Encore Capital Group (NASDAQ:ECPG) Releases Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Encore Capital Group (NASDAQ:ECPG) released its quarterly earnings results on Wednesday. The asset manager reported $2.81 EPS for the quarter, topping analysts’ consensus estimates of $2.67 by $0.14, FiscalAI reports. The business had revenue of $491.87 million for the quarter, compared to analyst estimates of $455.10 million. Encore Capital Group had a net margin of 15.86% and a return on equity of 30.52%. Encore Capital Group’s revenue for the quarter was up 11.3% compared to the same quarter last year. During the same period last year, the firm 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 Price Performance

Shares of ECPG traded up $3.23 during trading hours on Friday, reaching $101.11. The stock had a trading volume of 114,399 shares, compared to its average volume of 302,687. The company has a debt-to-equity ratio of 3.90, a quick ratio of 0.90 and a current ratio of 0.90. Encore Capital Group has a 12 month low of $38.68 and a 12 month high of $101.78. The stock has a market capitalization of $2.17 billion, a PE ratio of 7.66 and a beta of 1.27. The company’s 50-day moving average is $87.88 and its two-hundred day moving average is $76.33.

Key Stories Impacting Encore Capital Group

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

• Positive Sentiment: Strong Q2 operating results: Encore reported $491.9 million in revenue, up 11.3% year over year and above the approximately $455.1 million consensus forecast. Record global collections and solid U.S. execution supported the performance. Reported EPS of $2.81 increased from $2.49 a year earlier and exceeded the $2.67 analyst consensus cited by MarketBeat. Encore Capital Group Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Higher 2026 outlook: Management set full-year 2026 EPS guidance at $13.00-$14.00, compared with consensus near $13.00. Northland Securities subsequently raised its FY2026 EPS estimate to $13.50 from $13.00 and increased its Q3 2026 forecast to $3.20 from $3.04. ECPG Q2 Earnings Miss Despite Year-over-Year Revenue Growth and Record Collections
• Positive Sentiment: More bullish valuation support: Truist Financial raised its price target to $112 from $105 and maintained a Buy rating, indicating continued confidence in Encore’s earnings trajectory. Zacks’ value, growth and momentum analysis also examines whether the stock may be undervalued. Encore Capital Group Price Target Raised to $112 at Truist Financial
• Neutral Sentiment: Estimates were largely stable: Northland made modest adjustments to 2027 forecasts, raising Q2 and Q3 EPS estimates by $0.01 each while trimming its Q4 estimate by $0.01. These changes suggest limited near-term changes to the longer-term outlook.
• Negative Sentiment: Conflicting earnings benchmarks: Zacks reported that Q2 EPS of $2.81 missed its $3.07 consensus estimate, despite the year-over-year improvement and revenue beat. The earnings shortfall could limit enthusiasm if investors focus on profitability rather than collections and guidance. Encore Capital Group Lags Q2 Earnings Estimates

Insider Transactions at Encore Capital Group

In other news, insider John Yung sold 2,000 shares of the business’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $82.08, for a total transaction of $164,160.00. Following the sale, the insider directly owned 64,570 shares in the company, valued at approximately $5,299,905.60. The trade was a 3.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 3.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Encore Capital Group

Several hedge funds have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD boosted its holdings in Encore Capital Group by 2.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 24,514 shares of the asset manager’s stock worth $1,333,000 after buying an additional 611 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Encore Capital Group by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,929 shares of the asset manager’s stock valued at $477,000 after buying an additional 612 shares in the last quarter. Sei Investments Co. lifted its position in shares of Encore Capital Group by 3.5% during the 3rd quarter. Sei Investments Co. now owns 27,166 shares of the asset manager’s stock valued at $1,134,000 after acquiring an additional 921 shares during the last quarter. XTX Topco Ltd boosted its stake in shares of Encore Capital Group by 18.2% during the 4th quarter. XTX Topco Ltd now owns 6,915 shares of the asset manager’s stock worth $376,000 after acquiring an additional 1,063 shares in the last quarter. Finally, Tower Research Capital LLC TRC boosted its stake in shares of 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 worth $105,000 after acquiring an additional 1,706 shares in the last quarter.

Analyst Upgrades and Downgrades

ECPG has been the subject of a number of analyst reports. Truist Financial lifted their price target on shares of Encore Capital Group from $105.00 to $112.00 and gave the company a “buy” rating in a research report on Thursday. Citigroup restated a “market outperform” rating on shares of Encore Capital Group in a research note on Wednesday, June 17th. Wall Street Zen cut Encore Capital Group from a “strong-buy” rating to a “hold” rating in a report on Saturday, May 9th. Zacks Research lowered Encore Capital Group from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Finally, Weiss Ratings upgraded Encore Capital Group from a “hold (c)” rating to a “buy (b-)” rating in a research report on Monday. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $89.75.

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.