Encore Capital Group Announces Third Quarter 2026 Financial Results

Encore now expects 2026 EPS growth of over 40%, alongside higher portfolio-purchase and collections guidance.

Rhea-AI Summary

Encore Capital Group (NASDAQ: ECPG) reported third-quarter 2026 diluted earnings per share of $5.57, up 76% from a year earlier. Revenue rose 18% to $544.541 million, while GAAP net income increased 66% to $124.013 million. Global collections reached a record $754 million, up 14%, and portfolio purchases increased 13% to $389.655 million.

U.S. collections rose 17% to $589 million; European collections increased 2% to $164 million. Encore raised its 2026 outlook, expecting portfolio purchases of $1.50 billion–$1.55 billion, collections of $2.90 billion–$2.95 billion and EPS of $15.50–$16.00. It repurchased approximately $27 million of shares during the quarter. Operating expenses rose 9% to $313.936 million. Borrowings reached $4.237800 billion at September 30, versus $4.001293 billion at December 31, 2025.

21 points · 1 major

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0 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Full-year EPS guidance raised; Encore expects $15.50–$16.00, over 40% above 2025.
• Moderate pointThird-quarter diluted EPS rose 76% to $5.57 from $3.17 a year earlier.
• Moderate pointThird-quarter GAAP net income increased 66% to $124.013 million year over year.
• Moderate pointThird-quarter revenue grew 18% to $544.541 million year over year.
• Moderate pointGlobal third-quarter collections increased 14% to a record $754 million year over year.
• Moderate pointGlobal third-quarter portfolio purchases increased 13% to $389.655 million year over year.
• Moderate pointEstimated remaining collections increased 10% to $10.451677 billion from the prior-year quarter.
• Moderate pointAverage receivable portfolios increased 11% to $4.686559 billion from the prior-year quarter.
• Moderate pointThird-quarter operating income rose to $230.605 million from $173.178 million a year earlier.
• Moderate pointNine-month share repurchases and retirements totaled $73.993 million, versus $35.329 million a year earlier. 3.5% of market cap
• Moderate pointNine-month operating cash flow increased to $159.630 million from $136.388 million a year earlier.

10 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year collections guidance raised; Encore expects $2.90 billion–$2.95 billion, representing 12–14% annual growth.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year portfolio-purchase guidance raised; Encore expects $1.50 billion–$1.55 billion.
• Minor pointU.S. third-quarter collections increased 17% to a record $589 million year over year.
• Minor pointEuropean third-quarter collections increased 2% to $164 million year over year.
• Minor pointU.S. third-quarter portfolio purchases reached $310.0 million, versus $261.1 million a year earlier.
• Minor pointThird-quarter interest expense fell to $72.299 million from $74.242 million a year earlier.
• Minor pointShare repurchases totaled approximately $27 million in the third quarter.
• Minor pointNine-month revenue rose to $1.511824 billion from $1.295250 billion a year earlier.
• Minor pointNine-month net income rose to $274.255 million from $180.177 million a year earlier.
• Minor pointNine-month diluted EPS increased to $12.21 from $7.57 a year earlier.

Negative

• Moderate pointBorrowings increased to $4.237800 billion at September 30, 2026, from $4.001293 billion at December 31, 2025.
• Moderate pointThird-quarter operating expenses increased 9% to $313.936 million year over year.
• Moderate pointNine-month debt-extinguishment loss totaled $30.533 million, versus none a year earlier. 1.4% of market cap
• Moderate pointNine-month loan and debt refinancing payments increased to $39.830 million from $3.892 million a year earlier. 1.9% of market cap
• Minor pointEuropean third-quarter portfolio purchases fell to $79.7 million from $84.9 million a year earlier.

3 minor points

• Minor pointThird-quarter servicing revenue fell to $17.474 million from $22.175 million a year earlier.
• Minor pointThird-quarter other revenue fell to $1.610 million from $4.416 million a year earlier.
• Minor pointNine-month operating expenses increased to $910.325 million from $841.996 million a year earlier.

News Explained

At September 30, 2026, balance-sheet cash was $158,425 thousand, compared with $4,237,800 thousand of borrowings.

Encore Capital Group has reported its third-quarter 2026 results; common shares issued and outstanding were 20,942 thousand at September 30, 2026, down from 21,688 thousand at December 31, 2025. For holders whose share count did not change, the lower share count means a larger percentage ownership.

Key Figures

Global portfolio purchases: $390 million Global collections: $754 million, up 14% GAAP net income: $124 million +4 more

Global portfolio purchases

$390 million

Third quarter 2026

Global collections

$754 million, up 14%

Third quarter 2026, year over year

GAAP net income

$124 million

Third quarter 2026

Earnings per share

$5.57, up 76%

Third quarter 2026, compared with a year ago

2026 global portfolio purchases guidance

$1.50 billion–$1.55 billion

Raised full-year 2026 guidance

2026 global collections guidance

$2.90 billion–$2.95 billion; 12–14% year-over-year growth

Raised full-year 2026 guidance

2026 EPS guidance

$15.50–$16.00 per share

Raised full-year 2026 guidance; increase of over 40% compared to 2025

Previous Earnings Reports

1 past event · Latest: Aug 05

Same Type 1 event

1. Aug 05

   Q2 earnings

   24h Move

   +5.6%

   Q2 results raised 2026 collections and EPS guidance, establishing ranges superseded by this update.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap, convertible preferred stock, variable interest entities

4 terms

gaap financial

"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”)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"this non-GAAP financial measure, as presented by the Company, may not be comparable"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

convertible preferred stock financial

"Convertible preferred stock, $0.01 par value, 5,000 shares authorized"

Convertible preferred stock is a special class of company shares that pays priority, usually fixed, payments to holders and can be exchanged later for a set number of common shares. It matters to investors because it combines steady income and added protection with the chance to share in a company’s upside; think of it as a hybrid between a bond that pays regularly and an option to convert into growth-oriented stock, where the conversion rules influence both potential gains and how much common shareholders’ ownership may be reduced.

variable interest entities financial

"assets and liabilities of consolidated variable interest entities (“VIEs”)"

A variable interest entity (VIE) is a business that a company controls through contracts or special arrangements instead of owning a majority of its shares, like steering a puppet without holding its ticket. Investors care because these arrangements can hide who really bears the financial risks and rewards, affect how assets and liabilities appear on financial statements, and create extra legal or enforcement uncertainty that can change the value and risk of an investment.

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• Favorable purchasing conditions continue in U.S. market
• Global portfolio purchases of $390 million, including $310 million in U.S.
• Global collections up 14% to record $754 million
• Earnings per share up 76% to $5.57

SAN DIEGO, Nov. 04, 2026 (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, 2026.

“Encore delivered an exceptional third quarter, both financially and operationally, highlighted by strong portfolio purchasing and record global collections,” said Ashish Masih, President and Chief Executive Officer. “Third quarter global portfolio purchases were $390 million and global collections were a record $754 million, up 14% compared to a year ago. This collections performance helped drive GAAP net income in the third quarter of $124 million or $5.57 per share, up 76% compared to $3.17 per share a year ago.”

“MCM, our U.S. business, continues to set the pace. The U.S. market remains highly attractive for us, supported by continued robust portfolio supply, and we are capitalizing on that opportunity with discipline and conviction. MCM purchased $310 million of portfolios in the third quarter and delivered record collections of $589 million, up 17% compared to the third quarter 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.”

“In Europe, our Cabot business delivered a solid third quarter. Portfolio purchases were $80 million while collections of $164 million were up 2% compared to the third quarter last year.”

“Given the strength and momentum of our business, we are raising our full-year 2026 guidance. We now anticipate global portfolio purchases to be in a range between $1.50 billion and $1.55 billion, and global collections to be in a range between $2.90 billion and $2.95 billion, reflecting year-over-year growth of 12-14%. Additionally, we now expect our EPS in 2026 to be in a range between $15.50 and $16.00 per share, an increase of over 40% compared to 2025. 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 approximately $27 million of its shares of common stock, bringing total repurchases through the first nine months of 2026 to approximately $73 million.

Financial Highlights for the Third Quarter of 2026:

	Three Months Ended September 30,
(in thousands, except percentages and earnings per share)		2026			2025		Change
Portfolio purchases(1)	$	389,655		$	346,069		13	%
Average receivable portfolios(2)	$	4,686,559		$	4,227,398		11	%
Estimated Remaining Collections (ERC)	$	10,451,677		$	9,489,772		10	%
Collections	$	753,845		$	663,018		14	%
Revenues	$	544,541		$	460,353		18	%
Operating expenses	$	313,936		$	287,175		9	%
Net income	$	124,013		$	74,660		66	%
Earnings per share	$	5.57		$	3.17		76	%

______________________
(1)	Includes U.S. purchases of $310.0 million and $261.1 million, and Europe purchases of $79.7 million and $84.9 million in Q3 2026 and Q3 2025, 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 4, 2026, 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, collections and earnings per share), 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, 2026				December 31, 2025
Assets
Cash and cash equivalents	$	158,425			$	156,784
Receivable portfolios, net		4,763,412				4,371,532
Property and equipment, net		78,285				82,080
Other assets		154,170				193,113
Goodwill		528,415				536,291
Total assets	$	5,682,707			$	5,339,800
Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities	$	257,219			$	230,261
Borrowings		4,237,800				4,001,293
Other liabilities		109,006				131,496
Total liabilities		4,604,025				4,363,050
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, 20,942 and 21,688 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively		209				217
Additional paid-in capital		—				—
Accumulated earnings		1,202,720				1,104,640
Accumulated other comprehensive loss		(124,247	)			(128,107	)
Total stockholders’ equity		1,078,682				976,750
Total liabilities and stockholders’ equity	$	5,682,707			$	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.

	September 30, 2026			December 31, 2025
Assets
Cash and cash equivalents	$	48,558		$	40,256
Receivable portfolios, net		1,281,675			1,151,221
Other assets		5,584			3,540
Liabilities
Accounts payable and accrued liabilities		2,433			3,101
Borrowings		784,567			791,182
Other liabilities		50			2,774

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,
		2026				2025				2026				2025
Revenues
Portfolio revenue	$	414,414			$	370,126			$	1,204,675			$	1,076,518
Changes in recoveries		111,043				63,636				244,898				140,699
Total debt purchasing revenue		525,457				433,762				1,449,573				1,217,217
Servicing revenue		17,474				22,175				56,340				67,022
Other revenues		1,610				4,416				5,911				11,011
Total revenues		544,541				460,353				1,511,824				1,295,250
Operating expenses
Salaries and employee benefits		117,470				117,118				351,596				340,788
Cost of legal collections		100,400				80,010				286,220				227,672
General and administrative expenses		43,596				39,220				121,949				121,565
Other operating expenses		39,344				37,056				111,008				108,298
Collection agency commissions		6,016				6,601				18,472				21,848
Depreciation and amortization		7,110				7,170				21,080				21,825
Total operating expenses		313,936				287,175				910,325				841,996
Income from operations		230,605				173,178				601,499				453,254
Other expense
Interest expense		(72,299	)			(74,242	)			(219,256	)			(218,715	)
Loss on extinguishment of debt		—				—				(30,533	)			—
Other income		2,482				929				3,657				3,802
Total other expense		(69,817	)			(73,313	)			(246,132	)			(214,913	)
Income before income taxes		160,788				99,865				355,367				238,341
Provision for income taxes		(36,775	)			(25,205	)			(81,112	)			(58,164	)
Net income	$	124,013			$	74,660			$	274,255			$	180,177
Earnings per share:
Basic	$	5.80			$	3.22			$	12.73			$	7.66
Diluted	$	5.57			$	3.17			$	12.21			$	7.57
Weighted average shares outstanding:
Basic		21,364				23,222				21,547				23,534
Diluted		22,255				23,520				22,454				23,789

ENCORE CAPITAL GROUP, INC. Condensed Consolidated Statements of Cash Flows (Unaudited, In Thousands)
	Nine Months Ended September 30,
		2026				2025
Operating activities:
Net income	$	274,255			$	180,177
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		21,080				21,825
Loss on extinguishment of debt		30,533				—
Other non-cash interest expense, net		7,585				11,151
Stock-based compensation expense		15,320				13,048
Changes in recoveries		(244,898	)			(140,699	)
Other, net		11,585				7,231
Changes in operating assets and liabilities
Other assets		12,485				17,316
Accounts payable, accrued liabilities and other liabilities		31,685				26,339
Net cash provided by operating activities		159,630				136,388
Investing activities:
Purchases of receivable portfolios, net of put-backs		(1,187,072	)			(1,066,223	)
Collections applied to receivable portfolios		1,004,448				846,292
Purchases of property and equipment		(18,051	)			(19,338	)
Other, net		25,037				23,720
Net cash used in investing activities		(175,638	)			(215,549	)
Financing activities:
Payment of loan and debt refinancing costs		(39,830	)			(3,892	)
Proceeds from credit facilities		1,297,830				812,751
Repayment of credit facilities		(946,236	)			(699,452	)
Proceeds from senior secured notes		1,128,676				—
Repayment of senior secured notes		(983,540	)			—
Payments to settle convertible senior notes		(367,855	)			—
Proceeds from convertible hedge instruments		31,780				—
Repurchase and retirement of common stock		(73,993	)			(35,329	)
Other, net		(26,256	)			(23,522	)
Net cash provided by financing activities		20,576				50,556
Net increase (decrease) in cash and cash equivalents		4,568				(28,605	)
Effect of exchange rate changes on cash and cash equivalents		(2,927	)			1,228
Cash and cash equivalents, beginning of period		156,784				199,865
Cash and cash equivalents, end of period	$	158,425			$	172,488
Supplemental disclosures of cash flow information:
Cash paid for interest	$	183,459			$	172,756
Cash paid for income taxes, net of refunds		43,840				40,174
Supplemental schedule of non-cash investing activities:
Receivable portfolios transferred to real estate owned	$	2,617			$	2,960

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)		2026				2025				2026				2025
GAAP net income, as reported	$	124,013			$	74,660			$	274,255			$	180,177
Adjustments:
Interest expense		72,299				74,242				219,256				218,715
Interest income		(1,215	)			(1,027	)			(3,401	)			(3,935	)
Provision for income taxes		36,775				25,205				81,112				58,164
Depreciation and amortization		7,110				7,170				21,080				21,825
Stock-based compensation expense		4,702				4,341				15,320				13,048
Acquisition, integration and restructuring related expenses(1)		1,487				165				6,165				1,455
Loss on extinguishment of debt		—				—				30,533				—
Adjusted EBITDA	$	245,171			$	184,756			$	644,320			$	489,449
Collections applied to principal balance(2)	$	231,484			$	236,293			$	770,833			$	725,270

________________________
(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 September 30, 2026.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Encore Capital Group's third-quarter 2026 earnings?

Encore reported $124.013 million in GAAP net income and diluted EPS of $5.57 for the quarter ended September 30, 2026. Net income increased 66% and diluted EPS rose 76% from the prior-year quarter. Revenue increased 18% to $544.541 million.

What is Encore Capital Group's updated 2026 guidance?

Encore expects full-year 2026 EPS of $15.50–$16.00, global collections of $2.90 billion–$2.95 billion and portfolio purchases of $1.50 billion–$1.55 billion. The raised outlook implies collections growth of 12–14% and EPS growth of over 40% compared with 2025.