World Acceptance Corporation Reports 16% Increase in Net Income for Fiscal Year Ending March 31, 2025

World Acceptance Corporation reported its financial results for the fiscal year ending March 31, 2025, revealing a net income of $89.7 million, a 16% increase from the previous year's $77.3 million. Total revenues for the year decreased by 1.5% to $564.8 million, down from $573.2 million in fiscal 2024. The decline in revenue was attributed to a decrease in average net loans receivable, which fell by 4.7% during the year, alongside a shift away from larger, lower interest rate loans. The company’s gross loans receivable stood at $1.23 billion, reflecting a compounded annual growth rate of 2.63% since March 31, 2021.

Operationally, World Acceptance Corporation maintained 1,024 branches across 16 states as of March 31, 2025, a reduction of 24 branches from the previous year. The company acquired three new branches during the fiscal year while merging 27 branches into existing locations due to insufficient returns. The average loan amount originated was $1,975, with the majority of loans being refinanced, representing 65.7% of total loan originations. The company also reported a significant increase in tax preparation revenue, which rose by 26% to approximately $37.2 million, driven by the preparation of around 82,000 tax returns.

The company’s provision for credit losses increased by 7.8% to $169.2 million, reflecting a rise in accounts that were 91 days or more past due, which represented 3.7% of the loan portfolio. Despite this, the net charge-off ratio improved slightly to 17.5%, down from 17.7% in the previous year. General and administrative expenses decreased by 10.3% to $240.9 million, primarily due to a reduction in personnel expenses, which fell by 14.2% to $141.1 million, largely driven by a reversal of stock-based compensation expenses.

Looking ahead, World Acceptance Corporation plans to continue its strategy of branch expansion and acquisitions in existing and new markets, contingent upon favorable regulatory conditions. The company remains focused on improving its loan quality and operational efficiency while navigating the challenges posed by regulatory scrutiny and market competition. The management expressed confidence in the company’s ability to adapt to changing market conditions and maintain profitability, although they acknowledged the potential impact of economic fluctuations on borrower behavior and credit risk.