World Acceptance (WRLD) - 2026 Q3 - Quarterly Report

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]