Encore Capital Group (NASDAQ:ECPG) Posts Earnings Results, Beats Expectations By $0.84 EPS

Encore Capital Group (NASDAQ:ECPG) released its quarterly earnings results on Wednesday. The asset manager reported $3.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.02 by $0.84, FiscalAI reports. The business had revenue of $475.41 million for the quarter, compared to the consensus estimate of $446.26 million. Encore Capital Group had a net margin of 14.52% and a return on equity of 28.19%. The business’s revenue was up 21.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.93 EPS. Encore Capital Group updated its FY 2026 guidance to 13.000-13.000 EPS.

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

• Record collections of $718M (up 19%) drove net income of $86M and EPS of $3.86 in Q1, and management raised 2026 guidance to $2.8B collections and $13 EPS (up ~19%).
• The U.S. MCM business led performance with Q1 purchases of $316M and record collections of $556M (+23%), with recent vintages (2024/2025) outperforming forecasts and early-stage digital initiatives boosting payer conversion.
• Encore expects to keep prioritizing portfolio buys (Q1 purchases $363M, 2026 guide $1.4–$1.5B), while also returning capital via buybacks (?$20M in Q1) and showing improved ROIC (14.6%) and cash generation (up 21%).
• Cabot (Europe) delivered stable results—Q1 purchases $47M and collections $161M (+7%, aided by FX)—but the U.K. market remains subdued with low delinquencies and strong competition, so purchases are selective.
• Management is testing AI and automation but cautions voice/collection automation is not yet mature and is subject to regulatory limits, which could constrain the pace of labor-related efficiency gains.

Encore Capital Group Price Performance

Shares of ECPG traded down $0.17 during trading hours on Wednesday, reaching $84.24. The company had a trading volume of 255,072 shares, compared to its average volume of 349,941. The firm has a 50 day simple moving average of $73.51 and a 200-day simple moving average of $59.86. The company has a current ratio of 0.68, a quick ratio of 0.68 and a debt-to-equity ratio of 4.10. The company has a market capitalization of $1.81 billion, a price-to-earnings ratio of 7.69 and a beta of 1.33. Encore Capital Group has a 12-month low of $32.66 and a 12-month high of $85.74.

Encore Capital Group News Roundup

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

• Positive Sentiment: Quarterly beat and revenue growth: Encore reported Q1 EPS of $3.86 and revenue of $475.4M, meaningfully above street estimates and up ~21% year?over?year — this demonstrates strong core performance and drove the market’s initial positive reaction. Encore Capital Group (ECPG) Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Raised FY?2026 guidance: management set EPS guidance at $13.00 (vs. sell?side consensus ~$11.87), signaling confidence in sustained earnings power — a material upside to prior expectations that supports valuation expansion. Encore Capital Group Announces First Quarter 2026 Financial Results
• Neutral Sentiment: Management disclosure and investor materials: the company posted its press release, slide deck and conference?call materials (useful for digging into portfolio mix, recoveries and cost trends). These items clarify drivers but don’t by themselves change fundamentals. Listen to Conference Call / View Slide Deck
• Negative Sentiment: High leverage and weak near?term liquidity: the company’s debt/equity (~4.10) and current/quick ratios (~0.68) highlight elevated leverage and tight short?term liquidity, which raise risk in an adverse credit cycle or rising funding costs. MarketBeat ECPG Stock Summary
• Negative Sentiment: Technical and volume context: the stock is trading near its 52?week high with below?average intraday volume — a setup that can encourage short?term profit?taking and amplify volatility despite solid fundamentals. (No article)

Analyst Upgrades and Downgrades

Several research analysts have commented on ECPG shares. Citigroup reiterated an “outperform” rating on shares of Encore Capital Group in a report on Tuesday, January 20th. Wall Street Zen upgraded shares of Encore Capital Group from a “buy” rating to a “strong-buy” rating in a report on Saturday, April 18th. Northland Securities set a $70.00 price target on shares of Encore Capital Group in a report on Thursday, January 22nd. Citizens Jmp boosted their price target on shares of Encore Capital Group from $75.00 to $90.00 and gave the stock a “market outperform” rating in a report on Thursday, February 26th. Finally, Truist Financial set a $100.00 price target on shares of Encore Capital Group in a report on Tuesday, April 21st. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $80.50.

Insiders Place Their Bets

In other news, insider Ryan B. Bell sold 7,240 shares of Encore Capital Group stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $69.04, for a total transaction of $499,849.60. Following the completion of the sale, the insider directly owned 48,170 shares in the company, valued at $3,325,656.80. The trade was a 13.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 2.54% of the company’s stock.

Hedge Funds Weigh In On Encore Capital Group

A number of hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC grew its stake in Encore Capital Group by 78.0% during the fourth quarter. AQR Capital Management LLC now owns 412,498 shares of the asset manager’s stock worth $22,419,000 after buying an additional 180,733 shares during the period. Jane Street Group LLC lifted its position in shares of Encore Capital Group by 488.1% during the fourth quarter. Jane Street Group LLC now owns 154,128 shares of the asset manager’s stock worth $8,377,000 after purchasing an additional 127,920 shares in the last quarter. First Trust Advisors LP lifted its position in shares of Encore Capital Group by 379.7% during the third quarter. First Trust Advisors LP now owns 98,817 shares of the asset manager’s stock worth $4,125,000 after purchasing an additional 78,217 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Encore Capital Group by 476.6% during the second quarter. Arrowstreet Capital Limited Partnership now owns 92,978 shares of the asset manager’s stock worth $3,599,000 after purchasing an additional 76,852 shares in the last quarter. Finally, Balyasny Asset Management L.P. lifted its position in shares of Encore Capital Group by 525.6% during the second quarter. Balyasny Asset Management L.P. now owns 47,837 shares of the asset manager’s stock worth $1,852,000 after purchasing an additional 40,191 shares in the last quarter.

Encore Capital Group Company Profile

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.