Did Encore Capital Group beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Encore Capital Group next quarter?

What guidance did Encore Capital Group's management provide for the next earnings period?

What were the key takeaways from Encore Capital Group’s earnings call?

What is Encore Capital Group's latest dividend and current dividend yield?

What does Encore Capital Group do and what are its main business segments?

What is Encore Capital Group's gross profit margin?

What factors drove the changes in Encore Capital Group's revenue and profit?

- **Record Q3 Growth**: Portfolio purchases up 23% YoY, collections up 20% YoY, and EPS surging 150% YoY to $3.17.
- **Share Buybacks**: $60 million repurchased YTD, with $300 million authorization to return capital to shareholders.
- **U.S. Market Dominance**: 75% of capital deployed in the U.S., driven by record charge-offs and strong collections overperformance.
- **Financial Strength**: Cash efficiency margin of 58.4%, leverage at 2.5x, and $300 million high-yield notes issued at 6.625%.
- **Collections Momentum**: New technologies and digital capabilities boost early-stage portfolio performance, supporting 18% collections growth guidance.

**【Management Opening Remarks】**
- Introduced the call, emphasizing the U.S. market focus and the $300 million share buyback authorization. Highlighted the use of non-GAAP measures and the availability of reconciliations.

**【CEO Commentary】**
- **Q3 Performance**: Portfolio purchases of $346 million (23% YoY), collections of $663 million (20% YoY), and EPS of $3.17 (150% YoY). MCM drove 75% of capital deployment in the U.S., with collections up 25% YoY.
- **Strategic Initiatives**: New technologies and digital capabilities boosted collections, particularly in early portfolio stages. Repurchased $60 million in shares YTD, with $25 million in Q4.
- **Market Outlook**: U.S. credit card charge-offs at record levels, supporting robust portfolio supply. Europe remains selective due to low delinquencies.

**【CFO Financial Commentary】**
- **Financial Results**: Net income of $75 million (144% YoY), cash efficiency margin of 58.4%, and leverage of 2.5x (down from 2.7x YoY). Issued $300 million in high-yield notes at 6.625%.
- **Guidance**: Collections expected to grow 18% to $2.55 billion. Interest expense of $295 million and tax rate of 25%.

**【Q&A Highlights】**
- **Q4 Purchasing**: U.S. market remains strong, with MCM poised to exceed 2024 purchases. Collections overperformance driven by digital initiatives.
- **Buyback Strategy**: $60 million repurchased YTD, with flexibility to increase based on liquidity. No immediate M&A plans, but open to high-value opportunities.
- **European Dynamics**: Cabot collections up 8% YoY, with a focus on operational excellence amid slow supply growth.


Encore Capital Group, Inc. (ECPG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ECPG

ECPG fundamentals

You can ask Aime