Shares of World Acceptance Corporation (WRLD) plunged 5.91% in pre-market trading on Wednesday following the release of its fourth quarter 2025 earnings report. The consumer finance company's stock decline comes amid mixed financial results and ongoing challenges in its loan portfolio.

World Acceptance reported a 4% year-over-year decrease in its outstanding ledger, which stood at $1.22 billion at the end of fiscal year 2025. Despite this decline, the company saw a 3.5% increase in its customer base, marking the first year of customer growth since fiscal year 2022. However, the average balance per customer decreased by 7.3%, continuing a trend from the previous year.

Investors appear to be concerned about the company's persistently high delinquency and charge-off rates. World Acceptance reported an annual charge-off rate of 17.5%, with management noting that approximately 125 to 150 basis points of this rate is due to the shrinking portfolio. The company's focus on new customer growth, which increased by 36% in the newest customer segment, has also contributed to higher delinquency rates, particularly in the 60- and 90-day buckets. While the company remains optimistic about its credit quality and customer growth strategy, the market seems to be reacting negatively to these ongoing credit challenges.