WRLD - Earnings call transcript Q3 2025 | World Acceptance Corporation

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Operator

Good morning, and welcome to World Acceptance Corporation's Third Quarter 2025 Earnings Conference Call. This call is being recorded. [Operator Instructions] Before we begin, the corporation has requested that I make the following announcement.

The comments made during this conference call may contain certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the corporation's expectations and beliefs concerning future events. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties.

any of words as expect, forward-looking anticipate, will should those identified as believe, statements. than foregoing and the the by estimate, or other historical expressions well fact those may, and Statements similar of are variation intend, plan,

obligation or earnings or in Additional results most today's implied statements release of the forward-looking subsequent are statements it included in statements Form paragraph section the furnished time cause not fiscal the forward-looking to year with makes. from discussing Risk any The filed in March differ regarding any corporation's factors such to information to and update could and recent in XXXX, any the time. XX-K the SEC forward-looking from does that press and to for forward-looking actual XX, the or performance expectations ended expressed corporation Factors reports statements undertake

it your the is turn my to Prashad, At Executive Chief Chad this and host, time, Officer. pleasure to over floor President

Chad Prashad

morning. our for third XXXX joining fiscal you call. earnings quarter Good Thank

areas open few there a seeing the years after up questions, and to about rightsizing like results derisking. are of to throughout portfolio We're a we're few we the highlight. Before excited I'd

as XX% shrinking the the at of of last well size the the finally, And our shrinking first-pay year have years last portfolio as in default by year-over-year. X X quarter to to rates loan over The yields several quarters. year-over-year as low returned last growth basis to norms. year-to-date. well Portfolio the XXX remain the third same returned as our points Notably, improved over year-over-year growth after pre-pandemic quarter continues increased has we've essentially end third portfolio perform even itself

of XX has actually period of ending December for 'XX. the and months increased compared Our for the customer shrinking by same XX% fiscal shrinking XXXX year-over-year X.X% to X% base

poised as and to fiscal 'XX. credit a of portfolio All steadily higher yields these with in stabilized higher both we're quality results show grow

during the quarter portfolio we fiscal fiscal and of X.X% 'XX, grew third the third to in compared quarter of the X.X% During 'XX, 'XX. by X.X% shrinking

we third as our customer quarter the X.X% the growth For base quarter prior the during which X% pre-pandemic. during as third of customer to compares an X% average year customer base, the growth well base of in experienced

We has work diligently X.X% overall our XX, our with and from ensure and Year-over-year, customers average the to almost decreasing December yields our base from profitability. to right and balance decreased to regrow across by profile XX.X% credit XXXX. higher long-term customer risk/reward customer customer average XX, balance while XXXX, base improve our December our quality by

portfolio, Our an by improved notably in our refinance entire yields customers customers. as our for for have well yields as driven both including now, the improvement non-refinance

with during third more fiscal compared over during quarter volume third 'XX compared Our fiscal to the the to more 'XX. rebounded made loans non-refinance quarter has XX% and XX%

All in as this growth stable credit performance as comes for with indicators improvement early yield quality. well marked

to marketing applications. adjustments new and For show continue increased acquisition customers, and channel quality

improved rates customers for dramatically. Our approval has new

the same to payment of and improving rates period XX% 'XX, default to same yields. while approval The compared period again the compared first third fiscal our low 'XX increased rates all quarter maintaining fiscal XX% gross by by of

and made from to to delinquency this large opportunity 'XX. see as to already far into so continue 'XX see we've our -- same 'XX. our and years charge-off shifts into loans the calendar into loan yields large especially investments part improve related and rates, of convert revenue the to we a these year, the current as do income fiscal stems well in fiscal expect and to an portfolio, We during outsized which delinquency makeup into that and trends With portfolio weighting continuing continue this year trends seen

to we closing, each an needs. our their rebuild and other. immediate team, every in They are as commitment and financial day as meeting I'm customers helping credit, amazing have customers to grateful very to and establish absolutely our to credit Finally, well

Chief would any our questions Calmes, like Strategy and Johnny up time, and to open I Financial to Officer, you this At have.

Operator

And the Stephens. [Operator first will come Instructions] Joseph question Kyle from with

Kyle Joseph

Just this is type see obviously, sustaining driven of environment thinking good the been quality to credit where has of you portfolio? your that quality then fair? going new sounds in portfolio return demand, while there of by customers. but And kind growth about kind growing Is the it is forward, a loan can versus of also is the growth and lot really lingering environment, macro inflation still like

Chad Prashad

Yes.

So customers, non-refinance well. our our a as includes that customer from of lot so growth former has base been

and While we they within increased historic new rates remain, say, I booking range approval from overall normal still rates customers, a the our our of have perspective. would

retention last or attracting as Over on of customers. us current focused to in former to time, we've over really the the as well X year our X, return increasing customers

perspective past, especially. a not new So than environment, the risk current towards pre-pandemic in from the we're to in now weighted been that macro anymore have customers we point,

customers We're like so. from than certainly new were or towards today we XXXX less weighted through XXXX on

risk we credit macroeconomic of 'XX and environment, which the were customers 'XX, with loan the flexibility and the are doing allows underwriting little more we've new of moved customers, recognize sure terms matches, can over especially loans type product setting in a our and X products we're X to last toward make we to smaller quality of we with fiscal the that customers. in years the In shifted the us than and how fiscal that

way even be see move real customers' pocketbooks to on demands real our up anticipate side the additional don't any to any that this to would have significant that change on in in loans. So I dramatically or repay to expect them their environment, inflation the we unemployment able

have really in don't impacts anything significant So short the to anticipate negatively. I term any

Kyle Joseph

kind function function give that us mix? Yes, Is -- do It's it. a stable think, for segue. basis yield, you level? see forward base on sense going that the and highlighted, a Got the at of a I good a point portfolio quality that being credit XXX a new of Is improvement. you of

John Calmes

see primarily mix It's right? XX.X% So large mix, shrunk that. a take portfolio I'll as that of last loan was has it you year. can where Yes. to the XX.X%, percent our

year-over-year, while have to our shrunk small our close XX%. So loans close XX%, loans large to grown have

So that's the largest part it. of

But yes, certainly, a well. in that credit as not on part Yes, interest quality nonperforming will accruing have loans. we're our

So does help us that well.

Kyle Joseph

the X you're timing last versus insight terms me, and then And refunds, given Any of thinking where are season quarter. helpful. guys last we have in you in on Very magnitude how tax for this X about year? just

Chad Prashad

too tell. it's still early to little Yes. I mean I think a

to in we're couple tax over hold We've good of branches season. the country. a made have of taken root operational think a that off changes and throughout our taken I years really number the last

to I operators, kudos done So they've a think wonderful our there. job

From a marketing perspective, same thing.

interest signs But least demand -- I the increased or with we've at us. early or So think the it's still are same customer in product seen it's early.

be weeks normally of first of haven't which yet into hit will we that week this quite couple the We biggest file, our weeks February.

we're it's So say I but would to optimistic. cautiously early tell,

Operator

Our John with Janney. Rowan next will from question come

John Rowan

portfolio. customers want you I marketing I kind the history I'm small you're not you you And former large like of portfolio, mean, marketing feels customers? the you Are say jettison, curious, obviously are back the focus to to as it of marketing what Are we're company. that but them? going of kind core reembracing you're you them? to So the guys are loan really to growing loan to the guys

in rates the the typical it for periods then have company history meaning refinancing during same just the the same large economics growth loan of left to the had we company, the the that customers company curious or grew Is the or has market that of remarketing product which the yields, refinance and basically the may so small the growth? know you're in you to years. that same XX portfolio I'm if the also

Chad Prashad

John, great question. Yes.

of, yes, So lot there's no, to answer. little that a of, a there's bit

Today, we non-refinance were a 'XX. back to calendar to which the moving 'XX as customer to you $XXX you from the to of was as customers, So seen around up part small and closer quite seeking pre still context, is that's smaller whole, good have leading lending back To around XXXX, our bit XXXX. our some $X,XXX, in would on loan. we that give down a average new $XXX, are loan $XXX not $X,XXX

as So while we've used to still low come be. it back as not down, it's

be. the On to our used have worked we to Again, be. not to yields quite get economic are where to as side, used up they they loans as small the close

pre quite yields are then being And see product to be, us a to see would different. even ever refinance not they see is to don't side, on you a used the the be able not back as XXXX. that would what high bit pre-XXXX. super you itself refinance back return I the Certainly Part high going to to yields. the gross rate little is So of as that

So our be. longer average than is it used term to

So to term. closer months months for you're about new an XX customer all today are around a in a XX door, for looking at our the of walking loans for average term,

typically that or not at refinance more So for refinances to a So a once going loans and loan, than term year, not we're see right? looking length or in customers X-month in the we're period we're where of a given loans just X-month twice within term year.

product different on moved from a to it's So perspective. that

customer are us still from on: market who've one, growth really those last perspective and performance customers, customers for former small overall for we return to loans. From to former a do of over smaller an the and couple the loan years dollar perspective, new focused continue to we though, left

we -- secured. actively large make loan is work On really that are side, the continue underwritten and to also to and well larger sure to loan portfolio continue actively

John Rowan

of make the understood Can sure with I Okay. duration. just the one Particularly I answers.

the -- today, a underwritten? right? you are refinance, contractual small life loan of life average a when the the length basically? life what's the actual And What's the on marketing versus is loan portfolio stated of the when So contractual

Chad Prashad

Yes.

of choosing new the the XX XX% So that. typical year. to to customers say, our probably the with first will It's around months in articulate way refinance roughly be, loan best let's

John Calmes

probably the is to XX where life portfolio. around the months more by months Yes, for X XX expected the I contractualized to X think

Operator

Concludes Prashad remarks. our question-and-answer closing to Chad for over session. conference like turn any would to back the I

Chad Prashad

the for earnings and guys, join World us concludes Acceptance for this taking Corporation. you, third to our quarter Thank call today, time

Operator

today's attending for you Thank presentation. concluded. now has conference The

disconnect. now may You

World Acceptance (WRLD) 28 Jan 252025 Q3 Earnings call transcript