Encore Capital Group (ECPG) Q4 2025 earnings summary

Executive summary

• Achieved record global portfolio purchases of $1.41 billion in 2025, up 4% year-over-year, with U.S. purchases up 18% to $1.17 billion and 83% of purchases in the U.S.

• Collections reached a record $2.59 billion, up 20% year-over-year, with U.S. collections up 24% to $1.95 billion, driven by operational improvements and technology investments.

• Net income for 2025 was $257 million, with EPS of $10.91; ROIC improved to 13.7% from 7.5% in 2024.

• Repurchased approximately 9% of outstanding shares for $89.5 million.

Financial highlights

• Portfolio revenue increased 12% to $1.46 billion; debt purchasing revenue rose 37% to $1.66 billion.

• Operating expenses decreased 1% to $1.14 billion; adjusted OpEx up 11% versus 20% collections growth.

• Cash efficiency margin improved to 57.8%, up 3.2 percentage points year-over-year.

• Leverage improved to 2.4x from 2.6x; no material debt maturities until 2028.

• Estimated Remaining Collections (ERC) increased 14% to $9.68 billion.

Outlook and guidance

• 2026 global portfolio purchases expected between $1.4–$1.5 billion; collections to rise 5% to $2.7 billion.

• EPS guidance for 2026 is $12, a 10% increase; effective tax rate expected in the mid-twenties percent.

• Cash efficiency margin projected to exceed 58% in 2026.