Encore Capital Group (ECPG) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 results with global portfolio purchases up 32% to $367 million and collections up 20% to $655 million, led by strong U.S. (MCM) performance.

• Earnings per share rose 86% to $2.49, with net income up 82% to $59 million year-over-year.

• Leverage improved to 2.6x year-over-year and remained flat sequentially.

• Estimated remaining collections (ERC) reached a record $9.4 billion, up 12% year-over-year.

• Repurchased $15 million in shares in Q2, totaling $25 million for the first half of 2025.

Financial highlights

• Q2 2025 revenues rose 24% year-over-year to $442.1 million, with net income up 82% to $58.7 million.

• Operating expenses increased 15% to $291 million, mainly due to onboarding new portfolios and higher administrative costs.

• Cash efficiency margin improved to 57.3% from 56.2% a year ago.

• Adjusted EBITDA for Q2 2025 was $244.7 million; adjusted EBITDA margin was 37%.

• ERC reached $9.4 billion, up 12% year-over-year.

Outlook and guidance

• Raised 2025 global collections growth guidance to 15.5% ($2.5 billion), with portfolio purchases expected to exceed $1.35 billion.

• Interest expense for 2025 projected at ~$285 million; effective tax rate expected in the mid-20% range.

• U.S. (MCM) purchasing expected to surpass 2024 record; European (Cabot) purchasing to remain stable.

• Sufficient liquidity anticipated for at least the next twelve months, supported by positive cash flows and available credit.