Encore Capital Group (NASDAQ:ECPG) Announces Earnings Results

Encore Capital Group (NASDAQ:ECPG) posted its quarterly earnings data on Wednesday. The asset manager reported $3.86 earnings per share for the quarter, beating analysts’ consensus estimates of $3.02 by $0.84, FiscalAI reports. Encore Capital Group had a net margin of 14.52% and a return on equity of 28.19%. The business had revenue of $475.41 million for the quarter, compared to analysts’ expectations of $446.26 million. During the same quarter in the previous year, the business posted $1.93 earnings per share. The business’s revenue was up 21.0% compared to the same quarter last year. Encore Capital Group updated its FY 2026 guidance to 13.000-13.000 EPS.

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

• Record collections of $718M (up 19%) drove net income of $86M and EPS of $3.86 in Q1, and management raised 2026 guidance to $2.8B collections and $13 EPS (up ~19%).
• The U.S. MCM business led performance with Q1 purchases of $316M and record collections of $556M (+23%), with recent vintages (2024/2025) outperforming forecasts and early-stage digital initiatives boosting payer conversion.
• Encore expects to keep prioritizing portfolio buys (Q1 purchases $363M, 2026 guide $1.4–$1.5B), while also returning capital via buybacks (≈$20M in Q1) and showing improved ROIC (14.6%) and cash generation (up 21%).
• Cabot (Europe) delivered stable results—Q1 purchases $47M and collections $161M (+7%, aided by FX)—but the U.K. market remains subdued with low delinquencies and strong competition, so purchases are selective.
• Management is testing AI and automation but cautions voice/collection automation is not yet mature and is subject to regulatory limits, which could constrain the pace of labor-related efficiency gains.

Encore Capital Group Trading Down 0.2%

Shares of ECPG traded down $0.17 during trading hours on Wednesday, reaching $84.24. 255,072 shares of the company traded hands, compared to its average volume of 349,941. The firm has a market cap of $1.81 billion, a price-to-earnings ratio of 7.69 and a beta of 1.33. Encore Capital Group has a 12-month low of $32.66 and a 12-month high of $85.74. The company has a current ratio of 0.68, a quick ratio of 0.68 and a debt-to-equity ratio of 4.10. The stock’s fifty day moving average price is $73.51 and its 200 day moving average price is $59.86.

Analyst Ratings Changes

A number of research analysts have weighed in on ECPG shares. Truist Financial set a $100.00 price objective on shares of Encore Capital Group in a research report on Tuesday, April 21st. Zacks Research cut shares of Encore Capital Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. Northland Securities set a $70.00 price objective on shares of Encore Capital Group in a research report on Thursday, January 22nd. Citizens Jmp boosted their price objective on shares of Encore Capital Group from $75.00 to $90.00 and gave the company a “market outperform” rating in a research report on Thursday, February 26th. Finally, Citigroup reiterated an “outperform” rating on shares of Encore Capital Group in a research report on Tuesday, January 20th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $80.50.

Insider Activity

In other news, insider Ryan B. Bell sold 7,240 shares of the business’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $69.04, for a total transaction of $499,849.60. Following the completion of the sale, the insider directly owned 48,170 shares of the company’s stock, valued at approximately $3,325,656.80. The trade was a 13.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 2.54% of the company’s stock.

Institutional Trading of Encore Capital Group

Large investors have recently made changes to their positions in the stock. Tower Research Capital LLC TRC boosted its stake in shares of Encore Capital Group by 168.9% during the second quarter. Tower Research Capital LLC TRC now owns 2,716 shares of the asset manager’s stock valued at $105,000 after purchasing an additional 1,706 shares during the period. Virtus Advisers LLC purchased a new stake in shares of Encore Capital Group during the third quarter valued at $143,000. Virtu Financial LLC purchased a new stake in shares of Encore Capital Group during the fourth quarter valued at $201,000. Brooklyn Investment Group purchased a new stake in shares of Encore Capital Group during the fourth quarter valued at $211,000. Finally, Dynamic Technology Lab Private Ltd purchased a new stake in shares of Encore Capital Group during the fourth quarter valued at $228,000.

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.