World Acceptance (WRLD) investor relations material

Executive summary

• Q2 FY2027 net income was $8.8 million, or $1.92 diluted EPS, versus a $1.7 million net loss, or $0.33 loss per diluted share, a year earlier.

• Revenue rose 3.2% YoY to $139.2 million; operating income was 16.8% of revenue versus 9.7% a year earlier.

• Delinquencies improved YoY, while tighter new-customer underwriting contributed to a smaller customer base; management expects to increase new-customer lending carefully.

• Management cited responsible portfolio growth, improving credit quality and expense discipline, and confidence in positioning for the rest of FY2027.

Financial highlights

• Q2 revenue increased $4.4 million YoY to $139.2 million; interest and fee income grew 3.6% to $123.3 million.

• Q2 provision for credit losses declined $3.8 million YoY to $46.0 million; G&A fell 2.9% to $69.9 million.

• Six-month revenue increased 4.0% YoY to $278.4 million; net income was $14.9 million versus a $0.1 million net loss.

• Six-month adjusted net income, excluding the after-tax CEO transition expense, was $18.5 million, or $4.05 adjusted diluted EPS.

Outlook and guidance

• Underwriting has loosened since the March quarter but remains tighter than at the same point last year; management expects a careful increase in new-customer lending.

• Management may use growth levers selectively and does not expect a dramatic near-term change in growth trajectory.