World Acceptance (WRLD) Q1 2026 earnings summary

Executive summary

• Completed a new $640 million credit agreement, increasing stock repurchase capacity and enabling up to 100% of net income for buybacks starting January 1, 2025.

• Net income for Q2 2025 was $1.3 million, down 86.5% from $9.9 million year-over-year, with EPS dropping to $0.25 from $1.79.

• Revenues rose 2.3% to $132.5 million, driven by a 3.7% increase in interest and fee income, while insurance and other income declined.

• Customer base grew 4% year-over-year, marking the first positive Q1 growth in three years.

• Delinquency rates and loans 61+ days past due improved sequentially and year-over-year.

Financial highlights

• Interest and fee income for Q2 2025 was $115.3 million, up from $111.2 million year-over-year.

• Net loans receivable reached $938.1 million as of June 30, 2025, up from $812.9 million at March 31, 2025.

• Provision for credit losses increased to $50.5 million, with net charge-offs rising to $44.8 million, or 19.4% of average net loans receivable.

• General and administrative expenses increased 14.6% year-over-year, mainly due to higher personnel and incentive costs.

• Return on average assets was 7.7% and return on average equity was 19.0% (trailing twelve months).

Outlook and guidance

• Management expects higher revenue and lower charge-offs in coming quarters due to improved loan growth and lower delinquencies.

• The company believes cash flow from operations and available credit will be sufficient to fund growth and operations for the foreseeable future.

• No material impact is expected from the recently enacted One Big Beautiful Bill Act based on preliminary assessment.

• No plans for dramatic increases in new customer investments or double-digit portfolio growth.

• Anticipates enhanced shareholder value through strong EPS growth and declining share count.