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World Acceptance Corp (WRLD)
NASDAQ:WRLD
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World Acceptance (WRLD) AI Stock Analysis

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WRLD

World Acceptance

(NASDAQ:WRLD)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
$191.00
▼(-6.68% Downside)
Action:Reiterated
Date:07/25/26
The score is driven primarily by solid cash-flow generation but tempered by volatile profitability and some balance-sheet data inconsistency. Technically, the stock is in a strong uptrend (above key moving averages with positive MACD), supporting the outlook. Valuation looks only fair (P/E ~23.8 with no dividend), while the latest earnings call was constructive on credit improvement and provisioning but still weighed down by elevated loss metrics and some expense pressure.
Positive Factors
Consistent cash generation
World Acceptance demonstrates durable cash generation, with operating and free cash flow tracking net income across periods. Strong cash conversion supports loan originations, funding flexibility, and ability to absorb credit cycles, underpinning long-term franchises in consumer finance.
Negative Factors
Persistently high loss rates
Even with recent improvement, loss rates near the high teens are structurally large for a lending franchise. Elevated charge-offs impose ongoing provision needs, compress margins and require conservative underwriting, limiting sustainable ROE and loan growth without continued credit quality gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
World Acceptance demonstrates durable cash generation, with operating and free cash flow tracking net income across periods. Strong cash conversion supports loan originations, funding flexibility, and ability to absorb credit cycles, underpinning long-term franchises in consumer finance.
Read all positive factors

World Acceptance (WRLD) vs. SPDR S&P 500 ETF (SPY)

World Acceptance Business Overview & Revenue Model

Company Description
World Acceptance Corporation (WRLD) functions as a consumer finance provider, specializing in offering small-dollar loans. The company's product portfolio includes various installment loan types, ranging from short-term, modest sums to larger, med...
How the Company Makes Money
World Acceptance primarily made money by originating and servicing small-dollar installment loans and earning finance charges (interest) and fees over the life of those loans. A key revenue stream was the spread between the annualized rates charge...

World Acceptance Earnings Call Summary

Earnings Call Date:Jul 24, 2026
(Q1-2027)
|
% Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented several clear positives: EPS of $2.12, revenue up 4.8%, a 13.4% reduction in provision expense, a 91 basis-point yield increase, and measurable improvements in net charge-offs and front-end delinquency. Management also reported robust demand and active, conservative portfolio management. Offsetting these positives are still-elevated charge-off and delinquency levels (~18% range), a decline in bookable applications due to prior tightening, modest G&A increases, and one-time CEO transition costs. Overall, the balance of encouraging operational and credit improvements against manageable but notable challenges leads to a constructive tone.
Positive Updates
Adjusted EPS
Adjusted earnings per share of $2.12 for the first quarter, reflecting improved profitability for the period.
Negative Updates
Persistently High Charge-Offs and Delinquency Levels
Despite improvements, annualized net charge-off rate remains elevated at 18.2% and front-end delinquency around 18.1%, indicating credit losses and delinquency are still material.
Read all updates
Q1-2027 Updates
Negative
Adjusted EPS
Adjusted earnings per share of $2.12 for the first quarter, reflecting improved profitability for the period.
Read all positive updates
Company Guidance
Management said it is "well positioned" for the remainder of fiscal 2027 and will continue to focus on responsible loan growth, improving credit quality and disciplined expenses; in Q1 they reported adjusted EPS of $2.12, revenue up 4.8% year‑over‑year, provision expense down 13.4%, and interest and insurance yields up 91 basis points, with annualized net charge‑offs improving to 18.2% from 19.2% a year ago and front‑end delinquency declining to 18.1% from 19.2%; they noted modest G&A increases outside one‑time CEO transition costs, said demand remains robust even as bookable applications fell following a credit box tightening about six months ago that was partially loosened about one month ago, and reiterated a disciplined expense posture going forward.

World Acceptance Financial Statement Overview

Summary
Cash generation is a clear strength (consistently strong operating cash flow/free cash flow), but earnings power has been volatile and 2026 net income fell meaningfully versus 2025 despite slightly higher revenue. The balance sheet shows improved leverage in 2026, yet large swings (notably equity and unusually large 2026 cash flow vs. revenue) reduce confidence in trend quality and recent ROE weakened.
Income Statement
54
Neutral
Balance Sheet
47
Neutral
Cash Flow
68
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue591.92M585.17M564.84M573.21M616.55M585.19M
Gross Profit426.04M347.12M395.63M368.01M306.62M365.55M
EBITDA110.11M54.23M164.97M110.30M38.06M77.25M
Net Income39.35M34.59M89.74M77.35M21.23M53.92M
Balance Sheet
Total Assets1.08B1.05B1.01B1.06B1.12B1.22B
Cash, Cash Equivalents and Short-Term Investments10.42M6.07M4.71M11.84M16.51M19.24M
Total Debt648.07M661.19M525.56M577.95M679.00M779.85M
Total Liabilities716.86M703.12M571.50M631.92M732.09M845.27M
Stockholders Equity362.18M351.01M436.99M424.43M385.23M373.02M
Cash Flow
Free Cash Flow198.36M255.48M250.48M259.85M285.73M266.38M
Operating Cash Flow201.21M259.36M254.16M265.78M291.55M272.45M
Investing Cash Flow-164.61M-232.88M-152.75M-135.14M-180.58M-451.89M
Financing Cash Flow-15.34M-6.83M-103.52M-135.31M-113.70M182.93M

World Acceptance Technical Analysis

Technical Analysis Sentiment
Positive
Last Price204.67
Price Trends
50DMA
186.11
Positive
100DMA
165.03
Positive
200DMA
152.62
Positive
Market Momentum
MACD
-0.51
Positive
RSI
52.79
Neutral
STOCH
27.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRLD, the sentiment is Positive. The current price of 204.67 is above the 20-day moving average (MA) of 191.73, above the 50-day MA of 186.11, and above the 200-day MA of 152.62, indicating a bullish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 27.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRLD.

World Acceptance Risk Analysis

World Acceptance disclosed 47 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$1.83B12.3513.94%22.81%47.41%
70
Outperform
$229.74M7.108.86%5.12%5.42%-24.04%
63
Neutral
$297.15M6.4813.24%2.88%9.63%40.75%
62
Neutral
$837.99M20.8811.00%4.36%
61
Neutral
$1.59B12.6521.67%68.59%30.27%
59
Neutral
$743.08M-10.16-7.74%18.96%-1025.15%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WRLD
World Acceptance
192.51
31.71
19.72%
EZPW
EZCORP
29.78
14.42
93.88%
GDOT
Green Dot
13.48
3.74
38.40%
MFIN
Medallion Financial
10.79
0.88
8.86%
RM
Regional Management
32.49
-0.71
-2.13%
ATLC
Atlanticus Holdings
111.31
61.42
123.11%

World Acceptance Corporate Events

Business Operations and StrategyFinancial Disclosures
World Acceptance Posts Strong Fiscal Q1 Profit Rebound
Positive
Jul 24, 2026
World Acceptance Corporation reported fiscal 2027 first-quarter results on July 24, 2026, showing a sharp rebound in profitability and measured loan growth. Net income rose to $6.1 million, or $1.33 per diluted share, from $1.6 million a year earl...
Business Operations and StrategyPrivate Placements and Financing
World Acceptance Expands Revolving Credit Facility with Investar Bank
Positive
Jul 1, 2026
On June 29, 2026, World Acceptance Corporation expanded its financing capacity by securing a $15 million accordion increase under its existing revolving credit agreement, with Investar Bank joining as an increasing lender. The additional commitmen...
Executive/Board Changes
World Acceptance Announces Interim CEO Transition and Succession
Neutral
Jun 4, 2026
On June 3, 2026, World Acceptance Corporation and Interim President and Chief Executive Officer Janet L. Matricciani agreed to end her interim role, with the company emphasizing that the departure did not stem from any dispute over operations, pol...
Business Operations and StrategyPrivate Placements and Financing
World Acceptance Modifies Credit Agreement Covenant for 2026
Positive
May 26, 2026
On May 22, 2026, World Acceptance Corporation agreed with Bank of Montreal and other lenders to a consent and limited modification of its fixed charge coverage ratio covenant under its revolving credit agreement dated July 22, 2025. The temporary ...
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.Date of analysis: Jul 25, 2026