World Acceptance Corporation (NASDAQ: WRLD) recently reported its financial results for the third quarter of fiscal 2026, highlighting significant changes from the prior year.
In terms of loan portfolio, gross loans outstanding increased by 1.5% from December 31, 2024, representing a substantial improvement from the 4.0% year-over-year shrinkage as of March 31, 2025. The company attributed this growth to a targeted strategy, with increased loan origination volume for new customers by 16.6% and refinance customers by 8.0% compared to the same quarter in the prior fiscal year. The unique customer base also saw a notable increase of 4.1% compared to the same quarter last fiscal year, representing the largest growth since fiscal 2022.
The company's interest, fee, and insurance income collectively increased by $3.6 million, or 2.7%, with a noticeable 84 basis point yield increase compared to the same quarter in the prior year. Additionally, the customer base increased by 4.1% during the 12-month period ended December 31, 2025, relative to the same period in the prior fiscal year.
Furthermore, the company reported a net loss of $0.9 million in the third quarter of fiscal 2026, representing a significant decrease from the net income of $13.4 million for the same period in the prior year. Total revenues for the third quarter of fiscal 2026 increased to $141.3 million, marking a 1.9% increase from the same quarter of the prior year.
The company experienced a substantial increase in general and administrative expenses, which rose by $10.8 million, or 16.1%, to $78.1 million in the third quarter of fiscal 2026 compared to the same quarter of the prior fiscal year. Personnel expenses, including salary and benefit expenses, increased notably, with headcount as of December 31, 2025, rising by 10.2% compared to December 31, 2024.
Additionally, the company's provision for credit losses exceeded net charge-offs by $4.9 million in the fiscal third quarter and $19.3 million for the nine months ended December 31, 2025. The provision for credit losses increased by $7.3 million to $51.4 million from $44.1 million when comparing the third quarter of fiscal 2026 to the third quarter of fiscal 2025. This was largely due to the company's new loan growth, as well as an increase in net charge-offs and growth in new customers during the quarter.
World Acceptance Corporation also reported a decrease in its debt to equity ratio, which increased to 1.9:1 at December 31, 2025, compared to 1.3:1 at December 31, 2024. The company repurchased 102,559 shares, or 2.1% of its outstanding common stock, at an aggregate purchase price of approximately $15.0 million during the third quarter of fiscal 2026.
The market has reacted to these announcements by moving the company's shares -0.43% to a price of $138.95. For more information, read the company's full 8-K submission here.
