World Acceptance Corporation reported its financial results for the first quarter of fiscal 2027, ending June 30, 2026, showing a net income of $6.1 million, a significant increase of 285.4% compared to $1.6 million in the same period last year. Total revenues rose by 4.8% to $139.2 million, driven primarily by a 5.4% increase in interest and fee income, which reached $121.5 million. The company’s gross loans receivable also saw a modest increase, rising to $1.29 billion, up 2.3% from $1.26 billion a year earlier.
The company experienced a decrease in its provision for credit losses, which fell by 13.4% to $43.8 million from $50.5 million in the prior year. This reduction was attributed to improved credit performance, as net charge-offs decreased to $43.3 million, down from $44.8 million. The allowance for credit losses as a percentage of net loans was 11.8% at the end of the quarter, slightly up from 11.6% a year prior. The company noted a decrease in accounts that were 61 days or more past due, which fell to 5.2% from 5.4% year-over-year.
Operationally, World Acceptance Corporation's customer base decreased by 1.9% over the past year, contrasting with a 4.0% increase in the previous year. This decline was influenced by a tightening of underwriting standards for new customers amid rising macroeconomic uncertainties. The company plans to cautiously expand its lending to new customers in the upcoming quarters. Additionally, the company opened no new branches during the quarter, maintaining a total of 1,009 branches.
In terms of strategic developments, World Acceptance Corporation made two acquisitions of loan portfolios during the quarter, totaling $2.3 million. The company continues to focus on its share repurchase program, with $10 million remaining under its current authorization. As of June 30, 2026, the company had a debt-to-equity ratio of 1.6:1, with total debt outstanding at $572.8 million and shareholders' equity at $362.2 million. The company remains optimistic about its ability to fund future growth through cash flows from operations and available credit facilities.
About WORLD ACCEPTANCE CORP
World Acceptance Corporation is a consumer finance company specializing in small installment loans, credit insurance, and ancillary services across 16 U.S. states. It primarily serves individuals with limited access to traditional credit, offering short-term loans, tax preparation, and insurance products. The company emphasizes customer relationships, operates a large branch network, and faces extensive regulation, competition, and economic risks inherent in the highly fragmented, regulated small-loan industry.
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