Encore Capital Group (NASDAQ:ECPG) Releases Quarterly Earnings Results, Beats Estimates By $0.84 EPS

Encore Capital Group (NASDAQ:ECPG) released its quarterly earnings results on Wednesday. The asset manager reported $3.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.02 by $0.84, FiscalAI reports. The firm had revenue of $475.41 million during the quarter, compared to the consensus estimate of $446.26 million. Encore Capital Group had a net margin of 16.00% and a return on equity of 31.46%. The company’s revenue for the quarter was up 21.0% on a year-over-year basis. During the same quarter last year, the firm earned $1.93 earnings per share. 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 Stock Up 0.2%

Shares of NASDAQ ECPG traded up $0.20 during mid-day trading on Friday, reaching $82.42. 244,739 shares of the company’s stock traded hands, compared to its average volume of 274,016. The stock has a market cap of $1.77 billion, a P/E ratio of 6.38 and a beta of 1.33. The business has a 50-day simple moving average of $73.99 and a 200 day simple moving average of $60.15. Encore Capital Group has a 1-year low of $35.67 and a 1-year high of $92.64. The company has a debt-to-equity ratio of 4.10, a current ratio of 0.68 and a quick ratio of 0.68.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on ECPG shares. Truist Financial lifted their target price on shares of Encore Capital Group from $100.00 to $105.00 and gave the stock a “buy” rating in a research note on Thursday. Northland Securities set a $70.00 target price on shares of Encore Capital Group in a research note on Thursday, January 22nd. Citigroup reissued an “outperform” rating on shares of Encore Capital Group in a research note on Thursday. Wall Street Zen raised shares of Encore Capital Group from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 18th. Finally, Weiss Ratings upgraded shares of Encore Capital Group from a “sell (d-)” rating to a “hold (c-)” rating in a report on Friday, February 27th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $86.25.

Insider Activity

In other news, insider Ryan B. Bell sold 7,240 shares of Encore Capital Group stock in a transaction dated 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 transaction, the insider directly owned 48,170 shares in the company, valued at $3,325,656.80. This trade represents a 13.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 2.54% of the stock is owned by corporate insiders.

Institutional Trading of Encore Capital Group

Hedge funds have recently added to or reduced their stakes in the stock. Tower Research Capital LLC TRC raised its position 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 worth $105,000 after acquiring an additional 1,706 shares during the period. Virtus Advisers LLC bought a new stake in shares of Encore Capital Group in the third quarter valued at approximately $143,000. Virtu Financial LLC purchased a new position in Encore Capital Group during the fourth quarter valued at approximately $201,000. Brooklyn Investment Group bought a new stake in Encore Capital Group during the 4th quarter worth approximately $211,000. Finally, Dynamic Technology Lab Private Ltd bought a new stake in Encore Capital Group during the 4th quarter worth approximately $228,000.

Encore Capital Group Company Profile

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.