WRLD · World Acceptance Corporation

World Acceptance Corporation reported Q4 FY2026 net income of $36.5 million ($7.70 per diluted share), down from $44.3 million ($8.13) in the prior-year quarter. Total revenues increased 7.4% to $177.6 million, driven by a 5.9% rise in interest and fee income to $124.6 million and a 14.7% increase in other income to $41.2 million, primarily from tax preparation services. Gross loans outstanding grew 4.4% year-over-year to $1.28 billion, marking the third consecutive quarter of growth, with organic growth of 4.9% excluding acquisitions. The company tightened underwriting standards in prior years but shifted to targeted growth in fiscal 2025, resulting in a higher proportion of new customers (9.9% as of December 2025) which carry higher reserve requirements under CECL. As of March 31, 2026, new customers decreased to 8.2% as the portfolio matures. Net charge-offs increased to $47.4 million (18.7% annualized) from $45.8 million (18.5%), while the allowance for credit losses as a percentage of net loans receivable rose to 11.7% from 11.3%. G&A expenses surged 23.6% to $81.5 million, including a $5.9 million increase in share-based compensation, partially due to a prior-year reversal. Interest expense rose 13.4% to $12.7 million on higher average debt outstanding ($651 million vs. $529 million), partially offset by a lower effective interest rate (7.7% vs. 8.3%). The debt-to-equity ratio increased to 1.7:1 from 1.0:1. The company repurchased 282,607 shares for $37.8 million in Q4, bringing fiscal 2026 repurchases to 858,642 shares (16.5% of outstanding). Management expects portfolio maturation to drive lower charge-offs, reduced reserve rates, and improved profitability in the coming fiscal year.