CREDIT ACCEPTANCE CORP (CACC)
SIC breadcrumb: Finance, Insurance, And Real Estate > SIC Major Group 61 > SIC 6141 Personal Credit Institutions
SEC company page: https://www.sec.gov/edgar/browse/?CIK=885550. Latest filing source: 0000885550-26-000047.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 2,317,200,000 | USD | 2025 | 2026-02-13 |
| Net income | 423,900,000 | USD | 2025 | 2026-02-13 |
| Assets | 8,631,700,000 | USD | 2025 | 2026-02-13 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000885550.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 969,200,000 | 1,110,000,000 | 1,285,800,000 | 1,489,000,000 | 1,669,300,000 | 1,856,000,000 | 1,832,400,000 | 1,901,900,000 | 2,162,400,000 | 2,317,200,000 |
| Net income | 332,800,000 | 470,200,000 | 574,000,000 | 656,100,000 | 421,000,000 | 958,300,000 | 535,800,000 | 286,100,000 | 247,900,000 | 423,900,000 |
| Diluted EPS | 16.31 | 24.04 | 29.39 | 34.57 | 23.47 | 59.52 | 39.32 | 21.99 | 19.88 | 36.38 |
| Operating cash flow | 507,200,000 | 566,000,000 | 703,900,000 | 812,300,000 | 985,200,000 | 1,069,400,000 | 1,238,700,000 | 1,203,800,000 | 1,137,900,000 | 1,054,600,000 |
| Capital expenditures | 5,500,000 | 8,400,000 | 25,100,000 | 26,800,000 | 8,500,000 | 7,600,000 | 3,100,000 | 4,000,000 | 1,800,000 | 1,600,000 |
| Share buybacks | 121,700,000 | 123,500,000 | 129,100,000 | 300,400,000 | 480,800,000 | 1,471,800,000 | 784,500,000 | 202,600,000 | 313,300,000 | 725,400,000 |
| Assets | 4,218,000,000 | 4,985,600,000 | 6,237,400,000 | 7,423,200,000 | 7,489,000,000 | 7,050,900,000 | 6,904,700,000 | 7,610,200,000 | 8,854,600,000 | 8,631,700,000 |
| Liabilities | 3,044,300,000 | 3,449,800,000 | 4,246,500,000 | 5,067,900,000 | 5,186,500,000 | 5,226,700,000 | 5,280,700,000 | 5,856,500,000 | 7,105,000,000 | 7,108,100,000 |
| Stockholders' equity | 1,173,700,000 | 1,535,800,000 | 1,990,900,000 | 2,355,300,000 | 2,302,500,000 | 1,824,200,000 | 1,624,000,000 | 1,753,700,000 | 1,749,600,000 | 1,523,600,000 |
| Cash and cash equivalents | 14,600,000 | 8,200,000 | 25,700,000 | 187,400,000 | 16,000,000 | 23,300,000 | 7,700,000 | 13,200,000 | 343,700,000 | 22,800,000 |
| Free cash flow | 501,700,000 | 557,600,000 | 678,800,000 | 785,500,000 | 976,700,000 | 1,061,800,000 | 1,235,600,000 | 1,199,800,000 | 1,136,100,000 | 1,053,000,000 |
Ratios
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 34.34% | 42.36% | 44.64% | 44.06% | 25.22% | 51.63% | 29.24% | 15.04% | 11.46% | 18.29% |
| Return on equity | 28.35% | 30.62% | 28.83% | 27.86% | 18.28% | 52.53% | 32.99% | 16.31% | 14.17% | 27.82% |
| Return on assets | 7.89% | 9.43% | 9.20% | 8.84% | 5.62% | 13.59% | 7.76% | 3.76% | 2.80% | 4.91% |
| Liabilities / equity | 2.59 | 2.25 | 2.13 | 2.15 | 2.25 | 2.87 | 3.25 | 3.34 | 4.06 | 4.67 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000885550.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-06-30 | 7.94 | reported discrete quarter | ||
| 2022-Q3 | 2022-09-30 | 6.49 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | 7.61 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 477,900,000 | 22,200,000 | 1.69 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 478,600,000 | 70,800,000 | 5.43 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 491,600,000 | 93,600,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 508,000,000 | 64,300,000 | 5.08 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 538,200,000 | -47,100,000 | -3.83 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 550,300,000 | 78,800,000 | 6.35 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 565,900,000 | 151,900,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 571,100,000 | 106,300,000 | 8.66 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 583,800,000 | 87,400,000 | 7.42 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 582,400,000 | 108,200,000 | 9.43 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 579,900,000 | 122,000,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 580,000,000 | 135,800,000 | 12.40 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0000885550-26-000080.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes included in Item 8 - Financial Statements and Supplementary Data, of our Annual Report on Form 10-K for the year ended December 31, 2025, as well as Part I - Item 1 - Financial Statements, of this Quarterly Report on Form 10-Q, which is incorporated herein by reference. Overview We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing. For the three months ended March 31, 2026, consolidated net income was $135.8 million, or $12.40 per diluted share, compared to consolidated net income of $106.3 million, or $8.66 per diluted share, for the same period in 2025. The increase was primarily due to a decrease in provision for credit losses. Our financial results for the three months ended March 31, 2026 included the following: •$7.9 billion average balance of our Loan portfolio, consistent with the first quarter of 2025. •Consumer Loan assignment unit volume of 95,992 and dollar volume of $1.1 billion, down 4.3% and 4.0%, respectively, compared to the first quarter of 2025. •Forecasted net cash flows from our Loan portfolio declined modestly by $9.1 million, or 0.1%, representing the smallest quarterly change in the past three years. •365,258 shares, or 3.4% of the shares outstanding at the beginning of the quarter, were repurchased at a cost of $178.9 million. •$47.1 million in Dealer Holdback and accelerated Dealer Holdback payments to Dealers. •$1.3 billion in liquidity (unrestricted cash and cash equivalents and amounts available for borrowing under revolving lines of credit) as of March 31, 2026. Company highlights for the three months ended March 31, 2026 included the following: •Enrolled 1,526 new Dealers in our programs with a record 10,977 active Dealers during the quarter, reflecting continued engagement across our dealer network. •Made continued progress executing our product roadmap, including the following initiatives: •AI-enabled call-center agent: In March 2026, 27% of inbound customer service and account solutions calls were routed to the AI agent, up from 6% in December 2025. We expect to further expand use of this agent in 2026, supporting more efficient and scalable servicing operations and enabling consumers to quickly access account information and complete payments. •Digital credit applications: The number of Dealers using our digital applications product continues to grow, helping Dealers more efficiently and securely capture consumer information across in‑store, web, and marketing channels. During the first quarter of 2026, 2,383 Dealers used this product, up 30% from the previous quarter. •New contract origination experience for Dealers: Since its February 2026 expansion, nearly 2,000 Dealers have enabled this experience as we focus on testing, learning, and refining the workflow. The experience is designed to support how franchise and large independent Dealers operate in today’s market, with features including deeper RouteOne e‑contracting integration, enhanced deal‑structuring and optimization tools, and broader support for finance and insurance products. 41 Table of Contents Critical Success Factors Critical success factors include our ability to: •accurately forecast Consumer Loan performance; •access capital on acceptable terms; and •maintain or grow Consumer Loan volume at the level and on the terms that we anticipate. These factors support our long-term objective of maximizing economic profit, a non-GAAP financial measure we use to evaluate our financial results, determine profit-sharing for team members, and assess business decisions and strategies. Economic profit measures how efficiently we utilize our total capital, both debt and equity, and is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. Consumer Loan Metrics At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related Dealer at a price designed to maximize economic profit. We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. 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 March 31, 2026 December 31, 2025 Initial Forecast December 31, 2025 Initial Forecast 2017 64.8 % 64.8 % 64.0 % 0.0 % 0.8 % 2018 65.6 % 65.5 % 63.6 % 0.1 % 2.0 % 2019 67.3 % 67.2 % 64.0 % 0.1 % 3.3 % 2020 68.1 % 68.0 % 63.4 % 0.1 % 4.7 % 2021 64.0 % 63.8 % 66.3 % 0.2 % -2.3 % 2022 59.3 % 59.3 % 67.5 % 0.0 % -8.2 % 2023 63.1 % 63.3 % 67.5 % -0.2 % -4.4 % 2024 65.3 % 65.3 % 67.2 % 0.0 % -1.9 % 2025 67.2 % 67.2 % 67.0 % 0.0 % 0.2 % 2026 66.3 % — 66.6 % — -0.3 % (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, including both principal and interest. 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. For the three months ended March 31, 2026, forecasted collection rates improved for Consumer Loans assigned in 2021, declined for Consumer Loans assigned in 2023, and were generally consistent with expectations at the start of the period for all other assignment years presented. For Consumer Loans assigned in 2026, the decline in the current forecasted collection rate from the initial forecast primarily reflects the impact of canceled Consumer Loans, as described in the footnote to the table above. These Consumer Loans are not seasoned enough for changes in forecasted collection rates to be meaningfully influenced by performance. 42 Table of Contents The changes to our forecast of future net cash flows from our Loan portfolio (forecasted collections less forecasted Dealer Holdback payments) for each of the last eight quarters are shown in the following table: (Dollars in millions) Decrease in Forecasted Net Cash Flows Three Months Ended Total Loans % Change from Forecast at Beginning of Period June 30, 2024 $ (189.3) -1.7 % September 30, 2024 (62.8) -0.6 % December 31, 2024 (31.1) -0.3 % March 31, 2025 (20.9) -0.2 % June 30, 2025 (55.8) -0.5 % September 30, 2025 (58.6) -0.5 % December 31, 2025 (34.2) -0.3 % March 31, 2026 (9.1) -0.1 % The following table presents information on Consumer Loan assignments for each of the last 10 years: Average Total Assignment Volume Consumer Loan Assignment Year Consumer Loan (1) Advance (2) Initial Loan Term (in months) Unit Volume Dollar Volume (2) (in millions) 2017 $ 20,230 $ 8,746 55 328,507 $ 2,873.1 2018 22,158 9,635 57 373,329 3,595.8 2019 23,139 10,174 57 369,805 3,772.2 2020 24,262 10,656 59 341,967 3,641.2 2021 25,632 11,790 59 268,730 3,167.8 2022 27,242 12,924 60 280,467 3,625.3 2023 27,025 12,475 61 332,499 4,147.8 2024 26,497 11,961 61 386,126 4,618.4 2025 25,423 11,428 60 337,411 3,856.1 2026 (3) 25,050 11,132 60 95,992 1,068.6 (1)Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest. (2)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 and accelerated Dealer Holdback are not included. (3)Represents activity for the three months ended March 31, 2026. Information in this table for each of the years prior to 2026 represents activity for all 12 months of that year. The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at Loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast. 43 Table of Contents The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of March 31, 2026, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both Dealer Loans and Purchased Loans. Forecasted Collection % as of Spread % as of Consumer Loan Assignment Year March 31, 2026 Initial Forecast Advance % (1) March 31, 2026 Initial Forecast % of Forecast Realized (2) 2017 64.8 % 64.0 % 43.2 % 21.6 % 20.8 % 99.6 % 2018 65.6 % 63.6 % 43.5 % 22.1 % 20.1 % 99.3 % 2019 67.3 % 64.0 % 44.0 % 23.3 % 20.0 % 98.8 % 2020 68.1 % 63.4 % 43.9 % 24.2 % 19.5 % 97.5 % 2021 64.0 % 66.3 % 46.0 % 18.0 % 20.3 % 93.9 % 2022 59.3 % 67.5 % 47.4 % 11.9 % 20.1 % 84.6 % 2023 63.1 % 67.5 % 46.2 % 16.9 % 21.3 % 70.0 % 2024 65.3 % 67.2 % 45.1 % 20.2 % 22.1 % 49.9 % 2025 67.2 % 67.0 % 45.0 % 22.2 % 22.0 % 23.1 % 2026 66.3 % 66.6 % 44.5 % 21.8 % 22.1 % 2.5 % (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 as a percentage of the initial balance of the Consumer Loans. Payments of Dealer Holdback and accelerated Dealer Holdback are not included. (2)Presented as a percentage of total forecasted collections. The risk of a [Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes contained in Item 8 of this Form 10-K, which is incorporated herein by reference. Overview We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing. For the year ended December 31, 2025, consolidated net income was $423.9 million, or $36.38 per diluted share, compared to $247.9 million, or $19.88 per diluted share, for the same period in 2024. The increase in consolidated net income was primarily due to a decrease in provision for credit losses and an increase in finance charges, partially offset by an increase in operating expenses. Our results for the year ended December 31, 2025 included: •$8.0 billion average balance of our Loan portfolio, which represented a 5.7% increase from 2024. •A 12.6% and 16.5% year-over-year decline in Consumer Loan unit and dollar volumes, respectively, as compared to 2024. •$169.5 million, or 1.5%, decrease in forecasted net cash flows from our Loan portfolio, which represented a smaller decrease compared to 2024. •$725.4 million in the repurchase of approximately 1,514,000 shares, or 12.6% of the shares outstanding at the beginning of the year. •The enrollment of 5,752 new Dealers, with 15,745 active Dealers during 2025, which is our highest ever number of active Dealers in a calendar year. •$230.8 million in Dealer Holdback and accelerated Dealer Holdback payments to Dealers. •$74.2 million contingent loss related to previously disclosed legal matters. •$1.7 billion in unrestricted cash and cash equivalents and unused and available revolving lines of credit as of December 31, 2025. •12 workplace awards, including reaching #34 on Great Place to Work® and Fortune magazine's 100 Best Companies to Work For® list and #2 on the 2025 Top Workplaces USA list in the 1,000-2,499 employee company size category. For the year ended December 31, 2024, consolidated net income was $247.9 million, or $19.88 per diluted share, compared to $286.1 million, or $21.99 per diluted share, for the same period in 2023. The decrease in consolidated net income was primarily due to increases in interest expense and provision for credit losses, partially offset by an increase in finance charges. Our results for the year ended December 31, 2024 included: •$7.5 billion average balance of our Loan portfolio, which represented a 13.6% increase from 2023. •A 16.1% and 11.3% year-over-year growth in Consumer Loan unit and dollar volumes, respectively, as compared to 2023. •$314.0 million, of 3.1%, decrease in forecasted net cash flows from our Loan portfolio, which represented a larger decrease compared to 2023. •An increase in our cost of debt from 5.5% to 7.2%. •$313.3 million in the repurchase of approximately 590,000 shares, or 4.7% of the shares outstanding at the beginning of the year. •The enrollment of 6,088 new Dealers, with 15,463 active Dealers during 2024. •$300.2 million in Dealer Holdback and accelerated Dealer Holdback payments to Dealers. •$23.7 million loss during the second quarter of 2024 related to the sale of one of our two office buildings. The building was sold to reduce excess office space and eliminate the associated annual operating costs of approximately $2.1 million. •13 workplace awards, including reaching #39 on Great Place to Work® and Fortune magazine's 100 Best Companies to Work For® list and #9 on the 2024 Top Workplaces USA list in the 1,000-2,499 employee company size category. 29 Critical Success Factors Critical success factors include our ability to accurately forecast Consumer Loan performance, access capital on acceptable terms, and maintain or grow Consumer Loan volume at the level and on the terms that we anticipate, with the objective to maximize economic profit over the long term. Economic profit is a non-GAAP financial measure we use to evaluate our financial results and determine profit-sharing for team members. We also use economic profit as a framework to evaluate business decisions and strategies. Economic profit measures how efficiently we utilize our total capital, both debt and equity, and is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. Consumer Loan Metrics At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related Dealer at a price designed to maximize economic profit. We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our aggregated forecast of Consumer Loan collection rates as of December 31, 2025, with the aggregated forecasts as of December 31, 2024, as of December 31, 2023, 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 December 31, 2025 December 31, 2024 December 31, 2023 Initial Forecast December 31, 2024 December 31, 2023 Initial Forecast 2016 63.9 % 63.9 % 63.8 % 65.4 % 0.0 % 0.1 % -1.5 % 2017 64.8 % 64.7 % 64.7 % 64.0 % 0.1 % 0.1 % 0.8 % 2018 65.5 % 65.5 % 65.5 % 63.6 % 0.0 % 0.0 % 1.9 % 2019 67.2 % 67.2 % 66.9 % 64.0 % 0.0 % 0.3 % 3.2 % 2020 68.0 % 67.7 % 67.6 % 63.4 % 0.3 % 0.4 % 4.6 % 2021 63.8 % 63.8 % 64.5 % 66.3 % 0.0 % -0.7 % -2.5 % 2022 59.3 % 60.2 % 62.7 % 67.5 % -0.9 % -3.4 % -8.2 % 2023 63.3 % 64.3 % 67.4 % 67.5 % -1.0 % -4.1 % -4.2 % 2024 65.3 % 66.5 % — 67.2 % -1.2 % — -1.9 % 2025 67.2 % — — 67.0 % — — 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. For the year ended December 31, 2025, forecasted collection rates improved for Consumer Loans assigned in 2020 and 2025, declined for Consumer Loans assigned in 2022 through 2024, and were generally consistent with expectations at the start of the period for all other assignment years presented. For the year ended December 31, 2024, forecasted collection rates improved for Consumer Loans assigned in 2019, declined for Consumer Loans assigned in 2021 through 2024, and were generally consistent with expectations at the start of the period for all other assignment years presented. 30 The changes to our forecast of future net cash flows from our Loan portfolio (forecasted collections less forecasted Dealer Holdback payments) are shown in the following table: (Dollars in millions) Decrease in Forecasted Net Cash Flows For the Years Ended December 31, Total Loans % Change from Forecast at Beginning of Period 2023 $ (206.3) -2.3 % 2024 (314.0) -3.1 % 2025 (169.5) -1.5 % The decreases in forecasted net cash flows for the years ended December 31, 2025, 2024, and 2023, were composed of ordinary decreases in forecasted net cash flows and the following adjustments applied to our forecasting methodology: 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. 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. 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. 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. During the second quarter of 2023, we adjusted our methodology for forecasting the amount and timing of future net cash flows from our Loan portfolio through the utilization of more recent Consumer Loan performance and Consumer Loan prepayment data. We had experienced a decrease in Consumer Loan prepayments to below-average levels and, as a result, slowed our forecasted net cash flow timing. 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 the adjustment to our forecasting methodology during the second quarter of 2023 reduced forecasted net cash flows by $44.5 million, or 0.5%, and increased provision for credit losses by $71.3 million. 31 The following table presents information on Consumer Loan assignments for each of the last 10 years: Average Total Assignment Volume Consumer Loan Assignment Year Consumer Loan (1) Advance (2) Initial Loan Term (in months) Unit Volume Dollar Volume (2) (in millions) 2016 $ 18,218 $ 7,976 53 330,710 $ 2,635.5 2017 20,230 8,746 55 328,507 2,873.1 2018 22,158 9,635 57 373,329 3,595.8 2019 23,139 10,174 57 369,805 3,772.2 2020 24,262 10,656 59 341,967 3,641.2 2021 25,632 11,790 59 268,730 3,167.8 2022 27,242 12,924 60 280,467 3,625.3 2023 27,025 12,475 61 332,499 4,147.8 2024 26,497 11,961 61 386,126 4,618.4 2025 25,423 11,428 60 337,411 3,856.1 (1)Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest. (2)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 and accelerated Dealer Holdback are not included. The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at Loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast. The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of December 31, 2025, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both Dealer Loans and Purchased Loans. Forecasted Collection % as of Spread % as of Consumer Loan Assignment Year December 31, 2025 Initial Forecast Advance % (1) December 31, 2025 Initial Forecast % of Forecast Realized (2) 2016 63.9 % 65.4 % 43.8 % 20.1 % 21.6 % 99.7 % 2017 64.8 % 64.0 % 43.2 % 21.6 % 20.8 % 99.6 % 2018 65.5 % 63.6 % 43.5 % 22.0 % 20.1 % 99.3 % 2019 67.2 % 64.0 % 44.0 % 23.2 % 20.0 % 98.6 % 2020 68.0 % 63.4 % 43.9 % 24.1 % 19.5 % 96.9 % 2021 63.8 % 66.3 % 46.0 % 17.8 % 20.3 % 92.5 % 2022 59.3 % 67.5 % 47.4 % 11.9 % 20.1 % 81.7 % 2023 63.3 % 67.5 % 46.2 % 17.1 % 21.3 % 65.3 % 2024 65.3 % 67.2 % 45.1 % 20.2 % 22.1 % 43.5 % 2025 67.2 % 67.0 % 45.0 % 22.2 % 22.0 % 15.2 % (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 as a percentage of the initial balance of the Consumer Loans. Payments of Dealer Holdback and accelerated Dealer Holdback are not included. (2)Presented as a percentage of total forecasted collections. 32 The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2021 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized. The spread between the forecasted collection rate as of December 31, 2025 and the advance rate ranges from 11.9% to 24.1% for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spreads with respect to 2022 and 2023 Consumer Loans have been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The higher spread for 2025 Consumer Loans relative to 2024 Consumer Loans as of December 31, 2025 was primarily a result of Consumer Loan performance, as the performance of 2025 Consumer Loans has exceeded our initial estimates while the performance of 2024 Consumer Loans has been lower than our initial estimates. The following table compares our forecast of aggregate Consumer Loan collection rates as of December 31, 2025 with the forecasts at the time of assignment, for Dealer Loans and Purchased Loans separately: Dealer Loans Purchased Loans Forecasted Collection Percentage as of (1) Forecasted Collection Percentage as of (1) Consumer Loan Assignment Year December 31, 2025 Initial Forecast Variance December 31, 2025 Initial Forecast Variance 2016 63.2 % 65.1 % -1.9 % 66.2 % 66.5 % -0.3 % 2017 64.1 % 63.8 % 0.3 % 66.4 % 64.6 % 1.8 % 2018 64.9 % 63.6 % 1.3 % 66.8 % 63.5 % 3.3 % 2019 66.9 % 63.9 % 3.0 % 67.9 % 64.2 % 3.7 % 2020 67.8 % 63.3 % 4.5 % 68.4 % 63.6 % 4.8 % 2021 63.6 % 66.3 % -2.7 % 64.4 % 66.3 % -1.9 % 2022 58.5 % 67.3 % -8.8 % 61.3 % 68.0 % -6.7 % 2023 62.1 % 66.8 % -4.7 % 66.8 % 69.4 % -2.6 % 2024 64.1 % 66.3 % -2.2 % 69.9 % 70.7 % -0.8 % 2025 65.7 % 65.5 % 0.2 % 71.9 % 71.5 % 0.4 % (1) The forecasted collection rates presented for Dealer Loans and Purchased Loans reflect the Consumer Loan classification at the time of assignment. The forecasted collection rates represent 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. 33 The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of December 31, 2025 for Dealer Loans and Purchased Loans separately. All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). Dealer Loans Purchased Loans Consumer Loan Assignment Year Forecasted Collection % (1) Advance % (1)(2) Spread % Forecasted Collection % (1) Advance % (1)(2) Spread % 2016 63.2 % 42.1 % 21.1 % 66.2 % 48.6 % 17.6 % 2017 64.1 % 42.1 % 22.0 % 66.4 % 45.8 % 20.6 % 2018 64.9 % 42.7 % 22.2 % 66.8 % 45.2 % 21.6 % 2019 66.9 % 43.1 % 23.8 % 67.9 % 45.6 % 22.3 % 2020 67.8 % 43.0 % 24.8 % 68.4 % 45.5 % 22.9 % 2021 63.6 % 45.1 % 18.5 % 64.4 % 47.7 % 16.7 % 2022 58.5 % 46.4 % 12.1 % 61.3 % 50.1 % 11.2 % 2023 62.1 % 44.8 % 17.3 % 66.8 % 49.8 % 17.0 % 2024 64.1 % 44.1 % 20.0 % 69.9 % 48.9 % 21.0 % 2025 65.7 % 43.2 % 22.5 % 71.9 % 50.4 % 21.5 % (1)The forecasted collection rates and advance rates presented for Dealer Loans and Purchased Loans reflect the Consumer Loan classification at the time of assignment. (2)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 as a percentage of the initial balance of the Consumer Loans. Payments of Dealer Holdback and accelerated Dealer Holdback are not included. Although the advance rate on Purchased Loans is higher as compared to the advance rate on Dealer Loans, Purchased Loans do not require us to pay Dealer Holdback. The spread as of December 31, 2025 on 2025 Dealer Loans was 22.5%, as compared to a spread of 20.0% on 2024 Dealer Loans. The increase was primarily a result of Consumer Loan performance, as the performance of 2025 Dealer Loans has exceeded our initial estimates while the performance of 2024 Dealer Loans has been lower than our initial estimates. The spread as of December 31, 2025 on 2025 Purchased Loans was 21.5%, as compared to a spread of 21.0% on 2024 Purchased Loans, reflecting the net impact of two offsetting factors. Consumer Loan performance increased the spread from 2024 to 2025, as the performance of 2025 Purchased Loans has exceeded our initial estimates while the performance of 2024 Purchased Loans has been lower than our initial estimates. This impact of Consumer Loan performance was partially offset by the impact of a lower initial spread on 2025 Purchased Loans, due to the advance rate increasing by a greater margin than the initial forecast in our Purchased Loan portfolio. Access to Capital Our strategy for accessing capital on acceptable terms needed to maintain and grow the business is to: (1) maintain consistent financial performance; (2) maintain modest financial leverage; and (3) maintain multiple funding sources. Our funded debt to equity ratio was 4.2 to 1 as of December 31, 2025. We currently utilize the following primary forms of debt financing: (1) our revolving secured line of credit facility; (2) Warehouse facilities; (3) Term ABS financings; and (4) senior notes. 34 Consumer Loan Volume The following table summarizes changes in Consumer Loan assignment volume in each of the last three years as compared to the same period in the previous year: Year over Year Percent Change For the Year Ended December 31, Unit Volume Dollar Volume (1) 2023 18.6 % 14.4 % 2024 16.1 % 11.3 % 2025 -12.6 % -16.5 % (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 and accelerated Dealer Holdback are not included. Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs and (2) the amount of capital available to fund new Loans. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital constraints. During 2025, unit and dollar volumes declined 12.6% and 16.5%, respectively, as the number of active Dealers increased 1.8% while average unit volume per active Dealer declined 14.4%. Dollar volume declined by more than unit volume in 2025 primarily due to a decrease in the average size of Consumer Loans assigned, which resulted in a decrease in the average advance paid. During 2024, unit and dollar volumes increased 16.1% and 11.3%, respectively, as the number of active Dealers increased 9.1% while average volume per active Dealer increased 6.4%. Dollar volume increased less than unit volume in 2024 due to decreases in the average advance rate and the average size of Consumer Loans assigned, which resulted in a decrease in the average advance paid. Unit volume for 2024 was the highest unit volume in our history. The following table summarizes the changes in Consumer Loan unit volume and active Dealers: For the Years Ended December 31, For the Years Ended December 31, 2025 2024 % Change 2024 2023 % Change Consumer Loan unit volume 337,411 386,126 -12.6 % 386,126 332,499 16.1 % Active Dealers (1) 15,745 15,463 1.8 % 15,463 14,174 9.1 % Average volume per active Dealer 21.4 25.0 -14.4 % 25.0 23.5 6.4 % Consumer Loan unit volume from Dealers active both periods 300,460 350,638 -14.3 % 339,361 304,779 11.3 % Dealers active both periods 10,938 10,938 — 10,637 10,637 — Average volume per Dealer active both periods 27.5 32.1 -14.3 % 31.9 28.7 11.3 % Consumer Loan unit volume from Dealers not active both periods 36,951 35,488 4.1 % 46,765 27,720 68.7 % Dealers not active both periods 4,807 4,525 6.2 % 4,826 3,537 36.4 % Average volume per Dealer not active both periods 7.7 7.8 -1.3 % 9.7 7.8 24.4 % (1)Active Dealers are Dealers who have received funding for at least one Consumer Loan during the period. 35 The following table provides additional information on the changes in Consumer Loan unit volume and active Dealers: For the Years Ended December 31, For the Years Ended December 31, 2025 2024 % Change 2024 2023 % Change Consumer Loan unit volume from new active Dealers 35,018 43,985 -20.4 % 43,985 46,741 -5.9 % New active Dealers (1) 4,285 4,330 -1.0 % 4,330 4,070 6.4 % Average volume per new active Dealer 8.2 10.2 -19.6 % 10.2 11.5 -11.3 % Attrition (2) -9.2 % -8.3 % -8.3 % -7.3 % (1)New active Dealers are Dealers who enrolled in our program and have received funding for their first Loan from us during the period. (2)Attrition is measured according to the following formula: decrease in Consumer Loan unit volume from Dealers who have received funding for at least one Loan during the comparable period of the prior year but did not receive funding for any Loans during the current period divided by prior year comparable period Consumer Loan unit volume. Consumer Loans are assigned to us as either Dealer Loans through the Portfolio Program or Purchased Loans through the Purchase Program. The following table shows the percentage of Consumer Loans assigned to us under each of the programs for each of the last three years: Unit Volume Dollar Volume (1) For the Years Ended December 31, Portfolio Program Purchase Program Portfolio Program Purchase Program 2023 74.0 % 26.0 % 70.7 % 29.3 % 2024 78.7 % 21.3 % 77.5 % 22.5 % 2025 74.2 % 25.8 % 71.7 % 28.3 % (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 and accelerated Dealer Holdback are not included. As of December 31, 2025 and 2024, the net Dealer Loans receivable balance was 72.1% and 72.3%, respectively, of the total net Loans receivable balance. Results of Operations The following is a discussion of our 2025 and 2024 results of operations and income statement data on a consolidated basis, including year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. 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. We believe the economics of our business are best exhibited by recognizing net Loan income on a level-yield basis over the life of the Loan based on expected future net cash flows. Under the GAAP methodology we employ, which is known as the current expected credit loss model, or 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; and •finance charge revenue in subsequent periods that is significantly in excess of our expected yield. Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. For additional information, see Note 2 and Note 5 to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference. 36 Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 (Dollars in millions, except per share data) For the Years Ended December 31, 2025 2024 $ Change % Change Revenue: Finance charges $ 2,141.8 $ 1,992.7 $ 149.1 7.5 % Premiums earned 95.6 96.1 (0.5) -0.5 % Other income 79.8 73.6 6.2 8.4 % Total revenue 2,317.2 2,162.4 154.8 7.2 % Costs and expenses: Salaries and wages 337.1 309.2 27.9 9.0 % General and administrative 161.4 97.9 63.5 64.9 % Sales and marketing 101.4 94.4 7.0 7.4 % Total operating expenses 599.9 501.5 98.4 19.6 % Provision for credit losses on forecast changes 338.3 493.8 (155.5) -31.5 % Provision for credit losses on new Consumer Loan assignments 277.8 320.9 (43.1) -13.4 % Total provision for credit losses 616.1 814.7 (198.6) -24.4 % Interest 462.9 419.5 43.4 10.3 % Provision for claims 71.7 73.5 (1.8) -2.4 % Loss on extinguishment of debt 1.2 — 1.2 — % Loss on sale of building — 23.7 (23.7) -100.0 % Total costs and expenses 1,751.8 1,832.9 (81.1) -4.4 % Income before provision for income taxes 565.4 329.5 235.9 71.6 % Provision for income taxes 141.5 81.6 59.9 73.4 % Net income $ 423.9 $ 247.9 $ 176.0 71.0 % Net income per share: Basic $ 37.02 $ 20.12 $ 16.90 84.0 % Diluted $ 36.38 $ 19.88 $ 16.50 83.0 % Weighted average shares outstanding: Basic 11,451,578 12,323,261 (871,683) -7.1 % Diluted 11,650,773 12,469,283 (818,510) -6.6 % Finance Charges. The increase of $149.1 million, or 7.5%, was the result of increases in the average net Loans receivable balance and the average yield on our Loan portfolio, as follows: (Dollars in millions) For the Years Ended December 31, 2025 2024 Change Average net Loans receivable balance $ 7,956.3 $ 7,530.7 $ 425.6 Average yield on our Loan portfolio 26.9 % 26.5 % 0.4 % 37 The following table summarizes the impact each component had on the overall increase in finance charges for the year ended December 31, 2025: (In millions) Impact on finance charges: For the Year Ended December 31, 2025 Due to an increase in the average net Loans receivable balance $ 112.6 Due to an increase in the average yield 36.5 Total increase in finance charges $ 149.1 The increase in the average net Loans receivable balance was primarily due to the dollar volume of new Consumer Loan assignments exceeding the principal collected on Loans receivable. The increase in the average yield of our Loan portfolio was primarily due to higher contractual yields on more recent Consumer Loan assignments. Operating Expenses. The increase of $98.4 million, or 19.6%, was primarily due to: •An increase in general and administrative expense of $63.5 million, or 64.9%, primarily due to an increase in legal expenses, which included a $74.2 million contingent loss recognized during 2025, compared to a $8.4 million contingent loss recognized during 2024, both related to previously disclosed legal matters as to which we have recognized cumulative contingent losses of $82.6 million through 2025. The cumulative amount reflects, among other things, preliminary alignment between us and representatives of the agencies involved in the previously disclosed multi-state and New York Attorney General legal matters on certain material terms of a potential settlement of those legal matters, including a potential cash payment by us of $75.5 million. •An increase in salaries and wages expense of $27.9 million, or 9.0%, primarily due to increases in (i) the number of team members in Engineering as we are investing in our business with the goal of increasing the speed at which we enhance our product for Dealers and consumers, (ii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders, and (iii) fringe benefits, primarily due to higher medical claims. Provision for Credit Losses. The decrease of $198.6 million, or 24.4%, was primarily due to a decrease in provision for credit losses on forecast changes. We recognize provision for credit losses on new Consumer Loan assignments for contractual net cash flows that are not expected to be realized at the time of assignment. We also recognize provision for credit losses on forecast changes in the amount and timing of expected future net cash flows subsequent to assignment. The following table summarizes the provision for credit losses for each of these components: (In millions) For the Years Ended December 31, Provision for Credit Losses 2025 2024 Change Forecast changes $ 338.3 $ 493.8 $ (155.5) New Consumer Loan assignments 277.8 320.9 (43.1) Total $ 616.1 $ 814.7 $ (198.6) The decrease in provision for credit losses related to forecast changes was primarily due to a smaller decline in Consumer Loan performance during 2025 compared to 2024. During 2025, we decreased our estimate of future net cash flows by $169.5 million, or 1.5%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect lower-than-expected Consumer Loan prepayments, which remained below historical averages. The $169.5 million decrease in forecasted net cash flows for the year ended December 31, 2025 was composed of an ordinary decrease in forecasted net cash flows of $150.9 million, or 1.3%, and an adjustment applied to our forecasting methodology, which upon implementation, reduced forecasted net cash flows by $18.6 million, or 0.2%, and increased our provision for credit losses by $16.5 million. 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, during 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. 38 During 2024, we decreased our estimate of future net cash flows by $314.0 million, or 3.1%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments, which remained below historical averages. The $314.0 million decrease in forecasted net cash flows for the year ended December 31, 2024 was composed of an ordinary decrease in forecasted net cash flows of $166.8 million, or 1.7%, and an adjustment applied to our forecasting methodology during the second quarter of 2024, which upon implementation, reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased our provision for credit losses by $127.5 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. For additional information, see Note 5 to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference. The decrease in provision for credit losses related to new Consumer Loan assignments was primarily due to a 12.6% decrease in Consumer Loan assignment unit volume. Interest. The increase in interest expense of $43.4 million, or 10.3%, was primarily due to an increase in our average outstanding debt balance. The following table presents the change in interest expense, average outstanding debt balance, and average cost of debt for the year ended December 31, 2025 as compared to the year ended December 31, 2024: (Dollars in millions) For the Years Ended December 31, 2025 2024 Change Interest expense $ 462.9 $ 419.5 $ 43.4 Average outstanding debt balance 6,448.9 5,849.7 599.2 Average cost of debt 7.2 % 7.2 % — % Loss on Sale of Building. For the year ended December 31, 2024, we recognized a loss on the sale of a building of $23.7 million. For additional information, see Note 6 to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference. Provision for Income Taxes. For the year ended December 31, 2025, the effective income tax rate increased to 25.0% from 24.8% as compared with the year ended December 31, 2024. The increase was primarily due to an increase in state income taxes due to a revision of deferred tax estimates during 2025 and a reduction in excess tax benefits due to an increase in pre-tax income in 2025, partially offset by a decrease in non-deductible executive compensation expense. For additional information, see Note 10 to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference. 39 Critical Accounting Estimates Our consolidated financial statements are prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we review our accounting policies, assumptions, estimates, and judgments to ensure that our financial statements are presented fairly and in accordance with GAAP. Our significant accounting policies are discussed in Note 2 to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference. We believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our reported financial results, and involve a high degree of subjective or complex judgment, and the use of different estimates or assumptions could produce materially different financial results. Finance Charge Revenue & Allowance for Credit Losses Nature of Estimates Required. We estimate the amount and timing of future collections and Dealer Holdback payments. These estimates impact Loans receivable and allowance for credit losses on our balance sheet and finance charges and provision for credit losses on our income statement. Assumptions and Approaches Used. On January 1, 2020, we adopted Accounting Standards Update 2016-13, Measurement of Credit Losses on Financial Instruments, which is known as the current expected credit loss model, or CECL. For additional information regarding the adoption impact of CECL, see Note 2 and Note 5 to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference. We recognize finance charges under the interest method such that revenue is recognized on a level-yield basis over the life of the Loan. We calculate finance charges on a monthly basis by applying the effective interest rate of the Loan to the net carrying amount of the Loan (Loan receivable less the related allowance for credit losses). For Consumer Loans assigned on or subsequent to January 1, 2020, the effective interest rate is based on contractual future net cash flows. Consumer Loans assigned prior to January 1, 2020 are no longer material to our consolidated financial statements. The outstanding balance of the allowance for credit losses of each Loan represents the amount required to reduce the net carrying amount of Loans (Loans receivable less allowance for credit losses) to the present value of expected future net cash flows discounted at the effective interest rate. Expected future net cash flows for Dealer Loans are comprised of expected future collections on the assigned Consumer Loans, less any expected future Dealer Holdback payments. Expected future net cash flows for Purchased Loans are comprised of expected future collections on the assigned Consumer Loans. 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. 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. Expected future Dealer Holdback payments are forecasted for each individual Dealer based on the expected future collections and current advance balance of each Dealer Loan. We monitor and evaluate Consumer Loan performance on a monthly basis by comparing our current forecasted collection rates to our initial expectations. We use a statistical model that considers a number of credit quality indicators to estimate the expected collection rate for each Consumer Loan at the time of assignment. The credit quality indicators considered in our model include attributes contained in the consumer’s credit bureau report, data contained in the consumer’s credit application, the structure of the proposed transaction, vehicle information, and other factors. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment primarily through the monitoring of consumer payment behavior. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. Since all known, significant credit quality indicators have already been factored into our forecasts and pricing, we are not able to use any specific credit quality indicators to predict or explain variances in actual performance from our initial expectations. Any variances in performance from our initial expectations are the result of Consumer Loans performing differently from historical Consumer Loans with similar characteristics. We periodically adjust our statistical pricing model for new trends that we identify through our evaluation of these forecasted collection rate variances. 40 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. 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. 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. 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. During the second quarter of 2023, we adjusted our methodology for forecasting the amount and timing of future net cash flows from our Loan portfolio through the utilization of more recent Consumer Loan performance and Consumer Loan prepayment data. We had experienced a decrease in Consumer Loan prepayments to below-average levels and, as a result, slowed our forecasted net cash flow timing. The below-average levels of Consumer Loan prepayments continued through the fourth quarter of 2023. 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 the adjustment to our forecasting methodology during the second quarter of 2023 reduced forecasted net cash flows by $44.5 million, or 0.5%, and increased provision for credit losses by $71.3 million. Our provision for credit losses for the year ended December 31, 2025, included: •$277.8 million provision for credit losses on new Consumer Loan assignments, which reduced consolidated net income by $208.4 million, or $17.89 per diluted share; and •$338.3 million provision for credit losses on forecast changes related to changes in the amount and timing of expected future net cash flows, which reduced consolidated net income by $253.7 million, or $21.78 per diluted share. Our provision for credit losses for the year ended December 31, 2024, included: •$320.9 million provision for credit losses on new Consumer Loan assignments, which reduced consolidated net income by $247.1 million, or $19.82 per diluted share; and •$493.8 million provision for credit losses on forecast changes related to changes in the amount and timing of expected future net cash flows, which reduced consolidated net income by $380.2 million, or $30.49 per diluted share. 41 Key Factors. Variances in the amount and timing of future net cash flows from current estimates could materially impact earnings in future periods. A 1% decline in the forecasted future net cash flows on Loans as of December 31, 2025 would have reduced 2025 consolidated net income by approximately $56.4 million. During periods of economic slowdown or recession, delinquencies, defaults, repossessions, and losses may increase on our Consumer Loans, and Consumer Loan prepayments, which historically have been lower in periods with less availability of consumer credit, may decline. These periods are also typically accompanied by decreased consumer demand for automobiles and declining values of automobiles securing outstanding Consumer Loans, which weakens collateral coverage and increases the amount of a loss in the event of default. Significant increases in the inventory of used automobiles during periods of economic recession may also depress the prices at which repossessed automobiles may be sold or delay the timing of these sales. Additionally, inflation, higher gasoline prices, the deferral or resumption of student loan payments, increased focus on climate-related initiatives and regulation, declining stock market values, unstable real estate values, resets of adjustable rate mortgages to higher interest rates, increasing unemployment levels, general availability of consumer credit, tariffs, or other factors that impact consumer confidence or disposable income could increase loss frequency and decrease consumer demand for automobiles as well as weaken collateral values of automobiles. Because our business is focused on consumers who do not qualify for conventional automobile financing, the actual rates of delinquencies, defaults, repossessions, and losses on our Consumer Loans could be higher than those experienced in the general automobile finance industry and could be more dramatically affected by a general economic downturn. Premiums Earned Nature of Estimates Required. We estimate the pattern of future claims on vehicle service contracts. These estimates impact accounts payable and accrued liabilities on our balance sheet and premiums earned on our income statement. Assumptions and Approaches Used. Premiums from the reinsurance of vehicle service contracts are recognized over the life of the policy in proportion to the expected costs of servicing those contracts. Expected costs are determined based on our historical claims experience. In developing our cost expectations, we stratify our historical claims experience into groupings based on contractual term, as this characteristic has led to different patterns of cost incurrence in the past. We will continue to update our analysis of historical costs under the vehicle service contract program as appropriate, including the consideration of other characteristics that may have led to different patterns of cost incurrence, and revise our revenue recognition timing for any changes in the pattern of our expected costs as they are identified. Key Factors. Variances in the pattern of future claims from our current estimates would impact the timing of premiums recognized in future periods. A 10% change in premiums earned for the year ended December 31, 2025 would have affected 2025 consolidated net income by approximately $7.2 million. Contingencies Nature of Estimates Required. We estimate the likelihood of adverse judgments against us and any resulting damages, fines, or statutory penalties owed. These estimates impact accounts payable and accrued liabilities on our balance sheet and are general and administrative expenses on our income statement. Assumptions and Approaches Used. With assistance from our legal counsel, we determine if the likelihood of an adverse judgment for various claims, litigation, and regulatory investigations is remote, reasonably possible, or probable. To the extent we believe an adverse judgment is probable and the amount of the judgment is estimable, we recognize a liability. For information regarding current actions to which we are a party, see Note 15 to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference. Key Factors. Negative variances in the ultimate disposition of claims and litigation outstanding from current estimates could result in additional expense in future periods. 42 Uncertain Tax Positions Nature of Estimates Required. We estimate the impact of an uncertain income tax position on the income tax return. These estimates impact income taxes receivable and accounts payable and accrued liabilities on our balance sheet and provision for income taxes on our income statement. Assumptions and Approaches Used. We follow a two-step approach for recognizing uncertain tax positions. First, we evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more-likely-than-not that the position will be sustained upon examination, including resolution of related appeals or litigation processes, if any. Second, for positions that we determine are more-likely-than-not to be sustained, we recognize the tax benefit as the largest benefit that has a greater than 50% likelihood of being sustained. We establish a reserve for uncertain tax positions liability that is comprised of unrecognized tax benefits and related interest. We adjust this liability in the period in which an uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position, or more information becomes available. Key Factors. To the extent we prevail in matters for which a liability has been established or are required to pay amounts in excess of our established liability, our effective income tax rate in future periods could be materially affected. Liquidity and Capital Resources We need capital to maintain and grow our business. Our primary sources of capital are cash flows from operating activities, collections of Consumer Loans, and borrowings under: (1) our revolving secured line of credit facility; (2) Warehouse facilities; (3) Term ABS financings; and (4) senior notes. There are various restrictive covenants to which we are subject under each financing arrangement, and we were in compliance with those covenants as of December 31, 2025. For information regarding these financings and the covenants included in the related documents, see Note 9 to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference. We endeavor to run our business conservatively, with a large margin of safety in Loan pricing in the aggregate, low leverage on the balance sheet, and significant unused availability on our revolving credit facilities. Our forecasting models have performed best during relatively stable economic periods but have been less accurate during periods of volatility like we have experienced in recent years. Since forecasting collection rates is challenging, our business model is designed to produce acceptable returns in the aggregate even if Loan performance is worse than forecasted. When needed, we have made adjustments to our forecasts on both new and existing Loans, and our recent forecasts incorporate underperformance of post-pandemic vintages. We have also reduced advance rates to the Dealer on more recent vintages, which we believe increases the margin of safety in our business. Based on our estimates as of December 31, 2025 , total forecasted collections for the portfolio were $12.2 billion, which provides $4.5 billion of cushion to our lenders after considering $1.3 billion of estimated interest and operating expenses and $6.4 billion of outstanding debt. Since 1998, we have completed 60 term securitizations totaling $17.1 billion of debt issued. We believe our securitization trusts contain a significant margin of safety for investors, including structural features such as overcollateralization, subordination, and reserve accounts to protect our investors against credit risk. Our securitization trusts have paid timely interest and principal of all maturing securities in full and have never experienced an early amortization event, event of default, or other adverse event that would cause early or late repayment. Our securitization transactions are generally structured to withstand a 35% decline in the forecasted collection rate before the most junior bond is at risk of taking a principal loss. Accordingly, we believe future net cash flows from collateral securing our outstanding securitization debt are more than sufficient to repay all future obligations of our outstanding securitization trusts. On February 28, 2025, we issued $500.0 million of 6.625% senior notes due 2030 (the “2030 senior notes”). We used a portion of the net proceeds from the 2030 senior notes to redeem all of the $400.0 million outstanding principal amount of our 6.625% senior notes due 2026 (the “2026 senior notes”). We used the remaining net proceeds from the 2030 senior notes for general corporate purposes. During the first quarter of 2025, we recognized a pre-tax loss on extinguishment of debt of $1.2 million related to the redemption of the 2026 senior notes. On March 27, 2025, we completed a $400.0 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 5.6% (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. 43 On June 24, 2025, we extended the maturity of our revolving secured line of credit facility from June 22, 2027 to June 22, 2028. On July 11, 2025, we extended the date on which our $75.0 million Warehouse Facility VI will cease to revolve from September 30, 2026 to September 30, 2028. The interest rate on borrowings under the facility was decreased from the Secured Overnight Financing Rate (“SOFR”) plus 210 basis points to SOFR plus 185 basis points. The servicing fee was also decreased from 6.0% to 4.0% of collections on the underlying consumer loans. On July 30, 2025, we extended the date on which our $300.0 million Warehouse Facility IV will cease to revolve from December 29, 2026 to July 30, 2028. The interest rate on borrowings under the facility was decreased from the Secured Overnight Financing Rate plus 221.4 basis points to SOFR plus 205 basis points. On September 19, 2025, we extended the date on which our $200.0 million Warehouse Facility VIII will cease to revolve from September 21, 2026 to September 19, 2028. The interest rate on borrowings under the facility was decreased from SOFR plus 225 basis points to SOFR plus 185 basis points. On November 13, 2025, we completed a $500.0 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 5.1% (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. On January 15, 2026, we extended the date on which our $100.0 million Term ABS 2021-1 financing will cease to revolve from February 17, 2026 to January 18, 2028. The interest rate on borrowings under the financing was decreased from SOFR plus 220 basis points to SOFR plus 140 basis points. Cash and cash equivalents decreased to $22.8 million as of December 31, 2025 from $343.7 million as of December 31, 2024. As of December 31, 2025 and December 31, 2024, we had $1,627.7 million and $1,734.9 million, respectively, in unused and available lines of credit. Our total balance sheet indebtedness as of December 31, 2025 and 2024 was $6,353.9 million and $6,352.9 million, respectively. A summary as of December 31, 2025 of our material financial obligations requiring future repayments is as follows: (In millions) Payments Due as of December 31, 2025 In less than 12 months In 12 months or more Total Long-term debt, including current maturities (1) $ 2,181.4 $ 4,206.5 $ 6,387.9 Dealer Holdback (2) 88.2 493.7 581.9 Operating lease obligations (3) 1.3 1.2 2.5 Purchase obligations (4) 5.2 18.7 23.9 Total financial obligations $ 2,276.1 $ 4,720.1 $ 6,996.2 (1)The amounts presented consist solely of principal and do not reflect deferred debt issuance costs of $33.9 million and unamortized debt discount of $0.1 million. We are also obligated to make interest payments at the applicable interest rates, as discussed in Note 9 to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference. Based on the actual principal amounts outstanding under our revolving secured line of credit facility, our Warehouse facilities, our Term ABS financings, and our senior notes as of December 31, 2025, the forecasted principal amounts outstanding on all other debt, and the actual interest rates in effect as of December 31, 2025, interest is expected to be approximately $350.8 million during 2026; $208.7 million during 2027; and $164.6 million during 2028 and thereafter. (2)We have contractual obligations to pay Dealer Holdback to Dealers. Payments of Dealer Holdback are contingent upon the receipt of consumer payments and the repayment of advances. The amounts presented represent our forecast as of December 31, 2025. (3)A lease liability of $2.1 million is recognized within accounts payable and accrued liabilities in our consolidated balance sheet as of December 31, 2025. (4)Purchase obligations consist primarily of contractual obligations related to our information system needs. Based upon anticipated cash flows, management believes that cash flows from operations and our various financing alternatives will provide sufficient financing for debt maturities and for future operations. Our ability to borrow funds may be impacted by economic and financial market conditions. If the various financing alternatives were to become limited or unavailable to us, our operations and liquidity could be materially and adversely affected. 44 Market Risk We are exposed primarily to market risks associated with movements in interest rates. Our policies and procedures prohibit the use of financial instruments for speculative purposes. Interest Rate Risk. We rely on various sources of financing, some of which contain floating rates of interest and expose us to risks associated with increases in interest rates. Assuming that we maintain a level amount of floating rate debt, an increase in interest rates may result in higher interest expense for our floating rate debt facilities. From time to time, we may manage that risk through the use of derivatives such as interest rate caps. As of December 31, 2025, we had $107.3 million of floating rate debt outstanding under our revolving secured lines of credit, without interest rate protection. For every 100-basis-point increase in interest rates on our revolving secured lines of credit, annual after-tax earnings would decrease by approximately $0.8 million, assuming we maintain a level amount of floating rate debt. As of December 31, 2025, we had an interest rate cap agreement outstanding to manage the interest rate risk on Warehouse Facility V. However, as of December 31, 2025, there was no floating rate debt outstanding under this facility. As of December 31, 2025, we did not have a balance outstanding under Warehouse Facility II, Warehouse Facility IV, Warehouse Facility VI, and Warehouse VIII, which do not have interest rate protection. As of December 31, 2025, we had $100.0 million in floating rate debt outstanding under Term ABS 2021-1, without interest rate protection. For every 100-basis-point increase in interest rates on Term ABS 2021-1, annual after-tax earnings would decrease by approximately $0.8 million, assuming we maintain a level amount of floating rate debt. As of December 31, 2025, we had $300.0 million in floating rate debt outstanding under Term ABS 2022-2, without interest rate protection. For every 100-basis-point increase in interest rates on Term ABS 2022-2, annual after-tax earnings would decrease by approximately $2.3 million, assuming we maintain a level amount of floating rate debt. New Accounting Updates Not Yet Adopted See Note 2 to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference, for information concerning the following new accounting updates and the impact of the implementation of these updates on our financial statements: •Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative •Disaggregation of Income Statement Expenses •Targeted Improvements to the Accounting for Internal-Use Software Forward-Looking Statements We make forward-looking statements in this report and may make such statements in future filings with the SEC. We may also make forward-looking statements in our press releases or other public or shareholder communications. Our forward-looking statements are subject to risks and uncertainties and include information about our expectations and possible or assumed future results of operations. When we use any of the words “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, we are making forward-looking statements. We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. These forward-looking statements represent our outlook only as of the date of this report. While we believe that our forward-looking statements are reasonable, actual results could differ materially since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of this Form 10-K, which is incorporated herein by reference, and the risks and uncertainties discussed elsewhere in this Form 10-K and in our other reports filed or furnished from time to time with the SEC. 45