Encore Capital Group (NASDAQ:ECPG) Announces Earnings Results

Encore Capital Group (NASDAQ:ECPG) announced its quarterly earnings results on Wednesday. The asset manager reported $2.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.67 by $0.14, FiscalAI reports. The company had revenue of $491.87 million during the quarter, compared to the consensus estimate of $455.10 million. Encore Capital Group had a return on equity of 30.70% and a net margin of 16.00%.Encore Capital Group’s revenue for the quarter was up 11.3% on a year-over-year basis. During the same period in the previous year, the business earned $2.49 EPS. Encore Capital Group updated its FY 2026 guidance to 13.000-14.000 EPS.

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

• Record U.S. portfolio purchases and global collections supported strong quarterly performance: global purchases reached $444 million, including a record $372 million in the U.S., while collections rose 13% to a record $737 million.
• Collections outperformance and operational improvements drove leverage, with cash efficiency margin increasing to 60.2%, ROIC rising to 14.7%, and leverage improving to 2.3 times from 2.6 times a year ago.
• Management raised 2026 global collections guidance to $2.8 billion-$2.85 billion and expects portfolio purchases near the high end of the $1.4 billion-$1.5 billion range; full-year EPS guidance is $13-$14 despite $1 per share of refinancing costs in Q2.
• The company completed a billion-dollar refinancing at lower coupons, expects approximately $50 million in annualized interest savings, and reported no material maturities until 2028, providing additional financial flexibility.
• Cabot’s European business remained stable, with collections flat year over year at $164 million, but management continues to be selective in the U.K. amid subdued consumer lending, low delinquencies, and robust competition.

Encore Capital Group Stock Performance

Shares of ECPG traded down $2.85 during midday trading on Wednesday, reaching $92.69. 339,170 shares of the stock were exchanged, compared to its average volume of 329,619. Encore Capital Group has a twelve month low of $36.24 and a twelve month high of $98.15. The company has a debt-to-equity ratio of 3.90, a current ratio of 0.90 and a quick ratio of 0.90. The company has a market capitalization of $1.99 billion, a price-to-earnings ratio of 7.19 and a beta of 1.27. The business’s 50-day moving average price is $87.53 and its 200 day moving average price is $76.04.

Insider Activity

In related news, insider John Yung sold 2,000 shares of the company’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $82.08, for a total value of $164,160.00. Following the completion of the sale, the insider directly owned 64,570 shares of the company’s stock, valued at $5,299,905.60. This represents a 3.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 3.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Encore Capital Group

Large investors have recently modified their holdings of the company. Tower Research Capital LLC TRC grew its position in shares of Encore Capital Group by 168.9% during the second quarter. Tower Research Capital LLC TRC now owns 2,716 shares of the asset manager’s stock worth $105,000 after acquiring an additional 1,706 shares during the last quarter. Virtus Advisers LLC acquired a new position in Encore Capital Group in the 3rd quarter valued at about $143,000. Virtu Financial LLC acquired a new stake in Encore Capital Group during the 4th quarter worth approximately $201,000. Brooklyn Investment Group purchased a new position in shares of Encore Capital Group in the 4th quarter valued at approximately $211,000. Finally, Dynamic Technology Lab Private Ltd purchased a new position in shares of Encore Capital Group in the 4th quarter valued at approximately $228,000.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on ECPG shares. Zacks Research lowered Encore Capital Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. Truist Financial upped their price target on Encore Capital Group from $100.00 to $105.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Citigroup reiterated a “market outperform” rating on shares of Encore Capital Group in a research note on Wednesday, June 17th. Citizens Jmp raised their price objective on shares of Encore Capital Group from $108.00 to $115.00 and gave the stock a “market outperform” rating in a report on Wednesday, June 17th. Finally, Wall Street Zen downgraded shares of Encore Capital Group from a “strong-buy” rating to a “hold” rating in a research report on Saturday, May 9th. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $88.00.

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.