World Acceptance 2025 Q4 Earnings Strong Performance as Net Income Rises 26.3%

World Acceptance (WRLD) reported its fiscal 2025 Q4 earnings on May 22nd, 2025. World Acceptance's fiscal 2025 Q4 results surpassed expectations with significant growth in net income and EPS. The company has raised its guidance, projecting total revenues of approximately $565 million for fiscal 2026 with an expected diluted EPS of $16.30.

Revenue

The total revenue of World Acceptance increased by 3.8% to $165.27 million in 2025 Q4, up from $159.26 million in 2024 Q4.

Earnings/Net Income

World Acceptance's EPS rose 30.5% to $7.70 in 2025 Q4 from $5.90 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $44.28 million in 2025 Q4, marking 26.3% growth from $35.06 million in 2024 Q4. The EPS reflects positive financial performance.

Price Action

The stock price of World Acceptance has edged down 0.83% during the latest trading day, has dropped 3.69% during the most recent full trading week, and has jumped 11.21% month-to-date.

Post-Earnings Price Action Review

The strategy of buying WRLD when revenue beats and holding for 30 days delivered strong results, with a 131.93% return, significantly outperforming the benchmark. Despite its impressive returns, the strategy carries substantial risk, evidenced by the high maximum drawdown of -78.51% and a Sharpe ratio of 0.33. This indicates that while the potential for gains is considerable, the volatility and risk are equally significant. Investors should weigh these factors carefully when considering this approach, as the moderate returns may not justify the heightened risk for everyone.

CEO Commentary

John L. Calmes, Jr., Executive VP, Chief Financial & Strategy Officer, emphasized that World Acceptance Corporation's fourth quarter performance reflects a solid trajectory, with net income increasing to $44.3 million driven by a notable rise in tax preparation revenue and improved interest yields. The strategic shift towards smaller loan balances has led to a 3.5% growth in the customer base, although gross loans outstanding decreased. Calmes noted the company's commitment to enhancing portfolio yield while managing risk, indicating a cautious yet optimistic outlook as they navigate the evolving financial landscape.

Guidance

World Acceptance Corporation anticipates continued revenue growth, projecting total revenues of approximately $565 million for fiscal 2026, alongside an expected diluted EPS of $16.30. The company aims to maintain a disciplined approach to credit losses, with qualitative expectations focused on improving portfolio quality and reducing delinquencies. Management expressed confidence in achieving these targets while adapting to market conditions.

Additional News

In recent weeks, World Acceptance Corporation announced an equity buyback plan for $20 million worth of its shares, showcasing its commitment to returning value to shareholders. This follows previous authorizations for similar buyback initiatives, indicating a strategic focus on enhancing shareholder returns through stock repurchases. Additionally, the company has updated its tranche plan concerning the equity buyback announced in May 2024, demonstrating continued execution of its share repurchase strategy. Furthermore, there have been no significant changes in the company's executive leadership, providing stability as World Acceptance navigates the current financial landscape.