"Our customer base increased by 4% this quarter, compared to the first quarter of last year. This is our first positive customer base growth we've experienced during the first quarter in 3 years."
— Ravin Chad Prashad
03Detailed Report
WRLD
World Acceptance Corporation
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 14, 2026
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Executive Summary
World Acceptance Corporation (WRLD) reported its Q1 2026 financial results, showcasing a robust revenue of $132.45 million, reflecting a 2.3% increase year-over-year, despite a seasonal dip of 19.9% compared to Q4 2025. The company has witnessed substantial growth in loan originations, with a notable increase of 12.6% year-over-year, contributing to a strong rebound in customer base and improving credit quality metrics. The operational highlights reveal a strategic transition in managing credit risk while targeting sustainable profitability. Management's commitment to enhancing shareholder value through strategic stock repurchase plans aims at significantly boosting earnings per share (EPS) in the coming quarters. However, the seasonality of earnings poses challenges, as evidenced by a net income decline of 86.5% year-over-year alongside a significant EPS drop to $0.25.
Key Performance Indicators
Revenue
Increasing
132.45M
QoQ: -19.86% | YoY: 2.26%
Gross Profit
Increasing
131.62M
99.37% margin
QoQ: -0.47% | YoY: 56.49%
Operating Income
Increasing
58.96M
QoQ: -12.28% | YoY: 159.79%
Net Income
Decreasing
1.34M
QoQ: -96.97% | YoY: -86.50%
EPS
Decreasing
0.25
QoQ: -96.92% | YoY: -86.03%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: Total revenue for Q1 2026 hit $132.45 million, marking a 2.3% increase from $129.50 million in Q1 2025. The revenue decrease of 19.9% from the previous quarter aligns with typical seasonal trends in the lending business.
Profitability Metrics: Gross profit for the quarter was $131.621 million with a gross profit margin of 99.37%, a slight dip compared to previous periods, indicating effective cost management. However, net income saw a drastic decline to $1.343 million (net profit margin of 1.26%), significantly lower than the $9.78 million in Q1 2025.
Operational Efficiency: The operating income of $58.961 million reflected a robust operating margin of 44.5%, showcasing effective cost control in operations despite net income pressures.
Balance Sheet Health: Total assets amounted to $1.024 billion against total liabilities of $596.206 million, yielding a debt-to-equity ratio that suggests a healthy capital structure. The cash and cash equivalents stood at $8.126 million, strengthening liquidity but indicating reliance on receivables for cash flow.
Cash Flow and Shareholder Returns: The strategic decision to increase stock repurchases to 100% of net income reflects management's plan to enhance shareholder returns amidst earnings fluctuations. They currently have approximately $145 million earmarked for buybacks, post-bond redemption, signaling a confidence in future earnings.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
132.45M
2.26%
-19.86%
Gross Profit
131.62M
56.49%
-0.47%
Operating Income
58.96M
159.79%
-12.28%
Net Income
1.34M
-86.50%
-96.97%
EPS
0.25
-86.03%
-96.92%
Key Financial Ratios
Management Insights Available for Members
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World Acceptance Corporation (WRLD) QQ2 2026 Earnings Analysis: Growth in New Customer Origination, Strategic Capital Actions, and Near-Term Profitabi...