Encore Capital Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue increased 18% year-over-year to $544.5 million for the quarter ended September 30, 2026, compared to $460.4 million in the prior year period.
• GAAP net income rose 66% to $124.0 million, or $5.57 per diluted share, up from $74.7 million, or $3.17 per diluted share, in the same quarter last year.
• Global collections reached a record $753.8 million, a 14% increase from $663.0 million in the third quarter of 2025.
• Portfolio purchases totaled $389.7 million for the quarter, up 13% from $346.1 million in the prior year period.
• Average receivable portfolios increased 11% to $4.69 billion from $4.23 billion in the prior year period.
• Estimated Remaining Collections (ERC) grew 10% to $10.45 billion from $9.49 billion in the prior year period.
• Operating expenses increased 9% to $313.9 million from $287.2 million in the prior year period.
• Cash and cash equivalents stood at $158.4 million as of September 30, 2026, compared to $156.8 million at December 31, 2025.
• Total borrowings increased to $4.24 billion as of September 30, 2026, from $4.00 billion at December 31, 2025.
• Adjusted EBITDA for the quarter was $245.2 million, compared to $184.8 million in the prior year period.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $159.6 million, up from $136.4 million in the prior year period.

Guidance and Future Outlook:

• Full-year 2026 global portfolio purchases guidance raised to a range of $1.50 billion to $1.55 billion.
• Full-year 2026 global collections guidance raised to a range of $2.90 billion to $2.95 billion, reflecting year-over-year growth of 12-14%.
• Full-year 2026 earnings per share (EPS) guidance raised to a range of $15.50 to $16.00 per share, an increase of over 40% compared to 2025.

Business Segments and Product Lines:

• MCM (U.S. business) purchased $310.0 million of portfolios in the third quarter and delivered record collections of $589.0 million, up 17% year-over-year.
• Cabot (Europe business) purchased $79.7 million of portfolios and generated collections of $164.0 million, up 2% year-over-year.
• MCM attributed its collections performance to strong execution, significant portfolio purchasing, deployment of new technologies, enhanced digital capabilities, and operational innovation.

Market and Competitive Landscape:

• The U.S. market remains highly attractive with continued robust portfolio supply.
• Purchasing conditions in the U.S. market continue to be favorable.

Risks and Challenges:

• The press release includes standard forward-looking statement disclaimers regarding risks, uncertainties, and factors that could cause actual results to differ materially from projections, referencing the company's Form 10-K.
• No specific operational risks or challenges beyond general market factors were detailed in the text.

Management Commentary and Tone:

• CEO Ashish Masih described the third quarter as "exceptional" both financially and operationally.
• Management expressed confidence in capitalizing on the U.S. market opportunity with "discipline and conviction."
• The company reiterated its commitment to its role in the consumer credit ecosystem and helping consumers restore financial health.

Other Key Points:

• The company repurchased approximately $27 million of common stock in the third quarter.
• Total share repurchases for the first nine months of 2026 reached approximately $73 million.
• The company hosts a conference call and webcast on November 4, 2026, to discuss results.
• The company operates with a Consumer Bill of Rights, described as industry-leading commitments to consumers.
• Encore Capital Group is a component stock of the Russell 2000, the S&P Small Cap 600, and the Wilshire 4500.