Encore Capital Group Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Encore Capital Group (NASDAQ: ECPG) reported Q1 2026 results with portfolio purchases of $363M, record collections of $718M (up 19% YoY) and diluted EPS of $3.86 (up 100% YoY). Average receivable portfolios totaled $4.404B and ERC was $9.825B.
The company raised full‑year 2026 guidance to ~$2.8B in collections (up 8% YoY) and to $13.00 EPS (+19%); portfolio purchase guidance remains $1.4–$1.5B. Q1 share repurchases totaled $20M.
Positive
- Collections +19% to $718.4M in Q1 2026
- EPS +100% to $3.86 in Q1 2026
- Revenue +21% to $475.4M in Q1 2026
- Raised 2026 collections guidance to ~$2.8B (+8% YoY)
- Raised 2026 EPS guidance to $13.00 (+19%)
- Q1 U.S. MCM purchases of $315.8M, a strong purchasing quarter
Negative
- Operating expenses +11% in Q1 2026 versus prior year
News Market Reaction – ECPG
In the May 7 session, ECPG declined 2.40%, reflecting a moderate negative market reaction. Argus tracked a peak move of +2.9% during that session.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 25 | Earnings release | Positive | +8.1% | Strong 2025 EPS, collections and purchases growth with 2026 guidance initiation. |
| Nov 05 | Earnings release | Positive | +10.5% | Q3 2025 EPS and net income more than doubled on higher collections and purchases. |
| Aug 06 | Earnings release | Positive | +5.4% | Q2 2025 record purchases and collections with EPS up 86% year over year. |
| May 07 | Earnings release | Positive | +23.9% | Q1 2025 record U.S. collections and more than doubled EPS versus prior year. |
| Feb 26 | Earnings release | Negative | -21.9% | Full‑year 2024 net loss driven by goodwill impairment despite strong collections. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have frequently driven strong positive moves, especially when highlighting record collections, raised guidance, or significant EPS growth.
Over the past several quarters, Encore has repeatedly highlighted record or near‑record portfolio purchases and collections, with EPS expanding sharply in Q2 2025, Q3 2025, and full‑year 2025. Guidance has often been raised on the back of stronger collections and expanding Estimated Remaining Collections. One notable exception was full‑year 2024, where a non‑cash goodwill impairment produced a net loss and a negative price reaction. Today’s Q1 2026 results and guidance increase extend the pattern of multi‑year operational growth and guidance upgrades.
Key Terms
non-gaap financial
gaap regulatory
adjusted ebitda financial
net income financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Favorable purchasing conditions continue in U.S. market
- Global portfolio purchases of
$363 million, including$316 million in U.S. - Global collections up
19% to record$718 million - Earnings per share of
$3.86
SAN DIEGO, May 06, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the first quarter ended March 31, 2026.
“Encore delivered another quarter of strong performance in Q1 as our industry leadership and operational improvement remain on full display,” said Ashish Masih, President and Chief Executive Officer. “Our business continues to thrive with solid first quarter portfolio purchases of
“Our MCM business in the U.S. continues to deliver very strong results. Capitalizing on the ongoing attractive market opportunity in the U.S. driven by ample portfolio supply, MCM portfolio purchases in the first quarter were
“Our Cabot business in Europe delivered a solid first quarter. Portfolio purchases of
“As a result of our strong start to the year, we are raising our global collections guidance and now expect our full-year 2026 collections to be approximately
In the first quarter, the company repurchased
Financial Highlights for the First Quarter of 2026:
| Three Months Ended March 31, | ||||||||
| (in thousands, except percentages and earnings per share) | 2026 | 2025 | Change | |||||
| Portfolio purchases(1) | $ | 362,841 | $ | 367,851 | (1 | )% | ||
| Average receivable portfolios(2) | $ | 4,404,473 | $ | 3,864,450 | 14 | % | ||
| Estimated Remaining Collections (ERC) | $ | 9,825,266 | $ | 8,862,661 | 11 | % | ||
| Collections | $ | 718,414 | $ | 604,807 | 19 | % | ||
| Revenues | $ | 475,411 | $ | 392,775 | 21 | % | ||
| Operating expenses | $ | 291,419 | $ | 263,432 | 11 | % | ||
| Net income | $ | 86,243 | $ | 46,796 | 84 | % | ||
| Earnings per share | $ | 3.86 | $ | 1.93 | 100 | % | ||
______________________
(1) Includes U.S. purchases of
(2) Represents the average of receivable portfolios for the quarter (sum of receivable portfolios at the beginning and end of the quarter divided by 2).
Conference Call and Webcast
Encore will host a conference call and slide presentation today, May 6, 2026, at 2:00 p.m. Pacific / 5:00 p.m. Eastern time, to present and discuss first quarter results.
Members of the public are invited to access the live webcast via the Internet by logging in on the Investor Relations page of Encore's website at encorecapital.com. To access the live conference call by telephone, please pre-register using this link. Registrants will receive confirmation with dial-in details.
For those who cannot listen to the live broadcast, a replay of the webcast will be available on the Company's website shortly after the call concludes.
Non-GAAP Financial Measures
This news release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company has included information concerning adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure is a useful indicator of the Company’s ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. Adjusted EBITDA has not been prepared in accordance with GAAP and should not be considered as an alternative to, or more meaningful than, net income and net income per share as indicators of the Company’s operating performance. Further, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. A reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure is below.
About Encore Capital Group, Inc.
Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services for consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers.
Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com.
Forward Looking Statements
The statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results (including purchases and collections), performance, supply and pricing, liquidity, business plans or prospects. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent report on Form 10-K, as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.
Contact:
Bruce Thomas
Encore Capital Group, Inc.
Vice President, Global Investor Relations
bruce.thomas@encorecapital.com
SOURCE: Encore Capital Group, Inc.
FINANCIAL TABLES FOLLOW
| ENCORE CAPITAL GROUP, INC. Condensed Consolidated Statements of Financial Condition (In Thousands, Except Par Value Amounts) (Unaudited) | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 227,204 | $ | 156,784 | |||
| Receivable portfolios, net | 4,437,415 | 4,371,532 | |||||
| Property and equipment, net | 79,292 | 82,080 | |||||
| Other assets | 177,163 | 193,113 | |||||
| Goodwill | 529,487 | 536,291 | |||||
| Total assets | $ | 5,450,561 | $ | 5,339,800 | |||
| Liabilities and Equity | |||||||
| Liabilities: | |||||||
| Accounts payable and accrued liabilities | $ | 252,277 | $ | 230,261 | |||
| Borrowings | 4,033,301 | 4,001,293 | |||||
| Other liabilities | 130,175 | 131,496 | |||||
| Total liabilities | 4,415,753 | 4,363,050 | |||||
| Commitments and Contingencies | |||||||
| Equity: | |||||||
| Convertible preferred stock, | — | — | |||||
| Common stock, | 215 | 217 | |||||
| Additional paid-in capital | — | — | |||||
| Accumulated earnings | 1,167,038 | 1,104,640 | |||||
| Accumulated other comprehensive loss | (132,445 | ) | (128,107 | ) | |||
| Total stockholders’ equity | 1,034,808 | 976,750 | |||||
| Total liabilities and stockholders’ equity | $ | 5,450,561 | $ | 5,339,800 | |||
The following table presents certain assets and liabilities of consolidated variable interest entities (“VIEs”) included in the condensed consolidated statements of financial condition above. Most assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs. The liabilities exclude amounts where creditors or beneficial interest holders have recourse to the general credit of the Company.
| March 31, 2026 | December 31, 2025 | ||||
| Assets | |||||
| Cash and cash equivalents | $ | 50,115 | $ | 40,256 | |
| Receivable portfolios, net | 1,177,046 | 1,151,221 | |||
| Other assets | 4,392 | 3,540 | |||
| Liabilities | |||||
| Accounts payable and accrued liabilities | 2,986 | 3,101 | |||
| Borrowings | 783,444 | 791,182 | |||
| Other liabilities | 1,352 | 2,774 | |||
| ENCORE CAPITAL GROUP, INC. Condensed Consolidated Statements of Income (In Thousands, Except Per Share Amounts) (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Revenues | |||||||
| Portfolio revenue | $ | 390,019 | $ | 345,218 | |||
| Changes in recoveries | 62,740 | 21,464 | |||||
| Total debt purchasing revenue | 452,759 | 366,682 | |||||
| Servicing revenue | 20,638 | 22,547 | |||||
| Other revenues | 2,014 | 3,546 | |||||
| Total revenues | 475,411 | 392,775 | |||||
| Operating expenses | |||||||
| Salaries and employee benefits | 114,541 | 105,932 | |||||
| Cost of legal collections | 89,221 | 68,013 | |||||
| General and administrative expenses | 39,629 | 41,018 | |||||
| Other operating expenses | 34,833 | 34,252 | |||||
| Collection agency commissions | 6,337 | 6,873 | |||||
| Depreciation and amortization | 6,858 | 7,344 | |||||
| Total operating expenses | 291,419 | 263,432 | |||||
| Income from operations | 183,992 | 129,343 | |||||
| Other expense | |||||||
| Interest expense | (73,050 | ) | (70,530 | ) | |||
| Other income | 790 | 1,647 | |||||
| Total other expense | (72,260 | ) | (68,883 | ) | |||
| Income before income taxes | 111,732 | 60,460 | |||||
| Provision for income taxes | (25,489 | ) | (13,664 | ) | |||
| Net income | $ | 86,243 | $ | 46,796 | |||
| Earnings per share: | |||||||
| Basic | $ | 3.97 | $ | 1.96 | |||
| Diluted | $ | 3.86 | $ | 1.93 | |||
| Weighted average shares outstanding: | |||||||
| Basic | 21,728 | 23,879 | |||||
| Diluted | 22,320 | 24,269 | |||||
| ENCORE CAPITAL GROUP, INC. Condensed Consolidated Statements of Cash Flows (Unaudited, In Thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Operating activities: | |||||||
| Net income | $ | 86,243 | $ | 46,796 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 6,858 | 7,344 | |||||
| Other non-cash interest expense, net | 2,537 | 3,544 | |||||
| Stock-based compensation expense | 4,575 | 3,424 | |||||
| Changes in recoveries | (62,740 | ) | (21,464 | ) | |||
| Other, net | 4,681 | 1,737 | |||||
| Changes in operating assets and liabilities | |||||||
| Other assets | 4,892 | (3,499 | ) | ||||
| Accounts payable, accrued liabilities and other liabilities | 35,280 | 7,401 | |||||
| Net cash provided by operating activities | 82,326 | 45,283 | |||||
| Investing activities: | |||||||
| Purchases of receivable portfolios, net of put-backs | (359,463 | ) | (362,712 | ) | |||
| Collections applied to receivable portfolios | 328,395 | 259,589 | |||||
| Purchases of property and equipment | (4,856 | ) | (6,990 | ) | |||
| Other, net | 8,517 | 9,835 | |||||
| Net cash used in investing activities | (27,407 | ) | (100,278 | ) | |||
| Financing activities: | |||||||
| Payment of loan and debt refinancing costs | (1,109 | ) | (255 | ) | |||
| Proceeds from credit facilities | 358,021 | 246,426 | |||||
| Repayment of credit facilities | (304,185 | ) | (185,831 | ) | |||
| Repurchase and retirement of common stock | (20,092 | ) | (10,004 | ) | |||
| Other, net | (14,026 | ) | (9,999 | ) | |||
| Net cash provided by financing activities | 18,609 | 40,337 | |||||
| Net increase (decrease) in cash and cash equivalents | 73,528 | (14,658 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (3,108 | ) | 1,910 | ||||
| Cash and cash equivalents, beginning of period | 156,784 | 199,865 | |||||
| Cash and cash equivalents, end of period | $ | 227,204 | $ | 187,117 | |||
| Supplemental disclosures of cash flow information: | |||||||
| Cash paid for interest | $ | 37,343 | $ | 41,303 | |||
| Cash paid for income taxes, net of refunds | 860 | 1,247 | |||||
| Supplemental schedule of non-cash investing activities: | |||||||
| Receivable portfolios transferred to real estate owned | $ | 1,020 | $ | 1,040 | |||
| ENCORE CAPITAL GROUP, INC. Supplemental Financial Information Reconciliation of Non-GAAP Metrics | |||||||
| Adjusted EBITDA | |||||||
| Three Months Ended March 31, | |||||||
| (in thousands, unaudited) | 2026 | 2025 | |||||
| GAAP net income, as reported | $ | 86,243 | $ | 46,796 | |||
| Adjustments: | |||||||
| Interest expense | 73,050 | 70,530 | |||||
| Interest income | (1,094 | ) | (1,546 | ) | |||
| Provision for income taxes | 25,489 | 13,664 | |||||
| Depreciation and amortization | 6,858 | 7,344 | |||||
| Stock-based compensation expense | 4,575 | 3,424 | |||||
| Acquisition, integration and restructuring related expenses(1) | 1,465 | 248 | |||||
| Adjusted EBITDA | $ | 196,586 | $ | 140,460 | |||
| Collections applied to principal balance(2) | $ | 269,469 | $ | 244,300 | |||
________________________
(1) Amount represents acquisition, integration and restructuring related expenses. We adjust for this amount because we believe these expenses are not indicative of ongoing operations; therefore, adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results.
(2) Amount represents (a) gross collections from receivable portfolios less (b) debt purchasing revenue, plus (c) proceeds applied to basis from sales of real estate owned (“REO”) assets and, when applicable, other receivable portfolios. A reconciliation of “collections applied to receivable portfolios, net” to “collections applied to principal balance” is available in the Form 10-Q for the period ending March 31, 2026.
