$ECPG

ENCORE CAPITAL GROUP INC

CIK:0001084961|SEC Filings

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Portfolio revenue	$ 400,242	$ 361,174	$ 790,261	$ 706,392
Changes in recoveries	71,115	55,599	133,855	77,063
Total debt purchasing revenue	471,357	416,773	924,116	783,455
Servicing revenue	18,228	22,300	38,866	44,847
Other revenues	2,287	3,049	4,301	6,595
Total revenues	491,872	442,122	967,283	834,897
Operating expenses
Salaries and employee benefits	119,585	117,738	234,126	223,670
Cost of legal collections	96,599	79,649	185,820	147,662
General and administrative expenses	38,724	41,327	78,353	82,345
Other operating expenses	36,831	36,990	71,664	71,242
Collection agency commissions	6,119	8,374	12,456	15,247
Depreciation and amortization	7,112	7,311	13,970	14,655
Total operating expenses	304,970	291,389	596,389	554,821
Income from operations	186,902	150,733	370,894	280,076
Other expense
Interest expense	(73,907)	(73,943)	(146,957)	(144,473)
Loss on extinguishment of debt	(30,533)	0	(30,533)	0
Other income	385	1,226	1,175	2,873
Total other expense	(104,055)	(72,717)	(176,315)	(141,600)
Income before income taxes	82,847	78,016	194,579	138,476
Provision for income taxes	(18,848)	(19,295)	(44,337)	(32,959)
Net income	$ 63,999	$ 58,721	$ 150,242	$ 105,517
Earnings per share:
Basic (USD per share)	$ 2.97	$ 2.50	$ 6.94	$ 4.45
Diluted (USD per share)	$ 2.81	$ 2.49	$ 6.66	$ 4.41
Weighted average shares outstanding:
Basic (shares)	21,554	23,507	21,640	23,692
Diluted (shares)	22,791	23,578	22,555	23,926

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net income	$ 150,242	$ 105,517
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,970	14,655
Loss on extinguishment of debt	30,533	0
Other non-cash interest expense, net	5,189	7,211
Stock-based compensation expense	10,618	8,707
Changes in recoveries	(133,855)	(77,063)
Other, net	7,623	7,045
Changes in operating assets and liabilities
Other assets	8,530	14,897
Accounts payable, accrued liabilities and other liabilities	(39,904)	(26,162)
Net cash provided by operating activities	52,946	54,807
Investing activities:
Purchases of receivable portfolios, net of put-backs	(800,301)	(725,391)
Collections applied to receivable portfolios	665,017	553,400
Purchases of property and equipment	(13,249)	(13,320)
Other, net	17,883	15,659
Net cash used in investing activities	(130,650)	(169,652)
Financing activities:
Payment of loan and debt refinancing costs	(38,382)	(2,491)
Proceeds from credit facilities	791,079	549,605
Repayment of credit facilities	(723,790)	(418,463)
Proceeds from senior secured notes	1,128,676	0
Repayment of senior secured notes	(983,540)	0
Repurchase and retirement of common stock	(47,029)	(25,215)
Other, net	(20,182)	(16,206)
Net cash provided by financing activities	106,832	87,230
Net increase (decrease) in cash and cash equivalents	29,128	(27,615)
Effect of exchange rate changes on cash and cash equivalents	(2,980)	646
Cash and cash equivalents, beginning of period	156,784	199,865
Cash and cash equivalents, end of period	182,932	172,896
Supplemental disclosures of cash flow information:
Cash paid for interest	148,719	133,830
Cash paid for income taxes, net of refunds	33,786	29,278
Supplemental schedule of non-cash investing activities:
Receivable portfolios transferred to real estate owned	$ 1,868	$ 2,011

Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and cash equivalents	$ 182,932	$ 156,784
Receivable portfolios, net	4,609,705	4,371,532
Property and equipment, net	80,615	82,080
Other assets	163,269	193,113
Goodwill	528,742	536,291
Total assets	5,565,263	5,339,800
Liabilities:
Accounts payable and accrued liabilities	190,810	230,261
Borrowings	4,179,515	4,001,293
Other liabilities	116,221	131,496
Total liabilities	4,486,546	4,363,050
Commitments and contingencies (Note 11)
Equity:
Convertible preferred stock, $0.01 par value, 5,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.01 par value, 75,000 shares authorized, 21,209 and 21,688 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	212	217
Additional paid-in capital	0	0
Accumulated earnings	1,209,896	1,104,640
Accumulated other comprehensive loss	(131,391)	(128,107)
Total stockholders’ equity	1,078,717	976,750
Total liabilities and stockholders’ equity	5,565,263	5,339,800
Variable Interest Entity
Assets
Cash and cash equivalents	47,527	40,256
Receivable portfolios, net	1,221,069	1,151,221
Other assets	4,272	3,540
Liabilities:
Accounts payable and accrued liabilities	2,545	3,101
Borrowings	785,213	791,182
Other liabilities	$ 315	$ 2,774