Encore Capital Group Announces Third Quarter 2025 Financial Results

Rhea-AI Summary

Encore Capital Group (NASDAQ: ECPG) reported third-quarter 2025 results on Nov. 5, 2025, with portfolio purchases of $346.1M (up 23%) and collections of $663.0M (up 20%), including U.S. collections of $502M (record). Revenues were $460.4M (+25%) and net income was $74.7M (+144%), producing earnings per share of $3.17 versus $1.26 a year ago (+152%).

The company repurchased ~$60M year-to-date and the board authorized an additional $300M repurchase capacity. Average receivable portfolios rose to $4.23B (+16%) and Estimated Remaining Collections were $9.49B (+10%). Full-year 2025 collections guidance was raised to approximately $2.55B; portfolio purchase guidance remains unchanged but expected to exceed 2024 purchases of $1.35B.

Positive

• Portfolio purchases +23% to $346.1M in Q3 2025
• Collections +20% to $663.0M in Q3 2025 (U.S. record $502M)
• Earnings per share $3.17, up 152% year-over-year
• Board authorized $300M additional share repurchase program

Negative

• Operating expenses increased by 10% year-over-year in Q3 2025
• Estimated Remaining Collections (ERC) grew only 10% to $9.49B

Insights

Credit/Financial Analyst

Strong quarter: record collections, rising purchases, and a sharp EPS lift driven by operational execution and share buybacks.

Encore shows clear revenue momentum with global collections up 20% to $663,018 and portfolio purchases up 23% to $346,069, supporting a 152% jump in earnings per share to $3.17. Average receivable portfolios grew 16% to $4,227,398, and Estimated Remaining Collections rose 10% to $9,489,772, indicating larger asset scale and higher near‑term cash conversion.

Key dependencies and risks include the sustainability of elevated collections rates in the U.S. MCM business and the pace of portfolio purchasing; the company notes MCM purchases of $261.1 million and Cabot purchases of $84.9. Operating expenses climbed 10%, so margin leverage depends on continued outperformance of collections versus expense growth. Management also returned capital via ~$60 million repurchases year‑to‑date and a new $300 million authorization, which supports per‑share metrics but reduces liquidity available for purchases.

Watch near term results and guidance execution: confirm full‑year collections trending to ~$2.55 billion as guided for 2025 and quarterly collections/purchase cadence in the next Q4 2025. Monitor operating expense trajectory relative to collections and the pace of repurchases against purchasing needs over the coming quarters.

• Global portfolio purchases up 23% to $346 million, including $261 million in U.S.
• Global collections up 20% to record $663 million, including $502 million in U.S. 
• Earnings per share of $3.17
• Approximately $60 million share repurchases year-to-date; $300 million repurchase program reauthorization

SAN DIEGO, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the third quarter ended September 30, 2025.

“Encore delivered another quarter of strong performance in Q3 as our industry leadership and operational improvement become increasingly evident in our results,” said Ashish Masih, President and Chief Executive Officer. “Portfolio purchases of $346 million were up 23% compared to the third quarter last year and record collections of $663 million were up 20%. This collections performance helped earnings increase sharply, with third quarter earnings per share of $3.17 up 152% compared to $1.26 per share a year ago.”

“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 third quarter were $261 million, up 13% compared to the year ago quarter. MCM also delivered record collections of $502 million in the third quarter, up 25% compared to Q3 a year ago. This exceptional collections performance is the result of strong execution and continued significant portfolio purchasing as well as the deployment of new technologies, enhanced digital capabilities and continued operational innovation.”

“Our Cabot business in Europe delivered a solid third quarter. Portfolio purchases of $85 million were higher than Cabot’s historical trend due to spot market opportunities while collections of $160 million were up 8% compared to the third quarter last year.”

“As a result of our strong performance so far this year and our continued investment and operational execution, we are again raising our global collections guidance and now expect our full-year 2025 collections to be approximately $2.55 billion, reflecting year-over-year growth of 18%. Our guidance for portfolio purchasing remains unchanged as we still anticipate our global portfolio purchases this year will exceed the $1.35 billion of purchases we made in 2024 as MCM is poised to surpass their record level of purchases of a year ago. As always, we remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore their financial health,” said Masih.

In the third quarter, the company repurchased $10 million of its shares of common stock. The company  also repurchased nearly $25 million of its shares in the fourth quarter to date, bringing its total repurchases to approximately $60 million year-to-date. The company’s board recently authorized a $300 million addition to its existing share repurchase program.

Financial Highlights for the Third Quarter of 2025:

	Three Months Ended September 30,
(in thousands, except percentages and earnings per share)	2025			2024			Change
Portfolio purchases(1)	$	346,069		$	282,485		23%
Average receivable portfolios(2)	$	4,227,398		$	3,651,291		16%
Estimated Remaining Collections (ERC)	$	9,489,772		$	8,648,886		10%
Collections	$	663,018		$	550,268		20%
Revenues	$	460,353		$	367,071		25%
Operating expenses	$	287,175		$	260,981		10%
Net income	$	74,660		$	30,643		144%
Earnings per share	$	3.17		$	1.26		152%

______________________

(1)	Includes U.S. purchases of $261.1 million and $230.2 million, and Europe purchases of $84.9 million and $52.3 million in Q3 2025 and Q3 2024, respectively.
(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, November 5, 2025, at 2:00 p.m. Pacific / 5:00 p.m. Eastern time, to present and discuss third 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)
	September 30, 2025				December 31, 2024
Assets
Cash and cash equivalents	$	172,488			$	199,865
Receivable portfolios, net		4,270,016				3,776,369
Property and equipment, net		82,041				80,597
Other assets		197,772				225,090
Goodwill		535,626				507,808
Total assets	$	5,257,943			$	4,789,729
Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities	$	259,884			$	233,545
Borrowings		3,933,858				3,672,762
Other liabilities		111,287				116,091
Total liabilities		4,305,029				4,022,398
Commitments and Contingencies
Equity:
Convertible preferred stock, $0.01 par value, 5,000 shares authorized, no shares issued and outstanding		—				—
Common stock, $0.01 par value, 75,000 shares authorized, 22,854 and 23,691 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively		229				237
Additional paid-in capital		—				19,297
Accumulated earnings		1,083,975				909,927
Accumulated other comprehensive loss		(131,290	)			(162,130	)
Total stockholders’ equity		952,914				767,331
Total liabilities and stockholders’ equity	$	5,257,943			$	4,789,729

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.

	September 30, 2025			December 31, 2024
Assets
Cash and cash equivalents	$	35,300		$	23,875
Receivable portfolios, net		1,009,105			895,704
Other assets		3,972			3,699
Liabilities
Accounts payable and accrued liabilities		3,034			2,946
Borrowings		692,416			599,830
Other liabilities		2,986			887

ENCORE CAPITAL GROUP, INC.
Condensed Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
(Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Revenues
Portfolio revenue	$	370,126			$	328,119			$	1,076,518			$	965,901
Changes in recoveries		63,636				12,675				140,699				6,020
Total debt purchasing revenue		433,762				340,794				1,217,217				971,921
Servicing revenue		22,175				22,772				67,022				64,258
Other revenues		4,416				3,505				11,011				14,563
Total revenues		460,353				367,071				1,295,250				1,050,742
Operating expenses
Salaries and employee benefits		117,118				107,502				340,788				318,294
Cost of legal collections		80,010				67,339				227,672				190,309
General and administrative expenses		39,220				38,808				121,565				111,828
Other operating expenses		37,056				31,804				108,298				93,016
Collection agency commissions		6,601				7,370				21,848				22,308
Depreciation and amortization		7,170				8,158				21,825				23,467
Total operating expenses		287,175				260,981				841,996				759,222
Income from operations		173,178				106,090				453,254				291,520
Other expense
Interest expense		(74,242	)			(66,906	)			(218,715	)			(184,047	)
Other income		929				1,578				3,802				6,291
Total other expense		(73,313	)			(65,328	)			(214,913	)			(177,756	)
Income before income taxes		99,865				40,762				238,341				113,764
Provision for income taxes		(25,205	)			(10,119	)			(58,164	)			(27,701	)
Net income	$	74,660			$	30,643			$	180,177			$	86,063
Earnings per share:
Basic	$	3.22			$	1.28			$	7.66			$	3.61
Diluted	$	3.17			$	1.26			$	7.57			$	3.54
Weighted average shares outstanding:
Basic		23,222				23,912				23,534				23,859
Diluted		23,520				24,407				23,789				24,324

ENCORE CAPITAL GROUP, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited, In Thousands)
	Nine Months Ended September 30,
	2025				2024
Operating activities:
Net income	$	180,177			$	86,063
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		21,825				23,467
Other non-cash interest expense, net		11,151				12,379
Stock-based compensation expense		13,048				11,731
Changes in recoveries		(140,699	)			(6,020	)
Other, net		7,231				9,195
Changes in operating assets and liabilities
Other assets		17,316				(35,277	)
Accounts payable, accrued liabilities and other liabilities		26,339				31,086
Net cash provided by operating activities		136,388				132,624
Investing activities:
Purchases of receivable portfolios, net of put-backs		(1,066,223	)			(844,868	)
Collections applied to receivable portfolios		846,292				641,982
Purchases of property and equipment		(19,338	)			(20,451	)
Other, net		23,720				47,632
Net cash used in investing activities		(215,549	)			(175,705	)
Financing activities:
Payment of loan and debt refinancing costs		(3,892	)			(18,164	)
Proceeds from credit facilities		812,751				458,844
Repayment of credit facilities		(699,452	)			(1,292,578	)
Proceeds from senior secured notes		—				1,000,000
Repayment of senior secured notes		—				(29,310	)
Repurchase and retirement of common stock		(35,329	)			—
Other, net		(23,522	)			11,695
Net cash provided by financing activities		50,556				130,487
Net (decrease) increase in cash and cash equivalents		(28,605	)			87,406
Effect of exchange rate changes on cash and cash equivalents		1,228				1,583
Cash and cash equivalents, beginning of period		199,865				158,364
Cash and cash equivalents, end of period	$	172,488			$	247,353
Supplemental disclosures of cash flow information:
Cash paid for interest	$	172,756			$	138,951
Cash paid for income taxes, net of refunds		40,174				61,255
Supplemental schedule of non-cash investing activities:
Receivable portfolios transferred to real estate owned	$	2,960			$	4,617

ENCORE CAPITAL GROUP, INC.
Supplemental Financial Information
Reconciliation of Non-GAAP Metrics
Adjusted EBITDA
	Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, unaudited)	2025				2024				2025				2024
GAAP net income, as reported	$	74,660			$	30,643			$	180,177			$	86,063
Adjustments:
Interest expense		74,242				66,906				218,715				184,047
Interest income		(1,027	)			(1,909	)			(3,935	)			(5,037	)
Provision for income taxes		25,205				10,119				58,164				27,701
Depreciation and amortization		7,170				8,158				21,825				23,467
Stock-based compensation expense		4,341				3,737				13,048				11,731
Net loss (gain) on derivative instruments(1)		—				7				—				(267	)
Acquisition, integration and restructuring related expenses(2)		165				162				1,455				4,364
Adjusted EBITDA	$	184,756			$	117,823			$	489,449			$	332,069
Collections applied to principal balance(3)	$	236,293			$	223,292			$	725,270			$	666,766

________________________

(1)	Amount represents gain or loss recognized on derivative instruments that are not designated as hedging instruments or gain or loss recognized on derivative instruments upon dedesignation of hedge relationships. We adjust for this amount because we believe the gain or loss on derivative contracts is not indicative of ongoing operations.
(2)	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.
(3)	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 September 30, 2025.

FAQ

What were Encore Capital Group (ECPG) Q3 2025 collections and how did they compare year-over-year?

Encore reported $663.0M in collections for Q3 2025, up 20% versus Q3 2024.

How much did ECPG repurchase in shares year-to-date and what new authorization was approved on Nov. 5, 2025?

Year-to-date repurchases totaled approximately $60M, and the board authorized an additional $300M repurchase program.

What was Encore's reported earnings per share (EPS) for Q3 2025 and the year-over-year change?

Encore reported $3.17 EPS for Q3 2025, an increase of 152% from $1.26 in Q3 2024.

Did Encore change its full-year 2025 guidance after the Q3 release?

Encore raised full-year collections guidance to approximately $2.55B while leaving portfolio purchase guidance unchanged.

What were Encore's Q3 2025 portfolio purchases by region (U.S. and Europe)?

Q3 2025 portfolio purchases were $261.1M in the U.S. and $84.9M in Europe.

When is Encore's Q3 2025 earnings webcast and where can investors access it?

The Q3 2025 webcast was scheduled for Nov. 5, 2025 at 2:00 p.m. PT / 5:00 p.m. ET and is available on Encore's investor relations website.