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World Acceptance Corp (WRLD)
NASDAQ:WRLD
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World Acceptance
(NASDAQ:WRLD)
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Rating:67Neutral
Price Target:
$155.00
▲(11.55% Upside)
The score is driven primarily by solid financial performance (notably revenue and free cash flow strength) and a reasonable valuation. Offsetting this are mixed earnings-call takeaways with near-term profitability pressure and weak-to-neutral technicals with the stock trading below longer-term moving averages.
Positive Factors
Free Cash Flow Strength
Sustained free cash flow growth indicates the business reliably converts earnings into cash, supporting reinvestment, debt reduction, and shareholder returns. This cash generation provides durable financial flexibility to fund growth, absorb credit losses, or buy back shares over months.
New Customer & Origination Growth
A 40% rise in new-customer origination signals structural recovery of demand and expanded market penetration in subprime lending. Over the next several months, higher originations should increase interest income and customer lifetime value as cohorts season, supporting durable revenue expansion if credit performance holds.
Improved Funding & Liquidity
Cancelling bonds, adding a $175M warehouse and a larger credit agreement materially improves funding diversity and liquidity. Strong access to committed capital reduces refinancing risk and supports measured portfolio growth and operational continuity over the medium term.
Negative Factors
Higher Credit Provisions from New Customers
Rising provisions tied to a larger share of new, higher-reserved customers indicate elevated near-term credit costs. This will weigh on earnings and margins until newer cohorts season and credit performance improves, representing a structural headwind to profitability over months.
Material Increase in Long-term Compensation
A roughly $24M jump in long-term incentive expense is a meaningful recurring cost that reduces GAAP earnings and can dilute cash available for other uses. Persistent elevated compensation pressures can compress margins and return metrics until normalized or offset by higher operating income.
Low Net Margin & Declining ROE
A low net margin and falling ROE suggest the firm is generating limited profitability from equity capital. Even with revenue gains, weak margin conversion and lower returns indicate structural inefficiencies or higher cost or credit burdens that will constrain long-term shareholder returns absent improvement.
World Acceptance (WRLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$610.87M
Dividend YieldN/A
Average Volume (3M)67.38K
Price to Earnings (P/E)15.5
Beta (1Y)1.30
Revenue Growth2.31%
EPS Growth-27.81%
CountryUS
Employees2,872
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-0.19
Shares Outstanding5,038,077
10 Day Avg. Volume68,204
30 Day Avg. Volume67,381
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)1.59
Price to Sales (P/S)1.23
P/FCF Ratio2.78
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit1.73
Enterprise Value/Ebitda7.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
World Acceptance Business Overview & Revenue Model
Company DescriptionWorld Acceptance Corporation, together with its subsidiaries, engages in small-loan consumer finance business. The company offers short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It also provides automobile club memberships to its borrowers; and income tax return preparation and electronic filing services. In addition, the company markets and sells credit life, credit accident and health, credit property and auto, unemployment, and accidental death and dismemberment insurance in connection with its loans. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. As of March 31, 2022, it operated 1,167 branches in Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Tennessee, Texas, Utah, and Wisconsin. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.
How the Company Makes MoneyWorld Acceptance generates revenue primarily through interest and fees associated with its personal installment loans. The company's lending model focuses on offering loans to individuals with lower credit scores, which typically results in higher interest rates compared to conventional lenders. Additionally, the company earns revenue from various fees, including origination fees, late fees, and other service charges tied to its loan products. WRLD also benefits from partnerships with other financial service providers, enhancing its product offerings and attracting a broader customer base. The combination of these revenue streams allows World Acceptance to maintain a sustainable business model within the competitive consumer finance landscape.
World Acceptance Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful portfolio and business improvements—strong new-customer acquisition (16% higher origination), 25% higher new-customer outstanding ledger, 5.4% organic customer growth, 2.4% organic ledger growth, and an 84 bps increase in yields—supported by better early credit performance (first-pay defaults ~19% lower). Near-term profitability is pressured by an incremental ~$8M provision for new customers and elevated compensation and personnel expenses associated with strategic investments and temporary overstaffing. Management outlined corrective actions (expected reduction in incentive comp starting Q4 and planned 3–5% branch headcount reductions) and reported robust early tax-season trends and significant share repurchases. On balance, the positive growth, improving credit metrics, yield expansion, and capital return actions outweigh the identifiable near-term headwinds.Q3-2026 Updates
Positive Updates
New Customer Origination and Outstanding Ledger Growth
Originated 16% more new customer volume in the quarter and ended the quarter with ~25% more outstanding new-customer ledger versus the same quarter last year. The quarter had the highest new-customer acquisition since Q3 2021, and early performance indicates these are performing in line with expectations.
Improved Early Credit Performance on New Accounts
First-pay default rates on new customers are already ~19% lower relative to prior high-volume cohorts (referenced to 2021/2022), suggesting improved underwriting and better early returns on recent originations.
Yield and Income Improvement
Gross yields improved ~84 basis points year-over-year. Management attributes yield and income improvements to higher rates in some states, tighter credit limits and underwriting discipline, and improved customer retention.
Customer Base and Ledger Turnaround
Organic customer base grew ~5.4% year-over-year (versus +2.2% last year and declines in the prior two years). Organic ledger growth was +2.4% year-over-year versus a -2.4% decline last year, indicating a reversal to growth.
Share Repurchases and Capital Return
Repurchased nearly 600,000 shares, reducing outstanding shares by ~11% in the first nine months of the fiscal year. The company has ~ $60 million of remaining repurchase capacity (≈9% of outstanding shares), implying potential total repurchases of roughly ~20% of outstanding shares this year.
Early Strength in Tax Filing Season
Mid-quarter update showed substantial year-over-year improvement in both tax filing volume and tax-related revenue. Although weather affected some branches, management remains optimistic about a strong tax season driving revenue.
Underwriting Discipline and Portfolio Quality Actions
Ongoing 'credit box' improvements and disciplined underwriting contributed to a ~2.5% decline in average outstanding loan balance year-over-year (reflecting tighter limits and growth in lower-average-balance new accounts), which management says supports long-term yield improvement and retention of lower-risk, longer-tenured customers.
Negative Updates
Higher Provision for Loan Losses Related to New Customers
The 25% increase in the new-customer outstanding portfolio required an incremental provision of approximately $8.0 million versus the same quarter last year, pressuring near-term earnings.
Elevated Compensation and Personnel Expenses
Quarterly results were impacted by increased share-based compensation and personnel expenses (including a fully expensed share-based award granted last December), contributing to year-over-year headwinds on earnings before the expected decline in these items beginning in Q4.
Temporary Overstaffing and Performance Issues at Branch Level
Management indicated they purposely increased branch headcount to build quality teams but have held some underperforming staff longer than planned; they expect to reduce headcount by ~3–5% going forward as underperformers exit, implying short-term operational inefficiency.
Weather-Related Branch Disruptions
An ice storm affected operations in about 10 states this week, closing portions of branches and creating short-term disruption to tax filing and branch activity.
Complications in Year-over-Year Earnings Comparisons
Management noted that year-over-year earnings comparisons are complicated by the combination of higher share-based comp, personnel costs, investments in new customers and the increased provision for loan losses, which compressed near-term profitability despite favorable portfolio trends.
Company Guidance
Management's guidance emphasized continued portfolio momentum and yield improvement, noting new-customer originations were up 16% in the quarter and new-customer outstanding ledger was up 25% (which in the comparable quarter required roughly an $8 million incremental provision), first-pay defaults on the recent vintage are ~19% lower versus the prior high-volume year, and yields improved about 84 basis points year-over-year; organic customer growth was ~5.4% YoY (versus 2.2% last year and 5.6% in FY2022), organic ledger growth was 2.4% YoY (vs. −2.4% last year), average outstanding loan balances fell ~2.5% YoY, and management expects continued yield gains from higher state rates, tighter underwriting/credit limits, and better retention—additionally, they have repurchased nearly 600,000 shares (reducing share count ~11% in the first nine months), have over $60 million repurchase capacity remaining (~9% of shares at yesterday’s close, targeting roughly 20% this year), anticipate incentive and share‑based comp to ease starting in Q4, plan 3–5% headcount reductions, and expect a stronger tax‑filing season despite weather impacts in about 10 states.World Acceptance Financial Statement Overview
Summary
Solid fundamentals driven by strong free cash flow growth and efficient cash conversion, plus impressive revenue growth. Offsetting this are relatively low net profit margins and a weaker balance-sheet signal from declining return on equity, despite improved leverage.Income Statement
World Acceptance has shown impressive revenue growth in the TTM period, with a significant increase in total revenue. However, the net profit margin is relatively low, indicating potential challenges in cost management or high expenses. The EBIT and EBITDA margins are healthy, suggesting operational efficiency.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved in the TTM period, indicating better leverage management. However, the return on equity has decreased, which could suggest less efficient use of equity capital. The equity ratio is stable, reflecting a balanced asset structure.65
Positive
Cash Flow
World Acceptance has demonstrated strong free cash flow growth in the TTM period, indicating robust cash generation capabilities. The operating cash flow to net income ratio is high, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is also strong, reflecting good cash flow management.80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 570.82M | 564.84M | 573.21M | 616.55M | 585.19M | 527.99M |
| Gross Profit | 346.88M | 395.63M | 368.01M | 306.62M | 365.55M | 416.05M |
| EBITDA | 80.92M | 164.97M | 110.30M | 38.06M | 77.25M | 123.82M |
| Net Income | 57.06M | 89.74M | 77.35M | 21.23M | 53.92M | 88.28M |
Balance Sheet | ||||||
| Total Assets | 1.06B | 1.01B | 1.06B | 1.12B | 1.22B | 954.27M |
| Cash, Cash Equivalents and Short-Term Investments | 14.88M | 9.73M | 11.84M | 16.51M | 19.24M | 15.75M |
| Total Debt | 660.08M | 525.56M | 577.95M | 679.00M | 779.85M | 496.73M |
| Total Liabilities | 696.72M | 568.15M | 631.92M | 732.09M | 845.27M | 549.34M |
| Stockholders Equity | 365.65M | 439.48M | 424.43M | 385.23M | 373.02M | 404.93M |
Cash Flow | ||||||
| Free Cash Flow | 255.33M | 250.48M | 259.85M | 285.73M | 266.38M | 215.27M |
| Operating Cash Flow | 258.84M | 254.16M | 265.78M | 291.55M | 272.45M | 226.95M |
| Investing Cash Flow | -208.12M | -152.75M | -135.14M | -180.58M | -451.89M | -82.00M |
| Financing Cash Flow | -45.58M | -103.52M | -135.31M | -113.70M | 182.93M | -140.83M |
World Acceptance Technical Analysis
Negative
138.95
Price Trends
143.06
Negative
151.49
Negative
153.97
Negative
Market Momentum
-6.25
Positive
36.75
Neutral
25.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRLD, the sentiment is Negative. The current price of 138.95 is above the 20-day moving average (MA) of 137.93, below the 50-day MA of 143.06, and below the 200-day MA of 153.97, indicating a bearish trend. The MACD of -6.25 indicates Positive momentum. The RSI at 36.75 is Neutral, neither overbought nor oversold. The STOCH value of 25.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRLD.
World Acceptance Risk Analysis
World Acceptance disclosed 46 risk factors in its most recent earnings report. World Acceptance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
World Acceptance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.31B | 15.71 | 11.98% | ― | 9.70% | 26.63% | |
74 Outperform | $239.55M | 6.03 | 10.79% | 4.44% | 15.52% | 2.05% | |
73 Outperform | $781.76M | 9.17 | 21.01% | ― | 25.29% | 26.70% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $610.87M | 15.52 | 14.57% | ― | 2.31% | -27.81% | |
64 Neutral | $359.86M | 8.98 | 11.43% | 2.99% | 9.63% | 77.14% | |
56 Neutral | $676.58M | -14.33 | -5.09% | ― | 23.12% | 19.37% |
* Financial Sector Average
WRLD
World Acceptance
121.25
-18.34
-13.14%
EZPW
EZCORP
21.45
9.52
79.80%
GDOT
Green Dot
12.18
3.50
40.32%
MFIN
Medallion Financial
10.29
1.76
20.63%
RM
Regional Management
37.05
2.27
6.53%
ATLC
Atlanticus Holdings
51.63
-4.37
-7.80%
World Acceptance Corporate Events
Business Operations and StrategyFinancial Disclosures
World Acceptance Returns to Growth Amid Quarterly Net Loss
Negative
Jan 27, 2026
On January 27, 2026, World Acceptance Corporation reported results for its third quarter ended December 31, 2025, highlighting a return to portfolio growth after several years of contraction driven by post-pandemic tightening of underwriting standards. Gross loans outstanding rose 1.5% year over year to $1.40 billion, organic loan growth excluding acquisitions reached 2.5%, and the unique customer base expanded 4.1%, marking the largest customer base since fiscal 2022, supported by stronger origination volumes to both new and refinance customers and improved delinquency metrics. Despite a 1.9% increase in total revenues to $141.3 million and an 84-basis-point yield improvement, the company posted a net loss of $0.9 million, or $0.19 per diluted share, versus $13.4 million in net income a year earlier, as higher share-based compensation and a significantly elevated provision for credit losses—needed to rebuild reserves under CECL for a larger mix of new, higher-reserved customers—more than offset revenue gains, signaling a near-term earnings drag from its renewed growth strategy even as management points to better asset quality indicators and positions the portfolio for improved profitability once these newer customers season.
The most recent analyst rating on (WRLD) stock is a Hold with a $139.00 price target. To see the full list of analyst forecasts on World Acceptance stock, see the WRLD Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
World Acceptance Announces Executive Retirement Plan
Neutral
Dec 4, 2025
On December 4, 2025, World Acceptance Corporation announced the retirement of D. Clinton Dyer, Executive Vice President and Chief Branch Operations Officer, effective March 31, 2026, after 30 years of service. In recognition of his contributions, the company approved a retirement package including compensation and benefits. J. Tobin Turner will assume interim leadership of branch operations during the transition, ensuring continuity in the company’s strategic focus and operational excellence.
The most recent analyst rating on (WRLD) stock is a Hold with a $161.00 price target. To see the full list of analyst forecasts on World Acceptance stock, see the WRLD Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.