WRLD 8-K SEC Filing Analysis

Latest settled — T+5d

WRLD ▼ -0.43% at T+5d

SHORT call ✓ call won +0.43% · α vs SPY +0.90% · entry $166.93 → $166.21

Next anchor: T+20d in 11d

Currently $178.45 · -6.90% from $166.93 entry (call sign-flipped)

Entry anchored
May 26, 2026
via day open

T+1d

-3.25%

call +3.25% · α +3.80%

$161.51

settled 17d ago

T+5d

-0.43%

call +0.43% · α +0.90%

$166.21

settled 11d ago

T+20d

—

call — · α —

—

in 11d

T+60d

—

call — · α —

—

in 2mo

Price Chart

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Executive Summary

World Acceptance Corporation entered into a consent agreement with its lenders to temporarily relax its fixed charge coverage ratio covenant for three fiscal quarters ending in 2026. The covenant floor drops from 2.25x to 2.20x (Mar 31, 2026), 2.10x (Jun 30, 2026), and 2.15x (Sep 30, 2026), reverting to 2.25x thereafter. This signals that the company's earnings have weakened enough to necessitate a covenant waiver, which is a credit-negative event for a subprime lender.

Actionable Insight

The covenant waiver signals near-term earnings pressure. Monitor the next 10-Q for fixed charge coverage details. If the company breaches the temporarily lowered covenant or fails to restore the ratio by December 2026, credit downgrade risk increases materially.

Key Facts

Fixed charge coverage ratio covenant lowered from 2.25x to 2.10x for June 2026 quarter
Temporary waiver covers quarters ending March, June, and September 2026
Consent fee of 0.03% of aggregate commitments paid to lenders
No event of default currently exists, per company representation
Covenant reverts to original 2.25x threshold starting Dec 31, 2026

Financial Impact

Covenant relaxation by 0.05x-0.15x across three quarters, suggesting earnings coverage erosion

fixed charge coverage rationet income available for fixed charges

Risk Factors

Further earnings deterioration could lead to additional covenant breaches
Credit rating downgrade potential if ratio does not recover
Higher borrowing costs or reduced access to credit facility if defaults re-emerge

Market Snapshot

Exchange

Nasdaq

Sector

Personal Credit Institutions

Analyst Consensus

0% bullish (6 analysts)

Documents Analyzed

This report is based on 5 SEC documents filed with EDGAR.

Document	Accession Number
8-K Filing (Primary)	0000108385-26-000011
Document: consentandlimitedmodificat.htm	0000108385-26-000011
Document: 0000108385-26-000011-index-headers.html	0000108385-26-000011
Document: 0000108385-26-000011-index.html	0000108385-26-000011
Document: 0000108385-26-000011.txt	0000108385-26-000011

3 reports for WRLD

T+1T+5T+20T+60

Filters

Reports for WRLD — sortable, filterable
	Type				Now
Jun 5, 2026 7d ago	10-K/A NEUTRAL ★ 1/10	$167.80 awaiting T+1	awaiting T+1	—	$178.45 (+6.35%)
Jun 4, 2026 8d ago	8-K NEUTRAL ★ 3/10	$167.80 $167.30	▼ −0.30%	▲ +2.30%	$178.45 (+6.35%)
May 26, 2026 17d ago	8-K BEARISH ★ 5/10	$166.93 $161.51	▲ +3.25%	▲ +3.80%	$178.45 (−6.90%)

US Market Status

Market Closed — Opens Mon (50h 46m)

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