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Item 8. Financial Statements and Supplementary Data

2026-06-04 compared with 2025-05-22 · 455 added, 212 removed, 983 unchanged (40% of the section changed)

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS

Cash and cash equivalents $ 9,730,296 $ 11,839,460

Cash $ 6,071,077 $ 4,714,459

Gross loans receivable 1,278,988,323 1,225,635,918

2 unchanged sentences

Loans receivable, net 841,876,807 812,968,685

Restricted cash

23,303,453 5,015,837

Income taxes receivable 2,420,571 —

8 unchanged sentences

LIABILITIES & SHAREHOLDERS' EQUITY

Senior notes payable $ 262,451,475 $ 223,419,132

Revolving credit facility

$ 443,935,446 $ 262,451,475

Warehouse facility

143,293,355 —

Senior unsecured notes payable, net — 184,418,211

2 unchanged sentences

Accounts payable and accrued expenses 37,996,315 42,365,032

Deferred revenue (contract liability) 3,925,529 3,349,571

Total liabilities 703,115,353 571,496,754

8 unchanged sentences

Total liabilities and shareholders' equity $ 1,054,120,644 $ 1,008,488,241

The following table presents the assets and liabilities of our consolidated VIE.

These assets and liabilities are included in the Consolidated Balance Sheets presented above.

Refer to Note 4 to the Consolidated Financial Statements for additional information.

March 31, 2026 March 31, 2025 1

Gross loans receivable $ 228,285,593 $ —

Unearned interest, insurance and fees ( 59,193,501 ) —

Allowance for credit losses ( 18,563,362 ) —

Loans receivable, net 150,528,730 —

Restricted cash 17,636,232 —

Other assets, net 2,900,036 —

Total assets $ 171,064,998 $ —

Warehouse facility $ 143,293,355 $ —

Accounts payable and accrued expenses 855,839 —

Total liabilities $ 144,149,194 $ —

See accompanying notes to Consolidated Financial Statements.

1 Column is intentionally left blank as the warehouse facility was established in September of 2025.

CONSOLIDATED STATEMENTS OF OPERATIONS

30 unchanged sentences

Common stock repurchases ( 858,642 ) — ( 133,588,153 ) ( 133,588,153 )

Stock-based compensation (reversal) related to restricted stock, net of forfeitures and cancellations ($ 2,676,053 )

Stock-based compensation related to restricted stock, net of forfeitures and cancellations ($ 9,064,469 )

114,526 9,260,888 — 9,260,888

Stock-based compensation related to stock options — 1,017,145 — 1,017,145

— 607,275 — 607,275

Net income — — 34,586,024 34,586,024

4 unchanged sentences

Proceeds from exercise of stock options, net of cancellations 25,268 2,358,547 — 2,358,547

34,649 2,867,974 — 2,867,974

Common stock repurchases ( 400,617 ) — ( 54,681,676 ) ( 54,681,676 )

1 unchanged sentence

( 189,304 ) ( 22,972,296 ) — ( 22,972,296 )

Stock-based compensation (reversal) related to stock options

— ( 3,754,209 ) — ( 3,754,209 )

Stock-based compensation related to stock options — 607,275 — 607,275

Net income — — 89,242,722 89,242,722

5 unchanged sentences

Common stock repurchases ( 295,201 ) ( 36,505,861 ) ( 36,505,861 )

Stock-based compensation related to restricted stock, net of cancellations ($ 2,543,001 )

( 51,158 ) 4,067,525 — 4,067,525

Stock-based compensation related to stock options

Stock-based compensation (reversal) related to restricted stock, net of cancellations ($ 2,823,774 )

( 31,865 ) ( 752,652 ) — ( 752,652 )

Cumulative effect of adoption of ASC 326 — — ( 1,880,346 ) ( 1,880,346 )

Stock-based compensation (reversal) related to stock options — ( 3,754,209 ) — ( 3,754,209 )

Net income — — 77,046,344 77,046,344

9 unchanged sentences

Accrued unearned interest ( 2,290,244 ) 1,253,389 ( 1,131,985 )

Gain on extinguishment of senior unsecured notes payable ( 982,791 ) ( 1,631,964 ) ( 1,831,277 )

Loss (gain) on extinguishment of senior unsecured notes payable 3,703,866 ( 982,791 ) ( 1,631,964 )

Amortization of deferred loan costs 14,931,642 14,082,368 14,216,781

1 unchanged sentence

Amortization of discount on loans acquired in an asset purchase ( 358,841 ) ( 596,966 ) —

( 596,966 ) — —

Provision for credit losses 188,602,351 169,215,395 156,973,220

Depreciation 5,801,853 6,325,036 6,668,557

Amortization of finance leases — — 204,552

Gain on asset acquisitions, net of income tax — — ( 112,683 )

Loss (gain) on sale of property and equipment ( 60,087 ) ( 57,100 ) 11,837

Gain on sale of property and equipment ( 376,948 ) ( 60,087 ) ( 57,100 )

Deferred income tax expense (benefit) ( 7,089,590 ) ( 2,519,983 ) 10,633,533

4 unchanged sentences

Income taxes payable and receivable ( 2,643,313 ) 3,313,971 ( 5,623,995 )

Deferred revenue (contract liability) 575,958 670,429 402,954

Accounts payable and accrued expenses ( 5,535,241 ) ( 12,095,278 ) 3,112,948

1 unchanged sentence

Cash flows from investing activities:

Increase in loans receivable, net ( 130,669,869 ) ( 127,576,429 ) ( 152,154,050 )

Originations of loans receivable ( 1,451,586,874 ) ( 1,328,023,925 ) ( 1,316,277,982 )

Repayments of loans receivable 1,221,793,844 1,197,354,056 1,188,701,553

Cash paid for acquisitions, primarily loans — ( 18,947,294 ) ( 1,978,815 )

3 unchanged sentences

Cash flow from financing activities:

Borrowings from senior notes payable 416,597,875 305,700,964 313,862,948

Payments on senior notes payable ( 377,565,532 ) ( 390,192,656 ) ( 402,924,870 )

Borrowings from revolving credit facility 769,548,024 416,597,875 305,700,964

Payments on revolving credit facility ( 588,064,053 ) ( 377,565,532 ) ( 390,192,656 )

Payments for extinguished senior unsecured notes payable ( 188,290,771 ) ( 87,990,854 ) ( 14,043,159 )

Debt issuance costs associated with senior unsecured notes payable — — ( 19,656 )

Borrowing on warehouse facility 232,900,000 — —

Payments on warehouse facility ( 89,606,645 ) — —

Payments for debt extinguishment costs ( 26,450 ) ( 12,500 ) ( 28,125 )

Debt issuance costs associated with senior notes payable ( 37,982 ) ( 591,716 ) ( 1,139,008 )

Debt issuance costs associated with revolving credit facility ( 2,019,306 ) ( 37,982 ) ( 591,716 )

Debt issuance costs associated with warehouse facility ( 2,524,494 ) — —

Proceeds from exercise of stock options 2,737,900 2,358,547 2,867,974

1 unchanged sentence

Repurchase of common stock ( 132,421,630 ) ( 54,195,564 ) ( 36,204,531 )

Repayment of finance lease — — ( 80,067 )

Net cash used in financing activities ( 6,831,894 ) ( 103,522,063 ) ( 135,315,023 )

( 103,522,063 ) ( 135,315,023 ) ( 113,697,373 )

Net change in cash and cash equivalents ( 2,109,164 ) ( 4,669,475 ) ( 2,727,387 )

Cash and cash equivalents at beginning of year 11,839,460 16,508,935 19,236,322

Cash and cash equivalents at end of year $ 9,730,296 $ 11,839,460 $ 16,508,935

Net change in cash and restricted cash 19,644,234 ( 2,109,164 ) ( 4,669,475 )

Cash and restricted cash at beginning of year 9,730,296 11,839,460 16,508,935

Cash and restricted cash at end of year $ 29,374,530 $ 9,730,296 $ 11,839,460

Supplemental Disclosures:

Interest paid during the year $ 47,400,700 $ 44,691,237 $ 48,836,325

Income taxes paid during the year $ 3,654,628 $ 8,952,124 $ 10,783,143

Finance lease ROU assets, net transferred to property and equipment, net $ — $ — $ 402,960

Non-cash excise tax on stock repurchases $ 1,166,523 $ 486,112 $ 301,330

The following table reconciles cash and restricted cash from the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows above:

March 31, 2026 March 31, 2025 March 31, 2024

Cash $ 6,071,077 $ 4,714,459 $ 5,174,104

Restricted cash 23,303,453 5,015,837 6,665,356

Total $ 29,374,530 $ 9,730,296 $ 11,839,460

See accompanying notes to Consolidated Financial Statements.

11 unchanged sentences

The Consolidated Financial Statements include the accounts of World Acceptance Corporation and its wholly-owned subsidiaries (the “Company”).

Subsidiaries consist of operating entities in various states and WAC Insurance Company, Ltd.

Subsidiaries consist of operating entities in various states, WFC Receivables I, LLC (an SPE) and WAC Insurance Company, Ltd.

(a captive reinsurance company).

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Such reclassifications have no impact on previously reported net income or shareholders' equity.

During the fiscal year ended March 31, 2026, the Company concluded that one of its cash flow statement line items within investing activities should be broken out to reflect cash receipts and cash payments on a gross basis, rather than net.

As a result, the increase in loans receivable, net line item has been updated in the Consolidated Statements of Cash Flows for the years ended 2026, 2025 and 2024 to reflect a gross presentation.

However, this presentation change had no impact on previously reported cash flows as the change was limited to investing activities.

Additionally, due to the Warehouse facility, our restricted cash balance as of December 31, 2025 became large enough to require a separate line item in the Consolidated Balance Sheets.

As a result, the Company reclassed restricted cash as of March 31, 2025, previously reported in the Cash line item, for comparability to conform to the current period presentation.

This presentation change had no impact on previously reported total assets, net income or shareholders' equity.

Segment Reporting

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Significant segment expenses are consistent with those presented in the Consolidated Statements of Operations, and segment assets are consistent with those presented in the Consolidated Balance Sheets.

Variable Interest Entities

On September 29, 2025, the Company and its wholly-owned subsidiary, WFC Receivables I, LLC, an SPE (the “Borrower” or the "Warehouse"), entered into a Credit Agreement (the “Credit Agreement”), by and among the Company, as Servicer, the Borrower, the lenders and agents from time to time parties thereto, Atlas Securitized Products Administration, L.P., as administrative agent for the lenders, Systems & Services Technologies, Inc., a Delaware corporation, as backup servicer, and Wilmington Trust, National Association, a national banking association, as securities intermediary.

The Credit Agreement is solely secured by eligible loans receivable that were directly originated by certain of the Company's subsidiaries.

The Company transfers these pools of eligible loans receivable to the Warehouse to secure debt for general funding purposes.

The Company continues to service the loans receivable transferred to the Warehouse.

The Company makes certain representations and warranties about the quality and nature of the loans receivable transferred to the Warehouse.

The Credit Agreement requires the Company to repurchase the loans receivable in certain circumstances, including circumstances in which the representations and warranties made by the Company concerning the quality and characteristics of the loans receivable are inaccurate.

The Warehouse has the limited purpose of acquiring loans receivable to be pledged as collateral for funding, in addition to holding and making payments on the related debt.

Loans receivable transferred to the Warehouse are legally isolated from the Company and its affiliates, as well as the claims of the Company’s and its affiliates’ creditors.

Further, any assets of the Warehouse are owned by the Warehouse and are the only source of funds for the related debt and are not available to satisfy the debts or other obligations of the Company or any of its affiliates.

The lenders to the Warehouse generally only have recourse to the assets pledged to the Warehouse and do not have recourse to the general credit of the Company.

The Warehouse is considered a VIE under ASC 810, Consolidation, as it lacks independent, sufficient equity to fund its activities and because the equity holders lack the power to direct the activities that most significantly affect the Warehouse's economic performance.

As such, the Warehouse is consolidated into the financial statements of its primary beneficiary.

The Company is considered to be the primary beneficiary of the Warehouse, because, through its role as servicer of the loans receivable, it has (i) the power to direct activities that most significantly impact the economic performance of the Warehouse and (ii) the obligation to absorb losses or receive benefits of the Warehouse that could potentially be significant to the Warehouse, primarily through its economic interest in the pledged loans receivable and residual cash flows.

The Company will continue to monitor its involvement and reassess its status as the primary beneficiary.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less from the date of original issuance to be cash equivalents.

As of March 31, 2025 and 2024, the Company had $ 5.0 million and $ 6.7 million, respectively, in restricted cash associated with its captive insurance subsidiary that reinsures a portion of the credit insurance sold in connection with loans made by the Company.

There were no cash equivalents for the years ended March 31, 2026 and 2025 .

Restricted Cash

Restricted cash includes cash for which the Company’s ability to withdraw or use funds is contractually limited.

The Company’s restricted cash consists of cash reserves associated with its captive insurance subsidiary that reinsures a portion of the credit insurance sold in connection with loans made by the Company, and cash restricted for debt

servicing of the Company’s Warehouse facility.

As of March 31, 2026 and 2025, the Company had $ 23.3 million and $ 5.0 million respectively, in restricted cash.

Loans and Interest and Fee Income

20 unchanged sentences

Net unamortized deferred origination costs were $ 5.9 million and $ 5.5 million as of March 31, 2026 and 2025, respectively.

The Company recognizes interest and fee income using the interest method.

The Company recognizes interest and fee income using the interest method in accordance with ASC 310.

Charges for late payments are recognized in interest and fee income when collected.

22 unchanged sentences

For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a lease.

Lease liability is measured as of the lease commencement date based on the present value of the remaining minimum lease payments.

The Company uses a discount rate that is based on the Company's incremental borrowing rate on its senior notes payable when evaluating leases.

Lease liability is measured as of the lease commencement date based on the present value of the remaining minimum lease payments using a discount rate that is based on the Company's incremental borrowing rate on its revolving credit facility.

Refer to Note 11 to the Consolidated Financial Statements for further discussion of the discount rate.

4 unchanged sentences

Variable lease costs are payments that vary because of changes in facts or circumstances occurring after a lease's commencement date, other than the passage of time, and can include expenses such as common area maintenance, utilities, and repairs and maintenance.

Other assets include cash surrender value of life insurance policies, HTC investments, prepaid expenses, debt issuance costs related to the senior notes payable, and other deposits and receivables.

Other assets include cash surrender value of life insurance policies, HTC investments, prepaid expenses, debt issuance costs related to the revolving credit facility and the warehouse facility, and other deposits and receivables.

Debt Issuance Costs

In accordance with ASC 835, debt issuance costs related to the senior unsecured notes payable are presented as a direct deduction from its carrying value in the Consolidated Balance Sheets.

Unamortized debt issuance costs related to the senior unsecured notes payable as of March 31, 2025 and 2024 were $ 1.0 million and $ 2.4 million, respectively.

As the Company intends to pay down the senior notes payable throughout the contractual arrangement, debt issuance costs related to this arrangement are presented as an asset within Other assets in the Consolidated Balance Sheets as discussed above.

Unamortized debt issuance costs related to the senior notes payable as of March 31, 2025 and 2024 were $ 0.6 million and $ 1.1 million, respectively.

There were no unamortized debt issuance costs related to the senior unsecured notes payable as of March 31, 2026.

As of March 31, 2025, there were $ 1.0 million unamortized debt issuance costs related to the senior unsecured notes payable.

As the Company intends to pay down the revolving credit facility and the warehouse facility throughout their contractual arrangements, debt issuance costs related to these arrangements are presented as an asset within Other assets in the Consolidated Balance Sheets.

Unamortized debt issuance costs related to the revolving credit facility as of March 31, 2026 and 2025 were $ 1.9 million and $ 0.6 million, respectively.

Unamortized debt issuance costs related to the warehouse facility as of March 31, 2026 and 2025 were $ 2.1 million and $ 0.2 million, respectively.

Amortization of debt issuance costs is included as a component of Interest expense in the Consolidated Statements of Operations.

Intangible Assets and Goodwill

23 unchanged sentences

The Company’s financial instruments for the periods reported consist of the following:

cash and cash equivalents, loans receivable, senior notes payable, and senior unsecured notes payable.

cash, restricted cash, loans receivable, net, a revolving credit facility, a warehouse facility, and a senior unsecured notes payable.

Loans receivable are originated at prevailing market rates and have an average life of up to twelve months.

Given the short-term nature of these loans, they are continually repriced at current market rates.

The Company’s senior notes payable has a variable rate based on a margin over SOFR and reprices with any changes in SOFR.

The Company’s revolving credit facility and warehouse facility have a variable rate based on a margin over SOFR and reprices with any changes in SOFR.

The fair value of the senior unsecured notes payable is estimated based on quoted prices in markets that are not active.

3 unchanged sentences

The Company recognizes insurance income using the Rule of 78s method for credit life (decreasing term), credit accident and health, unemployment insurance and the Pro Rata method for credit life (level term) and credit property.

The Company has a wholly-owned, captive insurance subsidiary that reinsures a portion of the credit insurance sold in connection with loans made by the Company.

Certain coverages currently sold by the Company on behalf of the unaffiliated insurance carrier are ceded by the carrier to the captive insurance subsidiary, providing the Company with an additional source of income derived from the earned reinsurance premiums.

Insurance premiums are ceded to the reinsurance subsidiary as written, and revenue is recognized over the life of the related insurance contracts.

For the years ended March 31, 2026, 2025, and 2024, the amount of net written premiums by the reinsurance subsidiary were $ 5.0 million, $ 6.1 million, and $ 7.2 million, respectively, and the amount of earned premiums were $ 6.0 million, $ 7.1 million, and $ 8.2 million, respectively.

The Company maintains a cash reserve for claims in an amount determined by the ceding company.

As of March 31, 2026 and 2025, the required cash reserves were $ 3.0 million and $ 4.0 million, respectively, which are included as a component of Restricted cash in the Consolidated Balance Sheets.

Tax Return Preparation Revenue

The Company offers income tax return preparation services to its customer base and to others.

Revenue associated with tax return preparation services is recognized in accordance with ASC 606.

Contracts associated with these services include two performance obligations, tax return preparation services and refund assurance services, as each service is capable of being distinct and is separately identifiable in the contract.

Tax return preparation services are recognized at a point in time in the period the return is filed, and refund assurance services are recognized ratably over time as the performance obligation is met (performance period is approximately 36 months).

Specifically, the Company's Refund Assurance Plan ("RAP") provides enrolled customers with (a) audit representation before the IRS and (b) reimbursement of verified tax preparation errors up to $5,000 for a three-year coverage period beginning at the IRS acceptance date for each return and ending on April 15 three years after the applicable filing deadline.

Refund assurance fees create a contract liability at the time of funding, which is presented as Deferred revenue (contract liability) in the Company's Consolidated Balance Sheets.

The contract liability is released ratably as the performance period elapses.

Revenue recognized during the year ended March 31, 2026 that was included in the Deferred revenue (contract liability) balance at March 31, 2025 was $ 1.7 million.

The following is a summary of the changes in Deferred revenue (contract liability) for the years ended March 31, 2026, 2025, and 2024:

For the years ended March 31,

2026 2025 2024

Balance at beginning of period $ 3,349,571 $ 2,679,142 $ 2,276,188

RAP fees received and deferred during year 2,226,183 2,058,457 1,644,021

Revenue recognized during year ( 1,650,225 ) ( 1,388,028 ) ( 1,241,067 )

Balance at end of period 3,925,529 3,349,571 2,679,142

Non-filing Insurance

Non-filing insurance premiums are charged to certain customers on certain loans in lieu of recording and perfecting the Company's security interest in the assets pledged.

The premiums are passed through to a third-party insurance company, and any recoveries from customers after a receipt of an insurance payment are remitted to the third-party

insurance company.

The premiums are passed through to a third-party insurance company, and any recoveries from customers after a receipt of an insurance payment are remitted to the third-party insurance company.

Neither non-filing insurance premiums nor recoveries are reflected in the accompanying Consolidated Statements of Operations (see Note 10 to the Consolidated Financial Statements).

24 unchanged sentences

The Company accounts for forfeitures as they occur.

The Company issues available common shares upon the exercise of an option award.

At March 31, 2026, the Company had several share-based employee compensation plans, which are described more fully in Note 14 to the Consolidated Financial Statements.

1 unchanged sentence

On February 11, 2026, the Board of Directors authorized the Company to repurchase up to $ 50.0 million of the Company’s outstanding common stock, inclusive of the amount that remains available for repurchase under prior repurchase authorizations.

As of March 31, 2025, the Company had $ 0.4 million in aggregate remaining repurchase capacity under its current share repurchase program, and on April 30, 2025, the Board of Directors of the Company approved a share repurchase program authorizing the Company to repurchase up to $ 20.0 million of its outstanding common stock, inclusive of any amount that remains available for repurchase under this prior repurchase authorization.

The timing and actual number of shares of common stock repurchased will depend on a variety of factors, including the stock price, corporate and regulatory requirements, restrictions under the revolving credit facility and other market and economic conditions.

As of March 31, 2026, the Company had $ 12.2 million in aggregate remaining repurchase capacity under its current share repurchase program.

The Company expects to repurchase shares in fiscal 2027;

however, the timing and actual number of shares of common stock repurchased will depend on a variety of factors, including the stock price, corporate and regulatory requirements, restrictions under the revolving credit facility and other market and economic conditions.

The Company’s stock repurchase program may be suspended or discontinued at any time.

On September 3, 2025, in accordance with its share repurchase program, the Company, after approval by the Audit and Compliance Committee, repurchased 347,064 shares of its common stock for $ 60.0 million in a privately negotiated transaction from certain affiliates of Prescott General Partners, LLC, who, along with its affiliates, beneficially own approximately 46.3 % of the Company's common stock as of March 31, 2026.

The price per share was $ 172.88 , which was the closing market price at September 3, 2025.

On February 18, 2025, in accordance with its share repurchase program, the Company, after approval by the Audit and Compliance Committee, repurchased 162,712 shares for $ 24.0 million from Prescott Associates L.P.

in a privately negotiated transaction.

Prescott Associates L.P.

is an affiliate of Prescott General Partners, LLC, who, along with its affiliates, beneficially own approximately 47.2 % of the Company's common stock.

The $ 147.50 price per share was based upon the prevailing market rate at the time, and the closing market rate at February 18, 2025 was $ 147.16 .

The Company continues to believe stock repurchases are a viable component of the Company’s long-term financial strategy and an excellent use of excess cash when the opportunity arises.

Additional share repurchases can be made subject to compliance with, among other things, applicable restricted payment covenants under the revolving credit facility and the Notes.

Additional share repurchases can be made subject to compliance with, among other things, applicable restricted payment covenants under the revolving credit facility.

As of March 31, 2026, subject to further approval from our Board of Directors, we could repurchase approximately $ 59.9 million of shares under the terms of our debt facilities.

5 unchanged sentences

During the year ended March 31, 2026, the Company operated in sixteen states in the United States.

For fiscal years ended March 31, 2025, 2024, and 2023, gross loan receivable within the Company's four largest states accounted for approximately 51 % of the Company's gross loans receivable balance.

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.

The Company maintains amounts in bank accounts which, at times, may exceed federally insured limits.

5 unchanged sentences

Recently Adopted Accounting Standards

Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures , which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024.

The adoption of ASU 2023-07 on March 31, 2025 expanded our segment reporting disclosures, but had no other impact on the Company’s Consolidated Financial Statements.

Recently Issued Accounting Standards Not Yet Adopted

Improvements to Income Tax Disclosures

3 unchanged sentences

The amendments are effective for annual periods beginning after December 15, 2024.

Early adoption is permitted

for annual financial statements that have not yet been issued or made available for issuance.

Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted.

The Company adopted ASU 2023-09 on a retrospective basis effective March 31, 2026.

The adoption of this ASU expanded our income tax disclosures, but had no other effect on the Company's consolidated financial statements.

Recently Issued Accounting Standards Not Yet Adopted

Purchased Loans

In November 2025, the FASB issued ASU 2025-08, Financial Instruments-Credit Losses (Topic 326):

Purchased Loans , which expands the population of acquired financial assets subject to the gross-up approach in Topic 326.

In accordance with the amendments in this update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned”, which is defined as either 1) Non-PCD loans that are obtained in a business combination or 2) Non-PCD loans that (a) are obtained in an asset acquisition or upon consolidation of a variable interest entity that is not a business and (b) are acquired more than 90 days after their origination date by a transferee that was not involved in their origination, are considered purchased seasoned loans and should be accounted for using the gross-up approach at acquisition.

The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

The amendments should be applied prospectively to loans that are acquired on or after the initial application date.

Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance.

Management is currently evaluating this ASU to determine its impact on the Company's consolidated financial statements and related disclosures.

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We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on the Company's Consolidated Financial Statements and related disclosures as a result of future adoption.

(2) Revision of Previously Issued Consolidated Financial Statements

During fiscal 2026, the Company identified an error in the timing of revenue recognition for its Refund Assurance Plan ("RAP") fees associated with the Company's tax preparation services.

The Company had historically recognized RAP fees as revenue at the time the related tax return was prepared.

The Company has determined that under ASC 606, Revenue from Contracts with Customers , these fees should be recognized ratably over the 36-month coverage period of each plan, as the related performance obligation is a stand-ready obligation satisfied over time.

Accordingly, the Company should recognize a contract liability for the unearned portion of RAP fees, which is recognized as revenue ratably over the coverage period.

The error affected previously issued financial statements for the years ended March 31, 2025 and 2024, and prior periods.

The Company evaluated the error in accordance with SEC Staff Accounting Bulletin No.

99, Materiality , and SEC Staff Accounting Bulletin No.

108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , considering both quantitative and qualitative factors, and concluded that the error was not material, individually or in the aggregate, to any previously issued financial statements.

The Company has revised the prior period comparative financial statements presented herein to reflect the correction for comparability purposes.

The cumulative effect of the error for periods prior to fiscal 2024 was $ 1.7 million, which has been recorded as an adjustment to opening retained earnings as of April 1, 2023.

Because the error is not material to any previously issued financial statements, no restatement to any previously filed annual or quarterly report is required.

The effect of the revision on the Company's previously issued consolidated financial statements for each financial statement line item affected is presented in the tables below:

Effect on Consolidated Balance Sheets

As of March 31, 2025

As Reported Increase (Decrease)

Deferred income taxes, net $ 33,291,074 $ 860,594 $ 34,151,668

Total assets 1,007,627,647 860,594 1,008,488,241

Deferred revenue (contract liability) — 3,349,571 3,349,571

Total liabilities 568,147,183 3,349,571 571,496,754

Retained earnings 173,053,986 ( 2,488,977 ) 170,565,009

Total shareholders' equity 439,480,464 ( 2,488,977 ) 436,991,487

Total liabilities and shareholders' equity 1,007,627,647 860,594 1,008,488,241

Effect on Consolidated Statements of Operations

For the years ended March 31,

As Reported Decrease

As Revised As Reported Decrease

Insurance and other income, net 1 $ 99,750,948 $ ( 670,429 ) $ 99,080,519 $ 104,685,541 $ ( 402,954 ) $ 104,282,587

Total revenues 564,841,465 ( 670,429 ) 564,171,036 573,213,402 ( 402,954 ) 572,810,448

Income before income taxes 111,985,377 ( 670,429 ) 111,314,948 99,407,736 ( 402,954 ) 99,004,782

Income tax expense 22,243,979 ( 171,753 ) 22,072,226 22,062,509 ( 104,071 ) 21,958,438

Net income 89,741,398 ( 498,676 ) 89,242,722 77,345,227 ( 298,883 ) 77,046,344

Net income per common share 16.54 ( 0.09 ) 16.45 13.45 ( 0.05 ) 13.40

Net income per diluted share 16.30 ( 0.09 ) 16.21 13.19 ( 0.05 ) 13.14

1 RAP fees are included within Insurance and other income, net.

No other revenue related line item is affected.

Effect on Consolidated Statements of Shareholders Equity

As of and for the years ended March 31,

As Reported Decrease As Revised As Reported Decrease

Opening retained earnings at March 31 $ 137,994,264 $ ( 1,990,301 ) $ 136,003,963 $ 97,154,898 $ ( 1,691,418 ) $ 95,463,480

Opening shareholders' equity at March 31 424,427,216 ( 1,990,301 ) 422,436,915 385,226,737 ( 1,691,418 ) 383,535,319

Net income 89,741,398 ( 498,676 ) 89,242,722 77,345,227 ( 298,883 ) 77,046,344

Ending retained earnings at March 31 173,053,986 ( 2,488,977 ) 170,565,009 137,994,264 ( 1,990,301 ) 136,003,963

Ending shareholders' equity 439,480,464 ( 2,488,977 ) 436,991,487 424,427,216 ( 1,990,301 ) 422,436,915

Retained Earnings Adjustment Summary

Pre-Tax Tax Effect After-Tax

Errors through fiscal 2023 - adjustment to opening retained earnings as of April 1, 2023 $ ( 2,276,188 ) $ 584,770 $ ( 1,691,418 )

Fiscal 2024 ( 402,954 ) 104,071 ( 298,883 )

Fiscal 2025 ( 670,429 ) 171,753 ( 498,676 )

Fiscal 2026 ( 575,958 ) 147,299 ( 428,659 )

Total $ ( 3,925,529 ) $ 1,007,893 $ ( 2,917,636 )

Effect on Consolidated Statements of Cash Flows

For the years ended March 31,

As Reported Increase (Decrease)

As Revised As Reported Increase (Decrease)

Cash flow from operating activities:

Net income $ 89,741,398 $ ( 498,676 ) $ 89,242,722 $ 77,345,227 $ ( 298,883 ) $ 77,046,344

Adjustments to reconcile net income to net cash provided by operating activities:

Change in accounts:

Deferred income tax expense (benefit) ( 2,348,230 ) $ ( 171,753 ) ( 2,519,983 ) 10,737,604 ( 104,071 ) 10,633,533

Deferred revenue (contract liability) — $ 670,429 670,429 — 402,954 402,954

Net cash provided by operating activities

254,163,602 $ — — 254,163,602 265,783,366 — 265,783,366

(3) Allowance for Credit Losses and Credit Quality Information

241 unchanged sentences

Unpaid Accrued Interest Reversed Against Interest Income

2026 2025 2024

Customer Tenure

8 unchanged sentences

Customer Tenure As of March 31, 2026 As of March 31, 2025 Interest Income

Interest Income

Fiscal 2026 Interest Income

Fiscal 2025 Interest Income

0 to 5 months $ 23,611,680 $ 19,169,040 $ 1,090,263 $ 791,235 $ 1,024,573

14 unchanged sentences

Balance at end of period $ 112,047,278 $ 103,347,129 $ 102,962,811

1 The Company saw a significant increase in charge-offs in fiscal 2023 primarily due to the higher proportion of NBs at the beginning of the fiscal year.

Additionally, NBs originated in fiscal 2022 performed worse than expected as a result of the rapid rise in inflation during Q4 of fiscal 2022.

Fiscal 2024 saw a significant decrease in charge-offs primarily due to the Company's continued focus on credit quality and a conservative approach to its lending operations.

(4) Variable Interest Entity

The Company transfers pools of eligible loans receivable to the Warehouse to secure debt for general funding purposes.

The Warehouse, a SPE of the Company, is considered a VIE under ASC 810, Consolidation , and is consolidated into the financial statements of the Company as the Company is determined to be the primary beneficiary of the Warehouse.

Debt under the Warehouse Facility is supported by the expected cash flows from the underlying collateralized loans receivable.

Collections on these loans receivable are remitted to a restricted cash collection account, which totaled $ 15.6 million as of March 31, 2026.

The Company also maintains a restricted cash reserve account, which totaled $ 2.0 million as of March 31, 2026.

Cash inflows from the pledged loans receivable are distributed in accordance with the Credit Agreement's monthly contractual priority of payments, which include the Warehouse's lenders and service providers.

Additionally, the Warehouse pays a servicing fee to the Company, which is eliminated in consolidation, as the Company continues to service the loans receivable transferred to the Warehouse.

Cash inflows remaining after the contractual payments are distributed to the Company, which is permitted under the Credit Agreement.

The following table presents the assets and liabilities of our consolidated VIE:

2 Recoveries for the year ended March 31, 2026, 2025, and 2024 include $ 8.2 million, $ 12.0 million, and $ 19.3 million, respectively, in proceeds related to the sale of charge-offs, which are included as a component of Provision for credit losses in the Consolidated Statements of Operations.

Of the $ 12.0 million in fiscal 2025, $ 1.5 million relates to bulk sales of charge-offs from prior periods and $ 10.5 million relates to recurring sales of charge-offs.

The $ 8.2 million in fiscal 2026 relates to recurring sales of charge-offs.

Of the $ 12.0 million in fiscal 2025, $ 1.5 million relates to bulk sales of charge-offs from prior periods and $ 10.5 million relates to recurring sales of charge-offs.

Of the $ 19.3 million in fiscal 2024, $ 5.7 million relates to bulk sales of charge-offs from prior periods and $ 13.6 million relates to recurring sales of charge-offs.

March 31, 2026 March 31, 2025 3

Gross loans receivable $ 228,285,593 $ —

Unearned interest, insurance and fees ( 59,193,501 ) —

Allowance for credit losses ( 18,563,362 ) —

Loans receivable, net 150,528,730 —

Restricted cash 17,636,232 —

Other assets, net 2,900,036 —

Total assets $ 171,064,998 $ —

Warehouse facility $ 143,293,355 $ —

Accounts payable and accrued expenses 855,839 —

Total liabilities $ 144,149,194 $ —

(5) Property and Equipment

24 unchanged sentences

$ 0.1 million for 2030;

$ 40.5 thousand for 2031;

and an aggregate of $ 0.1 million for the years thereafter.

3 Column is intentionally left blank as the warehouse facility was established in September of 2025.

As of March 31, 2026 and 2025, goodwill was $ 7.4 million.

1 unchanged sentence

The Company performed an annual impairment test during the fourth quarters of fiscal 2026 and 2025 and determined none of its recorded goodwill was impaired.

Senior Notes Payable;

Credit Facilities;

Senior Notes Redemption

Revolving Credit Facility

At March 31, 2025, the Company's senior notes payable consisted of a $ 580.0 million senior revolving credit facility, which has an accordion feature permitting the maximum aggregate commitments to increase to $ 730.0 million provided that certain conditions are met.

At March 31, 2025, the Company had $ 262.5 million outstanding under the facility, not including $ 889.7 thousand in outstanding standby letters of credit which include (i) $ 300.0 thousand related to worker's compensation expiring on December 31, 2025 and (ii) $ 589.7 thousand related to the Company's investment in captive insurance expiring on April 12, 2026.

On July 22, 2025, the Company entered into a three-year senior secured asset-based credit facility pursuant to a Revolving Credit Agreement (the “Revolving Credit Agreement”), by and among the Company, the lenders named therein (the “Lenders”), and Bank of Montreal, as Administrative Agent and Collateral Agent.

The Revolving Credit Agreement replaced the Company’s Amended and Restated Revolving Credit Agreement, dated as of June 7, 2019, among the Company, the lenders named therein, and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent (as amended, the “Prior Credit Agreement”).

The Revolving Credit Agreement provides, among other things, aggregate commitments of the Lenders of $ 640.0 million, with an accordion feature that can increase the aggregate commitments by $ 150.0 million for a total commitment, if the full accordion is borrowed, of $ 790.0 million (the "Revolving Credit Facility").

At March 31, 2026, the Company had $ 443.9 million outstanding under the facility, not including $ 816.1 thousand in outstanding standby letters of credit which include (i) $ 200.0 thousand related to worker's compensation expiring on October 16, 2026 and (ii) $ 616.1 thousand related to the Company's investment in captive insurance expiring on March 1, 2027.

Both letters of credit automatically extend for one year on their expiration dates.

To the extent that a letter of credit is drawn upon, the disbursement will be funded by the credit facility.

To the extent that a letter of credit is drawn upon, the disbursement will be funded by the Revolving Credit Facility.

There are no amounts due related to the letters of credit as of March 31, 2026.

Subject to a borrowing base formula, the Company may borrow at the rate of one month SOFR plus 0.10 % and an applicable margin of 3.5 %, with a minimum rate of 4.5 %.

The revolving credit facility has a commitment fee of 0.50 % per annum on the unused portion of the commitment.

Commitment fees on the unused portion of the borrowing totaled $ 1.6 million, $ 1.6 million, and $ 1.3 million for the years ended March 31, 2025, 2024, and 2023, respectively.

Borrowings under the revolving credit facility mature on June 7, 2026.

For the years ended March 31, 2025, 2024, and 2023 the Company’s effective interest rate, including the commitment fee, was 9.5 %, 9.9 %, and 7.0 %, respectively, and the unused amount available under the revolver at March 31, 2025 was $ 316.7 million.

Substantially all of the Company's assets are pledged as collateral for borrowings under the revolving credit agreement.

Senior Unsecured Notes Payable

On September 27, 2021, we issued $ 300 million in aggregate principal amount of 7.0 % senior notes due 2026.

The Notes were sold in a private placement in reliance on Rule 144A and Regulation S under the Securities Act of 1933, as amended.

The Notes are unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Company’s existing and certain of its future subsidiaries that guarantee the revolving credit facility.

Interest on the notes is payable semi-annually in arrears on May 1 and November 1 of each year, commencing May 1, 2022.

At any time prior to November 1, 2023, the Company could have redeemed the Notes, in whole or in part, at a redemption price equal to 100 % of the principal amount plus a make-whole premium, as described in the indenture, plus accrued and unpaid interest, if any, to, but not including, the date of redemption.

At any time on or after November 1, 2023, the Company may redeem the Notes at redemption prices set forth in the indenture, plus accrued and unpaid interest, if any, to, but not including, the date of redemption.

In addition, at any time prior to November 1, 2023, the Company could have used the proceeds of certain equity offerings to redeem up to 40.0 % of the aggregate principal amount of the Notes issued under the indenture at a redemption price equal to 107.0 % of the principal amount of Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the date of redemption.

We used the net proceeds from this offering to repay a portion of the outstanding indebtedness under our revolving credit facility and for general corporate purposes.

During fiscal 2025, the Company repurchased and extinguished $ 89.0 million of its Notes, net of $ 0.6 million unamortized debt issuance costs related to the extinguished debt, on the open market for a reacquisition price of $ 88.0 million.

During fiscal 2024, the Company repurchased and extinguished $ 15.7 million of its Notes, net of $ 0.2 million unamortized debt issuance costs related to the extinguished debt, on the open market for a reacquisition price of $ 14.1 million.

At March 31, 2026, subject to a borrowing base formula, the Company may borrow at the rate of one-month SOFR plus 0.10 % and an applicable margin of 3.5 %, with a minimum rate of 4.5 %.

The Revolving Credit Agreement has a commitment fee of 0.50 % per annum on the unused portion of the commitment.

Commitment fees on the unused portion of the Revolving Credit Facility and the Prior Credit Agreement totaled $ 0.9 million, $ 1.6 million, and $ 1.6 million for the years ended March 31, 2026, 2025, and 2024, respectively.

For the years ended March 31, 2026, 2025, and 2024 the Company’s effective interest rate, including the commitment fee and amortization of debt issuance costs, was 8.3 %, 9.5 %, and 9.9 %, respectively, as it relates to the Revolving Credit Facility and Prior Credit Agreement.

At March 31, 2026, the unused amount available under the Revolving Credit Facility was $ 90.1 million.

Borrowings under the revolving credit facility mature on July 22, 2028.

At March 31, 2026, substantially all of the Company’s assets, with the exception of loans receivable pledged to the Warehouse, were pledged as collateral for borrowings under the Revolving Credit Agreement.

Termination of Amended and Restated Revolving Credit Facility

On July 22, 2025, in connection with entry into the Revolving Credit Agreement, the Company terminated the Prior Credit Agreement.

The Prior Credit Agreement was scheduled to mature on June 7, 2026 and provided revolving loans in an aggregate commitment of up to $ 730.0 million.

Warehouse Facility

On September 29, 2025, the Company and its wholly-owned subsidiary, WFC Receivables I, LLC (the “Borrower”), entered into a Credit Agreement (the “Credit Agreement”), by and among the Company, as Servicer, the Borrower, the lenders and agents from time to time parties thereto, Atlas Securitized Products Administration, L.P., as administrative agent for the lenders, Systems & Services Technologies, Inc., a Delaware corporation, as backup servicer, and Wilmington Trust, National Association, a national banking association, as securities intermediary.

The Credit Agreement provides for a revolving $ 175.0 million warehouse facility (the “Warehouse Facility”) and is secured by certain consumer loan receivables that were directly originated by certain of the Company’s subsidiaries.

At March 31, 2026, $ 143.3 million was outstanding under the Company's Warehouse Facility.

As of March 31, 2026, the Company may borrow at the rate of one-month SOFR plus 0.11448 % and an applicable margin of 3.0 %, with a minimum rate of 4.0 %.

The Credit Agreement has a commitment fee of 0.50 % per annum on the unused portion of the commitment.

Commitment fees on the unused portion of the borrowing totaled $ 0.2 million for the twelve months ended March 31, 2026.

For the year ended March 31, 2026, the Company’s effective interest rate, including the commitment fee and amortization of debt issuance costs, was 6.7 %.

At March 31, 2026, the unused amount available under the Warehouse Facility was $ 31.7 million.

Borrowings under the Warehouse Facility have an expected maturity date of September 29, 2027.

Notes Redemption

On September 27, 2021, the Company issued $ 300 million in aggregate principal amount of 7.0 % senior notes due November 2026 (the "Notes").

On July 22, 2025, an irrevocable notice of full redemption (the “Notice”) of the Notes was delivered to the holders of the Notes.

The Notice called for the redemption of all of the outstanding Notes (the “Redemption”) on August 29, 2025 (the “Redemption Date”) at a redemption price equal to 101.75 % of the principal amount of the Notes, plus accrued and unpaid interest, if any, to, but not including, the Redemption Date.

The aggregate principal amount of the Notes redeemed was $ 168.3 million.

The Redemption was made in accordance with the terms and conditions of the Notes and the indenture governing the Notes.

As a result of the Redemption, the Company recognized an additional $ 3.7 million in interest expense, for which $ 3.0 million represents an early redemption premium and $ 0.7 million represents the write-off of the remaining unamortized debt issuance costs associated with the Notes.

During the year ended March 31, 2026 and prior to the Redemption, the Company repurchased and extinguished $ 17.0 million of its Notes, net of $ 0.1 million unamortized debt issuance costs related to the extinguished debt, on the open market for a reacquisition price of $ 17.0 million.

As a result, the Company recognized a $ 1.0 million, $ 1.6 million and $ 1.8 million gain on extinguishment for the years ended March 31, 2025, 2024, and 2023, respectively.

In accordance with ASC 470, the Company recognized the gain on extinguishment as a component of interest expense in the Company's Consolidated Statements of Operations.

For the year ended March 31, 2026, the Company recognized a $ 3.7 million loss on extinguishment.

For the fiscal years ended 2025 and 2024, the Company recognized a $ 1.0 million and $ 1.6 million gain on extinguishment, respectively.

In accordance with ASC 470, the Company recognized the gain and loss on extinguishments as a component of interest expense in the Company's Consolidated Statements of Operations.

Debt Covenants

The agreement governing the Company’s revolving credit facility contains affirmative and negative covenants, including covenants that restrict the ability of the Company and its subsidiaries to, among other things, incur or guarantee indebtedness, incur liens, pay dividends and repurchase or redeem capital stock, dispose of assets, engage in mergers and consolidations, make acquisitions or other investments, redeem or prepay subordinated debt, amend subordinated debt documents, make changes in the nature of its business, and engage in transactions with affiliates.

The agreement allows the Company to incur subordinated debt that matures after the termination date for the revolving credit facility and that contains specified subordination terms, subject to limitations on amount imposed by the financial covenants under the agreement.

The agreement's financial covenants include (i) a minimum consolidated net worth of $ 325.0 million on and after December 31, 2020;

(ii) a maximum ratio of total debt to consolidated adjusted net worth of 2.25 to 1.0 for the fiscal quarter ended December 31, 2023 and each fiscal quarter thereafter;

(iii) a maximum collateral performance indicator of 26.0 % as of the end of each calendar month;

and (iv) a minimum fixed charges coverage ratio of 2.0 to 1.0 for the fiscal quarters ending December 31, 2023 through December 2024, and 2.25 to 1.0 for each fiscal quarter thereafter, where the ratio for the most recent four consecutive fiscal quarters must be at least 2.0 to 1.0 in order for the Company to declare dividends or purchase any class or series of its capital stock or other equity.

The collateral performance indicator is equal to the sum of (a) a three-month rolling average rate of receivables at least sixty days past due and (b) an eight-month rolling average net charge-off rate.

Revolving Credit Facility

The Revolving Credit Agreement contains a number of affirmative and negative covenants that, among other things, restrict our ability to incur liens, incur indebtedness, pay dividends and repurchase or redeem capital stock, make certain restricted payments, merge or consolidate, dispose of assets, make acquisitions or other investments, redeem or prepay subordinated debt, amend subordinated debt documents, make changes in the nature of its business, and engage in transactions with affiliates.

The agreement allows the Company to incur subordinated debt that matures after the termination date of the Revolving Credit Agreement and that contains specified subordinated terms, subject to limitations on amount imposed by the financial covenants under the Revolving Credit Agreement.

In addition, the Revolving Credit Agreement requires the Company to (i) keep and maintain a Consolidated Net Worth of $ 325.0 million, (ii) have a ratio of Net Income Available for Fixed Charges to Fixed Charges of not less than 2.25 to 1.00, (iii) not permit the aggregate unpaid principal amount of Total Debt to exceed 225.0 % of Consolidated Adjusted Net Worth, and (iv) maintain an Asset Quality Indicator (Consolidated) of less than or equal to 26.0 %.

Each of the capitalized terms used and not defined herein have the meanings set forth in the Revolving Credit Agreement.

The Company was in compliance with these covenants at March 31, 2026, after giving effect to a Consent and Limited Modification to the Net Income Available for Fixed Charges to Fixed Charges ratio entered on May 22, 2026 as further discussed in Note 19 to the Consolidated Financial Statements.

The Company does not believe that these covenants will materially limit its business and expansion strategy.

The Revolving Credit Agreement also contains customary events of default (subject to certain materiality thresholds and cure periods), including among others, (a) non-payment, (b) non-compliance with covenants, (c) a breach of a representation or warranty, (d) an insolvency event involving the Company, (e) a change in control of the Company, (f) failure of the Company to maintain certain financial covenants, (g) cross-default to other debt, (h) invalidity of subordination provisions of subordinated debt, (i) the occurrence of certain regulatory events (including an order or judgment entered against the Company with respect to the financial receivables generally or any category of receivables that is material to the business) which remains unvacated, undischarged, unbonded or unstayed by appeal or otherwise for a period of 60 days from the date of its entry and is reasonably likely to cause a material adverse change, and (j) payment defaults resulting in acceleration of securitizations or warehouse facilities that remain continuing for more than 30 days.

Warehouse Facility

The Credit Agreement contains affirmative and negative covenants, including covenants that generally restrict the ability of the Company and its subsidiaries to, among other things, incur or guarantee indebtedness, incur liens, pay dividends and repurchase or redeem capital stock, engage in mergers and consolidations, make acquisitions or other investments, or fund benefit plans.

The Company’s financial covenants under the Credit Agreement include (i) a minimum tangible net worth of $ 305.0 million;

(ii) a maximum ratio of debt to tangible net worth of 2.25 to 1.0 as of the end of each fiscal quarter;

(iii) a minimum liquidity amount of $ 35.0 million;

and (iv) a minimum of unrestricted cash and cash equivalents of $ 5.0 million.

The Credit Agreement also contains covenants that require the Company, as Servicer, with respect to any collection period to maintain certain delinquency ratios, payment ratios and annualized net charge-off ratios.

A failure to maintain such ratios may result in a Level I Trigger Event, Level II Trigger Event, or Level III Trigger Event.

Each of the capitalized terms used and not defined herein have the meanings set forth in the Credit Agreement.

The Company was in compliance with these covenants at March 31, 2026, and does not believe that these covenants will materially limit its business and expansion strategy.

The agreement contains events of default including, without limitation, nonpayment of principal, interest or other obligations, violation of covenants, misrepresentation, cross-default to other debt, bankruptcy and other insolvency events, judgments, certain ERISA events, actual or asserted invalidity of loan documentation, invalidity of subordination provisions of subordinated debt, certain changes of control of the Company, and the occurrence of certain regulatory events (including the entry of any stay, order, judgment, ruling or similar event related to the Company’s or any of its subsidiaries’ originating, holding, pledging, collecting or enforcing its eligible loans receivables that is material to the Company or any subsidiary) which remains unvacated, undischarged, unbonded or unstayed by appeal or otherwise for a period of 60 days from the date of its entry and is reasonably likely to cause a material adverse change.

The indenture governing the Notes contains certain covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries to (i) incur additional indebtedness or issue certain disqualified stock and preferred stock;

(ii) pay dividends or distributions or redeem or purchase capital stock;

(iii) prepay subordinated debt or make certain investments;

(iv) transfer and sell assets;

(v) create or permit to exist liens;

(vi) enter into agreements that restrict dividends, loans and other distributions from their subsidiaries;

(vii) engage in a merger, consolidation or sell, transfer or otherwise dispose of all or substantially all of their assets;

and (viii) engage in transactions with affiliates.

However, these covenants are subject to a number of important detailed qualifications and exceptions.

The Credit Agreement also contains customary events of default (subject to certain materiality thresholds and cure periods), including among others, (a) non-payment, (b) non-compliance with covenants, (c) failure of the Administrative Agent to maintain a first-priority perfected security interest in any material portion of the collateral (subject to permitted liens), (d) the occurrence of a servicer termination event, (e) a breach of a representation or warranty, (f) an insolvency event involving the Company, the Borrower, or the Originators (as defined therein), (g) a change in control of the Company or the Borrower, (h) an event of default under a material financing agreement of the Company, the Borrower, or the Originators, (i) failure of the Company, as Servicer, to maintain certain financial covenants, and (j) the Company, the Borrower, or the Originators have one or more final non-appealable judgments entered against it by a court of competent jurisdiction in excess of the specified monetary thresholds.

The remedies for such events of default are also customary for this type of transaction and include acceleration of the Borrower’s outstanding obligations under the Credit Agreement.

Debt Maturities

1 unchanged sentence

2028 143,293,355

2029 443,935,446

Total future debt payments $ 587,228,801

7 unchanged sentences

Insurance and other income $ 100,336,525 $ 99,080,519 $ 104,282,587

The Company has a wholly-owned, captive insurance subsidiary that reinsures a portion of the credit insurance sold in connection with loans made by the Company.

Insurance premiums are ceded to the reinsurance subsidiary as written, and revenue is recognized over the life of the related insurance contracts.

For the years ended March 31, 2025, 2024, and 2023, the amount of net written premiums by the reinsurance subsidiary were $ 6.1 million, $ 7.2 million, and $ 9.0 million, respectively, and the amount of earned premiums were $ 7.1 million, $ 8.2 million, and $ 9.1 million, respectively.

The Company maintains a cash reserve for claims in an amount determined by the ceding company, and as of March 31, 2025 and 2024, the cash reserves were $ 4.0 million and $ 4.9 million, respectively.

(10) Non-filing Insurance

6 unchanged sentences

Accounting Policies and Matters Requiring Management's Judgment

When evaluating leases under Topic 842, the Company uses its incremental borrowing rate on its senior notes payable to determine the discount rate.

Specifically, Management applies its senior notes payable's effective annual interest rate at the end of the prior fiscal year to leases entered into in the following year.

For example, the senior notes payable's effective annual interest rate of 9.9 % at March 31, 2024 was used as the discount rate when determining the lease type and the present value of lease payments for leases entered into in fiscal 2025.

When evaluating leases under Topic 842, the Company uses its incremental borrowing rate on its revolving credit facility to determine the discount rate.

Specifically, Management applies its revolving credit facility's effective annual interest rate at the end of the prior fiscal year to leases entered into in the following year.

For example, the revolving credit facility's effective annual interest rate of 9.5 % at March 31, 2025 was used as the discount rate when determining the lease type and the present value of lease payments for leases entered into in fiscal 2026.

Based on its historical practice, the Company believes it is reasonably certain to exercise a given option associated with a given office space lease.

4 unchanged sentences

Both the branch real estate and office equipment lease terms generally range from three years to five years , and generally contain options to extend which mirror the original terms of the lease.

During the second quarter of fiscal 2023, the lease terms associated with the Company's finance leases expired and the Company exercised its purchase option to acquire the IT equipment.

Because it was reasonably certain that the Company would obtain the assets at the end of their lease terms, the ROU assets were amortized over the useful life of the assets, rather than over the lease terms.

As of March 31, 2026 and 2025, the Company had no finance leases.

1 unchanged sentence

2026 2025 2024

Finance lease cost $ — $ — $ 205,975

Amortization of ROU assets — — 204,552

Interest on lease liabilities — — 1,423

Operating lease cost $ 24,947,796 $ 25,244,452 $ 25,291,087

5 unchanged sentences

Cash paid for amounts included in the measurement of lease liabilities $ 24,950,992 $ 25,158,809 $ 25,292,363

Operating cash flows from finance leases — — 1,423

Operating cash flows from operating leases 24,950,992 25,158,809 25,292,363

Financing cash flows from finance leases — — 80,067

ROU assets obtained in exchange for new operating lease liabilities $ 14,614,762 $ 16,102,245 $ 18,024,157

14 unchanged sentences

(12) Income Taxes

The Company recognizes the investment of the HTC under the proportional amortization method which allows the investment to be recognized in proportion to the tax credit as a component of income tax expense.

As of March 31, 2025 and 2024, investment in HTC was $ 15.9 million and $ 24.8 million, respectively, which is included as a component of Other assets, net and Accounts payable and accrued expenses in the Consolidated Balance Sheets.

The Company recognized net amortization from these investments of $ 17.8 million and $ 8.8 million for the years ended March 31, 2025 and 2024, respectively, in income tax expense.

The Company recognized tax benefits from these investments of $ 19.6 million and $ 9.7 million during the years ended March 31, 2025 and 2024, respectively, in income tax expense and in Income taxes payable in the Consolidated Statements of Cash Flows.

The Company did not recognize any non-tax related activity or have any significant modifications to its investments during the current fiscal year.

Income tax expense (benefit) consists of:

Effective March 31, 2026, the Company adopted Accounting Standard Update (ASU) 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, retrospective to April 1, 2023.

The amendments in this ASU address investor requests for more transparency about income tax information through improvements to income tax disclosures, primarily related to an entity’s effective tax rate reconciliation and income taxes paid information.

The Company is subject to U.S.

income tax, as well as various other state and local jurisdictions.

With the exception of a few states, the Company is no longer subject to U.S.

federal, state and local, or non-U.S.

income tax examinations by tax authorities for years before 2021, although carryforward attributes that were generated prior to 2021 may still be adjusted upon examination by the taxing authorities if they either have been or will be used in a future period.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted.

The OBBBA includes provisions such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions.

There are no material tax implications as a result of the OBBBA and it does not have a material impact on our consolidated financial statements and related disclosures.

Income tax expense (benefit) for the years indicated below consists of:

Current Deferred Total

12 unchanged sentences

The differences between income taxes expected at the U.S.

federal statutory income tax rate of 21 % and the reported income tax expense for March 31, 2025, 2024 and 2023 are summarized as follows:

2025 2024 2023

Expected income tax $ 23,516,929 $ 20,875,624 $ 5,700,613

Increase (reduction) in income taxes resulting from:

State tax (excluding state tax credits), net of federal benefit 3,034,552 3,513,226 328,026

Federal tax credits, net ( 1,922,712 ) ( 1,034,091 ) ( 200,203 )

State tax credits ( 254,020 ) ( 239,410 ) ( 162,619 )

Uncertain tax positions 26,631 ( 16,802 ) ( 1,151,234 )

Expiration of capital loss carryforward — 7,773,559 —

Executive compensation limitation under Section 162(m) 364,892 62,686 732,504

Forfeiture of the $ 20.45 Performance Shares and partial forfeiture of the $ 16.35 Performance Shares

federal statutory income tax rate of 21 % and the reported income tax expense for the years ended March 31, 2026, 2025 and 2024 are summarized as follows:

2026 2025 2024

Excess tax benefits related to equity compensation ( 182,098 ) ( 347,806 ) ( 73,644 )

Decrease in valuation allowance related to capital loss carryforward — ( 7,773,559 ) —

Prior year adjustments ( 54,152 ) ( 1,135,270 ) 238,187

Other, net 301,509 384,352 502,153

US federal statutory tax rate $ 9,500,928 21.0 % $ 23,376,151 21.0 % $ 20,791,004 21.0 %

State and local income taxes, net of federal tax effect 800,353 1.8 % 2,748,295 2.5 % 3,254,363 3.3 %

Historic tax credits ( 961,138 ) ( 2.1 ) % ( 871,938 ) ( 0.8 ) % ( 427,512 ) ( 0.4 ) %

Energy-related tax credits ( 612,353 ) ( 1.4 ) % ( 887,089 ) ( 0.8 ) % ( 451,800 ) ( 0.5 ) %

Other ( 44,785 ) ( 0.1 ) % ( 163,685 ) ( 0.1 ) % ( 154,779 ) ( 0.2 ) %

Nontaxable or nondeductible items

Forfeiture of the $ 20.45 Performance Shares and the $ 16.35 Performance Shares

— — % ( 2,587,552 ) ( 2.3 ) % — — %

Permanent effect of the bargain purchase of loans — — % — — % ( 1,090,068 ) ( 1.1 ) %

Excess tax benefits related to equity awards ( 578,321 ) ( 1.3 ) % ( 182,098 ) ( 0.2 ) % ( 347,806 ) ( 0.4 ) %

Other 764,062 1.7 % 676,757 0.6 % 413,831 0.4 %

Changes in unrecognized tax benefits 1,619,698 3.6 % 17,537 — % 16,406 — %

Other adjustments 168,047 0.4 % ( 54,152 ) — % ( 45,201 ) — %

Effective tax rate $ 10,656,491 23.6 % $ 22,072,226 19.8 % $ 21,958,438 22.2 %

As of March 31, 2026 and 2025, investment in HTC was $ 10.1 million and $ 15.9 million, respectively, which is included as a component of Other assets, net and Accounts payable and accrued expenses in the Consolidated Balance Sheets.

The Company recognized net amortization from these investments of $ 13.6 million and $ 17.8 million for the years ended March 31, 2026 and 2025, respectively, in income tax expense.

The Company recognized tax benefits from these investments of $ 15.1 million and $ 19.6 million during the years ended March 31, 2026 and 2025, respectively, in income tax expense and in Income taxes payable in the Consolidated Statements of Cash Flows.

The Company did not recognize any non-tax related activity or have any significant modifications to its investments during the current fiscal year.

For fiscal 2026, listed in descending order of financial impact, Illinois and Missouri made up the majority of the state and local tax expense.

For fiscal 2025, listed in descending order of financial impact, Illinois, Tennessee, Georgia and Kentucky made up the majority of the state and local tax expense.

For fiscal 2024, listed in descending order of financial impact, Georgia, Tennessee, Illinois and Oklahoma made up the majority of the state and local tax expense.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31, 2026 and 2025 are presented below:

6 unchanged sentences

Intangible assets 2,107,831 1,965,939

Foreign tax credit carryforward 5,639,649 3,254,926

Deferred revenue 1,007,892 860,594

Tax credit carryforward 11,483,737 5,639,649

Capital loss carryforward 38,142 192,767

12 unchanged sentences

Deferred income taxes, net $ 41,241,258 $ 34,151,668

At March 31, 2025, the Company had state net operating loss carryforwards of approximately $ 102.0 million.

Income taxes paid (net of refunds) consisted of the following jurisdictions for the years ended March 31, 2026, 2025 and 2024 are presented below:

2026 2025 2024

Federal $ 12,960,932 $ 13,839,346 $ 12,453,502

State and local 1,805,494 1,428,672 1,161,822

Total $ 14,766,426 $ 15,268,018 $ 13,615,324

At March 31, 2026, the Company had stated net operating loss carryforwards of approximately $ 111.0 million.

A deferred tax asset of approximately $ 6.5 million was recorded to reflect the benefit of these losses.

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The valuation allowance at March 31, 2026 and 2025 was $ 9.1 million and $ 8.7 million, respectively.

The valuation allowance against the total deferred tax assets as of March 31, 2025 consisted of $ 5.2 million from state net operating loss carryforwards in the amount of $ 83 million which expire from 2031 to 2043, a foreign tax credit carryforward of $ 3.3 million arising in relation to the Transition Tax during fiscal 2018 which expires in 2028, and $ 0.2 million related to the $ 0.9 million capital loss on the sale of the former headquarters buildings which expire from 2026 to 2027.

The valuation allowance against the total deferred tax assets as of March 31, 2026 consisted of $ 5.8 million from state net operating loss carryforwards in the amount of $ 92.0 million, which expire from 2031 to 2044, a foreign tax credit carryforward of $ 3.3 million arising in relation to the Transition Tax during fiscal 2018, which expires in 2028, and $ 40.0 thousand related to the $ 0.2 million capital loss on the sale of the former headquarters buildings, which expires in 2027.

The Company does not expect to generate enough foreign source income, state taxable income in the respective jurisdictions or capital gains in future tax years to realize these tax attributes.

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In order to fully realize the deferred tax asset, the Company will need to generate future taxable income of the appropriate character prior to the expiration of the deferred tax assets governed by the tax code.

For each of the years ended March 31, 2025, 2024, and 2023, the Company had $ 1.1 million of total gross unrecognized tax benefits including interest.

Of these totals, approximately $ 0.9 million, represents the amount of net unrecognized tax benefits that are permanent in nature and, if recognized, would affect the annual effective tax rate.

For the years ended March 31, 2026, 2025, and 2024, the Company had $ 0.5 million, $ 1.1 million and $ 1.1 million, respectively, of total gross unrecognized tax benefits including interest.

Of these totals, approximately $ 0.4 million, $ 0.9 million and $ 0.9 million, respectively, represents the amount of net unrecognized tax benefits that are permanent in nature and, if recognized, would affect the annual effective tax rate.

A reconciliation of the beginning and ending amount of unrecognized tax benefits at March 31, 2026, 2025, and 2024 are presented below:

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Gross increases for tax positions of current year 107,233 73,696 105,531

Gross increases for tax positions of prior years 1,003,507 — —

Settlements with tax authorities ( 1,339,847 ) — —

Lapse of statute of limitations ( 112,121 ) ( 81,369 ) ( 175,467 )

Unrecognized tax benefit balance end of year $ 399,388 $ 740,616 $ 748,289

At March 31, 2025, approximately $ 0.4 million of gross unrecognized tax benefits are expected to be resolved during the next 12 months through settlements with taxing authorities or the expiration of the statute of limitations.

The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense.

For each of the years ended March 31, 2025, 2024, and 2023, the Company had $ 0.3 million accrued for gross interest, of which $ 0.1 million represented the current period expense for each of the years ended March 31, 2025, 2024, and 2023.

The Company is subject to U.S.

income tax, as well as various other state and local jurisdictions.

With the exception of a few states, the Company is no longer subject to U.S.

federal, state and local, or non-U.S.

income tax examinations by tax authorities for years before 2020, although carryforward attributes that were generated prior to 2020 may still be adjusted upon examination by the taxing authorities if they either have been or will be used in a future period.

For the years ended March 31, 2026, 2025, and 2024, the Company had $ 0.1 million, $ 0.3 million and $ 0.3 million, respectively, accrued for gross interest, of which $ 0.8 million, $ 0.1 million and $ 0.1 million, respectively, represented the current period expense for the years ended March 31, 2026, 2025, and 2024.

(13) Earnings Per Share

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Stock Incentive Plans

The Company maintains the 2008 Plan, the 2011 Plan, and the 2017 Plan for the benefit of certain directors, officers, and key employees.

The Company maintains the 2008 Plan, the 2011 Plan, the 2017 Plan and the 2025 Plan for the benefit of certain directors, officers, and key employees.

Under these plans, a total of 3,750,000 shares of authorized common stock have been reserved for issuance pursuant to grants approved by the Compensation Committee.

Stock options granted under these plans have a maximum duration of ten years , may be subject to certain vesting requirements, which are generally three to six years for officers, non-employee directors, and key employees, and are priced at the market value of the Company's common stock on the option's grant date.

At March 31, 2025 there were a total of 475,982 shares of common stock available for grant under the 2017 Plan.

At March 31, 2026, there were a total of 698,117 shares of common stock available for grant under the 2017 Plan and no shares of common stock remaining available for grant under the 2008 or 2011 plan.

No awards have been granted under the 2025 Plan as of March 31, 2026.

Stock options granted under these plans have a maximum term of 10 years.

Service Options and Restricted Stock granted under these plans typically vest in three equal annual installments, beginning on the first anniversary of the grant date, subject to each respective employee’s continued employment at the Company through each applicable vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The performance vesting conditions associated with Performance Shares and Performance Options are further discussed below within this Note 14 to the Consolidated Financial Statements.

Stock-based compensation is recognized as provided under FASB ASC Topic 718-10 and FASB ASC Topic 505-50.

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On October 15, 2018, the Compensation Committee and Board approved and adopted a long-term incentive program that seeks to motivate and reward certain employees and to align management’s interest with shareholders’ by focusing executives on the achievement of long-term results.

The program is comprised of four components:

Service Options, Performance Options, Restricted Stock, and Performance Shares.

Pursuant to this program, in fiscal 2019, the Compensation Committee approved certain grants of Service Options, Performance Options, Restricted Stock and Performance Shares under the 2011 Plan and the 2017 Plan to certain employee directors, vice presidents of operations, vice presidents, senior vice presidents, and executive officers.

Separately, the Compensation Committee approved certain grants of Service Options and Restricted Stock to certain non-employee directors of the Company.

Under the long-term incentive program, up to 100 % of the shares of restricted stock subject to the Performance Shares shall vest, if at all, based on the achievement of two trailing earnings per share performance targets established by the Compensation Committee that are based on earnings per share (measured at the end of each calendar quarter, commencing with the calendar quarter ending September 30, 2019) for the previous four calendar quarters.

The Performance Shares are eligible to vest over the 2018 Performance Share Measurement Period subject to each respective employee’s continued employment at the Company through the last day of the 2018 Performance Share Measurement Period (or as otherwise provided under the terms of the applicable award agreement or applicable employment agreement).

The Performance Share performance targets are set forth below.

Under the long-term incentive program, up to 100 % of the shares of restricted stock subject to the Performance Shares could have vested, if at all, based on the achievement of two trailing earnings per share performance targets established by the Compensation Committee that are based on earnings per share (measured at the end of each calendar quarter, commencing with the calendar quarter ending September 30, 2019) for the previous four calendar quarters.

The Performance Shares were eligible to vest over the 2018 Performance Share Measurement Period subject to each respective employee’s continued employment at the Company through the last day of the 2018 Performance Share Measurement Period (or as otherwise provided under the terms of the applicable award agreement or applicable employment agreement).

The Performance Share performance targets were set forth below.

Trailing 4-Quarter EPS Targets for

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Following the forfeiture, the performance target associated with the remaining 72 % of the $ 16.35 Performance Shares, or 88,497 shares, was achieved, and such shares vested on April 25, 2025 after certification of performance achievement by the Compensation Committee.

The Restricted Stock awards typically vest in three to six equal annual installments, beginning on the first anniversary of the grant date, subject to each respective employee’s continued employment at the Company through each applicable vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The Service Options typically vest in three equal annual installments, beginning on the first anniversary of the grant date, subject to each respective employee’s continued employment at the Company through each applicable vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The option price is equal to the fair market value of the common stock on the grant date and the Service Options shall have a 10 -year term.

The Performance Options shall fully vest if the Company attains the trailing earnings per share target over four consecutive calendar quarters occurring between September 30, 2018 and March 31, 2025 as described below.

Such performance target was established by the Compensation Committee and will be measured at the end of each calendar quarter commencing on September 30, 2019.

The Performance Options are eligible to vest over the 2018 Performance Measurement Period, subject to each respective employee’s continued employment at the Company through the last day of the 2018 Performance Measurement Period or as otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The option price is equal to the fair market value of the common stock on the grant date and the Performance Options shall have a 10 -year term.

The Performance Option performance target is set forth below.

Trailing 4-Quarter EPS Targets for

September 30, 2018 through March 31, 2025 Options Eligible for Vesting

(Percentage of Award)

$ 25.30 100 %

During the second quarter of fiscal 2024, it was determined that the Performance Option performance target was no longer probable of being achieved.

The Performance Options could have fully vested if the Company attained a trailing $ 25.30 EPS target over four consecutive calendar quarters occurring between September 30, 2018 and March 31, 2025.

During the second quarter of fiscal 2024, it was determined that achievement of this target was no longer probable.

As a result and in accordance with ASC 718, the Company reversed $ 4.9 million in previously recognized stock-based compensation related to these Performance Options during the second quarter of fiscal 2024.

2024 Long-term Incentive Program and Non-Employee Director Awards

The EPS target was not met and, accordingly, no Performance Options vested and all such Performance Options were forfeited by their terms as of March 31, 2025.

2024 and 2025 Long-term Incentive Program and Non-Employee Director Awards

On December 18, 2024, the Compensation Committee and Board approved certain grants of Service Options, Performance Options, Restricted Stock and Performance Shares under the 2017 Plan to certain employee directors, vice presidents of operations, vice presidents, senior vice presidents, and executive officers.

Separately, the Compensation Committee approved certain grants of Restricted Stock to certain non-employee directors of the Company.

Up to 100 % of the shares of restricted stock subject to the Performance Shares will vest, if at all, based on the achievement of certain performance goals established by the Compensation Committee related to company operational performance metrics during the 2024 Performance Share Measurement Period, for which achievement must be certified by the Compensation Committee.

The Performance Shares are eligible to vest over the 2024 Performance Share Measurement Period, subject to each respective employee’s continued employment at the Company through the last day of the 2024 Performance Share Measurement Period or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The Restricted Stock awards fully vest on the first anniversary of the grant date, subject to each respective employee’s continued employment at the Company through the vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The Service Options vest in three equal annual installments, beginning on the first anniversary of the grant date, subject to each respective employee’s continued employment at the Company through each applicable vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The option price is equal to the fair market value of the common stock on the grant date and the Service Options have a 10 -year term.

Up to 100 % of the Performance Options will vest, if at all, based on the achievement of certain performance goals established by the Compensation Committee related to company operational performance metrics during the 2024 Performance Option Measurement Period, for which achievement must be certified by the Compensation Committee.

The Performance Options typically vest in three equal annual installments, beginning on January 30, 2026, subject to each respective employee’s continued employment at the Company through each applicable vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The option price is equal to the fair market value of the common stock on the grant date and the Performance Options have a 10 -year term.

Up to 100 % of the shares of restricted stock subject to the 2024 Performance Shares could have vested, if at all, based on the achievement of certain performance goals established by the Compensation Committee related to company operational performance metrics during the 2024 Performance Share Measurement Period, for which achievement must be certified by the Compensation Committee.

The 2024 Performance Shares were eligible to vest over the 2024

Performance Share Measurement Period, subject to each respective employee’s continued employment at the Company through the last day of the 2024 Performance Share Measurement Period or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

On December 31, 2025, 1,031 of the 7,500 2024 Performance Share awards were forfeited as a result of certain company operational performance metrics not being achieved during the 2024 Performance Share Measurement Period.

The remaining 6,469 performance shares vested on January 21, 2026 after certification of performance achievement by the Compensation Committee.

Up to 100 % of the 2024 Performance Options were eligible to vest based on the achievement of certain performance goals established by the Compensation Committee related to company operational performance metrics during the 2024 Performance Option Measurement Period, for which achievement must be certified by the Compensation Committee.

Following certification of achievement, the 2024 Performance Options mainly vest in three equal annual installments, beginning on January 30, 2026, subject to each respective employee’s continued employment at the Company through each applicable vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

On December 31, 2025, 6,132 of 23,500 2024 Performance Options were forfeited as a result of certain company operational performance metrics not being achieved during the 2024 Performance Share Measurement Period.

The achievement of the remaining 17,368 performance options was certified by the Compensation Committee on January 21, 2026, and began vesting on January 30, 2026 as described above.

On June 10, 2025, the Compensation Committee and Board of Directors approved grants of Restricted Stock and Performance Shares under the 2017 Plan to certain vice presidents, senior vice presidents, and executive officers.

Separately, the Compensation Committee approved grants of Restricted Stock to non-employee directors of the Company.

Up to 100 % of the shares of restricted stock subject to the 2025 Performance Share awards will vest, if at all, based on the achievement of a trailing EPS performance target established by the Compensation Committee that is based on EPS for the previous four calendar quarters.

The 2025 Performance Shares are eligible to vest over the 2025 Performance Share Measurement Period, subject to each respective employee’s continued employment at the Company through the last day of the 2025 Performance Share Measurement Period (or as otherwise provided under the terms of the applicable award agreement or applicable employment agreement).

The 2025 Performance Shares performance target is set forth below.

Trailing 4-Quarter EPS Targets for

July 1, 2025 through March 31, 2027 Restricted Stock Eligible for Vesting

(Percentage of Award)

$ 18.40 100 %

Stock Options

27 unchanged sentences

During fiscal 2026, the Company granted 183,500 shares of restricted stock (which are equity classified), to certain vice presidents, senior vice presidents, executive officers, and non-employee directors with a grant date weighted average fair value of $ 156.72 per share.

During fiscal 2025, the Company granted 71,186 shares of restricted stock (which are equity classified) to certain vice presidents, senior vice presidents, executive officers, and non-employee directors with a grant date weighted average fair value of $ 111.64 per share.

During fiscal 2024, the Company granted 3,993 shares of restricted stock (which are equity classified) to certain vice presidents and senior vice presidents with a grant date weighted average fair value of $ 120.12 per share.

During fiscal 2023, the Company granted 3,250 shares of restricted stock (which are equity classified) to certain vice presidents with a grant date weighted average fair value of $ 129.85 per share.

The total fair value of restricted stock vested during the years ended March 31, 2026, 2025, and 2024 were $ 23,271,732 , $ 7,293,854 , and $ 7,796,666 , respectively.

As of March 31, 2026, there was approximately $ 15.6 million of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over the next 1.5 years based on current estimates.

3 As the $ 25.30 Performance Options performance target was not met as of March 31, 2025, 100 % of the outstanding shares associated with this performance award, or 102,925 shares, were forfeited as of March 31, 2025.

4 Of the 169,154 options outstanding, 15,703 are not yet exercisable based solely on fulfilling a service condition and another 25,500 are not yet exercisable based solely on fulfilling the performance condition associated with the Performance Options granted on December 18, 2024.

4 Of the 134,809 options outstanding, 9,450 are not yet exercisable based solely on fulfilling a service condition and another 12,587 are not yet exercisable based solely on fulfilling a performance condition .

A summary of the status of the Company’s restricted stock as of March 31, 2026 and changes during the year ended March 31, 2026, are presented below:

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Stock-based compensation (reversal) related to restricted stock 18,325,357 ( 20,296,243 ) 2,071,122

( 20,296,243 ) 2,071,122 6,610,526

Total stock-based compensation related to equity classified awards $ 19,342,502 $ ( 19,688,968 ) $ ( 1,683,087 )

5 As the $ 20.45 Performance Shares performance target was not met as of March 31, 2025, 100 % of the outstanding shares associated with this performance award, or 185,088 shares, were forfeited as of March 31, 2025.

Additionally, 34,415 of the 122,912 outstanding shares associated with the $ 16.35 Performance Shares performance target were forfeited.

(15) Acquisitions

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However, any assets for which the subsequent application of GAAP would result in an immediate gain (e.g., financial assets, assets held for sale) are not allocated a portion of the cost below fair value.

During the year ended March 31, 2025, the remaining benefit was recorded as a discount on purchase, which is a component of Unearned interest, insurance and fees in the Company's Consolidated Balance Sheets, and amortized over the life of loans receivable acquired, which resulted in a $ 1.0 million discount on loans acquired in asset purchases of which $ 0.6 million was amortized to interest income.

Any remaining benefit is recorded as a discount on purchase, which is a component of Unearned interest, insurance and fees in the Company's Consolidated Balance Sheets, and is amortized over the life of loans receivable acquired.

Unamortized discount on purchases as of March 31, 2026 and 2025 was $ 23.1 thousand and $ 382.0 thousand, respectively.

The Company’s acquisitions include tangible assets (generally loans and furniture and equipment) and intangible assets (generally non-compete agreements, customer lists, and goodwill), both of which are recorded at their fair values, which are estimated pursuant to the processes described below.

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Furniture and equipment are valued at the specific purchase price as agreed to by both parties at the time of acquisition, which management believes approximates their fair values.

6 For acquisitions of loan portfolios at a discount during the years ended March 31, 2024 and 2023, the Company recorded a $ 154.6 thousand gain before income tax of $ 41.9 thousand and a $ 5.2 million gain before income tax of $ 1.2 million, respectively, which is included as a component of Insurance and other income, net in the Consolidated Statements of Operations.

5 For acquisitions of loan portfolios at a discount during the year ended March 31, 2024, the Company recorded a $ 154.6 thousand gain before income tax of $ 41.9 thousand, which is included as a component of Insurance and other income, net in the Consolidated Statements of Operations.

Non-compete agreements are valued at the stated amount paid to the other party for these agreements, which the Company believes approximates the fair values.

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• Level 3 – Unobservable inputs for assets or liabilities reflecting the reporting entity’s own assumptions.

The Company’s financial instruments consist of cash and cash equivalents, loans receivable, the senior notes payable, and the senior unsecured notes payable.

As of March 31, 2026, the Company’s financial instruments consist of cash and restricted cash, loans receivable, net, a revolving credit facility and a warehouse facility.

Loans receivable are originated at prevailing market rates and have an average life of up to twelve months.

Given the short-term nature of these loans, they are continually repriced at current market rates.

The Company’s senior notes payable, consisting of a senior revolving credit facility, has a variable rate based on a margin over SOFR and reprices with any changes in SOFR.

The fair value of the senior unsecured notes payable is estimated based on quoted prices in markets that are not active.

The Company’s revolving credit facility and warehouse facility have a variable rate based on a margin over SOFR and reprices with any changes in SOFR.

The Company also considered its creditworthiness in its determination of fair value.

2 unchanged sentences

Input Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value

Cash and cash equivalents 1 $ 9,730,296 $ 9,730,296 $ 11,839,460 $ 11,839,460

Cash 1 $ 6,071,077 $ 6,071,077 $ 4,714,459 $ 4,714,459

Restricted cash 1 23,303,453 23,303,453 5,015,837 5,015,837

Loans receivable, net 3 841,876,807 841,876,807 812,968,685 812,968,685

Senior unsecured notes payable 2 — — 184,418,211 182,754,759

Senior notes payable 3 262,451,475 262,451,475 223,419,132 223,419,132

Revolving credit facility 3 443,935,446 443,935,446 262,451,475 262,451,475

Warehouse facility 3 143,293,355 143,293,355 — —

As discussed in Note 8 to the Consolidated Financial Statements, the senior unsecured notes payable were fully redeemed during the fiscal year ended March 31, 2026.

The fair value of the senior unsecured notes payable at March 31, 2025 was estimated based on quoted prices in markets that are not active.

There were no significant assets or liabilities measured at fair value on a non-recurring basis as of March 31, 2026 and 2025.

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Interest expense 9,630 14,343 12,786 12,684 9,769 10,457 11,294 11,190

Income tax expense

2,980 5,800 2,624 10,840 2,816 4,839 2,853 11,555

$ 9,947 $ 22,129 $ 13,389 $ 44,278 $ 9,539 $ 16,082 $ 16,666 $ 35,058

Net income per common share:

Income tax expense (benefit) 684 358 ( 4 ) 9,618 3,050 5,882 2,706 10,434

Net income (loss) $ 1,585 $ ( 1,662 ) $ ( 625 ) $ 35,290 $ 10,151 $ 22,366 $ 13,629 $ 43,100

Net income (loss) per common share:

Basic $ 0.30 $ ( 0.33 ) $ ( 0.13 ) $ 7.53 $ 1.85 $ 4.09 $ 2.51 $ 8.11

Diluted $ 0.30 $ ( 0.33 ) $ ( 0.13 ) $ 7.44 $ 1.82 $ 4.03 $ 2.49 $ 7.91

The Company's highest loan demand occurs generally from October through December, its third fiscal quarter.

The Company's highest loan demand generally occurs from October through December, its third fiscal quarter.

Loan demand is generally lowest and loan repayment highest from January to March, its fourth fiscal quarter.

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(19) Subsequent Events

On April 25, 2025, 72 % of the shares subject to the $ 16.35 Performance Shares, or 88,497 shares, vested after certification of performance achievement by the Compensation Committee.

On April 30, 2025, the Board of Directors of the Company approved a share repurchase program authorizing the Company to repurchase up to $ 20.0 million of its outstanding common stock inclusive of any amount that remains available for repurchase under prior repurchase authorizations.

The timing and actual number of shares repurchased will depend on a variety of factors, including the stock price, corporate and regulatory requirements, available funds, alternative uses of capital, restrictions under the Revolving Credit Agreement, and other market and economic conditions.

The Company’s stock repurchase program may be suspended or discontinued at any time.

Resignation of President and Chief Executive Officer

On April 10, 2026, R.

Chad Prashad informed the Company of his resignation from his positions as President and Chief Executive Officer and as a member of the Company’s Board of Directors, effective April 10, 2026, in order to pursue other opportunities.

Prashad’s resignation from the Board is not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.

The Company and Mr.

Prashad have agreed that Mr.

Prashad’s resignation will be treated as a termination by the Company without cause (other than in connection with a change in control) for all purposes under his employment agreement and related equity award agreements with the Company.

In connection with his departure from the Company, Mr.

Prashad and the Company entered into a separation agreement and general release (the “Separation Agreement”) with an effective separation date of April 10, 2026 (the “separation date”).

Consistent with the requirements of Mr.

Prashad’s employment agreement for a termination by the Company without cause and the Company’s customary practices, under the Separation Agreement Mr.

Prashad is entitled to receive the following:

(i) a lump sum payment of his accrued base salary, vacation pay, and expenses, as well as vested benefits under any Company benefit plans or programs, through the separation date;

(ii) severance pay in the amount of $ 1,260,000 , payable over 24 months;

(iii) accelerated vesting of his outstanding stock options and equity incentive awards that are subject solely to time-based vesting;

(iv) payments under the Company’s Supplemental Income Plan;

(v) a lump sum payment equal to the total premiums he would be expected to pay for eighteen (18) months of COBRA coverage and (vi) title to his Company car and a mobile phone.

Stock options (both time-based and performance-based) that are vested on Mr.

Prashad’s separation date will be exercisable for one year following the separation date, or until their expiration date, if shorter.

The Separation Agreement included customary waiver and release provisions in favor of the Company, as well as non-competition, confidentiality, and non-disparagement covenants.

In addition, certain payments and benefits due to Mr.

Prashad under the Separation Agreement are subject to recovery by the Company in accordance with the Company’s compensation Clawback Policy and also upon the occurrence of certain specified events.

Appointment of Interim President and Chief Executive Officer

Until a permanent successor to Mr.

Prashad is appointed, the Board has appointed Janet L.

Matricciani as Interim President and Chief Executive Officer, effective April 13, 2026.

Matricciani, age 58, has served as a business consultant since January 2018 through JLM Consulting LLC.

She also served as President and Chief Operating Officer of AHP Servicing LLC, a mortgage loan product and servicing company, from April 2022 until March 2023.

Prior to that time, Ms.

Matricciani was employed with the Company as President and Chief Executive Officer from 2015 until 2018 and also served as a director and as Chief Operating Officer of the Company from 2014 to 2015.

From 2010 to 2013, Ms.

Matricciani served as the Chief Executive Officer of Antenna International, a leading creator of handheld audio, multimedia and virtual tours for museums, cultural and historic sites, and tourist attractions.

From 2008 to 2010, Ms.

Matricciani served as senior vice president of corporate development for K12 Inc., a technology-based education company.

From 2005 to 2007, Ms.

Matricciani served as executive vice president for Countrywide Financial Corporation.

From 2001 to 2005, Ms.

Matricciani served in various executive-level roles for Capital One Financial Corporation.

Earlier in her career, Ms.

Matricciani worked as a consultant for McKinsey & Company, and Monitor Company.

Matricciani holds Bachelor of Arts and Master of Arts Degrees in Engineering from Trinity College at Cambridge University and a Master of Business Administration Degree from the Wharton School of Business at the University of Pennsylvania.

There are no transactions in which Ms.

Matricciani has an interest requiring disclosure under Item 404(a) of Regulation S-K.

Matricciani has no family relationship with any other director or other executive officer of the Company.

Matricciani entered into an employment agreement, dated April 13, 2026 (the “Employment Agreement”) in connection with her service as Interim President and Chief Executive Officer.

Under the terms of the Employment Agreement, Ms.

Matricciani will receive a salary of $ 83,333 per month for twelve months, a $ 350,000 signing bonus and a stock grant of 7,095 shares based on the closing price of the Company’s common stock on April 13, 2026 of $ 140.95 , which shall vest in twelve equal monthly installments during the term of her Employment Agreement.

She will also be entitled to the same benefits as the Company’s other executive officers, other than a car allowance and participation in the Company’s Supplemental Executive Retirement Plan.

The Employment Agreement has a twelve-month term and is terminable by either party.

In the event the Employment Agreement is terminated by the Company without cause prior to

the end of the twelve-month term, Ms.

Matricciani will be eligible to receive continued payment of the balance of her unpaid salary up through the end of the twelve-month term of the Employment Agreement.

Under the terms of the Employment Agreement, the Company is also required to provide Ms.

Matricciani with an indemnification agreement and cover her under its D&O insurance to the same extent it indemnifies its other executive officers for matters arising out of her service as Interim President and Chief Executive Officer.

Prashad’s departure from the Board, the Board reduced the size of the Board from seven to six directors, as permitted by the Company’s bylaws.

Consent and Limited Modification to Fixed Charge Coverage Ratio Covenant

On May 22, 2026, the Company entered into a Consent and Limited Modification to Fixed Charge Ratio (the "Modification") with Bank of Montreal ("BMO"), as Administrative Agent and Collateral Agent, and the Required Lenders party to the Revolving Credit Agreement dated as of July 22, 2025 (as amended or otherwise modified from time to time), by and among the Company, the lenders from time to time party thereto, and BMO, as Administrative Agent and Collateral Agent.

Pursuant to Section 8.7(b) of the Revolving Credit Agreement, the Company and its Restricted Subsidiaries are required to maintain a ratio of Net Income Available for Fixed Charges to Fixed Charges (the "Financial Covenant") of not less than 2.25 to 1.0 for each fiscal quarter.

The Modification provides for a limited, temporary modification of the Financial Covenant as follows:

2.20 to 1.0 as of the fiscal quarter ending March 31, 2026;

2.10 to 1.0 as of the fiscal quarter ending June 30, 2026;

2.15 to 1.0 as of the fiscal quarter ending September 30, 2026.

Commencing with the fiscal quarter ending December 31, 2026, and for all fiscal quarters thereafter, the Financial Covenant shall revert to its original level of not less than 2.25 to 1.0, without regard to the limited modification set forth in the Modification.

Except as expressly modified by the Modification, the Revolving Credit Agreement remains in full force and effect in accordance with its current terms.

Management is not aware of any other significant events occurring subsequent to the balance sheet date that would have a material effect on the financial statements thereby requiring adjustment or disclosure.

Termination of Interim President and Chief Executive Officer

On June 3, 2026, the Company and Janet L.

Matricciani agreed that Ms.

Matricciani’s role as Interim President and Chief Executive Officer would terminate effective June 3, 2026.

Also effective June 3, 2026, the Company’s Executive Vice President and Chief Operating Officer, Mr.

Tobin Turner, has been designated to serve as the Company’s Principal Executive Officer for SEC reporting purposes.

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

11 unchanged sentences

Our independent registered public accounting firm has audited the Consolidated Financial Statements included in this Annual Report and has issued an attestation report on the effectiveness of our internal control over financial reporting, as stated in their report.

Chad Prashad By:

Chad Prashad John L.

President and Chief Executive Officer Executive Vice President and Chief Financial and Strategy Officer

May 22, 2025 Date:

Tobin Turner By:

Tobin Turner John L.

Executive Vice President and Chief Operating Officer

Executive Vice President and Chief Financial and Strategy Officer

June 4, 2026 Date:

Report of Independent Registered Public Accounting Firm

3 unchanged sentences

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2026, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of March 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated May 22, 2025 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated June 4, 2026, expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting.

Basis for Opinion

11 unchanged sentences

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Allowance for Credit Losses

As described in Notes 1 and 2 to the financial statements, the Company established an allowance for credit losses of $103.3 million as of March 31, 2025, which was estimated using the Company’s current expected credit loss (CECL) model.

As described in Notes 1 and 3 to the consolidated financial statements, the Company established an allowance for credit losses of $112.0 million as of March 31, 2026, which was estimated using the Company’s current expected credit loss (CECL) model.

The Company’s CECL model estimates the allowance for credit losses for each Customer Tenure bucket using a historical migration analysis for the twelve most recent historical twelve-month migration periods.

6 unchanged sentences

Our audit procedures related to the Company’s estimate of qualitative factors and reasonable and supportable forecasts of the allowance for credit losses, included the following, among others:

• We obtained an understanding of the relevant controls related to the allowance for credit losses as of March 31, 2025, and tested such controls for design and operating effectiveness, in particular, those controls over (a) quarterly review and approval of the appropriateness of the key assumptions of the CECL model, and (b) the quarterly management review control providing approval of the allowance for credit losses, both of which cover the Company’s development of qualitative factors and reasonable and supportable forecasts.

• We obtained an understanding of the relevant control related to the allowance for credit losses as of March 31, 2026, and tested such control for design and operating effectiveness, in particular, the control over quarterly management review control and approval of the appropriateness of the key assumptions of the CECL model, and providing approval of the allowance for credit losses, which covers the Company’s development of qualitative factors and reasonable and supportable forecasts.

• We evaluated the reasonableness of management’s methodology, including the relevance of data inputs utilized, in developing qualitative factors and reasonable and supportable forecasts.

• We tested the completeness and accuracy of data inputs utilized by management in developing qualitative factors and reasonable and supportable forecasts by comparing to internal and external source data and documents.

• We evaluated the reasonableness of management’s conclusions regarding whether adjustments to historical migration rates were necessary for qualitative factors and reasonable and supportable forecasts.

7 unchanged sentences

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets as of March 31, 2025 and 2024, and the related consolidated statements of operations, shareholders’ equity and cash flows for each of the three years in the period ended March 31, 2025, and the related notes to the consolidated financial statements and our report dated May 22, 2025 expressed an unqualified opinion.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets as of March 31, 2026 and 2025, and the related consolidated statements of operations, shareholders’ equity and cash flows for each of the three years in the period ended March 31, 2026, and the related notes to the consolidated financial statements and our report dated June 4, 2026 expressed an unqualified opinion.

Basis for Opinion

20 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data