Encore Capital raises 2026 EPS outlook to $15.50–$16.00
The company now expects full-year 2026 EPS of $15.50 to $16.00 per share, over 40% above 2025.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Encore Capital Group (ECPG) reported third-quarter 2026 revenue of $544.5 million, up 18% from a year earlier, and net income of $124.0 million, up 66%. Diluted earnings per share were $5.57, up 76% from $3.17. Global collections reached $753.8 million, up 14%, while portfolio purchases were $389.7 million, including $310.0 million in the U.S. and $79.7 million in Europe.
The company raised its full-year 2026 outlook: global portfolio purchases of $1.50 billion to $1.55 billion, global collections of $2.90 billion to $2.95 billion, reflecting year-over-year growth of 12-14%, and EPS of $15.50 to $16.00 per share, an increase of over 40% compared with 2025. It repurchased approximately $27 million of common stock during Q3 and approximately $73 million through the first nine months. Nine-month operating cash flow was $159.6 million, compared with $136.4 million in 2025.
4 points · 1 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 EPS guidance rose to $15.50–$16.00 per share, over 40% above 2025.
- Moderate pointRevenue rose 18% to $544.5 million in Q3 2026.
- Moderate pointNet income rose 66% to $124.0 million in Q3 2026.
- Moderate pointRecord global collections reached $753.8 million, up 14% year over year.
Negative
- None.
Filing Explained
Encore’s quarter-end balance sheet shows fewer shares outstanding but higher borrowings than at year-end 2025.
This Form 8-K furnishes Encore’s third-quarter results; its balance sheet reports 20,942 thousand common shares issued and outstanding at
Reported borrowings were
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $544.5 million
Net income: $124.0 million
Diluted earnings per share: $5.57 per share
+4 more
7 metrics
Revenue
$544.5 million
Third quarter 2026; up 18% year over year
Net income
$124.0 million
Third quarter 2026; up 66% year over year
Diluted earnings per share
$5.57 per share
Third quarter 2026; up 76% from $3.17 in Q3 2025
Global collections
$753.8 million
Third quarter 2026; record and up 14% year over year
Portfolio purchases
$389.7 million
Third quarter 2026
Adjusted EBITDA
$245.2 million
Third quarter 2026; non-GAAP measure
Full-year 2026 EPS guidance
$15.50 to $16.00 per share
The company said this represents an increase of over 40% compared with 2025
Key Terms
Estimated Remaining Collections (ERC), Adjusted EBITDA, variable interest entities (VIEs), collections applied to principal balance
4 terms
Estimated Remaining Collections (ERC) financial
"Estimated Remaining Collections (ERC)"
Adjusted EBITDA financial
"Reconciliation of Non-GAAP Metrics Adjusted EBITDA"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
variable interest entities (VIEs) financial
"consolidated variable interest entities (“VIEs”)"
A variable interest entity (VIE) is a business structure where one party controls another company’s operations and economic benefits through contracts rather than majority ownership, often used when direct ownership is restricted. Think of it like having power of attorney over a business: you run it and get the profits, but you don’t hold the legal title. For investors this matters because VIEs can concentrate legal and regulatory risk and may limit shareholders’ direct rights to assets, which can affect valuation and stability.
collections applied to principal balance financial
"Collections applied to principal balance"
Earnings Snapshot
Revenue: $544.5 million · Guidance included
Third quarter 2026
Revenue
$544.5 million
up 18% year over year
Net income
$124.0 million
up 66% year over year
Diluted earnings per share
$5.57 per share
up 76% from $3.17 per share in Q3 2025
Global collections
$753.8 million
up 14% year over year
Guidance
Raised full-year 2026 guidance: global portfolio purchases of $1.50 billion to $1.55 billion; global collections of $2.90 billion to $2.95 billion, reflecting year-over-year growth of 12-14%; and EPS of $15.50 to $16.00 per share, an increase of over 40% compared with 2025.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were ECPG's third-quarter 2026 revenue and net income?
Encore reported revenue of $544.5 million and net income of $124.0 million for the third quarter ended September 30, 2026. Revenue was up 18% and net income was up 66% from the same quarter of 2025.
What is ECPG's full-year 2026 guidance?
Encore raised its 2026 outlook to global portfolio purchases of $1.50 billion to $1.55 billion, global collections of $2.90 billion to $2.95 billion, and EPS of $15.50 to $16.00 per share. The collections range reflects year-over-year growth of 12-14%, and the EPS range is an increase of over 40% compared with 2025.
What was ECPG's adjusted EBITDA in the third quarter of 2026?
Adjusted EBITDA was $245.2 million for Q3 2026, compared with $184.8 million for Q3 2025. Encore describes adjusted EBITDA as a non-GAAP measure used by management to evaluate operations and says it should not be considered an alternative to net income or net income per share.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported)
______________________
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices)(Zip Code)
(877 ) 345-3002
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report.)
_____________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 4, 2026, Encore Capital Group, Inc. (“Encore”) issued a press release announcing its financial results for the quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
The information in Item 2.02 of this Current Report on Form 8-K, including the information contained in Exhibit 99.1, is being furnished to the Securities and Exchange Commission pursuant to Item 2.02, and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by a specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
Exhibit Number | Description | ||||
99.1 | Press release dated November 4, 2026 | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ENCORE CAPITAL GROUP, INC. | ||||||||
Date: | November 4, 2026 | /s/ Tomas Hernanz | ||||||
Tomas Hernanz | ||||||||
Executive Vice President, Chief Financial Officer and Treasurer | ||||||||
EXHIBIT INDEX
| Exhibit Number | Description | ||||
99.1 | Press release dated November 4, 2026 | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
 | ||||||||
Encore Capital Group Announces Third Quarter 2026 Financial Results
•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, November 4, 2026 -- 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.
Encore Capital Group, Inc.
Page 2
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.
Encore Capital Group, Inc.
Page 3
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.
Encore Capital Group, Inc.
Page 4
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.
Page 5
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.
Page 6
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.
Page 7
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.
Page 8
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 | |||||||||||||||
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(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.