World Acceptance Corporation (NASDAQ:WRLD) Q2 2025 Earnings Conference Call October 25, 2024 10:00 AM ET
Company Participants
Chad Prashad - President & Chief Executive Officer
Johnny Calmes - Chief Financial & Strategy Officer
Conference Call Participants
John Rowan - Janney
Operator
Good morning, and welcome to World Acceptance Corporation's Second Quarter 2025 Earnings Conference Call. This call is being recorded. At this time, all participants have been placed in a listen-only mode.
Before we begin, the corporation has requested that I make the following announcement. The comments made during this conference call may contain certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the corporation's expectations and beliefs concerning future events. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties. Statements other than those of historical fact, as well as those identified by the words anticipate, estimate, intend, plan, expect, believe, may, will and should or any variation of the foregoing and similar expressions are forward-looking statements.
Additional information regarding forward-looking statements and any factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements are included in the paragraph discussing forward-looking statements in today's earnings press release and in the Risk Factors section of the corporation's most recent Form 10-K for the fiscal year ended March 31, 2024, and subsequent reports filed with or furnished to the SEC from time to time. The corporation does not undertake any obligation to update any forward-looking statements it makes.
At this time, it is my pleasure to turn the floor over to your host, Chad Prashad, President and Chief Executive Officer. Please go ahead.
Chad Prashad
Good morning, and thank you for joining our fiscal 2025 second quarter earnings call.
Before we open up for questions, there are a few areas I'd like to highlight. Over the last few years, Johnny and I have talked a good bit about rightsizing and derisking the portfolio, and the results are showing improved yields and performance throughout most of our portfolio today. In the second quarter of 2025, we experienced a 350-basis-points increase in our customer base, which compares to 100-basis-point increase year-over-year during the second quarter of last year, and sequentially, is an improvement of 50 basis points from the first quarter of this year.
Year-over-year, our average balance has decreased almost 6% from September 30, 2023. This is while our customer base has actually increased compared to September 30, 2023. We worked diligently to regrow our customer base over the last year with high-credit quality customers, while decreasing our overall average balance to ensure the right risk reward profile across our customer base and improve our yields and long-term customer profitability.