World Acceptance Corp. reported second-quarter fiscal 2027 net income of $8.8 million, or $1.92 a diluted share, versus a net loss of $1.7 million, or $0.33 a share, in the same quarter a year earlier.
Revenue rose to $139.2 million from $134.8 million, up $4.4 million, or 3.2%. Interest and fee income increased 3.6% to $123.3 million from $119.0 million, while insurance income edged down to $11.6 million from $11.9 million. Other income rose to $4.3 million from $4.0 million.
The company’s provision for credit losses declined to $46.0 million from $49.8 million a year earlier. Net charge-offs increased to $42.2 million from $41.1 million, and annualized net charge-offs as a percentage of average net loans receivable rose to 17.6% from 17.1%.
Delinquency improved. Loans 0 to 60 days past due fell to 18.9% at Sept. 30, 2026, from 20.0% a year earlier. Loans 61 days or more past due declined to 5.4% from 5.8%. The allowance for credit losses was 12.0% of net loans receivable, down slightly from 12.1%.
Gross loans outstanding were $1.319 billion at Sept. 30, 2026, up from $1.315 billion a year earlier. Same-store gross loans for branches open at least 12 months increased 0.1% over the prior year, compared with a 3.3% increase in the comparable period last year.
Loan origination volume shifted sharply by customer type. New-customer loan originations fell to $51.2 million from $62.4 million, a decline of 18.1%. Former-customer originations dropped to $94.4 million from $104.8 million, down 9.9%. Refinance originations rose to $587.6 million from $562.6 million, up 4.4%.
The company ended the quarter with 1,009 open branches, down from 1,012 a year earlier. The customer base decreased 5.4% over the 12 months ended Sept. 30, 2026, compared with a 6.2% increase in the prior-year period.
General and administrative expenses fell to $69.9 million from $72.0 million, down 2.9%, and dropped to 50.2% of revenue from 53.4%. Personnel expense decreased 8.0% to $43.7 million. Salary expense slipped 1.0% to about $29.7 million, while headcount fell 3.4%. Benefit expense rose 4.9% to about $8.5 million. Incentive expense dropped $4.2 million, occupancy and equipment expense rose 4.4%, and advertising expense jumped 36.7% to $3.0 million.
Interest expense declined 18.8% to $11.7 million from $14.4 million, even as average debt outstanding increased to $582.8 million from $514.4 million. Debt outstanding was $592.1 million at quarter-end, and the debt-to-equity ratio increased to 1.7:1 from 1.6:1.
The company repurchased 133,199 shares during the quarter for about $25.0 million, equal to 3.0% of outstanding shares. Year to date, it repurchased 148,? Actually, the two quarters combined totaled 149,057 shares, or 3.3% of outstanding shares, for about $27.2 million. The market has reacted to these announcements by moving the company's shares 1.69% to a price of $169.655. If you want to know more, read the company's complete 8-K report here.
