Encore Capital Group (NASDAQ:ECPG) Announces Earnings Results

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

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 Stock Performance

Encore Capital Group stock traded up $1.15 during mid-day trading on Wednesday, hitting $59.17. The company had a trading volume of 292,163 shares, compared to its average volume of 165,588. The company has a market capitalization 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. The company’s fifty day moving average is $56.06 and its 200-day moving average is $49.11. The company has a current ratio of 0.66, a quick ratio of 0.66 and a debt-to-equity ratio of 4.13.

Insider Activity at Encore Capital Group

In other news, insider Ryan B. Bell sold 2,500 shares of the stock in a transaction dated Wednesday, December 10th. The shares were 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 represents a 4.32% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Laura Olle sold 1,423 shares of the firm’s stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $52.79, for a total value of $75,120.17. Following the sale, the director owned 35,024 shares in the company, valued at $1,848,916.96. This trade represents a 3.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.63% of the stock is owned by insiders.

Hedge Funds Weigh In On Encore Capital Group

A number of hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC increased its position in shares of Encore Capital Group by 78.0% in the fourth quarter. AQR Capital Management LLC now owns 412,498 shares of the asset manager’s stock valued at $22,419,000 after buying an additional 180,733 shares in the last quarter. Barclays PLC grew its stake in Encore Capital Group by 11.8% in the 4th quarter. Barclays PLC now owns 371,916 shares of the asset manager’s stock valued at $20,214,000 after acquiring an additional 39,214 shares during the period. Bridgeway Capital Management LLC increased its holdings in Encore Capital Group by 2.4% in the 4th quarter. Bridgeway Capital Management LLC now owns 170,002 shares of the asset manager’s stock worth $9,240,000 after acquiring an additional 3,951 shares in the last quarter. Jane Street Group LLC raised its position in 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 acquiring an additional 127,920 shares during the period. Finally, Bank of Montreal Can lifted its holdings in Encore Capital Group by 10.0% during the fourth quarter. Bank of Montreal Can now owns 139,465 shares of the asset manager’s stock valued at $7,580,000 after purchasing an additional 12,708 shares in the last quarter.

Wall Street Analyst Weigh In

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

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.