olivlawolivlaw

olivLaw · US equity research

World Acceptance Corporation WRLD

Personal Credit Institutions · SIC 6141 · Vertical: Personal Credit Institutions (SIC 6141)

161.10USD−2.75% · 1 dayClose 04 Nov 2026

World Acceptance Corporation, known on the American market under the ticker WRLD, offers fixed-rate personal loans to customers with limited access to traditional credit, through its branch network in the United States. The company operates in sixteen states and is going through a period of portfolio contraction, with rising revenues but a high level of credit losses, according to its SEC filings.

At the close of 04 Nov 2026, World Acceptance Corporation (WRLD) stock was 161.10 USD (−2.75% on the day), with market capitalisation 751.2 m USD, P/E 19.4 on diluted EPS of 8.31 USD over the last 12 months, beta 1.19, 52-week range 115.57–223.83 USD. Latest reported quarter (Q1 2027): revenue of 139.2 m USD (+4.8% YoY), net income of 6.1 m USD (+285.4% YoY), diluted EPS 1.33 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
751.2 m USD
shares as of 31 Jul 2026
P/E (TTM)
19.4
Diluted EPS TTM 8.31 · TTM to 30 Jun 2026
E/P (TTM)
5.16%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
1.19
Volatility (1y) 47%
52-week range
115.57223.83

Price history

Loading chart…

Technical reading

RSI (14)
35.4
weak (30–45)
Bollinger (20, 2)
160.60 – 180.18
in the lower half of the band · %B 0.03 · band width 11.5%
SMA 50 / 200
177.05 / 163.89
mixed trend
MACD (12, 26, 9)
-3.20 / -2.83
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−8.6%−1.1%−7.5 pp—
3 months−16.3%−0.5%−15.9 pp—
6 months+8.1%+4.4%+3.7 pp—
Year to date+14.8%+12.3%+2.4 pp—
1 year+22.1%+13.5%+8.6 pp+7.2%
3 years+49.9%+76.4%−26.5 pp+142.3%
5 years−33.9%+63.7%−97.6 pp—
Max drawdown (1y)
−28.0%
30 Jun 2026 → 04 Nov 2026
Max drawdown (5y)
−77.0%
22 Dec 2021 → 19 Dec 2022
Compound annual growth (5y)
−8.0%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q1 2027 · 30 Jun 2026

Revenue
139.2 m USD
+4.8% YoY
Net income
6.1 m USD
+285.4% YoY
Diluted EPS
1.33
+343.3% YoY
net / operating
4.4% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27
Revenue131.7 m139.0 m163.7 m132.8 m134.8 m141.6 m175.9 m139.2 m
Interest expense10.5 m11.3 m11.2 m9.6 m14.3 m12.8 m12.7 m11.4 m
Pre-tax income27.9 m16.0 m54.4 m2.3 m-1.7 m-1.0 m46.0 m7.9 m
Income tax5.9 m2.7 m10.4 m684.3 k358.0 k-4.0 k9.6 m1.8 m
Net income22.4 m13.6 m43.1 m1.6 m-1.7 m-625.0 k35.3 m6.1 m
Diluted EPS4.032.497.910.30-0.33-0.137.441.33
Operating cash flow53.8 m ≈61.1 m ≈90.9 m58.2 m48.6 m ≈58.0 m ≈94.6 m64.4 m
Capex1.0 m ≈685.6 k ≈869.3 k1.0 m918.0 k ≈807.9 k ≈1.1 m1.3 m
Share repurchases10.0 m ≈1.0 m ≈32.0 m13.0 m66.6 m ≈15.0 m ≈37.8 m2.2 m

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 64 percentile of its own 39-quarter history (min 6.2, median 16.2, max 51.6; quarters with earnings only).

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue544.5 m590.0 m528.0 m585.2 m616.5 m572.8 m564.2 m585.2 m
Revenue YoY+8.3%+8.4%−10.5%+10.8%+5.4%−7.1%−1.5%+3.7%
Net income37.2 m28.2 m88.3 m53.9 m21.2 m77.0 m89.2 m34.6 m
Net income YoY−30.6%−24.4%+213.5%−38.9%−60.6%+262.9%+15.8%−61.2%
Diluted EPS4.053.5413.238.473.6013.1416.216.88
Diluted EPS YoY−32.4%−12.6%+273.7%−36.0%−57.5%+265.0%+23.4%−57.6%
net %6.8%4.8%16.7%9.2%3.4%13.5%15.8%5.9%
Free cash flow234.9 m269.7 m215.3 m266.4 m285.7 m259.9 m250.5 m255.5 m

Reported results vs expectations

Loading…

Balance sheet & financial health

Fiscal year 2026 · 31 Mar 2026

Cash
6.1 m USD
Financial debt
587.2 m USD
Net debt
581.2 m USD
Equity
351.0 m USD
Total assets
1.1 bn USD
Debt / equity
1.67x
Current ratio
unavailable
ROE
8.8%
ROA
3.4%
FCF margin
43.7%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
572.8 m
2025
564.2 m
2026
585.2 m

SEC (XBRL)· 04 Jun 2026verified

Interest expense
2024
48.2 m
2025
42.7 m
2026
49.4 m

SEC (XBRL)· 04 Jun 2026verified

Pre-tax income
2024
99.0 m
2025
111.3 m
2026
45.2 m

SEC (XBRL)· 04 Jun 2026verified

Income tax
2024
22.0 m
2025
22.1 m
2026
10.7 m

SEC (XBRL)· 04 Jun 2026verified

Net income
2024
77.0 m
2025
89.2 m
2026
34.6 m

SEC (XBRL)· 04 Jun 2026verified

Diluted EPS
2024
13.14
2025
16.21
2026
6.88

SEC (XBRL)· 04 Jun 2026verified

Weighted average diluted shares
2024
5.9 m
2025
5.5 m
2026
5.0 m

SEC (XBRL)· 04 Jun 2026verified

Balance sheet · USD

Cash
2024
5.2 m
2025
4.7 m
2026
6.1 m

SEC (XBRL)· 04 Jun 2026verified

Property, plant & equipment, net
2024
22.9 m
2025
19.8 m
2026
17.4 m

SEC (XBRL)· 04 Jun 2026verified

Goodwill
2024
7.4 m
2025
7.4 m
2026
7.4 m

SEC (XBRL)· 04 Jun 2026verified

Intangibles (excl. goodwill)
2024
11.1 m
2025
7.4 m
2026
4.2 m

SEC (XBRL)· 04 Jun 2026verified

Total assets
2024
1.1 bn
2025
1.0 bn
2026
1.1 bn

SEC (XBRL)· 04 Jun 2026verified

Long-term debt
2024
498.4 m
2025
447.9 m
2026
587.2 m

SEC (XBRL)· 04 Jun 2026verified

Total liabilities
2024
631.9 m
2025
571.5 m
2026
703.1 m

SEC (XBRL)· 04 Jun 2026verified

Equity
2024
422.4 m †
2025
437.0 m †
2026
351.0 m †

SEC (XBRL)· 04 Jun 2026verified

Cash flow · USD

Operating cash flow
2024
265.8 m
2025
254.2 m
2026
259.4 m

SEC (XBRL)· 04 Jun 2026verified

Capex
2024
5.9 m
2025
3.7 m
2026
3.9 m

SEC (XBRL)· 04 Jun 2026verified

Free cash flow
2024
259.9 m ≈
2025
250.5 m ≈
2026
255.5 m ≈

SEC (XBRL)· 04 Jun 2026derived

Investing cash flow
2024
-135.1 m
2025
-152.8 m
2026
-232.9 m

SEC (XBRL)· 04 Jun 2026verified

Financing cash flow
2024
-135.3 m
2025
-103.5 m
2026
-6.8 m

SEC (XBRL)· 04 Jun 2026verified

Share repurchases
2024
36.2 m
2025
54.2 m
2026
132.4 m

SEC (XBRL)· 04 Jun 2026verified

Computed indicators

Growth

Revenue growth (YoY)
3.7%
computed by olivLawFY 2026
Revenue CAGR 3Y
-1.7%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
2.1%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
-61.2%
computed by olivLawFY 2026
Net income CAGR 3Y
17.7%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
-17.1%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
-57.6%
computed by olivLawFY 2026
EPS CAGR 3Y
24.1%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
-12.3%
computed by olivLawFY 2021 → FY 2026
FCF growth (YoY)
2.0%
computed by olivLawFY 2026

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
6.6%
computed by olivLawTTM to 30 Jun 2026
FCF margin
44.2%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
9.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
3.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
562.4 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
1.6x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
unavailable
input data missing
Quick ratio
unavailable
input data missing
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
265.6 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
4.1 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
261.5 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
668.5%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
751.2 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
1.3 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
19.2x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
19.4x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
5.2%
computed by olivLawTTM to 30 Jun 2026
P/B
2.1x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
1.3x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
2.2x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
2.9x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
34.8%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
16.2%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 54.2% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

161.10 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 751.2 m USD

Key indicators

Market capitalisation
751.2 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
19.4x
computed by olivLawTTM to 30 Jun 2026
P/B
2.1x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
9.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
6.6%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
3.7%
computed by olivLawFY 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

21/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 31 Jul 2026
Source: SEC (XBRL)published 06 Aug 2026
verified 2023derived 112

Score by group

54% · Insufficient data

Estimated value range

Low
462.87
USD per share
Mid
618.84
USD per share
High
894.07
USD per share
Price: 161.10 USD
The price is below the range
Potential to the central value: 284.1% (value / price − 1)
Margin of safety: 74.0% (1 − price / value)
Agreement between methods: low · 2 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 75.28 – 1,671.24 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)850.46 – 1,671.24 (Mid 1,132.48)
    WACC 7.3% · starting FCFF 300.9 m USD · terminal value share of EV 79%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: no growth between −30% and +40% justifies the price
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/E75.28 – 116.89 (Mid 105.20)
    8 companies used · median multiple 12.7x · quartiles 9.1x – 14.1x
    AFRM, ATLC, BFH, CACC, ENVA, HAPN, NNI, RM
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Personal Credit Institutions (SIC 6141)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 54.2% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality6.6%20 (vs peers)12%
FCF conversion · Quality668.5%100 (on a fixed band)12%
Revenue CAGR 3Y · Growth-1.7%0 (on a fixed band)15%
EPS CAGR 3Y · Growth24.1%100 (on a fixed band)15%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheetunavailableunavailable—
P/E (TTM) · Valuation19.4x0 (vs peers)19%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation34.8%100 (on a fixed band)15%
Shareholder yield (distributions) · Returns16.2%100 (on a fixed band)12%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partialunavailable · 0/3 factors with a value
  • Growth50/100 · 2/2 factors with a value
  • Quality60/100 · 2/3 factors with a value
  • Returns· partial100/100 · 1/2 factors with a value
  • Valuation44/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

WORLD ACCEPTANCE CORP (WRLD). Latest full fiscal year: 2026; data up to 2026-06-30.

Figures computed from the financial statements: revenue 585.2 m USD in 2026; YoY growth 3.7%; net margin 6.6%; ROE 9.9%.

The estimated value range is 462.87–894.07 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 618.84 USD, the price of 161.10 USD leaves a potential of 284.1% (value / price − 1) and a margin of safety of 74.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 54.2% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 668.5%
  • EPS CAGR 3Y: 24.1%
  • FCF yield: 34.8%
  • Shareholder yield (distributions): 16.2%
  • The price is below the estimated value range

What contradicts it

  • Net margin: 6.6%
  • Revenue CAGR 3Y: -1.7%
  • P/E (TTM): 19.4x
  • The valuation methods diverge

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Personal Credit Institutions (SIC 6141) · same industry (4-digit SIC) · compared with 8 companies

Multiples and returns vs the median

P/E
19.4x
vertical median 12.7x
above median (+53.1%)
EV/EBITDA
—
vertical median —
P/S
1.3x
vertical median 1.1x
above median (+20.8%)
P/B
2.1x
vertical median 1.2x
above median (+71.9%)
ROE
9.9%
vertical median 19.3%
below median (−48.6%)
Net margin
6.6%
vertical median 10.5%
below median (−36.9%)
EBIT margin
—
vertical median —
Revenue YoY
3.7%
vertical median 9.7%
below median (−61.6%)
Net debt/EBITDA
—
vertical median —
Dividend yield
—
vertical median 1.5%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
CACCCredit Acceptance Corp5.1 bn16.322.7%14.4%+7.2%+8% / +9%
AFRMAffirm Holdings, Inc.4.5 bn13.745.1%45.3%+32.2%+7% / +120%
ENVAEnova International, Inc.4.4 bn12.526.8%10.5%+18.6%+38% / +340%
BFHBread Financial Holdings, Inc.4.0 bn8.315.9%—−19.0%+55% / +273%
HAPNHappen, Inc.1.9 bn9.313.8%—−58.5%−8% / +165%
ATLCAtlanticus Holdings Corp1.5 bn12.824.3%5.8%+50.1%+69% / +223%
WRLDWorld Acceptance Corp751.2 m19.49.9%6.6%+3.7%+22% / +50%
RMRegional Management Corp.353.4 m8.012.6%7.0%+9.7%+4% / +79%
NNINelnet, Inc.—15.38.2%—unavailable−1% / +52%

1- and 3-year price returns: for WRLD from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
90.09
Total return -44% · Per year -44%
159.79
Total return -1% · Per year -1%
241.38
Total return 50% · Per year 50%
3 years
76.84
Total return -52% · Per year -22%
154.32
Total return -4% · Per year -1%
257.44
Total return 60% · Per year 17%
5 years
65.53
Total return -59% · Per year -16%
149.04
Total return -7% · Per year -2%
274.57
Total return 70% · Per year 11%
What moves the 3-year price the most
  • Exit P/E± 38.58
  • Net margin± 27.01
  • Annual revenue growth± 23.57
  • Annual dilution± 2.27

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

World Acceptance Corporation, known on the American market under the ticker WRLD, offers fixed-rate personal loans to customers with limited access to traditional credit, through its branch network in the United States. The company operates in sixteen states and is going through a period of portfolio contraction, with rising revenues but a high level of credit losses, according to its SEC filings.

SWOT

Strengths

  • Extensive network of physical branches across several states, which supports direct customer relationships and loan origination.
  • Long experience in fixed-rate consumer lending to non-prime customers.
  • Diversified revenues from insurance and tax preparation services that complement interest income.

Weaknesses

  • High dependence on personal loans and geographic concentration in a few states.
  • High credit losses and provisions that absorb a significant share of revenue.
  • Personnel and general costs that rose considerably in fiscal 2026.

Opportunities

  • If the lower delinquency rate holds, the company could resume portfolio growth under the new conditions.
  • Branch acquisitions and expansion into new states are directions management cites for growth.
  • Share repurchases can support per-share value in periods of stronger profitability.

Threats

  • Pressure from regulators and public campaigns that describe consumer installment loans as abusive.
  • Inflation and changes in interest rates can reduce customers' ability to pay.
  • Competition in new markets and possible state-level legislative changes.

Risks

  • Reputation and public perceptionhigh

    Campaigns that characterise loans as predatory could influence public policy and adversely affect the business 1.

  • Borrower default riskhigh

    Customers have limited access to traditional credit, and credit losses depend on economic conditions in the states where the company operates 1.

  • Interest rates and liquiditymedium

    The cost of debt and liquidity can be affected by changes in interest rates, especially in periods of higher rates 1.

  • Geographic concentrationmedium

    Activity is concentrated in sixteen states, and a regulatory or economic event in one of the larger states could have significant effects 1.

  • Regulation and supervisionmedium

    Possible direct supervision by federal bodies and rules on automatic payments could increase compliance costs 1.

Investment thesis

What would need to be true (bull case)

  • If lower provisions and a lower default rate are sustained in the coming quarters, profitability could return to higher levels.
  • The share repurchase programme can support per-share value, while adjacent service revenues are growing.
  • Loosening approval criteria for new customers could restart portfolio growth.

What would break the thesis

  • Credit losses rose in fiscal 2026 and the gross loan portfolio declined from earlier levels, which could limit growth.
  • Regulatory pressure and public campaigns could restrict the products offered or raise compliance costs.
  • Geographic concentration and dependence on one main product make the company vulnerable to regional or economic events.

What to watch

  • Trend in the net credit loss rate and the provision for credit lossesQ3 2027
  • Volume of new customer loans after the loosening of approval criteriaQ3 2027
  • Status of CFPB rules on automatic payments and non-bank supervision2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

The company makes fixed-rate consumer installment loans and offers related insurance products and tax return preparation and filing services through its own branches in the United States. According to its annual report for the fiscal year ended March 31, 2026, it had 1,009 branches at that date, and its customers are generally people who do not qualify for, or have difficulty obtaining, credit from traditional sources 1. Total revenues were 585.2 million dollars in fiscal 2026 1. The gross loan portfolio, at 1.28 billion dollars on March 31, 2026, had declined from its 2022 level 1.

The business model relies on growing loan balances through branches, data analytics and branch acquisitions, objectives that management presents as directions for development 1. The company has said it intends to enter new markets by opening new branches and through acquisitions as opportunities arise 1.

Insurance activity is tied to the branches and is mainly limited to larger loans in several states, while tax preparation services are an additional revenue source that grew in fiscal 2026 1.

Segments

Insurance and other income

Insurance revenue is linked to larger loans and was relatively stable, while other income, including tax preparation fees, grew in fiscal 2026 1.

Tax return preparation services

The company prepares and files tax returns in most of its branches, a service with growing revenue, though it remains a small component compared with lending 1.

Market context

The company operates in the American non-bank personal loan market for non-prime customers, a segment that is tightly regulated at state and federal level. According to the annual report, activity is concentrated in a limited number of states, and an adverse event in a large state could significantly affect results 1. Demand in this segment can fall during recessions, while credit losses tend to rise under the same conditions 1.

Interest rates and inflation affect borrowing costs and customers' ability to pay, factors the company largely regards as outside its control 1. In October 2026 the company reported that, after tightening criteria for new customers, it had loosened underwriting again 3.

Trends

  • Rising credit lossesheadwind

    Net charge-offs were 18.5% of average net loans receivable in fiscal 2026, up from the prior year, and the provision for credit losses rose as a share of revenue 1. If this trend continues, it could pressure the company's margins.

  • Profit recovery in recent quarterstailwind

    Net income in the second quarter of fiscal 2027 rose significantly compared with the same period of the prior year, helped by a lower provision for credit losses and lower interest expense 3.

  • Consumer credit regulationmixed

    CFPB rules on automatic payments and possible supervision of non-bank lenders may change how the company operates, with added compliance costs 1. The outcome depends on legislative decisions and how they are applied.

  • Share repurchasesmixed

    The company repurchased shares in fiscal 2026 and in the second quarter of fiscal 2027, reducing the number of shares outstanding 3. This practice could support earnings per share without changing the core business.

Competitive position

The company competes with other non-bank consumer lenders serving the same customer segments, as well as with other sources of credit available to these people. The annual report notes that the degree of competition affects its ability to attract customers in new markets 1.

The company differentiates itself through its physical branch network and direct customer relationships, but this also implies high operating costs, which rose in fiscal 2026 1.

  • US non-bank consumer lenders

    Companies offering fixed-rate personal loans to non-prime customers through branch networks or digital channels, not named in the sources reviewed.

  • Banks and traditional credit institutions

    Cited in the report as alternative credit sources with stricter access conditions than the company's own loans 1.

  • Short-term credit lenders

    Short-term lenders are covered by the CFPB rule described in the report, which places them under similar regulatory pressure 1.

  • Tax return preparation providers

    The company offers tax preparation as an adjacent service, so it competes with specialised providers in this field, not named in the sources.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / World Acceptance Corporation · 04 Jun 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / World Acceptance Corporation · 06 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / World Acceptance Corporation · 23 Oct 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.