WORLD ACCEPTANCE CORP

World Acceptance Corporation

Company overview

World Acceptance Corporation is one of the nation's largest small-loan consumer finance companies. The company offers short-term small installment loans, larger installment loans, related credit insurance and ancillary products and services to individual borrowers. It operates 1,009 branches in 16 states as of March 31, 2026: Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Texas, Tennessee, Utah, and Wisconsin.

The company primarily serves individuals with limited access to other sources of consumer credit. It also provides income tax return preparation services and related tax products to loan customers and other individuals.

Core loan products and terms

• Installment loans are the predominant revenue source. These are pre-computed, interest-bearing loans with fully amortizing monthly installments.
• Typical loan sizes and terms:
  • Small loans: $150 to $2,450; 3 to 30 months.
  • Large loans: $2,500 to $25,200; 6 to 60 months.
• Portfolio metrics (as of March 31, 2026):
  • Average loan origination amount in fiscal 2026: $2,015.
  • Average portfolio annual percentage rate (APR): 51.4%.
  • Share of gross loans receivable by APR group: 0–36% group = 38.3%; >36% group = 61.7%.
• Security: Loans are generally secured by collateral listing, but approval does not rely on collateral value and the company does not typically perfect a security interest. Foreclosure on collateral occurs only in limited cases.

Loan portfolio and economics

• Total gross loans receivable: $1,278,988,323 (March 31, 2026).
• Total number of loans outstanding: 709,975 (March 31, 2026).
• Average gross loan balance: $1,801.
• Composition of gross loans receivable by state (percent, March 31, 2026):
  • Texas 21%
  • Georgia 12%
  • Illinois 10%
  • Alabama 6%
  • Missouri 6%
  • New Mexico 6%
  • South Carolina 8%
  • Tennessee 8%
  • Kentucky 7%
  • Oklahoma 5%
  • Louisiana 4%
  • Indiana 2%
  • Mississippi 2%
  • Utah 1%
  • Idaho 1%
  • Wisconsin 1%

Refinancing and customer relationships

• Refinancings (new loans used to repay existing loans) represented 65.8% of origination volume in fiscal 2026 (65.7% in 2025; 67.3% in 2024).
• Refinancings of delinquent loans: 1.2% of loan volume in 2026 (1.0% in 2025; 1.3% in 2024).
• New loans to previous customers accounted for approximately 16.9% of loans originated in 2026 (17.7% in 2025; 18.8% in 2024).

Revenue mix and ancillary services

• Installment loan revenue accounted for about 82% of total revenues in fiscal years 2026, 2025, and 2024.
• Insurance-related operations:
  • The company sells credit life, credit accident and health, credit property and auto, unemployment, and accidental death & dismemberment insurance where permitted.
  • A captive insurance subsidiary reinsures a portion of credit insurance and contributed approximately $2.0 million to total revenue in fiscal 2026. The captive received about 9.0% of credit insurance sold by the company in fiscal 2026.
  • The company also earns commissions from unaffiliated carriers; some commissions are capped by state law.
  • Non-filing insurance premiums and related reimbursements (where permitted) are passed through to a third-party insurer; losses are partly offset by non-filing insurance claims.
• Automobile club memberships are sold as an agent for an unaffiliated club; the company earns commissions but does not administer benefits.
• Tax preparation services and advances:
  • Tax returns prepared: ~91,000 in 2026; ~82,000 in 2025; ~83,000 in 2024.
  • Tax-related revenue: ~$40.4 million in 2026; $36.5 million in 2025; $29.1 million in 2024.
  • The company offers interest- and fee-free tax advance loans against expected refunds and provides a Refund Assurance Plan (RAP) that includes IRS audit representation and reimbursement for verified tax preparation errors up to $5,000 for a three-year period after IRS acceptance.
  • Tax-related services are offered in most branches.

Customers, staff, and corporate structure

• Employees: 2,907 full- and part-time employees as of March 31, 2026, including 260 corporate employees at the main office in Greenville, SC. The remainder are branch staff across 16 states.
• The workforce is not unionized and there are no collective bargaining agreements.
• Advertising channels include direct mail, digital platforms, email, and SMS/text, with increased activity during October–December and around branch openings.
• Advertising expense as a percent of revenue: approximately 1.8% in fiscal years 2026, 2025, and 2024.

Regulation and compliance

The company operates under extensive federal, state, and local licensing and compliance requirements and is subject to federal laws such as the Truth in Lending Act, Equal Credit Opportunity Act, Military Lending Act, Fair Credit Reporting Act, and the FTC Credit Practices Rule. It is overseen by the CFPB and monitors ongoing regulatory developments. State licensing and regulatory regimes affect expansion and branch acquisition decisions; for example, Texas requires Consumer Credit Commissioner approval for large acquisitions and Louisiana imposes ownership and licensing constraints. The company participates in trade associations and lobbying efforts.

Seasonality

Loan demand peaks in October–December (third fiscal quarter) and is generally lower in January–March (fourth fiscal quarter), creating seasonal fluctuations in operating results and cash needs.