--- title: "World Acceptance | 8-K: FY2027 Q1 Revenue Misses Estimate at USD 139.21 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/293750444.md" datetime: "2026-07-24T11:37:38.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293750444.md) - [en](https://longbridge.com/en/news/293750444.md) - [zh-HK](https://longbridge.com/zh-HK/news/293750444.md) --- # World Acceptance | 8-K: FY2027 Q1 Revenue Misses Estimate at USD 139.21 M Revenue: As of FY2027 Q1, the actual value is USD 139.21 M, missing the estimate of USD 143.9 M. EPS: As of FY2027 Q1, the actual value is USD 1.33, beating the estimate of USD 0.58. EBIT: As of FY2027 Q1, the actual value is USD 19.32 M. #### Net Income World Acceptance Corporation reported net income of $6.1 million, or $1.33 per diluted share, for the first quarter of fiscal 2027, an increase from $1.6 million, or $0.30 per diluted share, in the same quarter of the prior fiscal year. Adjusted net income, excluding a $4.6 million ($3.6 million after tax) expense related to the CEO transition, was $9.7 million, or $2.12 per diluted share, for the first quarter of fiscal 2027. #### Total Revenues Total revenues increased by $6.4 million, or 4.8%, to $139.2 million in the first quarter of fiscal 2027, compared to $132.8 million in the prior fiscal year’s first quarter. #### Interest and Fee Income Interest and fee income rose 5.4% to $121.5 million in the first quarter of fiscal 2027, up from $115.3 million in the first quarter of fiscal 2026. Interest and insurance yields increased by 91 basis points year-over-year. #### Insurance and Other Income Insurance income remained essentially unchanged at $11.3 million in the first quarter of fiscal 2027, compared to $11.5 million in the prior-year quarter. Other income increased by $0.5 million, or 7.7%, to $6.4 million in the first quarter of fiscal 2027, from $5.9 million in the first quarter of fiscal 2026. #### Provision for Credit Losses The provision for credit losses decreased by $6.7 million to $43.8 million in the first quarter of fiscal 2027, down from $50.5 million in the first quarter of fiscal 2026. As a percentage of total revenue, the provision for credit losses was 31.4% for Q1 FY2027, compared to 38.0% for Q1 FY2026. #### General and Administrative (G&A) Expenses G&A expenses increased by $5.8 million, or 8.2%, to $76.1 million in the first quarter of fiscal 2027, compared to $70.4 million in the same quarter of the prior fiscal year. As a percentage of revenues, G&A expenses increased from 53.0% in Q1 FY2026 to 54.7% in Q1 FY2027, negatively impacted by $4.6 million in CEO transition-related expenses. #### Personnel Expenses Personnel expense increased by $5.1 million, or 11.1%, in Q1 FY2027 compared to Q1 FY2026, with $4.3 million attributed to CEO transition expenses. Salary expense rose by approximately $2.5 million, or 7.8%, including $2.1 million in severance related costs, while headcount remained relatively flat year-over-year. Benefit expense decreased by approximately $1.0 million, or -10.6%, and incentive expense increased by $3.3 million, primarily due to $2.0 million in CEO transition expense. #### Interest Expense Interest expense increased by $1.8 million, or 18.6%, to $11.4 million in the first quarter of fiscal 2027 compared to the prior year’s quarter. This was driven by a 27.6% increase in average debt outstanding to $582.3 million (from $456.2 million), partially offset by a 6.3% decrease in the effective interest rate to 7.8% (from 8.3%). As a percentage of total revenue, interest expense was 8.2% for Q1 FY2027, compared to 7.3% for Q1 FY2026. #### Other Operating Expenses Occupancy and equipment expense increased by approximately $0.2 million, or 2.1%. Advertising expense decreased by $0.2 million, or -7.6%, due to reduced spending on new customer acquisition programs. #### Gross Loans Outstanding Gross loans outstanding increased by 2.3% to $1.29 billion at June 30, 2026, from $1.26 billion at June 30, 2025. #### Delinquency Rates Loans 0-60 days past due on a recency basis decreased from 19.2% at June 30, 2025, to 18.1% at June 30, 2026. Loans 61 days or more past due on a recency basis decreased from 5.4% at June 30, 2025, to 5.2% at June 30, 2026. #### Loan Origination Volume by Customer Type (Q1 FY2027 vs Q1 FY2026) - **New Customers:** decreased to $24.9 million from $41.6 million. - **Former Customers:** decreased to $93.6 million from $96.0 million. - **Refinance Customers:** increased by 4.3% to $640.4 million from $613.8 million. #### Customer Base and Underwriting The customer base decreased by 1.9% during the twelve-month period ended June 30, 2026, compared to a 4.0% increase for the comparable period ended June 30, 2025, following tightened underwriting for new customers. #### Net Charge-offs Net charge-offs decreased by $1.5 million to $43.3 million in Q1 FY2027 from $44.8 million in Q1 FY2026. As a percentage of average net loans receivable on an annualized basis, net charge-offs decreased to 18.2% in Q1 FY2027 from 19.4% in Q1 FY2026. Recoveries from the sale of prior charge-offs amounted to $1.6 million during the quarter. #### Allowance for Credit Losses The allowance for credit losses as a percentage of net loans receivable was 11.8% at June 30, 2026, compared to 11.6% at June 30, 2025. The CECL allowance began at $112.0 million on March 31, 2026, and ended at $112.5 million on June 30, 2026. #### Debt and Equity Total debt outstanding was $572.8 million as of June 30, 2026, with a debt to equity ratio of 1.6:1, up from 1.1:1 at June 30, 2025. The revolving credit facility balance was $467.6 million and the warehouse facility balance was $105.2 million at June 30, 2026. #### Share Repurchases World Acceptance Corporation repurchased 15,858 shares of its common stock for approximately $2.2 million in the first quarter of fiscal 2027. The company had approximately $10.0 million in aggregate remaining repurchase capacity under its current share repurchase program as of June 30, 2026. #### Return Ratios (Trailing Twelve Months) Return on average assets was 3.6%, and return on average equity was 10.6% for the first quarter of fiscal 2027. #### Branches The company operated 1,009 open branches at June 30, 2026. For branches open at least twelve months, same store gross loans increased 2.2% in the twelve-month period ended June 30, 2026. #### Outlook/Guidance World Acceptance Corporation plans to cautiously increase new customer lending in upcoming quarters. This follows a period of tightened underwriting due to increased macroeconomic uncertainty, with expanded underwriting now being implemented. ### Related Stocks - [WRLD.US](https://longbridge.com/en/quote/WRLD.US.md) ## Related News & Research - [World Acceptance SVP Information Technology Jason E. Childers disposes of 2,000 shares worth $381,480](https://longbridge.com/en/news/295832106.md) - [World Acceptance launches share buyback program of up to $50 million](https://longbridge.com/en/news/295846302.md) - [Top Executive Makes Bold Move With World Acceptance Shares](https://longbridge.com/en/news/294568258.md) - [World Acceptance Posts Strong Fiscal Q1 Profit Rebound](https://longbridge.com/en/news/293754468.md) - [World Acceptance SVP Accounting Scott McIntyre sells 1,300 shares for $240,500](https://longbridge.com/en/news/294862196.md)