WRLD

This article first appeared on GuruFocus. - Adjusted EPS: $1.92 for Q2 fiscal 2027. - Revenue: Increased 3.2% year over year. - Provision Expense: Decreased 7.7%. - Front-End Delinquency: Improved from 20% to 18.9%. - Credit Quality: Improved delinquency on both front end and back end. - G&A Expense: Improved; disciplined expense approach expected to continue. - Warning! GuruFocus has detected 3 Warning Sign with WRLD. - Is WRLD fairly valued? Test your thesis with our free DCF calculator. Release Date: October 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Adjusted earnings per share of $1.92 for the second quarter. - Revenue increased 3.2% year-over-year. - Provision expense decreased 7.7%, reflecting improved credit quality. - Front-end delinquency improved from 20% to 18.9%. - G&A expense improved, with a disciplined approach to expenses expected to continue. - Consumer remains sensitive to gas prices, which could pressure credit metrics. - Underwriting remains cautious, limiting loan growth potential. - No dramatic change in growth trajectory expected in the near term. - Credit card offering still in pilot testing, with scaling decision at least a quarter or two away. - Competitive environment requires ongoing monitoring, though company feels confident. Q: How sensitive is your customer base to gas prices, and are you seeing delinquencies move in line with them? A: CEO John Calmes acknowledged that gas prices historically impact World Acceptance's customer base, but noted the company has been conservative in underwriting, so overall credit metrics continue to improve. He said it's hard to know whether improvement would have been greater without higher gas prices, but cautious lending is driving portfolio improvement regardless. Q: Is the plan to focus on growing the existing customer base while remaining cautious on new consumers in the near to medium term? A: CEO John Calmes confirmed the company is focused on "blocking and tackling" and getting operational fundamentals right while taking a cautious approach to lending. He noted underwriting is slightly looser than in the March quarter but still much tighter than a year ago, and while the company may pull some growth levers, he doesn't expect any dramatic change in growth trajectory near term. Q: Can you speak to the competitive environment? A: COO J. Tobin Turner said the company feels very confident at a macro level and is pleased with its overall app flow. He noted World Acceptance likes where it is positioned competitively and sees opportunities to grow when and as it sees fit. Q: Are you still testing a credit card offering? A: COO J. Tobin Turner confirmed the company remains in pilot testing with its credit card offering. With enough cards out to observe customer behavior over time, the company is letting the initial portfolio "bake" and is probably at least a quarter or two away from deciding how to scale it. Q: What drove the second-quarter earnings performance? A: CEO John Calmes reported adjusted EPS of $1.92 for the second quarter, benefiting from a 3.2% increase in revenue and a 7.7% decrease in provision expense. He attributed the results to steady progress on core priorities: growing the loan portfolio responsibly, improving credit quality, and maintaining expense discipline. Q: How is credit quality trending in the portfolio? A: CEO John Calmes said credit quality continued to improve, with delinquency improvements on both the front end and back end. Most notably, front-end delinquency decreased from 20% to 18.9%, reinforcing confidence in portfolio health and underwriting strength. Q: What is the outlook on expenses going forward? A: CEO John Calmes noted improvement in G&A expense during the quarter and said the company expects to maintain this approach to expenses going forward. Q: How does the company view its positioning for the remainder of fiscal 2027? A: CEO John Calmes said the company is pleased with second-quarter results and believes it is well positioned for the remainder of fiscal 2027, citing responsible portfolio growth, improving credit quality, and disciplined expense management as core priorities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- Interested in World Acceptance Corporation? Here are five stocks we like better. - World Acceptance reported adjusted EPS of $1.92 for fiscal 2027 second quarter, supported by 3.2% revenue growth, a 7.7% decline in provisioning expense and improved general and administrative expenses. - Credit quality improved across the portfolio, with front-end delinquency falling to 18.9% from 20%. Management attributed the progress partly to conservative underwriting and continued expense discipline. - The company remains cautious on loan growth and is still operating with tighter lending standards than a year ago. Its credit card pilot is being allowed to mature, with a decision on broader expansion expected in one or two quarters. World Acceptance (NASDAQ:WRLD) reported adjusted earnings per share of $1.92 for its fiscal 2027 second quarter, as revenue growth and lower provisioning expense supported results while credit quality continued to improve. President and Chief Executive Officer John Calmes said the company was pleased with its quarterly performance and believes it is positioned well for the remainder of the fiscal year. He cited progress in the lender's core priorities of responsibly expanding its loan portfolio, strengthening credit quality and maintaining expense discipline. → The AI Buildout Is Only 15% Complete—Here Is Where the Next Dollar Actually Goes Revenue increased 3.2% in the quarter, while provisioning expense declined 7.7%, Calmes said. The company also reported an improvement in general and administrative expense. Calmes said credit trends improved at both the front and back ends of the portfolio. Front-end delinquency declined to 18.9% from 20%, which he described as the most notable improvement. → GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? "These trends reinforce our confidence in the health of the portfolio and the strength of our underwriting," Calmes said. During the question-and-answer session, Stephens analyst Kyle Joseph asked about the potential sensitivity of World Acceptance customers to gasoline prices. Calmes said that historically, higher gas prices have affected customers, but the company's conservative underwriting has helped support improving portfolio metrics. → Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs Calmes said it was difficult to determine whether credit results would have improved further without elevated gas prices. Still, he said the company's cautious lending posture has contributed to overall portfolio improvement. World Acceptance remains focused on operational fundamentals and is continuing to take a cautious approach to lending, according to Calmes. While the company has become somewhat less restrictive than it was during the March quarter, it remains "a lot tighter" than it was at the same point a year earlier, he said. The company may selectively use growth initiatives to increase loan growth, but Calmes said investors should not expect a dramatic shift in the near-term growth trajectory. "We are focused right now on the blocking and tackling and getting the fundamentals right of the operations," Calmes said. Chief Operating Officer Tobin Turner said World Acceptance remains confident in its position within the competitive environment. He said the company is pleased with its application flow and sees opportunities to grow when it determines that expansion is appropriate. Turner also addressed the company's credit card initiative, saying World Acceptance is still conducting a pilot program. The company has issued enough cards to begin observing customer behavior over time, he said, but management is allowing the initial portfolio to mature before determining how to expand the offering. Turner said the company is likely at least one or two quarters away from deciding how to scale the credit card program. World Acceptance Corporation is a consumer finance company that provides small-dollar personal installment loans and related financial services through its World Finance branch network and online channels. The company primarily serves consumers who may have limited access to traditional bank credit. Its products and services generally include personal loans, tax return preparation and filing, and certain ancillary financial products. Loan proceeds may be used for expenses such as household needs, medical bills, automobile repairs, or other personal obligations, subject to applicable lending requirements. Founded in 1962, World Acceptance is headquartered in Greenville, South Carolina. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "World Acceptance Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

GREENVILLE, S.C., October 23, 2026--(BUSINESS WIRE)--World Acceptance Corporation (NASDAQ: WRLD) today reported financial results for its second quarter of fiscal 2027. Second fiscal quarter highlights Highlights from the second quarter include: - Net income of $8.8 million, or $1.92 per diluted share, in the second quarter, a $10.4 million increase, or $2.25 increase per share, compared to the same quarter of the prior fiscal year; - Total revenues increased $4.4 million to $139.2 million, or 3.2%, compared to the same quarter of the prior fiscal year; - Loans 0-60 days past due on a recency basis decreased from 20.0% as of September 30, 2025, to 18.9% as of September 30, 2026; - Loans 61 days or more past due on a recency basis decreased from 5.8% as of September 30, 2025, to 5.4% as of September 30, 2026; and - Repurchased 133,199 shares, or 3.0% of the outstanding shares, for approximately $25.0 million during the quarter. Portfolio results Gross loans outstanding were $1.319 billion as of September 30, 2026, a 0.3% increase from the $1.315 billion of gross loans outstanding as of September 30, 2025. During the most recent quarter, borrowing by existing customers increased, compared to the prior-year quarter, while borrowing by new customers declined. Refinanced customer loan volume increased 4.4% in the most recent quarter, compared to the same quarter of fiscal year 2026. New and former customer loan volume decreased 18.1% and 9.9%, respectively, compared to the same quarter of fiscal year 2026. At the end of the prior fiscal year, we tightened our underwriting of new customers given the proportion of new customers already in the portfolio and increasing macroeconomic uncertainty. As a result, our customer base decreased by 5.4% during the twelve-month period ended September 30, 2026, compared to an increase of 6.2% for the comparable period ended September 30, 2025. We have since loosened underwriting and expect to carefully increase new customer lending in the coming quarters. The following table includes the volume of gross loan origination balances, excluding tax advance loans, by customer type for the following comparative quarterly periods: | Q2 FY 2027 | Q2 FY 2026 | Q2 FY 2025 New Customers | $51,154,557 | $62,445,847 | $44,479,349 Former Customers | $94,397,825 | $104,794,933 | $100,630,514 Refinance Customers | $587,613,067 | $562,635,073 | $557,020,707 As of September 30, 2026, World Acceptance Corporation (the "Company" or "we") had 1,009 open branches. For branches open at least twelve months, same store gross loans increased 0.1% in the twelve-month period ended September 30, 2026, compared to a 3.3% increase for the twelve-month period ended September 30, 2025. For branches open throughout both periods, the customer base over the twelve-month period ended September 30, 2026, decreased 5.2%, compared to an increase of 7.9% for the twelve-month period ended September 30, 2025. Three-month financial results Net income for the second quarter of fiscal 2027 increased by $10.4 million to $8.8 million from a net loss of $1.7 million for the same quarter of the prior fiscal year. Net income per diluted share was $1.92 in the second quarter of fiscal 2027, compared to $0.33 of net loss per diluted share for the same quarter of the prior year. Total revenues for the second quarter of fiscal 2027 increased to $139.2 million, a 3.2% increase from $134.8 million for the same quarter of the prior fiscal year. Interest and fee income increased 3.6%, from $119.0 million in the second quarter of fiscal 2026 to $123.3 million in the second quarter of fiscal 2027. Insurance income decreased to $11.6 million in the second quarter of fiscal 2027, compared to $11.9 million in the second quarter of fiscal 2026. Interest and insurance yields for the quarter ended September 30, 2026, increased 158 basis points, compared to the quarter ended September 30, 2025. Other income increased $0.3 million, or 8.3%, to $4.3 million in the second quarter of fiscal 2027, compared to $4.0 million in the second quarter of fiscal 2026. The provision for credit losses decreased $3.8 million to $46.0 million, from $49.8 million when comparing the second quarter of fiscal 2027 to the second quarter of fiscal 2026. The table below itemizes the key components of the current expected credit loss ("CECL") allowance and provision impact during the quarter. CECL Allowance and Provision (Dollars in millions) | | Q2 FY 2027 | | Q2 FY 2026 | | Difference | | Reconciliation Beginning Allowance - June 30 | | $112.5 | | $109.1 | | $3.4 | | Change due to Growth | | $2.1 | | $4.3 | | $(2.2) | | $(2.2) Change due to Expected Loss Rate on Performing Loans | | $1.5 | | $2.9 | | $(1.4) | | $(1.4) Change due to 90 days past due | | $0.2 | | $1.5 | | $(1.3) | | $(1.3) Ending Allowance - September 30 | | $116.3 | | $117.8 | | $(1.5) | | $(4.9) Net Charge-offs | | $42.2 | | $41.1 | | $1.1 | | $1.1 Provision | | $46.0 | | $49.8 | | $(3.8) | | $(3.8) Note: The change in allowance for the quarter plus net charge-offs for the quarter equals the provision for the quarter (see above reconciliation). Net charge-offs for the quarter increased $1.1 million, from $41.1 million in the second quarter of fiscal 2026, to $42.2 million in the second quarter of fiscal 2027. Net charge-offs as a percentage of average net loans receivable on an annualized basis increased to 17.6% in the second quarter of fiscal 2027 from 17.1% in the second quarter of fiscal 2026. Accounts 61 days or more past due decreased to 5.4% on a recency basis at September 30, 2026, compared to 5.8% at September 30, 2025. Recency delinquency on accounts 0 to 60 days past due decreased from 20.0% at September 30, 2025, to 18.9% at September 30, 2026. Our allowance for credit losses as a percentage of net loans receivable was 12.0% at September 30, 2026, compared to 12.1% at September 30, 2025. The table below reflects the customer tenure-based methodology, which aligns with our CECL methodology and illustrates changes in portfolio weighting. Gross Loan Balance By Customer Tenure at Origination As of | Less Than 2 Years | More Than 2 Years | Total 09/30/2021 | $455,201,848 | $939,669,804 | $1,394,871,652 09/30/2022 | $481,374,232 | $1,117,025,275 | $1,598,399,507 09/30/2023 | $324,731,250 | $1,054,823,272 | $1,379,554,522 09/30/2024 | $259,160,389 | $1,036,732,429 | $1,295,892,818 09/30/2025 | $325,775,472 | $989,710,451 | $1,315,485,923 09/30/2026 | $323,282,660 | $991,271,916 | $1,314,554,576 Year-Over-Year Growth (Decline) in Gross Loan Balance by Customer Tenure at Origination 12 Month Period Ended | Less Than 2 Years | More Than 2 Years | Total 09/30/2021 | $89,959,257 | $195,487,499 | $285,446,756 09/30/2022 | $26,172,384 | $177,355,471 | $203,527,855 09/30/2023 | $(156,642,982) | $(62,202,003) | $(218,844,985) 09/30/2024 | $(65,570,861) | $(18,090,843) | $(83,661,704) 09/30/2025 | $66,615,083 | $(47,021,978) | $19,593,105 09/30/2026 | $(2,492,812) | $1,561,465 | $(931,347) Portfolio Mix by Customer Tenure at Origination As of | Less Than 2 Years | More Than 2 Years 09/30/2021 | 32.6% | 67.4% 09/30/2022 | 30.1% | 69.9% 09/30/2023 | 23.5% | 76.5% 09/30/2024 | 20.0% | 80.0% 09/30/2025 | 24.8% | 75.2% 09/30/2026 | 24.6% | 75.4% General and administrative ("G&A") expenses decreased $2.1 million, or 2.9%, to $69.9 million in the second quarter of fiscal 2027, compared to $72.0 million in the same quarter of the prior fiscal year. As a percentage of revenues, G&A expenses decreased from 53.4% during the second quarter of fiscal 2026 to 50.2% during the second quarter of fiscal 2027. Personnel expense decreased $3.8 million, or 8.0%, during the second quarter of fiscal 2027, compared to the second quarter of fiscal 2026. Salary expense decreased approximately $0.3 million, or 1.0%, during the quarter ended September 30, 2026, compared to the quarter ended September 30, 2025. Our headcount as of September 30, 2026, decreased 3.4%, compared to September 30, 2025. Benefit expense increased approximately $0.4 million, or 4.9%, when comparing the quarterly periods ended September 30, 2026 and 2025. Incentive expense decreased $4.2 million in the second quarter of fiscal 2027, compared to the second quarter of fiscal 2026. The decrease in incentive expense is primarily due to a decrease in share-based compensation expense. Occupancy and equipment expense increased approximately $0.5 million, or 4.4%, when comparing the quarterly periods ended September 30, 2026 and 2025. Advertising expense increased $0.8 million, or 36.7%, in the second quarter of fiscal 2027, compared to the second quarter of fiscal 2026 due to increased spending on new customer acquisition programs. Interest expense for the quarter ended September 30, 2026, decreased by $2.7 million, or 18.8%, from the corresponding quarter of the previous year. Interest expense decreased primarily because the prior-year quarter included a $3.0 million early call penalty on our long-term notes and a $0.7 million write-off of the remaining unamortized debt issuance costs, neither of which recurred in the current quarter. This decrease was partially offset by a 13.3% increase in average debt outstanding. The average debt outstanding increased from $514.4 million to $582.8 million, when comparing the quarters ended September 30, 2025 and 2026. The Company's debt to equity ratio increased to 1.7:1 at September 30, 2026, compared to 1.6:1 at September 30, 2025. As of September 30, 2026, the Company had $592.1 million of debt outstanding. Other key return ratios for the second quarter of fiscal 2027 included a 4.6% return on average assets and a return on average equity of 13.9% (both on a trailing twelve-month basis). The Company repurchased 133,199 shares, or 3.0% of its outstanding common stock, at an aggregate purchase price of approximately $25.0 million during the second quarter of fiscal 2027. This is in addition to repurchases of 15,858 shares during the first quarter at an aggregate purchase price of approximately $2.2 million. The Company repurchased 3.3% of its outstanding shares year to date. This is in addition to repurchases of 858,642 shares during fiscal 2026 at an aggregate purchase price of approximately $132.4 million. As of September 30, 2026, the Company had approximately $25.0 million in aggregate remaining repurchase capacity under its current share repurchase program and $47.5 million in aggregate remaining repurchase capacity under the terms of its revolving credit facility (subject to further board approval). The Company repurchased 400,617 shares during fiscal 2025 at an aggregate purchase price of approximately $54.2 million. The Company had approximately 4.5 million common shares outstanding, excluding 131,690 unvested restricted shares, as of September 30, 2026. Six-month financial results Net income for the six months ended September 30, 2026, was $14.9 million, compared to net loss of $0.1 million for the same period of the prior fiscal year. This resulted in net income of $3.25 per diluted share for the six months ended September 30, 2026, compared to net loss of $0.01 per diluted share in the prior-year period. Income before taxes for the six months ended September 30, 2026, was $19.6 million compared to $1.0 million in the prior-year period. The six months ended September 30, 2026, included $4.8 million ($3.6 million after tax) in expense related to the CEO transition. Adjusted net income, a non-GAAP financial measure that excludes the after-tax impact of the CEO transition expense, was $18.5 million for the six months ended September 30, 2026, and adjusted net income per diluted share was $4.05. A reconciliation of each non-GAAP measure to the most directly comparable GAAP measure is provided under "Non-GAAP Financial Measures" below. Total revenues for the first six months of fiscal 2027 increased 4.0% to $278.4 million, compared to $267.6 million during the corresponding period of the previous year, mostly due to a portfolio shift in mix to higher-yielding smaller loans. Annualized net charge-offs as a percent of average net loans decreased from 18.3% during the first six months of fiscal 2026 to 17.9% for the first six months of fiscal 2027. Non-GAAP financial measures From time-to-time the Company uses certain financial measures derived on a basis other than generally accepted accounting principles ("GAAP"), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. Such financial measures qualify as "non-GAAP financial measures" as defined in SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items and other infrequent charges. The Company may present these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company's core operating performance and provide greater transparency into the Company's results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components to understanding and assessing the Company's financial performance. Such non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company's GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP and are, thus, susceptible to varying calculations, any non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies. For purposes of assessing performance, the Company has presented adjusted net income and adjusted net income per diluted share for the six-months ended September 30, 2026, to remove the after-tax impact of the CEO transition expense from the corresponding GAAP earnings metrics. Management believes these non-GAAP measures provide investors with useful supplemental information regarding the Company's operating performance by excluding an item management does not consider indicative of ongoing operations. This measure has limitations as an analytical tool and should not be considered in isolation or as a substitute for GAAP earnings or other income statement data prepared in accordance with GAAP. The following table reconciles GAAP income before income taxes to Adjusted net income: | Six months ended September 30, | | Six months ended September 30, | 2026 | | 2025 | | | Income before income taxes | $19,565,948 | | $965,157 | | | Expenses: | | | Personnel | 4,317,348 | | — Other | 484,272 | | — Adjusted income before income taxes | 24,367,568 | | 965,157 Income tax expense at actual rate | 5,848,216 | | 1,042,303 Adjusted net income (loss) | $18,519,352 | | $(77,146) | | | Weighted average dilutive shares outstanding | 4,569,698 | | 5,158,066 | | | Adjusted net income (loss) per common share, diluted | $4.05 | | $(0.01) About World Acceptance Corporation (World Finance) Founded in 1962, World Acceptance Corporation (NASDAQ: WRLD), is a people-focused finance company that provides personal installment loan solutions and personal tax preparation and filing services to over one million customers each year. Headquartered in Greenville, South Carolina, the Company operates more than 1,000 community-based World Finance branches across 16 states. The Company primarily serves a segment of the population that does not have ready access to credit; however, unlike many other lenders in this segment, we strive to work with our customers to understand their broader financial pictures, ensure they have the ability and stability to make payments, and help them achieve their financial goals. For more information, visit www.loansbyworld.com. Second quarter conference call The senior management of World Acceptance Corporation will be discussing these results in its quarterly conference call to be held at 10:00 a.m. Eastern Time today. A simulcast of the conference call will be available on the Internet at https://event.choruscall.com/mediaframe/webcast.html?webcastid=035RXwGf. The call will be available for replay on the Internet for approximately 30 days. During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company's responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously. Cautionary Note Regarding Forward-looking Information This press release may contain various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, that represent the Company's current expectations or beliefs concerning future events. Statements other than those of historical fact, as well as those identified by words such as "anticipate," "estimate," "intend," "plan," "expect," "project," "believe," "may," "will," "should," "would," "could," "probable" and any variation of the foregoing and similar expressions are forward-looking statements. Such forward-looking statements are inherently subject to risks and uncertainties. The Company's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include the following: recently enacted, proposed or future legislation and the manner in which it is implemented, including pursuant to policies of the current U.S. administration; changes in the U.S. tax code; the nature and scope of regulatory authority, particularly discretionary authority, that is or may be exercised by regulators, including, but not limited to, U.S. Consumer Financial Protection Bureau, and individual state regulators having jurisdiction over the Company; the unpredictable nature of regulatory examinations, proceedings and litigation; employee misconduct or misconduct by third parties; uncertainties associated with management turnover and the effective succession of senior management, including the recent CEO transition; media and public characterization of consumer installment loans; labor unrest; the impact of changes in accounting rules and regulations, or their interpretation or application, which could materially and adversely affect the Company's reported consolidated financial statements or necessitate material delays or changes in the issuance of the Company's audited consolidated financial statements; the Company's assessment of its internal control over financial reporting; changes in interest rates; the impact of inflation and macroeconomic uncertainty; political and other risks, including the impact of wars, geopolitical conflict, regional conflicts and terrorism; risks relating to the acquisition or sale of assets or businesses or other strategic initiatives, including increased loan delinquencies or net charge-offs, the loss of key personnel, integration or migration issues, the failure to achieve anticipated synergies, increased costs of servicing, incomplete records, and retention of customers; risks inherent in making loans, including repayment risks and value of collateral; cybersecurity threats or incidents, including the potential or actual misappropriation of assets or sensitive information, corruption of data or operational disruption and the cost of the associated response thereto; our dependence on debt and the potential impact of limitations in the Company's revolving credit facility and warehouse facility or other impacts on the Company's ability to borrow money on favorable terms, or at all; the timing and amount of revenues that may be recognized by the Company; changes in current revenue and expense trends (including trends affecting delinquency and charge-offs); the impact of extreme weather events and natural disasters; changes in the Company's markets and general changes in the economy (particularly in the markets served by the Company). These and other factors are discussed in greater detail in Part I, Item 1A,"Risk Factors" in the Company's most recent annual report on Form 10-K for the fiscal year ended March 31, 2026, as filed with the SEC and the Company's other reports filed with, or furnished to, the SEC from time to time. World Acceptance Corporation does not undertake any obligation to update any forward-looking statements it makes. The Company is also not responsible for updating the information contained in this press release beyond the publication date, or for changes made to this document by wire services or Internet services. WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share amounts) | | | | Three months ended September 30, | | Six months ended September 30, | | 2026 | | | 2025 | | | | 2026 | | | 2025 | Revenues: | | | | | | | Interest and fee income | $ | 123,277 | | $ | 118,958 | | | $ | 244,792 | | $ | 234,261 | Insurance and other income, net | | 15,930 | | | 15,890 | | | | 33,624 | | | 33,362 | Total revenues | | 139,207 | | | 134,848 | | | | 278,416 | | | 267,623 | | | | | | | | Expenses: | | | | | | | Provision for credit losses | | 46,002 | | | 49,841 | | | | 89,759 | | | 100,357 | General and administrative expenses: | | | | | | | Personnel | | 44,146 | | | 47,989 | | | | 94,972 | | | 93,751 | Occupancy and equipment | | 12,345 | | | 11,820 | | | | 24,380 | | | 23,605 | Advertising | | 2,968 | | | 2,171 | | | | 5,093 | | | 4,470 | Amortization of intangible assets | | 752 | | | 809 | | | | 1,526 | | | 1,640 | Other | | 9,675 | | | 9,180 | | | | 20,046 | | | 18,863 | Total general and administrative expenses | | 69,886 | | | 71,969 | | | | 146,017 | | | 142,329 | | | | | | | | Interest expense | | 11,651 | | | 14,343 | | | | 23,074 | | | 23,972 | Total expenses | | 127,539 | | | 136,153 | | | | 258,850 | | | 266,658 | | | | | | | | Income (loss) before income taxes | | 11,668 | | | (1,305 | ) | | | 19,566 | | | 965 | | | | | | | | Income tax expense | | 2,913 | | | 358 | | | | 4,705 | | | 1,042 | | | | | | | | Net income (loss) | $ | 8,755 | | $ | (1,663 | ) | | $ | 14,861 | | $ | (77 | ) | | | | | | | Net income (loss) per common share, diluted | $ | 1.92 | | $ | (0.33 | ) | | $ | 3.25 | | $ | (0.01 | ) | | | | | | | Weighted average diluted shares outstanding | | 4,558 | | | 5,093 | | | | 4,570 | | | 5,158 | WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (unaudited and in thousands) | | | | | | | | | | | September 30, 2026 | | March 31, 2026 | | September 30, 2025 ASSETS | | | | | Cash | $ | 8,308 | | | $ | 6,071 | | | $ | 9,409 | Gross loans receivable | | 1,319,019 | | | | 1,278,988 | | | | 1,315,492 | Less: | | | | | Unearned interest, insurance and fees | | (346,909 | ) | | | (325,064 | ) | | | (339,119 | ) Allowance for credit losses | | (116,326 | ) | | | (112,047 | ) | | | (117,797 | ) Loans receivable, net | | 855,784 | | | | 841,877 | | | | 858,576 | Restricted cash | | 19,001 | | | | 23,303 | | | | 5,473 | Income taxes receivable | | 5,887 | | | | 2,421 | | | | 11,574 | Operating lease right-of-use assets, net | | 75,608 | | | | 71,527 | | | | 73,051 | Property and equipment, net | | 17,021 | | | | 17,431 | | | | 18,465 | Deferred income taxes, net | | 38,182 | | | | 41,241 | | | | 33,176 | Other assets, net | | 54,041 | | | | 38,669 | | | | 40,191 | Goodwill | | 7,371 | | | | 7,371 | | | | 7,371 | Intangible assets, net | | 2,684 | | | | 4,209 | | | | 5,755 | Total assets | $ | 1,083,887 | | | $ | 1,054,120 | | | $ | 1,063,041 | | | | | | LIABILITIES & SHAREHOLDERS' EQUITY | | | | | Liabilities: | | | | | Revolving credit facility | $ | 502,521 | | | $ | 443,935 | | | $ | 584,586 | Warehouse facility | | 89,572 | | | | 143,293 | | | | — | Operating lease liability | | 78,075 | | | | 73,965 | | | | 75,497 | Accounts payable and accrued expenses | | 61,820 | | | | 37,996 | | | | 36,632 | Deferred revenue (contract liability) | | 3,061 | | | | 3,926 | | | | 2,644 | Total liabilities | | 735,049 | | | | 703,115 | | | | 699,359 | | | | | | Shareholders' equity | | 348,838 | | | | 351,005 | | | | 363,682 | Total liabilities and shareholders' equity | $ | 1,083,887 | | | $ | 1,054,120 | | | $ | 1,063,041 | WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES SELECTED CONSOLIDATED STATISTICS (unaudited and in thousands, except percentages and branches) | | | | | | | Three months ended September 30, | | Six months ended September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | | | | | Gross loans receivable | $ | 1,319,019 | | | $ | 1,315,492 | | | $ | 1,319,019 | | | $ | 1,315,492 | Average gross loans receivable (1) | | 1,303,977 | | | | 1,294,106 | | | | 1,292,621 | | | | 1,267,156 | Net loans receivable (2) | | 972,110 | | | | 976,373 | | | | 972,110 | | | | 976,373 | Average net loans receivable (3) | | 961,198 | | | | 959,473 | | | | 956,064 | | | | 941,397 | | | | | | | | Expenses as a percentage of total revenue: | | | | | | | Provision for credit losses | | 33.0 | % | | | 37.0 | % | | | 32.2 | % | | | 37.5 | % General and administrative | | 50.2 | % | | | 53.4 | % | | | 52.4 | % | | | 53.2 | % Interest expense | | 8.4 | % | | | 10.6 | % | | | 8.3 | % | | | 9.0 | % Operating income as a % of total revenue (4) | | 16.8 | % | | | 9.7 | % | | | 15.3 | % | | | 9.3 | % | | | | | | | Loan volume (5) | | 733,123 | | | | 729,803 | | | | 1,492,040 | | | | 1,481,305 | | | | | | | | Net charge-offs as percent of average net loans receivable on an annualized basis | | 17.6 | % | | | 17.1 | % | | | 17.9 | % | | | 18.3 | % | | | | | | | Return on average assets (trailing 12 months) | | 4.6 | % | | | 5.5 | % | | | 4.6 | % | | | 5.5 | % | | | | | | | Return on average equity (trailing 12 months) | | 13.9 | % | | | 13.9 | % | | | 13.9 | % | | | 13.9 | % | | | | | | | Branches opened or acquired (merged or closed), net | | — | | | | (1 | ) | | | — | | | | (11 | ) | | | | | | | Branches open (at period end) | | 1,009 | | | | 1,013 | | | | 1,009 | | | | 1,013 | ____________________ (1) Average gross loans receivable is determined by averaging month-end gross loans receivable over the indicated period. (2) Net loans receivable is defined as gross loans receivable less unearned interest, insurance and fees. (3) Average net loans receivable is determined by averaging month-end gross loans receivable less unearned interest, insurance and fees over the indicated period. (4) Operating income is computed as total revenues less provision for credit losses and general and administrative expenses. (5) Loan volume includes all loan balances originated by the Company. It does not include loans purchased through acquisitions. View source version on businesswire.com: https://www.businesswire.com/news/home/20261023933210/en/ Contacts John L. Calmes, Jr. President and Chief Executive Officer (864) 298-9800

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Management attributed the $1.92 adjusted EPS to a combination of 3.2% revenue growth and a significant 7.7% reduction in provision expense. - Credit quality improvement was driven by a focus on 'blocking and tackling' fundamentals, resulting in front-end delinquency dropping from 20% to 18.9%. - The company is maintaining a cautious lending posture, remaining significantly tighter in underwriting standards compared to the same period last year. - Strategic growth is currently focused on the existing customer base rather than aggressive new consumer acquisition to mitigate macroeconomic risk. - Operational efficiency was a key performance driver, with management noting improved G&A expense discipline as a core priority for the fiscal year. - Management expects to maintain a disciplined approach to expenses and does not anticipate any dramatic changes in the growth trajectory in the near term. - The company may selectively pull levers to increase growth as conditions allow, having slightly loosened standards compared to the March quarter. - A decision on whether to scale the credit card offering is at least one to two quarters away as the company monitors the behavior of the initial pilot portfolio. - Future credit metrics are expected to remain stable as the company continues to prioritize portfolio health over rapid expansion. - Management acknowledged that while gas prices historically impact their customer base, current conservative underwriting has successfully offset these macro pressures. - The competitive environment remains stable, with management expressing confidence in current application flow and market positioning. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management confirmed that gas prices typically impact their customers' budgets, but current credit metrics continue to improve due to conservative underwriting. - The company noted it is difficult to quantify the exact drag of gas prices, but the overall portfolio health remains strong despite macro headwinds. - CEO John Calmes stated the company is focused on operational fundamentals and is currently 'a lot tighter' on lending than they were a year ago. - The strategy involves a cautious approach to growth, with no immediate plans for a dramatic shift in acquisition strategy. - The company is currently letting the initial credit card portfolio 'bake' to observe long-term consumer behavior. - A decision on scaling the program is deferred for at least one to two quarters to ensure sufficient data is collected from the pilot.

Image source: The Motley Fool. Friday, Oct. 23, 2026 - President and Chief Executive Officer - John Calmes - Chief Operating Officer - Tobin Turner Operator: Good morning, and welcome to World Acceptance Corporation's Second Quarter Fiscal 2027 Earnings Conference Call. This call is being recorded. At this time, all participants have been placed in a listen-only mode. Before we begin, the corporation has requested that I make the following announcement. The comments made during this conference call may contain certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the corporation's expectations and beliefs concerning future events. Such forward-looking statements are matters that are inherently subject to risks and uncertainties. And statements other than those of historical fact as well as those identified by words anticipate, estimate, intend, planned, expect, believe, may, will and should or any variation of the foregoing and similar expressions are forward-looking statements. Additional information regarding forward-looking statements and any factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements are included in the paragraph discussing forward-looking statements in today's earnings press release and in the Risk Factors section of the corporation's most recent Form 10-K for the fiscal year ended March 31, 2026 and subsequent reports filed with or furnished to the SEC from time to time. The corporation does not undertake any obligation to update any forward-looking statements it makes. At this time, it is my pleasure to turn the floor over to your host, John Calmes, President and Chief Executive Officer. Please go ahead. John Calmes: Thank you. Good morning, and thank you for joining our fiscal 2027 2nd quarter earnings call. We are pleased with our second quarter results, and more importantly, we believe we are well positioned for the remainder of fiscal 2027 this quarter reflects steady progress against our core priorities: growing loan portfolio responsibly, improving credit quality and maintaining a disciplined approach to expenses. . We achieved adjusted earnings per share of $1.92 for the second quarter. Earnings benefited from a 3.2% increase in revenue as well as a 7.7% decrease in provision expense. Importantly, our credit quality continued to improve. We saw improvement in delinquency on both the front end and back end. Most overly front-end delinquency decreased from 20% to 18.9%. These trends reinforce our confidence in the health of the portfolio and the strength of our underwriting. On expenses, we saw improvement in our G&A expense, and we expect to maintain disciplined approach to expenses going forward. At this time, Tobin Turner, our Chief Operating Officer, and I would like to open up to any questions you may have. Operator: [Operator Instructions] The first question will come from Kyle Joseph with Stephens. Kyle Joseph: I want to pick your brain on what's going on macro, specifically. Just kind of want to get a sense for how sensitive is the consumer or your consumer to gas prices? Is it to the point where you kind of see delinquencies kind of move in line with gas prices or are we at the point where gas is less of an important portion of their budget? John Calmes: Yes. Historically, we've always seen that gas prices will have an impact on the -- our customer, right? But right now, we've been pretty conservative in our underwriting. So overall, the credit metrics continue to improve. So I guess you could ask with the where they've improved about more than they have, if we didn't have sort of higher gas prices, it's hard to know that for sure. But in general, with our portfolio, because we've been pretty cautious on our lending, the overall portfolio has seen improvement. Kyle Joseph: Yes. And then a lot of variables there. So hard to pinpoint for sure. But yes. And then in terms of kind of the strategy going forward, are you guys -- I mean, obviously, it's paying off, you guys are putting up strong credit results here, but are you kind of happy growing kind of the existing customer base being a little bit more cautious, call it, on new consumers? Is that kind of the plan, at least for the medium near term, given what's going on macroeconomically? John Calmes: Yes, that's right. So we're focused right now on the blocking and tackling and getting the fundamentals right of the operations and then taking a cautious approach to lending. So we -- right now, we're a little looser than we were, say, in the March quarter, but we're still a lot tighter than we were at this point last year. So we may continue to kind of put some of those levers to increase growth a little bit, but I wouldn't expect any dramatic change in our growth trajectory in the near term. Operator: [Operator Instructions] The next question will come from Guy Riegel with Ingalls & Snyder. Guy Riegel: It's Guy here. Part of my questions were answered, previous person, analyst. But I was curious, can you speak to the competitive environment? And last one would be, are you still testing a credit card offering? J. Turner: Great questions. Hey, this is Tobin Turner speaking. On the competitive standpoint, we, at a macro level, still feel very confident. We're pleased with our overall app flow. So we kind of like where we're positioned. We see some opportunities to grow when and as we see fit. So from a competitive standpoint, we feel pretty good. On the credit card front, we have we're still kind of pilot testing where we are. We've got enough cards out there that we're kind of getting to see how people behave over time. We really are in just letting that initial portfolio bake. And we're probably at least a quarter or 2 away from trying to make a decision on how to scale that. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Calmes for any closing remarks. John Calmes: Thank you for joining our second quarter earnings call, and thanks for your interest. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in World Acceptance, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and World Acceptance wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $361,596!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,303,935!* Now, it's worth noting Stock Advisor's total average return is 910% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 23, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends World Acceptance. The Motley Fool has a disclosure policy. World Acceptance (WRLD) Q2 2027 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the quarterly performance to a disciplined focus on responsible loan portfolio growth and rigorous expense management. Revenue growth of 4.8% was primarily driven by a combination of year-over-year loan expansion and a 91-basis point increase in interest and insurance yields. Credit quality showed broad improvement, with the annualized net charge-off rate decreasing from 19.2% to 18.2% year-over-year. Underwriting refinements led to a notable reduction in front-end delinquency, which dropped from 19.2% to 18.1% compared to the prior year. The company maintained a lean cost structure, reporting only modest increases in general and administrative expenses when excluding non-recurring CEO transition costs. Management views the current results as a validation of their underwriting strength and the overall health of the existing loan portfolio. The company believes it is well-positioned for the remainder of fiscal 2027 based on current credit trends and operational execution. Management intends to maintain a disciplined approach to general and administrative expenses throughout the fiscal year. Credit strategy remains dynamic, with management indicating a willingness to remain conservative in response to macroeconomic volatility, specifically fluctuating gas prices. The company expects to continue balancing loan growth with credit quality, prioritizing portfolio health over aggressive expansion. Reported earnings included one-time costs specifically related to the CEO transition process. Provision expense decreased by 13.4%, reflecting improved portfolio aging and the impact of previous credit tightening measures. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management tightened the credit box approximately six months ago in response to rising gas prices and inflationary pressures. The company began a modest loosening of credit standards about one month ago but remains generally conservative due to ongoing energy price volatility. Current underwriting posture is described as more open than five months ago but still intentionally restrictive compared to historical norms. Systemic demand for credit remains robust, though the volume of 'bookable' applications decreased slightly as a direct result of tighter internal credit filters. Management does not observe any fundamental shrinking in market demand despite macroeconomic headwinds like higher gas prices.