Encore Capital Group (NASDAQ:ECPG) Posts Quarterly Earnings Results, Beats Estimates By $1.17 EPS

Encore Capital Group (NASDAQ:ECPG) issued its earnings results on Wednesday. The asset manager reported $3.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.20 by $1.17, Zacks reports. Encore Capital Group had a positive return on equity of 25.27% and a negative net margin of 2.89%.The company had revenue of $473.55 million during the quarter, compared to analyst estimates of $423.14 million. During the same quarter last year, the business posted ($9.42) EPS. The firm’s quarterly revenue was up 78.3% on a year-over-year basis.

Here are the key takeaways from Encore Capital Group’s conference call:

• Encore delivered record 2025 results with portfolio purchases of $1.4B, collections of $2.6B, ERC of $9.7B, net income of $257M and EPS $10.91, and repurchased ~9% of shares (~$90M).
• The U.S. business (MCM) was the growth engine—record $1.17B in U.S. purchases and $1.95B in collections (up 24%), plus $198M of collections above ERC forecasts driven by digital/operational improvements; management guided 2026 collections ~ $2.7B and EPS of $12.
• Balance-sheet and funding improved—leverage fell to 2.4x, Encore issued attractive financing ( $100M notes at 6.625%), settled convertibles and has no material maturities until 2028, supporting continued portfolio buying and capital returns flexibility.
• European (Cabot) markets remain challenged with subdued U.K. lending, low delinquencies and strong competition (2025 purchases $234M), and management left buyback size and potential legal cost increases discretionary, adding uncertainty to near-term capital allocation.

Encore Capital Group Trading Up 2.0%

Shares of Encore Capital Group stock opened at $59.17 on Thursday. The firm has a 50-day simple moving average of $56.16 and a two-hundred day simple moving average of $49.18. The company has a debt-to-equity ratio of 4.13, a quick ratio of 0.66 and a current ratio of 0.66. Encore Capital Group has a fifty-two week low of $26.45 and a fifty-two week high of $59.68. The company has a market cap of $1.32 billion, a P/E ratio of -32.33 and a beta of 1.41.

Insider Activity

In related news, insider Ryan B. Bell sold 2,500 shares of the business’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $55.00, for a total value of $137,500.00. Following the completion of the sale, the insider owned 55,410 shares of the company’s stock, valued at approximately $3,047,550. The trade was a 4.32% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Laura Olle sold 1,423 shares of the company’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $52.79, for a total transaction of $75,120.17. Following the transaction, the director owned 35,024 shares of the company’s stock, valued at $1,848,916.96. This represents a 3.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.54% of the stock is owned by insiders.

Hedge Funds Weigh In On Encore Capital Group

A number of institutional investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC increased its holdings in Encore Capital Group by 78.0% in the 4th quarter. AQR Capital Management LLC now owns 412,498 shares of the asset manager’s stock valued at $22,419,000 after purchasing an additional 180,733 shares during the last quarter. Jane Street Group LLC boosted its position in shares of Encore Capital Group by 488.1% during the fourth quarter. Jane Street Group LLC now owns 154,128 shares of the asset manager’s stock worth $8,377,000 after buying an additional 127,920 shares during the period. First Trust Advisors LP grew its stake in shares of Encore Capital Group by 379.7% in the third quarter. First Trust Advisors LP now owns 98,817 shares of the asset manager’s stock valued at $4,125,000 after buying an additional 78,217 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in shares of Encore Capital Group by 476.6% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 92,978 shares of the asset manager’s stock valued at $3,599,000 after buying an additional 76,852 shares during the period. Finally, Balyasny Asset Management L.P. raised its holdings in shares of Encore Capital Group by 525.6% in the 2nd quarter. Balyasny Asset Management L.P. now owns 47,837 shares of the asset manager’s stock valued at $1,852,000 after buying an additional 40,191 shares during the period.

Wall Street Analyst Weigh In

ECPG has been the subject of a number of recent research reports. Citigroup reissued an “outperform” rating on shares of Encore Capital Group in a research report on Tuesday, January 20th. Janney Montgomery Scott increased their price objective on shares of Encore Capital Group from $56.00 to $62.00 and gave the stock a “buy” rating in a research note on Thursday, November 6th. Citizens Jmp raised their target price on shares of Encore Capital Group from $59.00 to $75.00 and gave the stock a “market outperform” rating in a report on Tuesday, January 20th. Northland Securities set a $70.00 price target on shares of Encore Capital Group in a report on Thursday, January 22nd. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Encore Capital Group in a research report on Wednesday, January 21st. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Encore Capital Group has an average rating of “Moderate Buy” and an average price target of $66.00.

About Encore Capital Group

Encore Capital Group, Inc is a global specialty finance company that focuses on the purchase and management of nonperforming consumer receivables. Through its subsidiaries, the company acquires charged-off debt portfolios from credit card issuers, banks, and other financial institutions, and seeks to recover outstanding balances through a combination of customer outreach, payment arrangements, and, where appropriate, legal collection efforts. Encore’s business model emphasizes compliance with regulatory and industry standards to ensure ethical and transparent debt-recovery practices.

Headquartered in San Diego, California, Encore operates across North America and Europe.