World Acceptance Corporation Reports Fiscal 2026 Fourth Quarter Results

About this update from World Acceptance Corporation

GREENVILLE, S.C., April 30, 2026--(BUSINESS WIRE)--World Acceptance Corporation (NASDAQ: WRLD) today reported financial results for its fourth quarter of fiscal 2026. Fourth fiscal quarter highlights Following a period of economic uncertainty and elevated inflation, the Company took decisive action to tighten underwriting standards dramatically in an effort to manage conservatively through the lending environment and focus on improvement to overall portfolio credit quality. As a result, outstanding balances declined each year from fiscal 2023 to fiscal 2025. During fiscal 2025, however, we shifted strategy to reintroduce targeted portfolio growth. We are pleased to report that for the third consecutive quarter, outstanding loans increased year over year. Excluding acquisitions, organic growth increased 4.9% and our unique customer base grew 3.5% compared to the same quarter last fiscal year. To reverse the prior trend of declining balances while maintaining high credit quality, we had been focused on new customers with higher credit quality and, during the third quarter of fiscal 2026, we increased new customers as a percentage of the portfolio from 6.4% as of September 30, 2024 to 9.9% as of December 31, 2025. While these new customers continue to perform well, new customers carry a substantially higher reserve for loan losses under our allowance methodology than existing customers. Having increased the new customer funnel for several consecutive quarters, we are now in a position to decelerate new customer growth and focus on overall portfolio health while allowing these new customers to season. As of March 31, 2026, new customers decreased to 8.2% as the portfolio begins to mature. We expect that our portfolio will continue to deliver results in the coming fiscal year as we pursue growth with a lower proportion of new customers. As the customer base matures and growth becomes more broadly distributed across customer types, we anticipate lower charge-offs, reduced reserve rates, and improved profitability. Highlights from the fourth quarter include: Portfolio results Gross loans outstanding were $1.28 billion as of March 31, 2026, a 4.4% increase from the $1.23 billion of gross loans outstanding as of March 31, 2025. This represents a substantial improvement from shrinking 4.0% year over year as of March 31, 2025. During the most recent quarter, our for...

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