Encore Capital Group (NASDAQ:ECPG) Releases Quarterly Earnings Results, Beats Estimates By $1.10 EPS

by · The Markets Daily

Encore Capital Group (NASDAQ:ECPG – Get Free Report) released its quarterly earnings results on Wednesday. The asset manager reported $3.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.27 by $1.10, Zacks reports. Encore Capital Group had a positive return on equity of 25.27% and a negative net margin of 2.89%.

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 Price Performance

Shares of ECPG traded up $1.15 during mid-day trading on Wednesday, reaching $59.17. The stock had a trading volume of 292,163 shares, compared to its average volume of 165,588. The business has a fifty day moving average of $56.06 and a 200 day moving average of $49.11. The company has a debt-to-equity ratio of 4.13, a quick ratio of 0.66 and a current ratio of 0.66. The firm has a market cap of $1.32 billion, a price-to-earnings ratio of -32.33 and a beta of 1.41. Encore Capital Group has a 12 month low of $26.45 and a 12 month high of $59.68.

Insiders Place Their Bets

In other Encore Capital Group news, insider Ryan B. Bell sold 2,500 shares of the firm’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $55.00, for a total transaction of $137,500.00. Following the sale, the insider directly owned 55,410 shares of the company’s stock, valued at $3,047,550. This trade represents a 4.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Laura Olle sold 1,423 shares of the company’s stock in a transaction dated Wednesday, December 3rd. The stock was sold at an average price of $52.79, for a total value of $75,120.17. Following the completion of the transaction, the director directly owned 35,024 shares of the company’s stock, valued at approximately $1,848,916.96. This trade represents a 3.90% decrease in their position. The disclosure for this sale is available in the SEC filing. 2.63% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC grew its holdings in Encore Capital Group by 168.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,716 shares of the asset manager’s stock valued at $105,000 after buying an additional 1,706 shares in the last quarter. Virtus Advisers LLC purchased a new position in shares of Encore Capital Group in the third quarter worth $143,000. Virtu Financial LLC bought a new position in shares of Encore Capital Group during the fourth quarter worth $201,000. Brooklyn Investment Group purchased a new position in Encore Capital Group during the fourth quarter valued at $211,000. Finally, Dynamic Technology Lab Private Ltd purchased a new stake in Encore Capital Group in the 4th quarter worth $228,000.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the company. Wall Street Zen downgraded Encore Capital Group from a “strong-buy” rating to a “buy” rating in a report on Sunday, November 16th. Citigroup reiterated an “outperform” rating on shares of Encore Capital Group in a research note on Tuesday, January 20th. Zacks Research lowered shares of Encore Capital Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Northland Securities set a $70.00 price target on shares of Encore Capital Group in a research report on Thursday, January 22nd. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Encore Capital Group in a research report on Wednesday, January 21st. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Encore Capital Group has a consensus rating of “Moderate Buy” and an average price target of $66.00.

Check Out Our Latest Analysis on Encore Capital Group

Encore Capital Group Company Profile

(Get Free Report)

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.

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