"Our non-refinance volume has rebounded in the second quarter, making stronger year-over-year gains...we expect net yields to continue to increase as well."
— Chad Prashad
03Detailed Report
WRLD
World Acceptance Corporation
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 14, 2026
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Executive Summary
World Acceptance Corporation (WRLD) reported mixed financial results for Q2 2025, highlighting a strategic focus on enhancing customer base quality while navigating challenges in revenue growth. The company achieved net income of $22.13 million, up 37.59% YoY, contributing to earnings per share (EPS) of $4.05. However, total revenue declined by 3.99% compared to the previous year, reflecting pressure on loan origination during a transitional period. Management emphasized the success of its efforts to increase approval rates for new customers and improve overall yield, suggesting a focus on sustainable growth. Despite the revenue challenges, management remains optimistic about achieving their full-year EPS target of $16.35, driven by improved loan performance and strategic acquisitions.
Key Performance Indicators
Revenue
Decreasing
131.41M
QoQ: 1.45% | YoY: -3.99%
Gross Profit
Decreasing
-13.16B
-100.18% margin
QoQ: -15 751.68% | YoY: -13 754.18%
Operating Income
Increasing
38.38M
QoQ: 69.12% | YoY: 83.47%
Net Income
Increasing
22.13M
QoQ: 122.45% | YoY: 37.59%
EPS
Increasing
4.05
QoQ: 126.26% | YoY: 45.68%
Revenue Trend
Margin Analysis
Financial Highlights
### Financial Performance
- Revenue: $131.41 million, down 3.99% YoY, but an increase of 1.45% QoQ.
- Net Income: $22.13 million, an increase of 37.59% YoY and 122.45% QoQ.
- EPS: $4.05, up 45.68% YoY and 126.26% QoQ.
### Profitability Ratios
- Net Profit Margin: 16.8%, up from previous year
- Operating Income: $38.38 million, reflecting an 83.47% increase YoY.
### Funding and Leveraging
- Total Debt: $587.8 million
- Total Liabilities: $631.7 million
- Equity: $417.46 million, reflecting a solid capital position.
Management indicated a positive trajectory in profitability driven by reduced first payment defaults, an increase in higher-quality customer approvals, and improved gross yields of 113 basis points compared to the previous year, laying the groundwork for operational efficiency in future periods.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
131.41M
-3.99%
1.45%
Gross Profit
-13.16B
-13 754.18%
-15 751.68%
Operating Income
38.38M
83.47%
69.12%
Net Income
22.13M
37.59%
122.45%
EPS
4.05
45.68%
126.26%
Key Financial Ratios
Gross Profit Margin
Weak
-100.18%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Excellent
29.20%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Good
16.80%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.11%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.30%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
19,419.00
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
High Risk
1.41
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
7.29x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.55x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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World Acceptance Corporation (WRLD) QQ2 2026 Earnings Analysis: Growth in New Customer Origination, Strategic Capital Actions, and Near-Term Profitabi...