"Our customer base has actually increased by 4% year-over-year compared to shrinking 2.2% for the 12 months ending December of 2024...all of these results show a stabilized portfolio with both higher credit quality and higher yields"
— Chad Prashad
03Detailed Report
WRLD
World Acceptance Corporation
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 14, 2026
Swipe to view all report sections
Executive Summary
World Acceptance Corporation (WRLD) demonstrated solid performance in the third quarter of fiscal 2025, achieving revenue of $138.6 million, an impressive growth compared to the previous year. After undergoing a comprehensive rightsizing and de-risking strategy, the company has returned to pre-pandemic portfolio growth norms, increasing its customer base by 7% year-over-year. Management noted significant improvements in yields, which rose over 200 basis points, with a steady portfolio demonstrating low default rates. The quarter’s results affirm a stabilized operational framework, paving the way for future growth in fiscal 2026.
Moreover, the overall positive trend in net income, despite a year-over-year decline, reflects strategic repositioning toward higher-quality customers with manageable lending terms. This foundational shift is expected to enhance long-term profitability, making the outlook optimistic for shareholders.
Key Performance Indicators
Revenue
Increasing
138.63B
QoQ: 105 397.15% | YoY: 100 541.28%
Gross Profit
Increasing
137.69B
99.32% margin
QoQ: 1 145.97% | YoY: 101 902.63%
Operating Income
Increasing
66.02B
QoQ: 171 905.91% | YoY: 91 803.77%
Net Income
Decreasing
13.39M
QoQ: -39.50% | YoY: -19.66%
EPS
Decreasing
2.46
QoQ: -39.26% | YoY: -14.88%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Performance Summary
- Revenue: $138.63 million (YoY: 100.54%, QoQ: 105.40%)
- Net Income: $13.39 million (YoY: -19.66%, QoQ: -39.50%)
- EPS: $2.46 (YoY: -14.88%, QoQ: -39.26%)
- Operating Income: $66.02 million with an operating margin of 47.62% (YoY: 91,803.77%, QoQ: 171,905.91%)
The company achieved a gross profit margin of approximately 99.32%, indicating efficient cost management relative to revenue generation. The focus on non-refinance customer growth allowed a rebound in loan origination, enhancing overall portfolio yield. Current ratio: 22.28; Quick ratio: 22.28; indicating a robust liquidity position to cover short-term liabilities efficiently.
Management has highlighted a notable drop in average loan balance, yet a corresponding increase in customer credit quality suggests effective risk management efforts. This strategic pivot should drive long-term sustainable revenue growth despite current income fluctuations.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
138.63B
100 541.28%
105 397.15%
Gross Profit
137.69B
101 902.63%
1 145.97%
Operating Income
66.02B
91 803.77%
171 905.91%
Net Income
13.39M
-19.66%
-39.50%
EPS
2.46
-14.88%
-39.26%
Key Financial Ratios
Gross Profit Margin
Excellent
99.30%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
47.60%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Weak
0.01%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
1.21%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.00%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
22,283.00
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.00
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
11.41x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Undervalued
0.00x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.
World Acceptance Corporation (WRLD) QQ2 2026 Earnings Analysis: Growth in New Customer Origination, Strategic Capital Actions, and Near-Term Profitabi...