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]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Financial Data and Key Metrics Changes - The company reported a one-time expense of $3.7 million from early bond redemption, impacting earnings per share (EPS) by approximately $0.57 after tax [3] - A discrete tax-related expense of $1.3 million from discontinued Mexico operations impacted EPS by approximately $0.26 after tax [3] - The total impact of these unusual events on EPS for the quarter was around $1.61 after tax [15] Business Line Data and Key Metrics Changes - New customer growth reached the highest level in four years, resulting in a new customer portfolio that is 35% larger year-over-year [4] - New customer origination volume increased by approximately 40% year-over-year, returning to pre-COVID levels [6] - The first payment default rate for new originations is in line with fiscal years 2019 and 2020, indicating stable credit quality [7] Market Data and Key Metrics Changes - The overall loan volume for the first half of the fiscal year was 14% higher than the previous year, marking the highest volume on record for that period [8] - The portfolio grew nominally by 5.5% year-over-year, with a 1.5% increase at the end of the second quarter compared to the previous year [8] Company Strategy and Development Direction - The company is focusing on customer base expansion, strong loan growth, and improved loan approval rates while maintaining credit quality [10] - A new credit agreement was completed, increasing commitments to $640 million and allowing for stock repurchases of up to 100% of net income [9] - The company aims for modest growth in the mid to low single digits on the portfolio side and mid to high single digits on the customer base side [25] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of consumer weakness in the auto loan sector, they have not observed major signs of weakness in their portfolio [22] - The company has proactively tightened its credit criteria for new customers without significantly impacting overall approval rates [22] Other Important Information - The company repurchased and canceled $170 million of bonds and has already repurchased 9.1% of its shares year-to-date, with additional capacity for further repurchases [9] Q&A Session Summary Question: Clarification on discrete items impacting EPS - Management confirmed the EPS impacts: $0.26 from Mexico, $0.57 from bond redemption, and $0.78 from increased provision due to new customer growth [15] Question: Inquiry about operating expenses and personnel expenses - Management confirmed the increase in personnel expenses and provided a breakdown of expected future expenses [16][17] Question: Health of the underlying consumer and its impact - Management acknowledged consumer weakness in the auto sector but stated no major signs of weakness in their portfolio [22] Question: Update on marketing efforts and competitive environment - Management discussed successful marketing strategies that reduced customer acquisition costs and indicated a focus on modest growth [24][25]

Financial Data and Key Metrics Changes - The company reported a one-time expense of $3.7 million from early bond redemption, impacting earnings per share (EPS) by approximately $0.57 after tax [3] - A discrete tax-related expense of $1.3 million from discontinued Mexico operations impacted EPS by approximately $0.26 after tax [3] - The total impact of these unusual events on EPS for the quarter was around $1.61 after tax [15] Business Line Data and Key Metrics Changes - New customer origination volume increased by approximately 40% year over year at the end of the second quarter [5] - Year-to-date new customer origination volume is up 35%, returning to pre-COVID levels [6] - The first payment default rate for new originations is in line with fiscal years 2019 and 2020, indicating improved credit quality [7] Market Data and Key Metrics Changes - The company experienced a 5.5% nominal growth in the portfolio compared to last year, with a 1.5% year-over-year increase at the end of the second quarter [8] - The first half of the fiscal year had a 14% higher loan volume than the previous year, marking the highest volume on record for that period [8] Company Strategy and Development Direction - The company is focused on customer base expansion, strong loan growth, and improving credit quality while maintaining low delinquency rates [10] - A new credit agreement allows for stock repurchases of up to 100% of net income, increasing from 50% in the prior agreement [9] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of consumer weakness in the auto loan sector, they have not observed major signs of weakness in their portfolio [22] - The company has proactively tightened its credit criteria for new customers without significantly affecting overall approval rates [22] Other Important Information - The company repurchased and canceled $170 million of bonds, enhancing its capital position [9] - Long-term incentive compensation expenses increased by approximately $23.9 million year-over-year due to changes in compensation plans [5] Q&A Session Summary Question: Clarification on discrete items impacting EPS - Management confirmed the EPS impacts: $0.26 from Mexico, $0.57 from bond redemption, and $0.78 from increased provision due to new customer growth [15] Question: Inquiry about operating expenses and future projections - Management confirmed the increase in personnel expenses and provided a breakdown of expected future expenses [16][17] Question: Request for diluted share count information - The quarter ending share count was approximately 4.8 million, with dilution typically ranging from 100,000 to 200,000 shares [18] Question: Health of the underlying consumer and demand - Management acknowledged consumer weakness in the auto sector but stated no major signs of weakness in their portfolio [22] Question: Update on marketing efforts and competitive environment - Management discussed successful marketing strategies that reduced customer acquisition costs and aimed for modest growth in the portfolio [24][25]

Financial Data and Key Metrics Changes - The company reported a one-time expense of $3.7 million from the early redemption of bonds, impacting earnings per share (EPS) by approximately $0.57 after tax [3] - A discrete tax-related expense of $1.3 million from discontinued Mexico operations impacted EPS by approximately $0.26 after tax [3] - The total impact of these unusual events on EPS for the quarter was around $1.61 after tax [3] - Long-term incentive compensation expenses increased by approximately $23.9 million year-over-year, with $5.8 million expensed this quarter compared to an $18.1 million reversal last year [5] Business Line Data and Key Metrics Changes - New customer origination volume increased by around 40% year-over-year at the end of the second quarter, returning to pre-COVID levels [5] - The first payment default rate for new originations is in line with fiscal years 2019 and 2020, indicating stable credit quality [6] - Overall loan volume for the first half of the fiscal year was 14% higher than last year, marking the highest volume on record for that period [7] Market Data and Key Metrics Changes - The company ended the second quarter with a portfolio up 1.5% year-over-year, recovering from a 4% decline at the beginning of the fiscal year [7] - The company repurchased and canceled $170 million of bonds, enhancing its capital position [8] Company Strategy and Development Direction - The company aims for modest growth in the mid to low single digits on the portfolio side and mid to high single digits on the customer base side [20] - Marketing strategies have shifted to a test-and-learn environment, successfully reducing the cost of acquisition for new customers [20] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of weakness in the broader consumer market, particularly in auto loans, they have not observed major weaknesses in their portfolio [18] - The company has proactively tightened its credit criteria for new customers without significantly affecting overall approval rates [18] Other Important Information - The company has already repurchased 9.1% of its shares year-to-date, with additional capacity to repurchase another $77 million this year [8] - The company is focused on enhancing shareholder value through strong EPS growth and a declining share count [9] Q&A Session Summary Question: Clarification on the three discrete items impacting EPS - Management confirmed the $0.26 from Mexico, $0.57 from bond redemption, and approximately $0.78 from increased provision due to new customer growth [12] Question: Inquiry about operating expenses and personnel expense projections - Management confirmed the increase in personnel expenses and provided a breakdown of expected future expenses [13] Question: Health of the underlying consumer and its impact - Management acknowledged general consumer weakness but stated that their portfolio remains stable with proactive credit tightening [17][18] Question: Update on marketing efforts and competitive environment - Management discussed successful marketing strategies that have reduced acquisition costs and indicated a focus on modest growth [19][20]

Financial Data and Key Metrics Changes - The company reported a one-time expense of $3,700,000 from the early redemption of bonds, impacting earnings per share (EPS) by approximately $0.57 after tax [3] - A discrete tax-related expense of $1,300,000 from prior Mexico operations impacted EPS by approximately $0.26 after tax [4] - The total impact of these unusual events on EPS for the quarter was around $1.61 after tax [4][5] - The company experienced a year-over-year increase in new customer origination volume of approximately 40% at the end of the second quarter [6] - The portfolio nominally grew by 5.5% year-over-year, with a 1.5% increase compared to the previous year [9] Business Line Data and Key Metrics Changes - New customer origination volume for the year-to-date is up 35%, returning to pre-COVID levels [6] - The first pay default rate and delinquency rate for new originations are in line with fiscal years 2019 and 2020 [8] - Non-refinance originations increased by 15% year-over-year in the second quarter, marking the highest volume for that quarter except for fiscal year 2022 [8] Market Data and Key Metrics Changes - The company has seen a stable and improving delinquency rate while maintaining credit quality [10] - The company has proactively tightened its credit box for new customers multiple times this fiscal year, although no major signs of weakness in consumer performance have been observed [22] Company Strategy and Development Direction - The company is focusing on substantial customer base expansion, strong loan growth, and improved loan approval rates while maintaining credit quality [10] - Marketing efforts have shifted to a test-and-learn environment, successfully reducing the cost of acquisition for new customers [25] - The company aims for modest growth in marketing budgets, targeting mid to low single digits for portfolio growth and mid to high single digits for customer base growth [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the overall health of the consumer, noting that while there are signs of weakness in the auto loan sector, their portfolio remains stable [21][22] - The company is optimistic about returning enhanced value to shareholders through strong EPS growth and a declining share count [10] Other Important Information - The company repurchased and canceled $170,000,000 of bonds and established a $175,000,000 warehouse facility [9] - A new credit agreement was completed, increasing commitments to $640,000,000 and allowing for stock repurchases of up to 100% of net income [10] Q&A Session Summary Question: Clarification on the three discrete items impacting EPS - The impact on EPS was $0.26 from Mexico, $0.57 from bond redemption, and $0.78 from increased provision due to new customer growth [14] Question: Inquiry about operating expenses and personnel expense increase - The net difference in personnel expense was confirmed, with a decrease expected in future quarters [16] Question: Health of the underlying consumer and its impact on demand and credit - Management noted no major signs of weakness in their portfolio despite broader market concerns, with proactive credit tightening measures in place [22] Question: Update on marketing efforts and competitive environment - The company has successfully reduced acquisition costs through new marketing strategies and is seeing increased demand and application volume [26]

Core Insights - World Acceptance (WRLD) reported a quarterly loss of $0.38 per share, significantly missing the Zacks Consensus Estimate of $1.87, and down from earnings of $3.99 per share a year ago, indicating an earnings surprise of -120.32% [1] - The company posted revenues of $134.47 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 6.21% and showing a year-over-year increase from $131.41 million [2] - World Acceptance shares have increased by approximately 58.1% since the beginning of the year, outperforming the S&P 500's gain of 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.25 on revenues of $134.83 million, while for the current fiscal year, the estimate is $12.53 on revenues of $556.59 million [7] - The estimate revisions trend for World Acceptance was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Consumer Loans industry, to which World Acceptance belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Executive Summary & Fiscal 2026 Second Quarter Highlights](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Fiscal%202026%20Second%20Quarter%20Highlights) World Acceptance Corporation reported a net loss per diluted share of $0.38 for Q2 FY2026, driven by strategic investments and bond redemption expenses, while achieving its first year-over-year growth in outstanding loans since September 2022 and significant customer base expansion [Overall Performance and Strategic Positioning](index=1&type=section&id=1.1%20Overall%20Performance%20and%20Strategic%20Positioning) World Acceptance Corporation reported a net loss per diluted share of $0.38 for Q2 FY2026, primarily due to expenses from early bond redemption and investments in portfolio growth. Despite the loss, the company achieved its first year-over-year growth in outstanding loans since September 2022, indicating a strategic shift towards improving results in fiscal 2027 and beyond - The Company experienced a net loss per diluted share of **$0.38** for the quarter due to expenses related to the early redemption of bonds and the return to portfolio growth, but believes these investments position it well for improving results in fiscal 2027 and beyond[2](index=2&type=chunk) Key Financial Performance (Q2 FY2026 vs Q2 FY2025) | Metric | Q2 FY2026 | Q2 FY2025 | Change (YoY) | | :----------------------------- | :-------- | :-------- | :----------- | | Net Loss per Diluted Share | $(0.38) | $3.99 | $(4.37) | | Outstanding Loans Growth (YoY) | 1.5% | - | First YoY growth since Sep 2022 | | Gross Loans Outstanding | $1.32B | $1.30B | +1.5% | [Portfolio and Customer Growth](index=1&type=section&id=1.2%20Portfolio%20and%20Customer%20Growth) The company achieved significant growth in its loan portfolio and customer base. Gross loans outstanding increased by 1.5% year-over-year and 4.0% sequentially. New, former, and refinance customer loan volumes saw substantial increases, contributing to a 6.2% growth in the overall customer base and a 5.8% increase in unique borrowers Loan Portfolio and Customer Growth Metrics | Metric | Q2 FY2026 (YoY Change vs Q2 FY2025) | | :----------------------------------------- | :---------------------------------- | | Gross Loans Outstanding (YoY) | +1.5% | | Gross Loans Outstanding (Sequential) | +4.0% | | New Customer Loan Volume | +40.4% | | Former Customer Loan Volume | +4.1% | | Refinance Customer Loan Volume | +1.0% | | Customer Base (12-month period) | +6.2% | | Unique Borrowers (QoQ) | +5.8% | | Same Store Gross Loans (12-month period) | +3.3% | | Same Store Customer Base (12-month period) | +7.9% | Gross Loan Origination Balances by Customer Type (Excluding Tax Advance Loans) | Customer Type | Q2 FY 2026 | Q2 FY 2025 | Q2 FY 2024 | | :---------------- | :----------- | :----------- | :----------- | | New Customers | $62,445,847 | $44,479,349 | $36,822,744 | | Former Customers | $104,794,933 | $100,630,514 | $90,227,607 | | Refinance Customers | $562,635,073 | $557,020,707 | $541,181,690 | - The Company expects portfolio gross and net yield to continue to improve by shrinking the average gross loan balance through increasing new and former customer small loan volume and maintaining tighter underwriting of large loans[4](index=4&type=chunk) [Key Financial and Corporate Actions](index=1&type=section&id=1.3%20Key%20Financial%20and%20Corporate%20Actions) During the quarter, the company increased interest, fee, and insurance income by 3.6% with a 136 basis point yield increase. Strategic financial moves included amending its revolving credit facility to boost commitments and share repurchase capacity, early redemption of outstanding bonds incurring $3.7 million in expenses, establishing a $175 million warehouse facility, and repurchasing $66.6 million (7.4%) of outstanding shares - Interest, fee and insurance income increased by **$4.6 million**, or **3.6%**, including a **136 basis point** yield increase compared to the same quarter in the prior year[5](index=5&type=chunk) - The Company amended its revolving credit facility to increase commitments, extend term and increase share repurchase capacity[5](index=5&type=chunk) - The Company redeemed remaining outstanding bonds early, resulting in early redemption expenses of **$3.7 million**, and established a **$175 million** warehouse facility[5](index=5&type=chunk) - The Company repurchased **$66.6 million** shares, or **7.4%** of the outstanding shares, during the quarter[5](index=5&type=chunk) [Three-Month Financial Results (Q2 FY2026 vs Q2 FY2025)](index=2&type=section&id=2.%20Three-Month%20Financial%20Results%20(Q2%20FY2026%20vs%20Q2%20FY2025)) For the second quarter of fiscal 2026, World Acceptance Corporation reported a net loss of $1.9 million, a significant decrease from a net income of $22.1 million in the prior year, primarily driven by a $24.0 million increase in share-based compensation expense (due to a prior year reversal) and a $3.7 million expense for early bond redemption. Total revenues increased by 2.3% to $134.5 million, while expenses, particularly G&A and interest, saw substantial increases Consolidated Statements of Operations (Three Months Ended September 30) | Metric (in thousands) | Q2 FY 2026 | Q2 FY 2025 | Change (YoY) | | :-------------------- | :----------- | :----------- | :----------- | | Total Revenues | $134,466 | $131,409 | +2.3% | | Total Expenses | $136,153 | $103,481 | +31.6% | | Net Income (Loss) | $(1,947) | $22,128 | $(24,075) | | Net Income (Loss) per Diluted Share | $(0.38) | $3.99 | $(4.37) | - The significant decrease in net income is largely due to a **$24.0 million** increase in share-based compensation expense (compared to a prior year reversal of **$18.5 million**) and a **$3.7 million** expense for the early redemption of long-term notes[7](index=7&type=chunk)[19](index=19&type=chunk)[21](index=21&type=chunk) [Consolidated Statements of Operations Analysis](index=2&type=section&id=2.1%20Consolidated%20Statements%20of%20Operations%20Analysis) For the second quarter of fiscal 2026, World Acceptance Corporation reported a net loss of $1.9 million, a significant decrease from a net income of $22.1 million in the prior year, primarily driven by a $24.0 million increase in share-based compensation expense (due to a prior year reversal) and a $3.7 million expense for early bond redemption. Total revenues increased by 2.3% to $134.5 million, while expenses, particularly G&A and interest, saw substantial increases [Revenue Performance](index=2&type=section&id=2.1.1%20Revenue%20Performance) Total revenues increased by 2.3% to $134.5 million, driven by a 4.4% rise in interest and fee income, while insurance and other income decreased Revenue Breakdown (Three Months Ended September 30) | Revenue Type (in thousands) | Q2 FY 2026 | Q2 FY 2025 | Change (YoY) | | :-------------------------- | :----------- | :----------- | :----------- | | Interest and Fee Income | $118,958 | $113,905 | +4.4% | | Insurance Income | $11,900 | $12,300 | -3.6% | | Other Income | $3,600 | $5,200 | -30.0% | | Total Revenues | $134,466 | $131,409 | +2.3% | - Interest and insurance yields for the quarter ended September 30, 2025, increased **136 basis points** compared to the prior year[8](index=8&type=chunk) - The large loan portfolio decreased from **52.1%** of the overall portfolio as of September 30, 2024, to **44.6%** as of September 30, 2025[8](index=8&type=chunk) [Credit Quality and Provision for Losses](index=2&type=section&id=2.1.2%20Credit%20Quality%20and%20Provision%20for%20Losses) The provision for credit losses increased by $3.1 million to $49.8 million, primarily due to new loan growth and an increase in expected loss rates, with net charge-offs as a percentage of average net loans at 17.1% CECL Allowance and Provision (Three Months Ended September 30, in millions) | Metric | Q2 FY 2026 | Q2 FY 2025 | Difference | | :-------------------------- | :--------- | :--------- | :--------- | | Beginning Allowance - June 30 | $109.1 | $109.7 | $(0.6) | | Change due to Growth | $4.3 | $1.8 | $2.5 | | Change due to Expected Loss Rate on Performing Loans | $2.9 | $0.8 | $2.1 | | Change due to 90 day past due | $1.5 | $2.2 | $(0.7) | | Ending Allowance - September 30 | $117.8 | $114.5 | $3.3 | | Net Charge-offs | $41.1 | $41.9 | $(0.8) | | Provision | $49.8 | $46.7 | $3.1 | - The provision for credit losses increased **$3.1 million** to **$49.8 million**, largely related to new loan growth, particularly from new customers (**0-5 month customers increased from 7.2% to 8.6% of the portfolio**), which also led to an increase in overall expected loss rates[9](index=9&type=chunk)[13](index=13&type=chunk) Credit Quality Ratios (September 30) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :---------------------------------------------- | :----------- | :----------- | | Net Charge-offs as % of Avg Net Loans (Annualized) | 17.1% | 17.6% | | Accounts 61+ Days Past Due (Recency Basis) | 5.8% | 5.6% | | Allowance for Credit Losses as % of Net Loans | 12.1% | 12.0% | | Accounts 90+ Days Past Due (Recency Basis) | 3.5% | 3.4% | | Accounts 0-60 Days Past Due (Recency Basis) | 22.3% | 22.5% | [Operating Expenses](index=4&type=section&id=2.1.3%20Operating%20Expenses) Total General and Administrative (G&A) expenses increased by 55.3% to $72.0 million, primarily due to a $24.0 million rise in share-based compensation, while advertising expenses decreased General and Administrative Expenses (Three Months Ended September 30, in thousands) | G&A Component | Q2 FY 2026 | Q2 FY 2025 | Change (YoY) | | :-------------- | :----------- | :----------- | :----------- | | Total G&A | $71,969 | $46,355 | +55.3% | | Personnel | $47,989 | $21,754 | +120.6% | | Occupancy & Equipment | $11,820 | $12,337 | -4.2% | | Advertising | $2,171 | $2,821 | -23.1% | - G&A expenses as a percentage of revenues increased from **35.3% to 53.5%**. Personnel expense increased significantly due to a **$24.0 million** increase in share-based compensation expense, while headcount increased by **5.1%**[18](index=18&type=chunk)[19](index=19&type=chunk) - Advertising expense decreased by **23.1%** due to increased efficiency in customer acquisition programs[20](index=20&type=chunk) [Interest Expense and Debt Management](index=4&type=section&id=2.1.4%20Interest%20Expense%20and%20Debt%20Management) Interest expense increased by 37.2% to $14.3 million, primarily driven by a $3.0 million early call penalty and a $0.7 million write-off of debt issuance costs related to early bond redemption Interest Expense and Debt Metrics (Three Months Ended September 30) | Metric | Q2 FY 2026 | Q2 FY 2025 | Change (YoY) | | :-------------------------- | :----------- | :----------- | :----------- | | Interest Expense (in thousands) | $14,343 | $10,457 | +37.2% | | Early Call Penalty | $3.0M | - | - | | Write-off of Debt Issuance Costs | $0.7M | - | - | | Average Debt Outstanding | $514.4M | $496.0M | +3.7% | | Effective Interest Rate | 8.2% | 8.7% | -4.8% | | Debt to Equity Ratio (Sep 30) | 1.6:1 | 1.2:1 | +0.4 | | Total Debt Outstanding (Sep 30) | $584.6M | - | - | - The increase in interest expense was primarily due to a **$3.0 million** early call penalty and a **$0.7 million** write-off of unamortized debt issuance costs related to the early repurchase and cancellation of **$169.8 million** of previously issued bonds[21](index=21&type=chunk) [Income Taxes and Profitability Ratios](index=4&type=section&id=2.1.5%20Income%20Taxes%20and%20Profitability%20Ratios) Income tax expense was $0.3 million despite a pre-tax loss, influenced by a $1.3 million discrete item, while return on average assets and equity declined Income Tax and Return Ratios (Three Months Ended September 30) | Metric | Q2 FY 2026 | Q2 FY 2025 | Change (YoY) | | :------------------------------------ | :--------- | :--------- | :----------- | | Income Tax Expense (in thousands) | $260 | $5,800 | $(5,540) | | Return on Average Assets (Trailing 12M) | 5.6% | 7.8% | -2.2% | | Return on Average Equity (Trailing 12M) | 14.0% | 20.1% | -6.1% | - Income tax expense was **$0.3 million** despite a net pre-tax loss, due to a **$1.3 million** discrete item related to a settlement between the US and Mexico concerning a previously disposed Mexico business[22](index=22&type=chunk) [Share Repurchase Program](index=4&type=section&id=2.2%20Share%20Repurchase%20Program) During the second quarter of fiscal 2026, World Acceptance Corporation repurchased 385,867 shares, representing 7.4% of its outstanding common stock, for approximately $66.6 million. Year-to-date, the company has repurchased 9.1% of its outstanding shares, with approximately $77.0 million in remaining repurchase capacity Share Repurchase Activity (Q2 FY2026) | Metric | Q2 FY 2026 | YTD FY 2026 | | :----------------------------------- | :----------- | :----------- | | Shares Repurchased | 385,867 | 473,476 | | % of Outstanding Common Stock Repurchased | 7.4% | 9.1% | | Aggregate Purchase Price | $66.6 million | $79.6 million | | Remaining Repurchase Capacity | $77.0 million | - | - As of September 30, 2025, the Company had approximately **4.8 million** common shares outstanding, excluding **246,186** unvested restricted shares[23](index=23&type=chunk) [Six-Month Financial Results (H1 FY2026 vs H1 FY2025)](index=4&type=section&id=3.%20Six-Month%20Financial%20Results%20(H1%20FY2026%20vs%20H1%20FY2025)) For the first six months of fiscal 2026, World Acceptance Corporation reported a net loss of $0.6 million, a significant decline from a net income of $32.1 million in the prior-year period. Total revenues increased by 2.3% to $266.9 million, driven by an increase in loans outstanding, but annualized net charge-offs as a percentage of average net loans also increased Consolidated Statements of Operations (Six Months Ended September 30) | Metric (in thousands) | H1 FY 2026 | H1 FY 2025 | Change (YoY) | | :-------------------- | :----------- | :----------- | :----------- | | Total Revenues | $266,918 | $260,936 | +2.3% | | Net Income (Loss) | $(602) | $32,076 | $(32,678) | | Net Income (Loss) per Diluted Share | $(0.12) | $5.77 | $(5.89) | | Annualized Net Charge-offs as % of Avg Net Loans | 18.3% | 17.0% | +1.3% | [Consolidated Balance Sheet Overview](index=7&type=section&id=4.%20Consolidated%20Balance%20Sheet%20Overview) As of September 30, 2025, World Acceptance Corporation reported total assets of $1,062.4 million, an increase from $1,007.6 million at March 31, 2025. Gross loans receivable increased to $1,315.5 million. Total liabilities rose to $696.7 million, primarily due to an increase in senior notes payable, while shareholders' equity decreased to $365.6 million Consolidated Balance Sheets (in thousands) | Metric | Sep 30, 2025 | Mar 31, 2025 | Sep 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | | **ASSETS:** | | | | | Cash and cash equivalents | $14,882 | $9,730 | $9,746 | | Gross loans receivable | $1,315,492 | $1,225,636 | $1,295,870 | | Allowance for credit losses | $(117,797) | $(103,347) | $(114,455) | | Loans receivable, net | $858,576 | $812,969 | $842,707 | | Total assets | $1,062,360 | $1,007,627 | $1,049,163 | | **LIABILITIES & EQUITY:** | | | | | Senior notes payable | $584,586 | $262,451 | $265,630 | | Senior unsecured notes payable, net | — | $184,418 | $239,311 | | Total liabilities | $696,715 | $568,147 | $631,699 | | Shareholders' equity | $365,645 | $439,480 | $417,464 | | Total liabilities and shareholders' equity | $1,062,360 | $1,007,627 | $1,049,163 | [Selected Consolidated Statistics](index=8&type=section&id=5.%20Selected%20Consolidated%20Statistics) The company's selected consolidated statistics highlight an increase in gross and net loans receivable, alongside a notable rise in expense ratios. Provision for credit losses, general and administrative expenses, and interest expense all increased as a percentage of total revenue for both the three-month and six-month periods, impacting operating income Selected Consolidated Statistics (Three and Six Months Ended September 30, in thousands, except percentages) | Metric | Q2 FY 2026 | Q2 FY 2025 | H1 FY 2026 | H1 FY 2025 | | :---------------------------------------------- | :----------- | :----------- | :----------- | :----------- | | Gross loans receivable | $1,315,492 | $1,295,870 | $1,315,492 | $1,295,870 | | Average gross loans receivable | $1,294,106 | $1,284,326 | $1,267,156 | $1,277,911 | | Net loans receivable | $976,373 | $957,162 | $976,373 | $957,162 | | Average net loans receivable | $959,473 | $949,302 | $941,397 | $946,188 | | **Expenses as a percentage of total revenue:** | | | | | | Provision for credit losses | 37.1% | 35.5% | 37.6% | 35.3% | | General and administrative | 53.5% | 35.3% | 53.3% | 41.3% | | Interest expense | 10.7% | 8.0% | 9.0% | 7.8% | | Operating income as a % of total revenue | 9.4% | 29.2% | 9.1% | 23.4% | | Loan volume | 729,803 | 702,238 | 1,481,305 | 1,384,435 | | Net charge-offs as percent of average net loans receivable on an annualized basis | 17.1% | 17.6% | 18.3% | 17.0% | | Branches open (at period end) | 1,013 | 1,045 | 1,013 | 1,045 | [Company Profile and Investor Relations](index=5&type=section&id=6.%20Company%20Profile%20and%20Investor%20Relations) World Acceptance Corporation, founded in 1962, is a people-focused finance company offering personal installment loans and tax preparation services through over 1,000 branches, primarily serving individuals without ready access to credit [About World Acceptance Corporation](index=5&type=section&id=6.1%20About%20World%20Acceptance%20Corporation) Founded in 1962, World Acceptance Corporation (NASDAQ: WRLD) is a people-focused finance company offering personal installment loan solutions and tax preparation services. Operating over 1,000 branches across 16 states, the company primarily serves individuals without ready access to credit, emphasizing customer financial understanding and goal achievement - World Acceptance Corporation provides personal installment loan solutions and personal tax preparation and filing services to over **one million** customers annually[26](index=26&type=chunk) - The Company operates more than **1,000** community-based World Finance branches across **16 states** and primarily serves a segment of the population that does not have ready access to credit[26](index=26&type=chunk) [Investor Conference Call](index=5&type=section&id=6.2%20Investor%20Conference%20Call) World Acceptance Corporation's senior management will host a conference call to discuss the Q2 FY2026 results, with a simulcast available online. The call will also cover business and financial developments and trends that have occurred after quarter-end - A simulcast of the conference call discussing the Q2 FY2026 results will be available on the Internet at https://event.choruscall.com/mediaframe/webcast.html?webcastid=0SmypfHo[27](index=27&type=chunk) - During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end, which may include previously undisclosed information[28](index=28&type=chunk) [Forward-Looking Statements and Risk Factors](index=5&type=section&id=7.%20Forward-Looking%20Statements%20and%20Risk%20Factors) This press release contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Key risk factors include legislative and regulatory changes, tax code changes, regulatory authority, employee misconduct, management turnover, public perception, accounting rule changes, interest rates, inflation, strategic initiatives, loan repayment risks, cybersecurity threats, dependence on debt, and general economic conditions - Forward-looking statements are inherently subject to risks and uncertainties, and actual results and financial condition may differ materially from those indicated[29](index=29&type=chunk) - Important factors that could cause actual results to differ include: recently enacted, proposed or future legislation and its implementation; changes in the U.S. tax code; the nature and scope of regulatory authority (e.g., CFPB, state regulators); unpredictable regulatory examinations, proceedings and litigation; employee or third-party misconduct; uncertainties with management turnover; media and public characterization of consumer installment loans; labor unrest; impact of changes in accounting rules; the Company's assessment of internal control over financial reporting; changes in interest rates and inflation[29](index=29&type=chunk) - Additional risks include: risks relating to the acquisition or sale of assets or businesses; risks inherent in making loans (repayment risks, collateral value); cybersecurity threats; dependence on debt and borrowing limitations; timing and amount of revenue recognition; changes in revenue and expense trends (including delinquency and charge-offs); impact of extreme weather events and natural disasters; and changes in the Company's markets and general economy[29](index=29&type=chunk)

Core Viewpoint - World Acceptance Corporation will hold its second quarter conference call on October 23, with an earnings release prior to the call [1] Group 1 - The conference call will be available online via a real-time webcast starting at 10:00 a.m. Eastern Time on October 23 [1] - An online replay of the conference call will be available immediately after the live broadcast and will continue for 30 days [1]