World Acceptance Swings to $8.8 Million Fiscal 2027 Q2 Profit

World Acceptance Corporation swung to an $8.755 million fiscal 2027 second-quarter profit as revenue climbed 3.2%, while its provision for credit losses declined and customer base shrank.

For the three months ended Sept. 30, net income was $8.755 million, or $1.92 per diluted share. In the year-earlier period, the company had a $1.663 million net loss, equal to a diluted loss of 33 cents per share.

Revenue totaled $139.207 million, up from $134.848 million in the same quarter last year. The provision for credit losses fell to $46.002 million from $49.841 million. Net charge-offs, which measure loans written off after recoveries, rose to $42.2 million from $41.1 million.

Loan originations varied by customer group. New-customer originations were $51.155 million, down 18.1% from a year earlier. Originations to former customers declined 9.9% to $94.398 million, while refinances increased 4.4% to $587.613 million.

The customer base was 5.4% smaller at Sept. 30 than 12 months earlier. World Acceptance linked the decline to tighter underwriting for new customers, pointing to the share of new customers who were already in its portfolio and to macroeconomic uncertainty. The company said it has since loosened underwriting and expects to carefully increase lending to new customers in coming quarters.

World Acceptance provides personal installment loans and tax preparation and filing services. It serves more than one million customers annually and operates more than 1,000 branches across 16 states.