World Acceptance (WRLD) Q1 Earnings call transcript Jul 26, 2025

World Acceptance Corporation held its first-quarter 2025 earnings call, providing insights into the company's financial health and strategic initiatives. With a focus on growth, portfolio optimization, and regulatory updates, the call offered valuable information for investors and analysts.

Performance and Growth Strategy

CEO Chad Prashad reported modest growth in the company's customer base, achieving a 50 basis points increase. This growth was accompanied by a slight decline in average balance and an improvement in gross yields across all customer types. Despite a 7% decrease in average balance year-over-year, the company has managed to significantly improve gross yields, delinquency, and G&A expenses. The company's strategy for high credit quality growth is evident in its focus on low cost acquisition and prudent portfolio management.

Regulatory Environment

The regulatory environment was a key topic of discussion. World Acceptance has moved to sub-36% states, specifically Illinois and New Mexico, and has not experienced significant changes in other states. At the federal level, the company is undergoing supervision by the Consumer Financial Protection Bureau (CFPB), with the process expected to be a learning experience for both parties. No other updates on the securitization process were provided.

Shareholder Questions and Investor Relations

Shareholder questions focused on growth targets, loss rates, and regulatory impacts. The company's emphasis on former customers and low cost acquisition strategies were highlighted. Management's confidence in achieving long-term targets, such as $20.45 earnings per share, was clear, despite challenges in the current quarter.

Looking Ahead

World Acceptance Corporation's first-quarter earnings call provided a comprehensive overview of the company's performance, strategies, and future outlook. The company's focus on growth, regulatory compliance, and cost management positions it well for the remainder of the fiscal year. Investors and analysts will closely watch the company's progress in implementing its strategies, particularly in the context of the evolving regulatory landscape.