 % $ 24.8 21.0 % $ 72.1 21.0 % $ 54.5 21.0 %

1 unchanged sentence

Non-deductible executive compensation expense 1.0 0.6 % 1.2 1.0 % ( 0.2 ) - 0.1 % 2.7 1.0 %

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

Tax deficiency (excess tax benefit) from stock-based compensation ( 2.1 ) - 1.2 % 0.1 0.1 % ( 1.9 ) - 0.6 % 0.2 0.1 %

Research and development tax credits ( 4.8 ) - 2.9 % — — % ( 4.8 ) - 1.4 % — — %

Other — — % 0.1 0.1 % — — % 0.2 0.1 %

Effective income tax rate $ 32.7 19.4 % $ 30.4 25.8 % $ 71.9 20.9 % $ 65.8 25.4 %

State and local income taxes

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.

For the three months ended June 30, 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 changes in state tax laws enacted during the second quarter of 2025 that increased our effective income tax rate for that period.

In contrast, the second quarter of 2026 had relatively few state tax law changes enacted, resulting in minimal impact to our effective income tax rate for that period.

For the six months ended June 30, 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

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.

For the three and six months ended June 30, 2026, the impact of non-deductible executive compensation expense decreased from the same periods in 2025, primarily as a result of the reversal of previously recognized non-deductible executive compensation expense due to the retirement of certain executive officers during 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 three months ended March 31, 2026 and 2025.

We recognized a tax benefit for the three and six months ended June 30, 2026.

We recognized a tax deficiency for the three and six months ended June 30, 2025.

Research and development tax credits

During the three and six months ended June 30, 2026, the effective income tax rate was reduced by the recognition of research and development tax credits related to qualified activities.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

4 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2026 2025 2026 2025

Weighted average shares outstanding:

6 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2026 2025 2026 2025

Stock options 17,538 47,000 39,017 47,000

2 unchanged sentences

STOCK REPURCHASES

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,

The following table summarizes our stock repurchases for the three and six months ended June 30, 2026 and 2025:

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

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

2 unchanged sentences

Total 262,963 $ 141.4 529,605 $ 262.2

(Dollars in millions) For the Six Months Ended June 30,

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

Open Market (1) (2) 607,148 $ 309.4 853,960 $ 424.2

Other (3) 21,073 10.9 4,709 2.4

Total 628,221 $ 320.3 858,669 $ 426.6

(1) Total cost of repurchases includes excise tax.

1 unchanged sentence

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

As of June 30, 2026, we had authorization to repurchase 1,153,618 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, and as payment of the exercise price and related tax withholdings upon the exercise of stock options.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

6 unchanged sentences

Forfeited ( 144,543 ) 476.00

Outstanding as of March 31, 2026

Outstanding as of June 30, 2026

570,614 $ 438.42

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.

The forfeitures of unvested restricted stock units were primarily due to the retirements of executive officers during the first six months of 2026.

Stock-based compensation expense consists of the following:

(In millions) For the Three Months Ended

June 30, For the Six Months Ended

2026 2025 2026 2025

Restricted stock units $ 8.7 $ 11.3 $ 19.5 $ 21.9

22 unchanged sentences

Geographic Information

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.

For the three and six months ended June 30, 2026 and 2025, all of our revenues were derived from the United States.

As of June 30, 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 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.

We did not have any Dealers that provided 10% or more of our revenue during the three and six months ended June 30, 2026 and 2025.

Additionally, no single Dealer’s Loans receivable balance accounted for more than 10% of total Loans receivable as of June 30, 2026 and 2025.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

15 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 March 31, 2026 for these matters was $ 82.6 million.

The total recorded accrual balance as of June 30, 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.

30 unchanged sentences

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.

On June 5, 2026, the parties advised the court that they had agreed on the material terms of a settlement and were finalizing a definitive settlement agreement.

On June 6, 2026, the court issued an order dismissing and discontinuing the action without costs and without prejudice to the right to reopen the action within 60 days of the date of the order if the settlement is not consummated.

On July 23, 2026, the Office of the New York State Attorney General submitted a letter to the court noting that the parties had agreed on all terms of settlement, including final, to-be-executed settlement documentation, and requesting to extend the deadline to move to re-open the litigation for an additional 45 days to allow for the resolution of the litigation to coincide with the resolution of the multi-state matter discussed below.

The court granted the request on July 23, 2026.

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

7 unchanged sentences

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.

The Company has agreed with representatives of the agencies involved in this matter and the New York Attorney General matter discussed above on the material terms of a settlement, and the parties are finalizing definitive settlement documentation.

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