World Acceptance (US:WRLD)2026-01-27 12:35Loan 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]