Encore Capital Group (ECPG) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered record collections and earnings growth, with portfolio purchases up 23% year-over-year to $346 million, led by strong U.S. market performance and operational innovation.

• U.S. operations drove record collections of $502 million, up 25%, while European operations saw moderate growth with $85 million in purchases and 8% collections growth.

• Earnings per share rose to $3.17, up 152% from $1.26 a year ago.

• Share repurchases totaled $60 million year-to-date, with an additional $300 million authorized.

• Continued investment in core U.S. and U.K. businesses, with increased capital deployment in both regions.

Financial highlights

• Revenues increased 25% year-over-year to $460.4 million in Q3 2025; net income rose 144% to $74.7 million.

• Portfolio purchases reached $346 million, collections hit a record $663 million, and adjusted EBITDA for Q3 was $184.8 million, up from $117.8 million in Q3 2024.

• Operating expenses increased 10% to $287.2 million, below collections growth.

• Estimated Remaining Collections (ERC) increased 10% year-over-year to $9.5 billion.

• Cash efficiency margin improved to 58.4%, up 3.6 percentage points year-over-year.

Outlook and guidance

• Full-year 2025 global collections guidance raised to $2.55 billion, reflecting 18% year-over-year growth.

• Global portfolio purchases for 2025 expected to exceed $1.35 billion, surpassing 2024 levels.

• Interest expense projected at $295 million for 2025; effective tax rate in the mid-20% range.

• Sufficient liquidity and access to capital markets to fund operations and portfolio acquisitions for at least the next twelve months.