World Acceptance (WRLD) investor relations material

Executive summary

• Net income for the quarter ended June 30, 2026 was $6.1 million ($1.33 per diluted share), up 285.4% from $1.6 million ($0.30 per share) in the prior year quarter, driven by higher revenues and lower provision for credit losses.

• Adjusted net income, excluding $4.6 million in CEO transition expenses, was $9.7 million ($2.12 per diluted share).

• Revenues increased 4.8% year-over-year to $139.2 million, with interest and fee income up 5.4% and insurance and other income up 1.3%.

• Gross loans receivable grew 2.3% year-over-year to $1.29 billion, while net loans receivable reached $957.2 million.

• Delinquency rates improved, with loans 0-60 days past due at 18.1% and loans 61+ days past due at 5.2%.

Financial highlights

• Provision for credit losses decreased 13.4% to $43.8 million, with net charge-offs down to $43.3 million, or 18.2% of average net loans receivable.

• General and administrative expenses increased 8.2% to $76.1 million, impacted by $4.6 million in CEO transition costs.

• Interest expense rose 18.6% to $11.4 million due to higher average debt outstanding, partially offset by a lower effective interest rate.

• Effective income tax rate was 22.7%, down from 30.2% in the prior year quarter.

• Operating income rose 62.4% to $19.7 million, reflecting improved credit performance and cost management.

Outlook and guidance

• Underwriting for new customers has been expanded after a period of tightening, with plans to carefully increase new customer lending in coming quarters.

• Management expects to maintain a disciplined approach to expenses and continue monitoring macroeconomic uncertainty.

• Management expects to continue repurchasing shares, subject to capital needs and regulatory requirements.

• The company believes cash flow from operations and available credit will be sufficient to fund growth and expansion.