Greenville, South Carolina, October 24, 2025
News Summary
World Acceptance Corporation has announced its financial results for the second quarter of fiscal 2026, showcasing significant growth in outstanding loans to $1.32 billion. Despite the gains, the company faced a net loss of $1.9 million, contrasting a net income of $22.1 million in the same quarter the previous year. New customer borrowing surged by 40.4%, reflecting a strong demand for loans. However, general and administrative expenses soared by 55.3%, raising concerns about expense management amid growing revenues.
Greenville, South Carolina – World Acceptance Corporation (NASDAQ: WRLD) has reported its financial results for the second quarter of fiscal 2026, revealing a significant growth in outstanding loans alongside increased expenses.
As of September 30, 2025, the company’s outstanding loans totaled $1.32 billion, reflecting an increase of $51.2 million from $1.26 billion on June 30, 2025. This represents a year-over-year growth in outstanding loans of 1.5%, contrasting the previous year’s second quarter where the increase was $21.1 million. It is noteworthy that this marks the first year-over-year growth since September 2022.
The company reported a 4.0% sequential increase in gross loans outstanding. New customer borrowing soared by 40.4%, while loan volumes from former customers and refinances rose by 4.1% and 1.0%, respectively, compared to the same quarter in fiscal year 2025. Additionally, the customer base expanded by 6.2% year-over-year, a marked improvement from the 0.1% decrease experienced in the previous year.
The number of unique borrowers increased by 5.8% compared to a 3.6% increase in the same quarter of the prior year. Notably, the number of branches remained stable at 1,013 as of September 30, 2025. Same-store gross loans for branches open for at least twelve months grew by 3.3%, a turnaround from the 5.6% decrease reported during the previous year.
However, the company faced a net loss of $1.9 million for the quarter, a drastic decline from a net income of $22.1 million recorded for the same quarter last year. This results in a net loss per diluted share of $0.38, compared to earnings per share of $3.99 last year.
Revenues for Q2 FY 2026 reached $134.5 million, an increase of 2.3% from $131.4 million in the same period of the prior fiscal year. Interest and fee income rose by 4.4% to $119.0 million, although insurance income saw a slight decline of 3.6% to $11.9 million.
In a concerning trend, General and administrative (G&A) expenses surged by 55.3% to $72.0 million, up from $46.4 million in the same period of fiscal 2025, making up 53.5% of total revenues. Personnel expenses also rose substantially, increasing by 120.6% to $47.989 million, which reflects a 5.1% increase in headcount.
Moreover, interest expenses jumped by 37.2% to $14.3 million due to bond redemptions and an uptick in outstanding debt. The provision for credit losses climbed by $3.1 million to $49.8 million, primarily attributed to the growth in new loans. The allowance for credit losses as a percentage of net loans was 12.1% on September 30, 2025, compared to 12.0% on September 30, 2024.
World Acceptance Corporation’s total debt outstanding amounted to $584.6 million, resulting in a debt-to-equity ratio of 1.6:1, an increase from 1.2:1 the previous year. Despite these financial challenges, the company managed to decrease net charge-offs slightly from $41.9 million to $41.1 million, with charge-offs on average net loans dropping from 17.6% to 17.1%.
In a strategic move, the company repurchased 385,867 shares at an aggregate price of $66.6 million during the second quarter of fiscal 2026, with total shares repurchased year-to-date amounting to 9.1%.
| Feature | Q2 FY 2025 | Q2 FY 2026 |
|---|---|---|
| Outstanding Loans | $1.26 billion | $1.32 billion |
| Year-Over-Year Growth | $21.1 million (0.0%) | $51.2 million (1.5%) |
| Net Income/Loss | $22.1 million | ($1.9 million) |
| Total Revenues | $131.4 million | $134.5 million |
| G&A Expenses | $46.4 million | $72.0 million |
Frequently Asked Questions
- What was the total amount of outstanding loans as of September 30, 2025?
- The total amount of outstanding loans was $1.32 billion as of September 30, 2025.
- How much did the net income change from Q2 FY 2025 to Q2 FY 2026?
- The net income changed from $22.1 million in Q2 FY 2025 to a net loss of $1.9 million in Q2 FY 2026.
- What was the percentage increase in new customer borrowing compared to the same quarter in the previous fiscal year?
- New customer borrowing surged by 40.4% compared to the same quarter in the previous fiscal year.
- What were the revenues for Q2 FY 2026?
- The revenues for Q2 FY 2026 were $134.5 million.
- How have general and administrative expenses changed from the previous year?
- General and administrative expenses surged by 55.3% to $72.0 million, compared to $46.4 million in the same period of fiscal 2025.
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Additional Resources
- The Herald Review: World Acceptance Fiscal Q2 Earnings Snapshot
- Business Wire: World Acceptance Corporation Announces Second Quarter 2026 Conference Call
- Financial Content: World Acceptance Corporation Reports Fiscal 2026 Second Quarter Results
- Encyclopedia Britannica: World Acceptance Corporation
- Google Search: World Acceptance Corporation
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