Net income surges 285% to $6.1M as credit quality improves; covenant relief signals stress

Filed August 6, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 6, 2025 · ~2 min read

Key Changes

• high

  Net income jumped 285% YoY to $6.1M in Q1 FY2027, driven by a 13% decline in provision for credit losses to $43.8M as net charge-offs improved to 18.2% of average loans from 19.4% and early-stage delinquency fell to 18.1% from 19.2%.

  MD&A: Net Income & Credit Quality verify on EDGAR →
• high

  Company obtained temporary covenant relief on its fixed charge coverage ratio (lowered from 2.25:1.0 to 2.10:1.0 for Q1 FY2027, reverting to 2.25:1.0 in Q3 FY2027), indicating near-term pressure on earnings relative to fixed charges despite current compliance.

  Notes: Revolving Credit Facility Covenant Modification verify on EDGAR →
• high

  Debt-to-equity ratio rose to 1.6:1 from 1.1:1 a year earlier, driven by a $60M share repurchase from Prescott affiliates (the controlling shareholder group, still owning ~46.3%) and higher average debt outstanding ($582.3M vs $456.2M).

  MD&A: Capital Structure & Related-Party Buyback verify on EDGAR →