Encore Capital Group Announces Fourth Quarter and Full-Year 2025 Financial Results

February 25, 2026 at 4:05 PM EST
  • Global portfolio purchases in 2025 up 4% to $1.41 billion, including $1.17 billion in the U.S.
  • Global collections in 2025 up 20% to $2.59 billion, including $1.95 billion in the U.S.
  • Earnings per share in 2025 of $10.91
  • Repurchased approximately 9% of ECPG shares outstanding for $89.5 million in 2025

SAN DIEGO, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the fourth quarter and full year ended December 31, 2025.

“Encore’s industry leadership and operational innovation are on full display after delivering very strong 2025 financial results,” said Ashish Masih, Encore’s President and Chief Executive Officer. “With our largest business, MCM in the U.S., leading the way, we grew portfolio purchases and collections to record levels and increased average receivable portfolios by 12% compared to 2024, all while we strengthened our balance sheet by reducing our leverage. This performance led to $257 million of net income for the year, or earnings per share of $10.91.”

“In the U.S., the portfolio purchasing environment in 2025 remained favorable as a result of near-record revolving consumer credit combined with a charge-off rate of more than 4%. Within this market backdrop, MCM increased U.S. portfolio purchases for the year by 18% to a record $1.17 billion at strong returns. In addition, MCM delivered record collections of $1.95 billion, up 24% compared to 2024. 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 solid performance in 2025. Portfolio purchases of $234 million were in the range of Cabot’s historical trend as European markets remain competitive. Cabot’s collections of $641 million were up 9% compared to 2024.”

“Looking ahead, guided by our three pillar strategy and encouraged by our business momentum early in 2026, we remain committed to our long-standing financial objectives and our capital allocation priorities. We anticipate our global portfolio purchases in 2026 to be within a range from $1.4 billion to $1.5 billion. We expect global collections in 2026 to increase by 5% to $2.7 billion. In total, we believe Encore will deliver another strong year of financial performance in 2026 and expect our earnings per share to increase 10% to $12.00. We also remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore their financial health,” said Masih.

In 2025, the company repurchased approximately 9% of ECPG shares outstanding for $89.5 million.1

1 Percentage calculated as number of ECPG shares repurchased in 2025 divided by number of ECPG shares outstanding as of December 31, 2024.

Financial Highlights for the Full Year of 2025:
 
  Year Ended December 31,
(in thousands, except percentages and earnings per share) 2025
     2024     Change
Portfolio purchases(1) $ 1,408,083   $ 1,352,035     4 %
Average receivable portfolios(2) $ 4,073,951   $ 3,622,401     12 %
Estimated Remaining Collections (ERC) $ 9,684,339   $ 8,501,370     14 %
Collections $ 2,592,786   $ 2,162,478     20 %
Revenues $ 1,768,802   $ 1,316,361     34 %
Operating expenses $ 1,142,155   $ 1,159,031     (1)%
Net income (loss) $ 256,834   $ (139,244 )   NM
Income (loss) per share $ 10.91   $ (5.83 )   NM


(1)   Includes U.S. purchases of $1,174.0 million and $998.9 million, and Europe purchases of $234.1 million and $353.2 million in 2025 and 2024, respectively.

(2)   Represents the average of receivable portfolios for the year (sum of receivable portfolios at the beginning and end of the year divided by 2).

Financial Highlights for the Fourth Quarter of 2025:
 
  Three Months Ended December 31,
(in thousands, except percentages and earnings per share) 2025
     2024     Change
Portfolio purchases(1) $ 327,064   $ 495,144     (34)%
Average receivable portfolios(2) $ 4,320,774   $ 3,747,815     15 %
Estimated Remaining Collections (ERC) $ 9,684,339   $ 8,501,370     14 %
Collections $ 669,976   $ 554,595     21 %
Revenues $ 473,552   $ 265,619     78 %
Operating expenses $ 300,159   $ 399,809     (25)%
Net income (loss) $ 76,657   $ (225,307 )   NM
Income (loss) per share $ 3.37   $ (9.42 )   NM


(1)   Includes U.S. purchases of $279.3 million and $295.3 million, and Europe purchases of $47.8 million and $199.8 million in Q4 2025 and Q4 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

The Company will host a conference call and slide presentation today, February 25, 2026, at 2:00 p.m. Pacific time / 5:00 p.m. Eastern time to discuss fourth quarter and full year 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, when added to collections applied to principal balance, 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 an alternative to, or more meaningful than, net income as an indicator 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. The Company has attached to this news release a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

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 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 portfolio purchase volumes, collections and earnings per share), performance, business plans or prospects as well as statements regarding future supply, consumer behavior, or macroeconomic environment. 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 reports 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.

ENCORE CAPITAL GROUP, INC.
Consolidated Statements of Financial Condition
(In Thousands, Except Par Value Amounts)
 
  December 31,
2025		   December 31,
2024
Assets      
Cash and cash equivalents $ 156,784     $ 199,865  
Receivable portfolios, net   4,371,532       3,776,369  
Property and equipment, net   82,080       80,597  
Other assets   193,113       225,090  
Goodwill   536,291       507,808  
Total assets $ 5,339,800     $ 4,789,729  
Liabilities and Equity      
Liabilities:      
Accounts payable and accrued liabilities $ 230,261     $ 233,545  
Borrowings   4,001,293       3,672,762  
Other liabilities   131,496       116,091  
Total liabilities   4,363,050       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, 21,688 shares and 23,691 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively   217       237  
Additional paid-in capital   —       19,297  
Accumulated earnings   1,104,640       909,927  
Accumulated other comprehensive loss   (128,107 )     (162,130 )
Total stockholders’ equity   976,750       767,331  
Total liabilities and stockholders’ equity $ 5,339,800     $ 4,789,729  


The following table presents certain assets and liabilities of consolidated variable interest entities (“VIEs”) included in the 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.

  December 31,
2025		   December 31,
2024
Assets      
Cash and cash equivalents $ 40,256   $ 23,875
Receivable portfolios, net   1,151,221     895,704
Other assets   3,540     3,699
Liabilities      
Accounts payable and accrued liabilities   3,101     2,946
Borrowings   791,182     599,830
Other liabilities   2,774     887


ENCORE CAPITAL GROUP, INC.
Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
 
  (Unaudited)
Three Months Ended December 31,		   Year Ended December 31,
    2025       2024       2025       2024  
Revenues              
Portfolio revenue $ 379,277     $ 336,666     $ 1,455,795     $ 1,302,567  
Changes in recoveries   68,072       (95,760 )     208,771       (89,740 )
Total debt purchasing revenue   447,349       240,906       1,664,566       1,212,827  
Servicing revenue   21,366       20,525       88,388       84,783  
Other revenues   4,837       4,188       15,848       18,751  
Total revenues   473,552       265,619       1,768,802       1,316,361  
Operating expenses              
Salaries and employee benefits   117,445       104,616       458,233       422,910  
Cost of legal collections   87,779       68,989       315,451       259,298  
General and administrative expenses   44,383       52,019       165,948       163,847  
Other operating expenses   36,178       37,786       144,476       130,802  
Collection agency commissions   7,439       8,288       29,287       30,596  
Depreciation and amortization   6,935       8,967       28,760       32,434  
Goodwill impairment   —       100,600       —       100,600  
Impairment of assets   —       18,544       —       18,544  
Total operating expenses   300,159       399,809       1,142,155       1,159,031  
Income (loss) from operations   173,393       (134,190 )     626,647       157,330  
Other expense              
Interest expense   (75,195 )     (68,498 )     (293,910 )     (252,545 )
Loss on extinguishment of debt   (1,614 )     (7,832 )     (1,614 )     (7,832 )
Other income   1,234       541       5,036       6,832  
Total other expense   (75,575 )     (75,789 )     (290,488 )     (253,545 )
Income (loss) before income taxes   97,818       (209,979 )     336,159       (96,215 )
Provision for income taxes   (21,161 )     (15,328 )     (79,325 )     (43,029 )
Net income (loss) $ 76,657     $ (225,307 )   $ 256,834     $ (139,244 )
               
Income (loss) per share:              
Basic $ 3.43     $ (9.42 )   $ 11.05     $ (5.83 )
Diluted $ 3.37     $ (9.42 )   $ 10.91     $ (5.83 )
               
Weighted average shares outstanding:              
Basic   22,346       23,916       23,234       23,873  
Diluted   22,776       23,916       23,534       23,873  


ENCORE CAPITAL GROUP, INC.
Consolidated Statements of Cash Flows
(In Thousands)
 
  Year Ended December 31,
    2025       2024       2023  
Operating activities:          
Net income (loss) $ 256,834     $ (139,244 )   $ (206,492 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:          
Depreciation and amortization   28,760       32,434       41,737  
Other non-cash interest expense, net   14,364       16,325       17,160  
Stock-based compensation expense   18,269       14,012       13,854  
Deferred income taxes   29,819       (22,280 )     (55,916 )
Goodwill impairment   —       100,600       238,200  
Impairment of assets   —       18,544       18,726  
Changes in recoveries   (208,771 )     89,740       82,530  
Other, net   7,654       17,880       (2,259 )
Changes in operating assets and liabilities          
Other assets   9,923       (28,245 )     15,894  
Accounts payable, accrued liabilities and other liabilities   (3,653 )     56,402       (10,443 )
   Net cash provided by operating activities   153,199       156,168       152,991  
Investing activities:          
Purchases of receivable portfolios, net of put-backs   (1,389,064 )     (1,336,442 )     (1,060,206 )
Collections applied to receivable portfolios   1,136,991       859,911       658,130  
Purchases of real estate owned   —       (212 )     (26,901 )
Purchases of property and equipment   (26,270 )     (29,007 )     (24,807 )
Proceeds from sale of real estate owned   37,650       56,396       52,636  
Other, net   (1,893 )     8,924       (793 )
   Net cash used in investing activities   (242,586 )     (440,430 )     (401,941 )
Financing activities:          
Payment of loan and debt refinancing costs   (10,210 )     (21,418 )     (13,707 )
Proceeds from credit facilities   1,273,254       2,031,470       1,196,046  
Repayment of credit facilities   (1,359,011 )     (1,868,111 )     (989,627 )
Proceeds from senior secured notes   500,000       1,000,000       104,188  
Repayment of senior secured notes   (115,965 )     (789,106 )     (39,080 )
Proceeds from issuance of convertible senior notes   —       —       230,000  
Repayment of convertible senior notes   (106,206 )     —       (212,480 )
Repayment of other debt   (42,469 )     (22,078 )     (12,715 )
Payments to settle derivative instruments   —       (40,038 )     —  
Repurchase and retirement of common stock   (90,402 )     —       —  
Other, net   (4,137 )     27,055       5,675  
   Net cash provided by financing activities   44,854       317,774       268,300  
Net (decrease) increase in cash and cash equivalents   (44,533 )     33,512       19,350  
Effect of exchange rate changes on cash and cash equivalents   1,452       7,989       (4,898 )
Cash and cash equivalents, beginning of period   199,865       158,364       143,912  
Cash and cash equivalents, end of period $ 156,784     $ 199,865     $ 158,364  
           
Supplemental disclosures of cash flow information:          
Cash paid for interest $ 259,812     $ 210,580     $ 163,815  
Cash paid for income taxes, net of refunds   54,766       67,091       68,522  
Supplemental schedule of non-cash investing activities:          
Receivable portfolios transferred to real estate owned $ 3,739     $ 5,966     $ 7,957  


ENCORE CAPITAL GROUP, INC.
Supplemental Financial Information
Reconciliation of Non-GAAP Metrics
 
Adjusted EBITDA
 
(in thousands, unaudited)
 Three Months Ended December 31,   Year Ended December 31,
  2025       2024       2025       2024  
GAAP net income (loss), as reported $ 76,657     $ (225,307 )   $ 256,834     $ (139,244 )
Adjustments:              
Interest expense   75,195       68,498       293,910       252,545  
Loss on extinguishment of debt   1,614       7,832       1,614       7,832  
Interest income   (1,020 )     (1,971 )     (4,955 )     (7,008 )
Provision for income taxes   21,161       15,328       79,325       43,029  
Depreciation and amortization   6,935       8,967       28,760       32,434  
Net gain on derivative instruments(1)   —       —       —       (267 )
Stock-based compensation expense   5,221       2,281       18,269       14,012  
Acquisition, integration and restructuring related expenses(2)   1,747       6,087       3,201       10,451  
Goodwill impairment(3)   —       100,600       —       100,600  
Impairment of assets(3)   —       18,544       —       18,544  
Adjusted EBITDA $ 187,510     $ 859     $ 676,958     $ 332,928  
Collections applied to principal balance(4) $ 228,206     $ 337,464     $ 953,476     $ 1,004,230  


(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)   During the quarter ended December 31, 2024, we recorded a non-cash goodwill impairment charge of $100.6 million and we recorded a non-cash impairment of long-lived assets of $18.5 million. We believe these non-cash impairment charges are not indicative of ongoing operations, therefore adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results.

(4)   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, exit activities 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-K for the period ending December 31, 2025.


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Source: Encore Capital Group, Inc.