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Encore Capital Group Announces Third Quarter 2025 Financial Results

1. ECPG's Q3 earnings surged, EPS reached $3.17, a 152% increase. 2. Global portfolio purchases rose 23% to $346 million in Q3 2025. 3. Collections achieved a record $663 million, marking a 20% increase. 4. The company authorized an additional $300 million for share repurchases. 5. Global collections guidance raised to approximately $2.55 billion for 2025.

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Why Very Bullish?

Earnings growth of 152% and rising collections likely boost investor confidence. Previous surges after strong earnings reports reflect positive market reception.

How important is it?

Strong earnings and growth metrics are critical indicators for investors. The share buyback program signals confidence, likely encouraging investment.

Why Short Term?

Positive earnings and guidance can lead to immediate stock price increases, as seen in similar past reports. Short-term market reactions tend to align closely with quarterly performance.

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November 05, 2025 16:05 ET  | Source: Encore Capital Group, Inc. Global portfolio purchases up 23% to $346 million, including $261 million in U.S.Global collections up 20% to record $663 million, including $502 million in U.S.  Earnings per share of $3.17Approximately $60 million share repurchases year-to-date; $300 million repurchase program reauthorization SAN DIEGO, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the third quarter ended September 30, 2025. “Encore delivered another quarter of strong performance in Q3 as our industry leadership and operational improvement become increasingly evident in our results,” said Ashish Masih, President and Chief Executive Officer. “Portfolio purchases of $346 million were up 23% compared to the third quarter last year and record collections of $663 million were up 20%. This collections performance helped earnings increase sharply, with third quarter earnings per share of $3.17 up 152% compared to $1.26 per share a year ago.” “Our MCM business in the U.S. continues to deliver very strong results. Capitalizing on the ongoing attractive market opportunity in the U.S. driven by ample portfolio supply, MCM portfolio purchases in the third quarter were $261 million, up 13% compared to the year ago quarter. MCM also delivered record collections of $502 million in the third quarter, up 25% compared to Q3 a year ago. This exceptional collections performance is the result of strong execution and continued significant portfolio purchasing as well as the deployment of new technologies, enhanced digital capabilities and continued operational innovation.” “Our Cabot business in Europe delivered a solid third quarter. Portfolio purchases of $85 million were higher than Cabot’s historical trend due to spot market opportunities while collections of $160 million were up 8% compared to the third quarter last year.” “As a result of our strong performance so far this year and our continued investment and operational execution, we are again raising our global collections guidance and now expect our full-year 2025 collections to be approximately $2.55 billion, reflecting year-over-year growth of 18%. Our guidance for portfolio purchasing remains unchanged as we still anticipate our global portfolio purchases this year will exceed the $1.35 billion of purchases we made in 2024 as MCM is poised to surpass their record level of purchases of a year ago. As always, we remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore their financial health,” said Masih. In the third quarter, the company repurchased $10 million of its shares of common stock. The company  also repurchased nearly $25 million of its shares in the fourth quarter to date, bringing its total repurchases to approximately $60 million year-to-date. The company’s board recently authorized a $300 million addition to its existing share repurchase program. Financial Highlights for the Third Quarter of 2025:  Three Months Ended September 30,(in thousands, except percentages and earnings per share)2025 2024 ChangePortfolio purchases(1)$346,069 $282,485 23%Average receivable portfolios(2)$4,227,398 $3,651,291 16%Estimated Remaining Collections (ERC)$9,489,772 $8,648,886 10%Collections$663,018 $550,268 20%Revenues$460,353 $367,071 25%Operating expenses$287,175 $260,981 10%Net income$74,660 $30,643 144%Earnings per share$3.17 $1.26 152%         ______________________ (1) Includes U.S. purchases of $261.1 million and $230.2 million, and Europe purchases of $84.9 million and $52.3 million in Q3 2025 and Q3 2024, respectively.(2) Represents the average of receivable portfolios for the quarter (sum of receivable portfolios at the beginning and end of the quarter divided by 2).   Conference Call and Webcast Encore will host a conference call and slide presentation today, November 5, 2025, at 2:00 p.m. Pacific / 5:00 p.m. Eastern time, to present and discuss third quarter results. Members of the public are invited to access the live webcast via the Internet by logging in on the Investor Relations page of Encore's website at encorecapital.com. To access the live conference call by telephone, please pre-register using this link. Registrants will receive confirmation with dial-in details. For those who cannot listen to the live broadcast, a replay of the webcast will be available on the Company's website shortly after the call concludes. Non-GAAP Financial Measures This news release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company has included information concerning adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure is a useful indicator of the Company’s ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. Adjusted EBITDA has not been prepared in accordance with GAAP and should not be considered as an alternative to, or more meaningful than, net income and net income per share as indicators of the Company’s operating performance. Further, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. A reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure is below. About Encore Capital Group, Inc. Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services for consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers. Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com.   Forward Looking Statements The statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results (including purchases and collections), performance, supply and pricing, liquidity, business plans or prospects. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent report on Form 10-K, as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements. Contact: Bruce ThomasEncore Capital Group, Inc.Vice President, Global Investor Relationsbruce.thomas@encorecapital.com SOURCE: Encore Capital Group, Inc. FINANCIAL TABLES FOLLOW ENCORE CAPITAL GROUP, INC.Condensed Consolidated Statements of Financial Condition(In Thousands, Except Par Value Amounts)(Unaudited)  September 30, 2025 December 31, 2024Assets   Cash and cash equivalents$172,488  $199,865 Receivable portfolios, net 4,270,016   3,776,369 Property and equipment, net 82,041   80,597 Other assets 197,772   225,090 Goodwill 535,626   507,808 Total assets$5,257,943  $4,789,729 Liabilities and Equity   Liabilities:   Accounts payable and accrued liabilities$259,884  $233,545 Borrowings 3,933,858   3,672,762 Other liabilities 111,287   116,091 Total liabilities 4,305,029   4,022,398 Commitments and Contingencies   Equity:   Convertible preferred stock, $0.01 par value, 5,000 shares authorized, no shares issued and outstanding —   — Common stock, $0.01 par value, 75,000 shares authorized, 22,854 and 23,691 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 229   237 Additional paid-in capital —   19,297 Accumulated earnings 1,083,975   909,927 Accumulated other comprehensive loss (131,290)  (162,130)Total stockholders’ equity 952,914   767,331 Total liabilities and stockholders’ equity$5,257,943  $4,789,729          The following table presents certain assets and liabilities of consolidated variable interest entities (“VIEs”) included in the condensed consolidated statements of financial condition above. Most assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs. The liabilities exclude amounts where creditors or beneficial interest holders have recourse to the general credit of the Company.  September 30, 2025 December 31, 2024Assets   Cash and cash equivalents$35,300 $23,875Receivable portfolios, net 1,009,105  895,704Other assets 3,972  3,699Liabilities   Accounts payable and accrued liabilities 3,034  2,946Borrowings 692,416  599,830Other liabilities 2,986  887       ENCORE CAPITAL GROUP, INC.Condensed Consolidated Statements of Income(In Thousands, Except Per Share Amounts)(Unaudited)  Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2025 2024 2025 2024Revenues       Portfolio revenue$370,126  $328,119  $1,076,518  $965,901 Changes in recoveries 63,636   12,675   140,699   6,020 Total debt purchasing revenue 433,762   340,794   1,217,217   971,921 Servicing revenue 22,175   22,772   67,022   64,258 Other revenues 4,416   3,505   11,011   14,563 Total revenues 460,353   367,071   1,295,250   1,050,742 Operating expenses       Salaries and employee benefits 117,118   107,502   340,788   318,294 Cost of legal collections 80,010   67,339   227,672   190,309 General and administrative expenses 39,220   38,808   121,565   111,828 Other operating expenses 37,056   31,804   108,298   93,016 Collection agency commissions 6,601   7,370   21,848   22,308 Depreciation and amortization 7,170   8,158   21,825   23,467 Total operating expenses 287,175   260,981   841,996   759,222 Income from operations 173,178   106,090   453,254   291,520 Other expense       Interest expense (74,242)  (66,906)  (218,715)  (184,047)Other income 929   1,578   3,802   6,291 Total other expense (73,313)  (65,328)  (214,913)  (177,756)Income before income taxes 99,865   40,762   238,341   113,764 Provision for income taxes (25,205)  (10,119)  (58,164)  (27,701)Net income$74,660  $30,643  $180,177  $86,063         Earnings per share:       Basic$3.22  $1.28  $7.66  $3.61 Diluted$3.17  $1.26  $7.57  $3.54         Weighted average shares outstanding:       Basic 23,222   23,912   23,534   23,859 Diluted 23,520   24,407   23,789   24,324                  ENCORE CAPITAL GROUP, INC.Condensed Consolidated Statements of Cash Flows(Unaudited, In Thousands)  Nine Months Ended September 30, 2025 2024Operating activities:   Net income$180,177  $86,063 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation and amortization 21,825   23,467 Other non-cash interest expense, net 11,151   12,379 Stock-based compensation expense 13,048   11,731 Changes in recoveries (140,699)  (6,020)Other, net 7,231   9,195 Changes in operating assets and liabilities   Other assets 17,316   (35,277)Accounts payable, accrued liabilities and other liabilities 26,339   31,086 Net cash provided by operating activities 136,388   132,624 Investing activities:   Purchases of receivable portfolios, net of put-backs (1,066,223)  (844,868)Collections applied to receivable portfolios 846,292   641,982 Purchases of property and equipment (19,338)  (20,451)Other, net 23,720   47,632 Net cash used in investing activities (215,549)  (175,705)Financing activities:   Payment of loan and debt refinancing costs (3,892)  (18,164)Proceeds from credit facilities 812,751   458,844 Repayment of credit facilities (699,452)  (1,292,578)Proceeds from senior secured notes —   1,000,000 Repayment of senior secured notes —   (29,310)Repurchase and retirement of common stock (35,329)  — Other, net (23,522)  11,695 Net cash provided by financing activities 50,556   130,487 Net (decrease) increase in cash and cash equivalents (28,605)  87,406 Effect of exchange rate changes on cash and cash equivalents 1,228   1,583 Cash and cash equivalents, beginning of period 199,865   158,364 Cash and cash equivalents, end of period$172,488  $247,353     Supplemental disclosures of cash flow information:   Cash paid for interest$172,756  $138,951 Cash paid for income taxes, net of refunds 40,174   61,255 Supplemental schedule of non-cash investing activities:   Receivable portfolios transferred to real estate owned$2,960  $4,617          ENCORE CAPITAL GROUP, INC.Supplemental Financial InformationReconciliation of Non-GAAP Metrics Adjusted EBITDA  Three Months EndedSeptember 30, Nine Months EndedSeptember 30,(in thousands, unaudited)2025 2024 2025 2024GAAP net income, as reported$            74,660  $            30,643  $          180,177  $           86,063 Adjustments:       Interest expense               74,242                 66,906               218,715               184,047 Interest income               (1,027)                (1,909)                (3,935)                (5,037)Provision for income taxes               25,205                 10,119                 58,164                 27,701 Depreciation and amortization                 7,170                   8,158                 21,825                 23,467 Stock-based compensation expense                 4,341                   3,737                 13,048                 11,731 Net loss (gain) on derivative instruments(1)                       —                           7                         —                    (267)Acquisition, integration and restructuring related expenses(2)                     165                       162                   1,455                   4,364 Adjusted EBITDA$          184,756  $          117,823  $          489,449  $         332,069 Collections applied to principal balance(3)$          236,293  $          223,292  $          725,270  $         666,766  ________________________ (1)Amount represents gain or loss recognized on derivative instruments that are not designated as hedging instruments or gain or loss recognized on derivative instruments upon dedesignation of hedge relationships. We adjust for this amount because we believe the gain or loss on derivative contracts is not indicative of ongoing operations.(2)Amount represents acquisition, integration and restructuring related expenses. We adjust for this amount because we believe these expenses are not indicative of ongoing operations; therefore, adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results.(3)Amount represents (a) gross collections from receivable portfolios less (b) debt purchasing revenue, plus (c) proceeds applied to basis from sales of real estate owned (“REO”) assets and, when applicable, other receivable portfolios. A reconciliation of “collections applied to receivable portfolios, net” to “collections applied to principal balance” is available in the Form 10-Q for the period ending September 30, 2025.

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