WRLD · World Acceptance
Conviction · Low · more likely to lag the S&P 500 over the next three months
Wrong if: a daily close above $164.11
Note written ·
Price against the kill line
15.8% clear of its kill line on the 13 November 2026 close.
How to read this
This note expects the shares to lag the market, so its kill line sits above the price: a close above the red mark would prove the view wrong. Prices run from low on the left to high on the right. The dot is where the stock closed on 13 November 2026, left of the mark while it is below the line; a dot right of the mark has closed through it.
The scale is stretched near the line, so close calls are easy to see. More than 8% from the line, the stock reads well clear, with a hollow dot to show the figure is off the drawn scale.
The kill line is the research note's own test. The portfolio sells on business facts, not on a price. How the portfolio decides
Three months against the kill line
Daily closes, to . Red: the kill line, a daily close above $164.11, on record since 11 November 2026. The shares are down 27.3% since the close; the S&P 500 is down 2.1% over the same sessions. Figures in the note can cover a different window.
Kill line
A daily close above $164.11, which would put the shares back near their pre-report level of 22 October 2026 and show them leading the S&P 500. December-quarter revenue above $139.2 million with delinquency below September's 18.9% and 5.4% would also show it.
Research onlyNot in the portfolio.
Key figures from the filings · Financials
Quarter to 30 September 2026, filed 9 November 2026; valuation at the 13 November 2026 close
- Revenue, latest quarter ($M)
- 139
- Revenue, change on a year (%)
- +3.2
- Operating margin (%)
- 8.4
- Free cash flow, four quarters ($M)
- 279
- Net cash, cash less debt ($M)
- −584
- Price to earnings (×)
- 12.4
- Enterprise value to sales (×)
- 2.0
- Enterprise value to operating income (×)
- 18.7
All filed numbers
What World Acceptance reports to the SEC in its quarterly and annual filings. Each group states its period and filing date once; a figure dated otherwise says so. Built from the filings known on .
| Quarter to | Revenue ($M) | On a year (%) | Operating margin (%) |
|---|---|---|---|
| first filed | 139 | +3.2 | 8.4 |
| first filed | 139 | +4.8 | 5.7 |
| first filed | 176 | +7.5 | 25.5 |
| first filed restated | 142 | +1.9 | −0.4 |
| first filed restated | 135 | +2.4 | −1.0 |
| first filed restated | 133 | +2.3 | 1.7 |
| Pre-tax income ($M) | 11.7 |
| Net income ($M) four quarters: 49.5 | 8.8 |
| Diluted shares, change on a year (%) against the quarter to 30 September 2025 | −10.5 |
| Operating cash flow ($M) | 283 |
| Capital spending ($M) | 4.5 |
| Free cash flow ($M) | 279 |
| Cash and short-term investments ($M) | 8.3 |
| Debt ($M) long-term debt | 592 |
| Net cash, cash less debt ($M) | −584 |
| Deferred revenue ($M) +15.8% on a year | 3.1 |
| Backlog, orders not yet delivered ($M) | Not reported |
| Receivables ($M) | Not reported |
| Inventory ($M) | Not reported |
| Shareholders' equity ($M) | 349 |
| Market value ($M) | 613 |
| Enterprise value, market value plus net debt ($M) | 1,197 |
| Enterprise value to sales (×) | 2.0 |
| Enterprise value to operating income (×) | 18.7 |
| Price to earnings (×) | 12.4 |
| Price to book value (×) | 1.8 |
| Free-cash-flow yield (%) | 45.4 |
Short interest (FINRA, settled 15 October 2026, published 26 October 2026): 8.5% of shares outstanding sold short, 7.5 days of average trading to cover, −4.1% since the previous report.
| Window | Bought | Sold |
|---|---|---|
| 90 daysfrom | $0 | $15.7M |
| 12 monthsfrom | $0 | $44.9M |
The thesis
World Acceptance Corporation's shares are more likely to lag the S&P 500 over the next three months. The 23 October 2026 report showed delinquency rising from June and revenue flat with the prior quarter, and the shares have kept falling since. The fiscal third-quarter report, expected around 29 January 2027, shows whether the rise in delinquency was a pause or a reversal.
The company reported revenue of $139.2 million for the fiscal second quarter of 2027, up 3.2% from $134.8 million a year earlier and equal to the first quarter's $139.2 million. Loans 0–60 days past due were 18.9% at 30 September 2026, against 18.1% at 30 June 2026. Loans 61 or more days past due were 5.4%, against 5.2%. The recovery case rested on delinquency falling from quarter to quarter, and the report did not show that.
The shares closed at $136.30 on 12 November 2026. That is 40.1% below the 52-week intraday high of $227.68 on 30 June 2026, and the three-month price change is −30.0%. The company's 10-Q for the quarter was filed on 9 November 2026.
Bullish and bearish views on World Acceptance Corporation
The bull case on World Acceptance Corporation (WRLD), in brief: net income swung positive. The bear case: delinquency rose from the prior quarter.
Bull case
- Net income swung positive. Fiscal second-quarter GAAP net income was $8.8 million, or $1.92 per diluted share, against a net loss of $1.7 million a year earlier, per the company's 23 October 2026 release. The provision for credit losses fell to $46.0 million from $49.8 million.
- Delinquency is better than a year ago. Loans 0–60 days past due were 18.9% against 20.0% at 30 September 2025. Loans 61 or more days past due were 5.4% against 5.8%, per the same release.
- Underwriting has been loosened. The release says the company "loosened underwriting and expects to carefully increase new customer lending in the coming quarters." New-customer volume fell 18.1% from a year earlier to $51.2 million, a smaller decline than the 40.1% drop in the first quarter.
- Reserves and cash generation are building. The allowance for credit losses was $116.3 million at 30 September 2026, up from $112.0 million at 31 March 2026, and operating cash flow for the six months was $130.4 million, per the 10-Q filed 9 November 2026. Gross loans were $1.319 billion, up 0.3% from a year earlier.
- Buyback capacity remains. The board's 13 August 2026 authorization of up to $50.0 million had $25.0 million left at 30 September 2026, per the 10-Q. The company bought 133,199 shares, about 3.0% of shares outstanding, for roughly $25.0 million in the quarter.
Bear case
- Delinquency rose from the prior quarter. Loans 0–60 days past due went from 18.1% to 18.9%, and 61 or more days past due from 5.2% to 5.4%, between 30 June 2026 and 30 September 2026.
- Revenue did not grow from the prior quarter. Revenue of $139.2 million matched the first quarter. Growth from a year earlier slowed to 3.2% from 4.8%.
- Credit losses are higher than a year ago. Annualized net charge-offs were 17.6% of average net loans, up from 17.1% a year earlier, with $42.2 million charged off in the quarter, per the 23 October 2026 release.
- Large holders and directors sold after the report. SEC Form 4 filings show Prescott General Partners, a 10% owner, sold 88,324 shares at $169.83 on 28 October 2026. Director Ken R. Bramlett Jr. sold 3,797 shares at an average of $176.95 on 29 October 2026. Director Benjamin E. Robinson III sold 90 shares at $165.32 on 2 November 2026 under a Rule 10b5-1 plan.
- The buyback came from a large holder. The 133,199 shares were bought on 14 August 2026 at $187.69 from Prescott-managed entities, per the 10-Q and a Form 4 filed 18 August 2026. The reduction in share count was a negotiated purchase, not open-market demand.
- Borrowing is rising against thin cash. The revolving credit facility balance was $502.5 million at 30 September 2026, up from $443.9 million at 31 March 2026, while cash was $8.3 million, per the 10-Q.
- No numeric guidance. The release gives no revenue or earnings outlook. John L. Calmes Jr. has been chief executive since 21 September 2026 and has not given figures for the December quarter.
Price setup
The shares closed at $149.58 on 5 November 2026 and $149.08 on 6 November 2026. They then fell on four straight sessions: $145.40 on 9 November 2026, $139.94 on 10 November 2026, $139.30 on 11 November 2026 and $136.30 on 12 November 2026. The 10-Q was filed on 9 November 2026.
The last close is below both the 50-day average of $171.76 and the 200-day average of $164.21, as of 12 November 2026. The shares closed at $169.66 on 22 October 2026, the day before the fiscal second-quarter report.
The 52-week closing low is $115.57, set on 28 January 2026. The 52-week intraday high is $227.68, set on 30 June 2026. The three-month price change is −30.0% from the $194.75 close of 14 August 2026.
The market has priced in a failed credit recovery: the shares are down 30.0% over three months, with the fiscal second-quarter report and the 10-Q both already out.
Catalysts ahead
- ~29 January 2027 (est.): Fiscal third-quarter 2027 report for the quarter ending 31 December 2026. Shows whether delinquency returns to June's 18.1% and 5.2% or keeps rising from September's 18.9% and 5.4%, and whether revenue grows from $139.2 million.
What would change the view
A daily close above $164.11, which would put the shares back near their pre-report level of 22 October 2026 and show them leading the S&P 500. December-quarter revenue above $139.2 million with delinquency below September's 18.9% and 5.4% would also show it.
What it trades with
World Acceptance trades with US consumer lenders that serve borrowers with limited credit histories. Its results depend on household cash flow, state lending rules and the timing of tax refunds. They do not depend on the technology cycle.
The fiscal year ends 31 March. The January–March quarter is seasonally strongest, so one quarter's earnings should not be annualized.
The evidence, claim by claim (8)
- Fiscal second-quarter 2027 revenue was $139.2 million, up 3.2% from $134.8 million and equal to the first quarter; GAAP net income was $8.8 million ($1.92 per diluted share) versus a $1.7 million loss a year earlier. World Acceptance Form 8-K and earnings release, 23 October 2026 · as of
- Loans 0–60 days past due were 18.9% (20.0% a year earlier, 18.1% at 30 June 2026); loans 61 or more days past due were 5.4% (5.8% a year earlier, 5.2% at 30 June 2026). World Acceptance Form 8-K and earnings release, 23 October 2026 · as of
- Annualized net charge-offs were 17.6% of average net loans, up from 17.1% a year earlier; net charge-offs were $42.2 million. World Acceptance Form 8-K and earnings release, 23 October 2026 · as of
- New-customer loan volume was $51.2 million, down 18.1% from $62.4 million; gross loans were $1.319 billion, up 0.3%. World Acceptance Form 8-K and earnings release, 23 October 2026 · as of
- Allowance for credit losses was $116.3 million (from $112.0 million at 31 March 2026); revolving credit facility balance was $502.5 million (from $443.9 million); cash was $8.3 million; $25.0 million remained under the share repurchase authorization. World Acceptance Form 10-Q, filed 9 November 2026 · as of
- The company repurchased 133,199 shares at $187.69 for about $25.0 million from Prescott-managed entities on 14 August 2026. World Acceptance Form 10-Q filed 9 November 2026; SEC Form 4 filed 18 August 2026 · as of
- Prescott General Partners (10% owner) sold 88,324 shares at $169.83 on 28 October 2026; director Ken R. Bramlett Jr. sold 3,797 shares at an average of $176.95 on 29 October 2026. SEC Form 4 filings, 30 October 2026 · as of
- Director Benjamin E. Robinson III sold 90 shares at $165.32 on 2 November 2026 under a Rule 10b5-1 plan. SEC Form 4, 3 November 2026 · as of
Sources
- SEC EDGAR
- WORLD ACCEPTANCE CORP - Form 8-K - FY2026 · sec.gov ·
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