World Acceptance Corporation Reports Fiscal 2027 Second Quarter Results
Lower credit-loss provisions accompanied a return to quarterly profit, while charge-off rates and leverage increased year over year.
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Second fiscal quarter highlights
Highlights from the second quarter include:
-
Net income of
$8.8 million $1.92 $10.4 million $2.25 -
Total revenues increased
$4.4 million $139.2 million 3.2% , compared to the same quarter of the prior fiscal year; -
Loans 0-60 days past due on a recency basis decreased from
20.0% as of September 30, 2025, to18.9% as of September 30, 2026; -
Loans 61 days or more past due on a recency basis decreased from
5.8% as of September 30, 2025, to5.4% as of September 30, 2026; and -
Repurchased 133,199 shares, or
3.0% of the outstanding shares, for approximately$25.0 million
Portfolio results
Gross loans outstanding were
During the most recent quarter, borrowing by existing customers increased, compared to the prior-year quarter, while borrowing by new customers declined. Refinanced customer loan volume increased
The following table includes the volume of gross loan origination balances, excluding tax advance loans, by customer type for the following comparative quarterly periods:
|
Q2 FY 2027 |
Q2 FY 2026 |
Q2 FY 2025 |
New Customers |
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|
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Former Customers |
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Refinance Customers |
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As of September 30, 2026, World Acceptance Corporation (the "Company" or "we") had 1,009 open branches. For branches open at least twelve months, same store gross loans increased
Three-month financial results
Net income for the second quarter of fiscal 2027 increased by
Total revenues for the second quarter of fiscal 2027 increased to
The provision for credit losses decreased
CECL Allowance and Provision (Dollars in millions) |
|
Q2 FY 2027 |
|
Q2 FY 2026 |
|
Difference |
|
Reconciliation |
Beginning Allowance - June 30 |
|
|
|
|
|
|
|
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Change due to Growth |
|
|
|
|
|
|
|
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Change due to Expected Loss Rate on Performing Loans |
|
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|
|
|
|
|
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Change due to 90 days past due |
|
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|
|
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Ending Allowance - September 30 |
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|
|
|
|
|
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Net Charge-offs |
|
|
|
|
|
|
|
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Provision |
|
|
|
|
|
|
|
|
Note: The change in allowance for the quarter plus net charge-offs for the quarter equals the provision for the quarter (see above reconciliation). |
||||||||
Net charge-offs for the quarter increased
Accounts 61 days or more past due decreased to
The table below reflects the customer tenure-based methodology, which aligns with our CECL methodology and illustrates changes in portfolio weighting.
Gross Loan Balance By Customer Tenure at Origination |
|||
As of |
Less Than 2 Years |
More Than 2 Years |
Total |
09/30/2021 |
|
|
|
09/30/2022 |
|
|
|
09/30/2023 |
|
|
|
09/30/2024 |
|
|
|
09/30/2025 |
|
|
|
09/30/2026 |
|
|
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Year-Over-Year Growth (Decline) in Gross Loan Balance by Customer Tenure at Origination |
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12 Month Period Ended |
Less Than 2 Years |
More Than 2 Years |
Total |
09/30/2021 |
|
|
|
09/30/2022 |
|
|
|
09/30/2023 |
|
|
|
09/30/2024 |
|
|
|
09/30/2025 |
|
|
|
09/30/2026 |
|
|
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Portfolio Mix by Customer Tenure at Origination |
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As of |
Less Than 2 Years |
More Than 2 Years |
09/30/2021 |
|
|
09/30/2022 |
|
|
09/30/2023 |
|
|
09/30/2024 |
|
|
09/30/2025 |
|
|
09/30/2026 |
|
|
General and administrative (“G&A”) expenses decreased
Personnel expense decreased
Salary expense decreased approximately
Benefit expense increased approximately
Incentive expense decreased
Occupancy and equipment expense increased approximately
Advertising expense increased
Interest expense for the quarter ended September 30, 2026, decreased by
Other key return ratios for the second quarter of fiscal 2027 included a
The Company repurchased 133,199 shares, or
Six-month financial results
Net income for the six months ended September 30, 2026, was
Total revenues for the first six months of fiscal 2027 increased
Non-GAAP financial measures
From time-to-time the Company uses certain financial measures derived on a basis other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. Such financial measures qualify as “non-GAAP financial measures” as defined in SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items and other infrequent charges. The Company may present these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components to understanding and assessing the Company’s financial performance. Such non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP and are, thus, susceptible to varying calculations, any non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies.
For purposes of assessing performance, the Company has presented adjusted net income and adjusted net income per diluted share for the six-months ended September 30, 2026, to remove the after-tax impact of the CEO transition expense from the corresponding GAAP earnings metrics. Management believes these non-GAAP measures provide investors with useful supplemental information regarding the Company's operating performance by excluding an item management does not consider indicative of ongoing operations.
This measure has limitations as an analytical tool and should not be considered in isolation or as a substitute for GAAP earnings or other income statement data prepared in accordance with GAAP. The following table reconciles GAAP income before income taxes to Adjusted net income:
|
Six months ended September 30, |
|
Six months ended September 30, |
|
2026 |
|
2025 |
|
|
|
|
Income before income taxes |
|
|
|
|
|
|
|
Expenses: |
|
|
|
Personnel |
4,317,348 |
|
— |
Other |
484,272 |
|
— |
Adjusted income before income taxes |
24,367,568 |
|
965,157 |
Income tax expense at actual rate |
5,848,216 |
|
1,042,303 |
Adjusted net income (loss) |
|
|
|
|
|
|
|
Weighted average dilutive shares outstanding |
4,569,698 |
|
5,158,066 |
|
|
|
|
Adjusted net income (loss) per common share, diluted |
|
|
|
About World Acceptance Corporation (World Finance)
Founded in 1962, World Acceptance Corporation (NASDAQ: WRLD), is a people-focused finance company that provides personal installment loan solutions and personal tax preparation and filing services to over one million customers each year. Headquartered in Greenville, South Carolina, the Company operates more than 1,000 community-based World Finance branches across 16 states. The Company primarily serves a segment of the population that does not have ready access to credit; however, unlike many other lenders in this segment, we strive to work with our customers to understand their broader financial pictures, ensure they have the ability and stability to make payments, and help them achieve their financial goals. For more information, visit www.loansbyworld.com.
Second quarter conference call
The senior management of World Acceptance Corporation will be discussing these results in its quarterly conference call to be held at 10:00 a.m. Eastern Time today. A simulcast of the conference call will be available on the Internet at https://event.choruscall.com/mediaframe/webcast.html?webcastid=035RXwGf. The call will be available for replay on the Internet for approximately 30 days.
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
Cautionary Note Regarding Forward-looking Information
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, that represent the Company’s current expectations or beliefs concerning future events. Statements other than those of historical fact, as well as those identified by words such as “anticipate,” “estimate,” "intend,” “plan,” “expect,” “project,” “believe,” “may,” “will,” “should,” “would,” “could,” “probable” and any variation of the foregoing and similar expressions are forward-looking statements. Such forward-looking statements are inherently subject to risks and uncertainties. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include the following: recently enacted, proposed or future legislation and the manner in which it is implemented, including pursuant to policies of the current U.S. administration; changes in the U.S. tax code; the nature and scope of regulatory authority, particularly discretionary authority, that is or may be exercised by regulators, including, but not limited to, U.S. Consumer Financial Protection Bureau, and individual state regulators having jurisdiction over the Company; the unpredictable nature of regulatory examinations, proceedings and litigation; employee misconduct or misconduct by third parties; uncertainties associated with management turnover and the effective succession of senior management, including the recent CEO transition; media and public characterization of consumer installment loans; labor unrest; the impact of changes in accounting rules and regulations, or their interpretation or application, which could materially and adversely affect the Company’s reported consolidated financial statements or necessitate material delays or changes in the issuance of the Company’s audited consolidated financial statements; the Company's assessment of its internal control over financial reporting; changes in interest rates; the impact of inflation and macroeconomic uncertainty; political and other risks, including the impact of wars, geopolitical conflict, regional conflicts and terrorism; risks relating to the acquisition or sale of assets or businesses or other strategic initiatives, including increased loan delinquencies or net charge-offs, the loss of key personnel, integration or migration issues, the failure to achieve anticipated synergies, increased costs of servicing, incomplete records, and retention of customers; risks inherent in making loans, including repayment risks and value of collateral; cybersecurity threats or incidents, including the potential or actual misappropriation of assets or sensitive information, corruption of data or operational disruption and the cost of the associated response thereto; our dependence on debt and the potential impact of limitations in the Company’s revolving credit facility and warehouse facility or other impacts on the Company's ability to borrow money on favorable terms, or at all; the timing and amount of revenues that may be recognized by the Company; changes in current revenue and expense trends (including trends affecting delinquency and charge-offs); the impact of extreme weather events and natural disasters; changes in the Company’s markets and general changes in the economy (particularly in the markets served by the Company).
These and other factors are discussed in greater detail in Part I, Item 1A,“Risk Factors” in the Company’s most recent annual report on Form 10-K for the fiscal year ended March 31, 2026, as filed with the SEC and the Company’s other reports filed with, or furnished to, the SEC from time to time. World Acceptance Corporation does not undertake any obligation to update any forward-looking statements it makes. The Company is also not responsible for updating the information contained in this press release beyond the publication date, or for changes made to this document by wire services or Internet services.
WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES
|
|||||||||||||
(unaudited and in thousands, except per share amounts) |
|||||||||||||
|
Three months ended September 30, |
|
Six months ended September 30, |
||||||||||
|
|
2026 |
|
|
2025 |
|
|
|
2026 |
|
|
2025 |
|
Revenues: |
|
|
|
|
|
|
|
||||||
Interest and fee income |
$ |
123,277 |
|
$ |
118,958 |
|
|
$ |
244,792 |
|
$ |
234,261 |
|
Insurance and other income, net |
|
15,930 |
|
|
15,890 |
|
|
|
33,624 |
|
|
33,362 |
|
Total revenues |
|
139,207 |
|
|
134,848 |
|
|
|
278,416 |
|
|
267,623 |
|
|
|
|
|
|
|
|
|
||||||
Expenses: |
|
|
|
|
|
|
|
||||||
Provision for credit losses |
|
46,002 |
|
|
49,841 |
|
|
|
89,759 |
|
|
100,357 |
|
General and administrative expenses: |
|
|
|
|
|
|
|
||||||
Personnel |
|
44,146 |
|
|
47,989 |
|
|
|
94,972 |
|
|
93,751 |
|
Occupancy and equipment |
|
12,345 |
|
|
11,820 |
|
|
|
24,380 |
|
|
23,605 |
|
Advertising |
|
2,968 |
|
|
2,171 |
|
|
|
5,093 |
|
|
4,470 |
|
Amortization of intangible assets |
|
752 |
|
|
809 |
|
|
|
1,526 |
|
|
1,640 |
|
Other |
|
9,675 |
|
|
9,180 |
|
|
|
20,046 |
|
|
18,863 |
|
Total general and administrative expenses |
|
69,886 |
|
|
71,969 |
|
|
|
146,017 |
|
|
142,329 |
|
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
11,651 |
|
|
14,343 |
|
|
|
23,074 |
|
|
23,972 |
|
Total expenses |
|
127,539 |
|
|
136,153 |
|
|
|
258,850 |
|
|
266,658 |
|
|
|
|
|
|
|
|
|
||||||
Income (loss) before income taxes |
|
11,668 |
|
|
(1,305 |
) |
|
|
19,566 |
|
|
965 |
|
|
|
|
|
|
|
|
|
||||||
Income tax expense |
|
2,913 |
|
|
358 |
|
|
|
4,705 |
|
|
1,042 |
|
|
|
|
|
|
|
|
|
||||||
Net income (loss) |
$ |
8,755 |
|
$ |
(1,663 |
) |
|
$ |
14,861 |
|
$ |
(77 |
) |
|
|
|
|
|
|
|
|
||||||
Net income (loss) per common share, diluted |
$ |
1.92 |
|
$ |
(0.33 |
) |
|
$ |
3.25 |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
||||||
Weighted average diluted shares outstanding |
|
4,558 |
|
|
5,093 |
|
|
|
4,570 |
|
|
5,158 |
|
| WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES | |||||||||||
CONSOLIDATED BALANCE SHEETS |
|||||||||||
(unaudited and in thousands) |
|||||||||||
|
September 30, 2026 |
|
March 31, 2026 |
|
September 30, 2025 |
||||||
ASSETS |
|
|
|
|
|
||||||
Cash |
$ |
8,308 |
|
|
$ |
6,071 |
|
|
$ |
9,409 |
|
Gross loans receivable |
|
1,319,019 |
|
|
|
1,278,988 |
|
|
|
1,315,492 |
|
Less: |
|
|
|
|
|
||||||
Unearned interest, insurance and fees |
|
(346,909 |
) |
|
|
(325,064 |
) |
|
|
(339,119 |
) |
Allowance for credit losses |
|
(116,326 |
) |
|
|
(112,047 |
) |
|
|
(117,797 |
) |
Loans receivable, net |
|
855,784 |
|
|
|
841,877 |
|
|
|
858,576 |
|
Restricted cash |
|
19,001 |
|
|
|
23,303 |
|
|
|
5,473 |
|
Income taxes receivable |
|
5,887 |
|
|
|
2,421 |
|
|
|
11,574 |
|
Operating lease right-of-use assets, net |
|
75,608 |
|
|
|
71,527 |
|
|
|
73,051 |
|
Property and equipment, net |
|
17,021 |
|
|
|
17,431 |
|
|
|
18,465 |
|
Deferred income taxes, net |
|
38,182 |
|
|
|
41,241 |
|
|
|
33,176 |
|
Other assets, net |
|
54,041 |
|
|
|
38,669 |
|
|
|
40,191 |
|
Goodwill |
|
7,371 |
|
|
|
7,371 |
|
|
|
7,371 |
|
Intangible assets, net |
|
2,684 |
|
|
|
4,209 |
|
|
|
5,755 |
|
Total assets |
$ |
1,083,887 |
|
|
$ |
1,054,120 |
|
|
$ |
1,063,041 |
|
|
|
|
|
|
|
||||||
LIABILITIES & SHAREHOLDERS' EQUITY |
|
|
|
|
|
||||||
Liabilities: |
|
|
|
|
|
||||||
Revolving credit facility |
$ |
502,521 |
|
|
$ |
443,935 |
|
|
$ |
584,586 |
|
Warehouse facility |
|
89,572 |
|
|
|
143,293 |
|
|
|
— |
|
Operating lease liability |
|
78,075 |
|
|
|
73,965 |
|
|
|
75,497 |
|
Accounts payable and accrued expenses |
|
61,820 |
|
|
|
37,996 |
|
|
|
36,632 |
|
Deferred revenue (contract liability) |
|
3,061 |
|
|
|
3,926 |
|
|
|
2,644 |
|
Total liabilities |
|
735,049 |
|
|
|
703,115 |
|
|
|
699,359 |
|
|
|
|
|
|
|
||||||
Shareholders' equity |
|
348,838 |
|
|
|
351,005 |
|
|
|
363,682 |
|
Total liabilities and shareholders' equity |
$ |
1,083,887 |
|
|
$ |
1,054,120 |
|
|
$ |
1,063,041 |
|
| WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES | |||||||||||||||
SELECTED CONSOLIDATED STATISTICS |
|||||||||||||||
(unaudited and in thousands, except percentages and branches) |
|||||||||||||||
|
Three months ended September 30, |
|
Six months ended September 30, |
||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
|
|
|
|
|
|
|
||||||||
Gross loans receivable |
$ |
1,319,019 |
|
|
$ |
1,315,492 |
|
|
$ |
1,319,019 |
|
|
$ |
1,315,492 |
|
Average gross loans receivable (1) |
|
1,303,977 |
|
|
|
1,294,106 |
|
|
|
1,292,621 |
|
|
|
1,267,156 |
|
Net loans receivable (2) |
|
972,110 |
|
|
|
976,373 |
|
|
|
972,110 |
|
|
|
976,373 |
|
Average net loans receivable (3) |
|
961,198 |
|
|
|
959,473 |
|
|
|
956,064 |
|
|
|
941,397 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses as a percentage of total revenue: |
|
|
|
|
|
|
|
||||||||
Provision for credit losses |
|
33.0 |
% |
|
|
37.0 |
% |
|
|
32.2 |
% |
|
|
37.5 |
% |
General and administrative |
|
50.2 |
% |
|
|
53.4 |
% |
|
|
52.4 |
% |
|
|
53.2 |
% |
Interest expense |
|
8.4 |
% |
|
|
10.6 |
% |
|
|
8.3 |
% |
|
|
9.0 |
% |
Operating income as a % of total revenue (4) |
|
16.8 |
% |
|
|
9.7 |
% |
|
|
15.3 |
% |
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
||||||||
Loan volume (5) |
|
733,123 |
|
|
|
729,803 |
|
|
|
1,492,040 |
|
|
|
1,481,305 |
|
|
|
|
|
|
|
|
|
||||||||
Net charge-offs as percent of average net loans receivable on an annualized basis |
|
17.6 |
% |
|
|
17.1 |
% |
|
|
17.9 |
% |
|
|
18.3 |
% |
|
|
|
|
|
|
|
|
||||||||
Return on average assets (trailing 12 months) |
|
4.6 |
% |
|
|
5.5 |
% |
|
|
4.6 |
% |
|
|
5.5 |
% |
|
|
|
|
|
|
|
|
||||||||
Return on average equity (trailing 12 months) |
|
13.9 |
% |
|
|
13.9 |
% |
|
|
13.9 |
% |
|
|
13.9 |
% |
|
|
|
|
|
|
|
|
||||||||
Branches opened or acquired (merged or closed), net |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
|
|
|
|
|
|
||||||||
Branches open (at period end) |
|
1,009 |
|
|
|
1,013 |
|
|
|
1,009 |
|
|
|
1,013 |
|
| ____________________ |
(1) Average gross loans receivable is determined by averaging month-end gross loans receivable over the indicated period. |
(2) Net loans receivable is defined as gross loans receivable less unearned interest, insurance and fees. |
(3) Average net loans receivable is determined by averaging month-end gross loans receivable less unearned interest, insurance and fees over the indicated period. |
(4) Operating income is computed as total revenues less provision for credit losses and general and administrative expenses. |
(5) Loan volume includes all loan balances originated by the Company. It does not include loans purchased through acquisitions. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20261023933210/en/
John L. Calmes, Jr.
President and Chief Executive Officer
(864) 298-9800
Source: World Acceptance Corporation