World Acceptance 2026 Q1 Earnings Sharp Net Income Drop Despite Revenue Growth

World Acceptance (WRLD) reported its fiscal 2026 Q1 earnings on August 6, 2025. The results marked a sharp decline in net income despite modest revenue growth. The company’s EPS fell 85.7% year-over-year to $0.26, while net income dropped 86.5% to $1.34 million. Management provided cautious guidance, emphasizing sequential improvements in loan growth and credit performance.

Revenue
World Acceptance reported total revenue of $132.45 million for Q1 2026, a 2.3% increase from $129.53 million in the prior-year period. Interest and fee income accounted for the majority of revenue, contributing $115.30 million, while insurance and other income, net added $17.15 million to the total. These figures reflect a continued focus on core lending operations and ancillary income streams.

Earnings/Net Income
The earnings performance was notably weak, with net income falling to $1.34 million in Q1 2026, compared to $9.95 million in the same period of 2025. This represents a significant 86.5% year-over-year decline. Similarly, EPS plummeted by 85.7% to $0.26, underscoring the challenges faced by the company in maintaining profitability.

Price Action
WRLD shares edged up 0.57% on the latest trading day and 1.90% over the past full trading week. However, the stock declined 7.20% month-to-date as of the earnings report date.

Post-Earnings Price Action Review
A strategy of buying WRLD following earnings beats and holding for 30 days yielded a strong 124.71% return in the period reviewed, outperforming the benchmark by 36.45%. The CAGR of 17.76% highlights the potential for significant gains, although the strategy carried a high volatility of 54.85% and a Sharpe ratio of 0.32, indicating a high-risk approach.

CEO Commentary
The CEO emphasized strong loan growth, improved credit performance, and strategic refinancing as key factors in the company’s recent results. He highlighted the sequential increase in outstanding loans and reduced delinquencies as positive indicators for future performance. Additionally, the CEO noted the importance of tighter underwriting standards and the growth in small loan volume in supporting improved yields.

Guidance
Management expects continued loan growth and improved yields, with strong originations and a growing customer base driving moderate earnings growth. The company plans to redeem its remaining 7.00% Senior Secured Notes due 2026 and expand stock repurchase capacity to over $200 million over the next 12 months. Leadership also anticipates value creation through increased stock repurchases and improved operational performance.

Additional News
On April 29, 2025, World Acceptance Corporation reported its fiscal 2025 fourth quarter results. The report did not include specific earnings metrics or revenue figures, as the content was noted to be non-existent. No significant M&A activity, C-level changes, or dividend announcements were disclosed in the related period. The statement appears to have been a placeholder or disclaimer regarding forward-looking guarantees of returns.