Encore Capital Group, Inc. (ECPG) Earnings
Encore Capital Group, Inc. is expected to report next earnings on August 5, 2026 (in NaN days), with a consensus EPS estimate of $2.87. ECPG has beaten EPS estimates in 6 of its last 12 reported quarters (average surprise +52.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $3.26 | $3.86 | +18.4% | $475M | +6.5% |
| Feb 25, 2026 | $2.20 | $3.37 | +53.2% | $474M | +12.2% |
| Nov 5, 2025 | $1.92 | $3.17 | +65.1% | $460M | +8.8% |
| Aug 6, 2025 | $1.44 | $2.49 | +72.9% | $442M | +12.4% |
| May 7, 2025 | $1.24 | $1.93 | +55.6% | $393M | +4.9% |
| Feb 26, 2025 | $1.55 | $1.50 | -3.2% | $266M | -28.9% |
| Feb 21, 2024 | $1.22 | $1.25 | +2.5% | $277M | -16.1% |
| Nov 1, 2023 | $1.32 | $0.79 | -40.2% | $310M | -7.1% |
| Aug 2, 2023 | $1.25 | $1.08 | -13.6% | $323M | -1.5% |
| May 3, 2023 | $1.21 | $0.75 | -38.0% | $313M | -3.3% |
| Feb 22, 2023 | $1.43 | $-3.11 | -317.5% | $234M | -26.8% |
| Nov 2, 2022 | $1.78 | $1.22 | -31.5% | $308M | -6.8% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Encore delivered strong performance with solid portfolio purchases, record collections, and increased earnings. - Business thrives on industry leadership and operational execution. - MCM in US excels in purchasing, collections, and efficiency. - Cabot in Europe has solid performance with selective deployments. - Value engine driven by buying, collecting, and funding. - Disciplined portfolio purchasing with superior data and analytics. - Operational excellence and consumer-centric approach lead to strong collections. - Balance sheet strength enables access to capital. - Key financial objectives include strong balance sheet, capital allocation to portfolio purchases, share repurchases, and strong ROIC.
Guidance
- Anticipate global portfolio purchases in 2026 to be within $1.4 billion to $1.5 billion. - Raise collections guidance to 8% growth to $2.8 billion. - Expect EPS in 2026 to increase 19% to $13 per share. - Continue to expect interest expense and other income to be approximately $300 million for the year. - Continue to expect effective tax rate in the mid-20s.
Segment performance
In the first quarter, Encore's global portfolio purchases were $363 million. Global collections were a record $718 million, up 19% year-over-year. Average receivable portfolios increased 14% to $4.4 billion. Net income was $86 million and EPS was $3.86. MCM in the US had portfolio purchases of $316 million, collections of $556 million (up 23% year-over-year). Cabot in Europe had portfolio purchases of $47 million and collections of $161 million (up 7% year-over-year). Collection yield in Q1 was 65.2%, an improvement of 2.6 percentage points. Portfolio revenue was $390 million, up 13%. Changes in recoveries were $62.7 million, with $46 million being recoveries above forecast. Debt purchasing revenue was $453 million, up 23.5%. Operating expenses increased 11% while collections grew 19%. Cash efficiency margin improved by 2.6 percentage points to 16.9%. Leverage was 2.3 times at the end of Q1.
Analyst Q&A
Q: Asks about new elements in purchasing and collection environments compared to previous quarters.
A: Things are similar in US market with stable supply, pricing, and returns; Europe is stable with disciplined deployment.
Q: Asks about AI in collection company and regulatory issues.
A: Leveraging technology for years, actively piloting AI, mindful of regulatory nuances in voice and legal processes.
Q: Asks about supply increase and collections multiple.
A: Supply is stable, collections multiple for 2026 vintage started at 2.4, 24 and 25 vintages performing well.
Q: Asks about portfolio purchasing and share buybacks.
A: Staying with portfolio purchase guidance, share repurchases done in Q1 with $20 million spent, priority on portfolio purchases.
Q: Asks about collection strength and vintage performance.
A: Collections growth driven by strong purchasing and improvements in MCM, 24 and 25 vintages performing well with overperformance.
Q: Asks about AI in pricing models and technological improvement runway.
A: Incorporating machine learning and AI techniques in modeling, with much runway left for efficiency improvements.