Encore Capital Group (NASDAQ:ECPG) Posts Quarterly Earnings Results, Beats Estimates By $1.17 EPS

Encore Capital Group (NASDAQ:ECPG) released its quarterly earnings results on Wednesday. The asset manager reported $3.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.20 by $1.17, Zacks reports. The business had revenue of $473.55 million during the quarter, compared to the consensus estimate of $423.14 million. Encore Capital Group had a return on equity of 28.88% and a net margin of 14.52%.The business’s revenue was up 78.3% on a year-over-year basis. During the same quarter in the previous year, the company posted ($9.42) EPS.

Here are the key takeaways from Encore Capital Group’s conference call:

• Encore delivered record 2025 results with portfolio purchases of $1.4B, collections of $2.6B, ERC of $9.7B, net income of $257M and EPS $10.91, and repurchased ~9% of shares (~$90M).
• The U.S. business (MCM) was the growth engine—record $1.17B in U.S. purchases and $1.95B in collections (up 24%), plus $198M of collections above ERC forecasts driven by digital/operational improvements; management guided 2026 collections ~ $2.7B and EPS of $12.
• Balance-sheet and funding improved—leverage fell to 2.4x, Encore issued attractive financing ( $100M notes at 6.625%), settled convertibles and has no material maturities until 2028, supporting continued portfolio buying and capital returns flexibility.
• European (Cabot) markets remain challenged with subdued U.K. lending, low delinquencies and strong competition (2025 purchases $234M), and management left buyback size and potential legal cost increases discretionary, adding uncertainty to near-term capital allocation.

Encore Capital Group Trading Up 2.6%

ECPG stock traded up $1.63 during midday trading on Friday, hitting $65.57. The stock had a trading volume of 91,965 shares, compared to its average volume of 177,700. The company’s 50-day moving average price is $56.34 and its 200 day moving average price is $49.28. The company has a debt-to-equity ratio of 4.13, a current ratio of 0.66 and a quick ratio of 0.66. The firm has a market cap of $1.46 billion, a PE ratio of 5.99 and a beta of 1.41. Encore Capital Group has a 12-month low of $26.45 and a 12-month high of $66.97.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on ECPG shares. Zacks Research cut shares of Encore Capital Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Janney Montgomery Scott raised their price objective on shares of Encore Capital Group from $56.00 to $62.00 and gave the stock a “buy” rating in a research note on Thursday, November 6th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Encore Capital Group in a research note on Wednesday, January 21st. Citigroup reiterated an “outperform” rating on shares of Encore Capital Group in a report on Tuesday, January 20th. Finally, Truist Financial boosted their price target on Encore Capital Group from $59.00 to $80.00 and gave the stock a “buy” rating in a report on Thursday. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Encore Capital Group has an average rating of “Moderate Buy” and a consensus price target of $75.50.

Insider Buying and Selling at Encore Capital Group

In other news, insider Ryan B. Bell sold 2,500 shares of Encore Capital Group stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $55.00, for a total value of $137,500.00. Following the completion of the sale, the insider owned 55,410 shares of the company’s stock, valued at $3,047,550. The trade was a 4.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Laura Olle sold 1,423 shares of the company’s stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $52.79, for a total value of $75,120.17. Following the completion of the transaction, the director owned 35,024 shares of the company’s stock, valued at $1,848,916.96. The trade was a 3.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.54% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Tower Research Capital LLC TRC grew its holdings in Encore Capital Group by 168.9% in the second quarter. Tower Research Capital LLC TRC now owns 2,716 shares of the asset manager’s stock valued at $105,000 after purchasing an additional 1,706 shares during the period. Virtus Advisers LLC purchased a new position in Encore Capital Group during the third quarter worth approximately $143,000. Virtu Financial LLC acquired a new position in shares of Encore Capital Group in the 4th quarter valued at $201,000. Brooklyn Investment Group purchased a new stake in shares of Encore Capital Group during the 4th quarter valued at $211,000. Finally, Mercer Global Advisors Inc. ADV purchased a new stake in shares of Encore Capital Group during the 3rd quarter valued at $214,000.

Encore Capital Group News Roundup

Here are the key news stories impacting Encore Capital Group this week:

• Positive Sentiment: Q4 beat and strong results — Encore reported $3.37 EPS (vs. $2.20 consensus) and $473.6M revenue, a large YoY improvement from a loss a year earlier; call materials and the company release highlighted margin and ROE strength. MarketBeat: Earnings Results
• Positive Sentiment: Very strong FY?2026 guidance — management set EPS guidance of $12.00 for FY?2026, materially above the prior consensus (~$8.76), signaling substantial operating leverage and portfolio purchase-driven earnings growth. Yahoo: Q4 Highlights
• Positive Sentiment: Growth plan: Encore is targeting $1.4B–$1.5B in portfolio purchases and expects ~10% EPS growth to $12 in 2026 — a concrete deployment plan that supports the elevated guidance. Seeking Alpha: Growth Outlook
• Positive Sentiment: Analyst upward revisions — Citizens JMP raised its price target to $90 (market outperform) and Truist lifted its target to $80 (buy), both citing the company’s stronger results and outlook, which likely bolstered investor confidence. Benzinga: Analyst Upgrades
• Neutral Sentiment: Earnings call and transcript available — management’s commentary and the slide deck provide more detail on reserves, portfolio yield assumptions, and capital deployment (useful for modeling but not new news). Seeking Alpha: Call Transcript
• Negative Sentiment: Leverage and liquidity remain points to monitor — Encore carries a high debt/equity (~4.13) and a low current/quick ratio (~0.66), which increases sensitivity to funding costs and portfolio churn even as earnings improve. No article link

About Encore Capital Group

Encore Capital Group, Inc is a global specialty finance company that focuses on the purchase and management of nonperforming consumer receivables. Through its subsidiaries, the company acquires charged-off debt portfolios from credit card issuers, banks, and other financial institutions, and seeks to recover outstanding balances through a combination of customer outreach, payment arrangements, and, where appropriate, legal collection efforts. Encore’s business model emphasizes compliance with regulatory and industry standards to ensure ethical and transparent debt-recovery practices.

Headquartered in San Diego, California, Encore operates across North America and Europe.