World Acceptance Turns a Year-Ago Loss Into Profit

The Tip Desk · November 8, 2026 · 3 min read

Net income was $8.8 million, or $1.92 a share, as revenue reached $139.2 million and the provision for credit losses fell.

World Acceptance Corporation (WRLD), a personal installment lender operating more than 1,000 World Finance branches, reported net income of $8.8 million, or $1.92 a share, for the second quarter of fiscal 2027, a $10.4 million, or $2.25 a share, increase from a $1.7 million loss, or $0.33 a share, a year earlier.

Total revenues were $139.2 million, up 3.2% from $134.8 million in the year-ago quarter. Interest and fee income rose 3.6% to $123.3 million. Insurance income declined to $11.6 million. Interest and insurance yields increased 158 basis points versus the quarter ended September 30, 2025.

The provision for credit losses decreased $3.8 million to $46.0 million from $49.8 million. Net charge-offs increased $1.1 million to $42.2 million, and annualized net charge-offs as a percent of average net loans rose to 17.6% from 17.1%. Operating income as a percent of total revenue increased to 16.8% from 9.7%.

Gross loans outstanding were $1.319 billion as of September 30, 2026, a 0.3% increase from $1.315 billion a year earlier. Refinanced customer loan volume increased 4.4% to $587.6 million. New customer loan volume decreased 18.1% to $51.2 million, and former customer loan volume decreased 9.9% to $94.4 million.

The company said it tightened underwriting of new customers at the end of the prior fiscal year. The customer base decreased 5.4% during the twelve months ended September 30, 2026, compared with a 6.2% increase for the comparable period ended September 30, 2025. Same-store gross loans increased 0.1% in that twelve-month period, versus a 3.3% increase a year earlier. The company said it has since loosened underwriting and expects to carefully increase new customer lending in the coming quarters.

Loans 0-60 days past due on a recency basis decreased from 20.0% at September 30, 2025, to 18.9% at September 30, 2026. Loans 61 days or more past due decreased from 5.8% to 5.4%. The allowance for credit losses was 12.0% of net loans receivable at September 30, 2026, compared with 12.1% a year earlier.

General and administrative expenses decreased $2.1 million, or 2.9%, to $69.9 million, and fell to 50.2% of revenues from 53.4%. Personnel expense decreased $3.8 million, or 8.0%. Incentive expense decreased $4.2 million, primarily due to lower share-based compensation. Advertising expense increased $0.8 million, or 36.7%, due to new customer acquisition programs. Headcount decreased 3.4% versus September 30, 2025.

Interest expense decreased $2.7 million, or 18.8%, because a $3.0 million early call penalty and a $0.7 million write-off of unamortized debt issuance costs in the year-ago quarter did not recur. Average debt outstanding increased 13.3% to $582.8 million from $514.4 million. Debt outstanding was $592.1 million at September 30, 2026, and the debt-to-equity ratio increased to 1.7:1 from 1.6:1.

The company repurchased 133,199 shares, or 3.0% of outstanding shares, for approximately $25.0 million during the quarter. Remaining repurchase capacity was approximately $25.0 million under the current program and $47.5 million under the revolving credit facility, subject to further board approval. Branches open at period end were 1,009. Trailing-twelve-month return on average assets was 4.6%.