What World Acceptance Corp. told the SEC could break it.

World Acceptance finances its operations, acquisitions and branch expansion through a combination of cash flow and external funding, principally a revolving credit facility whose restrictions also govern its share-repurchase capacity ($12.2M remaining); reduced access to or tightening of this facility, or higher interest costs, would constrain its lending capacity and growth.

“The Company has historically financed and continues to finance its operations, acquisitions and branch expansion through a combination o”

World Acceptance's customers are primarily non-prime borrowers who have historically been more likely than prime borrowers to be hurt by adverse macro-economic factors — general inflation, tariffs and retaliatory tariffs, unemployment, volatile interest rates and energy costs — and installment-loan interest and fees are 82.9% of total revenue; a deterioration in non-prime borrower finances would raise delinquencies and charge-offs and pressure earnings.

“many of our customers are primarily non-prime borrowers, who have historically been more likely to be affected by adverse macro-economic factors than prime borrowers.”

World Acceptance's small-loan portfolio is geographically concentrated: gross loans receivable within its four largest states accounted for approximately 51% of the total balance as of March 31, 2026 (and 2025/2024), with over 100 branches each in Texas and Georgia out of 1,009 branches across 16 states; adverse economic conditions or unfavorable regulatory/rate changes in those key states would disproportionately affect loan demand and credit losses.

“As of March 31, 2026, 2025, and 2024, gross loan receivable within the Company's four largest states accounted for approximately 51 % of the Company's gross loans receivable balance.”

World Acceptance's ability to operate and expand depends on consumer-finance laws and regulations that let it lend profitably and on obtaining state licenses and approvals; states impose rate/fee limits, per-branch minimum capital requirements and acquisition approvals (e.g., Texas requires Consumer Credit Commissioner approval to acquire >10% of a consumer-finance company's stock, and a Louisiana statute restricts control changes), and federal consumer-protection regimes (CFPB rules against unfair, deceptive and abusive practices and discriminatory lending) could change adversely or bring enforcement.

“its ability to expand its operations in 5 Table of Contents existing or new states is dependent upon, among other things, laws and regulations that permit the Company to operate its business profitably and its ability to obtain necessary regulatory approvals and licenses.”