Financial Performance - Total revenues for the three months ended December 31, 2025, were $141.25 million, a slight increase from $138.63 million in the same period of 2024, representing a growth of 1.2%[20] - Interest and fee income increased to $125.97 million for the three months ended December 31, 2025, compared to $122.39 million in the prior year, reflecting a growth of 4.3%[20] - Net income for the three months ended December 31, 2025, was a loss of $0.91 million, compared to a net income of $13.39 million in the same period of 2024, marking a significant decline[20] - General and administrative expenses for the three months ended December 31, 2025, were $78.06 million, up from $67.22 million in the same period of 2024, indicating a rise of 16.5%[20] - The diluted net income (loss) per common share for the three months ended December 31, 2025, was $(0.19), compared to $2.45 for the same period in 2024, indicating a significant decline in profitability per share[20] Assets and Liabilities - Total assets increased to $1.14 billion as of December 31, 2025, compared to $1.01 billion as of March 31, 2025, representing a growth of 13.3%[15][16] - Total liabilities rose to $790.78 million as of December 31, 2025, compared to $568.15 million as of March 31, 2025, reflecting an increase of 39.2%[16] - The company’s retained earnings decreased to $76.15 million as of December 31, 2025, down from $173.05 million as of March 31, 2025, indicating a decline of 56.1%[16] - The total shareholders' equity decreased to $351,602,182 as of December 31, 2025, down from $428,169,949 a year earlier, reflecting a decline of approximately 17.9%[25] Credit Losses and Loans - Provision for credit losses rose to $51.42 million for the three months ended December 31, 2025, up from $44.10 million in the same period of 2024, indicating a 16.5% increase[20] - The allowance for credit losses increased to $122.65 million as of December 31, 2025, from $103.35 million as of March 31, 2025, representing a growth of 18.7%[15] - As of December 31, 2025, net loans receivable amounted to $913.1 million, an increase from $813.0 million as of March 31, 2025, reflecting a growth of approximately 12.3%[66] - The total gross loans receivable amounted to $1,402,316,900, an increase from $1,225,635,918 as of March 31, 2025, representing a growth of approximately 14.4%[68] - The company reserves 100% of the outstanding balance for loans greater than 90 days past due, which emphasizes a conservative approach to credit losses[69] Cash Flow and Financing Activities - Cash and restricted cash at the end of the period was $42,214,753, an increase from $15,582,553 at the end of December 2024, representing a growth of 171.5%[29] - The company experienced a net cash provided by operating activities of $164,754,098 for the nine months ended December 31, 2025, compared to $163,276,698 for the same period in 2024, indicating a slight increase of 0.9%[28] - The company had cash flows from financing activities of $121,933,731 for the nine months ended December 31, 2025, compared to $41,277,746 for the same period in 2024, indicating a significant increase of 195.5%[28] - The company authorized a share repurchase program of up to $100.0 million, with $18.4 million remaining for repurchase as of December 31, 2025[44] Stock and Shareholder Information - The company reported a weighted average of 4,759,405 basic common shares outstanding for the three months ended December 31, 2025, compared to 5,436,688 in the same period of 2024[20] - The company repurchased common stock totaling $15,081,882 during the three months ended December 31, 2025, compared to $1,010,975 in the same period of 2024[23] - The company continues to believe that stock repurchases are a viable component of its long-term financial strategy[46] Tax and Regulatory Matters - The effective income tax rate decreased to 10.1% for the three months ended December 31, 2025, compared to 16.4% for the same period last year[163] - The company had $1.1 million in total gross unrecognized tax benefits as of December 31, 2025, with $0.1 million expected to be resolved in the next twelve months[159] - The company has no material tax implications from the One Big Beautiful Bill Act enacted on July 4, 2025[162] Operational Insights - The company operates in sixteen states, with its four largest states accounting for approximately 51% of the gross loans receivable balance as of December 31, 2025[48] - The company experiences seasonal fluctuations in loan demand, with the highest demand typically occurring from October to December[36] - The company maintains minimal credit risk exposure in bank accounts, which may exceed federally insured limits, without experiencing losses[49]

Core Insights - The company is experiencing a rebound in growth, improved yield metrics, and better credit performance among new customers, despite facing near-term expense pressures related to staffing and incentive compensation [4][5]. Customer Growth and Performance - The company originated 16% more new customer volume during the quarter and ended with 25% more outstanding ledger in active new customers compared to the same quarter last year [3][6]. - The quarter marked the highest level of new customers since the same quarter of calendar 2021, with first-pay defaults 19% lower compared to the prior high-volume mark in 2021 [2][6]. Financial Metrics - Yields increased by 84 basis points year-over-year, with the customer base growing approximately 5.4% and ledger growing 2.4% organically [6][7]. - The average outstanding loan declined about 2.5% year-over-year due to tighter underwriting discipline and increased investment in new customers [9]. Expense Management - Management cited elevated share-based, personnel, and incentive costs due to temporary overstaffing but expects incentive expenses to decline starting in Q4 [5][12]. - The company has repurchased around 600,000 shares, reducing outstanding shares by approximately 11%, with over $60 million in repurchase capacity remaining [5][16]. Strategic Outlook - Management is optimistic about tax filing season, noting substantial year-over-year improvement in both the volume of filings and revenue [14]. - The company is planning branch staffing reductions to address near-term expense pressures while maintaining a focus on improving credit performance and customer retention [5][13]. Leadership Transition - The company acknowledged the upcoming retirement of long-tenured leader Clint Dyer, with Tobin Turner stepping in to lead branch operations during the transition [18].

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]

分组1 - World Acceptance (WRLD) reported a quarterly loss of $0.19 per share, significantly below the Zacks Consensus Estimate of $0.58, and a decline from earnings of $2.45 per share a year ago, resulting in an earnings surprise of -132.76% [1] - The company posted revenues of $141.25 million for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 3.19%, and showing an increase from year-ago revenues of $138.63 million [2] - Over the last four quarters, World Acceptance has surpassed consensus revenue estimates four times, but has only exceeded consensus EPS estimates once [2] 分组2 - The stock's immediate price movement will largely depend on management's commentary during the earnings call, with shares having gained about 1.6% since the beginning of the year, compared to the S&P 500's gain of 1.5% [3] - The current consensus EPS estimate for the upcoming quarter is $9.18 on revenues of $164.66 million, and for the current fiscal year, it is $8.44 on revenues of $568.46 million [7] - The Financial - Consumer Loans industry, to which World Acceptance belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

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]