World Acceptance Corporation (NASDAQ: WRLD), a US consumer finance company, posted a substantial year-over-year increase in its first-quarter net profit for fiscal year 2027, driven by revenue growth and improved credit quality.

For the quarter ending June 30, 2026, the company reported total revenue of $139.2 million, a 4.8% increase from the same period last year. Net profit reached $6.1 million, or $1.33 per diluted share, a significant rise from the $1.6 million reported in the prior year. The quarter's results included $4.6 million in pre-tax expenses related to a CEO transition. Excluding this item, adjusted net profit was $9.7 million, with adjusted diluted earnings per share at $2.12.

Regarding its asset portfolio, total outstanding loans at the end of the quarter were $1.29 billion, a 2.3% increase year-over-year. Borrowing from existing customers increased, with loan volume from refinancing clients rising 4.3% year-over-year. However, new customer loan volume fell 40.1% compared to the previous year, primarily due to the company's earlier tightening of loan approval standards to control risk.

Credit quality continued to improve. The proportion of loans that were 0-60 days past due decreased to 18.1% from 19.2% a year earlier, while the share of loans 61 days or more past due fell to 5.2% from 5.4%. The provision for credit losses dropped to $43.8 million from $50.5 million in the prior year, and net charge-offs also declined to $43.3 million from $44.8 million.

The company stated it has relaxed its loan approval standards and plans to prudently expand its new customer loan portfolio in the coming quarters.