World Acceptance (WRLD) investor relations material

Executive summary

• Q2 FY2027 net income was $8.8M, or $1.92 diluted EPS, versus a $1.7M net loss, or $0.33 loss per diluted share, a year earlier; revenue rose 3.2% to $139.2M.

• H1 net income was $14.9M versus a $0.1M net loss; adjusted net income excluding the after-tax CEO transition expense was $18.5M, or $4.05 adjusted diluted EPS.

• Delinquency improved YoY amid conservative underwriting; management plans a careful increase in new-customer lending and expressed confidence in positioning for the rest of FY2027.

Financial highlights

• Q2 interest and fee income rose 3.6% to $123.3M; insurance and other income was $15.9M, essentially flat YoY.

• Q2 provision for credit losses fell 7.7% to $46.0M, G&A declined 2.9% to $69.9M, and interest expense fell 18.8% to $11.7M.

• H1 revenue rose 4.0% to $278.4M; provision fell 10.6% to $89.8M, while G&A increased 2.6% to $146.0M and interest expense declined 3.7% to $23.1M.

• H1 operating cash flow was $130.4M; investing used $112.3M and financing used $20.3M.

Outlook and guidance

• New-customer underwriting has been loosened since tightening at FY2026 year-end; lending is expected to increase carefully in coming quarters.

• Lending remains cautious, with underwriting looser than in the March quarter but tighter than at the same point last year; no dramatic near-term growth shift is expected.

• Operating cash flows and credit-facility borrowings are expected to fund branch openings or acquisitions and loan originations over the next 12 months and beyond.

• FY2027 share repurchases are expected, subject to funding needs, market and regulatory conditions, board approval, and credit-agreement restrictions.