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.