Management said it continues to make regular “credit box improvements.” Prashad explained that some changes are made in response to credit performance in “small credit and geographical pockets,” but said most underwriting improvements are geared toward generating a faster return on the initial investment and increasing long-term returns with the company’s most loyal customers.Even with the added provision, management framed the higher new-customer investment as constructive. Prashad said the quarter marked ...

Financial Data and Key Metrics Changes - The company originated 16% more in new customer volume during the quarter, resulting in a 25% increase in outstanding ledger for active new customers compared to the same quarter last year [3][5] - Yields improved by 84 basis points year-over-year, indicating an increase in income [4] - Organic growth in ledger was 2.4% year-over-year, a recovery from a decline of 2.4% last year [6] Business Line Data and Key Metrics Changes - The first pay defaults for new customers are 19% lower compared to the same period in fiscal 2022, reflecting improved credit performance [4][5] - The average outstanding loan balance declined by approximately 2.5% year-over-year due to stricter underwriting and larger investments in new customers [6][7] Market Data and Key Metrics Changes - The customer base has grown organically by around 5.4% year-over-year, a significant increase from 2.2% last year [5] - The company has repurchased nearly 600,000 shares, reducing outstanding shares by 11% in the first nine months of the year [8] Company Strategy and Development Direction - The company is focused on improving branch operations and personnel management, with a commitment to long-term profitability and soundness of the portfolio [7][10] - There is an emphasis on maintaining credit quality while improving loan approval rates and customer retention [10] Management's Comments on Operating Environment and Future Outlook - Management has not observed any degradation in collections or credit quality, with a slight increase in demand noted [13] - There is optimism regarding the upcoming tax filing season, expecting larger refunds due to recent tax law changes [14] Other Important Information - The company has over $60 million remaining capacity for share repurchases, which could total around 20% of outstanding shares this year [8] - The current ice storm has affected some branches, but management remains optimistic about tax filing volume and revenue [9] Q&A Session Summary Question: Update on the health of the underlying consumer and trends observed - Management noted no significant change in consumer behavior and an increase in demand, with expectations for larger tax refunds this year [12][13] Question: Growth in G&A expenses and future trends - Management expects to see a decrease in incentive compensation expenses starting in Q4 due to a share-based comp grant being fully expensed [15][16] Question: Increase and subsequent reduction in headcount - The increase was to build a quality team in anticipation of turnover, while the reduction is expected due to underperforming team members [19][20] Question: Implications of a 10% cap on credit cards - Management indicated that while there are no direct implications for their major portfolio, a cap could drive demand for installment loans [21][22][23]

Financial Data and Key Metrics Changes - The company originated 16% more in new customer volume during the quarter, resulting in a 25% increase in outstanding ledger for active new customers compared to the same quarter last year [3] - Yields improved by 84 basis points year-over-year, indicating an increase in income [4] - Organic growth in ledger was 2.4% year-over-year, a recovery from a decline of 2.4% last year [6] Business Line Data and Key Metrics Changes - The first pay defaults for new customers are 19% lower compared to the same period in fiscal 2022, indicating improved credit performance [4][5] - The average outstanding loan balance declined by approximately 2.5% year-over-year due to stricter underwriting and larger investments in new customers [6] Market Data and Key Metrics Changes - The customer base has grown organically by around 5.4% year-over-year, a significant increase from 2.2% last year [5] - The company has seen substantial improvement in tax filing volume and revenue year-over-year, with expectations for larger tax refunds this year due to tax law changes [9][14] Company Strategy and Development Direction - The company is focused on improving branch operations and personnel management, with a commitment to long-term profitability and soundness of the portfolio [7][10] - There is an ongoing strategy to reduce headcount by 3%-5% in field-level offices, following an increase to build a quality team in anticipation of turnover [19] Management's Comments on Operating Environment and Future Outlook - Management has not observed any degradation in collections or credit quality, with a slight increase in demand noted [13] - The company remains optimistic about the upcoming tax filing season, expecting increased demand and larger refunds [14] Other Important Information - The company has repurchased nearly 600,000 shares, reducing outstanding shares by 11% in the first nine months of the year, with a remaining capacity for repurchases of over $60 million [8] - The current ice storm has affected operations in approximately 10 states, but management remains optimistic about revenue growth [9] Q&A Session Summary Question: Update on the health of the underlying consumer and outlook into tax refund season - Management has not seen a degradation in collections or credit quality, with an increase in demand and expectations for larger tax refunds this year [13][14] Question: Growth in G&A and future trends - Management expects to see a decrease in incentive compensation expenses starting in Q4, following a share-based comp grant last December [16] Question: Increase and subsequent decrease in headcount - The increase was to build a quality team in anticipation of turnover, with a reduction expected to occur quickly within the current quarter [19] Question: Implications of a 10% cap on credit cards - Management believes there would be a severe reduction in access to credit cards for lower credit scores, potentially increasing demand for installment loans [22][23]

Financial Data and Key Metrics Changes - The company originated 16% more in new customer volume during the quarter, resulting in a 25% increase in outstanding ledger for active new customers compared to the same quarter last year [3][4] - Yields improved by 84 basis points year-over-year, indicating an increase in income [4] - Organic growth in ledger was 2.4% year-over-year, a recovery from a decline of 2.4% last year [6] Business Line Data and Key Metrics Changes - The first pay defaults for new customers are 19% lower compared to the same period in fiscal 2022, indicating improved credit performance [4][5] - The average outstanding loan balance declined by approximately 2.5% year-over-year due to increased discipline in underwriting [6] Market Data and Key Metrics Changes - The customer base has grown organically by around 5.4% year-over-year, a significant increase from 2.2% growth last year [5] - The company has seen substantial improvement in tax filing volume and revenue year-over-year, with expectations for larger tax refunds this year due to tax law changes [8][12] Company Strategy and Development Direction - The company is focused on improving branch operations and personnel management, with a commitment to long-term profitability and soundness of the portfolio [6][9] - There is an ongoing strategy to repurchase shares, with nearly 600,000 shares repurchased, reducing outstanding shares by 11% [7] Management Comments on Operating Environment and Future Outlook - Management has not observed any degradation in collections or credit quality, with a slight increase in demand noted [12] - The company remains optimistic about the upcoming tax filing season, expecting increased demand and larger refunds [13] Other Important Information - The company has temporarily overstaffed to enhance branch team performance, with plans to reduce headcount by 3%-5% in the near future [18] - The current ice storm has affected operations in approximately 10 states, but management remains optimistic about revenue growth [8] Q&A Session Summary Question: Update on the health of the underlying consumer and outlook for tax refund season - Management noted no significant changes in consumer behavior and an increase in demand for tax filings, expecting larger refunds this year due to tax law changes [12][13] Question: Growth in G&A expenses and future trends - Management expects a decrease in incentive compensation expenses starting in Q4, with a share-based comp grant fully expensed [15] Question: Increase in headcount and subsequent reduction - The increase was to build a quality team in anticipation of turnover, with a reduction expected soon as underperforming team members are addressed [18] Question: Impact of a potential 10% cap on credit cards - Management indicated that while there are no direct implications for their major portfolio, a cap could increase demand for installment loans [20][21]

World Acceptance (WRLD) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of $0.58. This compares to earnings of $2.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -132.76%. A quarter ago, it was expected that this subprime consumer lender would post earnings of $1.87 per share when it actually produced a loss of $0.38, delivering a surprise of -120.32%.Over the last four quarters, the co ...

Loan Performance - Outstanding loans increased by 1.5% year over year in Q3 FY 2026, reaching $1.40 billion, compared to $1.38 billion in Q3 FY 2025[8] - Loan origination volume for new customers increased by 16.6% and for refinance customers by 8.0% compared to the same quarter last fiscal year[9] - Gross loans receivable increased to $1,402,316 million in Q3 2025 from $1,381,462 million in Q3 2024, reflecting a growth of 1.3% year-over-year[39] - Loan volume for the nine months ended December 31, 2025, reached $2,314,154 million, up from $2,161,632 million in the same period of 2024, representing a growth of 7.0%[39] Revenue and Profitability - Total revenues for Q3 FY 2026 rose to $141.3 million, a 1.9% increase from $138.6 million in Q3 FY 2025[12] - Total revenues for the first nine months of fiscal 2026 increased by 2.2% to $408.2 million compared to $399.6 million in the prior year[26] - Operating income as a percentage of total revenue decreased to 8.3% in Q3 2025 from 19.7% in Q3 2024, highlighting a decline in profitability[39] - The Company reported a net income (loss) per diluted share of $(0.30) for the nine months ended December 31, 2025, compared to $8.23 in the prior-year period[34] Credit Losses and Charge-offs - The provision for credit losses increased by $7.3 million to $51.4 million in Q3 FY 2026, compared to $44.1 million in Q3 FY 2025[13] - Net charge-offs increased to $46.6 million in Q3 FY 2026, up from $42.4 million in Q3 FY 2025, with a net charge-off rate of 18.7%[16] - Annualized net charge-offs as a percent of average net loans increased from 17.1% to 18.4% for the first nine months of fiscal 2026[26] - Net charge-offs as a percentage of average net loans receivable increased to 18.7% in Q3 2025 from 17.2% in Q3 2024, suggesting a rise in loan defaults[39] Expenses - General and administrative expenses rose by $10.8 million, or 16.1%, to $78.1 million in Q3 FY 2026[19] - Personnel expenses increased by $10.2 million, or 24.9%, compared to Q3 FY 2025, driven by higher incentive expenses and headcount growth[21] - General and administrative expenses as a percentage of total revenue rose to 55.3% in Q3 2025 from 48.5% in Q3 2024, indicating higher operational costs[39] Debt and Equity - Average debt outstanding rose from $534.0 million to $625.4 million, contributing to a debt to equity ratio increase to 1.9:1 at December 31, 2025[23] - Total liabilities increased to $790.8 million as of December 31, 2025, compared to $568.1 million in the previous year[36] Share Repurchase - The Company repurchased 102,559 shares, or 2.1% of its outstanding common stock, at an aggregate purchase price of approximately $15.0 million during the third quarter of fiscal 2026[25] - As of December 31, 2025, the Company had approximately $18.4 million in remaining repurchase capacity under its current share repurchase program[25] Customer Base - The unique customer base grew by 4.1% year over year, marking the largest growth since FY 2022[3] - The company expects lower charge-offs and improved profitability as new customers gain tenure in the portfolio[5]

GREENVILLE, S.C.--(BUSINESS WIRE)--World Acceptance Corporation (NASDAQ:WRLD) will provide an online, real-time webcast and rebroadcast of its third quarter conference call to be held on Tuesday, January 27, 2026. The earnings release will be issued prior to the call. The live broadcast of World Acceptance Corporation's conference call will be available online at WRLD 3Q26 Webcast on January 27 beginning at 10:00 a.m. (Eastern Time). The online replay will follow immediately and continue for 30 days. About ...

Core Insights - World Acceptance Corporation announced the planned retirement of D. Clinton Dyer, Executive Vice President and Chief Branch Operations Officer, effective March 31, 2026, after a 30-year career with the company [1][3] Company Overview - Founded in 1962, World Acceptance Corporation is a finance company providing personal installment loan solutions and tax preparation services to over one million customers annually [4] - The company operates more than 1,000 community-based World Finance branches across 16 states, primarily serving individuals without ready access to credit [4] Leadership Transition - D. Clinton Dyer has significantly contributed to the company's branch operations through leadership and operational knowledge [2][3] - J. Tobin Turner, Senior Vice President of Strategy and Analytics, will assume operational responsibilities during the transition period [3]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $134.47 million, a slight increase from $131.41 million in the same period of 2024, representing a growth of 2%[17] - Interest and fee income increased to $118.96 million for the three months ended September 30, 2025, compared to $113.91 million in the prior year, reflecting a growth of 4.5%[17] - Net income for the three months ended September 30, 2025, was a loss of $1.95 million, compared to a net income of $22.13 million in the same period of 2024, marking a significant decline[17] - Cash flow from operating activities for the six months ended September 30, 2025, was $106,782,688, compared to $102,175,477 for the same period in 2024, showing an increase of about 4.9%[24] - The company reported a net loss of $1,946,197 compared to a net income of $22,128,158 for the same period in 2024, indicating a significant decline in profitability[19] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $1.06 billion, an increase from $1.01 billion as of March 31, 2025, representing a growth of 5.3%[15] - The company's total liabilities increased to $696.72 million as of September 30, 2025, compared to $568.15 million as of March 31, 2025, reflecting a rise of 22.6%[15] - The total shareholders' equity decreased to $365,646,141 as of September 30, 2025, down from $417,463,754 a year earlier, reflecting a reduction of approximately 12.4%[21] Credit Losses and Provisions - The provision for credit losses for the three months ended September 30, 2025, was $49.84 million, up from $46.67 million in the same period of 2024, indicating an increase of 4.7%[17] - The company experienced a provision for credit losses of $100,356,871 for the six months ended September 30, 2025, compared to $92,087,528 for the same period in 2024, representing an increase of approximately 8.5%[24] - The allowance for credit losses increased from $109,027,028 in 2025 to $117,796,583 in 2025, reflecting a provision for credit losses of $49,840,902 during the three months ended September 30, 2025[73] Stock and Share Repurchase - The company repurchased common stock amounting to $67,290,785 during the three months ended September 30, 2025, compared to $10,097,355 in the same period of the previous year[19] - The Company authorized a share repurchase program of up to $100.0 million, with $33.4 million remaining as of September 30, 2025[37] - On September 3, 2025, the Company repurchased 347,064 shares for $60.0 million at a price of $172.88 per share[38] Loan Portfolio - Total gross loans receivable increased to $1,315.5 million as of September 30, 2025, up from $1,225.6 million as of March 31, 2025[60] - The weighted average Rehab Rate for loans was 5.2% as of September 30, 2025, compared to 4.5% as of March 31, 2025[61] - Current gross loans receivable totaled $1,314,135,845, with $1,139,961,629 classified as current loans[63] - Gross charge-offs for the three months ended September 30, 2025, reached $45,294,964, with the majority coming from loans originated in 2025 at $41,964,087[66] Tax and Interest - The effective income tax rate for the three months ended September 30, 2025, was a negative 15.4%, compared to 20.8% for the prior year quarter[144] - The company recognized tax benefits from investments amounting to $3.6 million for the three months ended September 30, 2025[142] - The company’s interest paid during the period was $23,212,950 for the six months ended September 30, 2025, compared to $21,468,005 for the same period in 2024, representing an increase of approximately 8.1%[24] Operating Expenses - General and administrative expenses for the three months ended September 30, 2025, were $71.97 million, compared to $46.36 million in the same period of 2024, an increase of 55.5%[17] - Operating lease costs for the three months ended September 30, 2025, were $6,168,464, slightly down from $6,279,769 in 2024[83] Debt and Financing - The Company entered into a new Revolving Credit Agreement with aggregate commitments of $640.0 million, which can increase to $790.0 million with an accordion feature[123] - At September 30, 2025, $584.6 million was outstanding under the Revolving Credit Facility, with an unused amount of $54.5 million available[125] - The Company recognized a $3.7 million loss on extinguishment of debt during the six months ended September 30, 2025[132] Stock-Based Compensation - The total fair value of restricted stock vested during the six months ended September 30, 2025, was $11,871,873[110] - The company’s stock-based compensation related to equity classified awards resulted in a reversal of $19,012,696 for the six months ended September 30, 2024, compared to a gain of $9,162,775 in the current period[24] - The total stock-based compensation included as a component of personnel expenses for the three months ended September 30, 2025, was $6,056,068[112]

Core Viewpoint - World Acceptance Corporation (WRLD) is assigned a 'Hold' rating, viewed as a compelling but high-risk turnaround case at a significant inflection point [1] Group 1: Investment Thesis - The forward bull argument for WRLD is based on two catalysts that could drive future performance [1]