World Acceptance Corporation (WRLD)

World Acceptance Corp. stock has been impacted by several events in the past six months. The company reported a surprise loss in its fiscal second quarter of 2026, missing analyst forecasts, which led to a pre-market stock drop. The fiscal first quarter of 2026 also reported an EPS that missed analyst estimates. The fiscal third quarter of 2025 saw an EPS that beat analyst estimates. The stock experienced a decline on January 9, 2026, amid broader market volatility. Analyst ratings have shifted, with Zacks Research upgrading World Acceptance from a "strong sell" to a "hold" in December 2025, and Weiss Ratings restating a "hold" rating. The company was also dropped from the Russell Small Cap Comp Growth Index and Russell 3000E Growth Index in June 2025.

World Acceptance Corp. experiences seasonal fluctuations in its operating results and cash needs. Loan demand is generally highest from October through December, corresponding to the company's third fiscal quarter. Loan demand is typically lowest, and loan repayment is highest, from January to March, during its fourth fiscal quarter. Operating results for the third fiscal quarter are usually lower than in other quarters, while results for the fourth fiscal quarter are generally higher.

World Acceptance Corporation is a consumer finance company in the United States, specializing in credit services. It offers short-term small installment loans and medium-term larger installment loans to individuals with limited access to other credit sources. Its major products and services include credit insurance, income tax return preparation and electronic filing services, and automobile club memberships. The company emphasizes in-person customer service and relationship-based lending.

World Acceptance Corp. operates over 1,000 branches across 16 states in the U.S., including Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Texas, Tennessee, Utah, and Wisconsin. The company no longer operates in Mexico.

World Acceptance Corporation's brand reputation has faced scrutiny. In February 2024, the CFPB issued an order establishing supervisory authority over the company, leading to a stock price drop and an investigation into potential securities claims. In 2020, the SEC charged World Acceptance Corporation with violating the FCPA, and the company agreed to pay $21.7 million to resolve charges related to bribes paid by its former Mexican subsidiary. In 2018, a CFPB investigation into the company's marketing and lending practices concluded without a recommendation for enforcement action.

Institutional investors own approximately 80.53% to 83.63% of World Acceptance Corp.'s stock, with major holders including Blackrock Inc., Vanguard Group Inc., and Dimensional Fund Advisors LP. Insiders hold a substantial percentage of the shares, with key individual insider shareholders including Scott J. Vassalluzzo, Thomas W. Smith, Steven M. Fischer, and Clifford Sosin. Insider selling has been noted in the past three months, including transactions by John L. Calmes Jr. and Daniel C. Dyer.