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World Acceptance Q4 2025 Earnings Report
World Acceptance Corporation reported an increase in net income and total revenues for the fourth quarter of fiscal year 2025, driven by higher tax preparation revenue and a partial forfeiture of performance-based restricted shares.
Key Takeaways
World Acceptance Corporation announced strong fourth-quarter fiscal 2025 results, with net income rising to $44.3 million and total revenues increasing to $165.3 million. The company's diluted EPS reached $8.13, benefiting from a significant increase in tax preparation revenue and a one-time gain from share forfeiture. Despite a decrease in gross loans outstanding, the customer base expanded, and key financial ratios improved.
Net income for Q4 FY25 increased to $44.3 million, up from $35.1 million in Q4 FY24.
Total revenues for Q4 FY25 rose to $165.3 million, a 3.8% increase from $159.3 million in Q4 FY24.
Diluted net income per share for Q4 FY25 was $8.13, compared to $6.09 in Q4 FY24.
The customer base increased by 3.5% during the quarter, contributing to overall growth.
World Acceptance
World Acceptance
World Acceptance Revenue by Segment
Revenue by Segment
Interest and Fee Income Revenue
CapyFin.comInsurance and Other Income, Net Revenue
CapyFin.com Forward Guidance
The company anticipates continued improvement in portfolio gross and net yield by increasing new and former customer small loan volume and maintaining tighter underwriting of large loans. They expect solid returns on fiscal 2025 originations due to early payment performance and yield, despite an increase in provision for credit losses related to new growth.
Positive Outlook
- Expect portfolio gross and net yield to continue to improve.
- Solid returns anticipated on fiscal 2025 originations.
- Early payment performance and yield are positive indicators.
- Continued focus on increasing new and former customer small loan volume.
- Maintenance of tighter underwriting for large loans.
Challenges Ahead
- Provision for credit losses negatively impacted by higher 90-day past due accounts.
- Smaller decrease in expected loss rates compared to prior year.
- Increase in 0-5 month customers, considered riskiest, as a percentage of the portfolio.
- Gross loans outstanding decreased sequentially by 11.3% in the most recent quarter.
- Recency delinquency on accounts at least 90 days past due increased from 3.1% to 3.7%.