Encore Capital Group (NASDAQ:ECPG) Issues Earnings Results

Encore Capital Group (NASDAQ:ECPG) released its quarterly earnings data on Wednesday. The asset manager reported $2.81 earnings per share for the quarter, beating analysts’ consensus estimates of $2.67 by $0.14, FiscalAI reports. The company had revenue of $491.87 million for the quarter, compared to the consensus estimate of $455.10 million. Encore Capital Group had a return on equity of 30.70% and a net margin of 16.00%.The company’s quarterly revenue was up 11.3% on a year-over-year basis. During the same period in the previous year, the business earned $2.49 earnings per share. Encore Capital Group updated its FY 2026 guidance to 13.000-14.000 EPS.

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

• Record U.S. portfolio purchases and global collections supported strong quarterly performance: global purchases reached $444 million, including a record $372 million in the U.S., while collections rose 13% to a record $737 million.
• Collections outperformance and operational improvements drove leverage, with cash efficiency margin increasing to 60.2%, ROIC rising to 14.7%, and leverage improving to 2.3 times from 2.6 times a year ago.
• Management raised 2026 global collections guidance to $2.8 billion-$2.85 billion and expects portfolio purchases near the high end of the $1.4 billion-$1.5 billion range; full-year EPS guidance is $13-$14 despite $1 per share of refinancing costs in Q2.
• The company completed a billion-dollar refinancing at lower coupons, expects approximately $50 million in annualized interest savings, and reported no material maturities until 2028, providing additional financial flexibility.
• Cabot’s European business remained stable, with collections flat year over year at $164 million, but management continues to be selective in the U.K. amid subdued consumer lending, low delinquencies, and robust competition.

Encore Capital Group Trading Up 8.3%

NASDAQ:ECPG traded up $7.67 during trading hours on Thursday, hitting $100.36. The stock had a trading volume of 200,614 shares, compared to its average volume of 300,831. Encore Capital Group has a one year low of $37.74 and a one year high of $101.19. The company has a market cap of $2.15 billion, a price-to-earnings ratio of 7.79 and a beta of 1.27. The company has a debt-to-equity ratio of 3.90, a quick ratio of 0.90 and a current ratio of 0.90. The business’s 50 day moving average is $87.53 and its 200-day moving average is $76.04.

Insider Buying and Selling at Encore Capital Group

In other news, insider John Yung sold 2,000 shares of the stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $82.08, for a total transaction of $164,160.00. Following the completion of the sale, the insider owned 64,570 shares of the company’s stock, valued at $5,299,905.60. This represents a 3.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 3.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC grew its stake in Encore Capital Group by 168.9% in 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 in the last quarter. Virtus Advisers LLC acquired a new position in Encore Capital Group in the third quarter valued at $143,000. Virtu Financial LLC bought a new stake in Encore Capital Group during the fourth quarter valued at $201,000. Brooklyn Investment Group bought a new position in shares of Encore Capital Group in the 4th quarter worth about $211,000. Finally, Mercer Global Advisors Inc. ADV bought a new position in shares of Encore Capital Group in the 3rd quarter worth about $214,000.

Wall Street Analyst Weigh In

Several research firms have issued reports on ECPG. Citizens Jmp increased their price objective on Encore Capital Group from $108.00 to $115.00 and gave the stock a “market outperform” rating in a research note on Wednesday, June 17th. Zacks Research downgraded Encore Capital Group from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Weiss Ratings raised Encore Capital Group from a “hold (c)” rating to a “buy (b-)” rating in a report on Monday. Citigroup restated a “market outperform” rating on shares of Encore Capital Group in a research report on Wednesday, June 17th. Finally, Wall Street Zen lowered shares of Encore Capital Group from a “strong-buy” rating to a “hold” rating in a research report on Saturday, May 9th. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Encore Capital Group has an average rating of “Moderate Buy” and a consensus price target of $88.00.

Key Encore Capital Group News

Here are the key news stories impacting Encore Capital Group this week:

• Positive Sentiment: Encore reported second-quarter EPS of $2.81, above the $2.67 analyst consensus cited by MarketBeat, while revenue reached $491.87 million, exceeding the $455.10 million estimate. Revenue increased 11.3% year over year, and EPS rose from $2.49 in the comparable quarter. Encore Capital Group earnings report
• Positive Sentiment: Management issued full-year 2026 EPS guidance of $13.00 to $14.00, with the midpoint above the $13.00 consensus estimate referenced in the company update. The guidance reinforces expectations for continued earnings strength. Encore Capital Group second-quarter financial results
• Positive Sentiment: The reported 16.0% net margin and 30.7% return on equity highlight strong profitability, supporting the positive investor response. The earnings call and company materials provide additional context on quarterly performance and the outlook. Encore Capital Group Q2 2026 earnings call transcript
• Neutral Sentiment: Although most cited estimates indicate an earnings beat, Zacks reported that the $2.81 EPS result was below its higher $3.07 consensus forecast. This conflicting benchmark may limit some of the upside reaction, despite the stronger revenue performance. Encore Capital Group earnings estimates

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.